Mississippi Scheme

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Mississippi Scheme,

plan formulated by John LawLaw, John,
1671–1729, Scottish financier in France, b. Edinburgh. After killing a man in a duel (1694) he fled to Amsterdam, where he studied banking. Returning to Scotland (1700), he proposed to Parliament plans for trade and revenue reforms and published
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 for the colonization and commercial exploitation of the Mississippi valley and other French colonial areas. In 1717 the French merchant Antoine Crozat transferred his monopoly of commercial privileges in LouisianaLouisiana
, state in the S central United States. It is bounded by Mississippi, with the Mississippi River forming about half of the border (E), the Gulf of Mexico (S), Texas (W), and Arkansas (N). Facts and Figures

Area, 48,523 sq mi (125,675 sq km). Pop.
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 to Law, who, with the sanction of the French regent, Philippe II, duc d'Orléans, organized the Compagnie d'Occident. Its shares first depreciated in value but rose rapidly when Law, director of the new royal bank, promised to take over the stock at par at an early date.

In 1719 the company absorbed several other organizations for the development of the Indies, China, and Africa, and Law thus controlled French colonial trade. The consolidated company, renamed the Compagnie des Indes (but commonly known as the Mississippi Company), was given, among other privileges, the right of farming the taxes. It then assumed the state debt and finally was officially amalgamated (1720) with the royal bank. Public confidence was such that a wild orgy of speculation in its shares had set in. The speculation received a strong impetus from Law's advertising, which described Louisiana as a land full of mountains of gold and silver. One story told of a fabulous emerald rock on the Arkansas River, and an expedition promptly set out to find it.

Overexpansion of the company's activities, the almost complete lack of any real assets in the colonial areas, and the haste with which Law proceeded soon brought an end to his scheme. A few speculators sold their shares in time to make huge profits, but most were ruined when the "Mississippi Bubble" burst in Oct., 1720. In the governmental crisis that followed, Law's financial system was abolished, and he fled the country (Dec., 1720). Although a failure in its financial aspects, the Mississippi Scheme was responsible for the largest influx of settlers into Louisiana up to that time.

References in periodicals archive ?
a Mississippi company, which included a book of orders and few select Dealers.
com, a Mississippi company with an extensive track record of developing apps for counties and cities.
and USWeb, for example), and even failures that occurred hundreds of years ago (the Mississippi Company of 1719, the South Sea Company of 1720, and Tulip Mania of 1636).
A cost-cutting move by a Mississippi company will leave three Arkansas cities with no bank.
After few takeovers including that of East India Company - his company became Company Of The Indies, also known as Mississippi Company.
Another example is a Mississippi company that has been successful in the furniture business; this company assembles furniture for big resorts and hotel chains, such as Disney and Marriott, providing customized designs and assembling the furniture that goes to four- and five-star hotels.
Washington bought up land claims that had been given his soldiers in lieu of salary, and he also invested in other speculative real estate ventures of the period, including the Ohio Company, the Mississippi Company, and the Great Dismal Swamp Company.
In August of 1717 Law established the Mississippi Company (officially registered as Compagnie d'Occident) in which shares were purchased with a combination of paper currency and crown debt.
One small Mississippi company located in the Mississippi Delta estimates spending $6,000 per month for land-filling its residue waste.
Returns from trade organized under the monopoly of Law's Mississippi Company would inflate the value of its shares, which, when converted into government stock (at rates decided by the government itself), would allow the Royal Treasury to amortize its massive debt.
SALT LAKE CITY -- In January 2011, local technology innovator, eTAGZ, sued Primos, Inc, a Flora, Mississippi company that sells hunting-related products, for patent infringement.

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