Prior to this period, he had visited the capital of France twice ; but his plans there met with as little encourage ment as they did in England. The natural jealousy of the Parisians, also, would no doubt be excited by the circum stance of his being a foreigner. Through the advice and under the patronage of his friend, the King of Sardinia, however, he visited Paris a third time, in 1714. The death of Louis XIV. happened soon after ; and he was patronised by the Duke of Orleans, regent during the mi nority of Louis XV.
By Law's advice and direction, certain improvements were made in the state of the finances, and measures adopt ed for establishing, upon a firmer basis, the sinking credit of the country. In connection with his brother then settled at London, he set up a private bank, under the firm of the " General Bank of Law & Co." So great was the public confidence placed in this institution, and so un common the success of which it was productive to the proprietors, that, about the close of the year 1718. the Duke of Orleans resolved to take it into his majesty's hands, as had at first been proposed. This measure was strenuously opposed by the proprietors ; but all opposition to the will of the crown being vain, the " Gene ral Bank of Law & Co." was, on the 4th December, 1718. incorporated by royal charter into what was after wards termed the " Royal Bank." It was perhaps this circumstance which led to the more speedy development that stupendous scheme, which seems to have long oc cupied the mind of Law, generally known by the name of the Illissisififti System.
Theo bject of this scheme was, to invest the whole of the national trade, with certain revenues arising from different sources, in the hands of one great company, who might thus he enabled to extend their commercial projects to an indefinite extent. By the suggestions of Law, such a com pany actually was instituted, under the name of the Com pany of the West. To this company was granted the whole province of Louisiana in North America, a country watered throughout by the Mississippi river ; ftorn which circum stance the scheme was generally known afterwards by the name of the Mississippi System. This vast project, which owed its birth entirely to Law, who was in consequence ap pointed director- general of the company, soon became the topic of general conversation The minds of the lower or ders were interested by the fair prospects which it held forth ; while the novelty of the scheme attracted the notice not only of France, hut of all the other European nations. Nothing was talked of in Paris but the Mississippi ; and nothing was sought after tsithsuch avidity as shares in the India Company. The reputation and the fame of Law ex tended far and wide. His house was crowded from morn ing till night with visitors front all quarters, most of whom were satisfied with a look or a smile from the illustrious foreigner. He was considered by all ranks as the saviour of the kingdom ; and the same honour wes conferred upon him, as upon the king and regent themselves. Soon after, he was declared comptroller-general of the finances, or, in other words, prime minister of state. Honours were heaped upon him from all quarters. He was elected an honorary member of the Academy of Sciences ; and the freedom of his native city was transmitted to hint in a gold box of the value of 3001. Thus was an obscure foreigner elevated at once to the second rank of authority and power iu the politest nation of Europe.
The system of which Law was the founder continued to gain credit and influence for some time. Its immediate effect was the exaltation of the lower orders in Paris. As there was daily a prodigious rise in the price of shares in the Company, those who had purchased a share one day, found themselves possessed of a fortune by selling it the next. The distinctions betwixt master and servant was
for a time abolished. High and low, rich and poor, were banded together. Paris was crowded with strangers front all quarters of Europe ; and there was a prodigious influx of wealth into the French empire. Thinking men soon perceived that the necessary consequences of such a state of things would be, the destruction of all government, the stagnation of trade, and the dissolution of morals. The or der of things in society is so wisely constituted, that chan ges such as that which took place upon the establishment of the Mississippi system could not fail to produce the most baneful effects. The grand object, too, which the original projector of the scheme had in view, must have been frus trated, at least for the present, by the confusion and disorder of which it was the immediate occasion. A scheme, such as that which we are now contemplating, requires, in a pre eminent degree, caution and deliberation. Where these qualities are wanting, a scheme may promise and it may be borne up for some time by popular favour. The springs of an organised body may be kept in motion by the mere energy of enthusiasm ; but it requires not the spirit of prophecy to foresee, that a scheme, which has no thing more than novelty and enthusiasm to support it, will speedily be ruined. To the want, then, of cautious and cool philosophic deliberation, we may anti bute the speedy downfal of the Mississippi system. The Company speculated to a most enormous extent. The original proprietors forgot the purpose for which it was organised, and were intent solely on the acquisition of wealth for themselves and their friends. Hence, in the midst of the general delirium, there was observed a con stant drain of specie from the bank. So great was the de sire manifested by the members of the Company to have their shares converted into gold and silver that there was scarcely left enough of these articles for the purposes of or dinary circulation. From this and other causes, apprehen sions of clanger to the national interest arose. Accordingly, by certain edicts published front the crown, it was easy to perceive, that the downful of the Mississippi system, and of Law's greatness, was speedily to happen. In promoting these events, personal pique and envy, no doubt, had a con siderable share of influence. The greatness of a foreigner gave umbrage to the Parisian ministry ; and their influence tended to alienate the minds of the nobles and of the king from Law. Accordingly, on the 2tst of May, 1720, a royal edict was published, appointing a gradual reduction in the value of the Company's shares, front 10,000 !lyres, at which they then were, to 5000. A reduction of the same kind took place upon the notes issued by the bank, which had been prior to this time incorporated with the Mississippi Company. These reductions were little diffzrent from composition or bankruptcy ; and hence this edict gave a death blow to the reputation of Law, and the interests of the system. All public credit was lost. All connected with the system, particularly the director and his co adjutors, were stigmatised and calumniated. Popular fa vour was in an instant turned into popular rage. The career of enthusiasm was stopt in an instant, while con sternation and fury pervaded all ranks of people. The Mississippi system was now completely at an end. All that remained to he done was the payment of its debts, and this, upon enquiry, was found to be no easy matter. A commis sion was appointed for the purpose ; bile the ministers of state, and all who possessed rank and influence in Paris, did every thing in their power to restore things to their usual channel.