Chapter 20 Financial and economic policies and problems Flashcards
Continuity in terms of taxation ?
Napoleon continued a high level of taxation, contribution fonciere and contribution mobiliere from the Directory
How did Napoleon sought to make the tax system fairer
1807-“cadastre” (land register)
Evaluation of the cadastre
was to complicated to be practical
20% had been assessed by 1815
proved to be a disincentive for farmers to invest into capital such as machines
How did Napoleon tackle geographical differences and rural poverty
1803 - “octroi”
levy on consumer goods entering a department, source of revenue for the local authority
How was tax collection organised?
Tax collectors appointed (similar to the Ancien Regime tax farmer-“ferme generale”)
payed in proportion of the tax they collected - perverse incentive?
Which body was established to oversea tax collection? (not the bank of france)
Cour des Comptes in 1807
Evaluation of all tax policies
Constant warfare offset any gains-government relied on indirect taxes-regressive nature
How did Napoleon tackle Inflation?
declared metal coinage the only legal tender backed by gold
When did Napoleon establish the Bank of France
1800
What was the Bank of France important for?
Provided credit for the public and private sector
Low-interest loans for Napoleon
Who was Napoleon’s first minister of the interior?
Jean-Antoine Chaptal 1800-04
Chaptal’s reforms
- established the Bureau of Statistics
- Societies and councils to promote the French economy
- encouraged mechanisation and mass production of consumer goods
Napoleon’s view on industry
Traditionalist, interested in luxury goods
Example for industrial advancement
wool industry increased its yield by 400%
Example for industrial advancement
wool industry increased its yield by 400%
Problems in the agricultural sector
80% of population lived in rural areas
Small estates being divided up below self-sufficiency (Civil Code)
No or little mechanisation
No capital investment (cadastre)
Example for failed financial policy
“replacement crops” in 1813
How did Napoleon pay for the war
tightening taxation
Sale of Louisiana 1803
loans
Effect of the British blockade on France
trade moved away from overseas territories to continental Europe
However
mixed situation in France Le Havre and Rouen suffered, Strasbourg and Bordeaux not so much
When did Napoleon establish the Continental system?
1806
What was Napoleon’s aim with the continental system?
Get Atlantic trade back
Increase French trade and production
Why did the continental system fail?
French Navy was to weak
British retaliation
Smuggling thrived
Napoleon allowed some licensed trade from 1810 on
What limited the degree of economic change?
Limited demand-rural population was living in poverty
Industrial work was unattractive (restrained by the livret)
Limited incentive for expansion other than in the armament industry
Infrastructural problems
No rich capitalist class- no investment
