remained solvent, and the question of this does not seem to have entered the people's minds.

Law at the same time publicly declared that a banker deserved death if he made issues without having sufficient security to answer at any time all demands.

Before long the effect showed itself. Law's banknotes were quoted above par-trade revived-the public mind became easy. Within twelve months the notes were at 15 per cent. premium, while the billets d'état dropped to 78 per cent. discount.

Law became more and more important as a great financier. He opened branches at Lyons, Rochelle, Tours, Amiens and Orleans.

The Regent was both surprised and delighted with the success of the scheme, so much so in fact that he began to think that paper currency alone was necessary and that gold and silver were quite unnecessary.

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At this period Law proposed the scheme with which his name is so closely linked in history, and the great "Mississippi Project," or "Bubble" as it finally became, was launched. There is no indication that he was other than perfectly honest in its creation, but in final, careful judgment he certainly was woefully wanting.

He proposed to the Regent to establish a company which should have the exclusive privilege of trading on the great Mississippi river and the province of Louisiana on its western bank. His company was not only to mine the metal in which this country was supposed to be very rich, but it would, it was claimed, gain enormously from a monopoly of trade, of farming, of levying and collecting taxes, and of coining money.

It was only necessary for Law to ask of the Regent. He seems to have had an influence which gave him what he wanted, and letters patent were issued in August, 1717. The capital was divided into 200,000 shares of 500 livres each, and payment for shares might be made in billets d'état on their face value, notwithstanding they could be bought at 78 per cent. discount.

If anything was necessary to create an era of speculation this did it. Law was at his highest point of popularity. His bank had certainly done much-artificially of course, but it had for the moment helped credit. The people believed in Law, in Law's Bank and any scheme which Law cared to propose.

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His bank was the recipient of great favours from the Regent. It was given the monopoly of the sale of tobacco. It was given the sole right of recoinage of gold and silver, and finally was constituted the Royal Bank of France. With this final mark of royal favour Law's Bank reached its highest prestige, but from then on, the Regent insisted and Law acquiesced in issuing unlimited amounts paper money without any reference to security. The Parliament of France opposed this action, but the Regent vetoed its action. Again and again this vote of opposition and veto was gone through until Parliament, which looked upon Law as the chief instigator of the paper money troubles, prohibited all foreigners under heavy penalties from interfering either in their own name or others in the management of the finances of the State. Some of the members of the Parliament went further and insisted that Law should be brought to trial and if found guilty be hung at the gates of the Palais de Justice. Law was thoroughly alarmed and hurried to the Regent, whose protection he demanded. The Regent used his utmost efforts, and after arresting various Parliamentary officials finally overawed that body into submission and silence. Law used his victory, which was, however, secured at much loss to his prestige, in pushing his famous Mississippi project, and these shares began to rise rapidly. It was too interesting a speculation for the gamblers of the nation to resist, and into the great gamble almost the entire public soon rushed.

At the beginning of 1719 an edict was issued granting the company the exclusive privilege of trading in the East Indies, China and the South Seas and in all the possessions of the French East India Company established

by Colbert. The company thereupon renamed itself "The Company of the Indies," and issued 50,000 more shares. Law made greater and greater promises, and public enthusiasm grew with every day. The shares were subscribed six times over. Law's house was surrounded by great throngs including dukes, marquises, counts and rich men and women all anxious to change their cash for shares. The Regent was so delighted with this outpouring of gold that he insisted that a further issue of 300,000 shares at 5,000 livres be made, with which funds he could pay off the national debt. So mad had the entire nation become that several times this 1,500,000,000 livres could have been obtained if it had been asked for.

The street where Law lived was narrow and inconvenient. It was continually crowded-stock jobbers were busy everyone bought and sold stock, and so great was the desire to get at Law and secure some of the coveted shares that he decided to take a greater house in the Place Vendôme, where the crowd of course followed him, and the great square was soon as packed with people as had been its narrow predecessor. So great was the noise that the neighbouring courts of justice could not carry on their duties, and Law secured from the Prince de Carignan his Hôtel de Soissons. Its spacious gardens, however, were retained by the Prince, and at once an edict was issued forbidding all trading in these shares except in the gardens of the hotel. The Prince made handsomely, therefore, by the transaction, for spaces were let in the garden, booths erected, and rents collected which all went into his pocket.

Law during these busy months was again becoming more and more the great financial power of France. He was courted by the rich. His nod was worth a small fortune. Many anecdotes are recorded of schemes to win Law's attention, some humorous, some pathetic, some sanguinary-all crazy.