Financial problems and attempts of Turgot, Necker and Calonne to deal with them. Flashcards
What was the national debt in 1774?
235 million livre.
How much did the seven year war cost?
1,300 million livres - 1756-1763
What did the Queen spend government money on?
The Queens model village - The Hameau de la Raine in 1783.
By 1786 what was the governments annual spending?
633 million livres when government income was only 472 million.
How much was France indebted by 1789?
12 billion livre and was struggling to continue to borrow.
What was the Taille?
Major source of royal income, clergy and nobles exempt and certain cities such as Paris.
A direct land tax.
What was the taillon?
A tax for military purposes.
What was the Gabelle?
Regional monopolies on salt leading to enormous price disparities between different provinces.
Led to smuggling.
What tax did Louis XIV introduce regarding military?
The dixieme - a true tax on income and property value to support military.
What did Louis XV introduce to reduce the royal deficit?
The vingtieme - continued through remaining years of Ancien Regime.
What is the Traites?
Custom duties for the import or export of goods from one French province to another.
What is the corvee?
Unpaid labour typically only for a few days each year.
What is the dime?
A mandatory tax for the Church collected by local clergy.
What is another way government made money?
Through charging fees for state positions and Farmers General.
What was the Farmers General?
The collection of duties on behalf of the King and hefty bonus fees for themselves under a renewable six year contract.
How did the Farmers General become so powerful?
In 1726 all farms were gathered together in single lease - 40 contractors became incredibly rich.
When was the Farmers General reformed?
In 1769 when criticism led it to be collected under public organisations.
What positive changes did Turgot make?
- Fast carriages for transporting mail
- Believed in fiscal discipline (no bankruptcy or increase in taxes)
- No interference in the food supply.
What negative changes did Turgot make?
- Sacked in 1776, only finance minister for two years.
- Ending of price controls led to bread riots.
What positive changes did Necker make?
- Pragmatist: opposed free market as it led to rioting.
- Wanted to cut down on farmers general
- Published royal accounts allowing greater transparency
- Wanted to recall Estates General
What negative changes did Necker make?
- Increased national debt and borrowed 500 million livres.
- Published royal accounts
- Wanted to recall estates general
What positive changes did Calonne make?
- Cut government spending
- Revival of free trade methods
- Authorise sale of Church property
- Equalised salt and tobacco taxes
- Establish universal land value tax
What negative changed did Calonne make?
- Enraged nobility and clergy
- Chamfort (contemporary writer) - ‘Applauded when he lit the fire, and condemned when he sounded the alarm’.
- Continued system of venal financial administration (farmers general).
