Napoleon's Financial Reforms

What was the size of French debt in 1799 which NB inherited from the Directory?

Debt was worth over 450million francs

Which three institutions did NB use to rationalise the French government's financial system?

The Ministry of the Treasury, The Ministry of Finances and the Audit oFfice

Was the difference between the Ministry of the Treasury and the Ministry of Finances?

The Treasury was in charge of government expenditure while Finances was responsible for the collection of taxation and revenues

What was the role of Audit Office from 1807?

To check up and review all government spending (ensure financial responsibility)

During the Napoleonic period, what % of government income was from land tax?

29%

What type of taxation was increased to fund Napoleon's various wars?

Indirect taxation (unpopular from the AR)

When did Napoleon establish France's central bank, 'The Bank of France'?

1800

When did Napoleon reintroduce salt tax (controversial)?

1806 #gabelle #returntoAR

When did NB reorganise the Central Treasury?

1800

By how much did indirect tax on salt, alcohol and tobacco increase?

It quadrupled

When was a land register introduced to ensure the collection of land tax?

1807

How did Napoleon structurally reform tax collection in the departments?

He appointed a panel of tax collectors per department who were under the supervision of prefects

How did Napoleon ensure that France received the financial gains of the war?

He aggressively taxed war profiteers (those who earned from the war)

When was the Bank of France brought under state control and when were sub-branches established across France?

Brought under state control in 1806 and sub-branches established in 1808

Which national economic policies did the Bank of France have sole jurisdiction over?

The supply of paper currency and administering public borrowing/government bonds

Why did NB ensure that there was a small supply of paper currency?

To avoid potential inflation

Which policy did the Bank of France introduce to manage the national debt?

It introduced a sinking fund-- essentially set money aside in order to ensure that debts are paid off (v responsible)

How was the Bank of France's safeguarding of government bonds inadvertently enlightened?

The protection of government bonds essentially meant the protection of the biens nationaux because the two were linked

When did NB introduce the new currency, francs, and what was its value attached to?

In 1803 the franc de germinal was introduced and its value was attached to gold and silver-- provides currency stability

When did the franc remain stable until?

The franc remains a stable currency until 1914

In which year was the budget balanced by NB (no more deficit) and why?

The budget is balanced in 1802 due to indirect taxes-- NB does not have to just write off his debts to make this happen

Until which year did NB avoid bankruptcy in France?

NB avoids bankruptcy until 1813 (war catches up with him)

How were NB's economic successes in part due to good fortunes in the war?

Military victory in 1801 provided war plunder which helped the economy and France got a break from military spending in 1802 due to the short lived Peace of Amiens

Which US state was sold from France to the US in 1803 and what was the economic effect?

Louisiana was sold to the US, which helped bring more income in-- NOT NB's fiscal polices themselves

How were NB's economic policies assisted by good harvest?

There was economic upturn in 1801 due to good harvests leaving the French with greater disposable income

By 1818, what fraction of France's land had actually been surveyed?

Only 1/5 -- difficult because France is so vast

Which war would go on to threaten economic stability?

The War of the 3rd Coalition in 1803

In what year did France re-enter debt?

1810 France was in debt again, after 8 years of no debt

What brought about inflation in 1811?

A poor harvest

By 1813, how many francs of deficit was France in?

149 franc deficit

Who were the two most important Ministers of the Interior for NB's industrial policies?

Chaptal and Montalivet

What % of the 1807 budget was spent on Napoleon's military exploits?

60%

After the Russian Campaign (which cost 700 million francs) what controversial measure did NB take to raise money?

He passed a law saying the state would seize communal land and sell them off