About the commencement of the Regency all Paris went mad over gaming; many of the houses of the great nobles were virtually tripots, special lights outside announcing this to passers-by. Horace Walpole declared that at least a hundred and fifty people of the highest quality lived on the play which took place in their houses, which any one wishing to gamble could enter at all hours. At the mansion of the Duc de Gevres persons desirous of taking the bank paid about twelve guineas a night. Such proceedings were deemed to be no disgrace to the nobles.
Soon the gambling fever assumed a far more dangerous form than cards or dice, owing to the wild speculation brought into fashion by Law. This man, who was born in 1688, was the son of a lawyer at Edinburgh. Coming up to London he fell in love with the sister of a peer, who, disapproving of such a marriage with an adventurer, challenged Law, and fell in the duel. Law immediately escaped into Holland, and was tried, convicted, and outlawed in England. Perhaps it was in Holland he acquired that turn of mind which revels in immense calculations; anyhow he became an adept in the mysteries of exchanges and re-exchanges. From thence he proceeded to Venice and other cities, studying the nature of their banks. In 1709 he was at Paris, avid as ever of speculation.
At the close of the reign of Louis XIV., the French finances were in great disorder; and Law, having obtained an audience of that monarch, had almost convinced the bankrupt king of the feasibility of his speculative projects. He had offered to pay the national debt by establishing a company, whose paper was to be received with all possible confidence, and who were to make immense profits by their commercial transactions. The minister, Desmarest, however, took alarm and, to get rid of Law, threatened him, by one of his emissaries, with the Bastille. Law quitted Paris, and became a wanderer through Italy. He then addressed himself to the King of Sardinia, who refused the adventurer's assistance, curtly declaring that he was not powerful enough to ruin himself!
At the death of Louis XIV., the Duke of Orleans was Regent. Law saw his chance and ventured again to Paris, where he found the Regent docile enough. The latter, indeed, was placed in a most trying situation: the finances were all confusion, and no one appeared competent to settle them. At first the Regent listened somewhat reluctantly to Law, doubtful as to what consequences must follow such colossal schemes as those in which the adventurer dealt. Matters, however, going from bad to worse, the numerical quack was called in to relieve, by his powerful remedy, the disorder which no one else would even attempt to cure.
Law commenced with most brilliant prospects. He established his bank, was chosen director of the East India Company, and soon gave his scheme that vital credit which produced real specie. In that distracted time, every one buried or otherwise concealed his valuables; but, when the spells of Law began to operate, every coffer was opened, while the proprietors of many estates seemed to prefer his paper to the possession of their lands. All Europe appeared delighted; Law acquired millions in a morning; whilst the Regent, thoroughly duped, felicitated himself on his possession of so great an alchemist.
Law was honoured with nobility, and created Comte de Tankerville; as for marquisates, he purchased them at his will. Edinburgh, his native city, humbly presented him with her freedom, in which appears these remarkable expressions:—"The Corporation of Edinburgh presents its freedom to John Law, Count of Tankerville, etc., etc., etc., a most accomplished gentleman; the first of all bankers in Europe; the fortunate inventor of sources of commerce in all parts of the remote world; and who has deserved so well of his nation." From a Scotchman (says Voltaire) he became, by naturalisation, a Frenchman; from a Protestant, a Catholic; from an adventurer, a Prince; and from a banker, a minister of state.
Law's novel system of finance was perhaps most aptly defined by a dissipated and spendthrift member of the French noblesse, the Marquis de Cavillac, who, much to the Scotchman's disgust, bluntly accused him of plagiarising from his own methods, which, as he added, consisted in drawing and giving bills which would certainly never be met.
Meanwhile a veritable rage for speculation prevailed. Fortunes were made in a month, and stock-jobbing was carried on even in the narrowest alleys of Paris. Singular anecdotes are recorded of this time. A coachman gave warning to his master, who begged at least that he would provide him with another as good as himself. "Very well," was the reply, "I have hired two this morning; take your choice, and I will have the other." A footman set up his chariot; but, going to it, got up behind, where from force of habit he remained till reminded by his own servant of the mistake. An old beggar, who had a remarkable hunch on his back, haunted the Rue Quincampoix, which was the crowded resort of all stock-jobbers; here he acquired a good fortune by lending out his hunch for five minutes at a time as a desk.
Law himself was adored; the proudest courtiers were humble reptiles before this mighty man; dukes and duchesses patiently waited in his ante-chamber; and Mrs. Law, a haughty beauty, when a duchess was announced, exclaimed, "Still more duchesses! There is no animal so tiresome as a duchess!"