Read Online Millionaire: The Philanderer, Gambler, and Duelist Who Invented Modern Finance by Janet Gleeson - Free Book Online Page A
Authors: Janet Gleeson
Tags: Trade and Finance
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enough plunder to pay them. In place of gold and silver salaries the men were given paper notes that would be redeemed, they were promised, as soon as taxes were paid by the local community. Predictably the shortage of hard cash continued to beset the colony, and two years later, citing “the present poverty and calamities of this country, and through scarcity of money, the want of an adequate measure of commerce,” the paper was made legal tender. Other colonies, beset by similar cash shortages, soon followed suit.
Of all the unpromising and disparate seeds from which the paper revolution grew, Amsterdam stood out as a shining exemplar of prudence. Loans to private individuals were offered only against deposits of silver and gold and were carefully restricted; there was no mass circulation of notes without metal reserves. The result was that everyone had faith in Amsterdam’s bank. One visitor, Sir William Temple, remarked, “Foreigners lodge here what part of their money they could transport and know no way of securing at home.” Overseas investors—including English, Spanish, and other governments—gladly used it, and their vast deposits were then advanced as loans at modest rates of interest. In this way fleets were financed and trade thrived. In 1609 the bank had 730 accounts; by the end of the century it had 2,700, with over 16 million florins held on deposit. Trust in a bank had secured an entire nation’s fortune.
In 1697, two years after Law’s life of exile began, peace temporarily descended on Europe. The treaty of Ryswick brought to a close the bitter Nine Years War between France and Austria, Holland, England, Spain, Sweden, and Savoy. France became more accessible to foreign tourists, and around this time Law made what was probably his first visit to Paris.
The city must have captivated him. During the past forty years of Louis XIV’s reign, Paris had become “one of the most beautiful and magnificent [cities] in Europe,” according to Dr. Martin Lister, who visited the same year as Law, “in which a traveller might find novelties enough for six months for daily entertainment.” It was a city of stone-paved streets and ornately carved façades replete with hidden treasure. “As the houses are magnificent without, so the finishing within and furniture answer in riches and neatness; as hangings of rich tapestry, raised with gold and silver threads, crimson damask and velvet beds or of gold and silver tissue. Cabinets and bureaus of ivory inlaid with tortoiseshell, and gold and silver plates in a 100 different manners; branches and candlesticks of crystal,” the overawed doctor reported.
For the visiting dandy, city life offered much. By day he might choose to follow the familiar tourist route, visiting the Louvre, or the King’s Library, promenading in the Tuileries, the Luxembourg, or Physic Garden, or hiring a coach to drive to “a great rendezvous of people of fashion,” the Cour de La Reine, a triple-avenued park bordering the Seine. As night fell, there was the opera at the Palais Royal or the Comédie Française or, during the season, the bustling fair of St. Germain, where stalls remained open long into the night.
Once settled, Law gravitated to the court of the erstwhile King James II. Reliant upon the generosity of Louis XIV for his subsistence, James was currently living in impoverished exile in St. Germain-en-Laye, a château outside Paris. The Jacobite court seethed with covert plots to reinstate him, and it is impossible to be certain how genuine Law’s sympathies were with his cause. He may have visited the court merely because he hankered for the company of fellow Scots; or, as he later suggested, to rejoin some of the friends who had helped him to escape from London; or, more questionably, to infiltrate the court in the hope of gathering intelligence of Jacobite schemes. Performing such a service might gain him favor with King William and help secure a pardon—which
Of all the unpromising and disparate seeds from which the paper revolution grew, Amsterdam stood out as a shining exemplar of prudence. Loans to private individuals were offered only against deposits of silver and gold and were carefully restricted; there was no mass circulation of notes without metal reserves. The result was that everyone had faith in Amsterdam’s bank. One visitor, Sir William Temple, remarked, “Foreigners lodge here what part of their money they could transport and know no way of securing at home.” Overseas investors—including English, Spanish, and other governments—gladly used it, and their vast deposits were then advanced as loans at modest rates of interest. In this way fleets were financed and trade thrived. In 1609 the bank had 730 accounts; by the end of the century it had 2,700, with over 16 million florins held on deposit. Trust in a bank had secured an entire nation’s fortune.
In 1697, two years after Law’s life of exile began, peace temporarily descended on Europe. The treaty of Ryswick brought to a close the bitter Nine Years War between France and Austria, Holland, England, Spain, Sweden, and Savoy. France became more accessible to foreign tourists, and around this time Law made what was probably his first visit to Paris.
The city must have captivated him. During the past forty years of Louis XIV’s reign, Paris had become “one of the most beautiful and magnificent [cities] in Europe,” according to Dr. Martin Lister, who visited the same year as Law, “in which a traveller might find novelties enough for six months for daily entertainment.” It was a city of stone-paved streets and ornately carved façades replete with hidden treasure. “As the houses are magnificent without, so the finishing within and furniture answer in riches and neatness; as hangings of rich tapestry, raised with gold and silver threads, crimson damask and velvet beds or of gold and silver tissue. Cabinets and bureaus of ivory inlaid with tortoiseshell, and gold and silver plates in a 100 different manners; branches and candlesticks of crystal,” the overawed doctor reported.
For the visiting dandy, city life offered much. By day he might choose to follow the familiar tourist route, visiting the Louvre, or the King’s Library, promenading in the Tuileries, the Luxembourg, or Physic Garden, or hiring a coach to drive to “a great rendezvous of people of fashion,” the Cour de La Reine, a triple-avenued park bordering the Seine. As night fell, there was the opera at the Palais Royal or the Comédie Française or, during the season, the bustling fair of St. Germain, where stalls remained open long into the night.
Once settled, Law gravitated to the court of the erstwhile King James II. Reliant upon the generosity of Louis XIV for his subsistence, James was currently living in impoverished exile in St. Germain-en-Laye, a château outside Paris. The Jacobite court seethed with covert plots to reinstate him, and it is impossible to be certain how genuine Law’s sympathies were with his cause. He may have visited the court merely because he hankered for the company of fellow Scots; or, as he later suggested, to rejoin some of the friends who had helped him to escape from London; or, more questionably, to infiltrate the court in the hope of gathering intelligence of Jacobite schemes. Performing such a service might gain him favor with King William and help secure a pardon—which
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