John law baptised 21 april 1671 – 21 march 1729 was a scottish economist who believed that money was only a means of exchange that did not constitute wealth in. Are you sure you want to remove john law, the father of paper money from your list? find helpful customer reviews and review ratings for john law: the father of paper money at amazon.com. Read honest and unbiased product reviews from our users./ get this from a library! john law, the father of paper money. Robert minton john law, the father of paper money by robert minton starting at $29.63.

John law, the father of paper money has 1 available editions to buy at alibris john law: paper money amp inflation. The story of john law and the mississippi company is as intriguing as any modern. Grants of land by a government to individuals or businesses in exchange for money or promises to develop the land. A single supplier of a business or service, usually created by governmental regulations that prevent competition. A sudden rise in the value of an asset, followed by an rapid collapse in the price. A stock market in new york city in which shares of stock in new, smaller businesses are traded.

In addition, the french controlled the colony of louisiana, a vast settlement in the interior of north america. The louisiana colony included the natchez district and the area along the mississippi gulf coast in present day mississippi. France was the first european country to settle this area of north america 1699 1763. The american land was much larger than france and the french knew little about it.

But many had heard the rumor that this land was rich in silver and gold, the french currency. The depressed french economic environment was fertile ground for some of the monetary and economic ideas of john law 1671 1729. When law came to france in 1714, he renewed his acquaintance with the nephew of king louis xiv, the duke of orleans. The regent served as ruler while the heir to the throne, five year old louis xv, was still a minor. The duke recalled law's financial prowess and sought his advice and assistance in straightening out france's financial mess left over from years of reckless spending under louis xiv.

Not only would law advance the use of paper money, the french word millionaire would come into use as a result of his most famous scheme the mississippi company. In 1716 law convinced the french government to let him open a bank, the bank generale, that could issue paper money, or bank notes. The paper notes would be supported by the bank's assets of gold and silver and would circulate as a medium of exchange. Law believed that paper notes would increase the money in circulation, which, in turn, would increase commerce. These conditions would help revitalize and rehabilitate the finances of the french government. In august 1717, he organized the compagnie d'occident company of the west to which the french government gave the control of trade between france and its louisiana and canadian colonies.

The colony stretched for 3,0 miles from the mouth of the mississippi river to parts of canada. It included the present day states that hug the river: louisiana, mississippi, arkansas, missouri, illinois, iowa, wisconsin, and minnesota. The colony of louisiana's connection to the mississippi river gave rise to the company's more popular name, the mississippi company. Law's company had exclusive trading privileges in the territory for twenty five years it could appoint its own governor and officers in the colony and make land grants to potential developers. In turn, the company accepted the responsibility of transporting 6,0 settlers and 3,0 slaves to the colony before expiration of its charter. The scheme to finance the initial operations of the mississippi company was simple. Law would raise the money by selling shares in the company for cash and, more importantly, for state bonds.

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Law accepted a low interest rate on the bonds which helped french finances while promising the company a more secure cash flow. The lure of gold and silver brought out many eager investors in the mississippi company. It turns out that the mississippi company was a small part of a much grander empire he was about to create. In september 1718 the company acquired the monopoly in tobacco trading with africa. Law's bank generale was taken over by the french government in january 1719 and was renamed the bank royale. Law remained in charge, however, and the crown further guaranteed the bank's note issue. In may he obtained control of the companies trading with china and the east indies.