Economic Problems and Royal Finance Flashcards

1
Q

What signs were there of France having a thriving economy in the 18th Century in terms of population and agriculture? - Economy

A

France’s population had seen rapid growth, being as large as 27 million by the 1780s. Larger than GB. France also followed Britain’s example in terms of agricultural techniques such as crop rotation and fertilisers to improve productivity.

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2
Q

What signs were there of France having a thriving economy in terms of trade and industry? - Economy

A

Between 1715 and 1771 French commerce increased 8 fold, trade with the colonies quadrupled, industrial production doubled between 1715 and 1771.

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3
Q

What specific evidence is there of French economic prosperity with regards to industrial output and trade between 1715 and 1771? - Economy

A

Trade with colonies quadrupled, industrial production doubled, French commerce increased 8 fold.

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4
Q

What issues were there with the French economy in the 18th century in terms of agriculture? - Economy

A

The French economy was predominantly agricultural so heavily reliant on good weather. Sizes of farms had been decreased through being split through heirs and weren’t self sufficient. French farms were not efficient enough for food production to match population growth.

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5
Q

What SPECIFIC evidence is there of agricultural economic problems in France in the 18th century? - Economy

A

There was a severe downturn in agricultural production in the 1770/80s. The vintage of 1778 failed and poor harvests from bad winter weather in 1785-89 depressed incomes of peasants and damaged food supplies. 1788 saw France’s worst harvest for 40 YEARS.

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6
Q

What economic issues did France have in terms of trade and industry in the 18th century? - Economy

A

France lacked a network of canals and rivers to carry goods, and internal trading barriers interrupted trade. STATE IMPOSED BARRIERS on the economy. 25,000 different units of measure used. French textile industry in the decline due to a lack of mechanisation compared to Britain.

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7
Q

How was Government expenditure financed? (3 methods) - Economy

A

Government was financed through direct and indirect taxation, in addition to ‘temporary expedients’ in the form of loans or sales of offices (venality) to increase income.

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8
Q

What did the church pay in place of tax? - Economy

A

The church was not required to pay tax, in its place paying a don gratuit to the state. This was a voluntary gift which was a self calculated lump sum paid directly to the state. NOT representative of the church’s wealth.

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9
Q

Who collected direct taxes? How had these people acquired their positions? - Economy

A

Direct taxes were collected by royal officiers who had purchased their positions through the process of venality.

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10
Q

Which 2 groups collected indirect taxes? Describe the differences between these groups - Economy

A

Indirect taxes were collected by the ferme générale and régie générale. The ferme was a general tax farm who took their income from collected taxes and the régie was a syndicate who were paid a fixed salary for their work.

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11
Q

What was the taille? Who paid it? Who was it paid to? - Economy

A

The taille was a property and income tax on the Third Estate, paid directly to the state.

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12
Q

What was the gabelle? Who paid it? Who was it collected by? - Economy

A

The gabelle was a tax on salt, paid by all. It was collected by the ferme générale.

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13
Q

What was aides? Who was it paid by? Who collected it? - Economy

A

The aides was a tax paid on luxury goods such as alcohol, oil, textiles, soap and paper. Usually paid by the Second Estate as they were more likely to buy these items. Collected by the régie générale.

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14
Q

What was the Vingtième? Who paid it? Who was it collected by? - Economy

A

The vingtième was a direct tax of 5% of earnings (essentially an income tax). Paid by Second and Third Estates, as the church was exempted from it. Also varied in the pays d’états. Paid DIRECTLY to the state.

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15
Q

What was the total of France’s debt by 1764? - Economy

A

By 1764, France was 2.3 billion livres in debt.

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16
Q

What were the negative economic impacts from the ending of the American Revolutionary Wars? - Economy

A

The Treaty of Paris (signed in 1783) produced very little reward for the French’s assistance in the wars, as the now independent America maintained trading ties with Britain. France’s debt had also increased to 3.3 billion livres.

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17
Q

Aside from the American Revolutionary Wars, which two other conflicts resulted in France compiling notable debts? - Economy

A

France had also participated in the War of the Austrian Succession (1740-48) and the Seven Years War (1756-63) which added 1.3 billion livres to France’s national debt.

18
Q

When was Turgot Controller-General of France? What economic view did he conform with? - Economy

A

Turgot was Controller-General from 1774-1776, with him being a physiocrat, a view which meant that he believed that a freer economy without privilege, restrictions and controls would succeed and flourish.

19
Q

What measures did Turgot take to improve France’s financial state? - Economy

A

Turgot cut royal expenses, demanded that top government expenses would be reviewed and regulated by him and reduced the number of pensions (spearheaded by having to encourage Louis to be more conservative with awarding these gifts).

20
Q

What tax measure did Turgot not succeed in passing, meaning it had to be abandoned? - Economy

A

Turgot aimed to replace indirect taxes with property tax which would impact many in court (land owning nobles).

21
Q

What trading measure did Turgot not succeed in passing, meaning it had to be abandoned? Why? WHEN? - Economy

A

Turgot aimed to establish free trade in grain in 1774 to prevent price controls and allow the industry to flourish. This was opposed by men with vested interests, and was abandoned after 1774‘s poor harvest resulted in the Flour Wars of 1775.

22
Q

When did Turgot establish his ‘Six Edicts’? What policies did Turgot have before this to cause discontent about them? - Economy

A

Turgot’s ‘Six Edicts’ were registered in 1776, and were opposed due to his desire to tax everyone, abolish privilege and permit free rights to work.

23
Q

Which of Turgot’s ‘Six Edicts’ were so strongly opposed? - Economy

A

Turgot’s 5th Edict (that guild power would be suppressed) and 6th edict (the abolition of the corvée to be replaced by a landowner tax) were remonstrated against by the Paris Parlement.

24
Q

What was the outcome for Turgot and his Six Edicts? WHEN? - Economy

A

The Edicts were originally registered by the use of the lit de justice in March 1776, although in May Turgot was ordered to resign, having made enemies such as the Queen. The edicts were subsequently dropped.

25
Q

When was Necker Director-General from-to? Why was he not given the role of Controller-General? - Economy

A

Necker was Director-General from 1777-1781. He could not be made Controller-General as this position was reserved for Catholics and Necker was a Protestant.

26
Q

How did Necker continue Turgot’s economic policy? What new measures did he introduce to cut costs around industry and government? - Economy

A

Necker continued to reduce royal household expenses and pensions.
Necker also appointed salaried officials rather than venal offices to run crown businesses and removed the vingtième on industry.

27
Q

How did Necker amend the tax farming industry? SPECIFIC NUMBERS - Economy

A

Necker reduced the number of tax farmers from 60 to 40 and replaced those who received direct taxes (venal offices) with salaried officials.

28
Q

How were Necker’s measures to alter tax farming positive and negative? - Economy

A

Necker’s measures to remove venal tax farmers reduced corruption within the taxation system, HOWEVER, the income from venal offices in France was a key aspect of royal income. A vital source of revenue was lost.

29
Q

When did Necker produce the Compte Rendu au Roi? What was this? How many copies were sold in its first weeks? - Economy

A

Necker produced the Compte Rendu au Roi in 1781, which was a budget statement displaying the state of French finances. Sold 100,000 copies within weeks of being published.

30
Q

What issues were there with the publishing of the Compte Rendu au Roi in 1781? - Economy

A

The Compte Rendu au Roi was seen as a breach of royal protocol as it published all finances to the public. Furthermore, it was inaccurate, and disguised France’s true economic issues.

31
Q

What is a key example of the inaccuracies of the Compte Rendu au Roi? - Economy

A

Necker wrote that France had overseen a period of surplus of 10 million livres, when in actual fact there was a substantial deficit.

32
Q

Why was Necker popular with the French people? When was he forced to resign? - Economy

A

Necker was popular as he attacked vested interests and the privilege of the upper classes. He also successfully negotiated a conflict without having to raise any additional taxes.
Forced to resign in 1781 having become unpopular at court (QUEEN).

33
Q

When was Calonne made Controller General? When until? - Economy

A

Calonne became Controller-General in 1783, remaining in the post until 1787.

34
Q

Who was Calonne? How had he achieved his noble status? - Economy

A

Calonne had previously served as a lawyer, and acquired his role as Controller-General through being a member of the noblesse de robe. He had also been an intendant.

35
Q

When did Calonne comprise his reform package? Where had many of these reform policies originally come from? - Economy

A

Calonne created his reform package in 1786, which was mainly made up of policies which had been culled from the ideas of his predecessors.

36
Q

Why did Calonne have to create a reform package for French finances? - Economy

A

Calonne was required to create a reform package for French Finances in response to France accumulating over 100 million livres in debt in 1786, as well as following hostility from the French Parlement.

37
Q

What did Calonne’s financial reform package include in terms of tax policy? - Economy

A

Calonne intended to introduce a general land tax on landowner, abolish any vingtièmes, create a tax on legal documents (stamp duty).

38
Q

What did Calonne’s financial reform package include in terms of trade policy and the corvée royale? - Economy

A

Calonne’s trade policy intended to remove barriers on the trade of grain (which was so crucial to feeding the 3rd Estate), removing internal customs barriers between French provinces and ending the corvée royale, replacing it with a tax on landowners.

39
Q

What problems were there with the reforms that Calonne intended to introduce? - Economy

A

Calonne underestimated that introducing a land tax would anger the landowning First and Second Estates. It would undermine the hierarchy of the Ancien Regime.

40
Q

Why did Calonne struggle to get these reforms through the Parlements? What solution was decided? - Economy

A

Calonne struggled to pass these reforms through the Parlements as ministers opposed them. To overcome this deadlock, it was agreed that the reforms would be decided on by an Assembly of Notables.