The author of the new financial measures of 1539 was the chancellor Poyet, a man of ability, who owed his advancement to the favor of Montmorency. Several very excellent measures are due to him, pre-eminently numerous ordinances relating to the inalienability of the royal domain, which he promulgated as a fundamental law of the monarchy, a law which the weak successors of Henry II repudiated. He also endeavored to suppress dishonest administration in the provinces. Thus he called to account both the marshal Montjean, whose exactions in the Lyonnais produced wide complaint, and Galiot de Genoullac, the sire d’Acir, whose stealings were enormous. These measures would have had a salutary effect if the administration of justice had been independent and honest in France. Unfortunately Poyet’s reputation for integrity was not as great as it should have been in a minister, and his policy made him many enemies.
The incomes of Francis I, great as they were, did not suffice for Henry II, the renewal of the war continuing to increase his necessities. Under him the increase of the gabelle and the tithes and other special taxes brought the total of the revenues up to six and a half million écus, which did not yet save the King from being reduced to the necessity of making alienations and loans, which reached on the day of his death fourteen millions of écus, about thirty-six millions of francs.[308]
The practice of the French government of making loans, a practice which has today become familiar to us on a colossal scale, both in Europe and America, antedates the Hundred Years’ War. St. Louis contracted various loans with the Templars and Italian merchants for his crusades.[309] Philip the Fair borrowed from Italian merchants, from the Templars, and from his subjects.[310] His war with Edward I of England and his enterprises in Italy increased the amount, so that his sons inherited a considerable public debt. The Hundred Years’ War enormously increased it. We have few means of knowing what rates of interest obtained upon most of the public loans of the fourteenth and fifteenth centuries, but they were probably high in most cases. Charles VIII in 1487 fixed the rate of interest upon a loan made in Normandy at twelve deniers tournois for each livre, which would not be over 5 per cent. Seven years later, when he was preparing for the Italian campaign, a rate of two sous per livre obtained, which would be approximately equivalent to 10 per cent.
In the time of the direct Valois kings, most of the government’s loans were arranged in the provinces, as in Normandy and Languedoc. But, beginning with Francis I, the city of Paris became increasingly the place where the crown obtained financial aid, so much so indeed that the supervision of the rentes of the Hôtel-de-Ville became a separate administrative bureau of the royal treasury, although it must not be understood that the government’s operations were henceforth exclusively confined to Paris; for loans continued to be made wherever possible with towns, corporations, the clergy, and private loan brokers and bankers. These rentes of the capital, it should be understood, were technically a substitution of the credit of the city of Paris for the somewhat dubious credit of the crown.[311] From that date (1522) forward in France, government loans took the form of perpetual annuities, payable at the Hôtel-de-Ville in Paris. But other cities, such as Orleans, Troyes, Toulouse, and Rouen, also furnished the King with money in the form of annuities.
Aside from Paris, the church of France was the grand pillar of the government’s finances, and as the initiation of the rentes is due to Francis I, so to this king also is the second expedient to be ascribed. In 1516, on the occasion of the concordat, Leo X allowed Francis I to exact a new tenth, theoretically to be distinguished from the dîme of the clergy of France, the pretext being a war projected against the Turks. The new tithe was levied by the King’s officers alone, on the basis of a grand survey of the property of the clergy (Description générale du bien d’église) made in this year. In this financial survey the tax or quota of each benefice and the total of the tithe in every diocese were indicated. Thenceforth it was easy for numerous tithes to be levied by the will of the King alone. However, in order to conceal the arbitrariness of this conduct, the crown sometimes indicated its purpose to Rome which issued the necessary validation, but more often the King addressed the clergy itself united in assemblies of the bishops at Paris and in provincial or diocesan assemblies. The consent of the clergy was nothing but a formality, for the royal authority fixed in advance the sum to be paid. The diocesan assembly had nothing to do but distribute the impost. This concession of the Pope was successively renewed, under different pretexts, for a number of years, under the name of a don caritatif, and was equivalent to another tithe, the practice, prolonged year after year, at last hardening into a permanent form of taxation required of the clergy, so much so that under Henry II receivers of the “gift” were established in every diocese.[312]
Wastefulness and bad management characterized the reign of Henry II from the very first. The treasury was soon completely exhausted. A reserve of four hundred thousand écus d’or, which Francis I had amassed to carry the war into Germany, with little owing save to the Swiss, payments to whom Francis I had continued in order to prolong his alliance with them, was dissipated within a few months, and the government had resort to increased taxation and the creation of new taxes. The gabelle upon salt, from which Poitou, Saintonge, and Guyenne had hitherto been exempt, and which was now introduced into those provinces, raised a terrible revolt which was not crushed until much violence had been done and much blood shed. The renewal of the war against Charles V and the invasion of Lorraine, added to the insatiable demands of the court, required new financial expedients. Not less than eighteen times during the twelve years of the reign of Henry II were the échevins of Paris called upon to supply the King with sums of money. Four millions and a half were thus demanded of the capital. In order to obtain these sums, which the people refused to advance gratuitously, the King was forced to humiliate himself exceedingly. Thus in 1550, in a general assembly of the sovereign courts of the clergy and of the bourgeois it was reported that “the King, being obliged to give money to the English, and not having any money in his treasury except mutilated and debased currency which could not be recoined, is under the necessity of offering this debased and mutilated coin as security for a public loan.” As might be expected, this not very tempting offer did not entice the provost of the merchants, much to the chagrin of the King, who, however, consented to a short delay. But three years later Henry II was even less shameless. Although there was still just as much unwillingness on the part of the merchants of the city to take the King’s notes, this little difficulty was easily overcome by the King’s agents. If the money were not forthcoming, the sideboards of the wealthy bourgeois of Paris contained enough gold and silver plate to answer the purpose, and an edict of February 19, 1553, ordered certain specified persons to bring to the mint their vessels of gold and of silver, for which the government issued its notes.
But Paris was not the only city which was almost incessantly called upon to supply the King’s needs. Each year, and even each month, was characterized by a new demand, and numbers of the cities of France were from time to time taxed for sums which were not secured, however, without resistance to the royal treasurers. Lyons, which was at this epoch the seat of a commerce greater even than that of Paris, was more often mulcted than any other in this way. Conduct so high-handed naturally resulted not only in creating bitterness against the government, but demoralized trade as well. The credit of the government depreciated to such an extent that the rate of interest rose as high as 14 per cent.[313] During the twelve years of Henry II’s reign a greater amount in taxes had been imposed upon the people of France than in the fourscore years preceding, besides which many of the crown lands had been dissipated. Naturally “hard times” prevailed.[314]
Some members of the States-General were for bringing the officers of finance to account and obliging them to submit the list of all the grants which had been made in favor of the great and influential at the court of Henry II. But the cooler element thought that this policy could not be followed out on account of the powerful position of those involved and that occasion for new commotions only would ensue.[315] Instead, retrenchment was resolved upon. The stipends of the gentlemen of the King’s household and of the gens de finance were reduced one-half and all pensions were abridged one-third,[316] except in the case of foreigners in the King’s service, who were supposed to have no other source of income. This last provision created an outcry, on the ground that foreigners could only be so employed in time of war, save in the case of the Scotch Guard.[317] Even this was cut down, one hundred men-at-arms and one hundred archers being dismissed. The royal stables and mews were also broken up and the horses and falcons sold.[318]
Something more constructive than mere economy, however, was necessary, and the burden of paying the King’s debts fell heaviest upon the clergy. This was partly owing to the great wealth of the church; partly to the fact that the clergy had rushed in where others feared to tread, and, officiously asserting their superiority in matters of state as well as of church, had proceeded to examine the royal accounts, which the nobles and the commons were too wary to inspect.[319] The nobles took the ground that they were not concerned in the matter of paying the King’s debts, claiming that they paid their dues to the crown by personal service in war time.[320]