Colbert's Economic Reforms

Question 1

How was money raised by tax reform?

Answer 1

• From 1658 to the mid 1660’s the tallie was reduced from 50 million livres a year to 32 million livres a year.
• In 1668 Colbert amalgamated all the tax collecting contracts into one syndicate called the United farms. Borrowed cheaply at 5% interest.
• Reduced fees taken by collectors of the tithe from 25% 3.75% of all tax paid.
• By 1672, indirect taxation increased from 36 million livres to 62 million livres.

Question 2

Evaluation of Tax Reform?

Answer 2

• Colbert was successful as he managed to borrow at a much cheaper rate. He was able to reduce the fees taken by the collectors. This prevented embezzlement from corrupt officials.

Question 3

How was money raised through Domestic Trade?

Answer 3

• Colbert had monks making cloth to boost domestic industry.
• The nobility refused to invest in business, so Colbert got Louis XIV to legislate in 1669.
• The Gobelins Tapestry and Savonnerie Carpet Business were encouraged by royal patronage.
• Colbert was heavily influenced by mercantilist ideas of the time.
• Colbert spent 600,000 livres on improving the roads. He also set up a French postal system.
• In 1666-7 he invested in the Canal du Midi. This permitted access through the medeterranian sea and the Atlantic without passing through the strait of Gilbaltar controlled by the Spanish.

Question 4

Was Domestic Trade successful?

Answer 4

• Successful and Unsuccessful.
• The Tariff Reform. The process of tolls was difficult and time consuming, but Colbert’s reform allowed for simpler and more efficient trade and in doing so, boosted the economy. There is also evidence that the Treasury profited from this.
• He was unsuccessful as in 1670, out of a budget of 70 million livres, only 500,000 livres were going towards economic development.
• He was also unsuccessful by withdrawing the low quality copper coinage that the peasants trade depended upon.
• Colbert failed to invest in agriculture.

Question 5

How did Colbert reduce government debt?

Answer 5

• The financiers were forced to write off 90 million livres of outstanding loans to the Government, and paid another 20 million livres in fines. 110 million livres were restored to the Crown by these measures.
• ## Using the Chambre de Justice, Colbert ordered the financiers to open their books and provide details of thier assets. Using this information, he forced the financiers to re-negotiate the lucrative loans provided to the government.

Question 6

Evaluation of measures to reduce government debt.

Answer 6

• Very successful.
• Financiers forced to write off 90 million livres’ worth of outstanding loans to the Government.
• 110 million livres were restored to the Crown.
• Tallie totalled 32 million livres, of which 24 million livres reached the Crown.

Question 7

How was money raised by Colbert using other reforms and initiatives?

Answer 7

• 13.5 million livres were collected by selling off salt tax farming contacts.

Question 8

Evaluation of other reforms and initiatives.

Answer 8

• Mostly unsuccessful.
• He had attempted to standardise the different weights and measures. e.g. 100 livres in Paris was 123.5 livres in Marsailles. Failed becuase resentful merchants argued that unnecessary changes would cause confusion.
• Colbert was not interested in farming and did little in terms of agricultural reform. Failed to realise that poverty striken peasants would create any demand for manufactured goods and such demand would be the first stimulus into expanding production.