ernment
owed the bank, and not the individuals and corporations from whom
loans had been originally obtained. These individuals, instead of
government scrip, had shares in the Mississippi Company.

And all would have been well, had the company's shares been valuable,
or had they retained their credit, or even had but a small part of the
national debt been transferred. But the people did not know the real
issues of the bank, and so long as new shares could be created and
sold to pay the interest, the company's credit was good. For a while
the delusion lasted. Law was regarded as a great national benefactor.
His house was thronged with dukes and princes. He became
controller-general of the finances--virtually prime minister. His fame
extended far and wide. Honors were showered upon him from every
quarter. He was elected a member of the French Academy. His schemes
seemed to rain upon Paris a golden shower. He had freed the state from
embarrassments, and he had, apparently, made every body rich, and no
one poor. He was a deity, as beneficent as he was powerful. He became
himself the richest man in Europe. Every body was intoxicated. The
golden age had come. Paris was crowded with strangers from all parts
of the world. Five hundred thousand strangers expended their fortunes,
in hope of making greater ones. Twelve hundred new coaches were set up
in the city. Lodgings could scarcely be had for money. The highest
price was paid for provisions. Widow ladies, clergymen, and noblemen
deserted London to speculate in stocks at Paris. Nothing was seen but
new equipages, new houses, new apparel, new furniture. Nothing was
felt but universal exhilaration. Every man seemed to have made his
fortune. The stocks rose every day. The higher they rose, the more new
stock was created. At last, the shares of the company rose from one
hundred to twelve hundred per cent., and three hundred millions were
created, which were nominally worth, in 1719, three thousand six
hundred millions of livres--one hundred and eighty times the amount of
all the gold and silver in Europe at that time.

[Sidenote: Popular Delusion.]

In this public delusion, the directors were wise enough to convert
_their_ shares into silver and gold. A great part of the current coin
in the kingdom was locked up in the houses or banks of a few
stockjobbers and speculators.

But the scarcity of gold and silver was felt, people's eyes were
opened, and the bubble burst, but not