Financing the Wars - French Wars Flashcards
Why did Britain require such extensive finance during the French Wars?
They were unable to fight the French on land effectively due to their comparatively small army therefore, they had to rely upon coalition warfare which required extensive funding of other nations.
Why did public discontent begin to worsen as 1800 approached?
Britain was operating under a trade deficit and there had been a chain of poor harvests resulting in spiralling prices and in turn major public outrage. Riots broke out proclaiming bread and blood which created fears of possible jacobin influence.
What impact did the treaty of Amiens have on financing?
Under increasing pressure from the public the government signed the treaty which in turn helped lower the price of corn as well as abolish the income tax which had been incredibly unpopular.
How much did the French wars cost and how did the Government work to resolve this?
They costed around £1’600 million mainly due to the funding of coalition allies, in order to finance this William Pitt the Younger had to rely more upon merchant bankers and brokers. For example Nathan Rothschild contributed significantly to funding.
How much did the number of banks increase by?
In 1784 there were only 119 provincial banks by the end of the war there were about 800.
What happened in regards to tax and what controversy did it cause?
Income tax was put in place for the first ever time from 1799-1802 and again from 1803-1816, it took 10% of any income over £200. This was wholly unpopular and Pitt had a guard with him at all times. Tax was also introduced for horses, tobacco, tea, sugar and spirits.
What did the Government do in regards to stocks and shares?
The Government began to offer stocks and shares and the number of stock market traders doubled from 432 in 1792 to 726 in 1812 and a New Stock exchange was opened in London in 1812.
