Scottish economist (1671–1729) known as a monetary reformer and as the originator of the 'Mississippi scheme' for the development of French territories in America. LS in French, signed “Law,” three pages on two adjoining sheets, 8 x 11.75, February 20, 1720. Addressed from Paris, an untranslated letter from John Law announcing that King Louis XV has deemed it necessary “to extend the course of species of gold and silver on the basis ordered by the decree of the 9th of this month,” and forwarding a copy of this “decree of extension…[to] have it published and displayed.” In fine condition. Accompanied by an official printed copy of the council decision referenced in the letter.
Law made his name with a concept of paper money backed by land, rather than by gold or silver, promulgated in his 1705 text Money and Trade Considered: With a Proposal for Supplying the Nation with Money. After pitching his idea around Europe, he was finally given the chance to enact it in 1716 in France. His efforts led to the creation of the Mississippi Company monopoly, which, along with its contemporary South Sea Company, became one of the mythical early bubbles. Early investors in the company became near-instant millionaires (indeed, the word 'millionaire' originated from Mississippi Company traders), and by January 1720 prices were rising by 23% per month. The bubble popped in May 1720, leaving riots in its wake. Fearing for his life, Law fled to Brussels and then Venice, spending the rest of his life in relative poverty.
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