Which 1720 French speculation episode centered on John Law’s Mississippi Company?

The 1720 French speculation episode centered on John Law’s Mississippi Company was the Mississippi Bubble.

The Mississippi Company controlled a French trading monopoly connected with claims in the Mississippi Valley. Scottish financier John Law promoted the company and linked it to a broader financial system in France, including a bank that issued paper money. Expectations about colonial wealth helped push the company’s share price dramatically higher in 1719 and 1720.

The boom attracted investors from across French society. Share prices rose far beyond what the company’s actual commercial prospects could justify, while paper-money issuance and confidence supported the speculative surge. When investors began demanding conversion and selling shares, confidence collapsed. The resulting crash ruined many investors and damaged faith in Law’s financial system.

The Mississippi Bubble occurred at roughly the same time as Britain’s South Sea Bubble, but they were separate schemes in different countries. Both became classic examples of an asset-price bubble driven by monopoly privileges, easy money, and exaggerated expectations.