Economy

• Napoleon had to maintain high taxation due to war costs, kept the contribution land tax (provided most of the government's revenue).
• During the consulate, Napoleon also carried out a personal property tax on servants. However, this was difficult to collect and didn't produce much.

  Direct taxes continued, Napoleon always sought to increase revenue.
• 1807, new land register. Measured land value and recalculated tax, fairer but only a fifth of the country were assessed by 1815.
• Any improvement of tax assessment were offset by army maintenance costs, government relied on indirect tax of alcohol, salt etc.
• Better organisation, Year VIII set up a commission for the responsibility of state revenue and expenditure.
• The stability of Napoleon's position demanded more from French finance reform, declarations for the only legal tender being metal coinage and refusing agreements paid with paper money.
• January 1800 - Bank of France established.
• Bank of France's (1800) primary purpose to control currency of gold and silver coins - boosted the economy and meant Napoleon could inflict interest on loans.
• The Minister of the interior was brought in to stabilise the damaged economy:

  • Bureau of Statistics
  • Industry Encouragement Socieites
  • Chambers of Commerce
• Wood industry saw an alleged increased yield of 400% exported, silk also rose in value from 26 million to 64 million francs by 1812.
• Agriculture remained the largest sector of French economy, more large landowners emerged but much of France was still owned by small peasants.
• Divisions of farms between sons due to the civil code brought issues, and people feared improving their land in the risk of an increase in rent.
• Government encouraged cotton growth, reduce dependence on foreign exports that were disrupted by the war. Prefects reported favourable on the state of agriculture, dubious statistics on butter exports.
• The war stimulated armament production, labour was lost to the army so less of an internal demand for work.
• Napoleon paid for wars with greater taxes, conscription at low wages, loans, land sales and raids in conquered territories.

  • War had a negative impact on French trade
  • 1793 onwards, British goods banned from entering French territories
• 1806/1807 - Napoleon bans all French trade with Britain, continental blockade.
• France had no rich class with a desire to invest in industry, the bourgeoisie had been satisfied with the biens nationaux. Communications were still poor but roads did improve, many farms were still unprofitable.
• Limited economic growth after 1806.

  • Taxes were raised
  • 1809 Poor harvest worsened this
  • By 1810, France was in severe debt and suffering from inflation
  • Unemployment rose, collapse of banks and businesses
• Napoleon was forced to allow licensed trade with Britain in 1810 to raise funds, Britain was never damaged by the ban and Napoleon's aim to increase French trade failed.