Attempts at financial reform 1786-1789
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- Created on: 07-04-18 08:50
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- Attempts at financial reform 1786-1789
- 1781: Necker dismissed
- Successor Joly de Fleury discovered the true nature of France's finances
- The Treasury was 160 million livres short for 1781
- The Treasury was 295 million livres short for 1782
- Fleury and Calonne attempted to undo Necker's work
- Resumed venality
- Borrowed much more heavily than Necker
- Successor Joly de Fleury discovered the true nature of France's finances
- August 1786: The government was verging on bankruptcy
- Revenue was 475 million livres, expenditure was 587 million livres
- A deficit of 112 million livres
- The deficit increased to 126 million livres in two years
- Revenue was 475 million livres, expenditure was 587 million livres
- Reasons for the deficit
- War
- 1740-1783: France was at war for 20 years
- War of Austrian Succession (1740-1748)
- Seven Years War (1756-1763)
- American War of Independence (1778-1783)
- Cost 1,066 million livres
- Achieved through Necker raising loans rather than taxes
- Lack of an elected parliament to guarantee loans did not give lenders confidence
- Achieved through Necker raising loans rather than taxes
- Cost 1,066 million livres
- 1740-1783: France was at war for 20 years
- Tax
- The Crown was not receiving much of the money collected in taxes
- Tax farming was inefficient
- Many tax collectors had bought their positions through venality
- Could not be dismissed
- Could overtly manipulate the taxation system to their own benefit
- Could not be dismissed
- The Crown was not receiving much of the money collected in taxes
- War
- 1786: Calonne's reform plan
- Replace the capitation and the vingtieme on landed property by a single land tax
- Universal
- Stimulate the economy to ensure future tax revenues would increase
- Abandon controls on the grain trade
- Abolish internal customs barriers
- Prevented the free movement of grain
- Restore national confidence to secure new loans
- Achieve some display of national unity and consensus
- Failure
- Should have called the Estates General
- Deemed too unpredictable
- Instead called the handpicked Assembly of Notables
- Anticipated to be a pliant body who would easily agree to the reforms
- Met February 1787
- They would not collaborate with Calonne and Louis in agreeing the reforms
- They had the most to lose as members of the privileged order
- HOWEVER: They did agree that taxation should be extended to all
- Argued that new taxes could only be approved by a representative body
- The Estates General
- Argued that new taxes could only be approved by a representative body
- They would not collaborate with Calonne and Louis in agreeing the reforms
- Should have called the Estates General
- Replace the capitation and the vingtieme on landed property by a single land tax
- The political crisis 1787-1788
- 1787: Calonne replaced by Brienne (Notable)
- The Assembly of Notables was no more cooperative with Brienne
- 1787: Brienne's reform plan
- Universal land tax
- Ending of venal financial officials
- Create a central treasury
- Create a concrete and accessible set of laws
- Reform education
- Introduce religious tolerance
- Create a more efficient armed forces
- The Parlement of Paris refused to approve the reforms
- Said that only the Estates General could consent to any new taxes
- 15 August 1787: Louis exiled the Parlement to Troyes
- Considered to be high handed and led to an aristocratic revolt
- Riots in some of the provincial capitals where the parlements met
- E.g. Rennes in Brittany and Grenoble in Dauphine
- Nobles met in unauthorised assemblies across the country
- Discussed action in support of the parlements
- An assembly of clergy joined in on the side of the parlements
- Breaking its long tradition of loyalty to the Crown
- Condemned the reforms
- Voted a don gratuit of less than a quarter the size requested by the Crown
- HOWEVER: Opposition was fragmented and dispersed
- Riots in some of the provincial capitals where the parlements met
- Considered to be high handed and led to an aristocratic revolt
- 1787: Calonne replaced by Brienne (Notable)
- August 1788: The royal treasury was empty
- The Estates General was summoned for 1 May 1789
- Navy minister, Marquis de Castries
- "As a Frenchman I want the Estates General, as a minister I am bound to tell you that it might destroy your authority."
- Navy minister, Marquis de Castries
- 16 August 1788: Brienne suspended all payments from the royal treasury
- Acknowledging that the Crown was bankrupt
- The Estates General was summoned for 1 May 1789
- September 1788: Louis was forced to allow the Paris parlement to return
- Brienne resigned
- Louis recalled Necker
- Abandoned reform plans
- Would raise new loans
- Would not do anything until the Estates General had met
- Louis recalled Necker
- Brienne resigned
- Impact of the political crisis
- Showed the limitation of royal power
- Although Louis was the absolute ruler, he could not impose reforms on the State
- The forces of opposition detected clear signs of weakness in the Crown
- The failure to secure reform contributed to a paralysis of the government
- Short term: Very signficant
- Showed the limitation of royal power
- 1781: Necker dismissed
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