Chapter 3: Economic Problems And Royal Finance Flashcards
How had war made France’s debt so bad?
1743-83 France at war for 20 years: Austrian war of Succession, Seven Years War, American War of Independence
Led to large scale loans (interest increasing)
How had (reliance on) tax made France’s debt so bad?
Many exempt from paying taxes
Tax collection chaotic and not effective
French resources locked up by system of gov. and organisation at ancien regime
How had the economy made France’s debt so bad?
Internal customs barriers prevented economic growth
Trade reduced as merchants and traders buy an office and abandon trade
Tax collectors couldn’t be dismissed if corrupt as bought their positions
What were Controller-General Turgot’s attempts to Freeform finances?
Introduced economic reforms
Reduced number of gov. officials
Reasons for Turgot’s failure
Proposed single land tax was rejected
Most land owned by mostly non tax paying 1st and 2nd estate who wouldn’t support proposal
What were Controller-General Necker’s attempts to Freeform finances?
Tried to continue Turgot methods
Censors true amount of debt to get people to start paying taxes
Reveals amount spent on courtiers
Reasons for Necker’s failure
makes opponents with courtiers as seen as unfairness and lack of privacy
Poor harvests with increased population
Decline in manufacturing positions => more unemployment rates
What were Controller-General Calonne’s attempts to Freeform finances?
Beginning- seeks more loans
Single land tax payed by everyone
Removed customs barriers
Only thing he could do was ask for more loans
Reasons for Calonne’s failure
Parliament refuses loans
Single land tax receives backlash from clergy and parlaments as they would have to pay too
How did Louis XVI’s failed financial ministers mean he was to blame for the revolution?
Backed out of supporting 3 financial ministers
Looked weak and indecisive
How did Louis XVI’s failed support from nobles mean he was to blame for the revolution?
They didn’t support plans to aid France’s financial recovery
What problems did Calonne’s face after he became Controller-General in 178
Nothing to do but seek more loans
1784-85 credit began to dry up and Paris parlement refused to register any more loans
1786 annual deficit over 100 livres
What did Calonne do to help?
Replace capitation and vingtieme with single land tax- no exception
Abolished control on grain trade
Abolished internal customs barriers
Restore national confidence for short term loans and parlement allowing new measures…
…needed support…
…used the Assembly of Notables (handpicked by king)
