Thusthesystemcontinuedtoflourishtillthecommencementoftheyear1720。ThewarningsoftheParliament，thattoogreatacreationofpapermoneywould，soonerorlater，bringthecountrytobankruptcy，weredisregarded。TheRegent，whoknewnothingwhateverofthephilosophyoffinance，thoughtthatasystemwhichhadproducedsuchgoodeffectscouldneverbecarriedtoexcess。Iffivehundredmillionsofpaperhadbeenofsuchadvantage，fivehundredmillionsadditionalwouldbeofstillgreateradvantage。ThiswasthegranderroroftheRegent，andwhichLawdidnotattempttodispel。Theextraordinaryavidityofthepeoplekeptupthedelusion；andthehigherthepriceofIndianandMississippistock，themorebilletsdebanquewereissuedtokeeppacewithit。TheedificethusrearedmightnotunaptlybecomparedtothegorgeouspalaceerectedbyPotemkin，thatprincelybarbarianofRussia，tosurpriseandpleasehisimperialmistress:hugeblocksoficewerepiledoneuponanother；ionicpillars，ofchastestworkmanship，inice，formedanobleportico；andadome，ofthesamematerial，shoneinthesun，whichhadjuststrengthenoughtogild，butnottomeltit。Itglitteredafar，likeapalaceofcrystalsanddiamonds；buttherecameonewarmbreezefromthesouth，andthestatelybuildingdissolvedaway，tillnonewereableeventogatherupthefragments。SowithLawandhispapersystem。Nosoonerdidthebreathofpopularmistrustblowsteadilyuponit，thanitfelltoruins，andnonecouldraiseitupagain。
　　Thefirstslightalarmthatwasoccasionedwasearlyin1720。ThePrincedeConti，offendedthatLawshouldhavedeniedhimfreshsharesinIndiastock，athisownprice，senttohisbanktodemandpaymentinspecieofsoenormousaquantityofnotes，thatthreewaggonswererequiredforitstransport。LawcomplainedtotheRegent，andurgedonhisattentionthemischiefthatwouldbedone，ifsuchanexamplefoundmanyimitators。TheRegentwasbuttoowellawareofit，and，sendingforthePrincedeConti，orderedhim，underpenaltyofhishighdispleasure，torefundtotheBanktwo-thirdsofthespeciewhichhehadwithdrawnfromit。ThePrincewasforcedtoobeythedespoticmandate。HappilyforLaw’scredit，DeContiwasanunpopularman:
　　everybodycondemnedhismeannessandcupidity，andagreedthatLawhadbeenhardlytreated。Itisstrange，however，thatsonarrowanescapeshouldnothavemadebothLawandtheRegentmoreanxioustorestricttheirissues。Othersweresoonfoundwhoimitated，frommotivesofdistrust，theexamplewhichhadbeensetbyDeContiinrevenge。Themoreacutestockjobbersimaginedjustlythatpricescouldnotcontinuetoriseforever。BourdonandLaRichardiere，renownedfortheirextensiveoperationsinthefunds，quietlyandinsmallquantitiesatatime，convertedtheirnotesintospecie，andsentitawaytoforeigncountries。Theyalsoboughtasmuchastheycouldconvenientlycarryofplateandexpensivejewellery，andsentitsecretlyawaytoEnglandortoHolland。Vermalet，ajobber，whosniffedthecomingstorm，procuredgoldandsilvercointotheamountofnearlyamillionoflivres，whichhepackedinafarmer’scart，andcoveredoverwithhayandcow-dung。Hethendisguisedhimselfinthedirtysmock-frock，orblouse，ofapeasant，anddrovehispreciousloadinsafetyintoBelgium。FromthencehesoonfoundmeanstotransportittoAmsterdam。
　　Hithertonodifficultyhadbeenexperiencedbyanyclassinprocuringspeciefortheirwants。Butthissystemcouldnotlongbecarriedonwithoutcausingascarcity。Thevoiceofcomplaintwasheardoneveryside，andinquiriesbeinginstituted，thecausewassoondiscovered。Thecouncildebatedlongontheremediestobetaken，andLaw，beingcalledonforhisadvice，wasofopinion，thatanedictshouldbepublished，depreciatingthevalueofcoinfivepercent。
　　belowthatofpaper。Theedictwaspublishedaccordingly；but，failingofitsintendedeffect，wasfollowedbyanother，inwhichthedepreciationwasincreasedtotenpercent。Thepaymentsofthebankwereatthesametimerestrictedtoonehundredlivresingold，andteninsilver。Allthesemeasureswerenugatorytorestoreconfidenceinthepaper，thoughtherestrictionofcashpaymentswithinlimitssoextremelynarrowkeptupthecreditoftheBank。
　　Notwithstandingeveryefforttothecontrary，thepreciousmetalscontinuedtobeconveyedtoEnglandandHolland。Thelittlecointhatwasleftinthecountrywascarefullytreasured，orhiddenuntilthescarcitybecamesogreat，thattheoperationsoftradecouldnolongerbecarriedon。Inthisemergency，Lawhazardedtheboldexperimentofforbiddingtheuseofspeciealtogether。InFebruary1720anedictwaspublished，which，insteadofrestoringthecreditofthepaper，aswasintended，destroyeditirrecoverably，anddrovethecountrytotheverybrinkofrevolution。Bythisfamousedictitwasforbiddentoanypersonwhatevertohavemorethanfivehundredlivres20poundssterlingofcoininhispossession，underpainofaheavyfine，andconfiscationofthesumsfound。Itwasalsoforbiddentobuyupjewellery，plate，andpreciousstones，andinformerswereencouragedtomakesearchforoffenders，bythepromiseofone-halftheamounttheymightdiscover。Thewholecountrysentupacryofdistressatthisunheard-oftyranny。Themostodiouspersecutiondailytookplace。
　　Theprivacyoffamilieswasviolatedbytheintrusionofinformersandtheiragents。Themostvirtuousandhonestweredenouncedforthecrimeofhavingbeenseenwithalouisd’orintheirpossession。
　　Servantsbetrayedtheirmasters，onecitizenbecameaspyuponhisneighbour，andarrestsandconfiscationssomultiplied，thatthecourtsfoundadifficultyingettingthroughtheimmenseincreaseofbusinessthusoccasioned。Itwassufficientforaninformertosaythathesuspectedanypersonofconcealingmoneyinhishouse，andimmediatelyasearch-warrantwasgranted。LordStair，theEnglishambassador，said，thatitwasnowimpossibletodoubtofthesincerityofLaw’sconversiontotheCatholicreligion；hehadestablishedtheinquisition，afterhavinggivenabundantevidenceofhisfaithintransubstantiation，byturningsomuchgoldintopaper。
　　EveryepithetthatpopularhatredcouldsuggestwasshoweredupontheRegentandtheunhappyLaw。Coin，toanyamountabovefivehundredlivres，wasanillegaltender，andnobodywouldtakepaperifhecouldhelpit。Nooneknewto-daywhathisnoteswouldbeworthto-morrow。
　　“Never，“saysDuclos，inhisSecretMemoirsoftheRegency，“wasseenamorecapriciousgovernment-neverwasamorefrantictyrannyexercisedbyhandslessfirm。Itisinconceivabletothosewhowerewitnessesofthehorrorsofthosetimes，andwholookbackuponthemnowasonadream，thatasuddenrevolutiondidnotbreakout——thatLawandtheRegentdidnotperishbyatragicaldeath。Theywerebothheldinhorror，butthepeopleconfinedthemselvestocomplaints；asombreandtimiddespair，astupidconsternation，hadseizeduponall，andmen’smindsweretoovileeventobecapableofacourageouscrime。“Itwouldappearthat，atonetime，amovementofthepeoplewasorganised。Seditiouswritingswerepostedupagainstthewalls，andweresent，inhand-bills，tothehousesofthemostconspicuouspeople。Oneofthem，giveninthe“MemoiresdelaRegence，“wastothefollowingeffect:——“SirandMadam，——ThisistogiveyounoticethataSt。Bartholomew’sDaywillbeenactedagainonSaturdayandSunday，ifaffairsdonotalter。Youaredesirednottostirout，noryou，noryourservants。Godpreserveyoufromtheflames！Givenoticetoyourneighbours。DatedSaturday，May25th，1720。“Theimmensenumberofspieswithwhichthecitywasinfestedrenderedthepeoplemistrustfulofoneanother，andbeyondsometriflingdisturbancesmadeintheeveningbyaninsignificantgroup，whichwassoondispersed，thepeaceofthecapitalwasnotcompromised。
　　ThevalueofsharesintheLouisiana，orMississippistock，hadfallenveryrapidly，andfewindeedwerefoundtobelievethetalesthathadoncebeentoldoftheimmensewealthofthatregion。AlasteffortwasthereforetriedtorestorethepublicconfidenceintheMississippiproject。Forthispurpose，ageneralconscriptionofallthepoorwretchesinPariswasmadebyorderofgovernment。Upwardsofsixthousandoftheveryrefuseofthepopulationwereimpressed，asifintimeofwar，andwereprovidedwithclothesandtoolstobeembarkedforNewOrleans，toworkinthegoldminesallegedtoaboundthere。Theywereparadeddayafterdaythroughthestreetswiththeirpikesandshovels，andthensentoffinsmalldetachmentstotheout-portstobeshippedforAmerica。Two-thirdsofthemneverreachedtheirdestination，butdispersedthemselvesoverthecountry，soldtheirtoolsforwhattheycouldget，andreturnedtotheiroldcourseoflife。Inlessthanthreeweeksafterwards，one-halfofthemweretobefoundagaininParis。Themanoeuvre，however，causedatriflingadvanceinMississippistock。ManypersonsofsuperabundantgullibilitybelievedthatoperationshadbeguninearnestinthenewGolconda，andthatgoldandsilveringotswouldagainbefoundinFrance。
　　Inaconstitutionalmonarchysomesurermeanswouldhavebeenfoundfortherestorationofpubliccredit。InEngland，atasubsequentperiod，whenasimilardelusionhadbroughtonsimilardistress，howdifferentwerethemeasurestakentorepairtheevil；
　　butinFrance，unfortunately，theremedywaslefttotheauthorsofthemischief。ThearbitrarywilloftheRegent，whichendeavouredtoextricatethecountry，onlyplungeditdeeperintothemire。Allpaymentswereorderedtobemadeinpaper，andbetweenthe1stofFebruaryandtheendofMay，noteswerefabricatedtotheamountofupwardsof1500millionsoflivres，or60，000，000poundssterling。Butthealarmoncesounded，noartcouldmakethepeoplefeeltheslightestconfidenceinpaperwhichwasnotexchangeableintometal。
　　M。Lambert，thePresidentoftheParliamentofParis，toldtheRegenttohisfacethathewouldratherhaveahundredthousandlivresingoldorsilverthanfivemillionsinthenotesofhisbank。Whensuchwasthegeneralfeeling，thesuperabundantissuesofpaperbutincreasedtheevil，byrenderingstillmoreenormousthedisparitybetweentheamountofspecieandnotesincirculation。Coin，whichitwastheobjectoftheRegenttodepreciate，roseinvalueoneveryfreshattempttodiminishit。InFebruary，itwasjudgedadvisablethattheRoyalBankshouldbeincorporatedwiththeCompanyoftheIndies。AnedicttothateffectwaspublishedandregisteredbytheParliament。Thestateremainedtheguaranteeforthenotesofthebank，andnomoreweretobeissuedwithoutanorderincouncil。Alltheprofitsofthebank，sincethetimeithadbeentakenoutofLaw’shandsandmadeanationalinstitution，weregivenoverbytheRegenttotheCompanyoftheIndies。ThismeasurehadtheeffectofraisingforashorttimethevalueoftheLouisianaandothersharesofthecompany，butitfailedinplacingpubliccreditonanypermanentbasis。
　　AcouncilofstatewasheldinthebeginningofMay，atwhichLaw，D’Argensonhiscolleagueintheadministrationofthefinances，andalltheministerswerepresent。Itwasthencomputedthatthetotalamountofnotesincirculationwas2600millionsoflivres，whilethecoininthecountrywasnotquiteequaltohalfthatamount。Itwasevidenttothemajorityofthecouncilthatsomeplanmustbeadoptedtoequalisethecurrency。Someproposedthatthenotesshouldbereducedtothevalueofthespecie，whileothersproposedthatthenominalvalueofthespecieshouldberaisedtillitwasonanequalitywiththepaper。Lawissaidtohaveopposedboththeseprojects，butfailinginsuggestinganyother，itwasagreedthatthenotesshouldbedepreciatedone-half。Onthe21stofMay，anedictwasaccordinglyissued，bywhichitwasdecreedthatthesharesoftheCompanyoftheIndies，andthenotesofthebank，shouldgraduallydiminishinvalue，tillattheendofayeartheyshouldonlypasscurrentforonehalfoftheirnominalworth。TheParliamentrefusedtoregistertheedict——thegreatestoutcrywasexcited，andthestateofthecountrybecamesoalarming，that，astheonlymeansofpreservingtranquillity，thecounciloftheregencywasobligedtostultifyitsownproceedings，bypublishingwithinsevendaysanotheredict，restoringthenotestotheiroriginalvalue。