Back Aa

French Revolution

{25} <h3> CHAPTER III </h3> <h3> ECONOMIC CRISIS </h3> Even under such conditions the Bourbon monarchy might have survived much longer had it not failed badly at one specific point. Napoleon himself declared that it was in its financial management that the ancien régime had broken down; and although for a long period historians chose to accentuate the political and social aspects of the Revolution, of recent years the economic has been the point of emphasis. And it was to consider a financial problem that the States-General were summoned in 1789; while most of the riots that broke out in Paris that same year were due to scarcity of food. The editors of the Encyclopaedia had not neglected economic questions, and had given much employment to a number of writers who ranked as Economists or as Physiocrats. Among the men most interested in such questions were Quesnay, the physician of Madame de Pompadour; Turgot, the ablest minister of {26} Louis XVI, and the Marquis de Mirabeau, father of a more famous son. They concerned themselves, among other things, with theories of agriculture largely based on the conditions of their country. With her large population France could with difficulty produce sufficient food for her people. The wheat which she did produce was brought to market under extremely bad conditions of distribution and of payment. The century witnessed what appeared to be an endless succession of short crops and consequent famine. Viewing these conditions as a whole, the economic thinkers concluded that the foundations of the State must repose on agriculture, and they quickly voiced a demand that there should be encouragement for the production of wheat and free circulation. Towards the end of the reign of Louis XV the effect of these economic doctrines began to be felt. Several efforts were made to remove the restrictions on the circulation of wheat. These efforts, however, proved unavailing until after the meeting of the States-General, and that largely because of the powerful interests that were concerned in maintaining the wheat question as it then existed. The conditions were curious and are of great importance in {27} their relation to the outbreak of the Revolution. Wheat had become the great medium of financial speculation. It was an article that came on the market at a stated period in large quantities, though in quantities which experience showed were rarely sufficient to meet the requirements of the succeeding twelve months. The capitalist who could pay cash for it, and who had the means of storing it, was therefore nearly certain of a moderate profit, and, if famine occurred, of an extravagant one. That capitalist of necessity belonged to the privileged classes. Frequently religious communities embarked in these ventures, and used their commodious buildings as granaries. Syndicates were formed in which all varieties of speculators entered, from the bourgeois shopkeeper of the provincial town to the courtier and even the King. But popular resentment, the bitter cry of the starving, applied the same name to all of them: from Louis XV to the inconspicuous monk they were all accapareurs de blé, cornerers of wheat. And their profits rose as did hunger and starvation. The computation has been put forward that in the year 1789 one-half of the population of France had known from experience the meaning of the {28} word hunger; can it be wondered if the curse of a whole people was attached to any man of whom it might be said that he was an accapareur de blé? The privileged person, king or seigneur, bishop or abbot, levied feudal dues along the roads and waterways, so that a boatload of wine proceeding from Provence to Paris was made to pay toll no less than forty times en route. He owned the right of sitting as judge in town or village, and of commanding the armed force that made judgment effective. Where he did not own the freehold of the farm, he held oppressive feudal rights over it, and in the last resort reappeared in official guise as one of an army of officials whose chief duty it was not so much to ensure justice, good government, or local improvement, as to screw more money out of the taxpayer. Chief of all these officials were the King's intendants, working under the authority of the Controleur-Genéral des Finances. The Controleur was the most important of the King's ministers, and had charge of nearly all the internal administration of the kingdom. He not only collected the revenue, but had gradually subordinated every other function of government to that one. So he took charge {29} of public works, of commerce and of agriculture, and directed the operations of an army of police, judicial and military officials—and all for the more splendid maintenance of Versailles, Trianon, and the courtiers. In the provinces he was represented by the intendant. This official's duties varied to a certain extent with his district or généralité. In administration France showed the transition that was proceeding from feudalism to centralized monarchism. Provinces had been acquired one by one, and many of them still retained local privileges. Of these the chief was that of holding provincial Estates, and where this custom prevailed, the chief duty of the Estates lay in the assessment of taxes. Where the province was not pays d'état, it was the intendant who distributed the taxation. He enforced its collection; directed the maréchaussée, or local police; sat in judgment when disorder broke out; levied the militia, and enforced roadmaking by the corvée. Thirty intendants ruled France; and the modern system with its prefects is merely a slight modification devised by Napoleon on the great centralizing and administrative scheme of the Bourbon monarchy. The taxes formed a somewhat complicated {30} system, but they may, for the present purpose, be grouped as follows: taxes that were farmed; direct taxes; the gabelle; feudal and ecclesiastical taxes. In 1697 had begun the practice of leasing indirect taxes for the space of six years to contractors, the fermiers généraux. They paid in advance, and recouped themselves by grinding the taxpayer to the uttermost. They defrauded the public in such monopolies as that of tobacco, which was grossly adulterated; and they enforced payments not only with harshness and violence, but with complete disregard for the ruin which their exactions entailed. The government increased the yield of the ferme in a little less than a century from 37 to 180 millions of livres or francs,[1] and yet the sixty farmers continued to increase in wealth. They formed the most conspicuous group of plutocrats when the Revolution broke out and were among the first victims of popular indignation. Of the direct taxes the most important in every way was the taille. It brought in under Louis XVI about 90 millions of francs. It represented historically the fundamental right of the French monarch to tax his {31} subjects delegated to him by the Estates of the kingdom in the 15th century. By virtue of that delegated power it was the Royal Council that settled each year what amount of taille should be levied. It was enforced harshly and in such a manner as to discourage land improvement. It was also the badge of social inferiority, for in the course of centuries a large part of the wealthier middle classes had bought or bargained themselves out of the tax, so that to pay it was a certain mark of the lower class or roture. Taillable, roturier, were terms of social ostracism impatiently borne by thousands. Other direct taxes were the capitation, bringing in over 50 millions, the dixiéme, the don gratuit. But more important than any of these was the great Government indirect tax, the monopoly on salt, or gabelle. Exemptions of all sorts made the price vary in different parts of France, but in some cases as much as 60 francs was charged for the annual quantity which the individual was assessed at, that same individual as often as not earning less than 5 francs a week. So much smuggling, fraud and resistance to the law did the gabelle produce that it took 50,000 officials, police and soldiers, to work it. In the year 1783 no less {32} than 11,000 persons, many of them women and children, were arrested for infraction of the gabelle laws. Last of all, the tithe and feudal dues were added to the burden. The priest was maintained by the land. The seigneur's rights were numerous, and varied in different parts of the country. They bore most heavily in the central and northeastern parts of France, most lightly in the south, where Roman law had prevailed over feudal, and along most of the Atlantic coast line, as in Normandy. These feudal dues will be noticed later in connection with the famous session of the States-General on the 4th of August, 1789. In all this system of taxation there was only one rule that was of universal application, and that was that the burden should be thrown on the poor man's shoulders. The clergy had compounded with the Crown. The nobles or officials were the assessors, and whether they officiated for the King, for the Provincial Estates or for themselves, they took good care that their own contributions to the royal chest should be even less proportionately than might legally be demanded of them. And after all the money had been driven into the treasury it was but too painfully evident what became {33} of it. The fermiers and the favourites scrambled for the millions and flaunted their splendour in the face of those who paid for it. The extravagance of the Court was equalled only by its ineptitude. No proper accounts were kept, because all but the taxpayers found their interest in squandering. Under Madame de Pompadour the practice arose that orders for money payments signed by the King alone should be paid in cash and not passed through the audit chamber, such as it was. Pensions became a serious drain on the revenue and rapidly grew to over 50 millions a year at the end of the reign of Louis XVI. They were not infrequently granted for ridiculous or scandalous reasons, as in the case of Ducrest, hairdresser to the eldest daughter of the Comtesse d'Artois, who was granted an annual pension of 1,700 francs on her death; the child was then twelve months old; or that of a servant of the actress Clairon, who was brought into the Oeuil de Boeuf one morning to tell Louis XV a doubtful story about his mistress; the King laughed so much that he ordered the fellow to be put down for a pension of 600 francs! With its finances in such condition the Bourbon monarchy plunged into war with England {34} in 1778, and, for the satisfaction of Yorktown and the independence of the United States, spent 1,500 millions of francs, nearly four years' revenue. At that moment it was estimated that the people of France paid in taxation about 800 millions annually, about one-half of which reached the King's chest. But the burden of debt was so great that by 1789, nearly 250 millions were paid out annually for interest. To meet this situation the Government tried many men and many measures. There were several partial repudiations of debt. The money was clipped, much to the profit of importers from Amsterdam and other centres of thrift. Necker made way for Calonne, and Calonne for Necker. But these names bring us to the current of events that resulted in the convocation of the States-General by Louis XVI, and that must be made the subject of another chapter. [1] The franc comes into use at the period of the Revolution. It will be employed throughout instead of livres as the standard denomination. <div style="break-after:column;"></div>

1 of 2

2 of 2

Update Required To play the media you will need to either update your browser to a recent version or update your Flash plugin.