CHAPTER C

About the commencement of the new year, 1720, the system of Law
approached its end. If he had been content with his bank his bank within
wise and proper limits--the money of the realm might have been doubled,
and an extreme facility afforded to commerce and to private enterprise,
because, the establishment always being prepared to meet its liabilities,
the notes it issued would have been as good as ready money, and sometimes
even preferable, on account of the facility of transport. It must be
admitted, however, as I declared to M. le Duc d'Orleans in his cabinet,
and as I openly said in the Council of the Regency when the bank passed
there, that good as this establishment might be in itself, it could only
be so in a republic, or in a monarchy, like that of England, where the
finances are absolutely governed by those who furnish them, and who
simply furnish as much or as little as they please; but in a trivial,
changing, and more than absolute state like France solidity necessarily
is wanting, consequently confidence (at least of a discreet and proper
kind): since a king, and under his name, a mistress, a minister,
favourites; still more, extreme necessities, such as the deceased King
experienced in the years 1707-8-9 and 10,--a hundred things, in fact,
could overthrow the bank, the allurements of which were, at once, too
great and too easy. But to add to the reality of this bank, the chimera
of the Mississippi, with its shares, its special jargon, its science (a
continual juggle for drawing money from one person to give it to
another), was to almost guarantee that these shares should at last end in
smoke (since we had neither mines, nor quarries of the philosopher's
stone), and that the few would be enriched at the expense of the many, as
in fact happened.

What hastened the fall of the bank, and of the system, was the