King John, on succeeding his father in 1350, found the treasury empty and the resources of the kingdom exhausted. He was nevertheless obliged to provide means to continue the war against the English, who continually harassed the French on their own territory. The tax on merchandise not being sufficient for this war, the payment of public debts contracted by the government was suspended, and the State was thus obliged to admit its insolvency. The mint taxes, called seigneuriage, were pushed to the utmost limits, and the King levied them on the new coin, which he increased at will by largely alloying the gold with base metals. The duties on exported and imported goods were increased, notwithstanding the complaints that commerce was declining. These financial expedients would not have been tolerated by the people had not the King taken the précaution to have them approved by the States-General of the provincial states, which he annually assembled. In 1355 the States-General were convoked, and the King, who had to maintain thirty thousand soldiers, asked them to provide for this annual expenditure, estimated at 5,000,000 livres parisis, about 300,000,000 francs of present currency. The States-General, animated by a generous feeling of patriotism, "ordered a tax of eight deniers in the pound on the sale and transfer of all goods and articles of merchandise, with the exception of inheritances, which was to be payable by the vendors, of whatever rank they might be, whether ecclesiastics, nobles, or others, and also a salt tax to be levied throughout the whole kingdom of France." The King promised as long as this assistance lasted to levy no other subsidy and to coin good and sterling money--i.e., deniers of fine gold, white, or silver coin, coin of billon, or mixed metal, and deniers and mailles of copper. The assembly appointed travelling agents and three inspectors or superintendents, who had under them two receivers and a considerable number of sub-collectors, whose duties were defined with scrupulous minuteness. The King at this time renounced the right of seizin, his dues over property, inherited or conveyed by sale, exchange, gift, or will, his right of demanding war levies by proclamation, and of issuing forced loans, the despotic character of which offended everybody. The following year, the tax of eight deniers having been found insufficient and expensive in its collection, the assembly substituted for it a property and income tax, varying according to the property and income of each individual.

[Fig. 282.]--The Courtiers amassing Riches at the Expense of the Poor.--From a Miniature in the 'Tresor of Brunetto Latini, Manuscript of the Fourteenth Century, in the Library of the Arsenal, Paris.

The finances were, notwithstanding these additions, in a low and unsatisfactory condition, which became worse and worse from the fatal day of Poitiers, when King John fell into the hands of the English. The States-General were summoned by the Dauphin, and, seeing the desperate condition in which the country was placed, all classes freely opened their purses. The nobility, who had already given their blood, gave the produce of all their feudal dues besides. The church paid a tenth and a half, and the bourgeois showed the most noble unselfishness, and rose as one man to find means to resist the common enemy. The ransom of the King had been fixed at three millions of écus d'or, nearly a thousand million francs, payable in six years, and the peace of Bretigny was concluded by the cession of a third of the territory of France. There was, however, cause for congratulation in this result, for "France was reduced to its utmost extremity," says a chronicler, "and had not something led to a reaction, she must have perished irretrievably."

King John, grateful for the love and devotion shown to him by his subjects under these trying circumstances, returned from captivity with the solemn intention of lightening the burdens which pressed upon them, and in consequence be began by spontaneously reducing the enormous wages which the tax-gatherers had hitherto received, and by abolishing the tolls on highways. He also sold to the Jews, at a very high price, the right of remaining in the kingdom and of exercising any trade in it, and by this means he obtained a large sum of money. He solemnly promised never again to debase the coin, and he endeavoured to make an equitable division of the taxes. Unfortunately it was impossible to do without a public revenue, and it was necessary that the royal ransom should be paid off within six years. The people, from whom taxes might be always extorted at pleasure, paid a good share of this, for the fifth of the three millions of écus d'or was realised from the tax on salt, the thirteenth part from the duty on the sale of fermented liquors, and twelve deniers per pound from the tax on the value of all provisions sold and resold within the kingdom. Commerce was subjected to a new tax called imposition foraine, a measure most detrimental to the trade and manufactures of the country, which were continually struggling under the pitiless oppression of the treasury. Royal despotism was not always able to shelter itself under the sanction of the general and provincial councils, and a few provinces, which forcibly protested against this excise duty, were treated on the same footing as foreign states with relation to the transit of merchandise from them. Other provinces compounded for this tax, and in this way, owing to the different arrangements in different places, a complicated system of exemptions and prohibitions existed which although most prejudicial to all industry, remained in force to a great extent until 1789.

When Charles V.--surnamed the Wise--ascended the throne in 1364, France, ruined by the disasters of the war, by the weight of taxation, by the reduction in her commerce, and by the want of internal security, exhibited everywhere a picture of misery and desolation; in addition to which, famine and various epidemics were constantly breaking out in various parts of the kingdom. Besides this, the country was incessantly overrun by gangs of plunderers, who called themselves écorcheurs, routiers, tardvenus, &c., and who were more dreaded by the country people even than the English had been. Charles V., who was celebrated for his justice and for his economical and provident habits, was alone capable of establishing order in the midst of such general confusion. Supported by the vote of the Assembly held at Compiègne in 1367, he remitted a moiety of the salt tax and diminished the number of the treasury agents, reduced their wages, and curtailed their privileges. He inquired into all cases of embezzlement, so as to put a stop to fraud; and he insisted that the accounts of the public expenditure in its several departments should be annually audited. He protected commerce, facilitated exchanges, and reduced, as far as possible, the rates and taxes on woven articles and manufactured goods. He permitted Jews to hold funded property, and invited foreign merchants to trade with the country. For the first time he required all gold and silver articles to be stamped, and called in all the old gold and silver coins, in order that by a new and uniform issue the value of money might no longer be fictitious or variable. For more than a century coins had so often changed in name, value, and standard weight, that in an edict of King John we read, "It was difficult for a man when paying money in the ordinary course to know what he was about from one day to another."

The recommencement of hostilities between England and France in 1370 unfortunately interrupted the progressive and regular course of these financial improvements. The States-General, to whom the King was obliged to appeal for assistance in order to carry on the war, decided that salt should be taxed one sol per pound, wine by wholesale a thirteenth of its value, and by retail a fourth; that a fouage, or hearth tax, of six francs should be established in towns, and of two francs in the country,[B] and that a duty should be levied in walled towns on the entrance of all wine. The produce of the salt tax was devoted to the special use of the King. Each district farmed its excise and its salt tax, under the superintendence of clerks appointed by the King, who regulated the assessment and the fines, and who adjudicated in the first instance in all cases of dispute. Tax-gatherers were chosen by the inhabitants of each locality, but the chief officers of finance, four in number, were appointed by the King. This administrative organization, created on a sound basis, marked the establishment of a complete financial system. The Assembly, which thus transferred the administration of all matters of taxation from the people at large to the King, did not consist of a combination of the three estates, but simply of persons of position--namely, prelates, nobles, and bourgeois of Paris, in addition to the leading magistrates of the kingdom.

This is the origin of the saying "smoke farthing."

The following extract from the accounts of the 15th November, 1372, is interesting, inasmuch as it represents the actual budget of France under Charles V.:--

Article 18.Assigned for the payment of men at arms50,000 francs.
" 19.For payment of men at arms and crossbowmen newly formed42,000 "
" "For sea purposes8,000 "
" 20.For the King's palace6,000 "
" "To place in the King's coffers5,000 "
" 21.It pleases the King that the receiver-general should have monthly for matters that daily arise in the chamber10,000 "
" "For the payment of debts10,000 "
Total131,000 "

[Settlement of Accounts by the Brothers of Cherité-Dieu of the Recovery of Roles]