Napolean Economy Flashcards
Taxation when Napoleon came to power
High levels of taxation required due to high war costs
Used taxes inherited from directory eg. Contribution fonciere
What was the Cadastre
New land calculator introduced in 1807
Aim of cadastre
Increase revenue from the contribution fonciere
Many farmers had increased the value of their land due to technological advances
Downside of cadastre
Only 1/5 of France had been assessed by 1815
Income from land tax
250 million Francs per year
29% of government revenue
Octrois
1803 towns and cities permitted to levy an octrois on consumer goods (local costumes duties on goods brought into town)
How was taxation made more efficient?
Tax collectors and inspectors
1807 cour de comptes established, bureau for handling state finances
Indirect taxes relied on to cover high war costs
Revenue from indirect tax
Increased by 400% between 1806-1812
12% government income
New currency
Franc germinal
Introduced March 1803
Soundest currency in Europe
Banque of France
1800
Provide credit for government and entrepreneurs
Controlled currency
1808 sub-branches set up across France
How was the french economy expanded
Jean-Antoine Chantal responsible
Introduced :
>bureau of statistics
>councils of agriculture, art and commerce In departments
>chambers of commerce
Where were the chambers of commerce established ?
23 largest cities
Societe d’encouragement pour l’industrie nationale
1801
Offered prizes, shared good practice, held industrial exhibitors
How much did wool production increase by?
400%
Production of luxury goods
Key focus for Napoleon
Silk exports increased from 26m francs in 1790 to 64m in 1812
Where was agricultural growth seen?
Areas where large landowners were willing to spend time and money introducing new scientific methods eg. Animal breeding and crop rotation
Where was agricultural growth on a smaller scale ?
The majority of France was owned by peasants who owned small tracts of land
Couldn’t afford to improve
Those who rented land had no incentive to improve land as their landlord may increase rent
General impact of war
Caused huge disruptions in industry
Empire never made enough money to cover costs of war
Economic problems created by war
Workers had to join army meaning there was a reduced labour force
Fewer works meant less prosperity so reduced demand for consumer goods
British naval blockade affected trade (eg Le Havre + Rouen)
How did Napoleon attempt to raise revenue for war costs?
Sold Louisiana to USA in 1806 for 50 million francs and cancellation of 18 billion francs worth of debt
Military expenditure
Increased from 700 million francs in 1806 to 1000 million in 1813
Continental system
Continental blockade 1806-1807
-all french trade with Britain banned
-Frances allies and natural counties should also ban trade with Britain or be treated as enemies
Outcome of continental system
French navy was not strong enough to enforce it
Smuggling undermined the system
Officials involved in contrabande (trade in illegal goods) & fraude (trade without paying duties)
Aim of continental system
Napoleon hoped that weakening Britain’s economy would lead to peace allowing British blockade to be lifted so France could trade across the Atlantic once more.
If Britain couldn’t trade with Europe french traders could fill the gaps
British response to continental system
Stop trade with France
Deprived french industries of raw materials
Badly hit wine trade
British was still able to trade with north and South America making up for the loss of trade with Europe
Which areas benefitted from the continental system
Alsace
Strasbourg
Limited consumer demand
Majority of population agricultural workers
Heavily taxed so had limited money to spend on non-essential
Worsening economic position
1806: expenditure higher than income first time since 1802
1809: poor harvest and banking crisis in Europe
1810: inflation + unemployment
1811: poor harvest
