Economic Problems & Royal Finance Flashcards Preview

French Rev - Origins Of The French Revolution > Economic Problems & Royal Finance > Flashcards

Flashcards in Economic Problems & Royal Finance Deck (15):
1

What were some signs that French economy was thriving in the first half of the 18th century?

- France was large and there was a rapid growth in population from the late 1730s.

- France was united and politically stable, was a greater power than Spain.

- France had a lot of land suitable for farming. (Created a rising demand).

2

What happened regarding trade in the mid 17th Century?

Trade with the colonies quadrupled, making trading ports very prosperous.

3

What were some economic problems in the 1770s and 80s?

- Food production could not keep up with the population growth. Rural overpopulation.

- The state imposed many regulations on the domestic economy. (Set requirements for production).

- France lacked a network of rivers and canals to carry goods, especially grain.

- In 1780s there was a decline in France's textile industry in the face of British competition.

- A series of bad harvests and winters from 1785-9.

4

How was government financed?

From direct and indirect taxation.

5

What was the don gratuit?

A 'voluntary gift' paid by the church every five years.

Amounting to approximately 2% of Church's total revenue.

6

Who collected indirect taxes?

Tax farmers

Corrupt system

7

At times of heavy expenditure, what did the government have to rely on?

Loans which built up into substantial royal debt

8

When Louis XIV died in 1715, what was Frances National Debt?

2 billion livres

(150 million pounds)

9

What is a balance of payments crisis?

When someone is spending more (outgoings) than they earn (revenue).

10

What was the controller-general?

Title taken by the minister in charge of finances in France between 1661-1791

11

What active measures did Turgot take in 1774-6?

- Cuts to royal expenses

- Demand that government departments submit their expenses to the Controller General and find ways of reducing their spending

- The removal or reduction of a number of pensions

- Some reforms of the tax farming system to increase efficiency

12

What ideas of Turgot were opposed?

- His idea of replacing indirect taxes with a property tax

- His idea of establishing free trade in grain, ending tolls and price controls

- His 'Six Edicts' of 1776, expressed the desire to abolish all privilege and to tax all

13

How did Necker continue Turgot's cost cutting measures from 1777-81?

- He reduced royal household expenses and pensions

- He appointed salaried officials to run the royal estates

- He removed the vingtiéme on industry

14

Who was the most popular Controller-General in the 1770s-80s?

Necker was extremely popular with the ordinary people in France.

- Partly for his attacks on vested interests

- Partly because he involved France in a successful war without raising taxes

15

In 1786, Calonne put forward a reform package, what were some of its main ideas?

- A general land tax

- An extra indirect tax on legal documents

- Tax on landowners

- The removal of controls on grain trade