Chapter 20: Financial and economic policies

• Why did Napoleon need a high level of taxation?

  The costs of war
• Napoleon's direct taxes?

  He inherited customs duties and a prosperous land tax from the Directory, and created an urban tax on personal property, which was ineffective.
• Montalivet?

  A noble who had supported the revolution. He became a prefect, and later the Minister of the Interior in 1809. He oversaw the development of the infrastructure of Napoleon's France, including building bridges and ports
• Cadastre?

  A new land registry that would lead to fairer tax collection. Created in 1807. Only 20% of the country had been surveyed by 1815
• Contribution personelle mobiliere?

  A tax on personal property in urban areas. It was often too costly to be worth collecting, and was gradually replaced by the reintroduced octroi from 1803 on
• Napoleonic tax collectors?

  Appointed to each departement and paid in proportion to the taxes they collected
• Cour des Comptes?

  A central bureau for handling state finances
• Napoleon's use of indirect taxes?

  They were relied upon to fund the army, and harshly affected the working class
• Paper money?

  Almost entirely abandoned by Napoleon, but paper money was occasionally granted in high denominations to select merchants
• Metal coinage?

  A new metallic currency was introduced in 1803, which fixed the economic value of money to physical gold and silver
• The Bank of France?

  Established in 1800. An institution that was able to grant credit to the government and to entrepreneurs. It controlled the production and supply of coinage, and its presence stabilised the French economy
• Who was in charge of the Bank of France?

  France's wealthy elite elected the governors of the bank, until 1806, when the 3 governors became appointed by the Emperor
• Rulers of Italy?

  Napoleon declared himself "King of Italy" in 1805, and installed his stepson, Eugene, as Viceroy (ruler on Napoleon's behalf)
• Chaptal?

  An industrialist who was Minister of the Interior from 1800-1804. He introduced prefects and the lycees, and later joined the Senate
• Chaptal's economic reforms?

  He introduced a Bureau of Statistics to gather data, the Society to Encourage National Industry to reward triumphs of French industry, councils for agriculture in each departement and Chambers of Commerce in many of France's largest cities
• What did Chaptal encourage?

  Increased mechanisation and technical innovation
• Industrial advancements in Napoleonic France?

  Wool industry - increased its yield by 400%

  Silk - value increased by almost 250%
• Positive aspects of Napoleonic agriculture?

  Some landowners developed their estates and implemented new ideas around breeding and farming, and harvests were prosperous until 1809
• Negative aspects of Napoleonic agriculture?

  Most French land was in the hands of poor peasant proprietors, who could hardly support their own needs. The new Civil Code forced farmers to divide their land between their sons, which reduced efficiency
• Replacement crops?

  Growing crops, like cotton and sugar, locally to avoid dependency on the colonies. Prefects mandated that a certain portion of land be dedicated to these crops. This program had long term benefits
• How did war harm France economically?

  Labour was lost to the army, which also reduced the amount of internal customers. Tight taxation
• Was Napoleon ever able to balance income with war expenditure?

  Only during the Consulate
• Louisiana?

  Napoleon sold it to the US in 1803 for 50 million francs, in order to finance a planned invasion of Britain
• Impact of Britain's blockade on France?

  It badly damaged ports and cities in the west of France, such as Le Havre and Rouen, and it forced France to trade within Europe
• The continental system?

  In 1793, British goods were banned from entering France. This was intensified in 1806, when all of France's allies were forbidden from trading with Britain
• Aims of the continental system?

  Handicap Britain's trade, and enrich France by filling the new gaps in Europe's market
• Why did the continental system fail?

  The French navy could not properly enforce the blockade, and smuggling thrived - it was sometimes committed by gendarmes and other officials. British counter-action deprived the French of necessary goods, like sugar and clothes, and Britain's trade with the Americas meant that they were not financially crippled, as Napoleon had wished
• Areas which benefited from the continental system?

  Eastern areas of France, like Alsace and Strasbourg, benefited from the increased inter-European trade
• Why was there not more economic change?

  The majority of the population were still impoverished farmers, and industrial work was not attractive due to the ban on trade unions and the poor living conditions in towns and cities. The constant wars and France's small bourgeoisie class limited economic growth, and communication within France was inefficient
• Causes of the economic downturn?

  A poor harvest in 1809 combined with a banking crisis across Europe led to high levels of debt and unemployment across France, which was exacerbated by the failed 1812 Russian campaign