John Law


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Law, John

 

Born Apr. 21, 1671, in Scotland; died Mar. 21, 1729, in Venice. Scottish financier.

Law established what is referred to as the Law system, which was based on the issue of unbacked paper money. Believing that paper money in and of itself has a certain value, Law stated that intensive issuing of such currency would have a favorable effect on business activity and the growth of national wealth. Law’s proposition found support in the court circles of France, which was then on the brink of financial disaster. In 1716 a private bank was established (it was converted into a state bank in 1718), the currency of which was guaranteed in the king’s name, and Law became minister of finance of France. However, as a result of excessive issuing of paper currency not backed by gold or silver, the state bank went broke in 1720, and Law fled abroad. Law’s system played a role in the creation of the concepts of the Physiocrats. “The emergence of Physiocracy was connected both with opposition to Colbertism and, in particular, with the hullabaloo over the John Law system” (K. Marx, see Marx and F. Engels, Soch, 2nd ed., vol. 26, part 1, p. 31).

WORKS

Oeuvres complètes, vols. 1–3. Paris, 1934. (Published by P. Harsin).

REFERENCE

Anikin, A. V. lunost’ nauki Moscow, 1971.

V. I. NEZNANOV

References in periodicals archive ?
The last one was John Law in the early 60s so I was really pleased to emulate him last year and of course with my 115 last month.
These are the Scottish gambler, John Law, who first launched a similar speculative scheme in France, John Blunt, who inflated the English bubble in its wake, and the politician, Robert Walpole, who, though heavily involved with the South Sea Company, cunningly used the fallout following its collapse to rise to power.
Volume 1 contains an introduction by Emmett, material on tulipmania in Holland, early writings of John Law on monetary theory and policy, and two selections from Charles Mackay that established the standard interpretation of bubbles as combinations of greed, group hysteria, and irrational behavior.
Sabine Eiche presents a fine edition of the anonymous household manual of the Montefeltro court that is preceded by useful introductory essays in English by John Larner, John Law, Allen Grieco, and Eiche.
by Alan Sheridan and John Law (Cambridge, MA 1988).
Scottish fish processors Joseph Robertson and John Law Frozen Seafoods have taken over coated fish supplier Swankie Food Products.
I never wanted to encourage growth," says John Law, an early organizer who stopped participating in 1996.
John Law and, more particularly, Sir James Steuart, are sympathetically portrayed.
Kanawha-Charleston Health Department spokesman John Law said restaurants, nursing homes, hospitals and other establishments with health permits are being asked to "cease operations.
6, 2013 /PRNewswire/ -- ProQuest has named John Law to the newly created position of Vice President, Enterprise Product Strategy.
The musicians you'll be sitting next to on Sunday evening are pianist John Law, double bassist Yuri Goloubev and drummer Jon Scott.
bar] There is also music from folk/bluegrass outfit Southern Tenant Folk Union, traditional music from The Shee, jazz from Paul Edis & John Law and a tribute to the Rolling Stones with The Stones.