Financial Ministers Flashcards
Not needed for A-Level exam
When did Louis XVI appoint Jacques Turgot as his Controller-General of Finance?
1775
How long was Turgot the Controller-General of Finance?
1 year
What did Turgot believe?
That freeing agriculture from the restrictions of taxes and dues was a positive way to stimulate the wealth of the country, despite this being attempted unsuccessfully in the 1760s.
What are four developments that Turgot contributed to?
- He improved accounting procedures.
- He reduced the number of government officials - particularly those involved in tax collection.
- He restricted the guilds that controlled trade.
- He aimed to abolish the corvee.
Why did Turgot oppose the War of Independence?
He opposed it on economic grounds, believing that it wouldn’t be economically beneficial.
What commodity did Turgot try introducing free trade for?
Grain.
What happened when Turgot tried introducing free trade for flour?
It coincided with a poor harvest and there was a great deal of hostility and violence - particularly within North France.
What did Northern France become known as?
The Flour War.
What led to Turgot’s dismissal by the Paris Parlement in 1776?
He attempted to introduce a single tax on land, organised by representative assemblies of landowners, which would replace all existing taxes.
Due to the radicalness of this and the opposition from rival ministers, the Paris Parlement refused to register the edicts and he was dismissed.
Who succeeded Turgot?
Jaques Necker.
What did Necker’s appointment coincide with?
The War of Independence.
Why couldn’t Necker take the official title of Controller-General?
Because he was a Protestant.
What did Necker try and bring about?
Fundamental reform of the French taxation system.
When did Necker’s first term finish and end?
1777-1781.
What did Necker introduce in 1781?
The Compte Rendu.
What was the Compte Rendu?
The first publication of the royal accounts.
How did Necker manipulate the Compte Rendu for his own benefit?
It was a publicity measure that omitted the costs of the war to make it appear as though there was a surplus in the royal finances of around 10m livres.
This provided reassurance to lenders to permit him to raise yet more loans without having to raise taxes.
Which estate did Necker become popular within and why?
The third estate because they liked that he revealed the amounts spent on pensions to courtiers.
How much was the royal debt at the end of the seven years war in 1763?
50m livres.
How much did the royal debt go up to by Louis’ accession in 1774?
40m livres.
How much did the royal debt reach by 1786?
112m livres.
What did Necker try to control?
The level of war expenditure and used his popularity to force the king to admit him to his special councils.
Why wasn’t Necker admitted to Louis’ special council?
Because he had too many ministerial opponents.
When did Necker resign?
1781.
What did his resignation imply?
That Louis’ regime was losing confidence.
When did Necker’s second term finish and end?
1788-89.
When did Charles de Calonne become controller general?
1783.
Despite Calonne’s senior role, why was there little he could do about royal debts and the interest payments?
Louis and his ministers were resistant to change, despite interest payments taking up a large proportion of income.
What happened between 1784-85 whilst Calonne was the controller general?
Credit began to dry up and the Paris Parlement refused to register any more loans.
When did Calonne inform Louis that the state faced financial collapse?
20th August 1786.