the affairs of the bank were under his control, the issues had never exceeded sixty millions. Whether Law opposed the inordinate increase is not known, but as it took place as soon as the bank was made a royal establishment, it is but fair to lay the blame of the change of system upon the Regent.

Law found that he lived under a despotic government, but he was not yet aware of the pernicious influence which such a government could exercise upon so delicate a framework as that of credit. He discovered it afterwards to his cost, but in the mean time suffered himself to be impelled by the Regent into courses which his own reason must have disapproved. With a weakness most culpable, he lent his aid in inundating the country with paper money, which, based upon no solid foundation, was sure to fall, sooner or later. The extraordinary present fortune dazzled his eyes, and prevented him from seeing the evil day that would burst over his head, when once, from any cause or other, the alarm was sounded. The Parliament were from the first jealous of his influence as a foreigner, and had, besides, their misgivings as to the safety of his projects. As his influence extended, their animosity increased. D’Aguesseau, the Chancellor, was unceremoniously dismissed by the Regent for his opposition to the vast increase of paper money, and the constant depreciation of the gold and silver coin of the realm. This only served to augment the enmity of the Parliament, and when D’Argenson, a man devoted to the interests of the Regent, was appointed to the vacant chancellorship, and made at the same time minister of finance, they became more violent than ever. The first measure of the new minister caused a further depreciation of the coin. In order to extinguish the billets d’etat, it was ordered that persons bringing to the mint four thousand livres in specie and one thousand livres in billets d’etat, should receive back coin to the amount of five thousand livres. D’Argenson plumed himself mightily upon thus creating five thousand new and smaller livres out of the four thousand old and larger ones, being too ignorant of the true principles of trade and credit to be aware of the immense injury he was inflicting upon both.

The Parliament saw at once the impolicy and danger of such a system, and made repeated remonstrances to the Regent. The latter refused to entertain their petitions, when the Parliament, by a bold, and very unusual stretch of authority, commanded that no money should be received in payment but that of the old standard. The Regent summoned a lit de justice, and annulled the decree. The Parliament resisted, and issued another. Again the Regent exercised his privilege, and annulled it, till the Parliament, stung to fiercer opposition, passed another decree, dated August 12th, 1718, by which they forbade the bank of Law to have any concern, either direct or indirect, in the administration of the revenue; and prohibited all foreigners, under heavy penalties, from interfering, either in their own names, or in that of others, in the management of the finances of the state. The Parliament considered Law to be the author of all the evil, and some of the counsellors, in the virulence of their enmity, proposed that he should be brought to trial, and, if found guilty, be hung at the gates of the Palais de Justice.

Law, in great alarm, fled to the Palais Royal, and threw himself on the protection of the Regent, praying that measures might be taken to reduce the Parliament to obedience. The Regent had nothing so much at heart, both on that account and because of the disputes that had arisen relative to the legitimation of the Duke of Maine and the Count of Thoulouse, the sons of the late King. The Parliament was ultimately overawed by the arrest of their president and two of the counsellors, who were sent to distant prisons.

Thus the first cloud upon Law’s prospects blew over: freed from apprehension of personal danger, he devoted his attention to his famous Mississippi project, the shares of which were rapidly rising, in spite of the Parliament. At the commencement of the year 1719 an edict was published, granting to the Mississippi Company the exclusive privilege of trading to the East Indies, China, and the South Seas, and to all the possessions of the French East India Company, established by Colbert. The Company, in consequence of this great increase of their business, assumed, as more appropriate, the title of Company of the Indies, and created fifty thousand new shares. The prospects now held out by Law were most magnificent. He promised a yearly dividend of two hundred livres upon each share of five hundred, which, as the shares were paid for in billets d’etat, at their nominal value, but worth only 100 livres, was at the rate of about 120 per cent. profit.