Economic Problems And Royal Fiannce

Question 1

Thriving economy (5+)

Answer 1

Lot of suitable farming land
1730s = France followed British and improved agricultural techniques = fertilisers and crop rotation
Between 1715-1771 French commerce increased almost eight fold = France second only to Britain in trade
Trade with colonies quadrupled
Industrial production doubled 1715-1771

Question 2

Economic problems (4+)

Answer 2

Economy predominantly agriculture
Rural overpopulation = yield from French farms very low
Variations in weight measurements across the country - 25000 different units of measurement = offered ample opp for fraud
Lacked a network of rivers and canals to carry goods

Question 3

Why was there problems when collected tax (3+)

Answer 3

Indirect taxes collected by farmers and syndicates = corruption
No central treasury or bank so impossible for minsters to anticipate income and budget accordingly
Financial officials and corporations purchased positions = practice for them to keep something they collected

Question 4

How were taxes collected (2)

Answer 4

Direct = royal officers who bought positions
Ferme generale second largest employer in France = bought in more than half of govs revenue

Question 5

Types of direct tax

Answer 5

Taille = tax on property
Capitation = poll tax
Vingtième = income tax

Question 6

Types of indirect tax (6)

Answer 6

Gabelle - salt
Tobac - tobacco
Aides - consumer goods
Domaine - crown lands
Triage - custom duties
Timbre - stamp tax

Question 7

Debt after Louis XIV death - just France (3)

Answer 7

National debt of 2 billion
Annual interest payments on this debt = 165 million = more than collected in tax
Balance of payments crisis

Question 8

Debt from wars (3)

Answer 8

The war of Austrian succession + seven years war = cost 1.3 billion livres
Economic loss of all French colonies in North America
By 1764 = 2.3 billion livres of debt

Question 9

When was seven years war

Answer 9

1756-1763

Question 10

Debt after AWoI (2)

Answer 10

3.3 billion livre of debt
America chose to maintain commercial ties with Britain

Question 11

What did Turgot do (5)

Answer 11

Cuts to royal expenditure
Demand that gov departments submit their expenses to CG and find ways to reduce expenditure
The removal of a number of pensions
Reforms of the tax farming system to improve efficiency
Opposed French participation in AWoI

Question 12

Who was Turgot (4)

Answer 12

Appointed CG in 1774
Friend of Voltaire
He was an idealist and wanted justice
Forced to resign in 1776 under pressure from queen and ministers

Question 13

Turgot abandoned proposals (2)

Answer 13

Replace indirect tax with property tax = second estate opposed
Free trade in grain = poor harvest 1774 increased bread prices = flour wars in early spring 1775

Question 14

Turgot six edicts (6)

Answer 14

1776
Abolish all privileges + tax all + grant man right to work without restriction
Fifth = suppressed the guilds
Sixth = abolished the corvee in favour of tax paid by landowners
Registered by a lit de justice in march
Edicts forgotten after resignation in may 1776

Question 15

Who was Necker (4)

Answer 15

Protestant so was named director general of finances in 1777
Wealthy banker
Tried to bring reform
Recalled in august 1788 + served until 11 July 1789

Question 16

Neckers cost cutting measures (2)

Answer 16

Reduced royal household expenses + pensions
Appointed salaried officials not venal corps to run royal estates

Question 17

How did necker make the royal accounting system more professional (4)

Answer 17

Reduced number of separate collecting bodies
Replaced venal accountants with paid secretaries
Reduced number of tax farmers from 60-40
Abolished 48 posts of receivers general of direct taxes + replaced with 12 salaried officials who had to submit receipts to necker

Question 18

Necker problem - venal offices (2)

Answer 18

They traditionally lent money to crown
Vital source of credit was lost

Question 19

First budget statement of royal finances (3)

Answer 19

1781
Known as compte Rendu au Roi (report to the king)
100,000 copies sold within weeks

Question 20

Budget statement problem (5)

Answer 20

Inaccurate
Needed to raise loans to deal with debt
Didn’t want to raise taxes
Disguised Frances high interest payments as normal expenditure = stronger financial situation than it was
Suggested 10 million livres surplus

Question 21

Necker popularity (3)

Answer 21

Extremely popular with ordinary people
Attacks on vested interests
Involved in France in a successful war without raising tax

Question 22

When Calonne

Answer 22

1783-1787

Question 23

Who was Calonne (4)

Answer 23

Lawyer
Came from noblesse de robe
Blamed for the deficit
Dismissed and exiled to Lorraine in April 1787

Question 24

What did Calonne do 1786 (2)

Answer 24

Put together a reform package
Largely culled from the ideas of his predecessors

Question 25

Reform package included (3)

Answer 25

General land tax
End of corvee royale = tax on landowners
Removal of internal customs barriers to boost commerce

Question 26

Problem with Calonne reform package (2)

Answer 26

Introducing a land tax payable by all = social effects because it hit the hierarchy of ancien regime
Decided to put measures to an assembly of notables

Question 27

When - finance ministers (6)

Answer 27

Turgot = 1774 - 1776
Necker = 1777 - 1781
Calonne = 1783 - 1787
Brienne = 1787 - 1788
Necker = 1788 - 1789
Necker 13-16 July 1789