John Law (economist)
See also: John Law, Law de Lauriston
John Law or Jean Law (April 21st 1671, Edinburgh - March 21st 1729, Venice) is a British economist with which one owes the introduction of the Banknote in France.
The name of the banker decides Lass in French, that is to say because of English expression Law' S bank , is because of its not very readable signature, even owing to the fact that the letter W did not form part of the French alphabet of the time.
Its economic idea is that the money is a means of exchange and does not constitute a wealth of oneself. The national wealth depends on the trade. He is the father of the Finance and the use of paper Monnaie in the place of the Métal and the Facture S.
Its life of before 1715
Wire of a goldsmith of Edinburgh, he inherits at 17 years fortune his father. He is player and has astonishing capacities of mental calculation.April 9th 1694, it kills its adversary, Edward Wilson, at the time of a duel to obtain the favors of Elizabeth Villiers, later Comtesse of Orkney. He is considered to be guilty and condemned to died by Pendaison. Owing to the fact that it is about a manslaughter, the sorrow is commuted to fine, but the brother of Wilson appeals and Law is condemned to a sorrow of Prison. He escapes this new sentence while fleeing with Amsterdam, where he starts to study the Banque. He traverses then Europe to propose his ideas, but they are rejected everywhere.
The system of Law (1715-1720)
See also: System of Law
In 1715, the year of died of Louis XIV, Law arrives in France to offer its services of economist to Philippe of Orleans. The French national debt being enormous, the regent decides has to follow the daring theories of Law. He enables him to create the general Banque, authorized to strike paper money against gold. In 1717, it creates the Compagnie of Occident, or Compagnie of the Mississippi, person in charge of large the French Louisiana. In 1718, the general Bank becomes royal Banque, guaranteed by the king. In 1719, the Company of Occident absorbs other French colonial companies, inter alia the French Compagnie of the Eastern Indies, and becomes the perpetual Compagnie of the Indies. In 1720, the royal Bank and the perpetual Company of the Indies amalgamate. Law is named General inspector of finances on January 5th. But, as of on March 24th, it is the Banqueroute system of Law. The shareholders present themselves in mass to recover their gold, that the company does not have any more. It follows an economic crisis in France and Europe.
The escape
Under the semi-official protection of the Regent, Law is constrained to flee with Venice. Its system ruined good number of shareholders, nouveau riche some others and notably cleansed the national debt by making it deal with by many savers. But it made lose confidence in the paper money, and the State. He dies of a pneumonia with Venice on March 21st 1729.
Works
- Considerations on the cash and the trade (1720)
Related articles
External bonds
- Biographical note on the ministerial action
- Its genealogy on the site geneanet samlap