Auction 129, Lot 18

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

Subject: Portrait, Mississippi Bubble

Period: 1720 (circa)

Publication: Het Groote Tafereel der Dwaasheid

Color: Hand Color

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 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

Estimate: $140 - $180

Sold for: $170

Closed on 9/23/2009

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