The "Mississippi Company"
(of 1684) became the "Company of the West"
(1717) and expanded as the "Company of the Indies"
"The French Period" (of New Orleans area), 2009, webpage:
The Banque Royale
In May 1716, the Banque Générale Privée ("General Private Bank"), which developed the use of paper money, was set up by John Law
. It was a private bank
, but three quarters of the capital consisted of government bill
and government accepted notes. In August 1717, he bought the Mississippi Company to help the French colony in Louisiana
. In the same year Law conceived a joint stock
trading company called the Compagnie d'Occident (or, The Mississippi Company). Law was named the Chief Director of this new company, which was granted a trade monopoly of the West Indies
and North America
by the French government.
The bank became the Banque Royale
) in 1718, meaning the notes were guaranteed by the king, Louis XV of France
. The Company absorbed the Compagnie des Indes Orientales
, Compagnie de Chine
, and other rival trading companies and became the Compagnie Perpetuelle des Indes
on 23 May 1719 with a monopoly of commerce on all the seas. Simultaneously, the bank began issuing more notes than it could... Read More