Jacques Necker
Encyclopedia
Jacques Necker was a French
statesman of Swiss
birth and finance minister of Louis XVI
, a post he held in the lead-up to the French Revolution
in 1789.
, then an independent republic
. His father was a native of Küstrin
in Neumark
(Prussia
, now Kostrzyn nad Odrą
, Poland
), and had, after the publication of some works on international law
, been elected as professor of public law at Geneva, of which he became a citizen. Jacques Necker was sent to Paris
in 1747 to become a clerk in the bank of Isaac Vernet, a friend of his father. By 1762 he was a partner and by 1765, through successful speculations, had become very wealthy. Soon, he co-founded, with another Genevese, the famous bank of Thellusson, Necker et Cie. Peter Thellusson
(also known as Pierre Thellusson) superintended the bank in London
(his son was made a peer as Baron Rendlesham
), while Necker was managing partner in Paris. Both partners became very rich by loans to the treasury and speculations in grain
.
In 1763, Necker fell in love with Madame de Verménou, the widow of a French officer. But while on a visit to Geneva, Madame de Verménou met Suzanne Curchod
, who was the daughter of a pastor near Lausanne
and who had been engaged to Edward Gibbon
. In 1764, Madame de Verménou brought Suzanne to Paris as her companion. There Necker, transferring his love from the widow to the poor Swiss girl, married Suzanne before the end of the year. On 22 April 1766, they had a daughter, Anne Louise Germaine Necker
, who became a renowned author under the name of Madame de Staël.
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 the administration and the company's autonomy. "The ministry, concerned with the financial stability of the company, employed the abbé Morellet
to shift the debate from the rights of the shareholders to the advantages of commercial liberty over the company’s privileged trading monopoly." After showing his financial ability in its management, Necker defended the Company's autonomy in an able memoir against the attacks of André Morellet
in 1769.
Meanwhile, he had made loans to the French government, and was appointed resident at Paris by the republic of Geneva. Madame Necker entertained the leaders of the political, financial and literary worlds of Paris, and her Friday salon
became as greatly frequented as the Mondays of Mme Geoffrin
, or the Tuesdays of Mme Helvétius
. In 1773, Necker won the prize of the Académie Française
for a defense of state corporatism framed as a eulogy
of Louis XIV's minister, Colbert
; in 1775, he published his Essai sur la législation et le commerce des grains, in which he attacked the free-trade policy of Turgot
. His wife now believed he could get into office as a great financier, and made him give up his share in the bank, which he transferred to his brother Louis.
faith. He gained popularity in regulating the finances by attempting to divide the taille
capitation tax more equally, by abolishing the vingtième d'industrie, and establishing monts de piété (establishments for loaning money on security). His greatest financial measures were his usage of loans to help fund the French debt and his usage of high interest rate
s rather than raising taxes. He also advocated loans to finance French involvement in the American Revolution
.
In 1781, France was suffering financially, and because Necker was Director-General, he was blamed for the rather high debt accrued from the American Revolution. While at court, Necker had made many enemies because of his reforming policies. Marie-Antoinette was his most formidable enemy, so Louis – listening to Antoinette- would become a factor in Necker's resignation: Louis would not reform taxation to bring in more money to cover debts, nor would he listen to Necker and allow him to be a special adviser because this was strongly opposed by the ministers.
Also in 1781, Necker published his most influential work: the Compte rendu au roi
. In it, Necker summarizes governmental income and expenditures, giving the first-ever public record of royal finances. It 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. This birth of public opinion and interest plays an important role in the French Revolution
. The statistics given in the Compte rendu were completely false and misleading. Necker wanted to show France in a strong financial position when the reality was much worse. He "cooked the books", hiding the crippling interest payments that France had to make on its massive £520 million in loans (largely used to finance the war in America) as normal expenditure. When he was criticized by his enemies for the Compte rendu, he made public his 'Financial Summary for the King', which appeared to show that France had fought the war in America, paid no new taxes and still had a massive credit of £10 million of revenue.
In retirement he occupied himself with literature, producing his famous Traité de l'administration des finances de la France (1784). He also spent time with his only child, his beloved daughter, who in 1786 married the ambassador of Sweden
and became Madame de Staël. In 1787 Necker was banished by the lettre de cachet
40 leagues from Paris for his very public exchange of pamphlets and memoirs attacking his successor as minister of finance, Calonne
. Yet in 1788 the country had been struck by both economic and financial crises, and Necker was called back to the office of Director-General of Finance to stop the deficit and to save France from financial ruin.
Necker was seen as the savior of France while the country stood on the brink of ruin, but his actions could not stop the French Revolution
. Necker put a stop to the rebellion
in the Dauphiné
by legalizing its assembly
, and then set to work to arrange for the summons of the Estates-General of 1789
. He advocated doubling the representation of the Third Estate to satisfy the people. But he failed to address the matter of voting — rather than voting by head count, which is what the people wanted, voting remained as one vote for each estate. Also, his address at the Estates-General was terribly miscalculated: it lasted for hours, and while those present expected a reforming policy to save the nation, he gave them financial data. This approach had serious repercussions on Necker's reputation; he appeared to consider the Estates-General to be a facility designed to help the administration rather than to reform government.
Necker's dismissal on 11 July 1789 made the people of France incredibly angry and provoked the storming of the Bastille
on July 14. The king recalled him on 19 July. He was received with joy in every city he traversed, but in Paris he again proved to be no statesman. Believing that he could save France alone, he refused to act with the Comte de Mirabeau
or Marquis de Lafayette. He caused the king's acceptance of the suspensive veto, by which he sacrificed his chief prerogative in September, and destroyed all chance of a strong executive by contriving the decree of 7 November by which the ministry might not be chosen from the assembly. Financially he proved equally incapable for a time of crisis, and could not understand the need of such extreme measures as the establishment of assignat
s in order to keep the country quiet. Necker stayed in office until 1790, but his efforts to keep the financial situation afloat were ineffective. His popularity had vanished, and he resigned with a broken reputation.
Commugny
, near Geneva, an estate he had bought in 1784. Here he occupied himself with literature, but Madame Necker pined for her Paris salon
and died soon after. He continued to live on at Coppet, under the care of his daughter, Madame de Staël, and his niece, Madame Necker de Saussure. But his time was past and his books had no political influence. A momentary excitement was caused by the advance of the French armies in 1798, when he burnt most of his political papers. He died at Coppet on 9 April 1804.
His daughter Madame de Staël was to become a prominent figure in her own right and a leading opponent of Napoleon Bonaparte.
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
statesman of Swiss
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
birth and finance minister of Louis XVI
Louis XVI of France
Louis XVI was a Bourbon monarch who ruled as King of France and Navarre until 1791, and then as King of the French from 1791 to 1792, before being executed in 1793....
, a post he held in the lead-up to the French Revolution
French Revolution
The French Revolution , sometimes distinguished as the 'Great French Revolution' , was a period of radical social and political upheaval in France and Europe. The absolute monarchy that had ruled France for centuries collapsed in three years...
in 1789.
Early life
Necker was born on September 30, 1732 in GenevaGeneva
Geneva In the national languages of Switzerland the city is known as Genf , Ginevra and Genevra is the second-most-populous city in Switzerland and is the most populous city of Romandie, the French-speaking part of Switzerland...
, then an independent republic
Republic
A republic is a form of government in which the people, or some significant portion of them, have supreme control over the government and where offices of state are elected or chosen by elected people. In modern times, a common simplified definition of a republic is a government where the head of...
. His father was a native of Küstrin
Küstrin
Before 1945 Küstrin was a town in the former Prussian province of Brandenburg in Germany, situated on both sides of the Oder river...
in Neumark
Neumark
Neumark comprised a region of the Prussian province of Brandenburg, Germany.Neumark may also refer to:* Neumark, Thuringia* Neumark, Saxony* Neumark * Nowe Miasto Lubawskie or Neumark, a town in Poland, situated at river Drwęca...
(Prussia
Prussia
Prussia was a German kingdom and historic state originating out of the Duchy of Prussia and the Margraviate of Brandenburg. For centuries, the House of Hohenzollern ruled Prussia, successfully expanding its size by way of an unusually well-organized and effective army. Prussia shaped the history...
, now Kostrzyn nad Odrą
Kostrzyn nad Odra
Kostrzyn nad Odrą is a town in western Poland, at the confluence of the Oder and Warta rivers, on the border with Germany. Located in the Lubusz Voivodeship, in Gorzów County, it had 19,952 inhabitants as of 2007.- History :...
, Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
), and had, after the publication of some works on international law
International law
Public international law concerns the structure and conduct of sovereign states; analogous entities, such as the Holy See; and intergovernmental organizations. To a lesser degree, international law also may affect multinational corporations and individuals, an impact increasingly evolving beyond...
, been elected as professor of public law at Geneva, of which he became a citizen. Jacques Necker was sent to Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
in 1747 to become a clerk in the bank of Isaac Vernet, a friend of his father. By 1762 he was a partner and by 1765, through successful speculations, had become very wealthy. Soon, he co-founded, with another Genevese, the famous bank of Thellusson, Necker et Cie. Peter Thellusson
Peter Thellusson
Peter [de] Thellusson was a French-Swiss businessman and banker who settled in London.Thellusson was a member of a Huguenot family which had fled France for Geneva in the 16th century. His father Isaac had started a Swiss bank and became the Genevan ambassador to Paris...
(also known as Pierre Thellusson) superintended the bank in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
(his son was made a peer as Baron Rendlesham
Baron Rendlesham
Baron Rendlesham, of Rendlesham, is a title in the Peerage of Ireland. It was created in 1806 for the businessman Peter Thellusson, who also represented Midhurst, Malmesbury and Bossiney in Parliament. The Thellusson family were of French Protestant origin, but settled in Geneva, Switzerland, after...
), while Necker was managing partner in Paris. Both partners became very rich by loans to the treasury and speculations in grain
Cereal
Cereals are grasses cultivated for the edible components of their grain , composed of the endosperm, germ, and bran...
.
In 1763, Necker fell in love with Madame de Verménou, the widow of a French officer. But while on a visit to Geneva, Madame de Verménou met Suzanne Curchod
Suzanne Curchod
Suzanne Curchod was a French-Swiss salonist and writer. She hosted one of the most celebrated salons of the Ancien Régime. She was the wife of Jacques Necker, and is often referenced in historical documents as Madame Necker....
, who was the daughter of a pastor near Lausanne
Lausanne
Lausanne is a city in Romandy, the French-speaking part of Switzerland, and is the capital of the canton of Vaud. The seat of the district of Lausanne, the city is situated on the shores of Lake Geneva . It faces the French town of Évian-les-Bains, with the Jura mountains to its north-west...
and who had been engaged to Edward Gibbon
Edward Gibbon
Edward Gibbon was an English historian and Member of Parliament...
. In 1764, Madame de Verménou brought Suzanne to Paris as her companion. There Necker, transferring his love from the widow to the poor Swiss girl, married Suzanne before the end of the year. On 22 April 1766, they had a daughter, Anne Louise Germaine Necker
Anne Louise Germaine de Staël
Anne Louise Germaine de Staël-Holstein , commonly known as Madame de Staël, was a French-speaking Swiss author living in Paris and abroad. She influenced literary tastes in Europe at the turn of the 19th century.- Childhood :...
, who became a renowned author under the name of Madame de Staël.
Suzanne Curchod
Suzanne Curchod was a French-Swiss salonist and writer. She hosted one of the most celebrated salons of the Ancien Régime. She was the wife of Jacques Necker, and is often referenced in historical documents as 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
French East India Company
The French East India Company was a commercial enterprise, founded in 1664 to compete with the British and Dutch East India companies in colonial India....
, around which a fierce political debate revolved in the 1760s, between the company's directors and shareholders and the royal ministry over the administration and the company's autonomy. "The ministry, concerned with the financial stability of the company, employed the abbé Morellet
André Morellet
André Morellet was a French economist and writer. He was one of the last of the philosophes, and in this character he figures in many memoirs, such as those of Madame de Rémusat....
to shift the debate from the rights of the shareholders to the advantages of commercial liberty over the company’s privileged trading monopoly." After showing his financial ability in its management, Necker defended the Company's autonomy in an able memoir against the attacks of André Morellet
André Morellet
André Morellet was a French economist and writer. He was one of the last of the philosophes, and in this character he figures in many memoirs, such as those of Madame de Rémusat....
in 1769.
Meanwhile, he had made loans to the French government, and was appointed resident at Paris by the republic of Geneva. Madame Necker entertained the leaders of the political, financial and literary worlds of Paris, and her Friday salon
Salon (gathering)
A salon is a gathering of people under the roof of an inspiring host, held partly to amuse one another and partly to refine taste and increase their knowledge of the participants through conversation. These gatherings often consciously followed Horace's definition of the aims of poetry, "either to...
became as greatly frequented as the Mondays of Mme Geoffrin
Marie Thérèse Rodet Geoffrin
Marie Thérèse Rodet Geoffrin has been referred to as one of the leading female figures in the French Enlightenment. From 1750-1777, Madame Geoffrin played host to many of the most influential Philosophes and Encyclopédistes of her time...
, or the Tuesdays of Mme Helvétius
Claude Adrien Helvétius
Claude Adrien Helvétius was a French philosopher and littérateur.-Life:...
. In 1773, Necker won the prize of the Académie Française
Académie française
L'Académie française , also called the French Academy, is the pre-eminent French learned body on matters pertaining to the French language. The Académie was officially established in 1635 by Cardinal Richelieu, the chief minister to King Louis XIII. Suppressed in 1793 during the French Revolution,...
for a defense of state corporatism framed as a eulogy
Eulogy
A eulogy is a speech or writing in praise of a person or thing, especially one recently deceased or retired. Eulogies may be given as part of funeral services. However, some denominations either discourage or do not permit eulogies at services to maintain respect for traditions...
of Louis XIV's minister, Colbert
Jean-Baptiste Colbert
Jean-Baptiste Colbert was a French politician who served as the Minister of Finances of France from 1665 to 1683 under the rule of King Louis XIV. His relentless hard work and thrift made him an esteemed minister. He achieved a reputation for his work of improving the state of French manufacturing...
; in 1775, he published his Essai sur la législation et le commerce des grains, in which he attacked the free-trade policy of Turgot
Anne Robert Jacques Turgot, Baron de Laune
Anne-Robert-Jacques Turgot, Baron de Laune , often referred to as Turgot, was a French economist and statesman. Turgot was a student of Francois Quesnay and as such belonged to the Physiocratic school of economic thought...
. His wife now believed he could get into office as a great financier, and made him give up his share in the bank, which he transferred to his brother Louis.
Finance Minister of France
In October 1776 Necker was made director-general of the finances – he could not be controller because of his ProtestantProtestantism
Protestantism is one of the three major groupings within Christianity. It is a movement that began in Germany in the early 16th century as a reaction against medieval Roman Catholic doctrines and practices, especially in regards to salvation, justification, and ecclesiology.The doctrines of the...
faith. He gained popularity in regulating the finances by attempting to divide the taille
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 based on how much land it held.-History:Originally only an "exceptional" tax The taille was a direct land tax on the French peasantry and non-nobles in Ancien...
capitation tax more equally, by abolishing the vingtième d'industrie, and establishing monts de piété (establishments for loaning money on security). His greatest financial measures were his usage of loans to help fund the French debt and his usage of high interest rate
Interest rate
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for...
s rather than raising taxes. He also advocated loans to finance French involvement in the American Revolution
American Revolution
The American Revolution was the political upheaval during the last half of the 18th century in which thirteen colonies in North America joined together to break free from the British Empire, combining to become the United States of America...
.
In 1781, France was suffering financially, and because Necker was Director-General, he was blamed for the rather high debt accrued from the American Revolution. While at court, Necker had made many enemies because of his reforming policies. Marie-Antoinette was his most formidable enemy, so Louis – listening to Antoinette- would become a factor in Necker's resignation: Louis would not reform taxation to bring in more money to cover debts, nor would he listen to Necker and allow him to be a special adviser because this was strongly opposed by the ministers.
Compte rendu
The Compte rendu was a document published in February 1781 by Jacques Necker, finance minister to the King, in which he presented the state of France's finances....
. In it, Necker summarizes governmental income and expenditures, giving the first-ever public record of royal finances. It 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. This birth of public opinion and interest plays an important role in the French Revolution
French Revolution
The French Revolution , sometimes distinguished as the 'Great French Revolution' , was a period of radical social and political upheaval in France and Europe. The absolute monarchy that had ruled France for centuries collapsed in three years...
. The statistics given in the Compte rendu were completely false and misleading. Necker wanted to show France in a strong financial position when the reality was much worse. He "cooked the books", hiding the crippling interest payments that France had to make on its massive £520 million in loans (largely used to finance the war in America) as normal expenditure. When he was criticized by his enemies for the Compte rendu, he made public his 'Financial Summary for the King', which appeared to show that France had fought the war in America, paid no new taxes and still had a massive credit of £10 million of revenue.
In retirement he occupied himself with literature, producing his famous Traité de l'administration des finances de la France (1784). He also spent time with his only child, his beloved daughter, who in 1786 married the ambassador of Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
and became Madame de Staël. In 1787 Necker was banished by the lettre de cachet
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, or cachet...
40 leagues from Paris for his very public exchange of pamphlets and memoirs attacking his successor as minister of finance, Calonne
Charles Alexandre de Calonne
Charles Alexandre, vicomte de Calonne was a French statesman, best known for his involvement in the French Revolution.-Rise to prominence:...
. Yet in 1788 the country had been struck by both economic and financial crises, and Necker was called back to the office of Director-General of Finance to stop the deficit and to save France from financial ruin.
In the Revolution
French Revolution
The French Revolution , sometimes distinguished as the 'Great French Revolution' , was a period of radical social and political upheaval in France and Europe. The absolute monarchy that had ruled France for centuries collapsed in three years...
. Necker put a stop to the rebellion
Day of the Tiles
The Day of the Tiles is an event that took place in the French town of Grenoble on 7 June 1788. It was among the first of the revolts which preceded the French Revolution, and is credited by some historians as being the start of it.-Background:...
in the Dauphiné
Dauphiné
The Dauphiné or Dauphiné Viennois is a former province in southeastern France, whose area roughly corresponded to that of the present departments of :Isère, :Drôme, and :Hautes-Alpes....
by legalizing its assembly
Assembly of Vizille
The Assembly of Vizille was the result of a meeting of various representatives in Grenoble, which took place on 7 June 1788. Its purpose was to discuss the events of The Day Of The Tiles, one of the first revolts preceding the French Revolution....
, and then set to work to arrange for the summons of the Estates-General of 1789
Estates-General of 1789
The Estates-General of 1789 was the first meeting since 1614 of the French Estates-General, a general assembly representing the French estates of the realm: the nobility, the Church, and the common people...
. He advocated doubling the representation of the Third Estate to satisfy the people. But he failed to address the matter of voting — rather than voting by head count, which is what the people wanted, voting remained as one vote for each estate. Also, his address at the Estates-General was terribly miscalculated: it lasted for hours, and while those present expected a reforming policy to save the nation, he gave them financial data. This approach had serious repercussions on Necker's reputation; he appeared to consider the Estates-General to be a facility designed to help the administration rather than to reform government.
Necker's dismissal on 11 July 1789 made the people of France incredibly angry and provoked the storming of the Bastille
Storming of the Bastille
The storming of the Bastille occurred in Paris on the morning of 14 July 1789. The medieval fortress and prison in Paris known as the Bastille represented royal authority in the centre of Paris. While the prison only contained seven inmates at the time of its storming, its fall was the flashpoint...
on July 14. The king recalled him on 19 July. He was received with joy in every city he traversed, but in Paris he again proved to be no statesman. Believing that he could save France alone, he refused to act with the Comte de Mirabeau
Honoré Gabriel Riqueti, comte de Mirabeau
Honoré Gabriel Riqueti, comte de Mirabeau was a French revolutionary, as well as a writer, diplomat, freemason, journalist and French politician at the same time. He was a popular orator and statesman. During the French Revolution, he was a moderate, favoring a constitutional monarchy built on...
or Marquis de Lafayette. He caused the king's acceptance of the suspensive veto, by which he sacrificed his chief prerogative in September, and destroyed all chance of a strong executive by contriving the decree of 7 November by which the ministry might not be chosen from the assembly. Financially he proved equally incapable for a time of crisis, and could not understand the need of such extreme measures as the establishment of assignat
Assignat
Assignat was the type of a monetary instrument used during the time of the French Revolution, and the French Revolutionary Wars.- France :...
s in order to keep the country quiet. Necker stayed in office until 1790, but his efforts to keep the financial situation afloat were ineffective. His popularity had vanished, and he resigned with a broken reputation.
Retirement
Not without difficulty he reached CoppetCoppet
Coppet is a municipality in the district of Nyon in the canton of Vaud in Switzerland.-History:Coppet is first mentioned in 1294 as Copetum. In 1347 it was mentioned as Copet.-Geography:...
Commugny
Commugny
Commugny is a municipality in the district of Nyon in the canton of Vaud in Switzerland.-Geography:Commugny has an area, , of . Of this area, or 60.4% is used for agricultural purposes, while or 19.8% is forested...
, near Geneva, an estate he had bought in 1784. Here he occupied himself with literature, but Madame Necker pined for her Paris salon
Salon (gathering)
A salon is a gathering of people under the roof of an inspiring host, held partly to amuse one another and partly to refine taste and increase their knowledge of the participants through conversation. These gatherings often consciously followed Horace's definition of the aims of poetry, "either to...
and died soon after. He continued to live on at Coppet, under the care of his daughter, Madame de Staël, and his niece, Madame Necker de Saussure. But his time was past and his books had no political influence. A momentary excitement was caused by the advance of the French armies in 1798, when he burnt most of his political papers. He died at Coppet on 9 April 1804.
His daughter Madame de Staël was to become a prominent figure in her own right and a leading opponent of Napoleon Bonaparte.
Places named after Jacques Necker
- Necker Hospital for Children (Paris, France)Necker-Enfants Malades HospitalThe Hôpital Necker – Enfants Malades is a French teaching hospital, located in Paris, France. It is an hospital of the Assistance publique - Hôpitaux de Paris group, and is affiliated to the University of Paris Descartes...
- Necker Island (Northwestern Hawaiian Islands)