the key to a clearer understanding of the evolution of the social structure, economy, and even political system of early modern France. Collins (1991) argues that the Annales School paradigm underestimated the role of the market economy; failed to explain the nature of capital investment in the rural economy, and grossly exaggerated social stability. Seventeenth century After 1597, the French economic situation improved and agricultural production was aided by milder weather. Henry IV, with his minister Maximilien de Béthune, Duc de Sully, adopted monetary reforms. These included better coinage, a return to the livre tournois as account money, reduction of the debt, which was 200 million livres in 1596, and a reduction of the tax burden on peasants. Henry IV attacked abuses, embarked on a comprehensive administrative reform, increased charges for official offices, the "paulette", repurchased alienated royal lands, improved roads and the funded the construction of canals, and planted the seed of a state-supervised mercantile philosophy. Under Henry IV, agricultural reforms, largely started by Olivier de Serres were instituted. These agricultural and economic reforms, and mercantilism would also be the policies of Louis XIII's minister Cardinal Richelieu. In an effort to counteract foreign imports and exploration, Richelieu sought alliances with Morocco and Persia, and encouraged exploration of New France, the Antilles, Sénégal, Gambia and Madagascar, though only the first two were immediate successes. These reforms would establish the groundwork for the Louis XIV's policies. Louis XIV's glory was irrevocably linked to two great projects, military conquest and the building of Versailles—both of which required enormous sums of money. To finance these projects, Louis created several additional tax systems, including the "capitation" (begun in 1695) which taxed every person including nobles and the clergy, though exemption could be bought for a large one-time sum, and the "dixième" (1710–1717, restarted in 1733), which was a true tax on income and on property value and was meant to support the military. The Taille remained the chief direct tax, but its weight fell differently depending on the fiscal status (généralité) of the province. The Pays d'états were at a great advantage because they paid the Taille Réelle, which was based on a fixed percentage of a property's value. The Pays d'élection enjoyed no such privileges, their taille rate was assessed behind closed doors by the Council of State, which raised the taille arbitrarily to try and close the widening government deficit. The differences