Economic problems and Royal finances

Question 1

Balance of Payment crisis

Answer 1

• Seven Years War - cost 2.3 billion livres
• 1783 - American war of independence left a debt of 3.3 billion Livres

Question 2

When was the War of Austrian succession and what was its estimated cost?

Answer 2

1740-48
1 billion livres

Question 3

When was the Seven Years’ War and what was its estimated cost?

Answer 3

1756-63
Around 1.8 billion livres

Question 4

What did the lack of royal income mean for France

Answer 4

In the short term the Crown borrowed from international banks
In the long term the debt became worse because of the interest size

Question 5

How was the tax system inefficient

Answer 5

The nobles, King’s richest subjects, were exempt from most taxes
Tax collection was chaotic and ineffective because of regional differences

Question 6

When was Turgot appointed as Controller-General and what successful reforms did he introduce

Answer 6

1776
Cuts to royal expenses
Removal of a number of pensions
Reforms to tax-farming system to increase efficiency

Question 7

What unsuccessful reforms did Turgot introduce

Answer 7

‘Six Edicts’ of 1776
Abolish privilege and to tax all
Abolish Corvee
Met with heavy opposition
Forced to resign in 1776 and edicts were forgotten

Question 8

When was Necker appointed as Director General of Finances and what successful reforms did he introduce

Answer 8

1777
Reduced number of tax farmers from 60 to 40
Removed vingtieme on industry

Question 9

How was Necker’s ‘budget statement’ a failure

Answer 9

King and courtiers saw publication as a breach of royal protocol
Inaccurate, suggested France had a surplus of 10 million livres rather than substantial debt

Question 10

Necker’s resignation

Answer 10

1781
Many enemies at court, including Marie-Antionette helping bring about his resignation

Question 11

When was Calonne appointed as Controller-General and what reforms did he introduce

Answer 11

1783
Reform package:
General land tax (abolition of current vingtiemes)
Establishment of provincial assemblies
End of corvee royale, to be replaced by tax on landowners

Question 12

How did Calonne fail to see the full implications of the reform package and what did it lead to

Answer 12

Introducing a land tax, payed by all including the Church
Likely to have profound social effects, hitting at hierarchy of Ancien Regime
Led to ‘Assembly of Notables’ (to discuss measures)