Which company’s collapse defined the 1720 French Mississippi Bubble crash?

The 1720 French Mississippi Bubble crash centered on the collapse of the Mississippi Company’s share price.

The company was promoted by Scottish financier John Law, who also controlled France’s Banque Générale and later the Banque Royale. Investors were attracted by extravagant expectations about profits from France’s North American territories, especially the Mississippi Valley.

Share prices rose dramatically during 1719 and early 1720, but the company’s claims and financial structure could not support the speculation. Investors began demanding conversion of paper wealth into precious metals and other assets. Confidence failed, triggering a rush to sell shares and a monetary crisis.

The French episode occurred alongside the better-known South Sea Bubble in Britain, but these were separate companies and national schemes. The Mississippi Company was later renamed the Company of the Indies, and John Law fled France after the collapse.