1.10 Economy and finance 1685+ Flashcards
what created burdens on finance from 1685-1715
- war prompted short term financial policies that were counterproductive
- there was agricultural depression, depopulation and manufacturing decline
describe the change in efficiency of the taille from 1685-1715
- embezzlement and tax evasion were common
- by 1708 tax farms brought in just over half the income of the late 1680s
- by 1709 tax farms were under 2/3rds their ordinary value
- declining tax farm profitability and the inefficient tailled had a debalitating effect on royal finances
how did the way that pontchartrain and chamillart address declining tax yields make the situation worse?
- the capitation and dixieme made little headway as they faced such large degrees of opposition
- they resorted to the selling of new offices which resulted in 70000-80000 officiers by 1709, all of whom were tax exempt
- short term gain but long term pain
- thye increasingly used high interest loans and bonds to secure investments
what was going on with the textile industry?
- wool production greatly fell with an increase of demand and prices
- Flanders, Champagne and Picardy saw wool production fall
- production disappeared from Menin altogether
- Reims saw a 50% drop in looms from 1686
- Colbert’s gobelins shut from 1694 till the end of the 9 years war due to no demand for luxury goods
- emigration of huguenot labour affected manufacturing
- Lyon lost 75% of silk workers by 1702
describe le peletier
- succeeded Colbert
- not dominant though, Louvois was
- increased persecution of Huguenots, decreasing skilled French labour
- there was mounting public deficits and debt so he devalued the currency, sold more offices and created tax exemptions
what was le peletier’s dates?
1683-9
what was Pontchartrain’s dates?
1689-99
describe Pontchartrain
- took over from le peletier
- handled the French navy when it suffered big defeats
- conducted a census of the population, first since Vauban’s 1678 one
- introduced the capitation in 1695
- suffered chronic evasion of tax
what was the capitation
a form of progressive poll tax that divided French society into different ranks based on their ability to pay and charged more per head accordingly
what are Chamillart’s dates
1699-1708
describe Chamillart’s failures
- he always faced difficult circumstances
- deficit amounted to more than 53 million livres
- the credit of the state was allmost exhausted
- lacked the intelligence and energy necessary for the situation
- couldn’t accomodate Louis’ war desires or economic reforms
- sold offices, debased coinage (5 times in 6 years), reduced the rate of interest on state debts, increased taxation
- tried to force into circulation paper money with disastrous results
- in 1706 state debts amounted to 288 million livres
- he resigned from his office because of how difficult it was
describe Chamillart’s strengths
- in 1700 he tried to improve the condition of trade in the country by creating the council of commerce
- it consulted merchants rather than dictate to them and embraced principles of free trade
- it slowly moved France away from mercantilism
describe Desmarets
- nephew of Colbert
- became director of finances in 1703
- undertook several policies to restore France’s financial status
- postponed repayment of loans, secured lower interest rates, created a royal lottery, devalued metal currency and instituted a 10% tax on income produced by property ownership in 1710
- he was working on a method for repaying France’s debts when Louis died in 1715
what’s wilkinson’s take on the ministers after Colbert?
With the exception of Chamillart, all the controller general/finance ministers were actually really impressive with dealing with the situation. Colbert’s policies seemed so much stronger because he was working in a time of peace, all the rest had to deal with overwhelming, crippling debt and pressure from wars. Basically, nothing that they could have done would have counted as a success. They were sort of in the same position as the regency government at the beginning of Louis’ reign, war, debt, fragile state etc.
what wars were going on that placed stress on the economy and finance
- the nine years war 1688-1697
- the war of spanish succession 1702-1713
- kind of ended in a stalemate
- pretty much of a defeat for the French
how did the economic approach of ministers post-1685 compare to that of Colbert
- later ministers made no attempt to improve infrastructure or trade
- Colbert was working in a time of peace and prosperity for the French crown but later ministers suffered mounting debts from war and discontent
what are some statistics to show labour decline after 1685?
- 4,500 Huguenots emigrated to England because of the dire state of weaving in Normandy
- Lyon lost 75% of its silk workers by 1702
- The Gobelins shut in 1694 till the end of the 9 years war
- wool manufacturing was hit by tariffs during the nine years war
what are some stats to show the burden of finances post-1685?
wars consumed much of expenditure
- 22 of the last 30 years of Louis’ reign were dominated by wars
- 54% of expenditure was towards wars in the 1680s
the taille was increasingly expensive and inefficient
- the 18 million livres gained in 1712 couldn’t even meet 10% of annual government expenses
- failure of the capitation and dixieme
tax farm income decreased in the 1700s because of farm mismanagement
- in 1708 they brought in half the income of the 1680s
- embezzlement and corruption of fermiers
