to punish so great a number of culprits without causing a dangerous interruption to commerce, and a kind of general shock in the system of the state.”  The resources derived from the punishment of the tax-farmers (traitants), as well as from the revision of the state’s debts, thus remaining very much below expectation, the deficit went on continually increasing.  In order to re-establish the finances, the Duke of Noailles demanded fifteen years’ impracticable economy, as chimerical as the increment of the revenues on which he calculated; and the Duke of Orleans finally suffered himself to bo led away by the brilliant prospect which was flashed before his eyes by the Scotsman, Law, who had now for more than two years been settled in France.

[Illustration:  John Law——­62]

Law, born at Edinburgh, in 1611, son of a goldsmith, had for a long time been scouring Europe, seeking in a clever and systematic course of gambling a source of fortune for himself, and the first foundation of the great enterprises he was revolving in his singularly inventive and daring mind.  Passionately devoted to the financial theories he had conceived, Law had expounded them to all the princes of Europe in succession.  “He says that of all the persons to whom he has spoken about his system, he has found but two who apprehended it, to wit, the King of Sicily and my son,” wrote Madame, the Regent’s mother.  Victor Amadeo, however, had rejected Law’s proposals.  “I am not powerful enough to ruin myself,” he had said.  Law had not been more successful with Louis XIV.  The Regent had not the same repugnance for novelties of foreign origin; so soon as he was in power, he authorized the Scot to found a circulating and discount bank (banque de circulation et d’escompte), which at once had very great success, and did real service.  Encouraged by this first step, Law reiterated to the Regent that the credit of bankers and merchants decupled their capital; if the state became the universal banker, and centralized all the values in circulation, the public fortune would naturally be decupled.  A radically false system, fated to plunge the state, and consequently the whole nation, into the risks of speculation and trading, without the guarantee of that activity, zeal, and prompt resolution which able men of business can import into their private enterprises.  The system was not as yet applied; the discreet routine of the French financiers was scared at such risky chances, the pride of the great lords sitting in the council was shocked at the idea of seeing the state turning banker, perhaps even trader.  St. Simon maintained that what was well enough for a free state, could not take place under an absolute government.  Law went on, however; to his bank he had just added a great company.  The king ceded to him Louisiana, which was said to be rich in gold and silver mines, superior to those of Mexico and Peru.  People vaunted the fertility of the