Extraordinary Popular Delusions and the Madness of Crowds (Complete Edition: Volume 1-3). Charles Mackay
anything to do with him. (This anecdote, which is related in the correspondence of Madame de Baviere, Duchess of Orleans, and mother of the Regent, is discredited by Lord John Russell, in his "History of the principal States of Europe, from the Peace of Utrecht;" for what reason he does not inform us. There is no doubt that Law proposed his scheme to Desmarets, and that Louis refused to hear of it. The reason given for the refusal is quite consistent with the character of that bigoted and tyrannical monarch.)
It was after this repulse that he visited Italy. His mind being still occupied with schemes of finance, he proposed to Victor Amadeus, Duke of Savoy, to establish his land-bank in that country. The Duke replied that his dominions were too circumscribed for the execution of so great a project, and that he was by far too poor a potentate to be ruined. He advised him, however, to try the King of France once more; for he was sure, if he knew anything of the French character, that the people would be delighted with a plan, not only so new, but so plausible.
Louis XIV died in 1715, and the heir to the throne being an infant only seven years of age, the Duke of Orleans assumed the reins of government, as Regent, during his minority. Law now found himself in a more favourable position. The tide in his affairs had come, which, taken at the flood, was to waft him on to fortune. The Regent was his friend, already acquainted with his theory and pretensions, and inclined, moreover, to aid him in any efforts to restore the wounded credit of France, bowed down to the earth by the extravagance of the long reign of Louis XIV.
Hardly was that monarch laid in his grave ere the popular hatred, suppressed so long, burst forth against his memory. He who, during his life, had been flattered with an excess of adulation, to which history scarcely offers a parallel, was now cursed as a tyrant, a bigot, and a plunderer. His statues were pelted and disfigured; his effigies torn down, amid the execrations of the populace, and his name rendered synonymous with selfishness and oppression. The glory of his arms was forgotten, and nothing was remembered but his reverses, his extravagance, and his cruelty.
The finances of the country were in a state of the utmost disorder. A profuse and corrupt monarch, whose profuseness and corruption were imitated by almost every functionary, from the highest to the lowest grade, had brought France to the verge of ruin. The national debt amounted to 3000 millions of livres, the revenue to 145 millions, and the expenditure to 142 millions per annum; leaving only three millions to pay the interest upon 3000 millions. The first care of the Regent was to discover a remedy for an evil of such magnitude, and a council was early summoned to take the matter into consideration. The Duke de St. Simon was of opinion that nothing could save the country from revolution but a remedy at once bold and dangerous. He advised the Regent to convoke the States-General, and declare a national bankruptcy. The Duke de Noailles, a man of accommodating principles, an accomplished courtier, and totally averse from giving himself any trouble or annoyance that ingenuity could escape from, opposed the project of St. Simon with all his influence. He represented the expedient as alike dishonest and ruinous. The Regent was of the same opinion, and this desperate remedy fell to the ground.
The measures ultimately adopted, though they promised fair, only aggravated the evil. The first, and most dishonest measure, was of no advantage to the state. A recoinage was ordered, by which the currency was depreciated one-fifth; those who took a thousand pieces of gold or silver to the mint received back an amount of coin of the same nominal value, but only four-fifths of the weight of metal. By this contrivance the treasury gained seventy-two millions of livres, and all the commercial operations of the country were disordered. A trifling diminution of the taxes silenced the clamours of the people, and for the slight present advantage the great prospective evil was forgotten.
A chamber of justice was next instituted, to inquire into the malversations of the loan-contractors and the farmers of the revenues. Tax collectors are never very popular in any country, but those of France at this period deserved all the odium with which they were loaded. As soon as these farmers-general, with all their hosts of subordinate agents, called maltotiers (From maltote, an oppressive tax.), were called to account for their misdeeds, the most extravagant joy took possession of the nation. The Chamber of Justice, instituted chiefly for this purpose, was endowed with very extensive powers. It was composed of the presidents and councils of the parliament, the judges of the Courts of Aid and of Requests, and the officers of the Chamber of Account, under the general presidence of the minister of finance. Informers were encouraged to give evidence against the offenders by the promise of one-fifth part of the fines and confiscations. A tenth of all concealed effects belonging to the guilty was promised to such as should furnish the means of discovering them.
The promulgation of the edict constituting this court caused a degree of consternation among those principally concerned which can only be accounted for on the supposition that their peculation had been enormous. But they met with no sympathy. The proceedings against them justified their terror. The Bastile was soon unable to contain the prisoners that were sent to it, and the gaols all over the country teemed with guilty or suspected persons. An order was issued to all innkeepers and postmasters to refuse horses to such as endeavoured to seek safety in flight; and all persons were forbidden, under heavy fines, to harbour them or favour their evasion. Some were condemned to the pillory, others to the gallies, and the least guilty to fine and imprisonment. One only, Samuel Bernard, a rich banker, and farmer-general of a province remote from the capital, was sentenced to death. So great had been the illegal profits of this man,—looked upon as the tyrant and oppressor of his district,—that he offered six millions of livres, or 250,000 pounds sterling, to be allowed to escape.
His bribe was refused, and he suffered the penalty of death. Others, perhaps more guilty, were more fortunate. Confiscation, owing to the concealment of their treasures by the delinquents, often produced less money than a fine. The severity of the government relaxed, and fines, under the denomination of taxes, were indiscriminately levied upon all offenders. But so corrupt was every department of the administration, that the country benefited but little by the sums which thus flowed into the treasury. Courtiers, and courtiers' wives and mistresses, came in for the chief share of the spoils. One contractor had been taxed in proportion to his wealth and guilt, at the sum of twelve millions of livres. The Count * * *, a man of some weight in the government, called upon him, and offered to procure a remission of the fine, if he would give him a hundred thousand crowns. "Vous etes trop tard, mon ami," replied the financier; "I have already made a bargain with your wife for fifty thousand." (This anecdote is related by M. de la Hode, in his Life of Philippe of Orleans. It would have looked more authentic if he had given the names of the dishonest contractor and the still more dishonest minister. But M. de la Hode's book is liable to the same objection as most of the French memoirs of that and of subsequent periods. It is sufficient with most of them that an anecdote be ben trovato; the veto is but matter of secondary consideration.)
About a hundred and eighty millions of livres were levied in this manner, of which eighty were applied in payment of the debts contracted by the government. The remainder found its way into the pockets of the courtiers. Madame de Maintenon, writing on this subject, says, "We hear every day of some new grant of the Regent; the people murmur very much at this mode of employing the money taken from the peculators." The people, who, after the first burst of their resentment is over, generally express a sympathy for the weak, were indignant that so much severity should be used to so little purpose. They did not see the justice of robbing one set of rogues to fatten another. In a few months all the more guilty had been brought to punishment, and the chamber of justice looked for victims in humbler walks of life. Charges of fraud and extortion were brought against tradesmen of good character, in consequence of the great inducements held out to common informers. They were compelled to lay open their affairs before this tribunal in order to establish their innocence. The voice of complaint resounded from every side, and at the expiration of a year the government found it advisable to discontinue further proceedings. The chamber of justice was suppressed, and a general amnesty granted to all against whom no charges had yet been preferred.
In the midst of this financial confusion Law appeared upon the scene. No man felt more deeply than the Regent the deplorable state of the country, but no man could be more averse from putting his shoulders manfully to the wheel. He disliked business; he signed official documents without proper examination, and trusted to others what he should have undertaken himself. The cares inseparable from his high office were burdensome to