Presentation on theme: "Louis XV comes of age. Fleury and Walpole. The Jacobite uprisings. The Bubbles. A time of Tartans and Stock Tips..."— Presentation transcript:
Louis XV comes of age. Fleury and Walpole. The Jacobite uprisings. The Bubbles. A time of Tartans and Stock Tips...
Our objectives are Judge for yourselfdid England or France handle the Bubble collapse appropriately? What were the policies of Fluery and Walpole regarding French-English relations? Identify the cause and persons behind the 1715 and 1745 revolts You will learn why the Scots were punished for their role in the revolts? Compare the Bubbles of the early 1700s with those that have occurred in recent times…
Louis XIV died in 1715. He was an old man for the time. Who inherited the French throne?
A Scottish financier named John Law traveled to France. He helped set up a French national bank, which was a good thing.
He also organized the Mississippi Company, which was a company that had a monopoly on trade in many French-controlled areas, including the Mississippi River Valley in North America.
This company then assumed the entire French government debt.
It was expected that all the profits would pay off the debt, and also make the investors money…
Law also planned to completely reform the French financial system. This was actually a good ideabut it was quickly thrown out when the Mississippi Company bubble burst.
To buy a share in this company would mean eventual great wealthas the profit potential was immense!
Thousands bought shares and then sold them quickly for an immense profit!
But, soon, the company failed to meet its profit expectations. Investors began to unload their shares.
The stock price plummeted. Thousands were ruined.
The French government had to step in and take back their debt, which had now grown to an immense amount.
In France, The aristocrats refused to bail out the government they felt the debt belonged to the king.
The debt continued to growand over years, it will be one of the long term causes of the French Revolution.
Bubble #2: The South Seas Bubble Walpole had warned about this scheme. Thousands lost their savings as had happened in France, BUTbig difference, the debt was considered a national debtthe nation stood behind this giant speculation scheme and absorbed the damage it did.
To cook the books means that accountants use false numbers to create a impression that the company is yielding a high rate of return.
You, too, can go to prison for over-valuing your company.
Back to politics…and the Great War of the 18 th Century...
Our objectives were: Judge for yourselfdid England or France handle the Bubble collapse appropriately? You learned the policies of Fluery and Walpole in keeping peace between the two countries Identify the cause and persons behind the 1715 and 1745 revolts You also learned how the Stuarts and the Scots were punished for their revolts. Compare the Bubbles of the early 1700s with those that have occurred in recent times…