John Law

After the death of Louis XIV, the regent called a scottish economist, John Law, to restore the finances of the Kingdom.
He created a central bank and began to issue banknotes.
The economic recovery was spectacular.
But the new system was attacked by the ennemies of Law, and victim of the speculation. The Royal Bank became unable to assure the convertibility-gold of the bank-notes.
So, when the Duke of Bourbon and the Prince of Conti, aware of this, came personally (1720, july 17th) to ask gold for their bank-notes, riots broke out.
The system collapsed. Law fled.

But I've read that, at the begining, John Law thought create a land bank. Even if the convertibility-gold of the bank-notes wasn't assured, their valour would have been assured by agricultural land rents.
I don't know truly why this land system wasn't enacted.
But I guess that if Louisiana had been explored and colonized earlier than in OTL, there could be enough lands for the system.
I imagine that La Salle reaching the Mississipi instead of going to Texas in 1684/1685 could be a POD.

What would be the consequences?
 
I thought of this too but I could not make it work. The Mississipi scheme was nothing more than puff on top of stock company set up to reduce the French National debt. If Law had really tried to set up a land based company he would have neither royal support nor any investers. What people wanted was a chance to get rich quick not a long term, high risk, low payout investment. If I remember right he did try to set up a land based scheme for backing the shares when things started to go bad but noboddy took any notice.

Only the government did OK they got rid of some of thier debts and taxed the lucky investers who got out before the crash on the grounds they had too much money for a non noble:D
 
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