Scottish economist (1671–1729) known as a monetary reformer and as the originator of the 'Mississippi scheme' for the development of French territories in America. LS in French, signed “Law,” one page both sides, 8 x 12.5, March 6, 1720. Letter to Christian-Louis de Montmorency-Luxembourg, Prince of Tingry, written during the last months of Law's financial system. In part (translated): "The high price of goods, caused by the increase in the value of base-metal currency, even though they are not yet exchanged at their full value compared to the current price of gold and silver coins, will cease once His Royal Highness issues new orders on the matter. I even believe that the negative effects of this inflation can be remedied immediately, at least concerning the workers employed in the manufactories, by encouraging the factory owners to pay them slightly higher wages than before for their daily work." He expresses confidence that the prince's presence will "greatly contribute to calming the excessive anxiety that this temporary inflation may provoke among the common people." In very good to fine condition, with creasing and light toning to the top.
Law made his name with a concept of paper money backed by land, rather than by gold or silver, promulgated in his 1705 text Money and Trade Considered: With a Proposal for Supplying the Nation with Money. After pitching his idea around Europe, he was finally given the chance to enact it in 1716 in France. His efforts led to the creation of the Mississippi Company monopoly, which, along with its contemporary South Sea Company, became one of the mythical early bubbles. Early investors in the company became near-instant millionaires (indeed, the word 'millionaire' originated from Mississippi Company traders), and by January 1720 prices were rising by 23% per month. The bubble popped in May 1720, leaving riots in its wake. Fearing for his life, Law fled to Brussels and then Venice, spending the rest of his life in relative poverty.
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