Economic Problems And Royal Fiannce Flashcards

1
Q

Thriving economy (5+)

A

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

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2
Q

Economic problems (4+)

A

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

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3
Q

Why was there problems when collected tax (3+)

A

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

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4
Q

How were taxes collected (2)

A

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

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5
Q

Types of direct tax

A

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

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6
Q

Types of indirect tax (6)

A

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

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7
Q

Debt after Louis XIV death - just France (3)

A

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

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8
Q

Debt from wars (3)

A

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

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9
Q

When was seven years war

A

1756-1763

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10
Q

Debt after AWoI (2)

A

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

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11
Q

What did Turgot do (5)

A

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

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12
Q

Who was Turgot (4)

A

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

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13
Q

Turgot abandoned proposals (2)

A

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

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14
Q

Turgot six edicts (6)

A

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

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15
Q

Who was Necker (4)

A

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

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16
Q

Neckers cost cutting measures (2)

A

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

17
Q

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

A

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

18
Q

Necker problem - venal offices (2)

A

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

19
Q

First budget statement of royal finances (3)

A

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

20
Q

Budget statement problem (5)

A

Inaccurate
Needed to raise loans to deal with debt
Didnโ€™t want to raise taxes
Disguised Frances high interest payments as normal expenditure = stronger financial situation than it was
Suggested 10 million livres surplus

21
Q

Necker popularity (3)

A

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

22
Q

When Calonne

A

1783-1787

23
Q

Who was Calonne (4)

A

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

24
Q

What did Calonne do 1786 (2)

A

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

25
Q

Reform package included (3)

A

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

26
Q

Problem with Calonne reform package (2)

A

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

27
Q

When - finance ministers (6)

A

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