THE MINISTRY OF THE DUC DE BOURBON, 1723–6
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laws of the market upset their calculations. Instead of producing a notable fall in
prices, so that the artificial inflation of the Law system would be eradicated, the
policy had the opposite effect. Faced with a reduction in the value of coins, and
assuming that another was to follow, the seller would increase his prices to ensure
that he would receive in money the value of his goods after the next reduction, or
he would refuse to sell (with the result that money chased too few goods). The
buyer hastened to spend his coins for fear that he would need to pay more after
the next reduction. At the same time debts, kept in money of account and paid in
cash, were effectively increased. So the policy favoured rentiers and creditors, but
failed to bring about a significant drop in prices. The circulation of specie rapidly
dried up. The result was a commercial and industrial crisis of considerable
proportions in most areas of France. According to the calculations of Akabane,
the crisis took effect before the bad harvests of 1725 became a problem; but when
the crop failed the crisis was seriously aggravated.
Since in June 1725 it was not possible to realise the full extent of the crisis or to
predict the crop failure as a result of heavy storms, it was by bad luck rather than by
bad timing that extensive new tax proposals were decreed at that time. Bourbon,
over-confident now that he had a pliable Queen in the hands of his own party (for
her household was almost entirely composed of his friends such as Prie, Bernard
and Duvernay) began the necessary but disastrous reforms.
50
Foreseeing
considerable opposition, Bourbon had the tax edicts registered in the Paris
parlement in a lit de justice without waiting for their examination to produce the
inevitable protests. Of the edicts registered, that of 5 June creating a 2 per cent tax
on property was the most important.
Although this tax, known as the cinquantième, seems to have been mainly
inspired by the wartime dixième of 1710 and by the writings of Vauban, there were
some notable innovations. The most significant lie in the aim of the tax. A
memoir of June 1725 makes it clear that it was intended to be a universal tax on
proprietors with no exempt classes, unlike previous occasions.
51
Another
extremely important aspect of the tax was that it was intended to establish the
principle of royal taxation of the clergy, and it was hoped to discover from the
declarations how much property the clergy possessed. There is evidence too that
Paris Duvernay hoped to change the view that the King should make do with the
income that he could extract from traditional sources, by ensuring instead that
sufficient ordinary revenue would be at the disposal of the central government to
enable it to administer the state.
The royal declaration of the cinquantième emphasised that it was to last no more
than twelve years, which therefore seems to contradict this view. However, the
temporary nature of the tax was probably the result of the failure of the contrôleur
général to carry the full project through the council, where the majority of
members regarded the tax as a means of financing the expected war against Spain
and Austria.
52
In a memoir of 24 May 1726, the eldest Paris made it clear that he
regarded the provision of sufficient ordinary revenue as a fundamental precept for
the government. He believed that it was possible to set right the financial affairs