Financial Crisis

Money Problems

• Louis XVI ran huge deficits

• This accounted for 20% deficit.
   
• In 43 yrs, war had cost 1066 million livres.
   
• Tax had reduced, and the privileged classes were unwilling to change.
   
• Louis XVI had his officials attempt reforms of the tax system, including tax on all land, whether the owners were from any estate.
   
• These failed and as high class revolt spread, Louis XVI called a meeting of the Estates General
   
• It contained 939 representatives of the church, nobility and third estate.
   
• Considered unreliable it had last met in 1614.
   
• With financial crisis, Louis XVI had ended payments from the royal treasury in Aug 1788