Finance and the economy

The causes and extent of debt at the start of rein

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  • Created by: Ben
  • Created on: 18-05-12 19:19

The causes and extent of debt at the start of rein

Causes of debt

  • Wars expensive -mewrcenaries,wepons-income from the taille was reduced but the expenses of war increased
  • Inherited a debt from weak monarch1.8 million livres
  • Dislocation of war and trade
  • Bribery cost 30 million
  • Wanted to win support so didnt want to increae any taxes
  • Tax falming and corruption within


  • Debt =350 million 
  • Royla income-expenditure=18million
  • Corruption took 1/5 of annual income
  • Owed money to Liz(UK),Ger princes,Swiss cantons,Lyon Banks (1.8M),Duc of Tuscanny 
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Bankruptcy and the work of Sully in restoring fina

Sully was responsoible for the ending of FWR as he got money for Amiens mercenaries-good warrior-Grand Voyer-Superintendent of finances HE HALVED DEBT BY 1608-he also saw what went wrong previously with finance and HIV

  • The first was to regain authority in the estates and resumed control of arlords and military organisations who ad ablished taxes 
  • He was als strict in his treatment f tresury office and saced any slackers
  • 1/5 of amual income was lost due to corruption so Sully craked down and anybody who bought the right to collect taxes were subjected to judicial court and made to pay it back 
  • 'Anti crist of gratitude' Part payed- worked down his debt by only offering a fraction to the people who they were in debt with e.g. swizz 17%-resented
  • Frenchmen who leant money were refused money outright or given just a fraction
  • Lowed interest payeble rentes-some invalid-resentment
  • Dowry-250,000of debt-Also duc of tuscan debt removed 
  • Taxes introduced look below 
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Taxation and the elus

  • Pancrete-Summonded a Assembly of notibles-not very effective and passed the Pancrete-5% tax on all transactions-their was furious resistance-abolishd
  • V strict-anyone slacking was saked-harsh but effective
  • Third estate-his most impresive achievment was that he shifter taxes from the third estate-he lowered Taille and rasied Gabelle (salt) and wasnt a dramtic increase in taxes due to inflation.
  • Paulette- 'ingenious but fraudgulent'-was a tax on the class of office holders-was a short term solution-later
  • Elus-officals sent to maintain taxation
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golden age

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The development of industry and commerce

  • Imports-the long war had destroyed agriculture- Flooded with ENG and DUTCH imports-had to improve their own
  • Debased coins- was another issue an a new mint stoped this
  • End f war-Peasents could return to their jobs and a succesion of bumber harvests helped this and lowered grain price -introduced farming mauls
  • Grand voyerge- Sully also bean to reguild the infustructure which both gave people an icome and repaired trade and made it more efficvant-bridges,roads and canals
  • Loove-Henery wanted to keep the louve art display going prasising agriculture
  • Coucil of comerce- ambisious promoted industrial growth-Intorduced the SILK WORM and Geoblinns-wasnt v succesfult though 
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The reconstruction of paris

Major buildings

  •  Enlarment of the Louve
  • Built Pont Neuf (bridge) 
  • Hospital- St Francis 

They also rebuilt gates,ports and monuments destroyed using royal funds and other projects which attempted to remould the modern fabric of urban life

Some scholars argue it was Sully who was the driving force


  • restored faith in monarchy-impressive and showed an actual end to the FWR Golden age he also built statues ect declaring himself as the king-linked with it
  • Allowed Paris to become an investment opitunity -people began to invest money back into FRANCE-Place Rouyale and Dauphine were paid for by investors
  • Repaired roads bridges (Pont Neuf) and other buildings which increaded trade 
  • Give people work and Hugs more eqaulity it also sorted out the housing shortage which has been a resiult of pillaging 
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