Objectives:
1. To understand the nature of the Ancient Regime that existed in France on the eve of the French Revolution of 1789.
2. To have an insight into the political, social and economic conditions in France which ultimately led to the Revolution of 1789.
1.1. Introduction
Towards the end of the eighteenth century, an uprising staged by the French people against the autocracy and aristocracy, which came to be known as the French Revolution, shook Europe. The French Revolution brought about a major transformation of the society and political system in France that lasted from 1789 to 1799. During the course of the Revolution, France was temporarily transformed from an absolute monarchy, where the king monopolized power, to a republic of theoretically free and equal citizens. The effects of the French Revolution were widespread, both inside and outside of France, and the Revolution ranks as one of the most important events in the history of Europe. During the ten years of the Revolution, France first transformed and then dismantled the Ancient Regime (Old Order), the political and social system that existed in France before 1789, and replaced it with a series of different governments. Although none of these governments lasted more than four years, the many initiatives they enacted permanently altered France‘s political system. These initiatives included the drafting of several bills of rights and constitutions, the establishment of legal equality among all citizens, experiments with representative democracy, the incorporation of the church into the state, and the reconstruction of state administration and the law code. Many of these changes were adopted elsewhere in Europe as well. Change was a matter of choice in some places, but in others it was imposed by the French army during the French Revolutionary Wars (1792-1797) and the Napoleonic Wars (1799-1815). To later generations of Europeans and non-Europeans, who sought to overturn their political and social systems, the French Revolution provided the most influential model of popular insurrection until the Russian Revolution of 1917.
2 1.2 Background of the French Revolution of 1789:
Historians are not unanimous regarding the factors that brought about the Revolution of 1789 in France. To some extent at least, the Revolution broke out not because France was backward but because the country‘s economic and intellectual development was not matched by social and political change that was taking place in France. In the fixed order of the ancient regime most bourgeoisie were unable to exercise political and social influence in the state. King Louis XIV, by consolidating absolute monarchy had destroyed the roots of feudalism, yet outward feudal forms persisted and became increasingly burdensome. Lord Chesterfield described the conditions in France on the eve of the Revolution in the following words: A monarchy that was despotic and weak; a corrupt and worldly church; a nobility increasingly parasitical; a bankrupt exchequer; and irritated bourgeois; and oppressed peasantry; financial, administrative and economic anarchy, a nation strained and divided by misgovernment and mutual suspicion. Such was the background that existed in France prior to the Revolution of 1789.
1.2.1 Political Background:
1.2.1. a. Ancient Regime (Old Order):
In order to understand the factors that were responsible for the outbreak of the French Revolution in 1789, it is important to examine the conditions and institutions that existed in France prior to the Revolution. These conditions and institutions were collectively known as the Ancient Regime. Ancient Regime means Old Rule or Old Order in French language. In English the term refers primarily to the political and social system that was established in France under the Valois and Bourbon dynasties. More generally it means any regime which includes the defining features such as: a feudal system under the control of a powerful absolute monarchy supported by the doctrine of the Divine Right of Kings and the explicit consent of the established Church. This was how Europe had been organized since at least the eighth century. The term Ancient Regime is from The Age of Enlightenment (first appeared in print in English in 1794). Similar to other sweeping criticisms of the past, such as the term Dark Ages, the concept of Ancient Regime was used as an expression of disapproval for the way things were done, and carried an implied approval of a New Order‘. No one alive during the Ancient regime considered himself as living under an Old Order‘. The term was created by Enlightenment era authors to promote a new cause and discredit the existing order. As defined by the creators of the term, the Ancient Regime developed out of the French monarchy of the Middle Ages, and was swept away centuries later by the French Revolution of 1789.
Europe‘s other Ancient Regimes had similar origins, but diverse ends; some gradually became constitutional monarchies, others were torn down by wars and revolutions. Power in the Ancient Regime relied on three pillars: the monarchy, the clergy and the aristocracy. Society was divided into three classes known as estates: the clergy, the nobility and the commoners.
1.2.1. b.Royal Absolutism:
The politico-social system which existed in France throughout the rule of the Valois and Bourbon dynasties, was half way between feudalism and modernity. France was ruled by a powerful absolute monarch who relied on the doctrine of the Divine Right of Kings. The absolute monarchy had the explicit support of the established Church. This period in the history of France is often said to have begun with the French renaissance during the reign of Francis I (1515-1547), and to have reached its peak under Louis XIV (1643-1715). As the Italian Renaissance began to fade, France became the cultural capital of Europe. Eventually, however, financial difficulties and excesses of the rulers led to the decline and eventual collapse of the monarchy by the end of the eighteenth century. The system of Ancient Regime culminated in the monarch, the lofty and glittering head of the state. The king claimed to rule by the will of God and not by the consent of the people (Theory of the Divine Right of Kings). Thus, the kings claimed to be responsible to no one but God. The French Kings ruled in an absolute manner. They exercised unlimited powers. They were the chief legislators, executive and dispensers of justice. They imposed taxes and spent money as they pleased. They declared wars and made peace as they wished. They denied certain basic rights to their subjects. Heavy censorship denied freedom of speech and press. Arbitrary arrest, imprisonment, exile or even execution was the hallmarks of the royal absolutism in France.
1.2.1. c. Nature of the Bourbon Rulers:
The Bourbon dynasty ruled France for about two centuries from 1589 to 1792. France attained the height of glory under Louis XIV. He was known as the Grand Monarch and Sun King‘. He believed in the divine sanction of absolutism. He used to say I am the State. Further he claimed: The sovereign authority is vested in my person, the legislative powers exist in myself alone…My people are one only with me; national rights and national interests are necessarily combined with my own and only rest in my hands. In order to manifest his power and glory, Louis XIV led the nation in dangerous and expensive wars against his neighbours and undertook construction of magnificent buildings to beautify the capital city of Paris. Thus, his expensive wars and lavish style of living weakened France financially as well as politically. More than any other construction of the age, the Palace of Versailles, built by Louis XIV embodied the spirit of absolute monarchy. The magnificent halls, ornate rooms and beautiful gardens surrounding the royal residence added to the grandeur of the Versailles Palace. The aristocracy of France assembled day and night to do homage to the great ruler of France. The court of Versailles which dazzled Europe was comprised of 18,000 people. Out of these 16,000 were attached to the personal service of the king and his family and 2,000 were the courtiers, the favoured guests and nobles. The royal stables contained 1900 horses and more than 200 carriages. In 1789, the total cost of the Versailles extravaganza was $ 20,000,000. Yet, Versailles which symbolized the glory of the Ancient Regime was also the mark of its decline. Its cost to the French nation was too much. Besides, it created a barrier between monarchy and its subjects. Louis XIV, the Grand Monarch left a legacy of financial bankruptcy for his successors. While on deathbed, he is said to have advised his successor Louis XV, his great grand son, in these words: My child,…endeavour to live at peace with your neighbours, do not imitate my fondness for war, not the exorbitant expenditure which I have incurred…Endeavour to relieve the people at the earliest possible moment and thus accomplish what unfortunately, I am unable to do myself.
Louis XV (1715-1774) succeeded his great grand father at the age of five. The first part of the long reign of 59 years falls into the period of Regency (1715-1723) during which period his great uncle, the Duke of Orleans ruled in his name. The confusion and disorder of the Regency was followed by almost two decades of orderly rule and material prosperity under the leadership of the aged Cardinal Fleury (1723-1743). From 1743 until his death in 1774, Louis XV tried to exercise direct control over the government which ultimately led to the instability of the monarchy. Louis XV displayed an apathy and indifference to the affairs of the state. He was concerned primarily with the pursuit of pleasure and all his life he sought to escape from boredom. Thus, he tried to seek happiness in mad and vicious rounds of pleasure, in hunting, in gambling, in lust, in moving his court from one palace to another, in gratifying the whims and fancies of his numerous mistresses and favourites. For more than thirty years Louis XV continued through his shameful policies the worst features of the Ancient Regime. He also followed a disastrous foreign policy that culminated in the humiliation of the Seven years War (1756-63). His government became increasingly inefficient which was controlled by his mistresses. His enormous court incurred heavy expenditure on the state treasury. All these developments opened the gates of the deluge that swept over France.
Louis XV escaped the disaster. However, he could not prevent the progress of new political and social philosophy that repudiated the theory and practice of the irresponsible and arbitrary royal absolutism. The Austrian ambassador at Paris, Comte de Mercy writing to Empress Marie Theresa outlined the conditions in France at the end of Louis XV‘s reign in these words: At court, there is nothing but confusion, scandals and injustice. No attempt has been made to carry out good principles of government; everything has been left to chance; the shameful state of the nation‘s affairs has caused unspeakable disgust and discouragement, while intrigues of those who remain on the scene only increase the disorder. Sacred duties have been left undone, and infamous behaviour tolerated. The reign of Louis XV ended in 1774 with his death. To his successor he left a heritage of military defeat, financial bankruptcy, parlementary opposition and intellectual resistance to the existing political and social regime.
According to Dr. G.P. Gooch, The legacy of Louis XV to his countrymen was an ill-governed, discontented, frustrated France. Viewed from a distance, the Ancient Regime appeared as solid as the Bastille, but its walls were crumbling for lack of repairs and the foundations showed signs of giving way. The absolute monarchy, the privileged nobles, the intolerant church, the close corporation parlements, had all become unpopular, and the army once the glory of France, was tarnished by the rout at Rossbach. Though there was little thought of republicanism, the mystique of monarchy had almost evaporated. In 1774, following the death of Louis XV, his grandson, Louis XVI (1774-93) became the king of France at the age of twenty. The new king was an honest and energetic young man who tried to attend to the state affairs. But he tried to avoid difficulties and lacked the capacity to enforce his own judgment. His irresolution made him a blind follower of his advisors, particularly his Queen Marie Antoinette. She was the daughter of Marie Theresa, Empress of Austro-Hungarian Empire.
Marie Antoinette was beautiful, gracious and vivacious. She had a strong will, a power of quick decision and a spirit of initiative. However, she lacked in wisdom and breadth of judgment. She did not understand the temperament of the French people and the spirit of the times. Being born in a royal family she could not understand the point of view of the underprivileged. She was extravagant, proud, willful, impatient and fond of pleasure. She was the centre of a group of greedy persons, who were opposed to all reforms. She excelled in intrigues and was responsible for the many sufferings that befell both the ruler and the ruled during the closing years of the eighteenth century.
1.2.1. d. Inefficient and Corrupt Administrative System:
Under Louis XV and Louis XVI, the French administrative system became thoroughly inefficient and corrupt. The king was the head of the state and the head of the administrative structure. He had the authority to appoint ministers and other administrative officials. Ministers were appointed on the basis of their noble birth or favouritism and not because of ability or merit. This led inefficiency and corruption in the administration. Various departments of the administration had ill-defined and overlapping jurisdictions. At different times France had been divided into districts under bailiffs, into provinces under governors, into intendancies under intendants. Besides, there were judicial, educational and ecclesiastic districts. The conflict of jurisdiction added to the difficulties and problems of the people. Prior to the Revolution of 1789, France was divided into 34 Intendancies. These Intendancies were placed under Intendants. They were selected at first from the ranks of the bourgeois. They were made an integral part of the machinery of the local government. These Intendants possessed great authority. They had the right to administer justice in all Royal Courts. They verified accounts of their subordinate financial administrators. They also attended to the assessment and levy of direct taxes. They controlled movement of the army, organized regular recruitment for the army and directed the Municipal police.
The Intendants received their authority directly from the Councils. Legally, the Councils and the Ministers had only an advisory capacity. They were responsible only to the King. There was neither a representative assembly nor a written constitution to limit the authority of the administrators. Conflict of jurisdiction and rivalries among the administrators, the absence of an executive head in their own midst to formulate long-term policies and projects, overlapping non-differentiated departments and tradition of graft and irresponsible, high-handed procedures taxed the patience of even the most conscious and determined servant of the state. According to the absolutist theory, all justice in France came from the Monarch, whose officials administered it in his name in the many Royal Courts of Justice, which were established throughout the country.
However, the legal system in France was full of confusion. There was no uniform law for the whole country. Different laws were in force in different part of the country. It was estimated that there were as many as 400 different systems of law in the country. The laws were written in Latin, and thus, they were beyond the comprehension of the common people. The laws were cruel and unjust. Severe punishments were prescribed for ordinary offences. There was no regular criminal procedure. Arbitrary arrest and imprisonment were common. Any influential person could get a letter of cachet issued against the person whom he wanted to punish and the person concerned could be detained in prison for an indefinite period without any trial. There were royal courts, military courts, church courts and courts of finance. Their overlapping jurisdiction added to the confusion and injustice. Thus, the common people in France suffered due to lack of uniform laws and arbitrary administration of justice. There was no guarantee of personal liberty.
The French Kings ruled France without summoning the legislature known as the Estates General since 1614. Louis XIV even abolished the parlement of Paris. The French parlements were high courts of great antiquity. They had the power to review the judgments given in the inferior courts. Towards the end of the eighteenth century, there were thirteen such parlements in France. Each parlement consisted of rich magistrates whose office had become hereditary in course of time. Parlements claimed and exercised certain political powers. They had the right of registering royal edicts and ordinances. They could defer the registration and thereby bring pressure on the King. In 1771, Louis XV abolished these parlements. But they were revived by Louis XVI in 1774.
1.2.2. Social Conditions:
The social conditions in France on the eve of the French Revolution of 1789 were antiquated, irrational and oppressive. The French society was based upon the principle of inequality. The French society comprising of around 25 million people was divided into three classes also known as the estates.
- The clergy constituted the first estate,
- The nobility, the second estate, and the commoners, the third estate.
1.2.2. a. Privileges of the Clergy and the Nobility:
The clergy and the nobility comprised one per cent of the total population of France on the eve of the French Revolution of 1789. These two estates being the privileged classes:
(1) owned most of the land in France.
(2) collected special feudal and church dues from the commoners.
(3) were exempted from most of the taxes.
(4) were the friends and ministers of the King.
(5) were granted special favours while administering the law.
The clergy of the Roman Catholic Church was rich and powerful. The higher clergy was comprised of the archbishops, bishops and the abbots. They lived luxuriously in their palaces and monasteries. The Church owned nearly a fifth of the land in France. The Church land yielded a large amount of revenue. In addition, the clergy collected tithes (One-tenth of the total produce) on agricultural products. A large part of the Church income went to the higher clergy numbering around five to six thousand. Many of the higher clergy resided at the Royal Court. On the other hand, the large number of the lower clergy, who did the real work were deprived of many of the privileges enjoyed by the higher clergy. While the higher clergy belonged to the nobility, the lower clergy usually came from the third estate. The nobility of France occupied a peculiar position in the French society. It was no longer the landed nobility of the feudal days; neither were they nobility of office. They merely claimed their position by virtue of their birth and enjoyed certain privileges. They were called the Grand Nobles‘. About a thousand of them lived at Versailles as courtiers. The country nobles lived on their estates in the provinces. The new nobles were not nobles of birth but men from the middle class who had grown rich and purchased the privileges of the nobility of the birth. They were known as the nobility of the robe‘. The nobles had lost all political power. They either entered the army or the church. Important public offices like ambassadors were reserved for them. A majority of the nobles had no lands and derived their income from their old feudal rights. They were exempted from the bulk of the taxes. The nobility as a whole enjoyed one special privilege which was a serious and unnecessary injury to the peasants. That was the exclusive right of hunting, which was the chief pastime and sport of the nobles. Although the game destroyed their crops, the peasants were required not to disturb the game and thus, suffer the loss of their crops for the pleasure of the nobles.
1.2.2. b. Underprivileged Commoners:
Below the two privileged classes (clergy and nobility) were the underprivileged commoners known as the third estate. The third estate was sub-divided into the bourgeoisie (middle class), the artisans and the peasants. The bourgeois comprised of lawyers, physicians, teachers, merchants, bankers, manufacturers and men of literature. Many of them were rich, intelligent, energetic, educated and well to do. This class especially resented the existing political and social conditions in France. Belonging to the third estate, but beneath the bourgeois were the artisans living in towns and cities. They were comparatively a smaller class as the industrial life in France was not yet highly developed. These artisans were usually organized in guilds. The peasants formed the majority of the third estate. France was an agricultural country. Thus, more than ninety per cent of the population was peasants. About a million of the peasants were serfs. The rest were free men, but they were all discontented against the existing system of the government and social organization. The burden of the society was on their shoulder. Nearly the entire revenue of the government was raised from the third estate. The peasants paid nearly 55% in taxes of what they produced or earned. The peasants paid taxes to the state, tithes to the Church, and feudal dues to the nobles. The peasants paid tolls to the nobles for the use of the roads and bridges in their estates. The peasants were forced to use the flour mill, oven and winepress of the nobles and paid for the service. The peasants also paid indirect taxes like the gabelle (salt tax). The abuse connected with the administration of the salt-tax was the most glaring and scandalous. The salt-tax collectors called gabellous were the most hated by the French people. In France, each family was required by law to buy annually a specific amount of salt for household use.
The price of the salt was very high in northern and central provinces and less in others. As a result many individuals turned into smugglers bringing in salt from the provinces where the rate of the salt was cheaper. Under these circumstances the gabellous used to make house to house searches and harass the people for hoarding of the salt. Besides the salt tax, the commoners had to pay the excise duty, taille (property tax), customs duties, etc. The feudal dues include corvee (forced labour) of two or three days and contribution in kind. The French peasants, suppressed, oppressed and depressed were discontented about their existing condition. They were on the verge of starvation. A large number of the peasants who knew nothing of he statecraft and who were ignorant of the destructive and subversive theories of Voltaire and Rousseau were quite aware of the necessity of reforms by the hard circumstances of their miserable lives. They felt that the feudal dues should be abolished, and that the excessive taxes of the state should be reduced. Thus, the third estate desired a change in the government, society and economic conditions. The large and growing middle class and some of the nobility and the working class had absorbed the ideology of equality and freedom of the individual.
1.2.3. Economic Conditions:
Among the direct causes of the French Revolution was a massive financial crisis caused by the enormous debt, government‘s lavish spending and the antiquated system of taxation, which brought little money to the national treasury. The existing tax system had placed the greatest tax burden on the shoulders of the third estate and virtually ignored the first two estates of their responsibilities. Successive attempts at reforming the system proved fruitless in the face of opposition from the clergy and the nobility.
1.2.3. a. Bankruptcy of the French Government:
The French government faced bankruptcy of the worst type. Since 1614, the French monarchy had operated without summoning the legislature of France known as the Estates General. The successive Kings used to manage their fiscal affairs by increasing the burden of the ancient and unequal system of taxes, by borrowing money, and sometimes by selling noble titles and other privileges. However, noble titleholders were exempted from further taxes. On the eve of the Revolution, France was deeply in debt and was on the brink of bankruptcy. Extravagant expenditures by Louis XIV on luxuries such as the construction and maintenance of the magnificent palace of Versailles, the social extravaganza of the royal court during the reign of Louis XIV, Louis XV and Louis XVI and the luxurious taste of Marie Antoinette, queen of Louis XVI were compounded by heavy expenditure on the Seven Years War (1756- 63) and the American War of Independence (1776-83). The empty national treasury was the spark that set the French Revolution of 1789 in motion. While the French peasants were starving and dying, the royal court and the clergy and the nobles were having festivities and banquets. The French government mishandles the national economy. It had no regular budget. It wasted money without proper planning and the national debt went on increasing.
1.2.3. b. Heavy Taxes:
Unlike the trading nations, France could not rely solely on tariffs to generate income. While average tax rates were higher in Britain, the burden on the common people was greater in France. Taxation in France relied on a system of internal tariffs separating the regions in France, which prevented a unified market from developing in the country. Taxes, such as the extremely unpopular gabelle were contracted out to private collectors who were permitted to collect far more than what the government demanded. This system led to an arbitrary and unequal collection of many of the consumption taxes in France. Further, the royal and feudal (signorial) taxes were collected in the form of compulsory labour (corvee). The system of taxation in France excluded the nobles and the clergy from having to pay taxes. The tax burden was thus, borne by the peasants, wage earners and the professional and business classes. These groups were also cut off from most positions of power in the regime causing a great deal of unrest among them. Many public officials had to buy their positions from the King. They tried to make profit out of their appointment not only to make up the money that they had to pay for heir positions but also to enjoy hereditary rights over these positions. For instance, in a civil lawsuit, judges had to be paid some fees by the parties to the litigation. Such a practice put justice out of the reach of the common people.
1.2.3. c. Failure of Economic Reforms:
During the regimes of Louis XV (1715-74) and Louis XVI (1774-93) different finance ministers were appointed to improve the financial condition of France. The most notable among them was Turgot (1774-76). On the subject of finances his mind was made up. In the first place he intended to follow a policy of strict economy. In a letter to the King Turgot outlined his views summarizing them in the phrase: No bankruptcy, no new taxes and no loans. By rigid economy, Turgot effected satisfactory savings for the treasury. However, the King was reluctant to cut down royal expenditure. In order to improve the economic conditions of the people in general, Turgot issued the First Reform Edict in 1774, which was concerned with the grain trade. This edict abolished all government regulations related to the purchase and sale of grain and allowed full freedom in inter-provincial grain trade. However, Turgot‘s edict did not achieve much success. His enemies who were interested in the old system opposed his edict of reform. Besides, shortage of grains added to the failure of this experiment. Fear of famine brought disorder and there was an increase in grain prices. This resulted in widespread disturbances which came to be known as the Grain War‘, which had to be severely put down. Thus, Turgot‘s experiment in liberalization of the agricultural sector ended in a failure. In spite of these failures, Turgot continued to suggest reforms.
Early in 1776, he presented before the Parlement of Paris several other reforms. The two most important among them were the abolition of corvee and the disbandment of most of the guild corporations. He also proposed to introduce the principle of tax equality. Through this proposal he suggested that the privileged classes also should be taxed in order to raise additional revenue for the state. The reform proposal concerning the guilds intended to destroy their monopolies and restore the natural law of free competition. By doing away with the guilds, Turgot wanted to liberate the industry, advance commercial development, lower prices and allow the artisans the enjoyment of their natural right to labour.
The proposed Reform Edicts of Turgot met with severe opposition from the Parlement of Paris. In spite of this opposition, Louis XVI ordered the registration of these edicts. However, Turgot and the King had to face opposition and hostility from most powerful groups and privileged classes such as guilds, parlements, court favourites and especially the Queen, Marie Antoinette. Under heavy pressure from these quarters, Louis XVI had no other alternative but to dismiss Turgot from his position in 1776. The guild corporations were re-established and the privileged classes still remained outside the tax net. Following the dismissal of Turgot, after several months, Louis XVI appointed Necker (1776-81), the most famous of the bankers as the Director General of Finance. In order to improve financial resources of France, Necker, at first resorted to new loans and administrative reforms. However, the French support to the English colonies in America against England in the American War of Independence proved to be costly to the national treasury and national debt went on increasing by more than one and a half billion livres.
The administrative reforms of Necker were sound, though hardly sufficient as a remedy. He suggested the reduction of many of the unnecessary offices, simplified the accounting system and began to limit the functions of the revenue farmers by taking over the collection of several of the taxes. He floated loans of several million livres without increasing taxes during the years of the war. These measures added to the reputation of Necker as a financial wizard. However, later he was forced to raise loans to pay the interest charges on the earlier loans. This led to the financial crisis. As the financial situation went out of control, Necker had no other option but to suggest that the privileged classes must be taxed. Following this suggestion, Necker met with the same fate as that of Turgot and was dismissed. Following the dismissal of Necker, Louis XVVI appointed some other ministers between 1781 and 1783 who tried to do their best in solving the financial chaos in France.
In a desperate attempt to bail out the monarchy from the economic crisis and financial disaster, Louis XVI appointed Calonne (1783-87) who had the support of the Queen, Marie Antoinette. He was highly intelligent and resourceful person. He undertook his duties with a full realization of the gravity of the situation. Calonne believed that the best remedy for financial ailments of France was the restoration of the confidence of the people in the government and emphasized that the best way to restore the public confidence was to give the appearance of prosperity. Thus, Calonne threw economy to the winds and expanded the credit of the government by borrowing heavily from the capitalists. During his tenure of three years he borrowed a huge amount of money. A small part of the expenditure went to silence the opposition to his reforms such as publishers of newspapers and members of the Parlement of Paris. Certain amount was also spent to win the support of the royal family and the court. The greater part of the funds went to meet the outstanding indebtedness and to promote public works. Thus, an artificial prosperity set in a boom period in France. Increased production held out new goods and employment increased and the income of the workers also increased considerably.
Besides, France witnessed a few good agricultural seasons and commerce and industry did not suffer as war with England had officially ended by the Treaty of Paris (1783). Meanwhile, the government expenditure began to increase whereas its income from taxation lagged behind. The economic boom was like a bubble which burst very soon. In spite of a steady increase in taxes the annual deficit had risen to more than one hundred million livres. Under these circumstances the economic crisis was developing to serious proportions. France had reached a state of virtual bankruptcy. No one was ready to lend funds to the King which would be sufficient to meet the expenses of the government and the court. The loans amounted to one thousand six hundred and forty six millions and there was an annual deficit of a hundred and forty million lives.
Finding that the economic crisis in France was beyond redemption, Calonne presented a secret memorandum to Louis XVI in which he laid down a comprehensive plan of reform. Louis XVI reluctantly gave Calonne his support to summon as Assembly of Notables comprising of 144 representatives of the three estates on 22 February 1787 to address the financial situation as he was certain that the Parlement of Paris would never approve his reform proposals. Calonne appeared before the Assembly of Notables, read an indictment of the Ancient Regime and then presented his reform proposals.
In these proposals Calonne suggested:
(1) the abolition of corvee;
(2) abolition of internal customs;
(3) permission for free grain trade within France
(4)extension of the system of provincial assemblies throughout France
(5) decreasing the burden of taille(property tax) and gabelle (salt tax)
(6)transformation of the Bank of Discount into a State Bank
(7) proposal to impose land tax payable by all propertied persons whether the clergy, nobility or the commoners.
The members of the Assembly of Notables felt that by approving Calonne‘s reform proposals they themselves would put an end to their social supremacy, destroy their fiscal privileges and agree to a sweeping reform of the entire political, social, and economic structure of France. The huge deficit that Calonne had incurred gave an opportunity to the Assembly of Notables to mask their selfish opposition to the reforms suggested by Calonne on the pretext of public interest. The resistance to Calonne‘s proposed reforms was so much that Louis XVI was forced to dismiss him. Fearing for his life, Calonne fled to England.
1.2.2. d. Famines:
The economic and financial problems of France were compounded by a great scarcity of food in the 1780s. Crop failure in the 1780s caused these shortages, which led to a steep increase in the price of the bread. The bread crisis was one of the chief causes that led to the mob of Paris to initiate the Revolution of 1789. The poor conditions in the countryside had forced the rural population to move into Paris and the city was overcrowded and filled with hungry and disaffected masses of people.
1.2.2. e. Taxes By Edicts:
As the economic situation and financial condition in France began to worsen, Louis XVI tried to impose additional taxes by issuing Royal Edicts. However, he ahd to face strong opposition from different sections. As the bankruptcy of the state was beyond anybody‘s control, the King was advised to summon the defunct Estates General in order to bring about a solution to the economic crisis of the country. Louis XVI, hoping to get support for his tax proposals, agreed to summon the estates General. The meeting of the Estates general on 5th May 1789, and subsequent events brought about the Revolution of 1789 in France.
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