John Law's System and the Compagnie des Indes. Fourteen original documents representing the parable of the System of Law.
1719 - 1723
A collection of edicts from the King's Council of State covering the extraordinary progression of John Law's system. These documents attest to some of the most important institutional steps through which John Law acquired complete control of French finances after the creation of the General Bank and the East India Company. The first two relate precisely to the foundation of the company and the acquisition of the right to manage the Fermes Générales, which collected the majority of excise duties in France and America. The parable of the Law System, which ended in bankruptcy in 1720, and the measures adopted to contain France's financial collapse are then documented.
1. Arrest du Conseil D’Etat du Roy, Par lequel Sa Majeste Casse & Annulle, a commencer au premier Octobre prochain, le Bail des Fermes Generales fait a Aymard Lambert, pour cinq années qui en restent à expirer… du 27 Aoust 1719.
Paris, Veuve Saugrain & Pierre Prault, 1719
4to; 250x200 mm. Pages 4. Headpiece. Handwritten note on the last page. Lacking on the lower left corner, which does not affect the text, traces of wear.
Very rare. Foundation of the East India Company. With this Decree, Law acquired the right to manage the 'Fermes Generales', which collected the majority of excise duties in France (around 37% of state revenue). The rental contract to Aymard Lambert is cancelled, and compensation of '48,500,000 livres' will be paid. The Compagnie des Indes absorbs the other colonial companies and obtains the State Privilege on the collection of indirect taxes.
Finally, the certificate of guarantee from Nicolas de Launay 'Escuyer Conseiller Secretaire du Roy, Maison Couronne de France et de ses Finances.'
Wroth & Annan 701 (Imprimerie Royale edition, 8 p.); only two copies in the U. S.
2. Arrest du Conseil d'Etat du Roy, Pour la Prise de Possession de la Ferme Generales Unies, par la Compagnie des Indies, sous le nom d'Armand Pillavoine pour neuf Années, … du Premier Septembre 1719.
Paris, Veuve Saugrain & Pierre Prault, 1719
4to; 245x180 mm. Pages 4. Headpiece. Handwritten note on the last page. Lacking on the lower left corner, which does not affect the text, traces of wear.
Very rare. The leases for the Compagnie des Indes, including the 'Domaines d'Occident', are assigned, for nine years, to Armand Pillovoine. The collection of taxes is transferred from A. Lambert and his Attorneys and subjected to the aforementioned Pillovoine. The "Fermes des Domaines d'Occident" collected dues within French possessions in North America, including taxes on wine, spirits, and tobacco in Canada and "Nouvelle France".
Finally, the certificate of guarantee from Nicolas de Launay 'Escuyer Conseiller Secretaire du Roy, Maison Couronne de France et de ses Finances.'
Wroth & Annan 703, only two copies in the U.S.
3. Arrest du Conseil d'Estat du Roy, qui ordonne que les Commis & Employez dans les Sous-Fermes, continueront leurs Exercices ... du dix septieme Octobre 1719.
Paris, Veuve Saugrain & Pierre Prault, [1719]
4to; 260x205 mm. Pages 3, 1 blank. Headpiece. Handwritten note on the last page. Lacking on the lower left corner, which does not affect the text, traces of wear.
Very rare. Organization of the Company's administration: Tax collection officials, who were employees of A. Lambert, will be able to continue to carry out their duties without taking a new oath.
Finally, the certificate of guarantee from Nicolas de Launay 'Escuyer Conseiller Secretaire du Roy, Maison Couronne de France et de ses Finances.'
No in Wroth & Annan.
4. Arrest du conseil d’Estat du Roy, concernant les Billets de Banque, les Actions de la Compagnie des Indes, le cours des especes, & le prix des matieres d’or & d’argent. Du 5 mars 1720.
Toulouse, Claude-Gilles Lecamus, [1720]
4to; 255x180 mm. Pages 8. Woodcut Vignette. Handwritten note on the last page. Lacking on the lower left corner, which does not affect the text, traces of wear.
Crucial phase of the adventure of John Law, founder in 1716 of the first private bank with the right to issue banknotes, then of the Compagnie d'Ouest in 1718, finally creator of a monetary system uniting the bank, the Company and the State, which had the control of foreign trade and large enterprises of the kingdom. After a short period of activity, the imprudence of the transmissions, the speculative fever and the competition ended up causing bankruptcy.
Wroth & Annan, 778 (Ed. Imprimerie Royale).
5. Arrest du Conseil D’Estat du Roy, qui ordonne l'execution des Arrest des 9. 18 Decembre 1717 … et en consequence que le Recouvrement des Droits d’Insinuation & Centieme Deniers … sera fait sur les Contraintes d’Armand Pillavoine … du vingt-cinq May mil sept cens vingt.
Nd, np, [June 1720]
4to; 235x185 mm. Pages4. Lacking on the upper part of the external margins.
Confirmation of the role of Armand Pillavoine, in relation to income through taxes in the Law system: it concerns the right to collect taxes on 'Insinuation', registration of notarial deeds, on real estate sales (centieme denier).
No in Wroth & Annan.
6. Arrest du Conseil D’Estat du Roy qui indique des Diminutions sur les Especes d’Or & d’Argent. Du 10 Juin 1720.
[1720]
4to; 235x190 mm. Pages 4. Headpiece. Handwritten note on the last page. Small flaw on the lower left corner, traces of wear.
Very rare. Law's system had entered a critical phase. This measure decreases the value of gold and silver coins, to encourage the use of paper money, guaranteed by the East India Company. The decree illustrates in detail the exchange value of the various coins that were in circulation in France.
No in Wroth & Annan
7. Arrest du Conseil D’Estat du Roy, Portant augmentations d’Especes d’Or & d’Argent. Du trentieme Juillet 1720 / Arrest du Conseil D’Estat du Roy, Portant augmentations d’Especes d’Or & d’Argent. Du 31 Juillet.
S. l. s.d. [1720]
4to; 240x190 mm. Pages 7, 1 blank. Two Headpieces, the first with French lilies. Handwritten notes on the penultimate and last pages. Residues of two wax seals. Traces of humidity and wear. Small flaw in the lower left corner.
Two very rare edicts joined together. They concern the attempt to "resuscitate the circulation of money", increasing the value of gold and silver. This rare edition of the two arrêts is, as per the final note, printed by the Intendant Malpel of Toulouse and sent, 'par ordre de Messieurs les Directeurs de la Compagnie des Indes'.
No in Wroth & Annan.
8. Arrest du Conseil D’Estat du Roy, portant diminution d’un Quart sur les Especes de Cuivre & Billon… du 21 Septembre 1720.
[1720]
4to; 240x190 mm. Pages 3, 1 blank. Headpiece. Handwritten notes on the last page. Residues of lacquer wax seals. Traces of humidity and wear. Small flaw in the margins.
Rare. Further measure to remedy the financial crisis: the values of copper coins and of the silver alloy called 'biblione' or 'biglione' have decreased to bring them into line with those of silver coins.
This rare edition is, as per the final note, printed by the Intendant Malpel of Toulouse and sent, 'par ordre de Messieurs les Directeurs de la Compagnie des Indes'.
No in Wroth & Annan.
9. Arrest du Conseil D’Estat du Roy, Concernant les Monnoyes. Du 24 Octobre 1720.
[1720]
4to; 240x190 mm. Pages 3, 1 blank. Headpiece. Handwritten note on the last page. Traces of humidity and wear. Little lack in the right bottom corner.
Final phase of the Law System. Following the announced suspension of Royal Bank Notes, starting from November 1st, the new prices of Gold and Silver coins are set, to make the currency stronger for the benefit of trade and to lower the price of goods.
No in Wroth & Annan.
10. Arrest du Conseil D’Estat du Roy, Pour faire recevoir la Partie des Anciennes Espèces qui doivent estre réformées dans tous les Bureaux des Recettes de Sa Majesté, et par les Collecteurs des Tailles, sur le même pied qu'elles le sont aux Monnoyes. Du 8 Novembre 1720.
[1720]
4to; 240x190 mm. Pages 4. Headpiece. Handwritten notes on the last page. Traces of humidity and wear. Small flaw in the lower left corner.
Completion of the reform of coin values, already indicated in the Arrest of 24 October. There are severe penalties for transgressors and 'corporal punishment for repeat offenders'. This rare edition is, as per the final note, printed by the Intendant Malpel of Toulouse.
No in Wroth & Annan.
11. Arrest du Conseil D’Etat du Roy, qui proroge, jusqu'à nouvel ordre, les Diminutions indiquées pour le premier Janvier sur les Espèces, tant anciennes que Nouvelles. Du 26 Decembre 1720.
[1720]
4to; 235x190 mm. Pages 2. Headpiece. Traces of wear, insignificant lack on the lower left corner.
Exceptional measures affecting currency values are extended. It is also established that, starting from February 1, 1721, the old coins will cease to be legal tender, both in trade and in tax payments. Edict signed by Phelypeaux, without the final part with the approval of the king, and without typographical indications.
No in Wroth & Annan.
12. Arrest du Conseil D’Estat du Roy, Portant que les Sols ou Douzains n'auront plus cours dans tout le Royaume que pour 25 deniers au lieu de 27 deniers. Du 3 Juin 1721.
[1721]
4to; 230x190 mm. Pages 2. Traces of wear, small defects on the margins.
Lowering the value of small denomination coins, from 27 denarii to 25 denarii.
No in Wroth & Annan.
13. Arrest du Conseil d'Estat du Roy, qui Proroge jusqu'au dernier Juin prochain le délay porté par l'Arrest du 9 Décembre dernier pour la continuation de la Recette des Espèces et Matières d'Or et d'Argent par les Changeurs, sans déduction d'aucuns Droits sur le Public. Du 17 Mars 1722.
[1722]
4to; 240x190 mm. Pages 3, 1 blank. Headpiece. Handwritten notes on the last page. Sealing wax residue. Traces of wear, small defects on the margins.
Measure that seeks to guarantee the value of gold and silver coins: money changers will have to pay gold and silver at the price set in the decree of 24 October 1720, without any burden to the public, 'a peine de concussion'. This rare edition is, as per the final note, printed by the Intendant Malpel of Toulouse.
No in Wroth & Annan.
14. Arrest du Conseil d'Estat du Roy, Portant que les Quittances des Rentes de l'Hôtel-de-Ville seront Contrôlées. Du sixieme Fevrier 1723.
[1723]
4to; 245x195 mm. Pages 3, 1 blank. Header. Handwritten note on the last page. Lacking from the center of the lower margin, which affects some letters.
The accounts of the municipal administration are subject to an audit. Receipts, arrears and income from the municipality will be viewed and scrupulously examined by notaries. Severe sanctions are foreseen, and no compensation can be received from the controllers, ‘a peine de concussion’.