<P> "The French Revolution abolished many of the constraints on the economy that had emerged during the old regime . It abolished the guild system as a worthless remnant of feudalism ." It also abolished the highly inefficient system of tax farming, whereby private individuals would collect taxes for a hefty fee . The government seized the foundations that had been set up (starting in the 13th century) to provide an annual stream of revenue for hospitals, poor relief, and education . The state sold the lands but typically local authorities did not replace the funding and so most of the nation's charitable and school systems were massively disrupted . </P> <P> The economy did poorly in 1790 - 96 as industrial and agricultural output dropped, foreign trade plunged, and prices soared . The government decided not to repudiate the old debts . Instead it issued more and more paper money (called "assignat") that supposedly were grounded seized lands . The result was escalating inflation . The government imposed price controls and persecuted speculators and traders in the black market . People increasingly refused to pay taxes as the annual government deficit increased from 10% of gross national product in 1789 to 64% in 1793 . By 1795, after the bad harvest of 1794 and the removal of price controls, inflation had reached a level of 3500% . Throughout January and February 1795, the Seine River (the main source of import and export of goods at the time) froze, making it impossible to transport anything through there, such as food, luxury goods and materials that factories depended on in order to keep running . Many factories and workshops were forced to close because they had no way to operate, this led to an increased amount of unemployment . With unemployment soaring, many of the poor (most of the population) were forced to sell their belongings . On the other hand, the very few who were wealthy, could afford anything they needed . "The markets were well stocked, but the food could only be bought at excessive prices". The value of the assignats "had plunged from 31 percent of that of the silver currency in July 1794 to 8 percent in March 1795" The assignats were withdrawn in 1796 but the replacements also fueled inflation . The inflation was finally ended by Napoleon in 1803 with the gold franc as the new currency . </P> <P> Agriculture was transformed by the Revolution . It abolished tithes owed to local churches as well as feudal dues owed to local landlords . The result hurt the tenants, who paid both higher rents and higher taxes . It nationalized all church lands, as well as lands belonging to royalist enemies who went into exile . It planned to use these seized lands to finance the government by issuing assignats . With the breakup of large estates controlled by the Church and the nobility and worked by hired hands, rural France became permanently a land of small independent farms . The rural proletariat and nobility both gave way to the commercial farmer . Cobban says the revolution "bequeathed to the nation "a ruling class of landowners ." In the cities entrepreneurship on a small scale flourished, as restrictive monopolies, privileges, barriers, rules, taxes and guilds gave way . However the British blockade severely damaged overseas trade . Overall the Revolution did not greatly change the French business system, and probably helped freeze in place the horizons of the small business owner . The typical businessman owned a small store, mill or shop, with family help and a few paid employees; large - scale industry was less common than in other industrializing nations . </P> <P> Napoleon after 1799 paid for his expensive wars by multiple means, starting with the modernization of the rickety financial system . He conscripted soldiers at low wages, raised taxes, placed large - scale loans, sold lands formerly owned by the Catholic Church, sold Louisiana to the United States, plundered conquered areas and seized food supplies, and levied requisitions on countries he controlled, such as Italy . </P>

How did france make money in the colonies