2. The establishment of the Directory

When did the Thermidorians produce a new constitution?

In 1795

What was the Thermidorians constitution designed to do?

To prevent a return to a monarchy or to a dictatorship like that of the CPS and to control by the common people, the sans-culottes.

France was to be ruled by a new governing committee of five, called the Directory.

The Directory were:

• chosen by the Council of Ancients from a list drawn up by the Five Hundred.

• To hold office for five years

One was chosen by lot to retire each year.

The National Convention (Legislature) was replaced by two Councils:

Council of Five Hundred

Council of Ancients

Explain the Council of Five Hundred:

• all members had to be over 30

• Initiated legislation

Explain the Council of Ancients:

• All 250 members and to be over 40

• Approved or rejected legislation

Explain the annual elections for the Council of Five Hundred and Council of Ancients:

• Annual elections for both changed one-third of members each year.

What was the new indirect system of elections?

All males over 21 who paid direct taxes (approximately 5.5 million men) could vote for a special elite group called electors. These electors, rich men who paid high taxes (approximately 30,000), voted for Council members.

How did the Constitution have several weaknesses?

• Yearly elections led to instability.

• There was no mechanism to resolve disputes between the Directors and the two Councils. This could, and did, lead to stalemate and inaction.

How did the Directory face serious economic problems:

• The Directory first tried to solve the problem of inflation by issuing a new paper currency.

• When that failed and had to be withdrawn, metal coins became the legal currency.

• As there were not enough coins in circulation, trade and commerce were hindered. Deflation was the result.

• This failure made the Directory unpopular with all sections of society.

How did the Directory face financial problems? (Govt finances)

The Directory was more successful with solving the problem of government finances. In September 1797 two-thirds of the national debt was written off through the issue of special bonds to government creditors. These bonds could be used to buy national property, i.e. property confiscated from the crown, the Church and others. However, these bonds fell in value until they became worthless. This resulted in a loss by those who had lent to the state. It was called the bankruptcy of two-thirds. The debt was now gone but at the cost of the Directory losing the support of all those original government creditors.

How did the directory deal with government income

For government income the Directory relied in part on the profits of war, plunder taken from captured territories in Germany and Italy. This allowed the Directory to function but at the cost of greater reliance on the army and on an aggressive war policy. Problems remained with hostility from the émigrés who had fled from France to stir up opposition and also from hostile foreign powers in the Second Coalition against France (see page 54).

Who was the finance minister who provided the lasting solution?

Vincent Ramel

In 1798 how did Vincent Ramel reform the tax system?

By introducing four new direct taxes; the tax on windows and doors hit the rich hardest.

Reintroducing an indirect tax, the octrois, a tax on goods entering towns

Making tax collection more efficient.

What were the effects of Vincent Ramels policies?

To balance government finances, but at the cost of alienating those sections of society adversely affected by the bankruptcy and new taxes.