Mississippi Trade Company Folds

After the early success with John Law's Bank and the Mississippi Trade Company the government bought the Bank and borrowed 1.5 billion livres from the Trade Company to pay mortgage on its huge national loans. These events brought a hausse to the French industry and the government lacked all restrains printing stockpiles of money without any security. When the overheated economy started to recycle with reality the shareholders of the trade company panicked driving both the Bank and the Trade Company into bankruptcy. As much of two years of collected tax money disappeared in the catastrophe and France thus was forced to declare bankruptcy in 1724.