Economic Problems And Royal Finance Flashcards
How much did trade with colonies improve in terms of income?
4 times
What was founded in 1776 which helped trade?
The Caisse d’Escompte
How did a rise in population and agrarian economy put France in a weak position?
Reduced side of holdings and divided lands between sons
Food production was low for demand, this was an economic problem in the 1770s and 1780s. True or false.
True
Why was there opportunity for fraud in the 1770s and 1780s?
25,000 different units of measure in France before 1789
Which industry faced British competition during the 1780s?
Textile industry
Bread prices were rising during the 1770s and 1780s. True or false.
True
How were direct taxes collected?
Royal officials
How were indirect taxes collected?
Tax farmers and syndicates
Due to widespread corruption concerning indirect tax collection, how was a substantial royal debt created?
Loans which had interest on them
What was the Domaine?
A tax on Church lands
What was the traite?
Customs duty tax
What was timbre?
Stamp tax
By 1764, how many livres of debt was France in?
2.3 billion
After the wars how much debt was France in?
3.3 billion
What measures did Turgot take between 1774 to 1776 to improve France’s finances?
- Cuts to royal expenses
- Government departments submit expenses to Controller-General
- Reduction in number of pensions
- Reforms of tax-farming system
Which of Turgot’s proposals had to be abandoned?
- Indirect taxes replaced with property tax
- Ending tolls and price controls, opposed by men with vested interests
- Turgot’s ‘Six Edicts’ of 1776
Why was the Six Edicts of 1776 disliked?
It would abolish privilege, suppress guilds and abolish corvée
How were Turgot’s Six Edicts eventually registered in March 1776?
A lit de justice after the Paris Parlement used two remonstrances
When did Turgot get ordered to turn in his resignation?
May 1776
Why was Necker given the title of ‘Director-General of Finances’?
Because he was Protestant
What measures did Necker take to cut costs?
- Reduce royal household expenses
- Appointment of salaried officials to run the royal estates
- Removing the vingtième on industry
Necker reduced tax farmers from 60 to 40. True or false.
True.
When did Necker produce the first French ‘budget-statement’ of royal finances?
1781
What was Necker’s ‘budget-statement called?
Compete Rendu au Roi
Why did Necker resign in 1781?
Compte Rendu au Roi was inaccurate with his desperation to get more loans, it also put him at odds with Louis, Marie Antoinette and many at Court
Who was Necker popular with?
The ordinary people of France
What was included in 1786’s proposal package by Calonne?
- A general land tax
- Establishment of provincial assemblies
- Extra indirect tax for stamp duty
- End of corvée royale
- Removal of control on grain trade
- Removal of internal barriers to boost commerce
How did Calonne’s programme hit at the Ancien Regime?
Land tax was made payable by all, including the Church
How did Louis overcome the political deadlock about Calonne’s programme?
Using the ‘Assembly of Notables’
