The Mississippi Company (French: Compagnie du Mississippi ; was founded 1684, named Company of the West from 1717, and the Indian Company from 1719) is a company that holds a business monopoly in French colonies in North America and West Indies. When land development and speculation in the region are frenzied and apart from economic reality, Mississippi balloons became one of the earliest examples of the economic bubble.
Video Mississippi Company
Histori
The Banque Royale
In May 1716, Banque GÃÆ'Â © nÃÆ'Â © rale PrivÃÆ'Â © e ("Commercial Private Bank"), which developed the use of banknotes, was established by John Law. It is a private bank, but three-quarters of that capital consists of government bills and records received by the government. In August 1717, he bought the Mississippi Company to help the French colony in Louisiana. In the same year Law contains a joint stock trading company called Compagnie d'Occident (The Mississippi Company, or, literally, "Western Company"). Law was named after the Managing Director of the new company, which was given a monopoly on the trade of the West Indies and North America by the French government.
The Bank became Banque Royale (Royal Bank) in 1718, which means the record was guaranteed by the king, Louis XV of France. The company absorbs Compagnie des Indes Orientales ("East India Company"), Compagnie de Chine ("Chinese Company"), and other rival trading companies and becomes Compagnie Perpetuelle des Indes on May 23, 1719 with a trade monopoly in all the oceans. At the same time, banks began issuing more records than can be represented in currencies; this led to the devaluation of the currency, which was eventually followed by the bank running when the value of the new paper currency halved.
Mississippi Bubble
The long reign of Louis XIV almost broke the French monarchy. Instead of reducing spending, the Louis XV District of France supports the monetary theory of Scottish financier, John Law. In 1716, Law was awarded a charter for Banque Royale in which the national debt was assigned to the bank in return for an extraordinary privilege. The key to the Banque Royale agreement is that the national debt will be paid out of the revenue earned from the opening of the Mississippi Valley. Banks are tied to other businesses of the Law - Western Companies and Indian Companies. Everything is known as the Mississippi Company. The Mississippi Company has a monopoly over trade and mineral wealth. The company is booming on paper. The law is titled Duc d'Arkansas. Bernard de la Harpe and his party left New Orleans in 1719 to explore the Red River. In 1721, he explored the Arkansas River. At the Yazoo settlement in Mississippi he joined Jean Benjamin who became a scientist for the expedition.
In 1718, there were only 700 Europeans in Louisiana. The Mississippi Company arranged the ship to move 800 more, which landed in Louisiana in 1718, doubling the European population. John Law encouraged the Germans, especially the Germans in the Alsace region who had just fallen under French rule, and the Swiss emigrated. They gave their name to the territory of CÃÆ'Â'te des Allemands and Lac des Allemands in Louisiana.
The inmates were released in Paris in September 1719 onwards, on condition that they marry prostitutes and go with them to Louisiana. The newly married couple was chained together and taken to the embarkation harbor. In May 1720, after complaints from the Mississippi Company and concessionaires about this French immigrant class, the French government banned such deportations. However, there was a third shipment of prisoners in 1721.
The law exaggerates the wealth of Louisiana with an effective marketing scheme, which led to wild speculation on the company's stock in 1719. This scheme promises success for the Mississippi Company by combining the spirit of investors and the wealth of Louisiana's prospects into a sustainable, joint. -stok, trading company. The popularity of the company's stock is such that they trigger the need for more paper notes, and when the stock generates profit, the investors are paid in paper money. In 1720, banks and corporations were merged and Law was appointed by Philippe II, Duke of Orleans, then Regent for Louis XV, to become a Financial Supervisor to withdraw capital. The publishing bank of pioneering letters grew until the French government was forced to admit that the amount of paper issued by Banque Royale exceeds the value of the number of metal coins it holds.
The "bubbles" broke out at the end of 1720, when opponents of financiers attempted to turn their records into specie en masse , forcing banks to stop payments on their notes. By the end of 1720 Philippe d'OrlÃÆ'Â ans had rejected the Law of his post. The law then fled France to Brussels, eventually moving to Venice, where he lived off his gambling. He is buried in the church of San MoisÃÆ'¨ in Venice.
Maps Mississippi Company
See also
- Richard Cantillon - the banker who made early earnings from the company
- List of trading companies
- Companies in Europe founded around the 17th century (in French)
References
External links
- "Learn from previous investment manias" (AME Info FN).
- Ã, "Mississippi Scheme". The New Encyclopedia of Collier . 1921.
Source of the article : Wikipedia
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