LAW, JOHN, of Lauristoo, was born about 1681 at Edinburgh, in vhich city his father exercised the trade of a goldsmith. His mother ming heiress of an estate called Lauristou is the reason why, in eon.
ormity with the Scottish custom, Law is known by that name or title dio. In very early life, in consequence of the reputation of possessing ;rest talents, he was engaged to arrange the revenue accounts of icotland, an employment which may have mainly contributed to fix cis mind upon financial schemes. About this time he proposed the establishment of a bank which should issue paper-money to the mount of the value of all the lauds in the country, thus confounding redit or security with currency, and imagining that the latter could lever be in excess so long as the property which the paper issues Vera supposed to represent should be in existence. Law lost his either when he was little more than of age. He was handsome in ierson and of graceful carriage, fond of society and courted by it.
iinding that his patrimony would not suffice for the supply of his xtravagance, he had recourse to the gaming-table. During this areer he fought a duel, and having killed his antagonist, he fled the ountry and visited Italy. His course of life must still have been ery irregular, for it appears that he was banished successively from reuice and from Genoa, after which he wandered from one Italian ity to another practising the arts of a gambler.
Law at length went to Paris, where he soon succeeded in ingratiating imself with the regent duke of Orleans, and in inoculating him with is plans of finance. By the persuasion of Law the first public bank of irculation was established by the regent in 1716, and its management ras entrusted to the projector. This bank obtained the privilege for wenty years of issuing notes, which however were to be exchangeable n demand for coin of the established weight and fineness at the plea are of the holder. The public debt of France at that time amounted ) 1500 Millions of livres, or about 70 millions sterling, and was so epreciated in the public estimation as to be unsaleable, except at 60 r 70 per cent discount. Law's bank was projected with the view of lying off this debt, by giving the public creditor the option of sub :ribiing for bank shares and paying for the same in the public stock t par. With the view of inducing the public to purchase the bank cares, a patent, giving possessiou of the country of the Mississippi, nder the name of Louisiana, which had been granted in 1712, to the ieur Crozat, was purchased, and the Mississippi Company was formed, with a capital of 100 millions of Hares, and allied to the bank, having secured to it for twenty-five years the sole right of trailing to that quarter, and also of prosecuting the Canada baaventraile. Still further to assist the scheme, the receivers-general of taxes were directed to make all their payments in the paper of the bank. With all these advantages it was yet a long time before the favour of the public was SO far gained that the subscriptions amounted to 100 millions of livres.
In 1713 the Mississippi Company had the entire farming or monopoly of tobacco granted to it for nine years, and thereupon sent great numbers of planters, artificers, and Louisiana. In the following year the Frenoh Fast India Company and the Senegal Company were both incorporated with tho 3lieeiselppi Company, which then enjoyed the monopoly of the trade of France " from the Cape of Good Hope eastwards to all the other parts of Africa; to Persia, India, China, Japan, and the Isles, even to the Straits of Magellan and Le Make." The prospect of advantages to be derived from these various sources soon began to operate upon the public ; and such numbers crowded forward to make investments in tho stock of the Mississippi Company, that in August 1719, its price was driven up to 500 per cent. It may serve to show the feverish state of excite ment then prevalent to state, that on the rumour of Law being seized with illness, the stock fell from 500 to 445 per cent, and that his convalescence raised it again to 610 per cent. In the month just named the general farm of all the public' revenues was granted to the Company, all of whose privileges were by the same arriit prolonged to the year 1770, in consideration of which concessions the Company agreed to advance to the government, for paying off the public debt, 1200 millions of livres, about 50 millions sterling at 3 per cent. A fnrther enm of 50 millions of hares was paid by the Company for the exclusive privilege of coining during nine years. In a few weeks the stock rose in price to 1200 per ceut, when 150 millions of livres were added to the capital by fresh eubscriptions at 1000 per coot., and, to take every advantage of the existing mania which had seized all classes, the new capital was divided into very small shares. By this means the Company was enabled to lend to the government an additioual sum of 300 millions of livres at 3 per cent. In the midst of all this speculation, tho bank having issued notes to the amount of 1000 millions of livres, upwards of 40 millions sterling, there was snch en abundance of money afloat, that the prices of all commodities rose exorbitantly, and land was sold at fifty years' purchase. At this time Law was considered to be a man of so great consequence, that his levee was constantly crowded by persons of eminence from all parts of Europe, who flocked to Paris that they might partake of the golden shower. " I have seen him," wrote Voltaire, " come to court, followed humbly by Dukes, by Marshals, and by Bishops." Indeed suoh was his influence at court that the English ambassador Lord Stair having resented his arrogance, the English government found itself under the necessity of recalling Lord Stair, though his services bad been of the greatest importance and such as to secure the full approbation of his own court.