Financial And Economic Policies and Problems
- Created by: lou9119
- Created on: 24-01-18 16:21
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- Financial and Economic Policies and Problems
- 1799 the gov treasury was almost empty and debts amounted to over 450 mill livres. N made reforms to rationalise and stabilise gov funding. This included the appointment of able men.
- Reforming gov Ministries
- Ministry of Treasury, headed by Barbe-Marbois, was responsible for gov expenditure.
- Minsitry of Finances, headed by Gaudin, was responsible for the collection of taxation and revenues.
- An audit office was set up n 1807 to check on all gov spending.
- Taxation
- Gaudin took control of the assessment and collection of direct taxes away from local authorities, Centralised control led to improvements.
- The main direct tax was land tax. Land registers showing ownership were drawn up and tax registers showing who should pay were improved.
- Made tax fair and efficient. Throughout the period land tax provided 29% of all gov income but it did not need to be increased, this would have upset N's key supporters.
- The main direct tax was land tax. Land registers showing ownership were drawn up and tax registers showing who should pay were improved.
- Indirect taxes were increased to pay for war. 1804 responsibility for the collection was given to central excise office.
- As well as continuing the unpopular taxes on goods initiated by the Directory, new ones were added on wine, playing cards and salt. Income from these covered 25% of gov income.
- Gaudin took control of the assessment and collection of direct taxes away from local authorities, Centralised control led to improvements.
- Central Economy
- Bank of France
- Founded by N in 1800 as a private bank, it had a range of public functions however, including the right to issue paper notres. Later it had strict controls placed upon it. Having a central bank made the task of raising finance much easier.
- Currency
- N introduced a new currency (franc de germinal) based on coins. He was depicted as a Roman Emperor. Strict control ensured this was a stable currency which was a strong base for the economy.
- Industry
- Cotton industry grew dramatically dueto using British machines, demand increase and no competition due to the war. However other textile industries decline.
- The chemical industry made some developments such as soap making. The iron industry benefited from the demand for war armaments but did not make significant technological advances.
- Cotton industry grew dramatically dueto using British machines, demand increase and no competition due to the war. However other textile industries decline.
- Agriculture
- No changes in farming methods and little investment. Only change was growing of sugar beet and chicory to replace colonial imports of sugar and coffee cut off by the war.
- Bank of France
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