THE FRENCH REVOLUTION

UNIT 3 AREA OF STUDY 1: REVOLUTIONARY IDEAS, LEADERS, MOVEMENTS AND EVENTS

WEEK 3:The financial situation in France before 1781, attempts at

reform and the Assembly of the Notables

WEEK 3: FROM FINANCIAL CRISIS TO POLITICAL CRISIS (1787 –

1789)

In August 1786, Calonne, the King’s financial minister warned him of a serious financial crisis. Five decades of war and foreign loans had left the French in a precarious financial position. The monarchy, through the financial guidance of the King’s ministers, made various attempts at reform. Among these were the effort to reduce the privileges of the nobility. This was poorly received and resulted in an aristocratic revolt which drew into question the competence of the monarchy. The calling of an assembly of the notables sought to resolve this tension, but was unsuccessful and exposed the financial situation to the nation. The parlements, largely ran by the nobility, seized the opportunity to question the King’s right to control to tax, arguing it was the responsibility of the nation. This could be arranged through representatives of the three estates meeting at an assembly of the Estates-General, which had not been held since 1614. As the debate raged, it became clear that the French were in support on the parlements, and a meeting of the Estates-General was eventually arranged for May 1 1789. The three estates busied themselves electing representatives for this meeting at Versailles and drafting Cahier de Doléances: a list of grievances of each estate. The financial crisis had developed into a political crisis, and the events of the Estates-General would take France from a political crisis to Revolution.

Learning Outcome:Understand the financial situation in

France before 1781

• Understand the impact of war throughout the 18th century

• Understand the inadequacies of the taxation system in the Ancien Regime

• Understand the financial problems faced by the third estate and how this undermined the perceived competence of monarchy

FINANCIAL CRISIS In August 1786, Calonne, the King’s financial minister warned

him of a serious financial crisis. Five decades of war and foreign loans had left the French in a precarious financial position. The monarchy, through the financial guidance of the King’s ministers, made various attempts at reform. Among these were the effort to reduce the privileges of the nobility. This was poorly received and resulted in an aristocratic revolt which drew into question the competence of the monarchy. The calling of an assembly of the notables sought to resolve this tension, but was unsuccessful and exposed the financial situation to the nation. The parlements, largely ran by the nobility, seized the opportunity to question the King’s right to control to tax, arguing it was the responsibility of the nation. This could be arranged through representatives of the three estates through a meeting of the Estates-General, which had not held since 1614. As the debate raged, it became clear that the French were in support on the parlements, and a meeting of the Estates-General was eventually arranged for May 1 1789. The three estates busied themselves electing representatives for this meeting at Versailles and drafting the Cahier de Doléances: a book of grievances of each estate. The financial crisis had developed into a political crisis, and the events of the Estates-General would take France from a political crisis to Revolution.

• August 1786: The King’s financial minister, Calonne, informed Louis XVI of serious financial situation

• French fought four wars between 1733 – 1783:- 1733 – 1738: Conflict with Austrian Hadsburgs- 1745 - 1748: Conflict with Britain- 1756 – 1763: ‘Seven years War’ with Britain- 1775 – 1783: Assisted Americans fighting British rule (The American Revolution)- http://www.youtube.com/watch?v=0OLVBY_FccM

• This costs France £4000 million• France borrowed money: large financial debt resulted which made financiers

hesitant to lend more money• Third Estate already heavily taxed: Bankruptcy seemed inevitable• Richer classes are not supporting the economy through taxation: Clergy has

voluntary, minimal taxes. Nobility similar and collecting large amount of money for personal profit

FINANCIAL CRISIS: THE IMPACT OF WAR

COMPLETE THE FOLLOWING WRITING STEM USING EVIDENCE

The American Revolution was significant in relation to the French Revolution because….

PERCEPTION OF ROYAL WASTEFULNESS

• Lavish lifestyles of court nobility at Versailles: gardens, hairstyles, parties, hunting, eating

• Many people in the Third Estates were struggling with the continual rise of bread prices

• Poor harvests throughout this period (particulary 1788) made matters worse

• 6% of the royal budget was absorbed by the court

Class discussion: Understand the financial situation in France before 1781

• What was the financial impact of war throughout the 18th century?

• Why was the American War of independence so significant?

• Why did the taxation system in France not provide financial security for the monarchy?

• What forces for changes in financial management arose from the third estate?

ATTEMPTS AT REFORM In August 1786, Calonne, the King’s financial minister warned him of a serious financial crisis. Five decades of war and foreign loans had left the French in a precarious financial position. The monarchy, through the financial guidance of the King’s ministers, made various attempts at reform. Among these were the effort to reduce the privileges of the nobility. This was poorly received and resulted in an aristocratic revolt which drew into question the competence of the monarchy. The calling of an assembly of the notables sought to resolve this tension, but was unsuccessful and exposed the financial situation to the nation. The parlements, largely ran by the nobility, seized the opportunity to question the King’s right to control to tax, arguing it was the responsibility of the nation. This could be arranged through representatives of the three estates through a meeting of the Estates-General, which had not held since 1614. As the debate raged, it became clear that the French were in support on the parlements, and a meeting of the Estates-General was eventually arranged for May 1 1789. The three estates busied themselves electing representatives for this meeting at Versailles and drafting the Cahier de Doléances: a book of grievances of each estate. The financial crisis had developed into a political crisis, and the events of the Estates-General would take France from a political crisis to Revolution.

Learning Outcome:Attempts at reform

• Explain the role played by the Controller General in the Ancien Regime

• Understand what Necker’s ‘Compte Rendu Au Roi’ was and explain its significance

• Understand Calonne’s attempts at reforms and why they were unpopular

• Explain how Brienne sought to reform the country’s finances and the consequences of this

• Explain the Assembly of the Notables contributed to a Revolutionary situation

THE CONTROLLER GENERAL:THE KING’S ‘RIGHT HAND MAN’

• Like the finance minister of the country• Supervised expenditure (and austerity!)• Negotiated fiscal (taxation) reform• Settled financial claims against the government• Discussed financial matters with parlement and high

nobility

TURGOT (1774 – MAY 1776)

• Warned monarchy of approaching financial crisis

• Urged Louis to avoid involvement in the American/British conflict

NECKER (October 1776 – May 1781):THE COMPTE RENDU

• Reform through more efficient means of tax collections, but no new taxes (making him popular in the third estate)

• Cautioned Louis to be more austere with spending• Borrowed £520 million to finance war in America• 1781: He released his famous Compte Rendu (Complete

Review) of the nations finances: - Hid the interest of loans as normal expenditure - It showed that France fought the war in America, and had paid no new

taxes and had £10 million more revenue than expenditure

NECKER (October 1776 – May 1781):THE SIGNIFICANCE OF THE COMPTE RENDU

• Necker’s loans drove France further into financial disaster

• Deeply criticised by nobleman Calonne• Disguised drastic condition of the state’s

finances, giving impression that reforms did not seem urgent

• Implemented no financial reforms, which meant financial crisis worsened

Why, Jacques? Why?

CALONNE (November 1783 – 1787)

• Calonne calculated debt after war as £1066 million!• Proposed uniform land tax: This would get money out of the

nobles and clergy• Proposed to abolish ‘tax farming’ and give provincial

assemblies this role• Launched new loans• Abolished internal and external tariffs to stimulate economic

activity• Rather than consulting parlements, suggested an Assembly of

the Notables to discuss these issues

Something important happened during Calonne’s time in power. Anybody?

That’s right:The Assembly of the Notables!

But more on that later.

BRIENNE’S ATTEMPTS AT REFORM (May 1 1787 – 25 August 1788

• Cancelled idea of provincial assemblies calculating and collecting tax

• Supported the King in despotic measures to control subversive members of the Parelement

Understanding attempts at reform

Complete the following table in your work books (pairs)

CONTROLLER GENERAL AND DATE

ATTEMPT AT REFORM POSITIVE ASPECTS

NEGATIVE ASPECTS

LIKELY REACTION OF THE

PARLEMENT

ARISTOCRATIC REVOLT In August 1786, Calonne, the King’s financial minister warned him of a serious financial crisis. Five decades of war and foreign loans had left the French in a precarious financial position. The monarchy, through the financial guidance of the King’s ministers, made various attempts at reform. Among these were the effort to reduce the privileges of the nobility. This was poorly received and resulted in an aristocratic revolt which drew into question the competence of the monarchy. The calling of an assembly of the notables sought to resolve this tension, but was unsuccessful and exposed the financial situation to the nation. The parlements, largely ran by the nobility, seized the opportunity to question the King’s right to control to tax, arguing it was the responsibility of the nation. This could be arranged through representatives of the three estates through a meeting of the Estates-General, which had not held since 1614. As the debate raged, it became clear that the French were in support on the parlements, and a meeting of the Estates-General was eventually arranged for May 1 1789. The three estates busied themselves electing representatives for this meeting at Versailles and drafting the Cahier de Doléances: a book of grievances of each estate. The financial crisis had developed into a political crisis, and the events of the Estates-General would take France from a political crisis to Revolution.

THE ARISTOCRATIC REVOLT

• Privileged orders refused these reforms• International financiers (Amsterdam and

London) became reluctant to give loans without support of nobles and parlements

• This revolt began to draw in bourgeoisie and peasants, who also wanted changes to ancien regime

THE ASSEMBLY OF THE NOTABLES In August 1786, Calonne, the King’s financial minister warned him of a serious financial crisis. Five decades of war and foreign loans had left the French in a precarious financial position. The monarchy, through the financial guidance of the King’s ministers, made various attempts at reform. Among these were the effort to reduce the privileges of the nobility. This was poorly received and resulted in an aristocratic revolt which drew into question the competence of the monarchy. The calling of an assembly of the notables sought to resolve this tension, but was unsuccessful and exposed the financial situation to the nation. The parlements, largely ran by the nobility, seized the opportunity to question the King’s right to control to tax, arguing it was the responsibility of the nation. This could be arranged through representatives of the three estates through a meeting of the Estates-General, which had not held since 1614. As the debate raged, it became clear that the French were in support on the parlements, and a meeting of the Estates-General was eventually arranged for May 1 1789. The three estates busied themselves electing representatives for this meeting at Versailles and drafting the Cahier de Doléances: a book of grievances of each estate. The financial crisis had developed into a political crisis, and the events of the Estates-General would take France from a political crisis to Revolution.

THE ASSEMBLY OF THE NOTABLES(Feb - May 1787 and Nov – Dec

1788)

• In February 1787, Calonne called an Assembly of Notables to discus financial situation in France

• Almost entirely noble class who had close connections to Versailles

• They supported equal taxation in theory: few voted to be exempt from tax

• Accept provincial assemblies allocating and collecting tax• Accept idea of tax by representation• Large land owners don’t agree with Calonne’s land tax• Calonne is dismissed April 1788

THE EFFECT OF THE ASSEMBLY OF THE NOTABLES

• Nation’s finances had become a matter of public discussion (not a state matter)

• Information about finances leaked and people became aware of the severity of the problem

• Calonne published an article condemning the Assembly of the Notables, further aggravating the general population

BRIENNE AND THE ASSEMBLY OF TE NOTABLES

• Cancelled idea of provincial assemblies calculating and collecting tax

• Nobles demanded a committee to audit royal spending: Louis refused!

• Notables refused to authorise any further taxes, claiming only the ‘Estates-General’ had this right

• Brienne then closed the assembly

Class discussion:Attempts at reform

• What the role played by the Controller General in the Ancien Regime

• What was Necker’s ‘Compte Rendu Au Roi’ and why was it significance?

• Why were Calonne’s attempts at reforms unpopular?

• What were the consequences of Brienne’s reforms?

• What was the Assembly of the Notables and how did if contribute to a Revolutionary situation?