The 'Treasury' of France was not empty as such during the Reign of Louis XVI. However, the economic condition was strained to a certain extent, mainly due to the support France was giving to the American Revolution. Other theories claim that it was the limitless spending and luxurious lifestyles that the people had to afford for the Royalty and the Aristocracy that was draining the coffers. The people at that time certainly believed so and pinned much of the blame for almost all on France's troubles on Queen Marie Antionette (wrongly so). The only crisis France faced at that time was a serious shortage of bread. Otherwise, under the reign of Louis XVI , France was one of the richest nations and a leading power of Europe (and the rest of the world).
or
1.Under Louis XVI,France helped the thirteen American colonies to gain freedom from common enemy Birtain.The war added more than a thousand livres to a depth that was already rising.
2.Long years of war had drained the financial resources of France and added to this was the cost of maintaining an extravagant court at the immense palace of Versailles.
3.Moneylenders started giving state credit and started charging 10% interest on loans.Therefore the government was obliged to spend an increasing amount of its money in paying the interest loans.
4.The government needed money to maintain the court,the army,the government universities and offices.
