Crown Finance Flashcards
What was a major problem with finance at the beginning of Edward’s reign?
The Great Debasement of the 1540s
How much did ‘The Great Debasement’ of the 1540s raise for Henry VIII?
£360,000
How much did the continuation of ‘The Great Debasement’ raise by 1551?
£1.2 million
What was the problem with the policy of debasement?
It was short sighted as it led to inflation, a loss of confidence in the currency and so it became difficult for the government to obtain credit from foreign markets
Beside debasement, what was Henry VIII’s financial legacy?
He left a large amount of debt, he ahd borrowed over £100,000 from Antwerp
How much did Somerset’s policy towards Scotland cost?
£580,000
What policy did Somerset continue?
Debasement
Who did Northumberland appoint as Lord Treasurer?
William Paulet
What reforms did Paulet make to crown finance from 1550 onwards? (3)
- ending debasement
- reducing expenditure so that it matched income and allowed the King to ‘live of his own’
- attempted to pay of some debts
How was debasement ended in 1551?
Northerumberland did not call in debased coins but rather ordered people to lower prices and trust the exisiting coinage
How much was Boulogne returned to France for?
£133,333
How was expenditure reduced under Northumberland? (3)
- drastic reductions to military and the household
- stricter methods of accounting
- emergency household fund established
Why did reductions in expenditure under Edward not achieve the goal of making the monarch live within his means?
This was not a realisitic expectation as the crown finance no longer raised enough to cover the costs of the household
What was the debt in 1550?
£300,000
What has the debt been reduced to in 1553?
from £300,000 to £180,000
How did Northumberland reduce debt between 1550 and 1553?
- sale of crown lands
- parliamentry taxes raised over £300,000
- government calling in debts raised £16,000
Who was sent by Northumberland to Antwerp to renegotiate the debt owed?
Thomas Gresham
What interest rate did Thomas Gresham negotiate with Antwerp?
12% compared to 16% that Charles V was being charged
What were the impacts of Northumberland’s finanical policies long term?
weakened the governments financial position by seeling so much crown land
What did Mary do with William Paulet, Lord Treasurer, upon her accession?
She kept him on as Lord Treasurer
How was the Exchequer extended in Mary’s reign under Paulet?
expanded to incorporate the Court of Augmentations and the Court of First Fruits
How much of crown income did the exchequer handle as a result of it incorporating more financial courts?
75%
What happened to rents on crown lands under Mary?
they were re-evaluated and raised, generating an extra £40,000
When was a new book of rates introduced during Mary’s reign?
1558
Why was a new book of rates required in 1558?
the previous book of rates had not been updated since 1507 and hundreds of commodities were untaxed or taxed well below the level of inflation
How much did custom duties rise from 1557 to 1559?
from £29,000 to £82,000
What did the lose of Calais mean for crown finance?
no longer the cost of garrisoning
What was the change in the debt in Mary’s reign?
from £180,000 to £300,000
Why is the raising of the debt from £180,000 to £300,000 in Mary’s reign considered impressive by most historians?
she had been at war with France for 18 months and lacked the ability to exploit the church in the same way as pervious monarchs
How did Elizabeth reward courtiers
wherever possible she rewarded courtiers by giving them monopoly rights or warships which do not directly cost the crown
How did Elizabeth moniter the costs of her household?
No new palaces were built and annual maintenance costs were halved. Naval expenses were maintained at a minimum by remodelling old ships rather than building new ones
Why were the queen and privy council in constant contact with the exchequer?
they took every decision on expenditure no matter how small
What did the governments slow response to inflation mean in real terms during Elizabeth’s reign?
income fell behind in a time of rising prices, custom duties were not realigned to take inflation into account, profits from fedual dues declined rather than increased
When did the profits from fedual dues stop declining during Elizabeth’s reign?
in 1599 when Robert Cecil took over of the court of wards
how much did Winchester and Leicester owe to the crown during Elizabeth’s reign?
£70,000
Why did the amount raised from each subsidy tax which was granted fell with every collection during the reign of ELizabeth?
Nobles began under valuing their assests so they wouldn’t be taxed as much, the government made no attempt to improve this
What were the problems with Cecil as Lord Treasurer?
He followed Elizabeth’s instructions to cut back costs but made no attempt to improve or reform the system
What did Robert Cecil do when he took over the Court of the Wards?
he raised the selling price of Wardships to four times the value of the lands
What did Elizabeth do in the 1590s due to the mounting costs of war that was unpopular in order to raise money?
granting monopolies as patronage and Purveyance, the right of the crown to buy supplies for the royal household at a much lower price
Why was there corruption in government and the exchequer under Elizabeth?
office holders held their positions for life and were responsible for appointing their own staff and distributing rewards to them
Example of the corruption within the exchequer under Elizabeth’s reign?
as the economy slumped in the 1590s people looked for different ways to subsidise their income, often leading to bribery in order to gain positions
Examples of bastard revenue?
forest laws, ship money and monoplies
What were bastard revenues seen as by properties classes?
a pervesion of royal rights
