Question

What were the causes for the empty treasury of France under louis 16 ? Access any 3 causes

Answer 1

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 1st estate Clergy 2nd estate Nobility billion livres. Lenders who gave the state credit, now began to charge 10 per cent interest on loans. So 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. Yet 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.