Copper engraving on laid paper
Amsterdam, Zotte en Wyze, D. Onder de Linden, 1720
Copper engraving titled "DE ACTIEWERELD OP HAAR EINDE"
From the work: " Het groote Tafereel der Dwaasheid"
Large size engraving to the first stock market bubble, the so-called "South Sea Bubble" named after the world wide stock market fraud caused by John Law (1671-1729)
Sheet size: 32 x 40.5 cm
Plate size: 30 x 38.5 cm
In very fine condition

This present engraving is the most famous illustration from the above work about the first speculation and eventually caused financial crisis. It is therefore an important document of the financial capitalism in the early 18th Century: ‘“SOLANGE DER GIERIGE MENSCH GELD UND WAREN HAT, FINDET DER BETRÜGER IMMER SEINEN WEG, DENN DIE GIERIGEN UND NAIVEN FÜTTERN IHN!“ (from: „Het groote Tafereel der Dwaasheid")

The share prices of the company "Compagnie d'Occident" (also known as "Mississippi Company"), founded 1717 by Scotsman John Law (1671-1729), were driven in the air by land speculation for the exploitation of the French colonies in America, which is why Law printed constantly new shares and banknotes until the system finally collapsed in 1720, and France plunged into a severe economic crisis. When the stock market bubble exploded in 1719/1720 the shares were worthless and there was an international financial scandal.



The engraving is in very fine condition. A beautiful and very rich print. Only very minimally stained due to its age. Plate size: 30 x 38.5 cm. Sheet size: 32 x 40.5 cm.



Historical Background

When King Louis XIV died in 1715, the annual interest on the public debt was even already greater than the current revenues of the state in France. During this time, John Law had submitted some European courts to great sounding financing projects, but only France became interested. Law soon got permission to build a private credit bank, which was converted shortly afterwards into a state bank. The bank distributed ‘papers’ that should be covered by land and therefore can be replaced with metallic money. In 1718 Laws ‘papers’ were recognized as state paper money. Trade and commerce flourished in the subsequent period and the interest rates fell. Meanwhile, John Law had taken another establishment, the ‘Mississippi Company’. It aimed towards the colonization of the region along the Mississippi River. By May 1720, 500 ships were built or bought. There was a spirit of optimism and euphoria. In this situation the State helped himself with a bill printing press. The consequences were rising prices - not only for goods but also for stocks. The papers of Law's Mississippi Company increased in a few years from 500 to 18,000 Livres. But soon, the banks could no longer redeem the notes. Law was looking for a way out when the nominal value has been halved. The consequence was that all of France revolted and Law had to flee the country.