Economic problems and finance Flashcards

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1
Q

Strengths of the French economy in 1780s:
Population change

A

21.5 million 1700 -> 27 million in 1780s
3x population of GB

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2
Q

Strengths of the French economy in 1780s:
Commerce

A

1715 -> 1771 commerce improved by almost eightfold
France 2nd to GB in trade
Bordeaux thrived on handling goods to and from Spain

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3
Q

Strengths of the French economy in 1780s:
Transport

A

1760- 1000km trip from Paris to Toulous took 15 days
1780s- Same trip took 8 days
Industrial production 2x between 1715 and 1771
27 new factories

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4
Q

Weaknesses of the French economy in 1780s:
Land

A

Divided due to inheritance, seigneurial arrangements
-Hard to control

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5
Q

Weaknesses of the French economy in 1780s:
Trading

A

25,000 units of measure in France before 1789
Lacked network of rivers and canals to carry goods
-Expenses for shipping, land movement of goods took a while

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6
Q

Weaknesses of the French economy in 1780s:
Banking System

A

Not advanced
-Borrowing schemes collapsed
Downturn in 1770s
-Bad winters from 1785-9 depressed peasant incomes
-July 1788 hailstorm destroyed crops
-Worst harvest in 40 years
Layoffs in industry at a time of rising prices
Banks had a fear of paper notes as they could be forged

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7
Q

Direct taxation- Who did it effect, what was it on, who was it collected by, examples.

A

Who did it effect?
Third Estate (supposed to be all but First Estate easily evaded these)
What was it on?
Individuals and their income
Who collected it?
Royal officials
Examples:
The taille
-Brought in 20 million livres a year
-Introduced to pay for the Seven Years War
-Calculated according to value of property and income received
Capitation
-Introduced in 1695 to pay for War
-Clergy didn’t have to pay this
Vingtième
-Introduced to offset the costs of France’s imperial Wars
-1/20th of annual income
-Came and went due to different wars but stayed during Louis XVI’s time because they didn’t have enough money despite opposition from the public.

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8
Q

Indirect taxation- Who did it effect, what was it on, who was it collected by, examples.

A

Who did it effect?
Everyone
What was it on?
Paid on duties and goods
Who was it collected by?
Tax farmers
Examples:
Gabelle-
Salt (essential for French life) tax
Applied to all salt purchases, private or commercial
Varied from place to place- half a livre in Paris per pound, exempt in other provinces in South and East
Raised 55 million livres a year
Aide
-Wine
Tabac
-Tobacco
Octroi
-Municipal tariff on goods entering large cities e.g Paris.

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9
Q

Tax farmers corruption

A

40 fermiers-généraux (tax farmers)
Collected taxes on behalf of the government
Some made several million livres a year- wealthiest groups in France
As they were corrupt and avaricious they were blamed for the financial woes in Frances.

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10
Q

How did France help America?

A

Benjamin Franklin was enthusiastically received
French supplied aid in secret from early 1776 when Pierre Beaumarchais was authorised to sell gunpowder and ammunition to the Americans
By 1777, over 5 million lives of aid had been sent

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11
Q

Who was Turgot?

A

Friends with philosophers like Pierre-Samuel who held similar physiocrats’ schools of thought.
Entered a career in the royal administration in later 1751.

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12
Q

When was Turgot a controller general?

A

1774-6

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13
Q

What were Turgot’s six edicts? What else did he introduce?

A

Introduced in 1776
Cuts to royal expenses
Demand that government departments submit their expenses to the Controller-General (to find ways to reduce spending)
Removal of several pensions
Reform of the tax-farming system to increase efficiency
Abolishing the corvee
He disliked their involvement in the American Revolutionary War

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14
Q

Results of Turgot’s reforms

A

Reduced the deficit
Negotiated a low-interest loan of 4% with some Dutch Bankers in 1776

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15
Q

Opposition to Turgot

A

Several of his proposals were abandoned
Replacing indirect taxes with land tax (opposed by second estate nobles)
1774 attempt to establish free trade in grain, abandoned after the poor harvest of 1774
1776 six edicts-
5th opposed the guilds, 6th abolished the corvee
Offended Marie Antionette’s favourite people.

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16
Q

When was Turgot fired?

A

May 1776, most likely in response to the edicts

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17
Q

Who was Necker?

A

Banker and director of the French East India company.
Wealthy
Protestants, therefore never named controller general- named Director-General of Finances

18
Q

Necker’s aims

A

Similar to the cost-cutting measures seen in Turgot’s time:
Reducing royal expenses and pensions
Appointing salaried officials rather than venal cooperations to run royal estates
Removing the vingteme on industry
Make the royal accounting system more professional

19
Q

What did Necker change?

A

Restructured financial administration
Reduced tax farmers from 60-40
Abolished 48 posts of receivers-general, replacing them with 12 salaried officials

20
Q

Results of Necker’s changes

A

Reduced corruption
Hit veniality

21
Q

Publishing of the Compte Rendu au Roi

A

1781
Within weeks, 100,000 copies had been sold
Inaccurate, disguised high-interest payments as normal expenditure, predicted a surplus of 10 million lives, and ignored war debt.

22
Q

Why was Necker poplar with the public, not the nobility?

A

Attacked their vested interests
Involved France in a successful war without raising any taxes
However, Marie-Antionette helped bring around Necker’s resignation

23
Q

When did Necker resign?

A

1781

24
Q

When was Brianne controller general?

A

1788-90

25
Q

Brienne’s backround

A

Aristocrat who joined the clergy and quickly rose through the ranks, Archbishop of Toulouse in 1763
Opposed Calonne in the Assembly of Notables
Last great reforming ministry of the ancient regime

26
Q

Brienne’s backround

A

Aristocrat who joined the clergy and quickly rose through the ranks, Archbishop of Toulouse in 1763
Opposed Calonne in the Assembly of Notables
Last great reforming ministry of the ancient regime

27
Q

Brienne’s reforms

A

Based on those of his predecessors
Changes of the army
Administration of the royal domain
Central government
Tolerance of protestants
Deregulated grain trade
Change the corvee royale into a tax
Extended provincial assemblies
Attempt to carry through Calonne’s land tax which failed as it was too challenging to the king

28
Q

Dismissing the assembly of notables (Brienne’s)

A

Challenged the king too much and dismissed in May 1787
Assembly called for Estates General and ‘no taxation without representation’

29
Q

What did Brienne resort to?

A

A loan

30
Q

Notables against Brienne

A

‘No taxation without representation’
(Revolutionary chant from the american revolution)
Publishing of accounts- Necker said that the economy was in a positive state in the Compte de rendu au roi, but now Calonne is saying it isn’t so Brienne is taking the blame for it.

31
Q

When was Calonne controller general?

A

1783-7

32
Q

Who was Calonne?

A

Traditionalist
Opposed Necker

33
Q

Why did Calonne propose his ideas?

A

Forced into creating his reform package by parliament and the large scale of French debt,
There was a deficit of over 100 million livres.

34
Q

What was Calonne’s programme?

A

General land tax
Establishing provincial assemblies to permit the involvement of landowners in the assessment of new land tax.
Indirect tax introduced on legal documents
Removal of controls on the grain trade
Removal of internal custom barriers to boost commerce
End of the corvée royale, replaced by a land tax on owners

35
Q

Implications of Calonne’s programmes

A

Calonne failed to see the full implications
Land tax was payable by all, would have social effects. Hurts the Ancien regime.

36
Q

Who did Calonne summon to approve the programme? What did they say?

A

Council of Notables, they refused to approve his reforms.

37
Q

What happened as a result of the interaction between Calonne and the Assembly of Notables?

A

Louis XIV dissolved the council
Calonne was dismissed in 1787

38
Q

How much debt was France in by 1780s?

A

100 million livres

39
Q

17__ -__% of income in the 3rd estate was spent on bread
17___-__% of income

A

1787-50% of income in the 3rd estate spent on bread
1788-80% income

40
Q

Textile production fell by __%

A

50%