1701 - 1716
First paper money issuance in France
In particular by the Scottish banker Law, who went bankrupt in 1720. A first unfortunate experience of banknote issuance (the « billets de monnoye ») was conducted in France but remained limited. In 1716, the Banque Générale established by John Law issued on a larger scale paper money against gold, with the guarantee of the regent Philippe d'Orléans from 1718. Issuance of paper money very soon got out of hand and the bank was unable, with its gold reserves, to meet the increasing number of requests for conversion, which gave rise to a general panic, and finally went bankrupt in 1720.