Jean-Baptiste Colbert - Economic Reform

Economic Reform

With the abolition of the office of superintendent and of many other offices dependent upon it, the supreme control of the finances became vested in a royal council. The sovereign functioned as its president; but Colbert, though for four years he possessed the title only of intendant, operated as its ruling spirit, having had great personal authority conferred upon him by the king. One must not judge the career on which Colbert now entered without remembering the corruption of the previous financial administration.

His ruthlessness in this case, dangerous precedent though it gave, seemed perhaps necessary; the council could not respect individual interests. When he had severely punished guilty officials, he turned his attention to the fraudulent creditors of the government. Colbert had a simple method of operation. He repudiated some of the public loans and cut off from others a percentage, which varied, at first according to his own decision, and afterwards according to that of the council that he established to examine all claims against the state.

Much more serious difficulties met his attempts to introduce equality in the pressure of the taxes on the various classes. To diminish the number of the privileged proved impossible, but Colbert firmly resisted false claims for exemption, and lightened the unjust direct taxation by increasing the indirect taxes, from which the privileged could not escape. At the same time he immensely improved the mode of collection on his own.