Chapter 3 Flashcards

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1
Q

What was the extend of french debt by Louis XIV’s death?
How was this increasing?
What could french debt be described as?

A

2 billion livres
Annual interest payments
Balance of payments crisis

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2
Q

What wars was France involved in?
What did this add to?

A

Wars of the Austrian succession (1740-8)
7 years war (1756-63)
American war of independence

Debt

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3
Q

What did France loose in the 7 years war settlement?

A

Colonies in North America

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4
Q

Why can France’s involvement in the American war of independence be considered negative?

A

Little gain
Treaty of Paris 1783
Expensive: debt = 3.3 billion by 1783
Louis XVI entered during financial crisis

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5
Q

Why was France’s financial position weak at the ascension of Louis XVI?

A

Louis XV spendthrift & failed to produce effective financial reform

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6
Q

Why did the gov have to rely on loans?
What was negative about this?
When we’re loans most necessary?

A

Inefficiency of direct & indirect taxes
Interest to be payed
During war

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7
Q

What were direct & indirect taxes?
What were alternates to these?
When were alternates used?

A

What finances the gov
Loans
To meet the short falls

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8
Q

What taxes did Louis XIV & XV introduce for war?

A

For everyone:
Capitation
Vingtieme

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9
Q

What was the capitation tax?

A

Direct poll tax
For everyone but clergy payed don gratuit instead & 2nd estate payments varied on tax class (22)

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10
Q

What was the vingtieme tax?

A

Direct tax
5% of earnings from land, property, commerce, industry & offices
Clergy win exemption
Pays d’etats won reduced rates

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11
Q

What we’re the 1st & 2nd estate privileges?
What is an example of this?

A

Reduced taxable income

Church annual don gratuit not representative of lands wealth as self calculated

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12
Q

What was the main direct tax?

A

Taille personnelle
An estimated annual value of possessions

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13
Q

Who collected indirect taxes?
What were indirect taxes on?
What was wrong with the indirect tax system?

A

Tax farmers
Goods & services

Accounting corruption
No central treasury
Financial officials purchased positions & kept some of what they collected (at no estimate of what should be there bc of disorganisation)

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14
Q

How was France’s economy thriving?

A

Rapid population growth (late 1780s = 27 mill)
Politically stable, United
Landowners prosperity
Improved agricultural techniques from 1730s (crop rotation, fertilisers)
Trade with colonies X4

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15
Q

What we’re the problems of France’s economy?

A

Economy mainly agricultural: Farming lands % between sons reduced self-sufficiency
Food shortage as population increased
Internal trade barriers
Units and measures not standardised: ample opp for fraud
Industry less mechanised than Britain

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16
Q

When was the vintage failure?
Shawn were the harvest failures & bad winters?
What did this cause?

A

1778
1785-9
Trade slump caused lay offs during time of high bred prices

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17
Q

What we’re some of the indirect taxes?

A

Gabelle (salt)
Tabac (tabacco)
Aides (consumption tax on consumer goods)
Domaine (crown lands)
Triate (customs duty)
Timbre (stamp)

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18
Q

When was Turgot the finance minister (controller general)?
Why was he needed?

A

1774-6
Louis needed to reform royal finances to maintain and effective absolute monarchy
Known for his reforming ideas

19
Q

How did Turgot attempt to get an efficient economy?

A

Through a freer system
Replacing crown revenue, privileges & customs duties

20
Q

What did Turgot achieve?

A

Overall, reduced deficit
Cut royal expenses
Gov departments expenses analysed to find ways to reduce expenditure
Removal/reduction of some pensions
Increased efficiency of farming system through tax reforms

21
Q

Which financial minister opposed involvement in the American war?
Why?

A

Turgot
Costly

22
Q

What we’re the main reform failures of Turgot?

A

Attempt to replace many indirect taxes with. Property tax opposed by 2nd estate

1774- abandoned attempt to establish free grain trade

Six Edicts, 1776

23
Q

What we’re the 6 Edicts?

A

Abolish privileges & tax all
Man to work without restriction.

24
Q

What edicts of the 6 edicts were opposed?

A

5: suppressed guilds
6: abolished corvée

25
Q

When were the 6 edicts registered?
What was needed to achieve this?
Why were the 6 edicts abandoned?

A

March 1776
Lit de justice
Offended wife range of people (Marie Antoinette)

26
Q

When was Turgot ordered to resign?
Why?

A

May 1776
6 edicts offended many

27
Q

When was Necker the finance minister?
Why was he called director-general?

A

1777-8
As a Protestant not Catholic and the post included some Catholicism

28
Q

Why was there a gap between Turgot & Necker’s appointments?

A

Louis couldn’t find a suitable replacement

29
Q

How did necker continue Turgot’s work?

A

Reduced royal household expenses
Removed vingtieme on industry

30
Q

How was corruption reduced in gov finance system?

A

Reform of royal accounting system
Tax-farmers 60–>40

31
Q

Who reformed venality (good)?
How did this cause problems?

A

Necker
Removal of venal officers who lent money to crown

32
Q

What was necker’s 1781 budget statement?
What was the aim of this?
Who did it put him at odds with?

A

Summary of royal expenditure & income

100,000 copies sold in weeks
Encourage public debate

King & most courtiers

33
Q

Why was necker’s budget statement inaccurate?

A

To raise loans instead of needing more taxes
French surplus of 10 mill rather than debt to suggest a stronger financial position

34
Q

Who was Necker popular with?
Why?

A

Ordinary population
Attacks in vested interest
Successful war with America without raising taxes

35
Q

Who was Necker unpopular with?
Why?

A

Enemies at court, esp Marie Antoinette
Suggested equality of taxation (effects Parlements )

36
Q

When did Necker resign?

A

1781

37
Q

When was Calonne controller general?

A

1783-87

38
Q

How was Calonne more of a traditionalist?
Who’s restructuring reforms had Calonne opposed?

A

Supported pensions
No attempts seen to tackle ancien regime inconsistencies

Necker’s

39
Q

When did Calonne produce a reform package?
Why?

A

1786
Paris Parlement less likely to endorse borrowing loans
Loans drying up

40
Q

Calonne largely used ideas if his predecessors, what were these?
What were all these changes?

A

General land tax & survey & evaluation of land holdings (abolition of remaining vingtiemes)
Indirect tax in legal documents
Removal of internal customs barriers

Major

41
Q

Who backed Calonne’s changes?
Who opposed them?
Why?
What did this cause?

A

Louis persuaded to
Ministers
Hit hierarchy of ancien regime
A political deadlock

42
Q

What was called to overcome the political deadlock over calonnes measures?

A

Assembly of Notables

43
Q

How many finance ministers did Louis have between July 1774-1789?

A

12