Financial and economic policies and problems

Question 1

Aims of Napoleon’s economic reforms ?

Answer 1

• Pay for war
• Maintain the Empire
• Ensure political stability

Question 2

4 areas of economic reform

Answer 2

• Economic growth
• Impact of war / continental system
• Taxation
• Money supply

Question 3

When was there a good harvest and when did this decline ?

Answer 3

• Prior to 1806 good harvests helped agriculture but conditions declined after 1809

Question 4

What was the government policy to make up for the loss of imports from French colonies and why ?

Answer 4

• The development of ‘replacement crops’ eg sugar, dye and cotton to make up for the loss of imports from French colonies due to wartime disruption

Question 5

Who was French industry lagging behind and why ?

Answer 5

• Britain due to a decade of War + The Revolution

Question 6

What did Chaptal do and who was he ?

Answer 6

1. Minister of the Interior
2. Set up the Bureau of statistics to gather info about the scale of problems in industry, agriculture and overseas trade
   Chaptal encouraged merchantisation to enable the mass production of consumer goods

Question 7

What was established in each department ?

Answer 7

• Organisations to stimulate business and boost innovation (eg Chambers of commerce ; trade councils)

Question 8

What were the increases in wool production and silks ?

Answer 8

1. By 1811 wool production had increased by 400%

2. Exported silks had tripled in value since 1789

Question 9

What was the largest sector of the economy and what were its issues ?

Answer 9

• Agriculture and some regions had seen improvements as a result of the innovations modelled on British ideas
• The majority of land was modelled by peasants who didn’t have the resources to introduce new methods or equipment

Question 10

How did Napoleon attempt to boost French trade and why did it fail ?

Answer 10

• Napoelon’s continental system (economic warfare against Britain)
• Intended to boost French trade but failed due to a lack of enforcement and widespread smuggling

Question 11

How did Napoleon pay for war ?

Answer 11

• Had to take out loans, increase taxation, selling land eg Louisiana and looting from conquered territories

Question 12

Where did war effect overseas trade ?

Answer 12

• In the West due to British naval blockades

- Effected cities like La Havre, Rouen and Marseilles

Question 13

Positive and negative impacts of the war for the economy

Answer 13

+ Stimulated demand for certain products

- Workforce was lost to the army which reduced internal demand

Question 14

What did the government become increasingly reliant on ?

Answer 14

• Indirect taxes eg alcohol, salt, tobacco and playing cards quadrupled

Question 15

What tax was kept ? (2)

Answer 15

• The Directory’s land tax was kept AND a land register to allow for the accurate assessment for tax liability began but was only 20% complete by 1815
• Tax on personal property collected in urban areas during the consulate but only brought in a small revenue

Question 16

What was reintroduced and what were it’s impacts ?

Answer 16

• The Octrois was reintroduced to replace personal property tax which had a disproportionate effect on ordinary people and was hated

Question 17

What was introduced in 1807 ?

Answer 17

The central Bureau which was responsible for handling and auditing state finances

Question 18

How was tax collected ?

Answer 18

• Each department had tax collectors appointed centrally and paid in proportion to the amount collected

Question 19

What were most increases in revenue offset by ?

Answer 19

• Cost of maintaining Empire / cost of war

Question 20

What helped bring about economic stability ?

Answer 20

-The only legal tender would be metal coinage (not the worthless paper money)

Question 21

What was established in 1800 ?

Answer 21

• The Bank of France
• To provide credit for the government and business + to control the national currency
• Ensured Napoleon could raise loans to pay for his policies/the war at a reasonable rate
• Napoleon was appointed governor of the Bank
• 1808 - sub branches were set up in French towns where trade was growing so small loams would be helpful n

Question 22

How did the Bank benefit Napoleon’s foreign policy ?

Answer 22

-Ensured loans could be raised to pay for the war and his policies at a reasonable interest rate

Question 23

Who was appointed as Governor of the bank ?

Answer 23

Napoleon

Question 24

What was set up after 1808 ?

Answer 24

• Sub-branches of the Bank of France where trade was growing and having access to small loans would be helpful