acy winked. But, in addition to this, the coin
was debased to such an extent, that seventy-two millions of livres
were thus added to the treasury. Yet even these gains were not enough
to satisfy a profligate government. There still continued a constant
pressure. The national debt had increased even to fifteen hundred
millions of livres, or almost seventy millions sterling--equivalent to
what would now be equal to at least one thousand millions of dollars.

[Sidenote: John Law.]

To get rid of this debt, the regent listened to the schemes of the
celebrated John Law, a Scotch adventurer and financier, who had
established a bank, had grown rich, and was reputed to be a wonderful
political economist.

Law proposed, in substance, to increase the paper currency of the
country, and thus supersede the necessity for the use of the precious
metals.

The regent, moreover, having great faith in Law's abilities, and in
his wealth, converted his private bank into a royal one--made it, in
short, the Bank of France. This bank was then allied with the two
great commercial companies of the time--the East India and the
Mississippi. Great privileges were bestowed on each. The latter had
the exclusive monopoly of the trade with Louisiana, and all the
countries on the Mississippi River, and also of the fur trade in
Canada. Louisiana was then supposed to be rich in gold mines, and
great delusions arose from the popular notion.

[Sidenote: Mississippi Company.]

The capital of this gigantic corporation was fixed at one hundred
millions and Law, who was made director-general, aimed to make the
notes of the company preferable to specie, which, however could
lawfully be demanded for the notes. So it was settled that the shares
of the company could only be purchased by the paper of the bank. As
extravagant hopes of gain were cherished respecting the company, its
shares were in great demand. And, as only Law's bank bills could
purchase the shares, the gold and silver of the realm flowed into
Law's bank. Law and the regent had, therefore, the fabrication of both
shares and bank bills to an indefinite amount.

The national creditor was also paid in the notes of the bank, and, as
unbounded confidence existed, both in the genius of Law and in the
profits of the Mississippi Company,--as the shares were constantly in
demand, and were rising in value,--the creditor was satisfied. In a
short time, one half of the national debt was transferred. Gov