Law, JOHN

Law, JOHN, originator of the Mississippi Scheme, and famous for his credit operations during the minority of Louis XV., was born at Edinburgh, 21st April 1671. His father was a goldsmith and banker, and proprietor of the estate of Lauriston, near Edinburgh. Law early showed a most remarkable talent for arithmetic, algebra, and kindred sciences. At twenty he removed to London, where he found admission into good society, but was soon compelled to flee, in consequence of a duel in which he killed his adversary. He went to Amsterdam, and spent his time in studying the credit operations of the bank. About the year 1700 he returned to Edinburgh, a zealous advocate of a paper currency; but his proposals to the Scottish parliament on this subject met with an unfavourable reception. He now visited different parts of the Continent, where he won and lost vast sums in gambling and speculation, but sought in vain to win the favour of governments for his financial schemes. At last he settled in Paris, and, in company with his brother William, set up in 1716 a private bank. This was soon so successful and prosperous that the Duke of Orleans, the regent, adopted in 1718 Law's plan of a national bank, and issued prodigious quantities of banknotes, which enjoyed perfect credit, whilst the ordinary national bonds remained, as they had long been, at a price far below their nominal value. In 1719 Law originated his Mississippi Scheme (q.v.), and the following year was made a Councillor of State and Comptroller-general of Finances. When the bubbles burst he became an object of popular hatred, and found it best to quit France. After wandering here and there he finally settled in Venice, where he spent his last years poor and forgotten, yet to the very end occupied with plans for restoring himself to power and prosperity. He died 21st March 1729. See Wood's Life of Law (Edin. 1824), and Thiers, Law et son Système des Finances, of which there is an American translation (New York, 1859). An edition of his works was published at Paris, 1843.