John Law Biography and Timeline

Birth of John Law in Edinburgh

John Law was born in Edinburgh into a Scottish family connected with goldsmithing and banking.

London Duel with Edward Wilson

Law killed Edward Wilson in a duel in London and faced criminal prosecution for the fatal encounter.

Conviction for Murder in London

An English court convicted Law of murder following his duel with Edward Wilson and sentenced him to death.

Escape from Newgate Prison

Law escaped imprisonment at Newgate before his sentence could be carried out and fled Britain.

Money and Trade Treatise Published

Law published Money and Trade Considered with a Proposal for Supplying the Nation, arguing that managed credit could stimulate trade.

Scottish Land Bank Proposal Rejected

Scottish political authorities did not adopt Law's proposal to issue banknotes on the security of land.

Financial Discussions with French Regent

Law renewed contact with Philippe of Orleans in France and developed proposals for restructuring royal finances.

French Regency Receives Credit Proposals

After Louis XIV died, the new French regency considered Law's schemes for restoring confidence in money and state credit.

Banque Generale Authorised in Paris

The French regency authorised Law to establish Banque Generale, a private bank that issued convertible paper notes.

Private Bank Opens for Business

Law's Banque Generale began operations in Paris and sought deposits in exchange for notes redeemable in coin.

Paper Notes Gain Commercial Acceptance

Law promoted banknotes as a convenient means of payment while promising that holders could exchange them for specie.

Reform of Currency

An edict orders a recoinage registered in the cour des monnaies

Role range: 1720-1720

Company of the West Created

Law established the Company of the West to exploit French colonial trading rights associated with Louisiana.

Louisiana Monopoly Transferred to Company

The Company of the West received commercial privileges for Louisiana and linked colonial enterprise with public debt conversion.

State Bonds Accepted for Company Shares

Law allowed investors to subscribe using French government debt, shifting claims on the state into corporate equity.

Banque Generale Becomes Royal Bank

The French crown took over Law's bank as Banque Royale and assumed responsibility for its notes.

Royal Guarantee Supports Banknotes

The royal bank's notes carried state backing, increasing their apparent security but also exposing public finances to monetary expansion.

Mississippi Company Subscription Completed

Subscriptions to the Company of the West closed after investors committed funds and converted substantial government debt into shares.

East India Trading Rights Acquired

Law's company absorbed trading interests connected with Asia and became an increasingly powerful overseas commercial enterprise.

Compagnie des Indes Name Adopted

The enlarged enterprise adopted the name Compagnie des Indes after combining several French trading monopolies.

Tobacco Monopoly Added to Company

Law's system incorporated tobacco revenue privileges, broadening the company's commercial and fiscal reach.

Company Receives Coinage Privileges

The Compagnie des Indes obtained rights connected with the French mint as Law consolidated financial operations.

French Tax Collection Rights Acquired

The company contracted for important tax revenues and deepened its integration with the monarchy's fiscal administration.

Mississippi Shares Reach Speculative Peak

Demand for shares drove the company's market price far above its original subscription valuation in late 1719.

Rue Quincampoix Trading Frenzy

The Paris market around Rue Quincampoix became a centre of intensive speculation in Law's company shares.

Controller General

Appointed Controller General of Finance

Role range: 1720-1720

Reform of Currency

Bank-notes & company shares are devalued

Role range: 1720-1720

Dismissal

Dismissed as the Controller General of Finance

Role range: 1720-1720

Reform of Government

The edict of 21st May is repealed

Role range: 1720-1720

Controller General of Finances Appointed

Law briefly became Controller General of Finances, placing the Scottish financier at the head of French fiscal administration.

Large Coin Payments Restricted

Regulations curtailed substantial gold and silver payments as the government sought to bolster acceptance of paper money.

Banknotes Granted Broad Legal Status

Authorities strengthened the circulation of royal banknotes by requiring or encouraging their use in financial transactions.

Company Share Support Scheme Introduced

Law's financial organisation attempted to support share prices through exchanges and monetary arrangements involving banknotes.

May Devaluation Edict Announced

A royal edict ordered reductions in the stated value of banknotes and company shares, alarming investors.

Devaluation Edict Withdrawn

The government reversed the unpopular May devaluation measure, but the reversal did not restore confidence.

Law Removed from Finance Office

Law lost the office of Controller General of Finances during the deepening collapse of his financial system.

Banknote Redemptions Come Under Pressure

Holders sought to convert paper claims into specie as doubts spread about the solvency and stability of the system.

Share Prices Fall Sharply

Company shares lost much of their speculative value as the Mississippi financial boom gave way to a crash.

Mississippi Bubble Undermines Public Confidence

The collapse of share and note values damaged the credibility of Law's experiment in state supported credit.

Law Leaves France after Collapse

Law departed France following the breakdown of the monetary system he had helped create.