From its founding, the French intended New Orleans to be an important colonial city. The city was named in honor of the then Regent of France, Philip II, Duke of Orléans. The regent allowed Scottish economist John Law to create a private bank and a financing scheme that succeeded in increasing the colonial population of New Orleans and other areas of Louisiana. The scheme, however, created an investment bubble that burst at the end of 1720. Law's Mississippi Company collapsed, stopping the flow of investment money to New Orleans. Nonetheless, in 1722, New Orleans was made the capital of French Louisiana, replacing Biloxi in that role.