cost of maintaining
office and other government building made the Treasury empty
The reasons for empty treasury in France are:
1) Maintanence of luxurious pplace of versailes.
2) High maintenance cost of courts, armies etc.
3) Long years of war.
4) The government has taken loan from money lenders who charged high interest rate.
5) Help 3 amerivan colonies to gain imdependenCE from Britain.
Five causes for the empty treasury of France under Louis XVI are: (i) Long years of war had drained the financial resources of France. (ii) High cost of maintenance of immense palace of Versailles and court. (iii) Under Louis XVI France helped the thirteen American colonies to gain independence.
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In 1774, Louis XVI of the Bourbon family of kings ascended the throne of France. He found an empty treasury. The causes for it was (i) Long years of wars had drained the financial resources of France. The condition was served when under Louis XVI, France helped the thirteen American colonies to gain their independence from Britain. (ii) The king's court at the immense palace of Versailles was extravagant. A huge amount of money was required for its maintenance. (iii) Taxes were levied only on third estate and exempted first and second estates which were rich. (iv) The war with Britain added more than a billion livres to a debt that had already risen to more than 2 billion livres. (v) Lenders who had given the state credit, now began to change 10 per cent interest on the existing loans. So, the French government had to spend an increasing percentage of its budget on interest payment.
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What were the reason behind an empty treasury upon the access of Louis 16 in 1774?
The reason behind an empty treasury upon the access of Louis 16 in 1774 was mostly king of France like Louis 16 are pleasure loving, extravagant. They regard the national income as their personal in come. Louis 16 squandered the money in wars, and luxurious life of king and queen. Able ministers like Turgot and Necker tried to improve the financial condition of the state but they were dismissed.
1.Under Louis XVI,France helped the thirteen American colonies to gain freedom from common enemy Birtain.The war added more than a thousand livres to a depth that was already rising.
2.Long years of war had drained the financial resources of France and added to this was the cost of maintaining an extravagant court at the immense palace of Versailles.
3.Moneylenders started giving state credit and started charging 10% interest on loans.Therefore the government was obliged to spend an increasing amount of its money in paying the interest loans.
4.The government needed money to maintain the court,the army,the government universities and offices.
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