1.3. Financial Problems And Attemps To Deal With Them

Question 1

When was the war of Austrian succession?

Answer 1

1740-1748

Question 2

How much did the war of Austrian succession cost?

Answer 2

1 billion livres

Question 3

When was the seven years war?

Answer 3

1756-63

Question 4

How much did the seven years war cost?

Answer 4

1.3 billion livres

Question 5

When was the American revolutionary war?

Answer 5

1778-83

Question 6

How much did the American revolutionary war cost?

Answer 6

1.07 billion livres

Question 7

How much was royal income in 1788?

Answer 7

503 million livres

Question 8

How much was royal expenditure in 1788?

Answer 8

629 million livres

Question 9

How was the cost of war covered?

Answer 9

By loans and taxation

Question 10

How much of royal expenditure was spent on interest by 1788?

Answer 10

60% of royal expenditure was spent on interest alone

Question 11

Why was the taxation system of the ancien regime inefficient?

Answer 11

There were lots of exemptions for estates

Question 12

What was tax farming?

Answer 12

A system where the Farmers-general paid an agreed sum to the crown and collected indirect taxation on the crowns behalf - keeping any surplus beyond the agreement as profit

Question 13

What was the tax system based on?

Answer 13

Tax farming

Question 14

Why were there complications of collecting taxes?

Answer 14

Each region had a different set of taxes and rules

Question 15

What did Louis XV think about the crowns expenditure?

Answer 15

He said après moi le deluge (it will be someone else’s problem when I die)

Question 16

How much was annual deficit by the 1780s?

Answer 16

37 million livres

Question 17

What was the total debt by the 1780s?

Answer 17

235 million livres

Question 18

Who was Turgot?

Answer 18

An eminent expert in economics who was heavily influenced by the philosophes of the period

Question 19

What did Turgot become?

Answer 19

Controller General of Finances

Question 20

When did Turgot become Controller General of Finances?

Answer 20

1774

Question 21

What was Turgot’s aim?

Answer 21

To modernise, create wealth and increase royal revenue

Question 22

What did Turgot introduce?

Answer 22

Six edicts

Question 23

When did Turgot introduce his Six Edicts?

Answer 23

1776

Question 24

What were Turgot’s six edicts?

Answer 24

1. Abolishing price controls
   2.reducing restrictions on trade by guilds and promoting entreprises
2. Proposed economies in crown spending
   4.a new property tax
   5.abolition of the corvée with a new system of road maintenance
3. Subject all three estates to taxation

Question 25

Why were there bread riots in France?

Answer 25

Poor harvests in 1774-76 and the end to price controls

Question 26

What happened to the bread riots?

Answer 26

Turgot harshly suppressed them

Question 27

What happened to Turgot?

Answer 27

Privileged interests in court turned against him, leading to his downfall in 1776

Question 28

What do many believe was the reason why the court turned against Turgot?

Answer 28

Marie Antoinette led it

Question 29

Who was Necker?

Answer 29

A Swiss Protestant who was a prominent lawyer and banker with a large fortune

Question 30

What did Necker become?

Answer 30

Directed General of Finances in 1777

Question 31

Why wasn’t Necker controller general of finances?

Answer 31

He was barred due to being foreign and Protestant

Question 32

What were Necker’s aims?

Answer 32

-To increase tax take by increasing the crowns share from the farmers general -To reduce the number of venal offices in charge of tax farming -To increase confidence in the crowns ability to repay loans

Question 33

How much did Necker borrow?

Answer 33

500 million livres

Question 34

What did Necker publish?

Answer 34

The Compte Rendu in 1781

Question 35

What was the compte rendu?

Answer 35

Misleading royal accounts to make finances look better

Question 36

What was on the compte rendu?

Answer 36

Salaries, pensions and royal household expenditure

Question 37

Why was Necker resigned?

Answer 37

The compte rendu angered the court

Question 38

When did Necker resign?

Answer 38

1781

Question 39

When was Necker recalled to office?

Answer 39

1788

Question 40

Why was Necker recalled to office?

Answer 40

He advocated for summing estates general to solve the financial issues

Question 41

When did Calonne take over?

Answer 41

1783

Question 42

What was the debt when Calonne took over?

Answer 42

Over 100 million livres

Question 43

What did Calonne establish?

Answer 43

A sinking fund and reissued gold coinage

Question 44

What was a sinking fund?

Answer 44

A long term savings account which set capital aside to help repay the debts

Question 45

Why did Calonne reissue gold coinage?

Answer 45

To prevent counterfeiting which was costly to the crown

Question 46

What was Calonnes three pronged approach?

Answer 46

1. Aimed to reduce the expenditure of the crown 2.a new progressive land tax which would be applied to all land owners 3.free trade would be developed internally to boost the economy

Question 47

What did Calonne do to try to prevent the parlements being hostile to these changes?

Answer 47

He called a special meeting of the assembly of notables to share the responsibilities for the reform

Question 48

When was the meeting of the assembly of notables?

Answer 48

22nd February 1787

Question 49

What happened after the assembly of notables meeting?

Answer 49

No agreement was made so Louis XVI withdrew his support for Calonne

Question 50

When was Calonne dismissed from office and exiled?

Answer 50

By April 1787

Question 51

What was the assembly of notables meeting and calonne’s exile called?

Answer 51

The aristocratic revolt