20. Financial and economic policies and problems Flashcards
Revise
What were the main features of Napoleon’s taxation?
Inherited land tax from the Directory.
Collected tax on personal property such as servants and carriages.
Sought to collect more tax due tothe costs of war.
1807 official drew up a new cadastre (land register) to make tax fairer.
From 1803, towns and cities could levy tax on consumer goods.
Tax collectors were appointed for each department and were paid in proportion to the tax they collected. They were subject to inspection by central government
Due to war, any tax increases were offset by additional costs. Taxes on tobacco and salt quadrupled.
How did Napoleon tackle money supply?
Declared metal coinage was the only legal tender and refused honour agreements paid for in paper money.
In 1800 Napoleon established the Bank of France to provide credit for government and entrepreneurs. Its monetary control and control of government bonds meant it boosted the French economy and Napoleon could raise low-interest loans.
How did the Minister of the Interior, under Napoleon, lead to economic growth?
Established the Bureau of Statistics
Formed the Society of Encouragement for National Industry
Established Councils of Agriculture, Arts and Commerce in each department.
What was the economy like under Napoleon?
In 1812, it was suggested the wool industry had grown 400% and silk value had risen from 26 million francs to 64.
While some agriculture (France’s largest industry) had improved due to new innovation, much still remained in small farmers who’s farms got smaller as they had to be divided through sons. Furthermore farmer tenants were unwilling to improve farms due to rent increases.
Use of replacement crops to end reliance on Colonial trade eg coffee and tobacco were effective but only after 1815.
How did the War and Continental system impact France?
Lost labour to the army which reduced internal demand. Sold Louisiana however never raised enough money to match its expenses.
British blockades ruined French trade, especially with its colonies.
The Continental System introduced 1806/7 banned all trade with Britain, however backfired, as smuggling consistently got past French navy and deprived French producers of raw materials. Napoleon eventually allow some licensed trade with Britain to raise funds. Didn’t affect Britain due to British colonial trade.
How much did France actually change economically under Napoleon?
Limited demand due to the population being tied to agriculture.
Industrial work was unattractive due to ban on trade unions.
Limited interest in non-war expansion and the war caused a loss of markets.
Communication and roads were generally poor. Many farms were small and unprofitable.
What was the downturn of France?
Poor harvest of 1809, tightening of corruptions and severe debts and inflation left France in a poor economic situation, only made worse with the 1812 invasion of Russia.
