loG A. D. 1720. 



The flock of the India company ftill fluduating, Mr. Law caufed 

 fundry pamphlets to be publifhcd, for ilkiftrating its vifl benefits to the 

 proprietors of it ; and the impolTibility of the king's ever doing it any 

 prejudice. Wliat followed fo very foon after puts one in mind of Ben 

 Jonfon's comedy of Bartholomew fair, where, for promoting the trade 

 of cut-purfes, the chief of their gang gets on a ftool, and fmgs a ballad 

 againft cut-purfes. 



For, on the 21ft of May tlie king's fatal arret comes out, whereby, 

 under pretence of his having reduced the value of his coin, it was de- 

 clared necefTary to reduce the nominal value of his bank-notes and the 

 India flock, viz. the former to one half, and the later from 9,000 livres 

 per action to 5,000 livres. It is eafy to conceive the calamity, which 

 this reduction produced throughout France ! The bank-notes iiiftantly 

 lofl their currency. Mr. Hutchefon, an author of credit, obferves, that 

 the French crown in bank-money, which, in September 1719, was worth 

 ^od flerling in exchange to London, was now worth about 31^ payable 

 in French bank-bills ! To prevent tumults, the guards were placed 

 everywhere. The parliament remonftrated to the king the fatal confe- 

 quences thereof; which occafioned the following arret, viz. ' the king 

 ' being informed, that his reduclion of bank-bills has had an effed: 

 ' quite contrary to his intentions, and has produced a general confu- 

 ' fion in commerce : and being defirous to favour the circulation of 

 ' the faid bank-bills, for the conveniency of fuch as give or take them 

 ' in paym.ent : and-, having heard the report of the Sieur Law, he 

 ' has ordained, that bank-bills be current on the fame footing as be- 

 ' fore the above arret, which he hereby revokes.' 



On the 29th of May, however, Mr. Law found it prudent to refign his 

 office of comptroller-general of the finances, by the interpofition of the 

 parliament of Paris with the duke of Orleans ; whereupon it was thought 

 needful to allow him two Switz officers as liis guard; and commiflarieS' 

 were appointed to infpecfb his accounts. Sundry other means were now 

 ufed to keep up the tottering tumbling public credit. And, as many of 

 the ftate creditors had lately been paid off with bank-notes, which were 

 now become troublefome to circulate, by reafon of their vafl quantity, 

 thefe were now taken in by a new fubfcription of 1,000 millions on the 

 town-houfe of Paris, at 24- per cent, or 25 millions of annuities. 



And, for leflening the number of adions in the India company, the 

 king gave up 100 millions which belonged to him, and the company 

 alfo funk 300 millions which they held in their corporate capacity. But,, 

 on the other hand, in order to make a dividend to the proprietors of 

 3 per cent on the nominal value of 12,000 livres per fhare, they made a 

 fort of call of 3,000 livres per fliare, payable in fix months. Sundry 

 other flight-of-hand tricks were now put in practice, to hoodwink the 

 people, and, if poffible, to retrieve their good opinion of India ftockj 



