re open to France as it layin financial disaster. Decreasing the armed forces wasone resort, but it would cost jeopardizing France’sinternational position at a moment when the Eastern -6-Europe’s instability made the situation forbidding. Asecond recourse could have been to increase taxes, andbegin levying them on the nobility. France was alreadyperceived to have the highest taxes in all of Europe,but because of the separation of estates, there wasgreat taxing diversity. The mid 1700’s seemed mostcostly to France due the period of the Seven Years War,and thereupon introduced a new tax, the vingtieme, onproperty in the amount of five percent. The tax wastripled in the event that it would be diminished afterthe war, and peace was concluded. These new taxes werenot an ample burden on the nobility, especially comparedto the taxes that the third estate was oppressed with. Nevertheless, the new taxes were a fairly substantialincrease in what they were accustomed to paying, so theywere best determined to protest against the upturningstrain. They were already exempt from paying thetaille, a tax for military purposes, because their dutywas to wage war. Consequently, the government’s costsrose, because they could not levy an adequate sum offunds to provide for its expenditures. This compelledthe government to use borrowing as another means offunds, usually from its own citizenry. -7-A third remedy France could use to abdicate itsoverwhelming debt was to declare bankruptcy. Countries,earlier in time, have often adopted this resort, but itwas becoming less popular and less respectable. Thenation’s credit would be distraught as investors wouldconclude their money not safe in its hands. France hadno publicly supported bank as did the English and Dutch,so they had no means in which its credit could becheaply conveyed. Since France acquired its borrowedmoney from its citizens, usually the bankers of theBourgeois class, ...
