Closely connected with the attack upon the Church was the embarrassing
question of finance. No man, on the outbreak of the Revolution,
enjoyed so high a reputation for finance as Necker, and no man probably
misused that reputation more. Everyone knew that the financial
embarrassments of the country were the real cause of the summoning of
the States-General. Everyone knew that there was, first, an enormous
annual deficit amounting to at least 120 or 130 million francs, and
rising for the year 1789 to a much higher figure, and, secondly, a
very heavy floating debt. The natural course, and the only wise one,
would have been for the Minister to have laid bare at once all the
embarrassments of the State, and to have used his great popularity and
credit for facing the difficulty boldly, and for setting matters on a
satisfactory footing for the future. Instead of that, Necker, either
for mistaken political reasons, or for more personal and less worthy
causes, from the first minimised the financial difficulty, represented
the deficit as much less than it was, described the work of restoring
order in the finances as 'mere child's play,' and concealed the worst
features of the situation from the public to whom he appealed for
support. Necker's system of finance had been to proceed by raising
loans on favourable terms--a system for which his financial reputation
and connections gave him peculiar facilities. During the summer of
1789, he continued to carry on this system, and the State lived, for
a time, upon the money which Necker raised by loan or borrowed from
the Caisse d'Escompte, and upon the patriotic contributions which
enthusiastic ladies and gentlemen poured into the Exchequer. But by the
autumn, it had become clear, even to Necker, that this system would
not do for ever, that the credit of the State was not improving, that
loans could no longer be raised with success, and that the condition
of the finances generally was far worse than it had been five months
before. Thereupon, at the end of September, Necker came forward with
a heroic remedy, and thanks to the support of Mirabeau, he induced
the Assembly to consent to an extraordinary tax of one quarter of all
incomes in the country, to be paid within the next three years.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account