take the property. He who made
the bargain had the liberty of rescinding it if he would lose more by
adhering to it than by abandoning it. No advantage would accrue to Law
for the possible sacrifice of forty thousand francs, unless at the
designated time the shares had not been worth as much as sixty thousand
francs, or three hundred francs each; for having engaged to pay one
hundred thousand francs for what was worth only fifty thousand, for
instance, he would suffer less to lose his forty thousand francs than to
keep his engagement. But, evidently, if Law did wish by this method to
limit the possible loss, he hoped nevertheless not to make any loss at
all; and, on the contrary, he believed firmly that the two hundred
shares would be worth at least the hundred thousand francs, or five
hundred francs each, at the time fixed for the expiration of the
contract. This large premium attracted general attention, and people
were eager to purchase the Western shares. They rose sensibly during the
month of April, 1719, and went nearly to par. Law disclosed his
projects; the Regent kept his promise, and authorized him to unite the
great commercial companies of the East and West Indies.

The two companies of the East Indies and of China, chartered in 1664 and
1713, had conducted their affairs very badly: they had ceased to carry
on any commerce, and had underlet their privileges at a charge which was
very burdensome to the trade. The merchants who had bought it of them
did not dare to make use of their privileges, for fear that their
vessels would be seized by the creditors of the company. Navigation to
the East was entirely abandoned, and the necessity of reviving it had
become urgent. By a decree of May, 1719, Law caused to be accorded to
the West India Company the exclusive right of trading in all seas beyond
the Cape of Good Hope. From this time it had the sole right of traffic
with the islands of Madagascar, Bourbon, and France, the coast of Sofola
in Africa, the Red Sea, Persia, Mongolia, Siam, China, and Japan. The
commerce of Senegal, an acquisition of the company which still carried
it on, was added to the others, so that the company had the right of
French trade in America, Africa, and Asia. Its title, like its
functions, was enlarged; it was no longer called the "West India
Company," but the "_Indian_ Company." Its regulations remained the same
as before. It was authorized to issue another lot of shares, in order to
ra