question_answer

  What were the causes for the empty treasure of France under Louis XVI? Assess any three causes. Or State any five causes for the empty treasury  of France under Louis XVI.  (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.

Answer:

                  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.