3. Crown finances: weakness and attempts at reform Flashcards
What unresolved, entrenched financial issues caused finance to become a serious problem under James I (4) ?
1) Rising inflation - increased the Crown’s expenditure
2) The failure to reform the collection of Crown income - land was being undervalued (assessed)
3) Corruption in tax collection - reliant on members of the PN
4) War with Spain and trade depressions meant the monarchy couldn’t build reserves
How much money did James start his reign with?
None - grants and subsidies (from parliament or collected from forced loans) only covered Elizabeth’s debt of £420,000
How did corruption in tax collection cause problems for Crown finances?
Assessors undervalued themselves to pass less tax - e.g. Buckingham undervalued himself in 1623 by around £19,600 - his income was £20,000 but assessed at only £400 per year
How did inflation cause problems for Crown finances?
A population rise of 2.5 million over the 16th century meant expenses increased (due to sacristy of resources) - e.g. agricultural prices rose by over 300%. This led to royal income becoming increasingly inadequate for government expenses and further problems with tax assements as they were updated in line with inflation
Debt in 1606
£700,000
Finance to Scottish friends
Granted 3 subsidies in 1606 to settle debts, but gave £44,000 to 3 Scottish friends, worrying English elite. £250,000 spent on them in 1610.
Court expenses doubled under James - ‘Spend and God will send’ attitude + image
The Great Customs Farm
1604 - James sold the rights to collect customs duties, bringing in a regular income (£115,000 per year, worth £136,000 by 1611) - a monopoly
Bates Case
1606 - Court judgement confirms James’ prerogative right to impose new custom duties on imported goods - caused tensions with Pment due to concerns of abuse of power
Book of Rates
1608 - levied impositions on 1400 new goods - raised £70,000 a year at the expense of great complaints from Pment in 1610 and 1614.
What problems did impositions create and why?
Undermines the influence of Pment - puts James closer to financial independence through showing he can raise new impositions without Pment (arguably not allowed) - a reassertion of his prerogative rights and establishment a definitive hierarchy in law
This also caused tensions for landowners as the £70,000 came out of their pockets
Book of Bounty
1608 - Attempt to restrain James’ spending (+ reorganise leasing of land to improve long-term income) - prohibited J from giving major items (lowering courtiers expectations).
Failed because J just gave out these items of patronage in cash - giving £36,000 in the last 4 months of 1610)
James’ promises to Cecil
1608 - Promised to not give away land
1609 - Promise to not give away pensions or gifts
Failed to keep either promise.
Debt in 1610
Debt at £280,000 with expenses at £511,000 annually - due to the work of Cecil
Great Contract
1610 - Cecil proposed Pment to give J £200,000 annually in return for the removal of some prerogative income (feudal dues) such as wardship (worth about £115,000) - failed.
Why did the Great Contract fail (4) ?
1) Pment wanted more rights removed e.g. impositions
2) James’ untrustworthy reputation - Pment feared he would continue to pocket feudal revenues anyway if it was passed
3) MPs concern they’d be funding James’ extravagance
4) Pment ‘would be giving up their most valuable weapon’ - increase risk of James having financial stability + later independence - reducing their control over him
Sale of Titles
Sale of Knights exhausted its value and new ones needed to be introduced. Baronet introduced in 1611 for £1095 with 200 being sold by March 1614 for £90,885 profit, but value declined to £220 by 1622. Title of Earl introduced for £10,000. In 1615, 27 earls, but by 1628, 65 earls.
Debt in 1614
£680,000 - Addled Pment called for subsidies
James’ financial mismanagement in 1614
After dissolving the Addled Pment he went on a spending spree, peaking at £522,000 in 1614 - hides his need for Parliamentary assistance (they think he just needs to control extravagance)
Debt in 1618
£900,000 - result of ‘The Years of Drift’
Debt in 1620
£900,000
Parliament of 1621
Granted James only 2 subsidies due to grievances over monopolies. 100 existed by 1621 and Giles Mompesson, relative of Buckingham, was targeted for abuse of monopolies. Lionel Cranfield and Edward Coke (encourgaged by Buckingham - weaponised against enemies) impeached rival Francis Bacon for taking bribes (pardoned by J but dismissed from office + Pment)
Due to the continuing economic depression (bad harvests) Commons grant 2 subsidies = £140,000 - not enough for war
Lionel Cranfield Expenses Investigation
By 1621, Cranfield had investigated the Royal finances and wardrobes + reduced J’s expenses by 50%. Worked only in short term due to James’ refusal to cooperate - on wanting finance for War with Spain
Statute of monopolies
1624 - limited the crown’s right to grant monopolies without permission from Parliament = COMPROMISE
Subsidy Act
1624 - granted James £300,000 for war (naval specifically) - this was totally inadequate for his needs but HoC believed it was very generous - shows crown’s reliance upon Pment - lost prerogative to have sole control over FP
James’ finances 1603 - 10
Rising problems and mistrust (impositions, extravagance)
Failure of the Great Contract
(Cecil)
James’ finances 1612 - 18
The Years of Drift (Cecil dies in 1612) - debt grows
James’ finances 1621 - 25
Changes needed as James is desperate for money to fund war
(Cranfield made Lord Treasurer in 1621, in charge of finances since 1618 - impeached by Buckingham in 1624 due to saying war w/ Spain is unaffordable
