Auction 126, Lot 14

"Mre. Jean Law coner. du roy en tous ces conils. controleur gnal des finances en 1720", Schenk, Leonard

Subject: Portrait, Mississippi Bubble

Period: 1720 (published)

Publication: Het Groote tafereel der dwaasheid

Color: Black & White

Size:
6.8 x 10.5 inches
17.3 x 26.7 cm

This is a fine portrait of the infamous Scottish financier John Law. Exiled to Europe because of a duel, Law managed to become a financial adviser to the Duke of Orleans. Law proposed the establishment of a state-chartered bank with the power to issue unbacked paper currency, the Banque Générale, which was established in 1716. He also established the Mississippi Company, an enterprise designed to develop the then-French colony of Louisiana. Law's schemes quickly gained popularity and people throughout Europe rushed to invest. Share prices opened at 500 livres and rapidly rose to 18,000 livres. At this point the bubble burst; speculators cashed in, caused a run on the shares and the bank, and plunged France and Europe into a severe economic crisis. The incident, known as the Mississippi Bubble, is one of the most infamous financial meltdowns in history.

References:

Condition: A

Lightly toned with a sharp impression and light soil in blank margins.

Estimate: $140 - $180

Sold for: $130

Closed on 12/3/2008

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