John Law
John Law- A Famous Scottish Economist
John Law (1671 - 1729) After killing a man in a duel in 1694 Law wisely decided to live on the European mainland. He studied finance and banking, and the result was a book. Money and Trade in 1705, with plans for helping the financial recovery of his native Scotland. His scheme met with a frigid response in Britain but his notions bore fruit in France. On the death of King Louis XIV in 1715 , the Duke of Orleans, who was regent for the young Louis XV, allowed Law free rein. In 1716 he founded the Banque Generale, the first bank of any kind in France: two years later it became the Bank Royale. His initial success led him to found the Compagnie d'Occident in 1717 to trade with the French colonies in America. Law's company soon captured the trade of Africa, the East Indies, and China, and he also acquired a monopoly of coinage and the contract for direct taxes. By 1720 he was master of almost every aspect of French finances at home and abroad. Wild speculation in the companies, over-issue of paper money, and the activities of enemies at court brought the sudden collapse of 'the System' in 1720. The effects were much more damaging than the English South Sea Bubble which occurred the same year. Law managed to escape from France and died in poverty in Venice.
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