Financial Crisis By 1788

Question 1

Why was wealth distribution in the estates a problem?

Answer 1

• 1st estate archbishops and abbots were very rich and owned huge amounts of land, but parish priests identified more with peasants as they only earned about 7000 livres a year
• 2nd estate were very rich due owning land and diversifying their income through investments in banking/trade/mining
• 3rd estate were very, very poor (except Bourgeoisie) — Sans-Culottes wages fell by 22% between 1726-1789

Question 2

To what extent was Louis responsible for the financial crisis?

Answer 2

• decision to invest in costly wars e.g. Seven Years (1756-63) and American War of Independence = 1066 million livres in debt
• reluctance for reform, by which time it was too late
• refusal to call Estates-General

Question 3

Why did the Assembly of Notables fail?

Answer 3

• notables were 144 people from 1st and 2nd estate who met in Feb 1787
• Calonne presented a 3 step reform (create 1 land tax with no exemptions, abolish trade barriers and restore national confidence)
• initially refused reform as privileged orders had the most to lose
• Calonne replaced with Brienne
• no support from Paris parlement, who Louis exiled

Question 4

What was the government response to the financial crisis?

Answer 4

• ministers urged him to call Estates-General (1st May 1789)
• urged him to bring back the Paris parlement
• Brienne’s new reforms were the same as Calonne’s but added some of Necker’s ideas (end venality, reform the army, religious/educative reform and a new central treasury)

Question 5

How did the financial crises turn into an economic one?

Answer 5

• food shortages caused riots/disturbances and a rise in food price
• lower demand for manufactured goods due to essentials being so expensive
• 88% Sans-Culottes income went toward buying bread

Question 6

What were the grievances of the 3rd estate?

Answer 6

• wanted controls of bread prices
• better wages for Sans-Culottes
• end lettres de cachet
• all legislation passed through Estates-General and published accounts of the laws so that they’re easily accessible
• every man should have equal rights

Question 7

What were the ideas/grievances of the 1st estate?

Answer 7

• end to plurality
• those who were not nobles could become bishops
• clergy still in charge of education

Question 8

What were the ideas/grievances of 2nd estate?

Answer 8

• keep some ancient rights
• SOME prepared to guide up financial privileges but would not pay land tax
• prepared to admit that merit rather than birth should be the key to office positions

Question 9

What were the issues with the way the Crown generated income?

Answer 9

• huge corruption and wastage in tax farming due to officials buying their office meant they could not be dismissed
• due to inadequate taxes they borrowed huge amounts of money
• money mostly taken from the peasants
• financial chaos weakened the crown