Law and the Bank Royal

As scottish economist, john law tried to totally transform the french economy. He founded a bank in ance that became a lender to the french government and eventually merged with other banks to form the banc general. In 17 17, law established the company docede, or the mississippi company, to control french trading rights in the Mississippi river valley. Then in 17 19 and early 17 20, the companis share prices sky rocketed from about 500 livres per share to nine thousand. Investors started trying to exchange their shares for gold. And there was not enough gold in all france to cover the demand.