A similar belief, at the same time, in the neighboring country of France, formed the airy basis of a similar business humbug, even more gigantic, noxious, and destructive. This was John Law’s Mississippi scheme, of which I shall give an account in this chapter. It was, I think, the greatest business humbug of history.
Law was a Scotchman, shrewd and able, a really good financier for those days, but vicious, a gambler, unprincipled, and liable to wild schemes. He had possessed a good deal of property, had traveled and gambled all over Europe, was witty, entertaining, and capital company, and had become a favorite with the Duke of Orleans and other French nobles. When the Duke became Regent of France at the death of Louis XIV, in 1715, that country was horribly in debt, and its people in much misery, owing to the costly wars and flaying taxations of the late King. When, therefore, Law came to Paris with a promising scheme of finance in his hand, the Regent was particularly glad to see him, both as financier and as friend.
The Regent quickly fell in with Law’s plans; and in the spring of 1716, the first step—not, however, so intended at the time—toward the Mississippi Scheme was taken. This was, the establishment by royal authority of the banking firm of Law & Co., consisting of Law and his brother. This bank, by a judicious organization and issue of paper money, quickly began to help the distressed finances of the kingdom, and to invigorate trade and commerce. This success, which seems to have been an entirely sound and legitimate business success, made one sadly mistaken but very
