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Rh his moral pusillanimity and his intellectual impotence, to aggravate still further the accumulated errors of ages and to prepare for the inevitable Revolution.

The 18th century, like the 17th, opened with a political coup d’état. Louis XV. was five years old, and the duke of Orleans held the regency. But Louis XIV. had in his will delegated all the power of the government to a council on which the duke of Maine, his legitimated

son, had the first, but Madame de Maintenon and the Jesuits the predominant place. This collective administration, designed to cripple the action of the regent, encountered a twofold opposition from the nobles and the parlement; but on the 2nd of September 1715 the emancipated parlement set aside the will in favour of the duke of Orleans, who thus together with the title of regent had all the real power. He therefore reinstituted the parlement in its ancient right of remonstrance (suspended since the declarations of 1667 and 1673), and handed over ministerial power to the nobility, replacing the secretaries of state by six councils composed in part of great nobles, on the advice of the famous duc de Saint-Simon. The duc de Noailles, president of the council of finance, had the direction of this “Polysynodie.”

The duke of Orleans, son of the princess palatine and Louis XIV.’s brother, possessed many gifts—courage, intelligence and agility of mind—but he lacked the one gift of using these to good advantage. The political crisis that had placed him in power had not put an end to

the financial crisis, and this, it was hoped, might be effected by substituting partial and petty bankruptcies for the general bankruptcy cynically advocated by Saint-Simon. The reduction of the royal revenues did not suffice to fill the treasury; while the establishment of a chamber of justice (March 1716) had no other result than that of demoralizing the great lords and ladies already mad for pleasure, by bringing them into contact with the farmers of the revenue who purchased impunity from them. A very clever Scotch adventurer named (q.v.) now offered his assistance in dealing with the enormous debt of more than three milliards, and in providing the treasury. Being well acquainted with the mechanism of banking, he had adopted views as to cash, credit and the circulation of values which contained an admixture of truth and falsehood. Authorized after many difficulties to organize a private bank of deposit and account, which being well conceived prospered and revived commerce, Law proposed to lighten the treasury by the profits accruing to a great maritime and colonial company. Payment for the shares in this new Company of the West, with a capital of a hundred millions, was to be made in credit notes upon the government, converted into 4% stock. These aggregated funds, needed to supply the immense and fertile valley of the Mississippi, and the annuities of the treasury destined to pay for the shares, were non-transferable. Law’s idea was to ask the bank for the floating capital necessary, so that the bank and the Company of the West were to be supplementary to each other; this is what was called Law’s system. After the chancellor D’Aguesseau and the duc de Noailles had been replaced by D’Argenson alone, and after the lit de justice of the 26th of August 1718 had deprived the parlement, hostile to Law, of the authority left to it, the bank became royal and the Company of the West universal. But the royal bank, as a state establishment, asked for compulsory privilege to increase the emission of its credit notes, and that they should receive a premium upon all metallic specie. The Company of the Indies became the grantee for the farming of tobacco, the coinage of metals, and farming in general; and in order to procure funds it multiplied the output of shares, which were adroitly launched and became more and more sought for on the exchange in the rue Quincampoix. This soon caused a frenzy of stock-jobbing, which disturbed the stability of private fortunes and social positions, and depraved customs and manners with the seductive notion of easily obtained riches. The nomination of Law to the controller-generalship, re-established for his benefit on the resignation of D’Argenson (January 5, 1720), let loose still wilder speculation; till the day came when he could no longer face the terrible difficulty of meeting both private irredeemable shares with a variable return, and the credit notes redeemable at sight and guaranteed by the state. Gold and silver were proscribed; the bank and the company were joined in one; the credit notes and the shares were assimilated. But credit cannot be commanded either by violence or by expedients; between July and September 1720 came the suspension of payments, the flight of Law, and the disastrous liquidation which proved once again that respect for the state’s obligations had not yet entered into the law of public finance.

Reaction on a no less extensive scale characterized foreign policy during the Regency. A close alliance between France and her ancient enemies, England and Holland, was concluded and maintained from 1717 to 1739: France, after thirty years of fighting, between two periods of

bankruptcy; Holland reinstalled in her commercial position; and England, seeing before her the beginning of her empire over the seas—all three had an interest in peace. On the other hand, peace was imperilled by Philip V. of Spain and by the emperor (who had accepted the portion assigned to them by the treaty of Utrecht, while claiming the whole), by Savoy and Brandenburg (who had profited too much by European conflicts not to desire their perpetuation), by the crisis from which the maritime powers of the Baltic were suffering, and by the Turks on the Danube. The dream of Cardinal Alberoni, Philip V.’s minister, was to set fire to all this inflammable material in order to snatch therefrom a crown of some sort to satisfy the maternal greed of Elizabeth Farnese; and this he might have attained by the occupation of Sardinia and the expedition to Sicily (1717–1718), if Dubois, a priest without a religion, a greedy parvenu and a diplomatist of second rank, though tenacious and full of resources as a minister, had not placed his common sense at the disposal of the regent’s interests and those of European peace. He signed the triple alliance at the Hague, succeeding with the assistance of Stanhope, the English minister, in engaging the emperor therein, after attempting this for a year and a half. Whilst the Spanish fleet was destroyed before Syracuse by Admiral Byng, the intrigue of the Spanish ambassador Cellamare with the duke of Maine to exclude the family of Orleans from the succession on Louis XV.’s death was discovered and repressed; and Marshal Berwick burned the dockyards at Pasajes in Spain. Alberoni’s dream was shattered by the treaty of London in 1720.

Seized in his turn with a longing for the cardinal’s hat, Dubois paid for it by the registering of the bull Unigenitus and by the persecution of the Jansenists which the regent had stopped. After the majority of Louis XV. had been proclaimed on the 16th of February 1723, Dubois was the first to depart; and four months after his disappearance the duke of Orleans, exhausted by his excesses, carried with him into the grave that spirit of reform which he had compromised by his frivolous voluptuousness (December 2, 1723).

The Regency had been the making of the house of Orleans; thenceforward the question was how to humble it, and the duc de Bourbon, now prime minister—a great-grandson of the great Condé, but a narrow-minded man of limited intelligence, led by a worthless woman—set

himself to do so. The marquise de Prie was the first of a series of publicly recognized mistresses; from 1723 to 1726 she directed foreign policy and internal affairs despite the king’s majority, moved always more by a spirit of vengeance than by ambition. This sad pair were dominated by the self-interested and continual fear of becoming subject to the son of the Regent, whom they detested; but danger came upon them from elsewhere. They found standing in their way the very man who had been the author of their fortunes, Louis XV.’s tutor, uneasy in the exercise of a veiled authority; for the churchman Fleury knew how to wait, on condition of ultimately attaining his end. Neither the festivities given at Chantilly in honour of the king, nor the dismissal (despite the most solemn promises) of the Spanish infanta, who had been betrothed