Colbert’s Regency, 1687-1694
From The Great Administrators of France, 1782, Henri de Saint-Simon
Colbert was one of the great giants of French history. Increasingly dominating the Council over the reign of Louis the Thirteenth, by his rise to regent he was the minister of no less than seven ministries (the navy, forestry, mining, manufactures, fortresses, logistics, and the treasury) and had his fingers in almost every other ministry in the Council. In a kingdom where administration became dominated by the army and the aristocracy, the fact that Colbert, a mere bureaucrat commoner, was able to rise to the top of the government, just underscores the capability and undying industriousness of that great man.
Colbert’s skill was put to the ultimate test late into his life: at the age of 68, he became the regent of Henri III and became sole ruler of France. The seven years of the Colbert regency saw a complete shift in French politics, the deconstruction of Louis XIII’s army-led government, and the creation of a doctrine which France has followed for the whole of this century.
Colbert’s reputation as a fiscal genius remains into modernity; among all of France’s rulers his reputation alone has not changed over the years
But what we should keep in mind is the conditions from which Colbertism made sense. Colbert came to power in a France suffering from plague, in a deep panic where as many as a fifth of the French subjects were destitute, and where the French state itself was deeply in debt. This was a far worse problem than we see it as: now, a century later and in retrospection, we
know that the next century would be a golden age, filled with prosperity, advances in technology, and a period of French cultural dominance unrivaled by any period since Rome. But at the time this was a serious matter: if France was not to break from its period of mass listlessness and destitution, the loss of nearly a quarter of her population would like have remained, and the ‘victory’ France achieved against the Netherlands would have entrenched itself, and the “Golden Age” would never have occurred. It was Colbert’s deft steering of this crisis which brought about the Golden Age, rather than some inevitable series of events, and it was his actions later which have created the economic ideology which France has retained since. I shall list my discussion of Colbert’s actions by separating them into three categories: the development of debt and colonial shares as a means of financing projects, the focus on internal trade, and the development of local industrial techniques for the national benefit.
A)Colonial and National Debt
The first issue at hand was France’s debt. Without access to funds France would not be able to recover from her crisis, and further taxes would just worsen an already bad situation. But
Colbert's manipulations of the French debt had made creditors unwilling to provide the French state with further funding, and Colbert had already sold nearly half of royal lands as well as a massive assortment of positions and privileges. This assortment of auctions for positions and privileges came from the brutal economic fact of the old regime: that there were little to no taxes assigned to the rich, who owned the majority of land and held the majority of wealth. And even though the French state had not even scratched the surface of the billions of livres stocked within the treasuries of the grand nobility, there were few things which he would be able to sell which would give him access to this vast store of wealth. But by Colbert’s luck he had found the one thing which would access that wealth: stock in the French colonial companies.
Colbert began selling stock in each of the French colonial companies, starting with the South China company.
While the English and Dutch had funded their colonial ventures via joint-stock companies from the beginning, French expansion outside of Quebec had always come through conquest and had been strictly under the purview of the government. However, these companies had brought in a massive amount of profit: the East Indies company alone had given France a third of her income. This had led to a series of requests for the opening up of these companies to some form of stock market, requests which Louis XIII had denied, under the idea that the administration of the colonies was a military matter. Colbert had no such scruples, and began opening up the French colonies to stock trading one at a time, starting with the South China Company, then moving on to the East India Company, the Suez Shipping Company*, the West Africa Company and the Antilles Company. The French state took five percent of all purchases, and beyond that started selling Company debt while taking ten percent of those purchases. Within a three year span, money from Company bonds and stocks gave France forty million livres, which allowed Colbert to pay off the highest interest loans and begin his other projects. Since Colbert succeeded in leveraging colonial debt to the benefit of the metropole, France saw the normalization of the royal debt, and kings afterwards saw debt bills, whether they came from the crown or the colonies, as one of the primary means to fund the treasury.
B)Internal Trade
Henri II had begun the development of French infrastructure with the creation of a series of canals which connected Paris and Caux to the Lowlands, based off of technology recently discovered from the Chinese. These canals were mostly oriented towards external trade: the Lowlands had always been more connected to the outside of France than the inside, and the canals gave the Seine basin the same advantage; Parisian goods were now shipped via the Bruges port to Sweden, England, Hannover, England, Italy. Now Henri and all the administrators after him knew that this was not the best means of transporting goods within France, that a system of kingdom wide roads would allow for not only external but internal trade. But this road system seemed impossible to fund and unnecessary so long as the canals connected France’s major cities.
The roads were considered unfundable, both in terms of construction and maintenance. But as Colbert and Vauban worked together in Bresse, they discovered an innovative means to fund a series of roads built to supply France’s new fortresses on the Franco-Italian border. Colbert knew that setting up a series of toll roads would allow the roads system to maintain itself, but was only able to begin construction after 1688, when the funds from the sale of East Indies Company stock allowed him to do.
The New Toll Roads set up by Colbert, which began with ‘Vauban’s Roads’ which supplied the fortresses on the French border and ended with the “Breton Road” in 1712. The colors indicate toll areas
The Royal Roads, which connected France’s major cities and major areas of agricultural and manufactorial production, began to weaken France’s dependence on finishing imports. While France continued to rely on the transformation of colonial and foreign goods into luxuries for her manufacturing industry (with particularities of dependence in the textile industry, which had 60% of its goods coming from the transformation of silk, a trend even more highly defined in Lyon, Canadian wood in the furniture industry which accounted for 50% of inputs, not to mention porcelain, coffee, tobacco), the development of the road system led to the development of some lower-prince industries, like woolen textiles, pine furniture, and metalworking. It also brought employment to portions of France ravaged by the plague.
The creation of a national market for French goods went a small ways towards undoing the problems of French manufacturing. However it has now reinforced the problems it was created to solve. The tolls which funded the road have not changed in the six centuries since they were built, a time when ocean travel became far cheaper. We have returned to a time where it is cheaper to import and finish goods rather than relying simply on the national market.
C-The forgotten link; New Industries Part 1: Orleans
The last element of Colbert’s actions which have been mostly forgotten by later administrators and by history itself. While mining has become an increasingly important industry in France, we have forgotten how it began, and while Orleans whiskey has become popular amongst the masses, few have considered its origins. Both the whiskey industry and the beginnings of mining in the Central date to Colbert’s actions during his regency, and his promotion of new and innovative local industries.
In 1690, with the highest interest debt paid down and with the first Royal Roads under construction, Colbert opened the Council to traders and merchants who wanted to ask for support in the creation of new industries in areas facing high vagrancy. While many of the requests were ridiculous, one request by Francis Detrac, merchant of Orleans, caught his eye. Orleans was one of the most heavily recruited regions in France during the war and had left much of her wheat crop fallow. Beyond that the city had lost nearly a half of its population during the war and was in desperate straights. Detrac suggested that the development of a whiskey distillery (a new technology in the 17th century which had barely broken out of Ireland) would increase the national product while creating a center of employment for the bourgeoisie of Orleans. Colbert agreed.
The beginnings of the Detrac Whiskey Company in Orleans ([color]yes I know, but French beer?????????????? No. No, I deny this.[/color])
Orleans had been an army town since its integration into France, with little in the city besides the Army Academy and the University. This meant that most of the town’s residents would leave upon graduation and made Orleans very much a ‘satellite town’ of Paris. This was true of a number of nearby cities which had little economic power of their own. In chartering the distillery Colbert began a shift away from a French economic system based on several equally sized but small cities (Nantes, Lyon, Bordeaux) oriented around the economic engine of the French Lowlands, to a system of several far larger cities powered by mono-industry small towns and based primarily around Paris.
The creation (and, later, expansion) of the Detrac distillery had another effect: it was the first major government project since Louis XII which excluded the guilds. Henri II, who had focused heavily on guild-controlled Flandres, leaned hard on the guilds in his projects, leading to the dominance of the journeymen for any construction work, and the focus on luxury materials. The Derac Distillery, which soon became the largest employer in Orleans, had no guild associated with it, allowing for cheaper labor and cheaper products.
Part 2: The Massif Central
Colbert oversaw another major development in the French economy: the exploitation of the Central mountain range’s metals. The Massif Central covers nearly a fifth of our country, and its broken and arid hills have impoverished the South since the ebbing of the Mediterranean’s influence. In 1692, after the resolution of the debt crisis and after the completion of the first of the royal roads around Paris and the Detrac distillery, Colbert was looking for a project in the south of France, which was found in a petition from the cities of Limoges and Saint Etienne.
The Massif Central range encompassed the majority of Auvergne, but its major cities (which finished and refined the ore mined in the range) were Limoges and Saint-Etienne
The two cities were on each side of the Massif, and both had developed methods to refine the metal which came from those hills; Limoges refined copper into bronze and Saint Etienne was in the process of trying to replicate Alsatian steel. Both of these industries were desperately important to the French interest: despite having the largest army in all of Europe, France had few weapons manufactories and mostly relied on imported Swiss muskets and cannon.
Colbert responded to these requests by pouring money into the Massif Central, expanding mining operations and chartering France’s first weapons manufactory in Saint-Etienne. As the 17th century turned to the 18th, iron became the center of early French industry, undergirding the growth in construction, the beginnings of the tool industry, clockmaking and of course cannons and muskets.
The expansion of mining in Auvergne was the beginning of a total shift in the French economy from the household upward
The Massif Central area is now, if not the richest province, the most economically advanced. Through the rest of France and through the whole of French history, France had two advantages over her rivals: the strength of her luxury industries, which came through her guilds and provided the courts of the world with beauties not yet seen since the time of the Greeks, and the flexibility of the French domestic economy. These have become weaknesses we must overcome if France is to become a modern economic power.
The strength of luxury goods such as silk have created a space where laggardly means of hand-production have survived, and perversely many feel that this is the best way to make products and still partake in the consumption of these foolish trinkets. Put simply, the strength of our luxuries has retarded the development of our industries and created a force which have denied us that development: the guilds.
The French peasant lives a simple life which is economically complicated; he goes and tills his fields until nightfall, then returns home and helps the rest of his family to create some basic good, usually textiles. Previously, this allowed France to have a deeply flexible industry where a multitude of goods were created and finished in the provinces. Now, it keeps us from achieving what we could. The insular nature of the French domestic economy means that there is no need for consumption, no exchange of currency, no concentrated centers of industrial innovation. The time that the peasant spends creating products at his home is manhours wasted, the same for the time of his children and wife, who should also be working. Work should be specialized, with each province doing only what is best for that province. Only in Auvergne do we see this tendency, with the Gironde estuary producing only grain and livestock for the surrounding mines, where the mines employ three quarters of the population for refining in Saint Etienne, Moulins, and Limoges. This is the ideal province, the best hope for our country.
*
Editors note: French relations with the Ottoman Empire allowed a caravan to pass with goods from the East Indies. Although a majority of goods shipped across the Cape due to how dangerous the route was, the Suez passageway allowed France to maintain trading relations with her eastern colonies during the wars and had become deeply profitable. It also led to a co-dependency between French traders and North African corsairs which led to the beginnings of the Mediterranean War