Jacques Necker (; 30 September 1732 – 9 April 1804) was a
Genevan banker and statesman who served as
finance minister
A ministry of finance is a ministry or other government agency in charge of government finance, fiscal policy, and financial regulation. It is headed by a finance minister, an executive or cabinet position .
A ministry of finance's portfoli ...
for
Louis XVI
Louis XVI (Louis-Auguste; ; 23 August 1754 – 21 January 1793) was the last king of France before the fall of the monarchy during the French Revolution. The son of Louis, Dauphin of France (1729–1765), Louis, Dauphin of France (son and heir- ...
. He was a reformer, but his innovations sometimes caused great discontent. Necker was a
constitutional monarchist, a
political economist, and a
moralist, who wrote a severe critique of the new principle of
equality before the law
Equality before the law, also known as equality under the law, equality in the eyes of the law, legal equality, or legal egalitarianism, is the principle that all people must be equally protected by the law. The principle requires a systematic ru ...
.
Necker initially held the finance post between July 1777 and 1781.
In 1781, he earned widespread recognition for his unprecedented decision to publish the
Compte rendu – thus making the country's budget public – "a novelty in an
absolute monarchy where the state of finances had always been kept a secret."
Necker was dismissed within a few months. By 1788, the inexorable compounding of interest on the national debt brought France to a fiscal crisis.
Necker was recalled to royal service. His dismissal on 11 July 1789 was a factor in causing the
Storming of the Bastille
The Storming of the Bastille ( ), which occurred in Paris, France, on 14 July 1789, was an act of political violence by revolutionary insurgents who attempted to storm and seize control of the medieval armoury, fortress, and political prison k ...
. Within two days, Necker was recalled by the king and the assembly. Necker entered France in triumph and tried to accelerate the
tax reform
Tax reform is the process of changing the way taxes are collected or managed by the government and is usually undertaken to improve tax administration or to provide economic or social benefits. Tax reform can include reducing the level of taxati ...
process. Faced with the opposition of the
Constituent Assembly
A constituent assembly (also known as a constitutional convention, constitutional congress, or constitutional assembly) is a body assembled for the purpose of drafting or revising a constitution. Members of a constituent assembly may be elected b ...
, he resigned in September 1790 to a reaction of general indifference.
Early life and career
Necker was born on 30 September 1732 in Geneva to Karl Friedrich Necker and Jeanne-Marie Gautier.
His father was a lawyer from Küstrin in
Neumark
The Neumark (), also known as the New March () or as East Brandenburg (), was a region of the Margraviate of Brandenburg and its successors located east of the Oder River in territory which became part of Poland in 1945 except some villages o ...
,
Prussia
Prussia (; ; Old Prussian: ''Prūsija'') was a Germans, German state centred on the North European Plain that originated from the 1525 secularization of the Prussia (region), Prussian part of the State of the Teutonic Order. For centuries, ...
(now
Kostrzyn nad OdrÄ…
Kostrzyn nad Odrą (translated literally as Kostrzyn upon the Oder; ; ) is a town in Gorzów County, Lubusz Voivodeship in western Poland, on the border with Germany.
Geography
The town is situated within the historic Lubusz Land (''Ziemia Lubus ...
,
Poland
Poland, officially the Republic of Poland, is a country in Central Europe. It extends from the Baltic Sea in the north to the Sudetes and Carpathian Mountains in the south, bordered by Lithuania and Russia to the northeast, Belarus and Ukrai ...
). After publishing some works, Karl Friedrich was appointed professor of
public law
Public law is the part of law that governs relations and affairs between legal persons and a government, between different institutions within a state, between different branches of governments, as well as relationships between persons that ...
at the
Academy of Geneva in 1725, and later served in the city's
Council of Two Hundred.
After studying at the Academy of Geneva, Necker moved to
Paris
Paris () is the Capital city, capital and List of communes in France with over 20,000 inhabitants, largest city of France. With an estimated population of 2,048,472 residents in January 2025 in an area of more than , Paris is the List of ci ...
in 1748 and became a clerk in the bank of Isaac Vernet and
Peter Thellusson.
Soon after, he managed to learn Dutch and English. One day, he replaced the first clerk in charge of trading on the stock exchange, and through a sequence of trades, he made a quick profit of half a million
French livre
The livre (abbreviation: Pound sign, £ or Livre tournois, ₶., French language, French for (pound)) was the currency of Kingdom of France and its predecessor states of Francia and West Francia from 781 to 1794. Several different livres exist ...
s.
In 1762, Vernet retired and Necker became a partner in the bank with
Georges-Tobie de Thellusson (1728–1776) (
Isaac de Thellusson's son) who managed the bank in
London
London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...
, while Necker served as his managing partner in Paris. In 1763, before the end of the
Seven Years' War
The Seven Years' War, 1756 to 1763, was a Great Power conflict fought primarily in Europe, with significant subsidiary campaigns in North America and South Asia. The protagonists were Kingdom of Great Britain, Great Britain and Kingdom of Prus ...
, he successfully speculated in British
debenture
In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowle ...
s or bonds, wheat, and possibly some shares, which he sold at a good profit in the next few years.
[''Zeitgenossen. Biographieen und Charakteristiken']
p. 72
/ref>
Necker had fallen in love with Madame de Verménou, the widow of a French officer. When she went to see Théodore Tronchin, she met Suzanne Curchod. In 1764, Madame de Verménou brought Curchod to Paris as a companion for Thelusson's children. Suzanne was engaged to British historian Edward Gibbon
Edward Gibbon (; 8 May 173716 January 1794) was an English essayist, historian, and politician. His most important work, ''The History of the Decline and Fall of the Roman Empire'', published in six volumes between 1776 and 1789, is known for ...
, but he was forced to break the engagement. Necker transferred his love from the wealthy widow to the ambitious Swiss governess; they married that year. In 1766, they moved to Rue de Cléry and had a daughter, Anne Louise Germaine, who grew to become the famed author and ''salonnière'' Madame de Staël Madame may refer to:
* Madam, civility title or form of address for women, derived from the French
* Madam (prostitution), a term for a woman who is engaged in the business of procuring prostitutes, usually the manager of a brothel
* ''Madame'' ( ...
.
Madame Necker encouraged her husband to try to find himself a public position. He, accordingly, became a syndic, or director, of the French East India Company, around which a fierce political debate revolved in the 1760s between the company's directors and shareholders and the royal ministry over its administration and the company's autonomy. After showing his financial ability in its management, Necker defended the company's autonomy in an able memoir against the attacks of Morellet in 1769.[''Réponse au Mémoire de M. l'Abbé Morellet, sur la Compagnie des Indes''] As the company never made any profit during its existence, the monopoly ended. The era of free trade had begun. Necker bought up the company's ships and stock of unsold goods when it went bankrupt in 1769.
From 1768 to 1776, he made loans to the French government in the form of life annuities and by lottery operations. His wife made him give up his share in the bank, which he transferred to his brother Louis Necker and Jean Girardot in 1772. In 1773, Necker won the prize of the Académie Française
An academy (Attic Greek: Ἀκαδήμεια; Koine Greek Ἀκαδημία) is an institution of tertiary education. The name traces back to Plato's school of philosophy, founded approximately 386 BC at Akademia, a sanctuary of Athena, the go ...
for a defense of state corporatism framed as an eulogy in honor of Louis XIV's minister Jean-Baptiste Colbert
Jean-Baptiste Colbert (; 29 August 1619 – 6 September 1683) was a French statesman who served as First Minister of State from 1661 until his death in 1683 under the rule of King Louis XIV. His lasting impact on the organization of the countr ...
. Necker's capital amounted to six or eight million livres, and he used Château de Madrid as a summer house. In 1775, in ''Essai sur la législation et le commerce des grains'', he attacked the physiocrats, like Ferdinando Galiani
Ferdinando Galiani (2 December 1728, Chieti, Kingdom of Naples – 30 October 1787, Naples, Kingdom of Naples), known in French contexts as ''Abbé'' Galiani, was an Italian economist, a leading Italian figure of the Enlightenment. Friedrich Niet ...
, and questioned the laissez-faire
''Laissez-faire'' ( , from , ) is a type of economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies or regulations). As a system of thought, ''laissez-faire'' ...
policies of Turgot, the Controller-General of Finances
The Controller-General or Comptroller-General of Finances () was the name of the minister in charge of finances in France from 1661 to 1791. It replaced the former position of Superintendent of Finances (''Surintendant des finances''), which was ab ...
. Turgot had made too many enemies; in May 1776, he was dismissed. But his successor, Clugny de Nuis, died in October. Therefore, on 22 October 1776, on the recommendation of Maurepas, Necker was appointed "''Directeur du trésor royal''". (As a Protestant, Necker could not serve as Controller.)[Necker's First Ministry: 1776–81](_blank)
/ref>
Finance Minister of France
On 29 June 1777, according to his daughter in her "Vie privée de Mr Necker" he was made director-general of the royal treasury and not Controller-General of Finance which was impossible because of his Protestant faith. Necker refused a salary, but he was not admitted to the Royal Council. He gained popularity through regulating the government's finances by attempting to divide the ''taille
The ''taille'' () was a direct land tax on the French peasantry and non-nobles in ''Ancien Régime'' France. The tax was imposed on each household and was based on how much land it held, and was paid directly to the state.
History
Originally ...
'' and the capitation tax more equally, abolishing a tax known as the ''vingtième d'industrie'', (a value-added tax
A value-added tax (VAT or goods and services tax (GST), general consumption tax (GCT)) is a consumption tax that is levied on the value added at each stage of a product's production and distribution. VAT is similar to, and is often compared wi ...
) and establishing '' monts de piété'' (pawnshop-like establishments for loaning money on security). Necker tried through careful reforms (abolition of pensions, mortmain, droit de suite
''Droit de suite'' ( French for "right to follow") or Artist's Resale Right (ARR) is a right granted to artists or their heirs, in some jurisdictions, to receive a fee on the resale of their works of art. This should be contrasted with policies su ...
and more fair taxation) to rehabilitate the disorganized state budget. He abolished over five hundred sinecures and superfluous posts. Together with his wife, he visited and improved life in hospitals and prisons. In April 1778 he remitted 2.4 million livres from his own fortune to the royal treasury.[''Sur l'administration de M. Necker'', p. 365] Unlike Turgot – in his ''Mémoire sur les municipalités'' – Necker tried to install provincial assemblies and hoped they could serve as an effective means of reforming the Ancien régime
''Ancien'' may refer to
* the French word for " ancient, old"
** Société des anciens textes français
* the French for "former, senior"
** Virelai ancien
** Ancien Régime
** Ancien Régime in France
{{disambig ...
. Necker succeeded only in Berry
A berry is a small, pulpy, and often edible fruit. Typically, berries are juicy, rounded, brightly colored, sweet, sour or tart, and do not have a stone or pit although many pips or seeds may be present. Common examples of berries in the cul ...
and Haute-Guyenne, where he installed assemblies with an equal number of members from the Third Estate.
His greatest financial measures were his use of loans to help fund the French debt and his use of high interest rate
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, ...
s rather than raising taxes. The collection of indirect taxes
An indirect tax (such as a sales tax, per unit tax, value-added tax (VAT), excise tax, consumption tax, or tariff) is a tax that is levied upon goods and services before they reach the customer who ultimately pays the indirect tax as a part of ma ...
was restored to the farmers-general (1780), but Necker reduced their number by a third and subjected them to sharper scrutiny and control. In September 1780, Necker asked for his dismissal, but the King refused to let him go.
Compte rendu au roi (Report to the King)
By 1781, France was suffering financially, and, as director-general of the royal treasury, he was blamed for the rather high debt accrued from the American Revolution
The American Revolution (1765–1783) was a colonial rebellion and war of independence in which the Thirteen Colonies broke from British America, British rule to form the United States of America. The revolution culminated in the American ...
.[Taylor, George. Review of ''Jacques Necker: Reform Statesman of the Ancien Regime,'' by Robert D. Harris. ''Journal of Economic History'' 40, no. 4 (1980): 877–879. ] A series of pamphlets appeared, criticizing Necker. Jacques-Mathieu Augeard attacked him on his foreign origin, his faith, and economic choices. The main reason behind this was the action of Necker "cooking the books" or falsifying the records. He brightened the picture by excluding military outlays and other 'extraordinary' charges (Menus-Plaisirs du Roi
The Menus-Plaisirs du Roi () was, in the organisation of the France, French royal household under the Ancien Régime, the department of the Maison du Roi responsible for the "lesser pleasures of the King", which meant in practice that it was in ...
) and ignoring the national debt. Both Necker and Calonne were deceived with the number of pensions and gratifications. The king spent much more on his brothers than on public health. After Necker had shown Louis XVI his annual report, the king tried to keep its contents secret. Necker met the challenge aggressively by asking the King to bring him into the royal council. In revenge, Necker made the '' Compte rendu au roi'' public; in no time between 200,000 copies were sold. It was rapidly translated into Dutch, German, Danish, Italian and English.
In his most influential work, which brought him instant fame, Necker summarized governmental income and expenditures to provide the first record of royal finances ever made public. The Account was meant to be an educational piece for the people, and in it, he expressed his desire to create a well-informed, interested populace. Before, the people had never considered governmental income and expenditure to be their concern, but the ''Compte rendu'' made them more proactive.
Maurepas became jealous, and Vergennes called him a revolutionist. Necker declared that he would resign unless given the full title and authority of a minister, with a seat on the Conseil du Roi
The (; 'King's Council'), also known as the Royal Council, is a general term for the administrative and governmental apparatus around the King of France during the Ancien Régime designed to prepare his decisions and to advise him. It should no ...
. Both Maurepas and Vergennes replied that they would resign if this was done. When Necker was dismissed on 19 May 1781, people of all stations flocked to his home at St. Ouen. In August 1781 Madame Necker went as far as Utrecht
Utrecht ( ; ; ) is the List of cities in the Netherlands by province, fourth-largest city of the Netherlands, as well as the capital and the most populous city of the Provinces of the Netherlands, province of Utrecht (province), Utrecht. The ...
to buy the libels that appeared in the name of Turgot against her husband. She even tried to have the booksellers arrested.
After his dismissal, Necker bought an estate in Coppet. His brother Louis purchased an estate in Cologny. Both estates were located near Lake Geneva
Lake Geneva is a deep lake on the north side of the Alps, shared between Switzerland and France. It is one of the List of largest lakes of Europe, largest lakes in Western Europe and the largest on the course of the Rhône. Sixty percent () ...
. In retirement, Necker, believing in "credible policy", occupied himself with law and economics, producing his famous ''Traité de l'administration des finances de la France'' (1784). Calonne tried to prevent the distribution of the book in Paris.[Zeitgenossen: Biograhien und Charakteristiken, Ausgaben 1–4, p. 6](_blank)
/ref> Never had a work on such a serious subject obtained such general success; 80,000 copies were sold.
Second term as Controller-General
The Necker family returned to the Paris region, supposing they were present at the wedding of their only daughter Germaine in January 1786. The impending national bankruptcy
A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full when due. Cessation of due payments (or receivables) may either be accompanied by that government's formal declaration that it wil ...
of France caused Calonne to convene an Assembly of notables under the elimination of parlement
Under the French Ancien Régime, a ''parlement'' () was a provincial appellate court of the Kingdom of France. In 1789, France had 13 ''parlements'', the original and most important of which was the ''Parlement'' of Paris. Though both th ...
s in order to enforce tax reforms. It had not met since 1626. One could not issue new loans without the Parlements' approval. In his speech, Calonne expressed doubts about Necker's statistics in the ''Compte rendu''. According to him, they were false and misleading,[]] as the state revenues had been revised upwards. For Calonne, the French deficit was caused by Necker, who had not raised the taxes. However, Calonne got involved in several financial scandals regarding the "Calonne Company" and was dismissed by the king on 8 April 1787.[The French East India Company](_blank)
/ref> On 11 April, Necker replied on the charges made by Calonne. Two days later Louis XVI banished Necker by a ''lettre de cachet
''Lettres de cachet'' (; ) were letters signed by the king of France, countersigned by one of his ministers, and closed with the royal seal. They contained orders directly from the king, often to enforce actions and judgments that could not b ...
'' for his very public exchange of pamphlets.
After two months, Necker was allowed to return to Paris. Necker published his ''Nouveaux éclaircissement sur le compte rendu''. Also Louis Philippe II, Duke of Orléans
Louis Philippe II, Duke of Orléans (Louis Philippe Joseph; 13 April 17476 November 1793), was a French Prince of the Blood who supported the French Revolution.
Louis Philippe II was born at the to Louis Philippe I, Duke of Orléans, Louis Phi ...
and his secretary Charles-Louis Ducrest came up with proposals. The next minister of finance Loménie de Brienne resigned within fifteen months. On 24 August 1788; the king allowed him an enormous pension.
On 25 or 26 August, Necker was called back to office accompanied by fireworks. According to John Hardman, Marie-Antoinette helped to organise Necker's return to power. This time he insisted on the title of Controller-General of Finances
The Controller-General or Comptroller-General of Finances () was the name of the minister in charge of finances in France from 1661 to 1791. It replaced the former position of Superintendent of Finances (''Surintendant des finances''), which was ab ...
and access to the royal council.
Necker was appointed as Chief minister of France
The chief minister of France or, closer to the French term, chief minister of state (), or prime minister of France were and are informal titles given to various personages who received various degrees of power to rule the Kingdom of France on beha ...
. He revoked the order of 16 August requiring bondholders to accept paper instead of money; government bonds rose 30% on the market.
On 7 September 1788, Paris was looking at famine, and Necker suspended the exportation of corn, purchased seventy million livres of wheat, and publicly reposted the decree of the King's Council of 23 April 1789 allowing police to inspect granaries and private inventories of grain, but none of these efforts could solve the problem. In 1788, insurrections broke out in Brittany, and Necker was sacked again. In a letter to Florimond Claude, Comte de Mercy-Argenteau
Florimond Claude, comte de Mercy-Argenteau (20 April 1727 – 25 August 1794) was an Austrian diplomat, statesman of French noble ancestry, in the service of the Holy Roman Empire.
Early life
He was born in Liège, Prince-Bishopric of Lie ...
, Marie-Antoinette took personal credit for forcing the king's hand on this matter. She believed that Necker would lessen the King's authority and wrote "the moment is pressing. It is very essential that Necker should accept."
Impact of the American Revolution
One of the most significant fiscal issues Necker faced was the American Revolutionary War
The American Revolutionary War (April 19, 1775 – September 3, 1783), also known as the Revolutionary War or American War of Independence, was the armed conflict that comprised the final eight years of the broader American Revolution, in which Am ...
and the resulting debt. The war was popular with almost every Frenchman, except Necker. For the first time, the king waged a war without raising the taxes. As France had financed its participation almost exclusively by municipal bonds
A municipal bond, commonly known as a muni, is a Bond (finance), bond issued by state or local governments, or entities they create such as authorities and special districts. In the United States, interest income received by holders of municipal ...
, Necker warned of the consequences for the French national budget as the war continued. (The war had cost the state already ca. 1.5 billion livres.) The ministers of War and Navy
A navy, naval force, military maritime fleet, war navy, or maritime force is the military branch, branch of a nation's armed forces principally designated for naval warfare, naval and amphibious warfare; namely, lake-borne, riverine, littoral z ...
were especially hostile towards him.
In 1781, Congress appointed Robert Morris as
Superintendent of Finance after the US went bankrupt. In 1783, Morris cut off interest payments to France, its largest foreign creditor. This led Necker to seek funds from elsewhere. Nicolaas van Staphorst told Necker that the entire French debt might be redeemed without any loss through the Amsterdam capital markets. The Van Staphorsts made an offer for the American bonds. Necker warmed to the proposal but asked for collateral and the sanction of a large investment bank. Necker decided that without collateral or the sanction of a major investment bank, the proposal was not acceptable.
Thomas Jefferson
Thomas Jefferson (, 1743July 4, 1826) was an American Founding Fathers of the United States, Founding Father and the third president of the United States from 1801 to 1809. He was the primary author of the United States Declaration of Indepe ...
, who had succeeded Franklin as American minister to France and John Adams
John Adams (October 30, 1735 – July 4, 1826) was a Founding Fathers of the United States, Founding Father and the second president of the United States from 1797 to 1801. Before Presidency of John Adams, his presidency, he was a leader of ...
as head of American finance in Europe in 1785, learned about the meeting between the Van Staphorsts' representatives and the French Minister of Finance only in November 1786, when he received a redacted document describing the Dutch offer from Étienne Clavière, a Genevan banker and pro-America.
The Dutch bankers advanced the treasury sufficient funds to forestall a crisis over the next year. The winter of 1788–89 was one of the bitterest in history. By the summer of 1789, the population suffered from famine. Necker intervened personally and successfully at the Amsterdam bank Hope & Co. to supply the 'King of France' with grain. He used the 2.4 million livres in the royal treasury as a collateral.
The one non-noble minister
By the time of his second term in office, Necker desired a more limited monarchy and favored increased power for the Estates General. According to Peter Kropotkin
Pyotr Alexeyevich Kropotkin (9 December 1842 – 8 February 1921) was a Russian anarchist and geographer known as a proponent of anarchist communism.
Born into an aristocratic land-owning family, Kropotkin attended the Page Corps and later s ...
, Necker "helped to shake down the system which was already tottering to its fall, but he was powerless to prevent the fall from becoming a revolution: probably he did not even perceive that it was impending."
Necker succeeded in doubling the representation of the Third Estate to satisfy the nation's people. The Third Estate had as many deputies as the other two orders together. His address at the Estates-General on 5 May 1789 about the fundamental problems as financial health, constitutional monarchy, and institutional and political reforms lasted three hours. Necker suffered from a cold and, after fifteen minutes, he asked the secretary of the Agricultural Society to read the remainder. He invited the representatives to leave aside their factional interests and take into consideration the general, long-term interests of the nation. Personal rivalries and radical claims had to give way to a pragmatic spirit of moderation and conciliation. He concluded: According to Simon Schama
Sir Simon Michael Schama ( ; born 13 February 1945) is an English historian and television presenter. He specialises in art history, Dutch history, Jewish history, and French history. He is a professor of history and art history at Columbia Uni ...
, he "appeared to consider the Estates-General to be a facility designed to help the administration rather than to reform government". Two weeks later, Necker seems to have sought to persuade the king to adopt a constitution similar to that of Great Britain and advised him in the strongest possible terms to make the necessary concessions before it was too late. According to François Mignet, "he hoped to reduce the number of orders, and bring about the adoption of the English form of government, by uniting the clergy and nobility in one chamber, and the third estate in another."[History of the French Revolution from 1789 to 1814 by M. Mignet](_blank)
/ref> Necker warned the king that unless the privileged orders yielded, the States-General would collapse, taxes would not be paid, and the government would be bankrupt.
On 17 June 1789, the first act of the new National Assembly
In politics, a national assembly is either a unicameral legislature, the lower house of a bicameral legislature, or both houses of a bicameral legislature together. In the English language it generally means "an assembly composed of the repr ...
declared all existing taxes illegal. Necker had legitimate reasons to be concerned about the implications of this unprecedented decision. On 23 June, the king proposed to the royal council the dissolution of the Assembly. On 11 July, the king advised Necker to leave the country immediately. According to Jean Luzac, Necker and his wife went for a walk in a park. They then got into their carriage to drive to their estate in Saint-Ouen at seven in the evening.[Gazette de Leyde – Livraison n° 58 du 21 juillet 1789] When the news became known the next day, it enraged Camille Desmoulins
Lucie-Simplice-Camille-Benoît Desmoulins (; 2 March 17605 April 1794) was a French journalist, politician and a prominent figure of the French Revolution. He is best known for playing an instrumental role in the events that led to the Stormin ...
. Wax heads of Necker and the Duc d'Orléans were taken through the streets to the Tuileries. The Royal Guard allegedly chose to open fire rather than salute the likenesses. The threat of a counter-revolution caused citizens to take up arms and storm the Bastille on 14 July. The king and the Assembly recalled the immensely popular Necker to a third ministry in a letter dated 16 July. Necker replied from Basle on the 23rd. He wrote to his brother that he was going back to the abyss. His successor, the 74-year-old Joseph Foullon de Doué, was hanged from a lamppost on the 22nd. His entry into Versailles on the 29th was a festival day.[Gazette de Leyde – Livraison n° 63 du 7 août 1789] Necker demanded a pardon for Baron de Besenval, who was imprisoned after given command of the troops concentrated in and around Paris early July.
On 4 August 1789, the day when feudalism was abolished by the National Assembly, Necker is quoted as saying, "The collectors of the taille are at their last shift."
Assignats
Necker proved to be powerless as tax revenue dropped quickly. Credit was wrecked, according to Talleyrand; for Mirabeau "the deficit was the treasure of the nation" as it had made many changes possible. By September, the treasury was empty. According to Marat, the whole famine was the work of one man, accusing Necker of buying up all the corn on every side, in order that Paris had none. Talleyrand proposed that "national goods" be given back to the nation. In November 1789, ecclesiastical possessions were confiscated by the state. Necker proposed to borrow from the Caisse d'Escompte, but his intention to change the private bank into a national bank similar to the Bank of England failed. A general bankruptcy seemed certain. Mirabeau proposed to Lafayette to overthrow Necker. On 21 December 1789, a first decree was voted through, ordering the issue (in April 1790) of 400 million '' assignats'', certificates of indebtedness of 1,000 livres each, with an interest rate of 5%, secured and repayable based on the auctioning of the "Biens nationaux
The were Real property, properties confiscated during the French Revolution from the Catholic Church in France, Catholic Church, the list of French monarchs, monarchy, French emigration (1789–1815), émigrés, and suspected counter-revolutiona ...
".[The French Revolution, the Assignats, and the Counterfeiters](_blank)
/ref> Once the assignats were paid, they had to be destroyed or burnt.
In January 1790, Necker obtained an order of arrest against Jean-Paul Marat
Jean-Paul Marat (, , ; born Jean-Paul Mara; 24 May 1743 – 13 July 1793) was a French political theorist, physician, and scientist. A journalist and politician during the French Revolution, he was a vigorous defender of the ''sans-culottes ...
, for having "had openly espoused the cause of the people, the poorest classes," according to Peter Kropotkin. Marat was forced to flee to London. On 10 March 1790, on the proposition of Pétion, the administration of the church property was transferred to the municipalities. At the same time, Étienne Clavière lobbied for large issues of assignats representing national wealth and operating as legal tender. For daily, life smaller denominations were needed and extended to the whole of France. On 17 April 1790, the new notes of 200 and 300 livres were declared legal tender
Legal tender is a form of money that Standard of deferred payment, courts of law are required to recognize as satisfactory payment in court for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything ...
but their interest was reduced to 3%. The assignats would compensate for the scarcity of coin and would revive industry and trade.
In May 1790, the feudal and ecclesiastical properties were sold against assignats. Constitutional monarchists such as Maury, Cazalès, Bergasse and d'Eprémesnil opposed it. The deputies in the Convention prepared a surety
In finance, a surety , surety bond, or guaranty involves a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults. Usually, a surety bond or surety is a promise by a person or company (a ''sure ...
for future issues of paper money (on 19 June and 29 July). Half of the taxes over the preceding year were still not received. People who earned more than 400 livres were invited to go to their municipality and fulfill their duty. As it was not the final cure, Necker asked his friends, the Geneva "banquiers", to pay the arrears the Assembly turned it down. The political scene came to be dominated by "clamorous spectators, passionate judges, and ungovernable agitators". Necker was continuously attacked by Jean-Paul Marat
Jean-Paul Marat (, , ; born Jean-Paul Mara; 24 May 1743 – 13 July 1793) was a French political theorist, physician, and scientist. A journalist and politician during the French Revolution, he was a vigorous defender of the ''sans-culottes ...
in his pamphlets and by Jacques-René Hébert in his newspaper. Count Mirabeau, who played a decisive role in the Assembly, accused him of complete financial dictatorship. For Mirabeau, to express doubts in the assignats was to express doubts in the revolution.
At the end of August, the government was again in distress; four months after the first issue the money was spent. Montesquiou-Fézensac, the teacher of Mirabeau, presented a report in the Assembly. Assignats should be used not only for payment of church property.
Montesquiou had massively exaggerated the amount of the redeemable debt, probably to convince the Assembly. On 27 August 1790, the Assembly decided another issue of 1.9 billion assignats which would become legal tender
Legal tender is a form of money that Standard of deferred payment, courts of law are required to recognize as satisfactory payment in court for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything ...
before the end of the year. Necker endeavored to dissuade the Assembly from the proposed issue; suggesting that other means could be found for accomplishing the result, and he predicted terrible evils. Necker was not backed by Comte de Mirabeau, his strongest opponent who called for "national money" and won that day. A few crowds were sent to shout and threaten him. When all resources were exhausted, the Assembly created paper money, according to Necker. He handed in his resignation on 3 September. The massive and dangerous issue of 1.9 billion he succeeded to get down to 800 million, but the attacks influenced his resignation.[Histoire de la révolution française: depuis l'Assemblée des notables ... by Jacques Necker, p. 35](_blank)
/ref> Necker did not step down on the decision to make the assignat legal tender. Instead,the choice to issue the paper money along with political opposition proved to be his main motivators.
The Assembly decreed that it would itself direct the public Treasury. Necker foretold that the paper money, with which the dividends were about to be paid, would soon be of no value. Du Pont de Nemours feared the emission of assignats would double the price of bread. Since no one had truly the right to make assignats, everyone would soon begin to do so. Montesquiou-Fézensac, charged with the issue of assignats, feared stockjobbing and greed. A declaration (14 Oct) suspending all interest payments turned the assignats into fiat money
Fiat money is a type of government-issued currency that is not backed by a precious metal, such as gold or silver, nor by any other tangible asset or commodity. Fiat currency is typically designated by the issuing government to be legal tende ...
.
Necker's efforts to keep the financial situation afloat were ineffective. His popularity vanished and he resigned with a damaged reputation. Necker left leaving two million livres in the public treasury; he took 1/5 of the amount with him.[Histoire de la révolution française: depuis l'Assemblée des notables ... by Jacques Necker, p. 31](_blank)
/ref>
Retirement
Necker, suspected of reactionary tendencies, traveled east to Arcis-sur-Aube and Vesoul
Vesoul ( ) is a Communes of France, commune in the predominantly rural Haute-Saône department, of which it is the Prefectures in France, prefecture, or capital, in the Regions of France, region of Bourgogne-Franche-Comté located in eastern Franc ...
, where he was arrested, but on 11 September he was allowed to leave the country.[Historical Review of the Administration of Mr. Necker by Jacques Necker, p. 373](_blank)
/ref> At Coppet Castle, he occupied himself with political economy
Political or comparative economy is a branch of political science and economics studying economic systems (e.g. Marketplace, markets and national economies) and their governance by political systems (e.g. law, institutions, and government). Wi ...
, and law. At the end of 1792, he published a brochure on the trial against Louis XVI. The Neckers were far from welcome in Geneva. Many of the French émigrés considered them Jacobins
The Society of the Friends of the Constitution (), renamed the Society of the Jacobins, Friends of Freedom and Equality () after 1792 and commonly known as the Jacobin Club () or simply the Jacobins (; ), was the most influential List of polit ...
, and many of the Swiss Jacobins thought them conservative.
Initially living in Rolle
Rolle () is a Municipalities of Switzerland, municipality in the Cantons of Switzerland, Canton of Vaud in Switzerland. It was the seat of the district of Rolle (district), Rolle until 2006, when it became part of the district of Nyon District, N ...
, the Neckers moved to an apartment in Beaulieu Castle following the installation of a revolutionary government in Geneva. After being put on the list of Émigrés, Necker was not paid any interest on the money he had left in the treasury. His house in Rue de la Chaussée-d'Antin, his estate in Saint-Ouen sûr Seine, and the two million livres were confiscated by the French government. Mme Necker, who had always seen herself as ill, sank into mental illness. Since the birth of Germaine, she was correcting the most morbid clauses of her will and insisted to be embalmed by Samuel-Auguste Tissot, preserved and exhibited in a bedroom for four months. He continued to live under the care of his daughter. By 1794, France would be flooded by false assignats. But his time was past, and his books had except abroad no political influence. In 1795 Germaine moved to Paris with Benjamin Constant
Henri-Benjamin Constant de Rebecque (25 October 1767 – 8 December 1830), or simply Benjamin Constant, was a Swiss and French political thinker, activist and writer on political theory and religion.
A committed republican from 1795, Constant ...
, but she came back, sometimes involuntary, and founded the Cercle de Coppet.
In March 1798, Bern
Bern (), or Berne (), ; ; ; . is the ''de facto'' Capital city, capital of Switzerland, referred to as the "federal city".; ; ; . According to the Swiss constitution, the Swiss Confederation intentionally has no "capital", but Bern has gov ...
was attacked during the French invasion of Switzerland. Necker was treated with respect when the army passed his mansion. In July 1798, he was removed from the list of Émigrés. His house in the 9th arrondissement of Paris
The 9th arrondissement of Paris (''IXe arrondissement'') is one of the 20 arrondissements of the capital city of France. In spoken French, it is referred to as (; "ninth").
The arrondissement, called Opéra, is located on the right bank of th ...
was sold to (or occupied by?) the husband of Juliette Récamier. In early June 1800, Necker met with Napoleon on his way to Marengo. In confidence, Napoleon told him about his plans to reestablish a monarchy in France. The publication of Necker's "Last Views on Politics and Finance" in 1802 upset the first consul
The Consulate () was the top-level government of the First French Republic from the fall of the Directory in the coup of 18 Brumaire on 9 November 1799 until the start of the French Empire on 18 May 1804.
During this period, Napoleon Bonap ...
. He threatened to exile Madame de Staël from Paris because of this book. Although Necker had never been a republican before, toward the end of his life, he engaged seriously with the project of creating and consolidating a republic "one and indivisible" in France. Necker then foretold the suppression of the Tribunat
The was one of the four assemblies set up in France by the Constitution of Year VIII (the other three were the Council of State (France), Council of State, the and the ). It was set up officially on 1 January 1800 at the same time as the . Its ...
as it took place under the French Consulate
The Consulate () was the top-level government of the First French Republic from the fall of the French Directory, Directory in the coup of 18 Brumaire on 9 November 1799 until the start of the First French Empire, French Empire on 18 May 1804.
...
. His claim of two million on the state treasury was not recognized by the Sénat conservateur
The (, "Conservative Senate") was an advisory body established in France during the French Consulate, Consulate following the French Revolution. It was established in 1799 under the Constitution of the Year VIII following the Napoleon Bonapa ...
.
Necker died in 1804. He was buried next to his wife in the garden of Coppet Castle. The mausoleum was sealed in 1817 following Germaine's death. The Charter of 1814 signed by Louis XVIII
Louis XVIII (Louis Stanislas Xavier; 17 November 1755 – 16 September 1824), known as the Desired (), was King of France from 1814 to 1824, except for a brief interruption during the Hundred Days in 1815. Before his reign, he spent 23 y ...
at Saint-Ouen sûr Seine contained almost all the articles in support of liberty proposed by Necker before the Revolution of 14 July 1789. Therefore, George Armstrong Kelly called him the "grandfather of Restoration Liberalism."
"Posterity has not been fair to Necker," according to Aurelian Craiutu. On 11 August 1792, the day after the Storming of the Tuileries, all the busts were removed from the town hall, including the one of Necker by Jean-Antoine Houdon and smashed. Like Mirabeau, the Marquis De Lafayette
Marie-Joseph Paul Yves Roch Gilbert du Motier de La Fayette, Marquis de La Fayette (; 6 September 1757 – 20 May 1834), known in the United States as Lafayette (), was a French military officer and politician who volunteered to join the Conti ...
, Barnave and Pétion, Necker was only temporarily supported by the people.
Personal life
In 1786 Necker's daughter Germaine married Erik Magnus Staël von Holstein; she was to become a prominent figure in her own right and a leading opponent of Napoleon Bonaparte
Napoleon Bonaparte (born Napoleone di Buonaparte; 15 August 1769 – 5 May 1821), later known by his regnal name Napoleon I, was a French general and statesman who rose to prominence during the French Revolution and led Military career ...
. On 22 March 1814, she was promised 21 years of interest on her father's investment in the public treasury. After his death his daughter published "Vie privée de Mr. Necker". His grandson Auguste de Staël (1790–1827) edited the Complete Oeuvres by Jacques Necker.
His nephew Jacques Necker (1757–1825), a botanist, married Albertine Necker de Saussure. They took care of their uncle after his wife had died in 1794. Their son was the geologist and crystallographer Louis Albert Necker de Saussure.
Places named after Jacques Necker
* Necker Hospital for Children (Paris, France)
* Necker Island (Northwestern Hawaiian Islands)
* Necker middle school (Coppet, Switzerland)
Works
''Réponse au mémoire de M. l'abbé Morellet sur la Compagnie des Indes''
1769
''Éloge de Jean-Baptiste Colbert''
1773
''Sur la Législation et le commerce des grains''
1775
''Mémoire au roi sur l'établissement des administrations provinciales''
1776
''Lettre au roi''
1777
* '' Compte rendu au roi'', 1781
''De l'administration des finances de la France''. Tome I
Tome II
Tome III
1784, 3 vol. in-8°
''Correspondance de M. Necker avec M. de Calonne. (29 janvier-28 février 1787)''
1787
''Sur le compte rendu au Roi en 1781. Nouveaux éclaircissements''
A Paris, Hotel de Thou, 1788
''De la Morale naturelle, suivie du Bonheur des sots''
1788
''De l'importance des opinions religieuses''
1788
''Supplément nécessaire à l'importance des opinions religieuses''
1788
*
''Sur le compte rendu au roi en 1781 : nouveaux éclaircissements'', 1788
* ''Rapport fait au roi dans son conseil par le ministre des finances'', 1789
''Derniers conseils au roi''
1789
* ''Hommage de M. Necker à la nation française'', 1789
''Observations sur l'avant-propos du « Livre rouge »''
v. 1790
* ''Opinion relativement au décret de l'Assemblée nationale, concernant les titres, les noms et les armoiries'', v. 1790
*
''Sur l'administration de M. Necker'', 1791
* ''Réflexions présentées à la nation française sur le procès intenté à Louis XVI'', 1792
''Du pouvoir exécutif dans les grands états''. Tome premier
Tome second
1792.
''De la Révolution Françoise''. Tome premier
Tome second
Tome troisieme
Tome quatrieme
1796
''Cours de morale religieuse''. Tome premier
Tome deuxième
Tome troisième
1800
* ''Dernières vues de politique et de finance, offertes à la Nation française'', 1802
''Manuscrits de M. Necker, publiés par sa fille'' (1804)
''Œuvres complètes de M. Necker''. Tome premier
Tome second
Tome troisième
Tome quatrième
Tome cinquième
Tome sixième
Tome septième
Tome huitième
Tome neuvième
Tome dixième
Tome onzième
Tome douzième
Tome treizième
Tome quizième
Publiées par m. le Baron de Staël. 1820–1821
* ''Histoire de la Révolution française, depuis l'Assemblée des notables jusques et y compris la journée du 13 vendémiaire an IV (18 octobre 1795)'', 1821
Source:
Notes
Further reading
Primary sources
*
Secondary sources
*
*
*
*
*
*
*
*
*
*
;In French
* Bredin, Jean-Denis. ''Une singulière famille: Jacques Necker, Suzanne Necker et Germaine de Staël.'' Paris: Fayard, 1999 ().
*
*
External links
*
Bibliography of Necker's publications.
Full text of ''Principes positifs de M. Neker'' ... ''Positive principles of Mr. Neker, extracted from all his works''
{{DEFAULTSORT:Necker, Jacques
1732 births
1804 deaths
University of Geneva alumni
18th-century businesspeople from the Republic of Geneva
18th-century politicians from the Republic of Geneva
Bankers from the Republic of Geneva
Finance ministers of France
Secretaries of State of Ancien Régime France
People of the French Revolution
Coppet group
Victims of lettre de cachet
French Protestants