Economy and finance

Question 1

Situation in 1558

Answer 1

£227,000 of Marian debt
Increasing population roughly 2 to 4 million in Es reign
Open field system inefficient, but 3% of land enclosed caused discontent (Kett)
Growing industry eg. cloth (4/5 exports, coal

Question 2

Aims for Elizabethan economic policy

Answer 2

• price stability
• full employment
• autarky + able to finance war
• favourable trade balance
• solvent gov’t
• tax kept at acceptable level

Question 3

Methods to deal w/ inflation

Answer 3

• debased coinage (doubled under Henry + Edward) replaced w/ new mint ‘60 - ‘61 -> not v. successful
• 1563 Statute of Artificers set uniform max. wage ceiling, fix prices

Question 4

Methods to deal w/ expenditure

Answer 4

• court salaries pegged back + limited extravagant menus
• Winchester/Paulet used surveyors to maximise value of crown lands sold
• £600,000 raised by selling surplus royal palaces/lands eliminating marian debt

Question 5

Unpaid officials

Answer 5

Individuals could gain promotion + status by acquiring rewards

• difficult for monarch to control eg. oaths of loyalty failed
• 1590s bribery was rife
• monopolies used instead of wages

Question 6

Problems with ordinary revenue

Answer 6

Couldn’t keep up w/ inflation

• customs duties not realigned
• profits from feudal dues declined until 1599

So had to be supplemented w/ taxation
eg. requested subsidy tax in 1570s during peacetime

Question 7

Financial administration

Answer 7

Exchequer reformed/modernised by Windsor + Burghley
eg. Winchester raised custom duties, collected debts owed

• Burghley from 1572 v.conservative so missed opportunities to increase revenue

By 1574 E amassed reserve of £300,000

Question 8

Overseas trade

Answer 8

• Exploration of new markets for exports like Germany Hanseatic league
• Drakes attacks in Latin America eg. Madre de Dios captured £77,000, attacked Cadiz 1587
• Royal exchange 1571 sees trade flourish under Gresham, London replaces Antwerp as financial capital of europe

Question 9

Issue of monopolies

Answer 9

Fiscal device sold by crown giving owner right to levy price of commodity
-> fuelled inflation

• long standing grievance raised by 1597-98 parl’t
• raised again 1601, against prerogative but E gave in -> Cecil revoked salt, vinegar + woad

Question 10

Poverty under Elizabeth

Answer 10

• rising prices
• increasing population
• low wages
• harvest failures ’50s and ’90s

Cecil concerned about threat to law and order + distinguished ‘deserving’ vs ‘undeserving’ poor

Question 11

Poor relief

Answer 11

1572 Act - required rate-payers to contribute to relief of their own poor
1576 Act - required towns to provision employment to deserving poor
1601 Poor Laws - system for relief based on parish
-> had to provide care + jobs for impotent poor
-> idle poor/vagrants sent to ‘house of correction’

Question 12

How much was spent on War in the year 1584 - 1604?

Answer 12

£4.5 million

Question 13

What was is the Treaty of Nonsuch?

Answer 13

1585 E financial + military support for dutch rebels vs Spain w/ £126,000 annually