The reign of Louis XV occupies a pivotal yet paradoxical place in French history. Crowned amid great popular enthusiasm and affection, he was known as “The Beloved.” Yet, history has often judged him harshly, holding him responsible for the decline of the monarchy, fiscal crises, and foreign troubles that beset France in the 18th century. This article explores the complex legacy of Louis XV, the political turbulence during his minority under the regency of Philippe II, Duke of Orléans, and the revolutionary financial experiment of John Law that shaped France’s economic landscape.

The Ascension of Louis XV and Early Popularity

Louis XV ascended to the French throne in 1715, at the tender age of five, following the death of his great-grandfather, Louis XIV, the Sun King, who had ruled France for 72 years. The young king was greeted with widespread enthusiasm and affection from the French populace, earning his moniker “The Beloved.” This initial warmth reflected the hope that a new generation of monarchy would continue France’s grandeur.

However, Louis XV’s reign was marked by contradictions. While he enjoyed the people’s initial adulation, later generations would criticize him severely. He became the scapegoat for the collapse of absolute monarchy, the fiscal chaos that plagued the French treasury, and the foreign policy failures that foreshadowed revolutionary upheaval. Pierre Gaxotte, a renowned biographer, offered a more sympathetic view, arguing that Louis XV was not without greatness and cautioning against relying too heavily on the palace rumors and slanders that tarnished his reputation.

The Regency: Power in the Hands of the Duke of Orléans

Because Louis XV was a child at his accession, the kingdom was ruled by a regency council until he reached maturity, with Philippe II, Duke of Orléans, serving as regent from 1715 to 1723. This period was critical in shaping the future of the monarchy and marked a transitional phase between the absolutism of Louis XIV and the crises leading to the French Revolution.

### The Political Landscape of the Regency

The late king’s will had established a “Regency Council” chaired by the Duke of Orléans and composed of princes of the blood, including two of the king’s own illegitimate sons, known for their wisdom and self-restraint. However, the Duke of Orléans sought to consolidate power exclusively under his control, challenging the provisions of the will.

To neutralize opposition from the high courts and nobility, the regent agreed to restore the parlements’ “right of remonstrance”—a privilege that allowed judicial bodies to challenge royal edicts. This concession empowered the parlements, which harbored deep resentment toward the policies of Louis XIV and were natural allies to the nobility seeking to reclaim influence and privileges.

### The Noble Reaction and the “Noble Revolution”

The regent’s circle included influential nobles such as the Marquis de Saint-Simon, a hostile chronicler of the previous reign who advocated dismantling the ministerial and secretarial offices established by Louis XIV. Instead, governance shifted toward a collective “council” dominated by court nobles. This “multi-ministry” system restored power to the Versailles court favorites, many of whom had served as attendants to the late king.

The high nobility, aligned with the parlements, saw the regency as an opportunity for a “noble revolution.” They demanded restoration of their administrative and military privileges, including positions in the army and navy, as well as adjustments to taxes on peasants to reaffirm their social status. This conservative reform movement aimed to reverse the centralization and ministerial dominance cultivated by Louis XIV, setting the stage for ongoing political tension.

Financial Crisis and the Weight of Legacy

The regency inherited a dire financial situation. France’s budget for 1716 revealed a staggering imbalance: revenues amounted to about 70 million livres, while expenditures soared to 230 million livres. The majority of the expenses were interest payments on the enormous national debt, which exceeded 2.5 billion livres—a monumental burden left by the “Great King.”

The government’s lavish spending and the inflationary pressures sweeping Europe only exacerbated the fiscal crisis. The regency council sought quick remedies, including currency devaluation, investigations into corrupt officials, and the abolition of certain administrative and military posts. These measures, however, proved insufficient to restore stability.

John Law and the Financial Experiment: A Double-Edged Sword

In this climate of desperation, a Scottish financier named John Law offered a radical solution. Law proposed a financial system inspired by the English and Dutch models—establishing a bank that would issue paper money backed by gold and silver reserves to stimulate economic activity. His vision was to create a central bank that would facilitate credit, promote trade, and accelerate debt repayment.

### The Foundation of the Banque Générale and the Mississippi Company

With official sanction, Law founded the Banque Générale in 1716, a private institution with three-quarters of its capital loaned to the state. The bank quickly became profitable and soon expanded its operations to include colonial development ventures, such as the West India Company. This company was tasked with exploiting the resources of French Louisiana and the Mississippi Valley.

Law’s financial scheme included merging several trading companies—the East India Company, Senegal Company, Guinea Company, and Saint-Domingue Company—into a single powerful entity. This consolidation aimed to create a commercial empire that could generate the wealth necessary to service the national debt and invigorate the French economy.

### The Mississippi Bubble and Its Aftermath

Initially, Law’s system yielded spectacular profits and generated enthusiasm among investors and the public. However, the rapid expansion of paper money issuance without sufficient backing led to speculative frenzy—the infamous Mississippi Bubble. When confidence waned, the bubble burst in 1720, causing financial panic and widespread economic hardship.

The collapse undermined faith in the monarchy’s financial management and deepened public skepticism toward the regency and its policies. John Law fled France, and although the regency survived, the episode left a legacy of caution and mistrust around financial innovation.

Louis XV’s Personal Rule and the Twilight of Absolutism

Louis XV assumed full control of the government in 1723, ending the regency. His reign continued until 1774, spanning a period marked by increasing challenges to the absolute monarchy. By the time of his death, the monarchy was weakened, financially strained, and politically unstable—conditions that would culminate in the French Revolution fifteen years later.

### The Enlightenment and Political Turmoil

Louis XV ruled during the Enlightenment, a time of intellectual ferment and calls for reform. Philosophers like Voltaire and Rousseau questioned traditional authority and promoted ideas of liberty, equality, and popular sovereignty. The king was not a solitary figure acting above these currents; rather, he ruled within a dynamic European context characterized by upheaval and hope.

Despite occasional attempts at reform, Louis XV’s reign saw the erosion of royal authority, court intrigues, and factionalism. His inability or unwillingness to address the growing fiscal crisis and social discontent contributed to the monarchy’s decline.

### Legacy and Historical Assessment

Louis XV’s legacy is a study in contrasts. He began as a beloved monarch but ended as a symbol of royal decline. While some historians, including Pierre Gaxotte, defend his reign as having moments of greatness, the broader consensus associates his tenure with the gradual unraveling of the ancien régime.

The regency period under the Duke of Orléans and the financial experiments of John Law illustrate the complexities and challenges of governing France during this era. The tensions between old noble privileges, emerging financial capitalism, and royal authority foreshadowed the revolutionary transformations that would reshape France and the world.

Conclusion: The End of an Era and the Dawn of Revolution

The reign of Louis XV encapsulates the twilight of the French absolute monarchy. His early popularity and long tenure could not mask the systemic weaknesses exposed by fiscal crises, political factionalism, and social unrest. The regency’s attempts to restore noble power, combined with John Law’s ill-fated financial innovations, reflected a monarchy struggling to adapt to modern economic and political realities.

As Europe moved toward modernity, Louis XV’s France stood at a crossroads—caught between the fading glories of absolutism and the rising tide of revolutionary change. Understanding this period is essential for grasping the forces that led to the French Revolution and the transformation of France from a kingdom of privilege to a republic of rights.