Financial & Fiscal Crisis

Question 1

Key direct taxes (3)

Answer 1

Taille - Tax on land paid only by the Third Estate
Tithe - Tax of 10% of a peasants produce to their local clergy
Corvee Royale - 14 days of forced labour, taking peasants away from their fields

Question 2

Compte Rendu au Roi

Answer 2

February 1781

Question 3

Significance of the Compte Rendu (3)

Answer 3

1) Sold 20,000 copies in the first few weeks
2) Became the first time the finances of the nation were a matter of public interest
3) Indirectly suggested that the King was to be held accountable for the spending of taxpayer’s money

Question 4

Causes of the Financial Crisis (4)

Answer 4

1) Foreign war debt
2) Privilege and venal offices
3) No uniform national economy
4) Lavish royal spending

Question 5

Statistic about the effect of increasing debt interest

Answer 5

In 1786, the state spent 112 million livres more than it earned. This huge deficit would inevitably lead to bankruptcy.