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Factor contributing to the financial difficulties of the crown prior to…
Factor contributing to the financial difficulties of the crown prior to the revolution
Wars
Seven years war 1756-63
against Great Britain and colonies = expensive and disastrous
France allied with the Austrians but lost defeats in India and N America
The peace of Paris 1763 was when Britain too control of French parts of Canada and India, W Africa and islands in W Indies.
American war of independence
France joined in 1778 providing military and financial help for the US
Lafayette key general
Cost was major plunging France into financial crisis despite victory
Provided ideas of how to overthrow a key government and soldiers thought this should happen in France
France fought a number of financially ruining wars in the 18th C
Wars of the Spanish 1701-12
Polish (1733-35
Austrian (1740-48
Wars funded by borrowing
The economic condition of France
Wars were funded by borrowing loans meant future repayment debts
in peacetime royal income was not enough to cover expenditure because of the size of the interest payments
To try to meet costs placed maximum taxes and temp taxes
e.g. Vingtieme which was a levy on income paid by all except clergy
introduced in 1749 and still around in 1780
France considered well off but money locked up in Govt and the attitudes of Ancien regime
those in the first 2 estates exempt from tax and the overriding ambition of the most successful merchants and traders to amass enough wealth to buy an office - resistance to tax made it difficult for govt to fund wars
greatest wealth did not contribute to economy
Tax collection was both chaotic and incomplete with all regional differences
Tax farming reduced the crown's income - The Farmer's general paid on agreed sums in advance for the right to collect certain taxes - what they collected about that was their profit
The finance advisors could do little about this as new taxes which included all were declined by assembly of notables
Calonne wanted a land tax
COUNTRYSIDE
LT issue of land holding
land divided equally when someone died
the cumulative effect of this was smaller estates
By 1789, 1/4 of French farmland was owned by small peasant farmers and much of the rest rented out in small plots
led to subsidence farming with no incentive to make improvements in methods or crops
TOWNS
Dramatic growth due to industries and foreign trade
Poor areas became densely populated = bad conditons
depended on bread and sudden rises in prices cause disorder
BREAD RIOTS 1789
Attacks on unpopular employers - Riots against wallpaper manufacturer Revillon in Paris April 1789
Wealthiest lives in towns e.g. Nobles and Bourgeoisie
majority of the population was unskilled workers and urban poor
BAD HARVESTS
1779/80's
1780's = shortage of grain and led to rising food prices
rose 89% in 1789 = STARVATION
Population was increasing and food shortages began to rise out of proportion to income
Decline in the manufacturing industry and further increase in unemployment
Harder for government to collect taxes so more loans taken out.
The Eden treaty 1786
damaging to economy and harvests
Signed in Paris provided a mutual lowering on tariffs and import duties between Britain and France
Grain, wine and brandy were able to enter Britain with lower tariffs than elsewhere
Cottons, hardware and industrial products from Britain would similarly enter France on lower tariffs
however, the economic crisis in France meant there there was not a surplus of food and drink to sell to Britain whilst British textiles and industrial goods were able to swamp the French marker, inflicting considerable damage on the French industry
The monarchy's spending
Marie Antoinette has been accused of lavish spending
always pictured with massive hair do's
expensive jewellery
known for lavish spending
Trianon Palace
in 1774 Louis gave her a place in the grounds of Versailles
she spend huge sums of money planting gardens around it
also built a hamlet in the gardens inc cottages and animals
total cost 50,000 Francs
Diamond Necklace Affair
in 1785 rumours arose that the queen wanted to buy a fabulously expensive necklace
Cardinal de Rohan, a gullible courtier secured it for her
Comtesse de Lamotte boasted of a close friendship with Queen and de Rohan befriended her to gain favour
2 jewellers were selling the necklace - she then forged papers to pay for it and when the jewellers complained to the queen that they were insufficient, the scandal released
De Rohan put to trial 1786
he was greeted by cheering crowds on release and humiliated queen
King appeared 'well fed' as he had banquets etc... while the poor suffered with no bread and rising prices.