In the 1720 Mississippi Bubble, which company was controlled by Scottish financier John Law?

John Law controlled the Mississippi Company during France’s 1720 Mississippi Bubble.

The company was originally associated with French colonial ventures in North America, especially the Mississippi valley. John Law, a Scottish financier who became influential in France, expanded its role while developing a broader financial system based on paper money and a major consolidation of French commercial companies. Investors were encouraged by claims about the wealth of Louisiana and the company’s trade privileges.

Shares rose sharply in Paris during 1719 and 1720. The boom depended heavily on confidence in Law’s system and on the belief that American colonial riches would justify spectacular valuations. When investors sought to convert paper claims and shares into more dependable money, confidence broke down. The company’s share price plunged, and Law fled France.

The Mississippi Bubble occurred at roughly the same time as Britain’s South Sea Bubble, but the companies and financial systems were different. The French episode is also called the Mississippi Scheme or Mississippi Bubble.