The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1883-12-01

bank, by which fctitions capital, quite as
good as any real, would be produced at will
The Regent, who was necessarily in want
of money, eagerly jumped at the conclu
sions presented by Law, OF Las, as he was
called by the French Soon after, in May
l7l6, in spite of the opposition made by
the financiers of the kingdom, Law obtain
ed letters patent to establish on a very linn
tied scale the bank of which he was the
originator, and which was to bear his name
with capital of six millions of livres. Ii
was to be private undertaking, and in
tended by the government as an expert
ment.
1t met with so much success and became
so popular, that in April, 1717, the Coun
Gil Of State assumed the responsibility Of
ordering that its notes be received as specie
by the royal treasury, in all its branches
The influence of Law on the Regent was
daily on the increase, he became even q
favorite Of that prince, and was admitted
into all the privacies of the Patais Royal
Law now began to develop the stupendous
projects he had so long meditated The
success of his private bank gained him SC
much credit that the Regent was induced
to change its character, and make it a roya
institution Laws bank was abolished in
December, 1718, to give way to the Royal
Bank, of which Law was named the Direc-
tor-General From that fruitful parent
trunk sprang branches at Lyons, Tours
La Rochelle, Orleans and Amiens
The Mississippi Company, or the West
ern Company, as it was sometimes called
was chartered by the Parliament of Paris
and its Incorporation registered on the 9th
of September, 1717.
1t had the exclusive right of trading
with Louisiana during twenty-five years,
also the monopoly of the beaver trade with
Canada (the King of France reserving the
right of fixing the number of skins to be
purchased annually from the Canadians
and the price to be paid for them); omake
treaties with the Indians, and wage wal
against them; the ownership of all mines it
could work and discoyer,-this was con-
sidered one of its greatest privileges.
The power was given it to grant lands.
levy troops, raise Notifications, appoint the
governors and the other officers, &c, to be
approved by the King; to build ships OF
war and cast cannon None but French
vessels and crews were to be employed III
its trade. Frenchmen removing to Louis
lana and their children born there were to
preserve their national character, &c, &c.
The company obligated itself to trans
port to Louisiana during the existence Of
its charter six thousand white persons and
three thousand negroes, but none were to
be brought from another French colony
Its goods were to be exempt from the pay
ment of duty. These were about the prin-
cipal features of the charter.
The capital was one hundred millions OF
livres, to be furnished by stockholders, and
to be divided into shares of five hundred
livres each. Aliens were permitted to be-
come stockholders, and their shares were
exempt from the "droit d 'aubaine which
is the right the King had to inherit all the
property which an alien left at his death
and from confscation in case of war. The
shares were also exempt from seizure and
sale, unless on account of the death Of the
holder or open and declared bankruptcy.
As further inducement for the people
to subscribe to the stock, the shares were
made payable in deprecated paper cur
rency, called Hbillets d'etat, or state bonds
which were taken at par in payment fol
stock subscription. These bonds could be
bought on the market at from sixty to sew
enty per cent. discount The bait was Sc
tempting, and the confidence in Law Sc
great, that the public did not stop to reflect
but greedily snatched at it, and the sub
scriptions were soon more than filled up
By this operation, of taking the depreci
ated paper currency Of the state in payment
of subscriptions, the company became the
creditor Of the state for the sum of on'
hundred millions of livres, on which inter
est was to be paid at the rate of fourper cent
Law was the Director-General of the
Mississippi Company and of the Roya
Bank, and both institutions were merget
into one another, He soon after obtained
the use of the farm of tobacco; that is, the
exclusive privilege of selling this favoritC
weed, was made over to the company BY
the government. at an advance of rent ex
ceeding two millions of liyres, Soon aftel
this he procured for the company the gran
of the charter and effects of the Senega
Company. Immediately following this tn,
exclusive privilege of trading to the Eas
Indies, China and the South Seas, togethel
with all the effects and possessions Of tht
China and India Companies, now dissolved
were transferred to his company upon con
dition of liquidating all just claims agains
them. 1t was then that the Company O
the West, or Mississippi Company, dropped
Its original name to take up that of thu
Company of the Indies, with the privilege
of creating additional shares to the amoun
of twenty-five millions of livres, payable il
coin.
On the 2ath of July, 171a, the min
was made over to this already overgFowr
: company, this other concession being made
for a consideration of fifty millions O
livres, to be paid the King within ffteer
months. On the 9th of August the farms
of the revenues of the kingdom, which thu
Regent took out of the hands of the farm
ers-general and gave to the eampaay, II
consideration of its paying an advance o
rent of three millions and half of Gvres
and on the 91st of the same month, to cal
the climax of all these supernatural won
ders and follies, Law obtained for the sam'
company the general receipts or collection
of all the other revenues OF the kingdom o
whatsoever kind.
Through this process of annexation Johr
Law had succeeded in erecting the mos
stupendous financial fabric that had eve
been presented to the world. In one com
pany, and through it in one man, wa
vested nothing less than the whole privil
eges, effects and possessions Of the foTeigI
trade companies of France, the great farm
of the kingdom, the mint, the general re
ceipts of the Kings revenues, and the man
agement and property of royal bank witt
an immense capital Thus, one man ha,
condensed into one lump in his hand al
that one of the most powerful kingdoms o
Europe possessed at that time of revenues
&c. Does not this strictly historical sketcI
smack of romance?
On the showering of so many grants ol
the company, its shares gradually rose fror
500 livres, their par value, to 600 and ST
on up until they reached 10000 and 90
600 livers each. AT the same time tn
press was teeming with publications on tn