Chapter 20: Financial and economic changes
Taxation
N had to maintain a high level of taxation because of the cost of war. He kept the contribution foncière (land tax,
which provided the bulk of government revenue) that he inherited from the Directory. During the consulate,
the contribution personelle mobilière (tax on personal properties such as servants and carriages) was also
collected in urban areas. However, this brought in a comparatively small amount of revenue and was
sometimes more costly to collect than it was worth. Other direct taxes, including customers duties and fees for
registrations and services, also continued as before. Where possible, however, N sought to increase revenue
and make collections more effective.
In 1807, N’s officials began drawing up a new cadastre (land register) to measure the value of land in
order to recalculate the land tax. This was not only to make the tax fairer but also to ensure that farmers
who had increased the value of their land paid more tax as a result. The compilation of the new register
took far longer than expected and only a fifth of the country had been assessed by 1815.
From September 1803, following the lead of Paris, towns and cities were allowed to levy an octroi on
consumer goods entering the administration. This gradually came to replace the contribution
personellle mobilière.
Tax collectors and inspectors were appointed for each départment and paid in proportion to the taxes
they collected. Their tax receipts were passed to receivers, who were subject to the inspection of central
government.
The Constitution of Year VIII established a commission to take responsibility for the accounting of state
revenue and expenditure. From this came the Cour des Comptes of September 1807: a central bureau
for handing and auditing the state’s finances. It kept detailed accounts of income and expenditure and
ministries and had to have certified authorisation for the release of money.
However, in a situation of almost continuous war, any improvements and tax assessment and collection were
offset by the cost of maintaining the army and the Empire. Consequently, the government relied heavily on
indirect taxes on a range of goods including playing cards. Taxes on alcohol, salt and tobacco quadrupled, which
hit hard at the working-class
The central economy
Money supply
Stability and the security of N’s own position demanded further reform of the French finances. Although the
Directory had tried to address some of the problems of currency, problems remained and one of N’s first acts
was to refuse to honour agreements paid for in worthless paper money and declare the only legal tender would
be metal coinage. A new metallic currency was established in March 1803 based on gold and silver. This
confirmed the law already passed by the Directory in 1795 and fixed the weight of metal and alloy so that it
corresponded directly to the actual value of money
In January 1800 he established the Bank of France (Banque de France) in order to provide an institution that
could provide credit for both the government and for entrepreneurs. It had a small issue with paper money, and
although this was restricted to use in Paris and limited to high value 500-1000-franc notes, so of use only to
merchants. Its main purpose was to reduce and control a national currency of gold and silver coins. Its
monetary control and responsible behaviour were considerable boost to the French economy and by
controlling the sale of government bonds it also ensured that Napoleon could raise loans at reasonable interest,
by guaranteeing the repayments. From 1808, some branches were set up in other French towns where trade
was growing, and more cash fluidity was need. The Bank of France started with capital of 30 million francs
divided into shares of 1000 francs each. The 200 largest shareholders elected the 15 governors and 3 directors
who rank the bank/ this gave the wealthy elite a vested interest in the new institution. In April 1806, a new law
replaced the Central Committee with a governor and two deputy governors appointed by the Emperor.
Economic growth
Taxation
N had to maintain a high level of taxation because of the cost of war. He kept the contribution foncière (land tax,
which provided the bulk of government revenue) that he inherited from the Directory. During the consulate,
the contribution personelle mobilière (tax on personal properties such as servants and carriages) was also
collected in urban areas. However, this brought in a comparatively small amount of revenue and was
sometimes more costly to collect than it was worth. Other direct taxes, including customers duties and fees for
registrations and services, also continued as before. Where possible, however, N sought to increase revenue
and make collections more effective.
In 1807, N’s officials began drawing up a new cadastre (land register) to measure the value of land in
order to recalculate the land tax. This was not only to make the tax fairer but also to ensure that farmers
who had increased the value of their land paid more tax as a result. The compilation of the new register
took far longer than expected and only a fifth of the country had been assessed by 1815.
From September 1803, following the lead of Paris, towns and cities were allowed to levy an octroi on
consumer goods entering the administration. This gradually came to replace the contribution
personellle mobilière.
Tax collectors and inspectors were appointed for each départment and paid in proportion to the taxes
they collected. Their tax receipts were passed to receivers, who were subject to the inspection of central
government.
The Constitution of Year VIII established a commission to take responsibility for the accounting of state
revenue and expenditure. From this came the Cour des Comptes of September 1807: a central bureau
for handing and auditing the state’s finances. It kept detailed accounts of income and expenditure and
ministries and had to have certified authorisation for the release of money.
However, in a situation of almost continuous war, any improvements and tax assessment and collection were
offset by the cost of maintaining the army and the Empire. Consequently, the government relied heavily on
indirect taxes on a range of goods including playing cards. Taxes on alcohol, salt and tobacco quadrupled, which
hit hard at the working-class
The central economy
Money supply
Stability and the security of N’s own position demanded further reform of the French finances. Although the
Directory had tried to address some of the problems of currency, problems remained and one of N’s first acts
was to refuse to honour agreements paid for in worthless paper money and declare the only legal tender would
be metal coinage. A new metallic currency was established in March 1803 based on gold and silver. This
confirmed the law already passed by the Directory in 1795 and fixed the weight of metal and alloy so that it
corresponded directly to the actual value of money
In January 1800 he established the Bank of France (Banque de France) in order to provide an institution that
could provide credit for both the government and for entrepreneurs. It had a small issue with paper money, and
although this was restricted to use in Paris and limited to high value 500-1000-franc notes, so of use only to
merchants. Its main purpose was to reduce and control a national currency of gold and silver coins. Its
monetary control and responsible behaviour were considerable boost to the French economy and by
controlling the sale of government bonds it also ensured that Napoleon could raise loans at reasonable interest,
by guaranteeing the repayments. From 1808, some branches were set up in other French towns where trade
was growing, and more cash fluidity was need. The Bank of France started with capital of 30 million francs
divided into shares of 1000 francs each. The 200 largest shareholders elected the 15 governors and 3 directors
who rank the bank/ this gave the wealthy elite a vested interest in the new institution. In April 1806, a new law
replaced the Central Committee with a governor and two deputy governors appointed by the Emperor.
Economic growth
