Chapter 20 - Financial And Ecomonic Policies And Problems Flashcards
Why did N have to maintain high level of taxation?
Costs of war
What taxes were carried on from before?
Contribution foncière - land tax
Custom duties
Fees for registrations + services
What did N officials start drawing up in 1807?
New Cadastre
What did the cadastre do?
Measured the value of land to recalculate land tax
Only 1/5 of country assessed by 1815
What were towns and cities allowed to enforce in 1803?
Octrois
How were tax collectors + inspectors assessed?
Paid in proportion to the taxes they collected
Tax receipts passed onto receivers
Inspected by central govt
What was the central office for handling and auditing the states finances?
Cour des Comptes
Kept detailed accounts of income + expenditure
Had to authorise release of money
What did the govt rely on the most heavily?
Indirect taxes
Like on playing cards, alcohol, salt and tobacco all x4
What did N declare the only legal tender would be?
Metal coinage
What was established in 1800?
Bank of France
To provide credit for govt + entrepreneurs
What was the small issue of paper money limited to?
Use in Paris
500 - 1000 franc notes
Only for merchants
What else did N control?
Sale of govt bonds at reasonable interest
What did the new Minister of the Interior Chaptal add to help the economy?
Bureau of Statistics - gain info on pop, agriculture + commerce
What society did he create?
Société d’encouragement pour l’industrie National - society giving prizes for commerce
What did he establish in every department?
Councils for agriculture, arts + commerce
What did Chaptal’s encouragement increase?
Mechanisation + technical innovation
Mass production of consumer goods
What did his report of that year say?
Wool industry - increase by 400%
Silk value increase by 64 million
What was the largest sector of the French economy?
Agriculture
How did some regions improve?
Large landowners developed their estates
New ideas of crops + animal breeding + scientific farming
What did most of France still stay with?
Peasant farmers who could barely support their own needs
New civil code = more divided land
Scared to improve for rent increases
Why did the govt try to encourage growth of ‘replacement crops’?
Avoid dependence on colonial production which was disrupted by war
What were replacement crops?
Cotton
Dyes
Tobacco
Sugar
Who were ordered to make sure there was enough land set aside for these?
Prefects
What was prohibited to stimulate sugar beet industry?
Imports on sugar cane
What did they now export that they before had to import?
Butter, cheese + vegetable oils
What were the opportunity costs of war on trade?
Peacetime industry investment
Labour
How did N pay for the wars?
Tightened taxation
Soldiers had low wages
Loans
Selling land taking from conquered territory
What part of land did N sell?
Louisiana
Got 50 million francs
Cancelled 18 million francs worth of debt
Where did trade with France move with?
Less Atlantic + overseas
More F allies + conquered territories in Europe
What did the British effect?
Maritime commerce
Reduced trade passing through Marseilles
When were B good banned from F?
From 1793
What was the continental blockade that N introduced called?
Continental system
What did the continental blockade do?
Banned all F trade with B
Insisted F allies + neutral countries follow suit
Or be treated as F enemies
What did this intensify?
Economic warfare
What did N aim to do?
Weaken B + force it to sue for peace
Get Atlantic trade back
Increase trade by filling B gap
Why did the continental system fail?
F Navy couldn’t hold onto coastlines
Not strong enough to uphold it
Smuggling thrived
Who smuggled and did illegal practices?
Gendarmes
What did they do?
Contrabande - illegal goods
Fraude - not paying duties
What was the B counter-action?
Depriving F of raw materials
What were left in short supply?
Sugar
Coffee
Coats
Shoes
What was N forced to allow?
Some licensed trade with B to raise funds
What made up for the loss of selling in Europe for B?
Trade with North + South America
Why was most of the population limited to economic change?
Still tied to farming
Heavily taxed
Low standard of living
Why was industrial work unattractive?
Workers restrained by livret
Ban on trade unions
Living conditions in towns and cities were poor
Joining army more attractive to people wanting advancement
Where was there only an incentive to expand?
In war based industries
Others had loss of markets in wars
What was the change in attitude with the bourgeois?
No desire to invest in industry or trade
Satisfied with biens nationaux
To trade was looked down on
What still remained poor in this period?
Communications
Only some new roads for military built
What gave farmers little incentive to change practices?
State control of prices and food
But did prevent food riots
Why by 1810 was F in severe debt?
1806 - expenditure outstripped income
1809 - poor harvest + banking crisis
