Upon his accession the new king found an empty treasury
Long years of war had drained the financial resources of France
Added to this was the cost of maintaining an extravagant court at the immense palace of Versailles
Under Louis XVI, France helped the thirteen American colonies to gain their independence from the common enemy, Britain
The war added more than a billion livres to a debt that had already risen to more than 2 billion dime
Lenders who gave the state credit, now began to charge 10 per cent interest on loans
The French government was obliged to spend an increasing percentage of its budget on interest payments alone
To meet its regular expenses, such as the cost of maintaining an army, the court, running government offices or universities, the state was forced to increase taxes
Even this measure would not have sufficed
French society in the eighteenth century was divided into three estates, and only members of the third estate paid taxes
Old Regime
The society and institutions of France before 1789
Estates in French society
Clergy
Nobility
Third estate
Peasants
Made up about 90% of the population
Only a small number owned the land they cultivated
About 60% of the land was owned by nobles, the Church and other richer members of the third estate
Clergy and nobility
Enjoyed certain privileges by birth
Most important was exemption from paying taxes to the state
Nobles
Enjoyed feudal privileges
Extracted feudal dues from the peasants
Peasants were obliged to render services to the lord
The Church extracted its share of taxes called tithes from the peasants
All members of the third estate had to pay taxes to the state
These included a direct tax, called taille, and a number of indirect taxes which were levied on articles of everyday consumption like salt or tobacco
The burden of financing activities of the state through taxes was borne by the third estate alone
Livre
Unit of currency in France, discontinued in 1794
Clergy
Group of persons invested with special functions in the church
Tithe
A tax levied by the church, one-tenth of the agricultural produce
Taille
A tax to be paid directly to the state
Estates General
A political body to which the three estates (clergy, nobility, commoners) sent their representatives
Calling a meeting of the Estates General
1. Monarch decides when to call a meeting
2. Estates General passes proposals for new taxes
The last time the Estates General was called was in 1614
Louis XVI called together an assembly of the Estates General
5 May 1789
Composition of the Estates General
First and second estates (clergy and nobility) sent 300 representatives each
Third estate (commoners) had 600 representatives who had to stand at the back
The third estate was represented by its more prosperous and educated members, while peasants, artisans and women were denied entry
The third estate brought 40,000 letters listing their grievances and demands
Voting in the Estates General
Each estate had one vote
The third estate demanded voting by the assembly as a whole, with each member having one vote
King rejected this proposal
The third estate walked out of the assembly and boycotted in protest
National Assembly
The representatives of the third estate viewed themselves as spokesmen for the whole French nation
Formation of the National Assembly
1. Assembled in the hall of an indoor tennis court
2. Declared themselves a National Assembly
3. Swore not to disperse till they had drafted a constitution for France that would limit the powers of the monarch
Leaders of the National Assembly
Mirabeau and Abbé Sieyès
Mirabeau was born in a noble family but was convinced of the need to do away with a society of feudal privilege
Abbé Sieyès wrote an influential pamphlet called "What is the Third Estate?"
While the National Assembly was drafting a constitution