Economy + Finance Flashcards
what % was alcabala and who had to pay?
10% and everyone
how much money did alcabala bring in?
by 1550 25% of ordinary income
how much was ordinary income by 1550?
1.25 million ducats/year
what defeat of Comuneros lead to?
very little opposition to taxation
what happened 1523 cortes of Valladolid?
voted a servicio of 400,000 ducats over 3 years
how much money did the cortes average ?
- 1520s 130,000 ducats/year
- 1550s 400,000 ducats/year
when was the first subsidio granted from the church?
1519
how much money did they get from subsidio?
1532 - 372,000 ducats
1551 - 500,000 ducats
why were the able to get so much money from church?
due to dominance over church - erastian rule
how did crown benefit from new world wealth?
- quinto- across region brought in 270,000 ducats/year
- total of 11.9 million ducats/year (directly to crown)
how much did taxes and expenditure increase by? why was this bad?
- 50% and 100%
- bad as although taxes increasing, spending increasing more - so net loss
who didn’t pay tax?
richest 13% - hidalgos
what did he fail to introduce in 1538?
- sisa tax
- would have brought in 800,000 ducats/year
what did Charles spend lots of money on?
wars e.g. French, turks and German protestants
how much did money did he spend on France?
- 1552 borrowed 4 million ducats to finance France
- 2.5 million ducats on siege of Metz
did Charles attempt to get nobles to pay servicio?
1527 failed to get nobles to contribute to servicio
what was Charles told in feb 1544?
- told his budget needs for next year came to 2.375 million ducats
- only had 750,000 ducats available
what did Charles use finance his spending ?
loans
how much money did he borrow during 1550s?
1552-56 - 9.6 million ducats available in 121 asienetos at interest rate of 48%
how did financial situation change over time?
situation serious in 1520s + 1530s - 1550s near catastrophic
how did the interest rates used by bankers increase over time?
1520s charged 17.6%
1550s charged 48.8%
how much did the geneose bankers charge ?
charged 67.4% after 1552
how much money was spent n repaying debts?
by 1556, 68% of income repaying juros
what role did the council of finance play in controlling Charles?
- failed to control his spending
- had to prevent bankruptcy by selling offices and seizing private bullion shipments
why did seville and south benefit from new world trade?
- Spanish settlers wanted Castilian products
- merchants in south benefited from increased trade
how many new world settlers were there?
118,000 by 1570
what was set up in in seville?
1503 Casa de Contratación
how did seville’s population increase?
- 1500 - 60-70,000
- 1588 - 150,000
how was Granda doing well and why?
- granda silk industry doing well
- due to Charles’s lenient policies towards muslims
how did old Castile benefit?
- shipbuilding in north from new world trade
- Basque navigators much sought after
what was the main trade in burgos and why did it benefit?
- 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
when was greatest benefit from new world?
from 1540
what mines were opened during 1540s?
- potosi mine (peru) opened 1545
- zacatecas mine (Mexico) opened 1548
when did Charles allow foreigners into the new world?
- allowed foreigners to trade w/ new world between from 1524
- reversed the decision in 1538
how did foreigners still get into new world after Charles re-introduced ban?
by buying special licences or naturalisation certificates
what % of silver when to foreign bankers?
40% of silver
what discouraged nobles from industry ?
- high taxation discouraged nobles
- greatest financial return from Juros
what silver play big role?
inflation - EJ Hamilton’s 1934 ‘price revolution’
what was the inflation in Spain like?
1511-19 in Andalusia- wheat 109%, oil 197% and wine 655%
why was there widespread famine and poverty
- too much emphasis on mesta
- andalusian farmers grow cash crops to send to new world
how could shipbuilding have been stronger?
didn’t have enough shipyards to build ships - meant they had to buy foreign ships
what other spanish industry was particularly weak?
weapons industry - had to buy from Italy and Germany
