Military and Political Structures in Early Modern Europe: Wars, Navies, and Dynasties

Resource mobilization

"War is important because it was for fighting that rulers mobilized the vast majority of resources they laid their hands on, and it was military activity that justified their existence and value to society. War created the demand for resources and provided the opportunity to extract them."

Coercion (in taxation)

"Consistent coercive resource extraction is not merely difficult to implement because of the credibility problems of the ruler with respect to the power elites; it is also unattractive even when it can be implemented because it is inefficient and because it risks killing the golden goose. Although rulers in desperate financial straits might occasionally resort to purely coercive tactics, the long-term strategy must involve the voluntary cooperation of the power elites, who could then help secure the quasi-voluntary cooperation of the taxpayers."

Quasi-voluntary compliance

"Although rulers in desperate financial straits might occasionally resort to purely coercive tactics, the long-term strategy must involve the voluntary cooperation of the power elites, who could then help secure the quasi-voluntary cooperation of the taxpayers."

Prince-Electors

"The Emperor was selected by the electoral college, which consisted of seven Prince-Electors (the dignity of elector was second only to that of Emperor), three of whom were ecclesiastical — the Archbishops of Mainz, Cologne, and Trier — and four of whom were secular — the King of Bohemia, the Count Palatinate of the Rhine, the Duke of Saxony, and the Margrave of Brandenburg."

Holy Roman Empire

"At the pinnacle of this hierarchy stood the Holy Roman Empire, a decentralized entity that lasted for nearly 1,000 years and included territories of modern Germany, France, northern Italy, Austria, the Czech Republic, Slovenia, Slovakia, Croatia, and Poland... It was an elective monarchy that comprised hundreds of territorial units — principalities, duchies, counties, margravates, bishoprics, archbishoprics, free imperial cities, and even free imperial knights."

House of Habsburg

"Of these, the most important dynasty were the Habsburgs who had two branches — the Austrian one that also held the imperial title, and the Spanish one that controlled the vast holdings of that monarchy. In the person of Charles V, the same branch ruled all Habsburg possessions: a territory spanning all of Europe, and extending to the far east and the Americas."

House of Bourbon

"The second very important dynasty were the Bourbons, who had become the senior Capets with the extinction of the House of Valois in 1589... and ruled the Kingdoms of Navarre, France, and after supplanting the Habsburgs, Spain, Naples, and Sicily. Spain, in fact, still has a Bourbon monarch."

Elective monarchy

"With the notable exception of the few republics, most of Europe was monarchical; that is, it was ruled by secular or ecclesiastical monarchs, most of them hereditary but several important ones also elective... The Holy Roman Empire [was] an elective monarchy...." (In such a system, "the Emperor was selected by the electoral college" of Prince-Electors rather than by heredity.)

Hereditary monarchy

"The more 'standard' monarchies of the period were the hereditary ones that ruled France, Spain, and England."

Estates (representative institutions)

"France was also very much a mosaic state... composed of the royal domain but also provinces like Languedoc, Brittany, Dauphiné, Provence, and Burgundy (the so-called pays d'état) that still had their own estates (representative institutions) that negotiated their taxes and administered the lands."

Dynasticism

"Dynasticism — the concern for the interests of the royal family, often quite separate and sometimes in direct opposition to the interests of the 'state' — was a defining feature of interactions among princes."

Equivalent compensation

"As a result of these territorial concerns, the principle of equivalent compensation and exchange developed whereby more or less desirable pieces of territory could be exchanged for their 'equivalents' elsewhere. Equivalence was roughly calculated in terms of population and economic value but of course nobody ever thought of asking the actual inhabitants whether they cared to live under their existing ruler or be exchanged to another."

Lutherans and Calvinists

"Calvinism turned out to be quite expansive and dynamic... It spread rapidly... coinciding with the renewed determination of some Catholic rulers to reimpose Catholicism in their lands. Part of the problem from the royal perspective was that Protestantism in general but Calvinism in particular was quite disruptive as it indirectly delegitimized princely rule... with its emphasis on freedom, elections, and self-rule. It was for this reason that even Lutherans, who as Protestants had no love lost for Catholics, detested the Calvinists."

Nationalism

"Nationalism would not become truly important until the 19th century. In fact, for most of the period that we are concerned with, nationalism could not even exist as a concept... princes often ruled very disparate territories whose populations owed no particular allegiance to any prince."

Feudal army

"In this army [the feudal system], the ruler could call upon other landowners and their retainers who would muster under the terms of their personal feudal obligations (for a specified period of time, and often within a limited geographical area). These forces were supplemented by levies of peasants and townsfolk, whose terms of service were often even more restrictive in that these commoners were really only expected to contribute to their own defense."

Stipendiary army

"The monetization of the economy permitted rulers to... commute most feudal service obligations to monetary payments... This increased the cash income of the rulers and gave them more flexibility in choosing when and who to employ to fight. As long as they were paid, the troops in these stipendiary armies — which comprised both volunteers and men fulfilling their service obligations — were more reliable, could be kept in the field longer, and could be better organized with some semblance of hierarchical command."

Contract army (mercenary army)

"The combination of high wages and volatile employment... coupled with the low military efficiency of coercive recruitment and the increased demand for troops... led to the emergence of highly trained professional mercenaries. They were not cheap but they could be hired at will. When dismissed, they could seek employment elsewhere and they could expect to be hired because they offered the advantage of skilled labor over ad hoc feudal levies or forcibly recruited troops."

Albrecht von Wallenstein

"Wallenstein raised enormous armies for the Emperor (anywhere between 50,000 and 100,000) and loaned him money. He perfected the system of contributions — essentially taxes levied in occupied territories, friend and foe alike — to make war pay for itself. He then made a tidy profit acting as a supplier for these troops, and using the Emperor's money to pay himself."

Standing army

"Rulers facing higher expenses not merely periodically but more or less constantly had to respond by attempting to expand fiscal capacity and figure out ways of reducing expenses. Since the high contract wages were... volatile, one obvious approach would be to provide secure employment. If rulers could afford to keep the troops during peacetime instead of dismissing them, they could induce recruits to accept lower wages."

Reserve army

"By the eighteenth century, Europe settled into a system of states whose rulers maintained standing armies of professional soldiers, staffed by state-commissioned officers, and funded by permanent taxation. According to our fiscal-military model, this system would be disrupted by some technological change that drives up the size of armies beyond the fiscal limits... In the event, however, the initial disrupting factor came from a different source — Revolutionary France... the levée en masse... The size of the army nearly tripled... With so many men under arms... France faced a serious problem: its only advantage lay in numbers, but its weak economy meant it could not sustain this for long... After the collapse of the totalitarian effort of the Terror, supply reverted to private contractors... France made a virtue of necessity: if the country could not feed the armies of the Republic, then someone else must. The Revolutionary armies... invaded enemy territories so that those lands would support them. ...Napoleon's tactics... exploited this, but when his armies stretched too far, they became vulnerable as supplies ran out."

Levée en masse

"The National Convention passed the decree on August 23, 1793 that instituted the levée en masse (mass levy) that requisitioned all able-bodied men between the ages of 18 and 25 into immediate military service in defense of the Republic. The size of the army nearly tripled..."

French Revolutionary Wars

"Within a few months, however, France was at war not merely with Prussia and Austria, but also with Spain, Britain, Piedmont, and the Dutch Republic... In these desperate circumstances the National Convention... instituted the levée en masse... The size of the army nearly tripled, and this, combined with the severe internal repression of the Terror, turned the tide of the war and saved the Revolution."

Napoleonic Wars

"Napoleon's tactics produced crushing victories as he first dispersed his vast armies so that his opponents could not predict where he would strike, and then concentrated them to deliver battle at the most convenient place. He used the mobility of his armies to capture enemy magazines and then... compel the captured territories to support them. Even then, the armies could not remain in one place for very long: there was simply not enough food to feed their vast numbers. They had to move, and as they entered less fertile territories... the armies became vulnerable. The secret of Wellington's success in the Iberian peninsula and Kutuzov's in Russia was in exploiting this weakness of the French armies... As the reservoir of seasoned troops got depleted, the inferior quality of the fresh recruits began to assert itself in battles with the professionals his opponents were fielding."

Prussian reforms

"In Prussia, the catastrophe of 1806... led to serious inspection of its military. The reformers concluded that Prussia's principal failure lay in its political institutions that did not permit mobilization on such a large scale. The country had to liberalize for the government to gain access to the full potential of the nation. In the shock of defeat, the reformers were able to institute some changes designed to replace the professional conscript army with people willing to fight in defense of something larger than the monarchy... Still, in 1813 the king authorized the creation of a national force, the Landwehr, consisting of conscripts who elected their own officers. Service was compulsory for men who had not been called into the army."

Effect of railroads

"The advent of the railway on land... proved quite useful for transporting large numbers of troops... The rail's military value in international wars quickly became apparent in 1859 when the French deployed 120,000 troops to Italy in just eleven days over a distance that would have normally taken two months by march. To this speed of movement, the railways also added staying power of an army in the field: instead of relying on magazines and laboriously prepared stockpiles along the route, an army could be supplied from the rear by rail. If the country was linked in a railway system, its entire economy could be marshalled in support of the army. Troops arrived fresh and ready for battle... wounded could be transported back to real hospitals... soldiers could be given leave to go home with fit replacements standing by."

All-volunteer army

"In 1973, however, the United States abolished conscription and moved to an all-volunteer army that relies on the massive firepower guaranteed by the country's advanced technology. The engine for change was yet again technological: the increasingly sophisticated weapons systems demanded fewer but far more capable troops. Conscription is not particularly good at producing quality, at least not nearly as good as a system that relies on well-paid motivated volunteers. It should not be surprising that it was the most technologically advanced nations (that also happen to be the wealthiest) that have taken the lead in this shift. At the dawn of the 21st century, most European states have followed suit...."

Growth of armies

"All these reforms ensured that when the next war came, it would be a clash of nations: with millions under arms and the entire economies dedicated to a total war. It was also the mass-reserve army model that would spread around the world and persist to this day."

Military Revolution

"There has been a lively debate among historians about the effects of changing military technology: the advent of the railway on land and the steam engine on sea. The railway... was the real breakthrough because now the size of the army was only limited by the number of men the state could effectively put in arms... The German experience shows that the military revolution was not a necessary condition for the growth of armies, and the fact that little or no such growth occurred in some areas shows that other factors were at play."

Trace italienne

"The name for these star forts is trace italienne ('Italian ground-plan'), but they were perfected by the French engineer Vauban... The development of artillery and the trace italienne... contributed to the increase in army size in the fifteenth century."

Countervallation and circumvallation

"As the sieges got longer, the likelihood that a relief force would arrive to help the garrison increased, and this necessitated yet more work since the attackers now had to construct powerful lines of circumvallation designed to help them repel such a relief army... both lines (of countervallation facing outward and circumvallation facing the fortress) could be built in under two weeks. This further increased the number of soldiers required to invest a city."

Glacis

(Fortification term - an earthen slope inclined towards the field.) "If morale did not collapse, the attackers would construct a third parallel at the foot of the glacis. This was a critical position because it would enable the attackers to take the covered way... Taking the chemin couvert (covered way) was critical because it would permit the attackers to bring their cannon or miners within reach of the ramparts... After securing the outworks, the laborious process of breaching the ramparts began."

Chemin couvert (covered way)

"Taking the chemin couvert was critical because it would permit the attackers to bring their cannon... within reach of the ramparts. This is why the defenders would usually fiercely contest it by digging counter-approaches in their own glacis to prevent the establishment of the third parallel... After securing the outworks, the laborious process of breaching the ramparts began."

Ravelin

"Figure 2: Vauban Fortifications - (3) ravelin." (A ravelin is a triangular fortification in front of the bastions, built to split an attacker's fire and protect the curtain wall.)

Opening the trenches

"If the city could not be taken by surprise or by bombardment... a formal siege began. This meant a lot of digging as the attackers constructed a series of trenches, some parallel (for support) and others zigzags (for approach). The 'opening of the trenches' (meaning the first parallel) came to define the formal start of a siege."

Siege of Lille, 1708

"The famous siege of Lille during the War of the Spanish Succession took 120 days (from mid-August until early December, 1708)... The allies invested the city on August 12, completed the lines of countervallation and circumvallation ten days later, and opened the trenches on the 22nd. The French relieving force... failed to break the siege. On September 7, [Prince] Eugène assaulted the counterscarp and captured the chemin couvert at the cost of 3,000 men... By this time... Marlborough had succeeded in forcing the relieving army to retreat... On December 9 the French garrison finally surrendered the citadel."

Galley

"The galley was a long, oared warship used primarily in the calm waters of the Mediterranean. Naval power in the 16th century Mediterranean climaxed with the Battle of Lepanto (1571), where a coalition fleet of Christian states decisively defeated the Ottoman fleet of galleys. However, galleys proved less effective in the rougher seas of the Atlantic." (The age of galleys waned as sailing ships-of-war became dominant.)

Line-abreast formation

"Prior to the advent of heavy sailing ships, galley fleets fought in a line-abreast formation — a broad front of oared vessels aiming to ram or board enemy ships simultaneously." (This formation maximized the impact of galley rams and boarding actions.)

Galleon

"The galleon was a large, ocean-going sailing ship with multiple decks of cannons, developed in the 16th century. Heavily armed and sturdy, galleons like those in the Spanish Armada (1588) were designed for the new style of naval warfare emphasizing broadside gunpower rather than ramming."

Merchant marine

"One obvious choice here was commerce raiding — guerre de course — whose goal was to cripple the opponent's merchant marine and disrupt his logistical lines. This is what the privateers under the letters of marque were precisely designed to do. When the opponent depended critically on overseas supplies... such a strategy could be quite effective."

Letters of marque & privateers

"Commerce raiding — guerre de course — was often carried out by privateers operating under government-issued letters of marque. These licensed private ships would prey on enemy trade, as seen when French privateers forced the Royal Navy to provide convoys for British merchants (the French were so successful that the British forbade merchants from sailing unescorted)."

Battle of Lepanto (1571)

"The battle of Lepanto, 1571, was the last great galley engagement: a Holy League fleet of galleys defeated the Ottoman Turkish fleet, marking the end of Ottoman naval expansion in the Mediterranean. Although a stunning victory — 'a clear and present danger... that no line of battle could defeat' was removed — Lepanto also symbolized the waning era of oar-powered warships as sailing ships rose in prominence."

Sailing ship & Ship-of-the-line

"The rise of heavy sailing warships led to the ship-of-the-line — powerful gunships that fought in line-ahead formation. The English and Dutch in the Anglo-Dutch Wars (mid-17th century) perfected the line-of-battle tactic, where ships formed a single-file line to unleash broadsides. These sailing ships-of-the-line dominated naval warfare, eclipsing earlier galleys and galleons."

Spanish Armada (1588)

"When Spain's 'Invincible Armada' sailed against England in 1588, it consisted of large galleons and accompanying vessels intended to escort an invasion force. English nimble warships, using line-ahead tactics and superior gunnery, harried the Armada down the Channel. The failure of the Spanish Armada marked the rise of England as a naval power and demonstrated the effectiveness of the new sailing ships and tactics over older models."

Line-ahead formation

"As naval tactics evolved, fleets adopted the line-ahead formation (or line of battle), in which ships sail single-file. This tactic allowed each ship to fire full broadsides without interference. It became standard in fleet actions by the 17th century — for example, during the Anglo-Dutch Wars, where line-ahead maneuvers were crucial."

Crossing the T

"Crossing the T was a classic naval tactic in the age of sail: one fleet maneuvers to cross in front of the enemy's line, allowing its ships to fire broadsides down the length of the enemy column (maximizing damage) while the enemy's forward guns have limited effect. This tactic, though not explicitly named in the readings, underlies battles like Trafalgar (1805), where Nelson's fleet broke the Franco-Spanish line and 'crossed the T' to devastating effect."

Impressment

"The navy... recruited from socially undesirable elements... When this was not enough (i.e., almost always) the navy resorted to compulsion. Impressment, which was regularly practiced in Britain, forced merchant sailors into service. Most of the men were taken from ships at sea, but the press gang would often seize people on land — the so-called 'landsmen' — without bothering to inquire too closely into their seafaring abilities... To get a sense of the scale of coercion, about half of the Royal Navy — or about 60,000 men — were pressed into service."

Guerre de course

"For active engagement, one's ships had to sail and if they could not hold their own against the enemy's line, then an indirect strategy had to be devised. One obvious choice here was commerce raiding — guerre de course — whose goal was to cripple the opponent's merchant marine and disrupt his logistical lines. This is what the privateers under the letters of marque were precisely designed to do."

Fleet-in-being

"Merely keeping one's battlefleet intact and safe at port could exert influence on the opponent during war because of the threat it represented. This fleet in being could always sail when conditions were favorable, forcing the opponent to take account of that possibility and dissipate his forces in guarding against it."

Convoy

"The French... relied heavily on the guerre de course, which forced the Royal Navy to provide convoys for its merchant marine. The French were so successful, in fact, that the government forbade merchants from sailing unescorted."

Blockade

"To counter an opponent's naval threat or to strangle their economy, a power could institute a blockade - stationing warships to prevent the enemy's merchant vessels from entering or leaving ports. For instance, during the Napoleonic Wars, the Royal Navy's blockade of France sought to cut off trade and supply; it also led to tensions when neutral ships (like American vessels) were intercepted, contributing to the War of 1812."

American Revolutionary War (1775-83) (naval aspect)

"French naval intervention was decisive in the American Revolutionary War. In 1781, the French fleet drove off the British fleet at the Battle of the Chesapeake (staying 'in being' until the moment was right), cutting off Cornwallis at Yorktown. Without control of the sea, Britain could not relieve its army, leading to Cornwallis's surrender - effectively securing American independence."

Ironclad

"The mid-19th century saw the advent of the ironclad warship - steam-powered ships with iron or steel armor. The first clash of ironclads (USS Monitor vs CSS Virginia in 1862) demonstrated that wooden fleets were obsolete. European navies quickly adopted ironclads, revolutionizing naval warfare. As one historian noted, 'the steam engine and the railway' on land had their naval counterpart in the ironclad and steam propulsion at sea, making fleets faster, more durable, and less dependent on wind."

Logistics

"Logistics (which comes from the Greek word logistikos, meaning 'skilled in calculating') is a rather comprehensive subject that goes beyond merely supplying the army. At its most general, it also includes the procurement and storage of materiel (equipment, subsistence, fodder, clothing, ammunition, and supplies), the planning, procurement, development, and maintenance of facilities and infrastructure for it, securing its transport, and the provision of services in support of the armed forces."

Foreign subsidy

"They approached Queen Elizabeth I of England in 1572, and she agreed to a subsidy of 300,000 florins... Six years later, she agreed to another subsidy of 1 million florins over two years, and provided another 1.5 million in loans between 1585 and 1603. The rebels also went to France for subsidies... Overall, annual foreign subsidies averaged about 1.24 million in 1585-90... Although substantial, these subsidies also fell short of the requirements of war."

Foreign borrowing

"To fill the fiscal gap between income and expenditure, rulers often tried to borrow the money they needed. Over time, the payment of interest and repayment of the principal of public debt gradually became a significant (and at times, the largest) expenditure item of many governments. With the growing importance of credit, lenders also tended to acquire economic and sometimes political clout, and rulers had to take their interests into consideration in policy-making."

National (public) debt

"The need for public debt was recognized early on... Alexander Hamilton... It was self-evident to Hamilton that the state's ability to expand its mobilizable resources beyond the constraints of the tax base would be crucial to any war... Even powerful and opulent nations like England, France, and the United Provinces are 'deeply immersed in debt.' These were plain and undeniable truths that loans in times of public danger, especially from foreign war, are found an indispensable resource... loans are an indispensable resource... even to the wealthiest of [nations]."

Contributions (war contributions)

"He perfected the system of contributions — essentially taxes levied in occupied territories, friend and foe alike — to make war pay for itself."

War chest

"Instead of determining the expected revenue and then deciding on a budget within that income... rulers tended to do just the opposite. They would first decide on what goals they wanted to achieve and would then cast about to obtain the funds they thought would be necessary to achieve them. That is, instead of revenue determining which policies to pursue, the desired policies determined the revenue they had to raise. In practice, this meant accumulating a war chest (reserves of coin or credit) in anticipation of conflict, though such chests were often insufficient or quickly exhausted once war commenced."

Forced loans

"The States squeezed more money from [the cities] by requesting extraordinary loans, some of which were secured against taxes but many of which were levies without reimbursement... The repartitions often had the flavor of forced loans and did not endear themselves to the burghers."

Government bonds

"As I mentioned before, four problems with income from taxation made it relatively inconvenient as a reliable primary method of war finance... Some rulers resorted to manipulation of the money supply — debasing the coinage or printing money — but this was a desperate step... Finally, attempts to levy new emergency taxes or to increase existing ones could generate opposition... To fill the fiscal gap between income and expenditure, rulers often tried to borrow the money they needed... With the growing importance of credit... war saw concomitant increases in both government indebtedness and taxes."

Debasement

"Some rulers resorted to manipulation of the money supply — debasing the coinage or printing money — but this was a desperate step that could have very deleterious effects on the economy (and so on the ability to wage the very war it was supposed to finance), not to mention the public resentment it created in those whose wealth was being thusly expropriated."

Re-coinage

"In 1575, the States of Holland introduced the silver Lion Dollar... and demonetized the old silver coins. The Lion Dollar was minted from silver worth 29 stuivers but valued at 32, with the difference constituting a 'war tax' of 10%. The profit... was estimated at... 1 million florin. These devaluations were considered so harmful for trade that they were never repeated." (This is an example of re-coinage and currency manipulation to raise revenue.)

Money supply & Inflation

"Wartime finance often led rulers to expand the money supply by debasing coinage or printing paper money, which could spark inflation. For example, rampant printing of assignats in Revolutionary France or Continental currency in the American Revolution caused soaring inflation, undermining the currency's value. As one text notes, these 'deleterious effects on the economy' from debasement or printing money could weaken the war effort itself."

Price ceiling

"Facing shortages or profiteering during war, governments sometimes imposed price ceilings on key goods (like grain or salt). For instance, early in the French Revolution, the Law of the Maximum set price ceilings on bread and other essentials to curb inflation and ensure supply to armies and civilians. However, such controls often led to black markets and could prove counterproductive if set too low." (This concept is implied by discussions of market distortion due to government action, though not explicitly named in the readings.)

Requisition / expropriation

"Governments can do this less directly and more intrusively, by administrative expansion of their regulatory powers that transfers costs onto private agents. And, of course, in a pinch, they can do it through outright coercion by confiscating the resources or expropriating the means of production."

Demesne

"In most of history, the monarch was supposed to 'live off his own' — that is, finance government largely from the Crown's own lands and revenues (the royal demesne). Taxes beyond the ordinary demesne income were reserved for emergencies. Over time, however, demesne revenues proved insufficient for the rising costs of war, forcing rulers to seek extraordinary revenue from estates or taxes."

In-kind taxes

"Because of the scarcity of money in this agrarian world, payment would have to be in kind (e.g., plunder) or in the form of a grant of a landed fief... The fief would allow the holder to support himself and his retainers, enabling him to maintain military readiness as stipulated in the feudal agreement." (Historically, many taxes were in kind, paid with goods or labor rather than coin.)

Seigniorage

"The States... devalued the currency by 15%. All coins were ordered back to the mints where they were marked so they would be worth 15% more than their face value... The difference constituted a 'war tax' of 10%. The profit... was estimated at... 1 million florin." (This profit from re-minting currency is an example of seigniorage, the gain accruing to the issuer of money.)

Direct taxes

"Even in an advanced commercialized society as Britain's the yield from income taxes was initially quite disappointing... Another serious problem with these taxes was in the enforcement of compliance — historically it is fairly easy to see that whenever the government's ability to coerce the citizens into paying went down so did receipts from direct taxes." (Examples of direct taxes include the capitation (poll) and property taxes which required effective enforcement.)

Indirect taxes

"The most effective means of extracting vast amounts of wealth until the advanced economies of modern times has proven to be indirect taxation. Indirect taxes are imposed upon transactions: the production, transport, sale, or documentation of goods and services... they are usually imposed on an intermediary who can then pass the cost onto others — e.g., a store is responsible for paying the sales tax, which it simply transfers onto consumers; an importer pays customs duties, passing them along as higher prices... These taxes can be shifted onto others... and so the tax-payer and the tax-bearer are not the same person."

Corvée

"Governments rarely pay 'fair' market prices and... often intervene in the economy in a way that distorts prices in their favor. All of these activities depend on existing political and economic institutions... For example, in a pinch they can do it through outright coercion by confiscating resources or expropriating the means of production. Even seemingly market-based compensation often includes an element of coercion... One such coercive method was the corvée - mandatory unpaid labor imposed on peasants for state projects (like road-building or military logistics)."

Conscription

"Even when coercive methods could succeed, the troops they produced were badly motivated, prone to desertion, and untrained. In other words, their military effectiveness was very low. Rulers that wished to remain competitive would have to increase their income to afford to pay higher wages or get the cooperation of power elites to extend conscription at low pay... The Prussians drew the most relevant lessons [from 1859]. The conscription system introduced in 1814 was revitalized... Now every male of military age was to serve three years on active duty, then another four in the reserve, and then pass into the Landwehr... This system was vindicated by the brilliant performance of the Prussian army... Most European states introduced reforms to imitate the Prussian model, with... conscription, and General Staff."

Poll (capitation) tax

*"One type of direct tax was a head tax or poll tax, levied as a fixed sum on each adult. Such taxes were often resented for their regressive nature. For instance, Louis XIV's capitation in France (1695) taxed individuals by social category; in 18th-century England, a poll tax contributed to the poll tax riots of 1381 (Peasants' Revolt) in earlier times and later unrest when reintroduced. The key issue was always enforcement and equity — 'whenever the government's ability to coerce citizens into paying went down, so did receipts from direct taxes.'".

Property tax

"The amount assessed was usually related to the property owned by the individual, which meant that the government had to have a pretty good idea about the wealth of its subjects. The assessment of this wealth was generally easier in cities... but it could be seriously politicized... Even then, the process of assembling the necessary documents for tax assessments proved so onerous that even the urban polities eventually abandoned the practice in favor of blunter instruments like a flat 10% tax on property."

Income tax

"Even though income and property taxes were introduced by many governments, they did not become either permanent or the most relevant sources of revenue for a very long time. Even in as advanced a commercialized society as Britain's, the yield from income taxes was initially quite disappointing, and was sometimes exceeded by voluntary contributions! Another serious problem with these taxes was in the enforcement of compliance — historically it is fairly easy to see that whenever the government's ability to coerce the citizens into paying went down so did receipts from direct taxes."

Stoppage at source

"Similarly, the increase in salaried employment made it possible for governments to withhold income taxes before payment was made to the individual. This stoppage at source dramatically expanded the income tax revenue simply because the government no longer had to rely on self-reporting by individuals... This method collects a tax with each payment... as opposed to one large lump-sum payment once or twice per year."

Customs duties

"Since the goods 'come' to the point where the tax is assessed, assessment and collection is relatively easy. Moreover, since the goods arrive 'piecemeal', it is difficult to organize resistance to such taxation, making enforcement easier as well. The two primary methods used to evade customs duties are smuggling or finding alternative trade routes... Anti-smuggling measures... could target both the supply and demand... increased patrolling by the police or coast guard, or even involving the army and navy, and punishing smugglers or dealers in contraband with stiff penalties. This makes smuggling riskier and costlier and thus reduces the supply."

Excise

"Another type of indirect tax popular with governments is excise, an internal tax usually imposed on the production for sale of particular goods. Although it requires a fairly involved bureaucracy to enforce, excise can be monitored quite effectively, usually far more so (and at lower costs of coercion) than customs. Typically, this tax is assessed on the quantity rather than value of the product, and is paid by the producer who then passes it on to the consumer in the form of higher prices. When excessive, such taxes can cause inflation, undermining the real value of the government's revenue."

Salt monopoly

"States often sought lucrative commodities to tax or monopolize. For example, France's gabelle was a notorious salt tax/monopoly. By making salt (an essential item) a state monopoly and raising its price, the Crown could extract revenue. However, such monopolies and heavy taxes could breed intense popular resentment and widespread smuggling." (The text implies how tolls and tariffs affected trade and enforcement measures; a salt monopoly is an instance of indirect taxation through monopoly.)

Tax base

*"The extent of territory or economic activity subject to taxation - the tax base - determined how much revenue a state could raise. For example, the Dutch Republic's prosperity gave it a relatively large tax base for its size (through commerce), whereas the Holy Roman Empire's fragmentation limited any single ruler's tax base. Wars often pushed rulers to expand their tax base by conquering new lands or by tapping previously exempt groups. As one analysis notes, 'political institutions that limit the ruler's ability to encroach on private property... affect the ability to expand the tax base outside of existing institutions.'".

Tax farming

*"Historically, rulers who lacked a large bureaucracy often turned to tax farming - outsourcing tax collection to private individuals or companies. The tax farmer would pay the state a fixed sum for the right to collect certain taxes (or bid in an auction for that right), and then retain any revenue above that sum as profit. This system provided rulers with immediate funds and shifted collection costs and risks to the farmers, but it was prone to abuse and corruption. As one text notes, 'the development of the commercial corporation... and the increase in salaried employment made it possible for governments to withhold income taxes at the source... [which] dramatically expanded revenue... because the government no longer had to rely on self-reporting.' This evolution from farming to direct collection reflects the shift to salaried bureaucracies.".

Fixed rent contract (tax farming)

"Under a fixed rent tax-farming contract, the tax farmer paid the treasury a set 'rent' (amount) for a given period and kept whatever taxes he collected. For example, the French General Farms was a syndicate of tax farmers who annually paid the Crown a lump sum and then gathered the gabelle (salt tax) and other duties for themselves. This provided predictable income to the Crown but incentivized the farmers to squeeze taxpayers to maximize profit."

Tax-farm auctions

"In many states, the right to collect certain taxes was auctioned to the highest bidder - these tax-farm auctions allowed wealthy financiers to compete for lucrative farming contracts. The winner would advance a sum to the state and then gain authority to collect the tax. While auctions could raise large immediate funds, they often led to extortionate collection practices as farmers tried to recoup their bids with profit."

General Farms

"The General Farms (Fermes Générales in France) were an organization of major tax farmers who collectively leased the collection of indirect taxes (like the salt tax, customs, etc.) from the Crown. They paid a hefty fixed sum and in return had broad powers to collect and enforce taxes. This consortium became immensely rich and notorious for oppression and corruption, symbolizing the inequities of Ancien Régime finance."

Direct bargaining

"Rather than impose or farm out taxes unilaterally, some rulers engaged in direct bargaining with their subjects or estates. For instance, the Spanish Crown negotiated with the Cortes (assemblies) of Castile or Aragon for servicio or donativo (grants), effectively bargaining taxation for certain privileges or exemptions. In the Dutch Republic, provincial States would bargain with their towns on quotas. Such bargaining meant taxation was often a result of political negotiation, trading fiscal consent for redress of grievances ('redress before relief')."

Monopsony (in tax farming)

"In a monopsony, there is only one buyer facing many sellers. In the context of tax farming, the state was often the sole buyer of the right to collect taxes, while numerous financiers 'sold' offers for that right (bidding in auctions). This gave the state leverage, but in practice competition among bidders could drive up the cost of rents. Conversely, if a syndicate of financiers colluded, they could act as a monopsony, being the only ones offering to finance the state, thus dictating terms. The term underscores the power dynamics in fiscal contracts where either the state or financiers could dominate."

Farming syndicate

"A farming syndicate refers to a group of tax farmers pooling resources to bid for large tax contracts (like the French General Farms). By banding together, they could raise larger advances to the state and manage broader tax operations collectively. This reduced competition among themselves (effectively cartelizing tax farming) and enabled more efficient (if often ruthless) collection, as seen with the Fermiers-Généraux who even had their own armed enforcement."

Deficit spending

"Instead of revenue determining which policies to pursue, the desired policies determined the revenue they had to raise. Often rulers simply spent on wars and then scrambled for money - leading to deficit spending funded by loans or debasement. For example, by the late 18th century, France routinely spent more than it earned (with war costs), accumulating debt that contributed to its fiscal crisis in 1789."

Share contract (tax farming)

"In some tax-farming arrangements, rather than a fixed rent, farmers and the state used a share contract: the farmer would collect taxes and remit a percentage (share) to the treasury, keeping the rest. This aligned incentives somewhat, as both state and farmer gained from increased yield, but it also required trust and oversight to prevent under-reporting by farmers. The readings allude to farmers' profits and state shares implicitly when discussing how farmers enjoyed asymmetrical rights - an indication that many deals gave farmers a substantial portion of collections."

Venal offices

"Early modern monarchies often sold public offices (offices vénales) to raise revenue. Buyers paid a hefty price to obtain a post (which often came with income and social prestige). This practice of venal offices meant the bureaucracy was filled with office-holders who had in essence 'purchased' their jobs (and many expected to recover their investment via fees or graft). It provided short-term funds but entrenched corruption and resistance to reform (since offices became property rights)."

Salaried bureaucracy

"Over time, states moved from patrimonial or venal office systems to a salaried bureaucracy - officials paid a regular wage by the state, rather than living off fees or purchased office rents. This professionalization, exemplified by Prussia's merit-based civil service or post-Revolutionary France's bureaucracy, meant officials were beholden to the state for their income (not to private profit from office). It was part of the broader shift to centralized, rationalized administration (the emergence of the modern state staffed by salaried officials)."

Fixed wage contract

"In tax collection, a fixed wage contract is the opposite of tax farming: instead of private collectors taking a cut or profit, the government hires agents on a set salary to collect taxes, turning them into employees. This was the essence of replacing farms with bureaucrats - a trend in the eighteenth and nineteenth centuries. For example, after the French Revolution, the régie system paid tax collectors fixed wages, eliminating farmers' profit motive in exchange for more direct state control."

Ordinary vs. extraordinary revenue

"Monarchs traditionally distinguished ordinary revenue (regular income from the royal domain, feudal dues, customary taxes) from extraordinary revenue (special taxes granted for emergencies, especially war). For instance, the English Crown's ordinary revenues included rents, feudal fees, customs duties like tonnage and poundage; extraordinary revenues were subsidies granted by Parliament during war. Many political conflicts (like the English Civil War) arose when rulers tried to tap extraordinary revenue without proper consent. In theory, ordinary income should fund peacetime governance, while extraordinary taxes were temporary wartime measures."

Coercive extraction

*"We can imagine a spectrum of fiscal strategies from voluntary to coercive. Coercive extraction refers to methods relying on force or the threat of force to obtain resources - for example, soldiers quartering in taxpayers' homes until taxes are paid (a common practice), or outright seizure of goods (requisition). As the text explains, such tactics are 'highly inefficient... costly... risky because it provides opportunities for abuse... increasing resistance... riots... revolts'. Hence, while rulers in dire straits might use coercion, they found it unsustainable in the long run."

Commitment problem (in taxation)

"Fundamentally, the issue is whether the ruler can credibly commit to following some policy... When it comes to taxes, can he credibly commit to use them in accordance with the wishes of the taxpayers?... If the ruler is 'above the law,' absolute and unconstrained, he can only credibly commit to pursue policies in his own interest — any other promise would not be credible since there's no way to enforce it... This inability to commit not to abuse tax revenue or not to raise future taxes creates a commitment problem that can seriously impede cooperation on taxation."

Free-rider problem

"When the ruler calls on elites to provide revenue or troops, each elite may prefer that others pay the costs. This free-rider problem can plague collective defense or tax efforts - each region or noble hopes others will contribute so they can shirk. For example, under the Polish-Lithuanian liberum veto system, any single noble's refusal (a kind of extreme free-riding) could prevent common tax raises, undermining the state's finances."

Divergent preferences

*"Rulers and elites often had divergent preferences over policy and spending. Elites wanted low taxes and targeted spending (e.g. defense of their own lands), whereas rulers wanted higher revenues for broader or more aggressive policies. 'When the ruler and elites have divergent preferences, the ruler's inability to credibly commit to policies preferred by the elites can seriously undermine fiscal cooperation.'. In short, misaligned priorities between those who supply funds and those who spend them made war financing contentious."

Moral hazard (in war financing)

"A king who could finance his wars via coercive transactions... 'would enter too many wars, with too little chance of victory, in the process bankrupting his financiers... Thus, the king's own grasping might eventually result in his being constrained to make all his financial transactions voluntarily.'. This highlights a moral hazard: if someone else pays the cost (the elites or creditors), the ruler might engage in riskier, costly wars. Effective constitutional checks (like parliamentary control of war budgets) were designed to mitigate this moral hazard by forcing rulers to bear political or fiscal consequences of war."

Willingness to pay

*"The willingness to pay of elites and taxpayers depended on their trust in the ruler and stake in the war. If they believed the war was necessary and that others were contributing fairly, they'd pay more. But if they feared the ruler's misuse of funds (commitment problem) or that others would shirk (free-riding), their willingness fell. As noted, 'if the ruler's ability to coerce went down, so did receipts', implying taxpayers pay up only when compelled or convinced. Generating willingness often required offering concessions or demonstrating the threat (e.g., patriotism surged willingness during existential wars)."

Laffer curve

*"In essence, there are limits to taxation: set rates too high and the tax base collapses (people evade or the economy shrinks). The Laffer curve concept (though not explicitly named in the readings) is mirrored in historical observations: 'taxation will stabilize at positive but fairly low levels: the ruler will be generally underfunded relative to the wealth available... attempts to increase that revenue would provoke frequent revolts.'. The idea is that beyond a point, higher tax rates yield less revenue as behavior adjusts - an implicit understanding rulers had when they spoke of not killing the golden goose."