Compte rendu
Encyclopedia
The Compte rendu was a document published in February 1781 by Jacques Necker
, finance minister to the King, in which he presented the state of France's
finances.
However, Necker's reporting of the accounts obscured the financial problems which the country was facing: it did not report the extraordinary accounts, where the real cost of the war was to be found and which showed France in a significant deficit - between 1777 and 1781, Necker had raised 520 million livres in new loans. Had these been reported, lenders would have been unlikely to continue to lend money for the war.
After Necker left his position as finance minister, there was a succession of finance ministers under whom the true financial situation came to light. The Compte rendu was also arguably a factor in causing resistance to attempts in 1787 by the then-finance minister Calonne
to reform the financial system in 1787. Calonne argued that the state finances were in a poor state and thus required overhaul to ensure greater efficiency in taxation. The Assembly of Notables
, to whom the reforms were initially proposed, were sceptical of this explanation, possibly as a consequence of the belief that France remained in a strong position from the time of Necker.
After a succession of different finance ministers, Louis later re-appointed Necker in the view that he was in the best position to manage France's growing credit problems. Necker remained as popular as ever, which meant that when he was dismissed on 11 July 1789, a public outcry ensued. Combined with the simultaneous economic crisis - the price of grain had skyrocketed over the winter of 1787-8 - this contributed to the storming of the Bastille
on 14 July.
Jacques Necker
Jacques Necker was a French statesman of Swiss birth and finance minister of Louis XVI, a post he held in the lead-up to the French Revolution in 1789.-Early life:...
, finance minister to the King, in which he presented the state of France's
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
finances.
Content of the report
The report stated that ordinary revenues in France were exceeding expenditure by over 10 million livres. The health of the accounts as reported in the Compte rendu boosted confidence among lenders and ordinary people, who saw Necker as a strong financial manager due to his prior experience as a banker; the report bolstered his reputation further. As a consequence, the French government was able to raise new loans to pay for the costs of continued involvement in the American War of Independence.However, Necker's reporting of the accounts obscured the financial problems which the country was facing: it did not report the extraordinary accounts, where the real cost of the war was to be found and which showed France in a significant deficit - between 1777 and 1781, Necker had raised 520 million livres in new loans. Had these been reported, lenders would have been unlikely to continue to lend money for the war.
Contribution to a revolutionary situation
The Compte rendu was accepted because of Necker's reputation, but it also acted to bolster that reputation; despite the costs of war, it seemed that France remained in a strong financial position. Necker attained high popularity among ordinary people, who were particularly sympathetic to a minister who, unusually for someone in high office, had been a commoner.After Necker left his position as finance minister, there was a succession of finance ministers under whom the true financial situation came to light. The Compte rendu was also arguably a factor in causing resistance to attempts in 1787 by the then-finance minister Calonne
Charles Alexandre de Calonne
Charles Alexandre, vicomte de Calonne was a French statesman, best known for his involvement in the French Revolution.-Rise to prominence:...
to reform the financial system in 1787. Calonne argued that the state finances were in a poor state and thus required overhaul to ensure greater efficiency in taxation. The Assembly of Notables
Assembly of Notables
The Assembly of Notables was a group of notables invited by the King of France to consult on matters of state.-History:Assemblies of Notables had met in 1583, 1596–97, 1617, 1626, 1787, and 1788. Like the Estates General, they served a consultative purpose only...
, to whom the reforms were initially proposed, were sceptical of this explanation, possibly as a consequence of the belief that France remained in a strong position from the time of Necker.
After a succession of different finance ministers, Louis later re-appointed Necker in the view that he was in the best position to manage France's growing credit problems. Necker remained as popular as ever, which meant that when he was dismissed on 11 July 1789, a public outcry ensued. Combined with the simultaneous economic crisis - the price of grain had skyrocketed over the winter of 1787-8 - this contributed to the storming of the Bastille
Storming of the Bastille
The storming of the Bastille occurred in Paris on the morning of 14 July 1789. The medieval fortress and prison in Paris known as the Bastille represented royal authority in the centre of Paris. While the prison only contained seven inmates at the time of its storming, its fall was the flashpoint...
on 14 July.