Sometimes you feel like everything is going bad and gonna be devastated. The second half of 18th century was as same as the situation of whole country, one of the biggest and powerful, the most ancient one of Europe, of France. At the end of 7 years wars (1763), centre of the power of Europe was shifted to Britain. Consequences of the war were too heavy even for winners, not too many years later Britain would face with uprising which would turned into a revolution in USA.
France was the oldest and biggest kingdom in Europe with its ancient and unplanned monarchy. It was unplanned since it had been always reformed according to daily needs. At the top of the state there was a king with absolute authority which could be used against even clergy and nobles but usage of this authority over these classes was not preferable even many reforms was taken in order to sustain these estates' privileges. As a result France was not ready to handle consequences of this war. It had big problems, which had been growing throughout years, the judiciary, for example, was perceived to be over staffed, underemployed, and its procedures slow, expensive, and unreliable. The system of absolute monarchy had become controversial after Isaac Newton and Montesquieu. Isaac Newton had showed that the entire universe is operated according to the laws of God and God do not suspend these laws arbitrarily so it is madness to rule the country according to arbitrary and personal rules. On the other hand Montesquieu had showed the importance of separation of state powers (executive – legislative – judicial), and the danger of despotism.
However, the biggest problem was economical. How would France be saved? They need theory and practice in order to revive economy and there had been the first well-developed theory of economics emerged, called Physiocracy, which was going to lead the first liberal movements and thinkers while preparing the revolution at the backstage.
Under these circumstances one of the pioneers of Physiocracy, Anne Robert Jacques Turgot was named as minister of the navy and in a short term as a minister of France in order to save France.
July 1774 – Anne Robert Jacques Turgot was appointed as minister of the navy. Turgot at the same time was the founder of the theory of Diminishing returns.
August 1774 – Turgot was appointed as minister of Controller- General of Finances. Turgot's policy, in face of the desperate financial position, was to enforce the most rigid economy in all departments. All departmental expenses were to be submitted for the approval of the controller-general. On the other hand he suppressed the participation of France in the American Revolutionary War.
13 September 1774 – Turgot's most significant act was signed. There would be free trade in grain. In Ancient Regime of France bread was the main source of food and the first duty of King was to supply bread to all of his subjects. (Prime Baker of the Kingdom nickname of the King) One of the main duties of police was to control the purity of the flour and make sure that no one would hide grains to drive up prices. Furthermore, in order to be sure that every region had sufficient amount of grain, the grain police controlled the export and import of grain to regions. However there would not be any control anymore.
Turgot as Turgut Ozal of Turkey in 90's, policy was “laissez faire, laissez passer", meaning leave it alone and let it pass. And he made a lot of enemies by this act.
1775 – Jacques Necker published his Essai sur la législation et le commerce des grains, in which he attacked the free-trade policy of Turgot. Necker was Swiss birth, Protestant economist.
April /May 1975 – Without control on distribution of grain and as a result of poor harvest, famine arose at some regions while on the others plenty amount of grain was stored. Bread prices increased. People began to believe government did this on purpose. So, wave of riots began. It was the messenger of revolution however it was suppressed by 25000 soldiers.
January 1776 – Six edicts of Turgot were presented to the conseil du roi. Turgot had had already a lot of enemies and as a result of these edicts everybody was at the opposite of Turgot. Two of these enactments were downright revolutionary: one not only commuted the road-building services throughout France but, unlike the earlier reform in the Limousin, put the financial burden on the hitherto tax-free nobility; the other dissolved the guilds (maîtrises and jurandes), thus destroying the old trade monopolies and introducing the principle of free enterprise.
12 May 1776 – Even though it was an absolute monarchy, nobles and clergy had great influence over king. So, Turgot who made both of three estates enemy of himself could not bear and he was dismissed.
June 1777 – In June 1777 Necker was made director-general of the finances – he could not be controller because of his Protestant faith. Necker had to raise income either by new taxation or by loan. The first option was not useful since peasants had no money to give and if he would tried to take it from nobles and clergy, his faith would be the same with Turgot. On the other hand second option seemed impossible too, since credibility of France in international money market was too low because of previous experiences about kingdom of France.
He genius decided to support revolutionaries in America. The consequences of this support would be business partnership with Americans instead of Britain, territorial gain and to boost French credit in the international money market so as to sustain borrowing.
1781 – Necker published his most influential work Compte rendu au roi “Report to King”. In this work, he aimed to show success of his policy by supporting of Revolution. He raised income without any taxation by only loans.
On the other hand he showed expenditures of crown to ordinary people by the first time. Necker attained high popularity among ordinary people, who were particularly sympathetic to a minister who, unusual for someone in high office, had been a commoner. Before, the people had never considered governmental income and expenditure to be their concern, but the Compte rendu made them more proactive.
19 May 1781 – Necker resigned. It was never done before in France. Necker continued to criticise his successors after his resignation. Necker would be minister at the future however it would not be kingdom of France but the First Republic of France.
3 September 1783 – The Treaty of Paris signed in Paris by representatives of King George III of Great Britain and representatives of the United States of America ended the American Revolutionary War. However, it was the victory of America not France. After the war America keep going to trade with England rather than France, additionally there was not any territorial gain for France.
Necker left a big amount of dept which was caused of loans taking during the American Revolution. So, Necker's decision of support American Revolution ended as only expenditure without any gain. His successors could not handle with this issue.
