IMMEDIATE CAUSE WAS A FINANCIAL CRISES-ORIGINATING WITH THE WAR IN AMERICA-WHICH WAS FINANCED BY BORROWING-AND WAS ALSO USED TO PAY OFF ARREARS.IT GREW TO SUCH A LARGE DEFICIT IN AUGUST 20th 1786,THAT CALONNE SENT LOUIS XVI.A NOTE DECLARING STATE REFORM IMPERATIVE.THE FISCAL ADMINISTRATION WAS CONFUSED AND DIFFICULT TO REFORM DUE TO VESTED INTREST.
THE MARCH 1788 STATEMENT OF FINANCIAL EXPECTATIONS-THE 1st AND LAST BUDGET OF THE OLD REGIME-ESTIMATED-
| EXPENDITURE | 629 MILLION LIVRES |
| RECEIPTS | 503 MILLION LIVRES |
| DEFICIT | 126 MILLION LIVRES |
OR 20%-DEFICIT.% OF TOTAL BUDGET.
THE REASON WHY WAS COURT WASTEFULLNESS AND FINANCIERS PROFITS.
THE DEPT REQUIRED 318 MILLION,MORE THAN HALF OF THE EXPENDITURES OF THE STATE.
SOLUTION:RAISING TAXES AND EQUALITY OF TAXATION.
HEAVY GRAPE HARVEST-DREADFUL SLUMP IN THE WINE MARKET.PRICES FELL BY 50%,FOR MANY PEASANTS IT WAS THE MOST PROFFITABLE MARKET PRODUCT.SHARECROPPERS FOUND THEIR INCOME REDUCED TO NOTHING.PLUS ALSO GRAIN PRICES FELL CAUSING GREAT HARDSHIP ON FARMERS.THIS ALSO SPREAD UNEMPLOYMENT IN THE RURAL AREAS.
1785:DROUGHT KILLED OFF MUCH OF THE LIVESTOCK
1788:GRAIN CROPS FAILED
1789:PRICES OF BREAD ROSE STEADILY.
IN JULY 1789 IN PARIS A POUND OF BREAD COST 4 SOUS.BUT WAGE EARNERS CONSIDERED 2 SOUS PER POUND THE HIGHEST PRICE THEY COULD POSSIBLY PAY.IT WAS STILL SUBSIST,JUST ENOUGH TO FEED A FAMILY.BREAD WAS THE STAPLE FOOD AND AVERAGE DAILY CONSUMPTION RANGED FROM 1 AND A HALF POUND PER PERSON TO 2 OR 3 FOR AN ADULT MANUAL LABOURER.
LIVING STANDARDS OF THE MASSES WAS STEADILY DECLINING.BUT FAMINE OVERWHELMED THE POPULACE.THE FINAL BLOW WAS THE COLLECTORS AND LORDS PROFITED FROM THE HIGH PRICES OF FOOD,THE RESULT WAS AN INCREASED IN POVERTY.THE NOBLES STUBBORNLY DEFENDED THEIR PRIVILEGES.
GET YOUR OWNFREE HOME PAGE