fail, if it continued, to become still more advantageous. In the
course of a year Law's notes rose to fifteen per cent. premium, while
the billets d'etat, or notes issued by the government, as security for
the debts contracted by the extravagant Louis XIV, were at a discount
of no less than seventy-eight and a half per cent. The comparison was
too great in favour of Law not to attract the attention of the whole
kingdom, and his credit extended itself day by day. Branches of his
bank were almost simultaneously established at Lyons, Rochelle, Tours,
Amiens, and Orleans.

The Regent appears to have been utterly astonished at his success,
and gradually to have conceived the idea, that paper, which could so
aid a metallic currency, could entirely supersede it. Upon this
fundamental error he afterwards acted. In the mean time, Law commenced
the famous project which has handed his name down to posterity. He
proposed to the Regent, who could refuse him nothing, to establish a
company, that should have the exclusive privilege of trading to the
great river Mississippi and the province of Louisiana, on its western
bank. The country was supposed to abound in the precious metals, and
the company, supported by the profits of their exclusive commerce,
were to be the sole farmers of the taxes, and sole coiners of money.
Letters patent were issued, incorporating the company, in August 1717.
The capital was divided into two hundred thousand shares of five
hundred livres each, the whole of which might be paid in billets
d'etat, at their nominal value, although worth no more than 160 livres
in the market.

It was now that the frenzy of speculating began to seize upon the
nation. Law's bank had effected so much good, that any promises for
the future which he thought proper to make were readily believed. The