French Revolution, Points Test 14 – Napoleon’s Financial and Economic Policies and Problems Flashcards

1
Q

What was Napoleon’s view of taxation in general, and how did he manage this in his early reign up to 1807?

A
  • Napoleon keen to maintain a high level of taxation because of war costs.
  • He kept the contribution fonciére (land tax, providing the bulk of government revenue) that he inherited from Directory.
  • During the Consulate, the contribution personelle mobiliére (tax on personal property, servants, coaches etc.) also collected in urban areas.
  • However, this brought in a comparatively small amount of revenue, sometimes more costly to collect than it was worth.
  • Other direct taxes, including customs duties and fees for registrations and services, also continued as before.
  • Whenever possible, however, Napoleon sought to increase revenue and to make collection more effective.
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2
Q

. From 1803, what new taxes did Napoleon bring in?

A
  • In 1807, Napoleon’s officials began to draw up a new cadastre (land register).
  • This was to measure the value of land, to recalculate the land tax.
  • This was to make the tax fairer, and ensure that farmers who had increased the value of their land paid more tax as a result.
  • The compilation of the new register took far longer than expected, only a fifth of the country has been assessed by 1815.
  • From September 1803, following lead of Paris, towns and cities allowed to levy an octroi on consumer goods entering their administration. This gradually came to replace the contribution personelle mobiliére.
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3
Q

How did Napoleon try to ensure that more tax was collected?

A
  • Tax collectors and inspectors were appointed for each département and paid in proportion to the taxes they collected.
  • Their tax recepits were passed to receivers, who were subject to the inspection of the general government.
  • The Constitution of the Year VIII established a commission to take responsibility for the accounting of state revenue and expenditure. From this came the Cour des Comptes of September 1807: a central bureau for handling and auditing the state’s finances. It kept detailed accounts of income and expenditure and ministries had to have certified authorisation for the release of money.
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4
Q

Who was Jen-Pierre Backasson, Comte de Montalivet?

A
  • Jean-Pierre Bachasson, Comte de Montalivet (1766-1823)
  • Although from a noble family, Montalivet had supported the revolution.
  • Served in the Army of Italy during the Terror.
  • He was made a prefect under the consulate
  • Then promoted in 1809 to become minister of the interior.
  • Helped develop Napoleon’s infrastructure by building bridges and ports.
  • Oversaw large-scale urban development in Paris, the building of the Arc de Triomphe, the digging of public fountains and the expansion of sewage works.
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5
Q

Why did continuous war put heavy burdens of tax on the french population, and why did the resulting indirect taxation particularly annoy the population?

A
  • However, in a situation of almost continuous war, any improvements in tax assessment and collection offset by the cost of maintaining the army and the Empire.
  • Consequently, government relied heavily on indirect taxes on range of goods, including playing cards.
  • Taxes on alcohol, salt and tobacco quadrupled, which hit the working classes hard.
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6
Q

What was one of Napoleon’s first fiscal policies with regards to the currency?

A
  • Stability, and security of Napoleon’s own position, demanded further financial reform.
  • Although Directory tried to address currency problems, they remained, one of Napoleon’s first acts to refuse to honour agreements paid for in worthless paper money and declare that the only legal tender would be metal coinage.
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7
Q

How did Napoleon reform the currency in 1803?

A
  • A new metallic currency established in March 1803, based on Gold and Silver.
  • This confirmed the 1795 Directory Law and fixed weight of metal and alloy so that it corresponded directly to the actual value of the money.
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8
Q

What institution did Napoleon found in 1800, and for what purpose?

A
  • In January 1800 Napoleon established the Bank of France (Banque de France).
  • This was to provide an institution that could provide credit for gov. and businesses.
  • It had a small issue of paper money, this restricted to use in Paris and limited to high-value 500 and 1,000-franc notes, so of use only to merchants.
  • Its main purpose to produce and control a national currency of gold and silver coins.
  • Its monetary control and responsible behaviour a considerable boost to the French economy.
  • By controlling the sale of government bonds it also ensured that Napoleon could raise loans at reasonable interest, by guaranteeing the repayments.
  • From 1808, sub-branches were set up in other French towns where trade was growing and more cash fluidity was needed.
  • The Bank started with capital of 30 million francs divided into shares of 1,000 each.
  • The 200 largest shareholders elected the 15 governors and 3 directors who ran the bank.
  • This gave the wealthy elite a vested interest in the new institution.
  • In April 1806, a new law replaced the central committee with a governor and two deputy governors appointed by the emperor.
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9
Q

Who was Jean-Antoine Chaptal (1800-04)?

A
  • Brought in to help stabilise and expand it, lagging well behind Britain.
  • He was a chemist and industrialist, recommended to Napoleon by Cambacéres.
  • This was to replace Napoleon’s rather-too-independent-minded brother Lucien at the Interior.
  • Chaptal responsible for the new administrative structure of prefects, sub-prefects, mayors and municipal councils for france, and for the new education systems in the Lycées.
  • Admired laissez-faire economics, but believed in state-sponsorship of industrialisation for France.
  • On his resignation in 1804, admitted to the legion of honour and the Senate.
  • Recalled to offer advice following the economic downturn in 1811.
  • Made minister of Agriculture, Commerce and Industry during the Hundred Days.
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10
Q

How did Napoleon’s minister of the interior, Jean-Antoine Chaptal (1800-04) try to stimulate economic growth?

A
  • Chaptal’s contributions included:
  • Establishment of Bureau of Statistics to gather date from the départements on population and condition of agriculture, commerce and industry.
  • The formation of the Société d’Encouragement pour l’Iundustrie Nationale in 1801, with himself as president. This society offered prizes, published newsletters and held exhibitions of the products of French Industry.
  • The establishment of Councils of Agriculture, Arts and Commerce in each of France’s départements (1801).
  • The establishment of Chambers of Commerce in 23 largest cities in 1802, and Chambres Consultatives des Arts et Manufactures in 150 of the smaller urban areas in 1803.
  • Chaptal’s encouragement increased mechanisation and technical innovation.
  • This was particularly in mass-production of consumer goods.
  • However, Napoleon himself more interested in luxury goods, which he felt better reflected his regime.
  • Some of Chaptal’s direction was lost after he stepped down.
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11
Q

What evidence was there that by 1811/1812, France had seen some industrial development?

A
  • Nevertheless, if the figures gathered by Montalivet, the Minister for the Interior 1811-1812, are to be believed, France certainly saw some industrial advancement.
  • According to his report of that year, the wool industry increased its yield by 400% and exported silks rose in value from 26 million francs to 64 million between 1790 and 1812.
  • Napoleon’s particular interest in the silk trade.
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12
Q

What were Napoleon’s policies with regards to Agriculture?

A
  • Agriculture remained the largest sector of the French economy.
  • Here the picture was mixed.
  • Some regions saw major improvements as new large landowners developed their estates and agricultural associations were established to share new ideas on new crops, animal breeding and scientific farming.
  • However, much of France remained in the hands of the small peasant proprietors who could barely support their own needs.
  • The division of farms between surviving sons, supported by the new Civil Code, actually exacerbated problems.
  • Elsewhere, tenant farmers often reluctant to make improvements for fear of rent increases.
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13
Q

Explain the policy promoted by the government of ‘replacement crops’ and how successful these were?

A
  • The government tried to encourage the growth of ‘replacement crops’, such as cotton, coffees, dyes, tobacco and sugar.
  • This was to avoid dependence on colonial production which was disrupted by war.
  • Prefects ordered to ensure that a certain amount of land was set aside for these.
  • In January 1813 the import of sugar cane was actually prohibited in order to stimulate the home sugar-beet industry.
  • Despite the fact that targets were not met, this policy had some effect, although results not really felt until after 1815.
  • There were some good harvests in the early years of the consulate and Empire (except for 1806).
  • This helped increase the feeling of greater prosperity, although conditions became less promising after 1809.
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14
Q

How and why is the success of Napoleon’s agricultural policy mixed?

A
  • Again, Montalivet gave a very positive picture, suggesting that the agriculture of France has prospered so much that by 1812 it was able to export butter, cheese and vegetable oils, all of which had been imported before the revolution.
  • However, economic historians are more sceptical.
  • Prefects often reported favourably on the state of agriculture in their areas.
  • Apart from some improvement in wine production, it would be hard to identify widespread improvement in these years.
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15
Q

How did the war affect the Napoleonic economy positively and negatively?

A
  • While the demands of war stimulated the production of armaments and other military supplies, this came at the expense of peacetime industry and investment.
  • Labour was lost to the army, which in turn reduced internal demand.
  • Napoleon paid for his wars by tightening taxation, conscripting soldiers at low wages, taking out loans, selling land (including the sale of Louisiana to the USA), and taking what he could from conquered territories.
  • However, after initial success during consulate, the empire never provided sufficient income to meet its own expenses.
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16
Q

What was the Louisiana Purchase?

A
  • Napoleon had gained Louisiana from Spain in 1800.
  • It had been French from 1699 to 1762, when ceded to Spain.
  • In 1803 he sold it to the USA, in order to finance his planned invasion of England.
  • He received in exchange 50 million francs in US government bonds and gold, and the cancellation of c.18million francs worth of debt.
17
Q

What affect did the wars have on the French Empire’s trade and how did Napoleon try to counter this, prior to the continental blockade?

A
  • The war also had an adverse effect on French trade, particularly in western France where the British kept up a tight blockade.
  • Under Napoleon, trade moved away from the Atlantic and French overseas colonies towards France’s allies and conquered territories in continent.
  • Ports and industrial cities in the west, such as Le Harve and Rouen, were badly hit, although Bordoeux, where the British Blockade was less tight, suffered less.
  • Maritime commerce in the Mediterranean was also affected by the British dominance at sea, and trade passing through Marseilles was much reduced.
18
Q

Explain the origins of the Continental Blockade.

A

• From 1793, British goods had been prohibited from entering French territories.
• However in 1806-1807 Napoleon took this further, introducing a continental blockade.
• This banned all French trade with Britain and insisted that both France’s allies and other neutral countries should follow suit – or be treated as France’s enemies.
• This intensified the economic warfare.
1801 Plan to extend French Influence in India (in alliance with Tsar Paul I of Russia) abandoned on Paul’s death.
1802 British Navy obstructs French plans for the creation of a Caribbean empire.
1803 Sale of Louisiana to the USA.
1804-1805 French plans to invade the British Isles and conquer SU Australia abandoned.
1807-1808 2nd plan to take India from Britain fails because of reluctance of Tsar Alexander I.

19
Q

What was Napoleon’s aims with regards to enforcing the continental blockade?

A
  • Napoleon aimed to weaken Britain by closing its European markets, and force it to sue for peace.
  • This would enable France to get its Atlantic trade back.
  • He also hoped to increase French trade and production to fill the gap left by Britain.
  • This would replace France’s losses from the decline of the Atlantic Trade.
20
Q

Why did the Continental System fail?

A
  • The continental system failed.
  • This partly because the French Navy and Napoleon’s hold on the coastlines not strong enough.
  • Smuggling thrived (despite tripling of customs officials between 1797 and 1810).
  • Sometimes officials, gendarmes and soldiers responsible for enforcement indulged in illegal practices themselves.
  • These included contrabande (prohibited goods) and fraude (trading without paying permitted duties).
  • British Counter-action affected French producers, depriving them of necessary raw materials.
  • The colonial and wine trades hit particularly hard, products normally supplied by the British (esp. sugar and coffee, even coats and shoes) left in short supply.
  • Napoleon forced to allow some licensed trade with Britain as additional way of raising funds from 1810 – to offset French decline in customs receipts.
  • Moreover, British trade with North and South America more than made up for the losses from continental trade, so country never damaged as Napoleon hoped.
  • A few areas of France unaffected by ban, or even thrived from it. Alsace and Strasbourg did well by developing trade with Germany, Italy and eastern Europe, French Belgium also thrived.
21
Q

What x6 main factors limited the degree of economic change under Napoleon?

A
  • There was limited demand because of the mass of population was still tied to farming, was heavily taxed and had a low standard of living.
  • Industrial work was unattractive since workers were restrained by the livret, there was a ban on trade unions and living conditions in towns and cities were poor. Joining the army was a more attractive proposition for those seeking advancement.
  • There was limited incentive for expansion other than in war-based industries and opportunities for economic development curbed by the loss of markets in war.
  • France had no rich capitalist/bourgeoisie class with a desire to invest in industry. The bourgeoisie had already been satisfied with biens nationaux, and to be ‘in trade’ was still looked down upon culturally.
  • Communications in general remained poor (despite some improvements in road-building, for military purposes only).
  • Many farms small and unprofitable. State control of prices and food supplies (with restrictions on export of grain and maximum prices for bread and flour introduced in 1812) prevented bread riots in towns but gave little incentive to farmers to change.
22
Q

Why from 1806 did France experience an economic downturn?

A
  • The limited economic growth more of a problem after 1806.
  • This was the first year since 1802 when expenditure had outstripped income.
  • To address this, taxes raised.
  • However, poor harvest of 1809 followed by a banking crisis across Europe, banks called in their loans.
23
Q

Why from 1809-1812 did France’s economic situation worsen?

A
  • Napoleon’s attempt to tighten customs collection exacerbated this crisis, by 1810 France once more in severe debt and suffering from inflation, rising unemployment and the collapse of banks and business.
  • Some recovery in 1811, another bad harvest that year sent prices soaring again.
  • Then came the disastrous 1812 Russian campaign.