Economic problems and Royal finances

Question 1

Balance of Payment crisis

Answer 1

• Seven Years War - cost 2.3 billion livres
• 1783 - American war of independence cost 3.3 billion Livres
• 1740-48 - War of Austrian succession cost 1 billion livres
• 1780s - 25% government expenditure on war department

Question 2

What did the lack of royal income mean for France

Answer 2

Crown borrowed from international banks - interest rates worsoned debt over time

Question 3

How was the tax system inefficient

Answer 3

1st & 2nd estates - owned most of land - exempt or paid lower rates on most taxes
Venality of financial officials - led to corruption - inefficient tax collection

Question 4

Turgot

Answer 4

• 1776 - Appointed as controller-general
• 1776 - Six edicts - Abolished tax priviliges and corvee - heavy opposition (2 remonstrances) - forced to resign

Question 5

Necker

Answer 5

• 1777 - replaced Turgot
• Reduced tax farmers from 60 to 40 - helped reduce corruption
• 1781 - Budget statement - 10 million livre surplus rather than substantial deficit - King saw as a breach of royal protocal
• Resigned 1781

Question 6

Calonne

Answer 6

• 1783
• Reform package - General land tax (abolition of vingtiemes) - established provincial assemblies
• Led to assembly of Notables - Hierarachy of Ancien Regime opposed package