Which 1720 French speculation collapse was organized around John Law’s Mississippi Company?

The 1720 French speculation collapse organized around John Law’s Mississippi Company was the Mississippi Bubble.

John Law, a Scottish financier, became influential in France after establishing a bank that issued paper money. His company held a monopoly over French trade with parts of North America, especially the Mississippi basin, and later absorbed other commercial and tax-collecting privileges.

Investors crowded into shares in Paris, driving prices to extraordinary levels. The monetary system and company shares became closely linked, but confidence eventually failed. Holders rushed to exchange paper claims for precious metal and other assets, causing the bubble to burst in 1720.

The Mississippi Bubble occurred alongside Britain’s South Sea Bubble, but they were different schemes in different countries. Law’s system was particularly important because it combined a trading company, a bank, government finance, and a large expansion of paper money.