French Revolution, Points Test 3 - Economic Problems and Royal Finance under the AR Flashcards
1
Q
- Why did the French Economy have many positive aspects for most of the 18th century (esp. with population and agriculture)?
A
- Why did the French Economy have many positive aspects for most of the 18th century (esp. with population and agriculture)?
- Many signs of a thriving economy in France for the first 3/4s of the 18th century.
- Rapid population growth from 1730s meant it had population of 27 million by 1780s.
- It had been 21.5 million in 1700.
- This was more than three times the population of Great Britain.
- France united and politically stable, in comparison to most neighbours.
- Italy and Germany politically fragmented, Spain in decline.
- Had lots of excellent agrarian land: prices for produce rising due to demand, large landowners profited and increased their holdings.
- From 1730s, France followed Britain’s lead in improving agricultural techniques (crop rotations, use of fertilisers).
- Cultivation of American Maize and Potatoes expanded, increasing calorific intake.
2
Q
- Why had French Commerce increased significantly in this period?
A
- Why had French Commerce increased significantly in this period?
- Between 1751 and 1771, French commerce increased almost eight fold, making France second only to Great Britain in trade.
- Trade with colonies quadrupled, making trading ports prosperous.
- Marseilles boomed on trade with Levant; Nantes and le harve with French West Indies.
- Bordeaux thrived on handling goods to and from Spain.
- Merchants grew rich from the slave trade and import of cotton, indigo, coffee and sugar, which they re-exported across Europe.
3
Q
- How was transport and infrastructure improving in this period?
A
- How was transport and infrastructure improving in this period?
- Transport improving: in 1760s, 1000km from Paris to Toulouse took 15 days.
- By 1780s, it took 8.
- Visitors commented on quality of royal roads (maintained by the corvée royale).
4
Q
- How was manufacture/industrial production improving in this period?
A
- How was manufacture/industrial production improving in this period?
- Industrial production doubled between 1715 and 1771; mining, metallurgy and textiles (in particular printed fabrics) did well.
- Mechanisation introduced, some factories appeared.
5
Q
- How did French banking improve in this period?
A
- How did French banking improve in this period?
- Paris became the centre of France’s banking.
- Caisse d’Escompte founded in 1776 to discount bills of exchange.
- These helped trade by offering ready cash for a bill, so that a trader didn’t have to wait for payment.
6
Q
- What economic problems did the AR Economy suffer in terms of agriculture?
A
- What economic problems did the AR Economy suffer in terms of agriculture?
- However, there were also economic problems, and these grew worse in the 1770s and 1780s.
- The French economy was predominantly agricultural: only 15% of pop. Lived in areas of more than 2,000 inhabitants.
- However, agriculture comparably backward (say to Britain or the United Provinces), partly due to seigneurial arrangements, and partly due to farm division for multiple sons due to rising population.
- This reduced size of holdings to below that of self-sufficiency.
- Yield from French farms very low, there was rural over-population, and peasantry high-taxed.
- They persisted with backward agricultural techniques (often because they had to?).
- Food production could not keep up with population growth.
7
Q
- Why did state regulations often hinder the French Economy’s growth at this time?
A
- Why did state regulations often hinder the French Economy’s growth at this time?
- State imposed regulations on domestic economy: set requirements for production quality and limited industries to certain cities.
- There were also internal trade barriers.
- Variations in weights and measures across the country.
- Before 1789, estimated 25,000 different units of measure. They varied from town to town and from trade to trade; some traders used their own measuring devices, offering ample opportunity for fraud.
- France lacked a network of rivers and canals to carry goods, especially grain.
8
Q
- Why did France’s industry suffer in the late 18th century?
A
- Why did France’s industry suffer in the late 18th century?
- In the 1780s there was a decline in France’s textile industry in the face of British Competition.
- French industry was less mechanised than that of Britain.
- In 1789, Britain had 200 cotton mills, while France had 8.
- Britain also had 20,000 spinning jennies, while France had 1,000.
- British competition produced unemployment among France’s spinners and weavers.
9
Q
- Why was the French Banking system weak in the late 18th century?
A
- Why was the French Banking system weak in the late 18th century?
- French banking system not advanced: borrowing scheme using paper money had been initiated by John Law at start of 18th century, but had collapsed.
- This led businessmen and traders to fear paper notes, as opposed to metal currency.
- Raising capital, therefore, not easy (and aristocrats traditionally uninterested anyway).
10
Q
- Why did AR France suffer a downturn in the 1770s/1780s?
A
- Why did AR France suffer a downturn in the 1770s/1780s?
- Downturn in 1770s; failure of the vintage in 1778 followed by series of poor harvests and disastrous winters from 1785 to 1789 which depressed peasant incomes.
- In July 1788, a hailstorm destroyed crops and France had its worst harvest in 40 years.
- This downturn led to a trade slump which produced lay-offs in industry, at a time of rising bread prices.
11
Q
- How in general did the AR government keep France solvent?
A
- How in general did the AR government keep France solvent?
- Government financed from direct and indirect taxation.
- Also supplemented by ‘temporary expedients’ such as loans or the sales of offices.
- This was to meet the shortfall between income and expenditure.
12
Q
- What was the main direct tax?
A
- What was the main direct tax?
- Traditionally, the main direct tax was the taille personelle (paid on the estimated annual value of possessions).
- In some areas, however, this was calculated slightly differently, known there as the taille réelle.
13
Q
- What other direct taxes had Louis XIV and XV introduced to pay for wars they had fought?
A
- What other direct taxes had Louis XIV and XV introduced to pay for wars they had fought?
- Louis XIV and Louis XV had also introduced other direct taxes to pay for wars, which theoretically everyone had to pay.
- These were the capitation (Poll tax), and the vingtiéme (5% levy).
- These taxes collected by royal officials (officiers) but some of the pays d’états paid their taxes as a lump sum.
14
Q
- What were the church’s tax arrangements?
A
- What were the church’s tax arrangements?
- Furthermore the special privileges according to the first two estates varied considerably; the church only offered the crown a ‘don gratuit’, a self-calculated lump sum which bore little relation to the wealth of its lands.
- This was paid every 5 years, amounting to 2% of the church’s total revenue.
- Church had won right to this in lieu of direct taxation.
15
Q
- Why was the collection of taxation so problematic?
A
- Why was the collection of taxation so problematic?
- There were also many indirect taxes on goods and services. These were collected by tax farmers and syndicates. However, accounting procedures were limited and there was widespread corruption.
- There was no central treasury or bank, so it was almost impossible for ministers to anticipate income and budget accordingly.
- Furthermore, financial officials and corporations purchased their positions and it was accepted practice for them to keep something of what they collected.
16
Q
- Why did increasing reliance on loans call problems for the royal finances?
A
- Why did increasing reliance on loans call problems for the royal finances?
- Government was therefore increasingly forced to rely on loans, particularly at times of heavy expenditure, such as during war.
- Interest had to be paid on these loans, and they built up a substantial royal debt.
17
Q
- How was royal tax collected?
A
- How was royal tax collected?
- Direct taxes collected by royal officiers who bought their positions.
- Most indirect tax collection had been sold to collection agencies, wither via a 6 year leave to the ferme générale (general farm tax) or to a régie générale.
- Régie was a syndicate (régisseurs) who received a fixed salary for their service.
- The ferme paid the crown an annual fee and took its income from the difference between that and the amount collected.
- Members of the ferme générale called fermiers-généraux (farmers-general).
- It was the 2nd largest employer in the country (after the army), bringing in more than half of the government’s revenue.
18
Q
- What was the taille?
A
- What was the taille?
- A Tax on property and income of 3rd estate.
- Divided into taille personelle (property/revenue/personal tax) and taille réelle (land and house property, or household, applicable in Languedoc, Provence, Guyenne and Dauphiné).
19
Q
- What was the Capitiation?
A
- What was the Capitiation?
- Capitation (Poll Tax)
- Theoretically payable by everyone.
- Clergy paid don gratuity instead.
- 2nd estate payments varied depending on rank, status, occupation and property.
- 22 different tax classes.
20
Q
- What was the Vingtiéme?
A
- What was the Vingtiéme?
- Vingtiéme (income tax)
- Vingtiéme direct tax of 5% of earnings from land, property, commerce, industry and official offices.
- Although intended to be levied on all, the clergy won exemption, the pays d’états won reduced rates and the parlements resisted new assessments of income.
21
Q
- Name some indirect taxes/what they were made on?
A
- Name some indirect taxes/what they were made on?
• Gabelle, The Salt Tax, collected by the ferme générale.
• Tabac, The Tobacco Tax, collected by the ferme générale.
• Aides, Represented a consumption tax on consumer goods, such as wine, liquor, oil, textiles, tallow, iron, wood, livestock, playing cards, hides, soap and paper. Aides were collected by the régie générale.
