Economy + Finance

Question 1

what % was alcabala and who had to pay?

Answer 1

10% and everyone

Question 2

how much money did alcabala bring in?

Answer 2

by 1550 25% of ordinary income

Question 3

how much was ordinary income by 1550?

Answer 3

1.25 million ducats/year

Question 4

what defeat of Comuneros lead to?

Answer 4

very little opposition to taxation

Question 5

what happened 1523 cortes of Valladolid?

Answer 5

voted a servicio of 400,000 ducats over 3 years

Question 6

how much money did the cortes average ?

Answer 6

• 1520s 130,000 ducats/year

- 1550s 400,000 ducats/year

Question 7

when was the first subsidio granted from the church?

Answer 7

1519

Question 8

how much money did they get from subsidio?

Answer 8

1532 - 372,000 ducats

1551 - 500,000 ducats

Question 9

why were the able to get so much money from church?

Answer 9

due to dominance over church - erastian rule

Question 10

how did crown benefit from new world wealth?

Answer 10

• quinto- across region brought in 270,000 ducats/year

- total of 11.9 million ducats/year (directly to crown)

Question 11

how much did taxes and expenditure increase by? why was this bad?

Answer 11

• 50% and 100%

- bad as although taxes increasing, spending increasing more - so net loss

Question 12

who didn’t pay tax?

Answer 12

richest 13% - hidalgos

Question 13

what did he fail to introduce in 1538?

Answer 13

• sisa tax

- would have brought in 800,000 ducats/year

Question 14

what did Charles spend lots of money on?

Answer 14

wars e.g. French, turks and German protestants

Question 15

how much did money did he spend on France?

Answer 15

• 1552 borrowed 4 million ducats to finance France

- 2.5 million ducats on siege of Metz

Question 16

did Charles attempt to get nobles to pay servicio?

Answer 16

1527 failed to get nobles to contribute to servicio

Question 17

what was Charles told in feb 1544?

Answer 17

• told his budget needs for next year came to 2.375 million ducats
• only had 750,000 ducats available

Question 18

what did Charles use finance his spending ?

Answer 18

loans

Question 19

how much money did he borrow during 1550s?

Answer 19

1552-56 - 9.6 million ducats available in 121 asienetos at interest rate of 48%

Question 20

how did financial situation change over time?

Answer 20

situation serious in 1520s + 1530s - 1550s near catastrophic

Question 21

how did the interest rates used by bankers increase over time?

Answer 21

1520s charged 17.6%

1550s charged 48.8%

Question 22

how much did the geneose bankers charge ?

Answer 22

charged 67.4% after 1552

Question 23

how much money was spent n repaying debts?

Answer 23

by 1556, 68% of income repaying juros

Question 24

what role did the council of finance play in controlling Charles?

Answer 24

• failed to control his spending

- had to prevent bankruptcy by selling offices and seizing private bullion shipments

Question 25

why did seville and south benefit from new world trade?

Answer 25

- Spanish settlers wanted Castilian products | - merchants in south benefited from increased trade

Question 26

how many new world settlers were there?

Answer 26

118,000 by 1570

Question 27

what was set up in in seville?

Answer 27

1503 Casa de Contratación

Question 28

how did seville's population increase?

Answer 28

- 1500 - 60-70,000 | - 1588 - 150,000

Question 29

how was Granda doing well and why?

Answer 29

- granda silk industry doing well | - due to Charles's lenient policies towards muslims

Question 30

how did old Castile benefit?

Answer 30

- shipbuilding in north from new world trade | - Basque navigators much sought after

Question 31

what was the main trade in burgos and why did it benefit?

Answer 31

- wool trade - trade boosted between burgos and seville - sent a lot of wool to low countries - due to Charles's close political relationship between Castile + Low Countries, closer economic ties

Question 32

when was greatest benefit from new world?

Answer 32

from 1540

Question 33

what mines were opened during 1540s?

Answer 33

- potosi mine (peru) opened 1545 | - zacatecas mine (Mexico) opened 1548

Question 34

when did Charles allow foreigners into the new world?

Answer 34

- allowed foreigners to trade w/ new world between from 1524 | - reversed the decision in 1538

Question 35

how did foreigners still get into new world after Charles re-introduced ban?

Answer 35

by buying special licences or naturalisation certificates

Question 36

what % of silver when to foreign bankers?

Answer 36

40% of silver

Question 37

what discouraged nobles from industry ?

Answer 37

- high taxation discouraged nobles | - greatest financial return from Juros

Question 38

what silver play big role?

Answer 38

inflation - EJ Hamilton's 1934 'price revolution'

Question 39

what was the inflation in Spain like?

Answer 39

1511-19 in Andalusia- wheat 109%, oil 197% and wine 655%

Question 40

why was there widespread famine and poverty

Answer 40

- too much emphasis on mesta | - andalusian farmers grow cash crops to send to new world

Question 41

how could shipbuilding have been stronger?

Answer 41

didn't have enough shipyards to build ships - meant they had to buy foreign ships

Question 42

what other spanish industry was particularly weak?

Answer 42

weapons industry - had to buy from Italy and Germany