Anne Robert Jacques Turgot

Anne Robert Jacques Turgot, Baron de l'Aulne(/tʊərˈɡoʊ/toor-GOH;French:[tyʁgo];10 May 1727 – 18 March 1781), commonly known asTurgot,was a French economist and statesman. Sometimes considered aphysiocrat,he is today best remembered as an early advocate foreconomic liberalism.He is thought to have been the first political economist to have postulated something like thelaw of diminishing marginal returnsin agriculture.

Anne Robert Jacques Turgot
Portrait byFrançois-Hubert Drouais,c. 1775
First Minister of State
In office 24 August 1774 – 12 May 1776
Monarch	Louis XVI
Preceded by	René Nicolas de Maupeou
Succeeded by	The Count of Maurepas
Controller-General of Finances
In office 24 August 1774 – 12 May 1776
Monarch	Louis XVI
Preceded by	Joseph Marie Terray
Succeeded by	Baron de Nuits
Secretaries of State for the Navy
In office 20 July 1774 – 24 August 1774
Monarch	Louis XVI
Preceded by	Marquis de Boynes
Succeeded by	Antoine de Sartine
Personal details
Born	(1727-05-10)10 May 1727 Paris,France
Died	18 March 1781(1781-03-18)(aged 53) Paris, France
influenced	Condorcet·Maistre·Rothbard·Schumpeter·Smith·Marx·Keynes
Signature
Academic career
Field	Political economics
School or tradition	Physiocrats
Alma mater	Sorbonne
Influences	Montesquieu·Quesnay

Arms of Baron Turgot:Ermine fretty of ten pieces gules, nailed or

Education

Born inParis,Turgot was the youngest son ofMichel-Étienne Turgot,"provostof the merchants "of Paris, and Madeleine Francoise Martineau de Brétignolles, and came from an oldNormanfamily.As one of four children, he had a younger sister and two older brothers, one of whom,Étienne-François Turgot(1721–1789), was a naturalist, and served as administrator ofMaltaand governor ofFrench Guiana.Anne Robert Jacques was educated for the Church, and at theSorbonne,to which he was admitted in 1749 (being then styledabbé de Brucourt). He delivered two remarkableLatindissertations,On the Benefits which the Christian Religion has conferred on Mankind,andOn the Historical Progress of the Human Mind.In 1750 he decided not to take holy orders, giving as his reason that "he could not bear to wear a mask all his life."

The first sign of Turgot's interest in economics is a letter (1749) on paper money, written to his fellow-student the abbé de Cicé, refuting the abbéJean Terrasson's defence ofJohn Law's system. He was fond of verse-making, and tried to introduce into French verse the rules of Latin prosody, his translation of the fourth book of theAeneidinto classicalhexameterverses being greeted byVoltaireas "the onlyprosetranslation in which he had found any enthusiasm. "

Idea of progress

The first complete statement of theIdea of Progressis that of Turgot, in his "A Philosophical Review of the Successive Advances of the Human Mind" (1750). For Turgot progress covers not simply the arts and sciences but, on their base, the whole of culture – manner, mores, institutions, legal codes, economy, and society.

Early appointments

In 1752, he becamesubstitut,and laterconseillerin theparlement of Paris,and in 1753maître des requêtes.In 1754 he was a member of thechambre royalewhich sat during an exile of theparlement.In Paris he frequented thesalons,especially those ofMme de Graffigny– whose niece, Mlle de Ligniville ( "Minette" ), laterMme Helvétius,he is supposed at one time to have wished to marry; they remained lifelong friends –Mme Geoffrin,Mme du Deffand,Mlle de Lespinasseand the Duchesse d'Enville. It was during this period that he met the leaders of the "physiocratic"school,QuesnayandVincent de Gournay,and with them Dupont de Nemours, theabbé Morelletand other economists.

In 1743 and 1756, he accompanied Gournay, theintendantof commerce, during Gournay's tours of inspection in the provinces. (Gournay's bye-word on the government's proper involvement in the economy –"laisser faire, laisser passer"– would pass into the vocabulary of economics.) In 1760, while travelling in the east of France and Switzerland, he visitedVoltaire,who became one of his chief friends and supporters. All this time he was studying various branches of science, and languages both ancient and modern. In 1753 he translated theQuestions sur le commercefrom the English ofJosias Tucker,and in 1754 he wrote hisLettre sur la tolérance civile,and a pamphlet,Le Conciliateur,in support of religious tolerance. Between 1755 and 1756 he composed various articles for theEncyclopédie,and between 1757 and 1760 an article onValeurs des monnaies,probably for theDictionnaire du commerceof the abbé Morellet.In 1759 appeared his workEloge de Gournay.

Intendant of Limoges, 1761–1774

Turgot (by Tardieu)

In August 1761, Turgot was appointedintendant(tax collector) of thegenéralitéofLimoges,which included some of the poorest and most over-taxed parts of France; here he remained for thirteen years. He was already deeply imbued with the theories of Quesnay and Gournay, and set to work to apply them as far as possible in his province. His first plan was to continue the work, already initiated by his predecessor Tourny, of making a fresh survey of the land (cadastre), in order to arrive at a more just assessment of thetaille;he also obtained a large reduction in the contribution of the province. He published hisAvis sur l'assiette et la repartition de la taille(1762–1770), and as president of theSociété d'agriculture de Limogesoffered prizes for essays on the principles of taxation. Quesnay andMirabeauhad advocated aproportional tax(impôt de quotité),but Turgot proposed adistributive tax(impôt de repartition). Another reform was the substitution for thecorvéeof a tax in money levied on the whole province, the construction of roads being handed over to contractors, by which means Turgot was able to leave his province with a good system of highways, while distributing more justly the expense of their construction.

In 1769, he wrote hisMémoire sur les prêts à intérêt,on the occasion of a scandalous financial crisis atAngoulême,the particular interest of which is that in it the question of lending money atinterestwas for the first time treated scientifically, and not merely from the ecclesiastical point of view. Turgot's opinion was that a compromise had to be reached between both methods. Among other works written during Turgot's intendancy were theMémoire sur les mines et carrières,and theMémoire sur la marque des fers,in which he protested against state regulation and interference and advocated free competition. At the same time he did much to encourage agriculture and local industries, among others establishing the manufacture ofporcelain at Limoges.During the famine of 1770–1771 he enforced on landowners "the obligation of relieving the poor" and especially themétayers(sharecroppers) dependent upon them, and organized in every provinceateliersandbureaux de charitéfor providing work for the able-bodied and relief for the infirm, while at the same time he condemned indiscriminatecharity.Turgot always made the curés the agents of his charities and reforms when possible. It was in 1770 that he wrote his famousLettres sur la liberté du commerce des grains,addressed to the controller-general, theabbé Terray.Three of these letters have disappeared, having been sent toLouis XVIby Turgot at a later date and never recovered, but those remaining argue that free trade in grain is in the interest of landowner, farmer and consumer alike, and in forcible terms demand the removal of all restrictions.

Réflexions

Turgot's best known work,Reflections on the Formation and Distribution of Wealth,was written early in the period of his intendancy, ostensibly for the benefit of two young Chinese scholars who had studied in Paris, Louis Ko (Gao Leisi, 1732–1790) and Étienne Yang (Yang Dewang, 1733–98), on the occasion of their return to China.Written in 1766, it appeared in 1769–1770 in Dupont's journal, theEphémérides du citoyen,and was published separately in 1776. Dupont, however, made various alterations in the text, in order to bring it more into accordance with Quesnay's doctrines, which led to a coolness between him and Turgot.

In theRéflexions,after tracing the origin of commerce, Turgot develops Quesnay's theory that land is the only source of wealth, and divides society into three classes, the productive or agricultural, the salaried (theclasse stipendiée) or artisan class, and the land-owning class (classe disponible). He also proposes a notabletheory of the interest rate.After discussing the evolution of the different systems of cultivation, the nature of exchange and barter, money, and the functions ofcapital,he sets forth the theory of theimpôt unique,i.e. that only the net product (produit net) of the land should be taxed. In addition he demanded the complete freedom of commerce and industry.

As minister, 1774–1776

Appointment

Statue of Turgot at theHôtel de Ville, Paris

Turgot was summoned to the ministry of Louis XVI two months after his accession, and was appointed a month later as Controller-General of Finance. The king even defended the middle-class economist against the reaction of the aristocracy.Turgot owed his appointment as minister of the navy in July 1774 toMaurepas,the "Mentor" ofLouis XVI,to whom he was warmly recommended by the abbé Very, a mutual friend. His appointment met with general approval, and was hailed with enthusiasm by thephilosophes.A month later (24 August) he was appointedController-General of Finances.

On government spending

His first act was to submit to the king a statement of his guiding principles: "No bankruptcy, no increase of taxation, no borrowing." Turgot's policy, in face of the desperate financial position, was to enforce the most rigid economy in all departments. All departmental expenses were to be submitted for the approval of the controller-general, a number ofsinecureswere suppressed, the holders of them being compensated, and the abuse of theacquits au comptantwas attacked, while Turgot appealed personally to the king against the lavish giving of places and pensions. He also contemplated a thorough-going reform of theFerme Générale,but contented himself, as a beginning, with imposing certain conditions on the leases as they were renewed – such as a more efficient personnel, and the abolition for the future of the abuse of thecroupes(the name given to a class of pensions), a reform which Terray had shirked on finding how many persons in high places were interested in them, and annulling certain leases, such as those of the manufacture of gunpowder and the administration of the royal mails, the former of which was handed over to a company with the scientistLavoisieras one of its advisers, and the latter superseded by a quicker and more comfortable service ofdiligenceswhich were nicknamed"turgotines".

Turgot also prepared a regular budget. His measures succeeded in considerably reducing the deficit, and raised the national credit to such an extent that in 1776, just before his fall, he was able to negotiate a loan with someDutchbankers at 4%; but the deficit was still so large as to prevent him from attempting at once to realize his favourite scheme of substituting for indirect taxation asingle tax on land.Turgot suppressed, however, a number ofoctroisand minor duties,and opposed, on grounds of economy,the involvement of Francein theAmerican Revolutionary War,though without success.

On free trade

Turgot at once set to work to establish free trade in grain, but his edict, which was signed on 13 September 1774, met with strong opposition even in theconseil du roi.A striking feature was the preamble, setting forth the doctrines on which the edict was based, which won the praise of thephilosophesand the ridicule of the wits; this Turgot rewrote three times, it is said, in order to make it "so clear that any village judge could explain it to the peasants." The opposition to the edict was strong. Turgot was hated by those who had been interested in the speculations in grain under the regime of the abbé Terray, among whom were included some of the princes of the blood. Moreover, thecommerce des bléshad been a favourite topic of thesalonsfor some years past, and the wittyGaliani,the opponent of thephysiocrats,had a large following. The opposition was now continued byLinguetand byNecker,who in 1775 published hisEssai sur la législation et le commerce des grains.

Suppression of Dijon bread riots

Turgot's biggest challenge was the poor harvest of 1774, which led to a noticeable rise in the price of bread in the winter and early spring of 1774–1775. In April and early May, when peasants begged the governor ofDijonfor bread, he uttered those famous words that would later be recalled during the French Revolution: "The grass has sprouted, go to the fields and browse on it." Houses of the wealthy were seized and occupied, flour-mills were destroyed, and furniture was smashed. Those extraordinary bread-riots are known as theguerre des farines,which ominously predicted the comingFrench Revolution.Turgot showed great firmness and decision in repressing the riots, but also some caution in using soldiers, as he had said that "every levy of soldiers led to a riot." In this, he even had conflict with the royalty, as Louis XVI wanted to go out onto the balcony and meet the crowds, to say that there would be a reduction in the price of bread, but Turgot admonished him against this, and the bread remained at high prices.His position was strengthened by the entry ofMalesherbesinto the ministry (July 1775).

On feudal obligations and protections

All this time Turgot had been preparing his famousSix Edicts,which were finally presented to theconseil du roi(January 1776).Peter Kropotkindescribed these edicts as "very modest proposals" and summarized these as "abolition of statute labor, abolition of trade-wardens and a timid attempt to make the two privileged classes – the nobility and clergy – pay some of the taxes."Of the six edicts four were of minor importance, but the two which met with violent opposition were, firstly, the edict suppressing thecorvées,and secondly, that suppressing thejurandesandmaîtrises,by which the craftguildsmaintained their privileges. In the preamble to the former Turgot boldly announced as his object the abolition of privilege, and the subjection of all threeEstates of the realmto taxation; the clergy were afterwards excepted, at the request of Maurepas.

In the preamble to the edict on thejurandesTurgot laid down as a principle the right of every man to work without restriction.He obtained the registration of the edicts by thelit de justiceof 12 March, but by that time he had nearly everybody against him. His attacks on privilege had won him the hatred of the nobles and theparlements;his attempted reforms in the royal household, that of the court; his free trade legislation, that of thefinanciers;his views on tolerance and his agitation for the suppression of the phrase that was offensive toProtestantsin the king'scoronationoath, that of the clergy; and his edict on thejurandes,that of the rich bourgeoisie of Paris and others, such as theprince de Conti,whose interests were involved.The queendisliked him for opposing the grant of favours to herprotégés,and he had offendedMme. de Polignacin a similar manner.The queen played a key role in his disgrace later.

Proposals for a representative government

With the physiocrats, he believed in anenlightened political absolutism,and looked to the king to carry through all reforms. As to the parlements, he opposed all interference on their part in legislation, considering that they had no competency outside the sphere of justice. He recognized the danger of the recap of the old parlement, but was unable effectively to oppose it since he had been associated with the dismissal ofMaupeouand Terray, and seems to have underestimated its power. He was opposed to the summoning of thestates-generaladvocated by Malesherbes (6 May 1775), possibly on the ground that the two privileged orders would have too much power in them. His own plan is to be found in hisMémoire sur les municipalités,which was submitted informally to the king.

In Turgot's proposed system,landed proprietorsalone were to form theelectorate,no distinction being made among the three orders; the members of the town and country municipalités were to elect representatives for the district municipalités, which in turn would elect to the provincial municipalités, and the latter to a grande municipalité, which should have no legislative powers, but should concern itself entirely with the administration of taxation. With this was to be combined a whole system of education, relief of the poor, and other activities. Louis XVI recoiled from this as being too great a leap in the dark, and such a fundamental difference of opinion between king and minister was bound to lead to a breach sooner or later.Turgot's only choice, however, was between "tinkering" at the existing system in detail and a complete revolution, and his attack on privilege, which might have been carried through by a popular minister and a strong king, was bound to form part of any effective scheme of reform.

American Revolution

As minister of the navy from 1774 to 1776, Turgot opposed financial support for theAmerican Revolution.He believed in the virtue and inevitable success of the revolution but warned that France could neither financially nor socially afford to overtly aid it. French intellectuals saw America as the hope of mankind and magnified American virtues to demonstrate the validity of their ideals along with seeing a chance to avenge their defeat in theSeven Years' War.Turgot, however, emphasized what he believed were American inadequacies. He complained that the new American state constitutions failed to adopt the physiocratic principle of distinguishing for purposes of taxation between those who owned land and those who did not, the principle of direct taxation of property holders had not been followed, and a complicated legal and administrative structure had been created to regulate commerce. On the social level, Turgot and his progressive contemporaries suffered further disappointment: a religious oath was required of elected officials and slavery was not abolished. Turgot died in 1781 before the conclusion of the war. Although disappointed, Turgot never doubted revolutionary victory.

Place in the Ministry

All might yet have gone well if Turgot could have retained the confidence of the king, but the king could not fail to see that Turgot had not the support of the other ministers. Even his friend Malesherbes thought he was too rash, and was, moreover, himself discouraged and wished to resign. The alienation of Maurepas was also increasing. Whether through jealousy of theascendancywhich Turgot had acquired over the king, or through the natural incompatibility of their characters, he was already inclined to take sides against Turgot, and the reconciliation between him and the queen, which took place about this time, meant that he was henceforth the tool of the Polignaccliqueand theChoiseulparty. About this time, too, appeared a pamphlet,Le Songe de M. Maurepas,generally ascribed to the comte de Provence (Louis XVIII), containing a bittercaricatureof Turgot.

Turgot after a portrait byCharles-Nicolas Cochin

Fall

The immediate cause of Turgot's fall is uncertain. Some speak of a plot, of forged letters containing attacks on the queen shown to the king as Turgot's, of a series of notes on Turgot's budget prepared, it is said, byNecker,and shown to the king to prove his incapacity. Others attribute it to the queen, and there is no doubt that she hated Turgot for supportingVergennesin demanding the recall of the comte de Guînes, theambassadorinLondon,whose cause she had ardently espoused at the prompting of the Choiseul clique. Others attribute it to an intrigue of Maurepas. On the resignation ofMalesherbes(April 1776), whom Turgot wished to replace by the abbé Very, Maurepas proposed to the king as his successor anonentitynamed Amelot.

Turgot, on hearing of this, wrote an indignant letter to the king, in which he reproached him for refusing to see him, pointed out in strong terms the dangers of a weak ministry and a weak king, and complained bitterly of Maurepas's irresolution and subjection to court intrigues; this letter the king, though asked to treat it as confidential, is said to have shown to Maurepas, whose dislike for Turgot it still further embittered. With all these enemies, Turgot's fall was certain, but he wished to stay in office long enough to finish his project for the reform of the royal household before resigning. To his dismay, he was not allowed to do that. On 12 May 1776 he was ordered to send in his resignation. He at once retired toLa Roche-Guyon,the château of the Duchesse d'Enville, returning shortly to Paris, where he spent the rest of his life in scientific and literary studies, being made vice-president of theAcadémie des Inscriptions et Belles-Lettresin 1777.

Commentary on Turgot

According to theEncyclopædia Britannica Eleventh Edition:

In character Turgot was simple, honourable and upright, with a passion for justice and truth. He was an idealist, his enemies would say adoctrinaire,and certainly the terms "natural rights," "natural law," frequently occur in his writings. His friends speak of his charm and gaiety in intimate intercourse, but among strangers he was silent and awkward, and produced the impression of being reserved and disdainful. On one point both friends and enemies agree, and that is hisbrusquerieand his lack of tact in the management of men;August Onckenpoints out with some reason the schoolmasterish tone of his letters, even to the king. As a statesman he has been very variously estimated, but it is generally agreed that a large number of the reforms and ideas of the Revolution were due to him; the ideas did not as a rule originate with him, but it was he who first gave them prominence. As to his position as an economist, opinion is also divided. Oncken, to take the extreme of condemnation, looks upon him as a bad physiocrat and a confused thinker, whileLeon Sayconsiders that he was the founder of modern political economy, and that "though he failed in the 18th century he triumphed in the 19th."

Andrew Dickson Whitewrote inSeven Great Statesmen in the Warfare of Humanity with Unreason(1915):

TURGOT...I present today one of the three greatest statesmen who fought unreason in France between the close of the Middle Ages and the outbreak of the French Revolution – Louis XI and Richelieu being the two other. And not only this: were you to count the greatest men of the modern world upon your fingers, he would be of the number – a great thinker, writer, administrator, philanthropist, statesman, and above all, a great character and a great man. And yet, judged by ordinary standards, a failure. For he was thrown out of his culminating position, as Comptroller-General of France, after serving but twenty months, and then lived only long enough to see every leading measure to which he had devoted his life deliberately and malignantly undone; the flagrant abuses which he had abolished restored, apparently forever; the highways to national prosperity, peace, and influence, which he had opened, destroyed; and his country put under full headway toward the greatest catastrophe the modern world has seen.

He now, in 1749, at the age of twenty two, wrote... a letter which has been an object of wonder among political thinkers ever since. Its subject was paper money. Discussing the ideas of John Law, and especially the essay of Terrasson which had supported them, he dissected them mercilessly, but in a way useful not only in those times but in these....As regards currency inflation... It still remains one of the best presentations of this subject ever made; and what adds to our wonder is that it was not the result of a study of authorities, but was worked out wholly from his own observation and thought. Up to this time there were no authorities and no received doctrine on the subject; there were simply records of financial practice more or less vicious; it was reserved for this young student, in a letter not intended for publication, to lay down for the first time the great law in which the modern world, after all its puzzling and costly experiences, has found safety.

Further reading

• Brewer, Anthony (1987), "Turgot: Founder of Classical Economics",Economica,54(216): 417–28,doi:10.2307/2554177,JSTOR2554177.
• Dakin, Douglas(1939),Turgot and the Ancien Régime in France,London: Methuen.
• Fraser, Antonia (2006).Marie Antoinette: the journey.[Toronto]: Anchor Canada.ISBN9780385662871..
• Groenewegen, Peter D. (2002),Eighteenth-Century Economics: Turgot, Beccaria and Smith and their Contemporaries,London: Routledge,ISBN0415279402.
• Hart, David (2008). "Turgot, Anne-Robert-Jacques (1727–1781)". InHamowy, Ronald(ed.).The Encyclopedia of Libertarianism.Thousand Oaks, CA:Sage;Cato Institute.pp. 515–16.doi:10.4135/9781412965811.n315.ISBN978-1412965804.LCCN2008009151.OCLC750831024.
• Kaplan, Steven L. (1976),Bread, Politics and Political Economy in the Reign of Louis XV,The Hague:Martinus Nijhoff,ISBN9024718732.
• Lifschitz, Avi (2004),"Language as the Key to the Epistemological Labyrinth: Turgot's Changing View of Human Perception"(PDF),Historiographia Linguistica,31(2/3): 345–65,doi:10.1075/hl.31.2.07lif
• Meek, Ronald L. (1976),Social Science and the Ignoble Savage,New York: Cambridge University Press,ISBN0521209692.
• Palmer, R. R. (1976), "Turgot, Paragon of the Continental Enlightenment",Journal of Law and Economics,19(3): 607–19,doi:10.1086/466889,S2CID154818247.
• Rothbard, Murray N.(1999)."Chapter 3. A.R.J. Turgot: Brief, Lucid, and Brilliant"(PDF).InHolcombe, Randall G.(ed.).The Great Austrian Economists.Auburn, Alabama:Ludwig von Mises Institute.ISBN0945466048.
• Tellier, Luc-Normand,Face aux Colbert: les Le Tellier, Vauban, Turgot... et l'avènement du libéralisme,Presses de l'Université du Québec, 1987, 816 pages.Etext
• Turgot (baron de l'Aulne), Anne-Robert-Jacques (2011),The Turgot Collection: Writings, Speeches, and Letters of Anne Robert Jacques Turgot, Baron de Laune,Ludwig von Mises Institute,p. 560,ISBN9781933550947.
• Wendel, Jacques M. (1979), "Turgot and the American Revolution",Modern Age,23(3): 282–89.

External links

• Andrew Dickson White'sSeven Great Statesmen in the Warfare of Humanity with Unreason(1915)at Wikiquote
• Turgot PageArchived4 February 2017 at theWayback Machineat McMaster
• Jacques TurgotatCatholic Encyclopedia
• Turgot on progress and political economy
• Notice Biographiqueby Paulette Taïeb.
• 12 mai 1776: "Renvoi de Turgot"byHérodote
• The Institut Turgotin Paris
• Turgot & 18th and 19th century Dutch economics and politics
• The Brilliance of Turgotby Murray N. Rothbard.
• Works by Anne Robert Jacques TurgotatLibriVox(public domain audiobooks)