1) Causes of FR from 1774 & events of 1789

Question 1

The First Estate

Answer 1

• RC Church clergy = 0.5% population, but Church owned 10% of French land
• Exempt from direct taxation, instead paid Don Gratuit
• Received tithes of 100m livres/year
• Moral basis of Bourbon absolutism

Question 2

The Second Estate

Answer 2

• Most powerful group
• 0.005% population, but owned 1/4 to 1/3 of French land
• owned 4,000 richest of 70,000 venal offices
• Right to feudal dues from peasants

Question 3

The Third Estate

Answer 3

• Urban bourgeoisie and rural peasantry (80%)
• Subject to burden of taxes: taille (land tax), capitation (poll tax), vingtieme (income tax), gabelle (salt tax), tithe (church tax)

Question 4

Why was it difficult to solve financial problems?

Answer 4

• Nobles/clergy exempt -> burden on Third Estate
• Tax-farming: Farmers-general paid a sum to the Crown and kept surplus as profit
• War of Austrian Succession (1740-48) cost 1Bn livres.
• 7 Years’ War cost 1.3Bn livres
• Interest on debt reached 50% by 1764

Question 5

What did Turgot find when he became Controller-General?

Answer 5

• Became Controller-General in 1774
• Louis’ “après moi le deluge” (‘It will be someone else’s problem when I die’)
• Found deficit of 37mn livres and debt of 235mn livres
• Balance sheets out of date
• Crown defaulted on debt

Question 6

What did Turgot aim to change?

Answer 6

• Reduce privilege generally
  ‘No bankruptcy, no increase in taxes, no borrowing’
• Free-market physiocrat, progressive
• 6 Edicts: abolish price controls, guilds, corvée
  BUT:
• Anti-privilege aims antagonised Marie Antoinette
• ‘Bread riots’ against end of price controls

Question 7

Necker aims

Answer 7

• 1776->1783
• Wanted to increase Crown’s chare of Farmed out tax
• Reduce 70,000 venal offices
• Compte Rendu, 1781: ‘creative accounting’, optimistic forecast (bestseller) obscuring financial problems
• 259mn livres in interest payments by 1786

Question 8

Calonne

Answer 8

• Traditional noble official
• Over 100mn livres debt
• Tried universal land tax, free trade (anti-guilds), sinking fund to pay off debt
• Called Assembly of Notables to avoid parlements’ resistance, but couldn’t agree
• Unpopular as ‘Monsieur Déficit’