Thursday, February 1, 2018

The Price of Bread

The Project:
Not too long ago, I picked up a mailed circular that caught my eye not for the postal history, but for the contents of the item being mailed.  Anyone who has passing knowledge of European history may perk up if there is mention of a "Bread Tax."  But, it is also likely that most people, like me, won't know exactly where they heard about a bread tax.  I am guessing some vague recollection about Marie Antoinette and peasants 'eating cake' may come to mind.  But, the story (as usual) is much more complex and interesting than just a side reference to the French Revolution.  This project consists solely of learning what the 'taxe officieuse du pain' was in 1865.
Last edited: March 31, 2018

Flyer Contents:
"The mayor of the village of Tarbes informs the administrators the voluntary bread tax for the 2nd fortnight of June 1865 is fixed as follows:"

The average prices of wheat (three quality levels) follow on the sheet (per hectolitre).  Which then concludes with the bread prices.

"According to these prices the voluntary tax is the following:"  Price levels follow for white bread and mixed grain bread (Meteil).

The literal translation to "tax" is actually inaccurate then, since this is clearly a price control rather than an additional cost levied to be collected by the government.
Letter Rate: 
This item was mailed from Tarbes in Southern France (Hautes-Pyranees department) to nearby Vic-en-Bigorre, which was apparently under the jurisdiction of Tarbes for the purposes of the 'taxe offieuse du pain.'  It appears that the standard letter rate was used for this item rather than a printed matter or other discounted postage rate.  This rate was 20 centimes for an item up to 10 grams in weight which was effective from Jul 1, 1860 - Aug 31, 1871.

Vic-en-Bigorre arrival June 9, 1865
Apres Le Depart:

The item is postmarked on Jun 8, 1865 and was given an "Apres Le Depart" box marking to indicate that it was posted AFTER the mail had left for the day.   These markings were used by the post office as a way of explaining delays in delivery for items that were received after the departure of whichever mode of conveyance was required to move the item forward in the postal system.  In this case, the item came to the post office after the scheduled train had already left the station.  Hence, it had to wait until the next departure (the following day).


Route: 
Vic-en-Bigorre is only 20 km away from Tarbes to the North and is located on the rail line spur that connected to the Bayonne/Bordeaux railway. 


Rail lines in France to 1860.
Taxe Officieuse du Pain
It took a while to find the right search parameters, but once I did I was able to find a couple of books that clarified the topic for me.  The explanation given by Knoop in 1912 couldn't be made clearer, so I use it here:

"... policy adopted by many French municipalities of fixing each week a taxe officieuse du pain and in a few cases a taxe officielle du pain.  Each is based upon the current price of corn, the calculations being made according to a fixed rule that allows for the cost of baking and for the baker's profits.  The taxe officieuse is merely semi-official and indicates to purchasers what constitutes a reasonable price for bread.  The taxe officielle is an official price which may not be exceeded for the specified qualities of bread." [1, p 72]

Needless to say, this flyer calculates bread prices based on the price of wheat, not corn.  It is possible that the price of other grains also entered into the calculations, but they are not made as apparent as the price of wheat in the flyer shown above.
"The notices on which the prices are printed... have to be displayed in a conspicuous position in every baker's shop." [1, p 72]

Clearly, Tarbes was the regional authority that set the bread price and flyers were sent out to the surrounding towns to be posted.  The top corners of this sheet seem to indicate that it was, indeed, posted somewhere and then taken down.  Someone must have felt like saving these since this copy has managed to survive to the present day.

Why Unofficial Bread Price Control?
 It turns out that the step from required to voluntary price controls was a fairly new situation in France, with free trade for bakers being established in mid-1863.  Prior to that, there were taxe officielle that set prices for bread and these controls were actually a tool to maintain the peace in France (and Italy - perhaps other locations as well?).

"Another sign of the times was the final extension of free trade to the bakers, with the suspension of age-old restrictions by a decree of 22 June 1863.  Regulation of bread prices (the taxe du pain) and controls over bakers had traditionally been key elements of police power.  The ending of such regulations became acceptable only with the disappearance of  massive price fluctuations and the reduction in the consumer emotiveness which had been so characteristic of the ancien regime economique.  It was anticipated that liberation, accompanied by an end to limitations to the number of bakers, would increase competition and reduce price levels." [2, p202]

The consumer "emotiveness" referenced by Price in the above quote was rooted in the extreme reliance on bread in the diet of most people during the Industrial Revolution period.  In particular, the move to urbanization resulted in fewer people working the land for their own subsistence.  Though, you could also argue that peasants couldn't always work for their own subsistence either since they did not control the disposition of crops.  Regardless, if bread provided the majority of a person's diet, it only makes sense that shortages or high prices would cause an "emotive" response.  If you can't get bread, you can't eat - so you can't live.  Neely suggests that a common worker in France would expect at least 50% of wages to go toward bread.  That percent rose to 88% in 1788-1789. [3]

Flour War of 1775
And, this is where the history tidbit most of us have some recollection of connects to the topic as a whole.  The "Flour War" of 1775" occurred as result of high bread prices.  Essentially, the government relaxed bread price controls and prices rose as part of a new "laissez-faire/laissez-passe" policy that encouraged less government participation in control of economic factors.  In Sept 1774, free trade in grain was established and police controls were abolished with respect to grain and bakers.

This new freedom led to speculation in grains, with some hoarding the product in anticipation of higher prices.  As a result, there were grain shortages in early 1775 with the prior year's crops either consumed or hoarded and the new year's crops not yet mature.  Prices did, in fact, increase dramatically as those who hoarded the grain helped to create a situation of scarcity throughout France.  This differed from prior periods of shortage which were normally regional.  In those cases, the government could receive a petition and respond to alleviate the shortage.  With the new "laissez-faire" system, speculators bought from regions with plenty and hoarded - essentially putting all regions in a position of scarcity that relied on the speculators to provide the needed grain at the speculators' price.

In some locations, the people executed what they called a "popular taxation" by liberating grain shipments and selling at a "proper or fair price."  In general, rioting targeted the hoarders and others (often government officials) that were supposed to be responsible for the shortages.  The government was forced to respond with force and they re-instituted controls on grains and bakeries.

Even with these price controls, bread was still one of the motivating factors in the French Revolution of 1788-1789.  There were poor crops worldwide for several years due to the Laki volcano eruption in Iceland (June 8, 1873).  Hungry people can become desperate people.  Desperate people became dangerous people once they decided the current government (true or not) is using famine to its benefit.  Obviously, the French Revolution was far more complex than this, but it can truly be said that hunger, and a poorly timed economic experiment, played a role.

The Cautious Removal of Price Controls in 1863
Improved infrastructure for communications and transportation resulted in conditions that could potentially support free trade in grains and an open market for bakers. 

"Even so, the government remained cautious.  Local authorities were still required to establish a taxe officieuse and to publish it: this was to be the suggested selling price for bread.  Furthermore, a list of bakers selling below this price was to be published to encourage competition." [2, p 202]

This mailed article is evidence of this system that was noted to still be in use in many parts of France in 1912 by Knoop.  While a baker could certainly charge more for a product than the prices shown in the taxe officieuse, the consumer could make an informed choice about price based on the baseline prices offered by the government.

While you might think the French Revolution and the Flour Wars might have been firmly in the rearview mirror by this point in time, there was still resistance to the idea of a free market for bread and grains. 

"In 1863, after a good harvest, the price of bread ... was estimated to be some 2 centimes higher than if the taxe du pain had been retained.... There was thus widespread discontent with the new system.  This noticeably increased after poor harvests in 1866 and 1867." [2, p 202]

However, this time, the change to a more "laissez-faire" approach in the grain market stuck, resulting in a system that flattened out price changes.

"In spite of this, consumers were in a far better position than before because of the reduction in the amplitude and rapidity of price fluctuations." [2, p 203]


Resources:
[1]Knoop, Douglas, "Principles and Methods of Municipal Trading", MacMillan and Co, Ltd, London, 1912

[2] Price, Roger, "the Modernization of Rural France: Communications, Networks and Agricultural Market Structures in Nineteenth Century France," Routledge, London, 1983.

[3]Neely, Sylvia, "A Concise History of the French Revolution,"  Rowman and Littlefield, 2008.

Additional:
Lesgor, R, Minnigerode, M & Stone, R.G., "The Cancellations on French Stamps of the Classic Issues: 1849-1876," Nassau Stamp Company, 1948.

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