Necker Resigns: A Critical Analysis of the Political Climate in 1781
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Explain why Necker resigned in 1781.
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Necker's resignation in 1781 was primarily triggered by the publication of the first public balance sheet of the French monarchy's finances, known as Le Compte Rendu au Roi. This move provoked controversy at court and ultimately undermined Necker's position in government. The reasons behind his resignation can be analyzed from various perspectives:
1. Transparency and Public Perception: Necker's decision to make the financial state of the kingdom public through the balance sheet was unprecedented. While some saw it as a move towards transparency and accountability, others, particularly conservatives at the court like the Comte de Vergennes, viewed it as inappropriate. They believed that revealing such information to the public was unnecessary and contrary to the traditional way affairs were handled in France.
2. Criticisms and Accusations: Necker's critics, including those at court, argued that the figures presented in the balance sheet were misleading. They claimed that certain expenses, like the cost of the war in America, were omitted, leading to an overestimation of revenue and a distorted picture of the kingdom's financial health. This raised suspicions that Necker's primary objective was to manipulate the numbers to enhance his own standing and protect himself against rivals within the court.
3. Political Maneuvering and Ambitions: Following the publication of the balance sheet, Necker's request to be admitted to the king's innermost council was seen as a move to consolidate his power and influence, rather than a genuine effort to improve governance. This request, coupled with his Swiss and Protestant background, fueled doubts about his loyalty to the king and intentions in serving the country.
Ultimately, the pressure from influential figures like Maurepas and de Vergennes, who threatened to resign if Necker's ambitions were indulged, led to Louis XVI's refusal to grant Necker a more prominent role. Faced with diminishing support and increasing opposition, Necker chose to resign from his position. The events leading to his resignation highlight the complex political landscape of 18th-century France, characterized by power struggles, conflicting interests, and differing views on governance and transparency.
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Why Necker Resigned in 1781
- Necker’s publication of the first-ever public balance sheet of the French monarchy’s finances (Le Compte Rendu au Roi) provoked controversy at court and undermined his position in government.
- Conservatives at the court, such as the Comte de Vergennes (Foreign Minister), were appalled at the publication. They believed that the king’s subjects had neither the need nor the right to know the state of the kingdom’s finances. Such public airing of government issues was fine for a country such as Britain, but it was not the French way.
- Critics of Necker claimed that revenue (annual surplus of 12m livres, based on 264m livres revenue set against 252m livres expenses) was over-estimated and expenses such as the cost of war in America were omitted. Necker was deliberately misleading the king and the country.
- It was claimed that the aim was not to provide a true account of the kingdom’s accounts but to bolster Necker’s own position against his rivals at court, who questioned how long loans alone could sustain finances. His request, following publication, to be admitted to the king’s innermost council, despite being Swiss and a Protestant, seemed to show he was interested only in his advancement. On the advice of Maurepas and de Vergennes, who both threatened to resign if their advice was ignored, Louis XVI refused Necker’s request. Necker resigned.
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