What is *Millionaire* by Janet Gleeson about?

*Millionaire* chronicles the rise and fall of John Law, an 18th-century Scottish financier who revolutionized France’s economy by introducing paper money and speculative trading. The book explores how Law’s Mississippi Company sparked Europe’s first stock market bubble, creating millionaires overnight before collapsing into financial chaos. Gleeson reveals how Law’s innovations laid the groundwork for modern finance while exposing systemic risks of speculation.

Who should read *Millionaire* by Janet Gleeson?

This book suits history enthusiasts, economics students, and readers fascinated by financial crises. Its blend of biography and economic analysis appeals to anyone interested in the origins of stock markets, speculative bubbles, or the psychological drivers behind economic booms and busts. Fans of narrative nonfiction will appreciate Gleeson’s vivid storytelling about greed, power, and innovation.

What were John Law’s key contributions to modern finance?

Law pioneered paper money as a replacement for gold-backed currency, established central banking principles, and created the Mississippi Company—a precursor to modern corporations. His ideas about credit systems and speculative investment reshaped France’s economy, though his policies also triggered hyperinflation and the infamous Mississippi Bubble collapse.

How did the term “millionaire” originate?

The term was coined during the Mississippi Bubble frenzy (1717–1720), when early investors in John Law’s Mississippi Company saw unprecedented returns. Speculators who bought shares in the company’s ventures in French Louisiana became Europe’s first mass cohort of millionaires before the bubble burst.

What caused the Mississippi Bubble to collapse?

The bubble burst due to overvaluation of Mississippi Company shares, rampant speculation, and hyperinflation from excessive paper money printing. When investors rushed to convert paper wealth into gold, France’s reserves proved insufficient, causing economic panic and Law’s downfall.

How does Gleeson portray John Law’s legacy?

Gleeson presents Law as a visionary but flawed genius—a gambler and duellist who grasped money’s abstract potential yet underestimated human greed. While his theories influenced modern banking, his inability to control speculation led to disaster, leaving a cautionary tale about financial innovation without oversight.

What modern financial parallels does the book highlight?

The Mississippi Bubble mirrors modern crises like the 2008 housing crash or cryptocurrency volatility, illustrating how speculative mania, lax regulation, and faith in “new paradigms” repeatedly destabilize economies. Gleeson emphasizes how Law’s story underscores enduring tensions between innovation and risk.

What criticisms exist about John Law’s policies?

Critics argue Law exacerbated wealth inequality by enriching elites while bankrupting France’s treasury. His reliance on paper money without adequate backing and suppression of dissent during the bubble are viewed as reckless. Historians debate whether his ideas were超前于时代 or fundamentally flawed.

O Milionário

O Mulherengo, Jogador e Duelista que Inventou as Finanças Modernas

Janet Gleeson

3.8(456 Reviews)

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Descubra a selvagem história real de John Law — apostador, duelista e gênio econômico que inventou o papel-moeda, criou a primeira bolha do mercado de ações da história e cujos experimentos financeiros ainda assombram nossa economia moderna. O colapso espetacular da Companhia do Mississippi oferece lições inquietantes para os investidores de hoje.

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Capítulo 1

The Alchemist of Paper Money: John Law's Financial Revolution

In the late 17th century, as European monarchs found their treasuries emptied by endless wars and extravagant spending, a Scottish gambler and mathematical genius proposed a revolutionary solution: replace scarce gold and silver with abundant paper. John Law's financial innovations would transform France from bankruptcy to prosperity almost overnight, creating the world's first stock market boom and introducing the term "millionaire" to the world's vocabulary. Beyonce reportedly keeps a copy of Janet Gleeson's "Millionaire" on her nightstand, fascinated by Law's rise and fall as a cautionary tale of financial hubris. Law's story resonates powerfully in our modern era of digital currencies and cashless transactions-he essentially predicted our financial future three centuries ago. His system's spectacular collapse in 1720 continues to influence economic thinking, with former Federal Reserve Chairman Alan Greenspan citing Law's experience when warning about "irrational exuberance" in financial markets. This remarkable tale of ambition, innovation, and catastrophe reveals not just the birth of modern finance, but the timeless human psychology that drives markets from euphoria to panic.

Capítulo 2

The Making of a Financial Genius

John Law's journey from Scottish goldsmith's son to international financial celebrity began with surprisingly conventional roots. Born in April 1671 in Edinburgh to a family with generations of Church ministers behind them, Law's father William had broken tradition to become a goldsmith-a profession that combined craftsmanship with the increasingly lucrative business of money dealing. Young John grew up observing both the artistic elements of metalwork and the sophisticated financial transactions that would later shape his revolutionary ideas about banking and currency. Edinburgh in the 1670s and 80s was transforming under the Duke of York's viceroyalty, with new coffeehouses, street lighting, and commercial developments. The boy showed natural fascination with his father's financial dealings, developing an appreciation for craftsmanship while absorbing complex monetary concepts. By 1683, William's success allowed him to purchase Lauriston Castle and surrounding lands, but before the family could relocate, he fell ill with bladder stones and traveled to Paris for treatment. The procedure proved fatal, and William died in Paris-ironically in the city his son would later dominate. Money's evolution had fascinated humans since ancient times. While almost anything from livestock to shells had served as currency throughout history, precious metals became the most enduring form due to their scarcity and durability. Banking originated in ancient Babylon, with money-changing and deposit services appearing in Athens and Rome before flourishing in medieval Italian trading cities. The revolutionary "miracle of banking" came with the discovery of credit-allowing paper receipts to represent deposited gold while portions of that same gold could be lent to others, effectively multiplying money's utility. This system worked brilliantly until external events caused mass withdrawals exceeding reserves. In Britain, moneylending was initially condemned as usury, leaving the trade to foreigners, particularly Italian merchants operating from London's Lombard Street. By the late 17th century, with wars, expanding commerce, and growing populations creating enormous demand for credit, goldsmiths dominated money dealing in Britain while American colonies resorted to using wampum shells and other alternatives amid severe coin shortages. After his father's death, Law moved to London, where he quickly established himself as a man about town-visiting theaters, strolling elegant gardens, dining in fine taverns, and frequenting coffeehouses. His fondness for gambling and women followed him to London. Associating with figures like Thomas Neale, the Master of the Mint and notorious gambler, Law initially lost heavily. By early 1692, before turning twenty-one, his inheritance was exhausted, forcing him to ask his mother to sell Lauriston estate to cover his debts. This humbling experience transformed Law's approach to gambling. Rather than abstaining, he applied his mathematical brilliance to the emerging science of probability, studying works that calculated odds in games of chance. He mastered calculation at incredible speed, and his fortunes turned dramatically-not through luck but through calculation and by positioning himself as banker where odds favored him. He even invented his own games with built-in advantages.

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Capítulo 3

The Duel That Changed Everything

On April 9, 1694, John Law's life took a dramatic turn when he fatally wounded Edward Wilson in a duel at Bloomsbury Square, a renowned dueling ground on London's outskirts. Their conflict had been brewing over Law's living arrangements with his mistress and Wilson's sister. After a confrontation at the Fountain tavern that morning, Wilson and his friend Captain Wightman traveled to Bloomsbury where Law awaited them. When Wilson drew his sword, Law responded with a single, fatal thrust. Law was arrested and taken to Newgate prison, where his wealth and connections secured him better accommodations than most inmates. Despite friends' advice, Law maintained he was guilty only of manslaughter, not murder, claiming self-defense. However, evidence of their long-standing rivalry and quarrels led to capital murder charges instead. Law's case hinged on whether the duel was prearranged-if so, he would be guilty of murder regardless of who drew first. Without legal representation or witnesses, his only defense was an unsworn statement claiming the meeting was accidental. Despite character witnesses testifying to his good nature, Judge Lovell's damning influence sealed his fate. The jury, likely bribed by Wilson's powerful relatives, found Law guilty of murder. He was sentenced to death by hanging alongside forgers, clippers of coins, and a rapist-the gentlemanly duelist condemned as a common criminal. After his conviction, Law remained surprisingly optimistic, believing justice would be merciful for a gentleman's crime. Dueling, though officially condemned, was an unwritten badge of rank among the privileged, with survivors rarely executed. But Wilson's influential relatives lobbied King William against clemency, creating a web of intrigue at Whitehall. Law's staunchest ally was the Earl of Warriston, a fellow Scot and brilliant lawyer with connections to King William. Despite royal antipathy toward Scots, Warriston braved the king's wrath to argue that Wilson's family had corrupted the jury. He enlisted the powerful Duke of Shrewsbury's help, providing evidence that Law had recently received 400 from Scotland, disproving the king's suspicion that money disputes motivated the duel. The king eventually granted a reprieve but not release, taking middle ground between Law's supporters and Wilson's family. Wilson's family retaliated with an "Appeal of Murder," an ancient legal procedure allowing a murder victim's heir to oppose royal pardons. Law was transferred from Newgate to King's Bench prison in Southwark for this civil trial. Despite having eminent lawyers and the fair-minded Chief Justice Holt presiding, Law's prospects dimmed when Wilson's team painted him as malicious and cowardly. Law's defense relied on technical discrepancies in the writ, causing the hearing to be postponed until autumn. Facing months in prison and an uncertain outcome, Law finally heeded friends' advice to escape. His first attempt failed when guards discovered filed bars, resulting in his being shackled. The truth of his eventual escape was more complex than legend suggests-with royal blessing but plausible deniability, Shrewsbury and Warriston secretly arranged for prison underkeepers to drug guards and free Law. When his escape was announced, Wilson's family secured a reward notice in the London Gazette, but the description was deliberately inaccurate-calling him pockmarked with a loud voice-helping Law evade capture.

Capítulo 4

European Wanderings and Financial Revelations

As Law crossed to the Continent, he deliberately separated himself from his past, leaving only sparse documentary evidence of his life over the next two decades. He traveled throughout Europe-Paris, Caen, Holland, and various Italian cities-following a familiar pattern of gaming and romance, while developing a growing obsession with economics. Law was drawn to key financial centers like Amsterdam, Venice, Genoa, and Turin. Amsterdam particularly fascinated him as Europe's commercial capital, whose success stemmed from its revolutionary bank. Founded in 1609, the Bank of Amsterdam brought stability amid monetary confusion by accepting various coins, assessing their metal content, and issuing credit notes representing their intrinsic value. Unlike Sweden's failed paper money experiment or Massachusetts Bay Colony's emergency currency, Amsterdam's prudent approach-never issuing notes without metal reserves-earned universal trust. By century's end, it held 16 million florins in 2,700 accounts, financing fleets and securing the nation's fortune. Around 1697, Law visited Paris-a magnificent city of stone-paved streets, ornate facades, and lavish interiors that captivated him. He gravitated to James II's exiled Jacobite court at St. Germain-en-Laye, perhaps seeking Scottish company, reconnecting with friends who helped his London escape, or possibly gathering intelligence to secure a pardon. In Paris's gaming salons, Law excelled at faro and basset, carrying enormous sums and having personal tokens minted when his hands couldn't hold his stakes. Law met Katherine Seigneur in Paris, and despite social conventions, asked her to leave with him to Italy. She agreed "to pack up her awls, leave her husband, and run away with him," becoming known as Mrs. John Law though marriage remained impossible. Their elopement made headlines in Paris. In Italy, Law combined gambling with financial research, visiting banking centers in Genoa, Rome, Florence, Turin and Venice. He studied Venice's state banks and foreign-exchange systems, attending the Rialto exchange regularly while enjoying the city's famous carnival atmosphere. By the end of his Italian tour, Law had accumulated 20,000 and impressive financial knowledge, but grew dissatisfied with merely making money for personal gain. After ten years abroad, he decided to return to Scotland to unveil his economic ideas. Law returned to Scotland around 1704, traveling through Germany and Holland with Katherine and family. Though still a fugitive in England, he could safely reside in Scotland under its separate government. Tired of life on the run, Law sought a royal pardon by offering his financial expertise to Queen Anne. He wrote "Essay on a Land Bank," proposing paper money backed by land rather than volatile silver. Despite the Wilson family's agreement to drop their appeal, the queen rejected his petition, marking it simply "rejected." Undeterred, Law adapted his scheme for economically struggling Scotland, where he had influential connections including the Duke of Argyll.

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Capítulo 5

The Financial Visionary Emerges

In 1705, Law anonymously published "Money and Trade Considered with a Proposal for Supplying the Nation with Money," a remarkably clear economic treatise. He defined value as related to rarity rather than use, citing diamonds versus water, and described money as merely "the value by which goods are exchanged" rather than having intrinsic worth. His proposal for a land-backed currency bank was brought before Scottish Parliament by the Duke of Argyll, but became entangled in political factionalism. The Squadrone Volante supported him while the national party fiercely opposed him, with Andrew Fletcher calling it "a contrivance to enslave the nation." The scheme was ultimately rejected as "too chimerical," and with union with England approaching, Law's second appeal for royal pardon was denied, forcing him back into exile. Late in 1705, Law and his family returned to a continent torn by the War of the Spanish Succession. After the birth of their son John in The Hague, the Laws visited Vienna where Law proposed his financial system to the Emperor without success, though he made substantial gambling winnings. Law then set his sights on France, Europe's largest yet most impoverished nation, where Louis XIV's decades of military aggression and extravagance had depleted the treasury. The countryside suffered abject poverty-people made flour from ferns and grass, children "cropped fields like sheep," and even the king melted his golden dinner services for currency. Despite numerous attempts to replenish the treasury through venal offices, paper credit notes, and currency revaluations, by 1715 France would be over 2 billion livres in debt. Law was convinced he had the answer to France's economic woes: establish a national bank and issue paper money to increase circulation. "Trade and money depend mutually on one another," he argued. "When trade decays money lessens; and when money lessens, trade decays." In November 1706, he submitted a memorandum to Chamillard, Louis XIV's overworked controller general, who merely laughed at Law's vision without presenting it to the king. However, during this Paris visit, Law met Philippe, Duc d'Orleans, the king's nephew-a kindred spirit who shared Law's intellect, tennis skills, and success with women. Despite their growing friendship and Orleans' support, when Law resubmitted his proposal, Louis XIV rejected it, reportedly because Law was non-Catholic and therefore "inherently untrustworthy." Undeterred, Law continued his quest across Europe, with Katherine and their growing family in tow. Their second child, Mary Katherine (called Kate), was born in Genoa in 1710. In Turin, Law presented his banking scheme to Victor Amadeus, Duke of Savoy, who initially admired it but eventually rejected it as too ambitious for his small domain. Meanwhile, Law's financial success continued-his speculative dealings and currency trades enabled him to deposit 100,000 in an Amsterdam bank. By 1712, Law established himself in The Hague with a grand residence filled with art, where Katherine played society hostess. His mysterious fortune-"picked up in Italy... some say by army undertakings at Genoa, and some say partly by gaming"-and charismatic personality made him the talk of Dutch society.

Capítulo 6

The Opportunity of a Lifetime

When Louis XIV died on September 1, 1715, the Duc d'Orleans emerged as regent for the five-year-old Louis XV, giving Law hope that his opportunity had finally arrived. France's economic situation was dire-Noailles' currency revaluations had worsened coin shortages, causing government securities to plummet 80%, businesses to founder, and unemployment to rise. Crime increased dramatically, with widespread robbery and desolation. The Chamber of Justice, established to investigate financial profiteering, created a climate of fear and treachery, with torture chambers and severe punishments including life sentences on brutal galleys. Against this backdrop of horror, Law's banking scheme suddenly appeared as painless salvation. After initial resistance from the Duc de Noailles and the finance council, Law modified his approach, proposing a privately run bank similar to the Bank of England. In May 1716, Law's Banque Generale was granted a twenty-year charter, though only a quarter of its 1,200 shares were purchased. Law cultivated influence through weekly meetings with Saint-Simon and offered free banking services-transfers, bill discounting, and foreign currency exchange. With the regent's public deposits and decrees allowing tax payments in banknotes, the bank eventually paid shareholders a 7% dividend. Law's white notes, promising payment "in coin of the weight and standard of this day," began circulating throughout France, gradually effecting the revival he promised. Law saved his bank from collapse when opponents gathered 5 million livres in notes to demand immediate payment. Though the bank lacked sufficient coins, Law stalled for twenty-four hours and appealed to the finance ministry. Despite his rivalry with Noailles, the finance minister recognized the bank's importance and ordered the mint to provide the necessary coins, allowing Law to triumphantly meet the challenge. While the bank slowly gained success, Law sought bolder ventures. An opportunity arose with Thomas "Diamond" Pitt's 140-carat stone from India-"the size of a Reine Claude plum, almost round, perfectly white, free from blemish." Law persuaded the Regent to purchase this spectacular diamond for 2 million livres, arguing it would reinforce France's status despite widespread hardship. With Saint-Simon's help, they convinced Orleans that "the greatest king in Europe" shouldn't apply common rules. Unable to pay outright, they secured a loan against other jewels. The Regent Diamond later adorned French regalia, survived the revolution, and remains in the Louvre-a gleaming testament to Law's determination.

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Capítulo 7

The Mississippi Company and Financial Revolution

Law's greatest ambition was forming an overseas trading company to exploit wealth from the Americas and Indies. While other European powers had reaped fortunes from colonial trade, France's previous ventures had failed. When financier Robert Crozat relinquished his Mississippi concession to pay tax debts, Law seized his opportunity. He proposed creating a company to control Louisiana-a vast, largely unexplored territory stretching from the Mississippi northward, rumored to contain gold and silver mountains. Law would raise 100 million livres by selling 200,000 shares at 500 livres each, allowing investors to pay partly with devalued government bonds at face value, thus reducing Crown debt while offering profit potential to shareholders. Despite the regent's support, Law faced fierce resistance from the Parlement, which distrusted the foreigner's motives and influence. When d'Argenson (who replaced Law's enemy Noailles as finance minister) proposed devaluing the livre, the Parlement revolted, publishing an edict forbidding foreigners from administering royal funds. The crisis escalated until the Parlement threatened to arrest and hang Law, forcing him to seek refuge in the Palais Royal. The regent ultimately crushed the rebellion through a lit de justice, where the young king asserted his authority and three rebellious magistrates were arrested. Once again, Law had eluded his enemies. The Parlement's threat to hang Law shook him profoundly but didn't alter his resolve to implement his master plan. Though still driven by a gambler's will to win and philanthropic desire to improve society, Law now craved social acceptance and redemption from his past. His isolation at the Palais Royal awakened a need to belong, perhaps influenced by Katherine's desire for security. By autumn, Lady Mary Wortley Montagu noted his transformation, observing that Law now treated French nobility "de haut en bas" while receiving their submission and respect. In December 1718, Law's Banque Generale became the Banque Royale-effectively nationalized while still under his direction. New branches opened across France, and transactions over 600 livres were mandated to be in paper notes or scarce gold, forcing paper currency adoption. Early investors were lavishly rewarded with coin payments, including Law and the regent who profited handsomely from the takeover. The royal transition brought danger: without shareholders demanding accountability, note printing became less controlled, with eight printers working around the clock producing currency. More ominously, notes were no longer redeemable at issue value but at face value-abandoning the principle underpinning public confidence. Yet remarkably, as economist Sir James Steuart noted, "nobody seemed dissatisfied."

Capítulo 8

The System Expands: Building an Empire

Law began building a vast property portfolio, purchasing the Duchy of Mercoeur for 100,000 livres and the Hotel de Soissons for 750,000 livres, which became Mississippi Company headquarters. His brother William joined him from London with his beautiful wife Rebecca, establishing themselves in Parisian high society with mansions and liveried servants. Meanwhile, Law recruited hundreds of English craftsmen to stimulate French industry, offering them comfortable lodgings and steady wages-a move that would serve the growing luxury goods demand during France's economic boom. To transform the underperforming Mississippi Company into Europe's leading conglomerate, Law pursued monopolization of French trade and state finances-essentially dealing his company an unbeatable hand. He acquired tobacco farming rights in the colonies and trade rights in Senegal, capitalizing on the fashionable snuff market that Princess Palatine noted users could "no longer give up." His most crucial acquisition was the failing French East India and China Company, creating a global trading enterprise. This expansion was funded by issuing 50,000 new shares nicknamed "filles" (daughters), following the original "meres" (mothers) shares. Unlike the first issue purchased with state bonds, these required cash payment, but with tempting installment terms. Despite establishment skepticism led by d'Argenson, Law boldly guaranteed to purchase 2.5 million livres worth of shares himself-effectively committing to buy over 90% of the entire issue and invest 25 million livres total. Though he later admitted, "On Monday night I did not sleep," his gamble worked brilliantly. His confidence sparked investor interest, and share prices broke through par value, rising to 600 livres by mid-June. Law shrewdly restricted new issues-buyers needed four old shares to purchase one new one-creating artificial scarcity that drove prices higher. By summer's end, shares that had languished at 490 livres were trading at 3,500. Meanwhile, Law promised generous 12% dividends while the bank printed more notes to fuel share purchases. Paris was engulfed in unprecedented speculation fever. On August 25, thousands gathered in the Jardin des Tuileries for festivities that ended in tragedy when crowd panic led to eleven deaths and hundreds of injuries. Against this backdrop, Law made his most audacious move: offering to lend the state enough to repay the national debt-1.2 billion livres at 3% interest-while paying 52 million livres to take over tax collection from the powerful Farmers General. This massive sum would be raised through further share issues, with existing bondholders incentivized to convert to shares rather than lower-yield annuities. The fourth issue of 100,000 shares at 5,000 livres each was devoured by investors, followed by two identical issues and a final one of 24,000 shares.

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Capítulo 9

Millionaire Madness: The First Great Bubble

Share trading in the rue Quincampoix created unprecedented chaos. Aristocrats jostled with footmen, bishops with courtesans, and magistrates with pickpockets as all social classes mingled in the frenzied trading. Daniel Defoe described it as "scandalously dirty" with people "up to the ankles in dirt." Authorities tried controlling the madness by banning carriages, erecting gates, and posting guards. Even Finance Minister d'Argenson once spent over an hour trapped in traffic. The street became so valuable that properties previously renting for 800 livres annually were subdivided into tiny offices commanding 400 livres monthly. Makeshift trading spaces appeared on rooftops and in alleyways, while a hunchback allegedly earned 150,000 livres renting his hump as a writing desk. The nine-year-old King Louis XV himself demanded that Quincampoix be highlighted in gold on maps of Paris. While Paris transformed into an enchanted city of wealth, John Law became an international superstar. His residence in Place Vendome drew pilgrims of nobility whose "sole occupation seemed to be a desire to pay court to him." Most sought preferential shares, which Law often generously granted. Saint-Simon observed with disgust how visitors forced Law's door and even came "tumbling down the chimney." Ladies particularly pursued him, behaving so shamelessly that the regent's mother complained they would "kiss his backside" if he wanted. Despite the constant demands and attention, Law generally remained gracious and witty, though he later recalled receiving "a hundred impertinent demands" daily. Mississippi speculation created unprecedented social mobility that alarmed the elite. With only 10% deposits required, people from all backgrounds sold everything they owned to join the market. Voltaire questioned whether "half the nation found the philosopher's stone in paper mills" and whether Law was "a god, a rogue or a charlatan." Rags-to-riches tales abounded: Law's coachman grew so wealthy he hired two drivers and offered Law first choice; a widow from Namur invested debt payments in stock and made millions, purchasing Chateau d'Ivry where she hosted legendary feasts. Traders operated without regulation, causing wild price swings-shares that languished at 490 livres in early 1719 reached 6,500 by October. Newfound wealth triggered an orgy of consumption. Crimson velvet carriages became status symbols, while goldsmiths sold 120,000 silver plates worth over $11 million in just three months. Tapestry workshops, porcelain importers, and furniture makers like Cressent and the Boulle brothers thrived creating ostentatious pieces veneered with exotic woods imported on Mississippi Company vessels. Diplomat Daniel Pulteney reported one shop selling 800,000 livres of lace in three weeks "chiefly to people who never wore any lace before." The regent's mother observed with apprehension, "It is inconceivable what immense wealth there is in France now... the god Mammon reigns an absolute monarch in Paris."

Capítulo 10

The Bubble Bursts: Descent into Chaos

As Law's financial system began showing signs of strain, public confidence wavered despite his reassurances. At the December 1719 Mississippi Company meeting, Law announced a 200-livre dividend to shareholders while share prices fluctuated wildly between 7,500 and 10,000 livres. Behind the scenes, savvy investors like Richard Cantillon began selling their holdings, converting paper to coin and precious metals. The bank's reserves dwindled as investors, including the Prince de Conti who needed three wagons to transport his withdrawn coins, abandoned paper money. By late 1720, some 500 million livres in silver and gold had left the country. Merchants increasingly refused paper currency, and inflation soared-bread prices quadrupled and property values tripled. Despite his previous free-market philosophy, Law was forced to implement desperate measures, banning the export of coins and bullion as the system he created faced imminent collapse. After banning coin exports on January 28, 1720, he discovered people finding workarounds-converting wealth to jewels or smuggling money across borders. Law retaliated dramatically on February 4 by prohibiting the purchase and wearing of diamonds and precious gems. When investors turned to silver and gold objects instead, he banned production and sale of all gold or silver artifacts except religious items. In a shareholders meeting, Law announced the royal bank's takeover by the Mississippi Company and the buyback of royal shares, then closed company sales offices and withdrew support for the share price. Within a week, shares plunged 26% from 9,500 to 7,800 livres. On February 27, Law banned possession of more than 500 livres in precious metals and required all payments over 100 livres to be made in banknotes, with severe punishment for transgressors and rewards for informers. Not everyone complied with Law's desperate measures. The Duc de Bourbon exchanged a reported 25 million livres for coins just before the new regulations took effect. When summoned by the regent to explain why he had "destroyed in a moment what we have struggled to establish over several days," both Bourbon and Prince de Conti refused to return their gold. Investigators, likely bribed, made cursory searches of their chateaux and found nothing. As the regent's support wavered, Law's self-confidence crumbled. Reports from servants and enemies suggested he suffered a nervous breakdown-experiencing insomnia, anxiety attacks, and volatile mood swings. According to Stair, who heard from one of Law's footmen, Law would get up at night "stark staring mad" and run about "singing and dancing, at other times swearing, staring and stamping." One night, his wife Katherine had to ring for assistance when she found Law in his shirt, dancing around two chairs placed in the middle of the room.

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Capítulo 11

The Final Act: Exile and Legacy

With over 2.6 billion livres in banknotes issued by May 1720, Law made his most desperate move-announcing that shares would be reduced from 9,000 to 5,000 livres by December, and banknotes would gradually lose 50% of their value. The public saw this as confirmation he was a charlatan. Riots erupted for three days as crowds pelted the bank with stones. Katherine Law and her daughter were threatened by mobs and forced to seek refuge. The regent, pressured by Law's enemies and fearing for his own rule, capitulated to the Parliament's demands to revoke the edict. Law offered his resignation, which the regent initially rejected, but a week later Orleans reversed the legislation reducing paper values. Investors scrambled to sell shares, causing prices to plummet to 4,000 livres. By month's end, Law was dismissed as controller general and placed under house arrest, fearing execution. Despite his dismissal, Law overcame his dread through gambling strategies-masking emotion and following a plan. Though publicly humiliated when the regent initially refused to see him, Law was secretly summoned to the Palais Royal that night. The regent, who had not truly abandoned Law's system, greeted him warmly and listened to his ideas. Within days, Law returned to high office as intendant general du commerce and managing director of the bank and Mississippi Company, shocking his adversaries. D'Argenson was dismissed, and the Paris brothers were banished. An investigation into the bank's accounts found no irregularities, though unauthorized notes had been discovered but concealed to protect the regent. In Paris, Law found hordes attempting to exchange banknotes for coins, with only 2% of money in circulation remaining as silver and gold. He implemented rationing, allowing only one 10-livre note per person to be exchanged. To restore stability, Law orchestrated public bonfires where thousands of shares and notes were burned in iron cages. At the bank, coin supplies couldn't keep pace despite copper coins being minted. On July 17, a crowd of 15,000 gathered outside the bank at 3 A.M., resulting in a deadly riot where dozens were crushed to death. Mobs carried bodies to the Palais Royal and attacked Law's carriage, forcing him to seek refuge. For protection, Law moved into the Palais Royal, remaining "white as a sheet" for weeks. Meanwhile, plague erupted in Marseille, eventually killing 100,000 people and devastating trade, dealing the final blow to Law's economic system. With the Mississippi Company foundering and the bank closed, Law's position became untenable. He resigned and repeatedly requested permission to leave France, but the regent delayed responding as pressure mounted from Law's enemies. Law departed Paris with his son on December 14, 1720, for his country estate at Guermande, planning to await passports to leave the country. Katherine and Kate remained in Paris to settle debts. Two days later, the Parlement was recalled, and the persecution of Law began in earnest. Law fled France on December 17, traveling incognito in Bourbon's carriages with his son, three valets, and guards. Despite careful planning, they were stopped at Valenciennes by d'Argenson's son, who confiscated Law's money and documents before eventually releasing him. In Brussels, Law's identity was quickly discovered, and he received a hero's welcome before continuing his journey across the treacherous winter Alps toward Italy. Law spent his final years in Venice, where he found solace in the city's beauty while facing mounting financial pressures from creditors. He began investing in art and dealing pictures, assembling a collection of nearly 500 works by masters like Titian, Raphael, and Leonardo. When Montesquieu visited in 1728, Law remained argumentative about his system's collapse, blaming it on the revocation of his decree dividing the notes. He fell ill with pneumonia in February 1729, and died on March 21 at age fifty-seven, having left his estate to Katherine in a deed of gift. With John Law's death, Europe could finally reflect on his meteoric rise and fall. He had arrived in France wealthy and charismatic, convinced he could revitalize the economy. In his own assessment, his failure stemmed not from flawed ideas but from his impatience: "I do not pretend that I have not made mistakes... If I could start again I would go more slowly but more carefully." Yet Law's fundamental blindspot was his idealism. In pursuing his economic utopia, he overlooked human nature-people's desire for easy wealth, their herd mentality, tendency to hoard when threatened, and propensity to panic when confidence wavers. These uncontrollable human traits, combined with establishment opposition and the plague's outbreak, ultimately caused his downfall. Despite the collapse of his paper-money system, Law's impact remained indelible. He created inflation that devalued Crown debt by two-thirds, relieving taxation pressure and leaving France with a viable economy. By democratizing share ownership, he planted seeds of financial equality that survived beyond the ancien regime. Three centuries later, in our age of credit cards and digital transactions, Law's vision has been achieved-but the same inherent weakness remains: financial systems based on credit still hinge entirely on public confidence.

★★★★★

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Temas principais em O Milionário

paper money revolution
speculative market bubbles
mathematical probability gambling
mississippi company collapse
early modern banking

Citações de O Milionário

Money's evolution had fascinated humans since ancient times.
Dueling, though officially condemned, was an unwritten badge of rank.
This humbling experience transformed Law's approach to gambling.

Personagens de O Milionário

John LawScottish gambler and financial innovator
William LawJohn's father, a successful goldsmith
Thomas NealeMaster of the Mint and notorious gambler
Edward WilsonMan killed by John Law in a fatal duel
Judge LovellThe judge who presided over Law's murder trial

Sobre o Autor

Janet Gleeson, autora best-seller de Millionaire: The Philanderer, Gambler, and Duelist Who Invented Modern Finance, é uma historiadora e especialista em arte renomada por tecer pesquisas meticulosas em narrativas envolventes. Nascida no Sri Lanka, filha de um plantador de chá, Gleeson possui graduações em história da arte e inglês.

Sua carreira abrange passagens pela Sotheby’s, Bonhams Auctioneers e Reed Books, onde foi pioneira nos guias Miller’s Antiques and Collectibles. Suas obras de não ficção, incluindo The Arcanum (um best-seller #1 do Sunday Times serializado na BBC Radio 4) e Privilege and Scandal, exploram momentos cruciais da história através de lentes biográficas vívidas.

Millionaire exemplifica seu talento para ligar inovações financeiras do passado — neste caso, as reformas econômicas de John Law no século XVIII — a crises modernas. Gleeson também escreve mistérios históricos aclamados, como The Grenadillo Box e The Thief Taker, misturando sua expertise em antiguidades com uma narrativa de suspense. Traduzidos para mais de uma dúzia de idiomas, seus livros venderam milhões em todo o mundo, consolidando sua reputação como uma mestre da narrativa histórica.

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Criado por ex-alunos da Universidade de Columbia em San Francisco

LOVED BY

1,000,000+ curious minds.

4.7

avg rating

1M+ learners

"Instead of endless scrolling, I just hit play on BeFreed. It saves me so much time."

@Moemenn

"I never knew where to start with nonfiction—BeFreed’s book lists turned into podcasts gave me a clear path."

@Chloe, Solo founder, LA

117

"Perfect balance between learning and entertainment. Finished ‘Thinking, Fast and Slow’ on my commute this week."

@Raaaaaachelw

"Crazy how much I learned while walking the dog. BeFreed = small habits → big gains."

@Matt, YC alum

108

"Reading used to feel like a chore. Now it’s just part of my lifestyle."

@Erin, Investment Banking Associate , NYC

254

"Feels effortless compared to reading. I’ve finished 6 books this month already."

@djmikemoore

"BeFreed turned my guilty doomscrolling into something that feels productive and inspiring."

@Pitiful

4.5K

"BeFreed turned my commute into learning time. 20-min podcasts are perfect for finishing books I never had time for."

@SofiaP

"BeFreed replaced my podcast queue. Imagine Spotify for books — that’s it. 🙌"

@Jaded_Falcon

201

"It is great for me to learn something from the book without reading it."

@OojasSalunke

"The themed book list podcasts help me connect ideas across authors—like a guided audio journey."

@Leo, Law Student, UPenn

483

"Makes me feel smarter every time before going to work"

@Cashflowbubu

"Instead of endless scrolling, I just hit play on BeFreed. It saves me so much time."

@Moemenn

"I never knew where to start with nonfiction—BeFreed’s book lists turned into podcasts gave me a clear path."

@Chloe, Solo founder, LA

117

"Perfect balance between learning and entertainment. Finished ‘Thinking, Fast and Slow’ on my commute this week."

@Raaaaaachelw

"Crazy how much I learned while walking the dog. BeFreed = small habits → big gains."

@Matt, YC alum

108

"Reading used to feel like a chore. Now it’s just part of my lifestyle."

@Erin, Investment Banking Associate , NYC

254

"Feels effortless compared to reading. I’ve finished 6 books this month already."

@djmikemoore

"BeFreed turned my guilty doomscrolling into something that feels productive and inspiring."

@Pitiful

4.5K

"BeFreed turned my commute into learning time. 20-min podcasts are perfect for finishing books I never had time for."

@SofiaP

"BeFreed replaced my podcast queue. Imagine Spotify for books — that’s it. 🙌"

@Jaded_Falcon

201

"It is great for me to learn something from the book without reading it."

@OojasSalunke

"The themed book list podcasts help me connect ideas across authors—like a guided audio journey."

@Leo, Law Student, UPenn

483

"Makes me feel smarter every time before going to work"

@Cashflowbubu

"Instead of endless scrolling, I just hit play on BeFreed. It saves me so much time."

@Moemenn

"I never knew where to start with nonfiction—BeFreed’s book lists turned into podcasts gave me a clear path."

@Chloe, Solo founder, LA

117

"Perfect balance between learning and entertainment. Finished ‘Thinking, Fast and Slow’ on my commute this week."

@Raaaaaachelw

"Crazy how much I learned while walking the dog. BeFreed = small habits → big gains."

@Matt, YC alum

108

"Reading used to feel like a chore. Now it’s just part of my lifestyle."

@Erin, Investment Banking Associate , NYC

254

"Feels effortless compared to reading. I’ve finished 6 books this month already."

@djmikemoore

"BeFreed turned my guilty doomscrolling into something that feels productive and inspiring."

@Pitiful

4.5K

"BeFreed turned my commute into learning time. 20-min podcasts are perfect for finishing books I never had time for."

@SofiaP

"BeFreed replaced my podcast queue. Imagine Spotify for books — that’s it. 🙌"

@Jaded_Falcon

201

"It is great for me to learn something from the book without reading it."

@OojasSalunke

"The themed book list podcasts help me connect ideas across authors—like a guided audio journey."

@Leo, Law Student, UPenn

483

"Makes me feel smarter every time before going to work"

@Cashflowbubu

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Comece sua jornada de aprendizado, agora

Capítulo 11

O Milionário

Visão GeralVisão geral de O Milionário

Um livro. Muitas maneiras de ouvi-lo.

The Alchemist of Paper Money: John Law's Financial Revolution

The Making of a Financial Genius

Veja cada palavra enquanto a ouve

The Duel That Changed Everything

European Wanderings and Financial Revelations

Aproveite ainda mais O Milionário

The Financial Visionary Emerges

The Opportunity of a Lifetime

Veja cada palavra enquanto a ouve

The Mississippi Company and Financial Revolution

The System Expands: Building an Empire

Aproveite ainda mais O Milionário

Millionaire Madness: The First Great Bubble

The Bubble Bursts: Descent into Chaos

Veja cada palavra enquanto a ouve

The Final Act: Exile and Legacy

Você chegou ao fim de O Milionário

Temas principais em O Milionário

Citações de O Milionário

Personagens de O Milionário

Sobre o Autor

Baixar resumo de O Milionário

Usuários também gostaram

Perguntas Frequentes Sobre Este Livro

What is Millionaire by Janet Gleeson about?

Who should read Millionaire by Janet Gleeson?

What were John Law’s key contributions to modern finance?

How did the term “millionaire” originate?

Parte de um plano de aprendizagem

history of stock market

Descubra mais

1,000,000+ curious minds.

1,000,000+ curious minds.

Um livro. Muitas maneiras de ouvi-lo.

The Alchemist of Paper Money: John Law's Financial Revolution

The Making of a Financial Genius

Veja cada palavra enquanto a ouve

The Duel That Changed Everything

European Wanderings and Financial Revelations

Aproveite ainda mais O Milionário

The Financial Visionary Emerges

The Opportunity of a Lifetime

Veja cada palavra enquanto a ouve

The Mississippi Company and Financial Revolution

The System Expands: Building an Empire

Aproveite ainda mais O Milionário

Millionaire Madness: The First Great Bubble

The Bubble Bursts: Descent into Chaos

Veja cada palavra enquanto a ouve

The Final Act: Exile and Legacy

Você chegou ao fim de O Milionário

Usuários também gostaram

Parte de um plano de aprendizagem

history of stock market

Descubra mais

Visão geral de O Milionário