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 EstatesGeneral would take France from a political crisis to Revolution.
FINANCIAL CRISIS: THE IMPACT
OF WAR
•
•
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
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
Why, Jacques? Why?
• 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
CALONNE (November 1783 – 1787)
Something important
happened
during
That’s right:
Calonne’s
time
in
The Assembly
of the
Notables!
power. Anybody?
But more on that later.
• 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
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)
CONTROLLE
R 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?