Elizabeth and the economy Flashcards
what was the economic situation in 1558 (from Mary, types of income, financial advice)
1) £227, 000 debts from Mary’s war w/France- she had reformed financial admin though
2) Ordinary Income- customs duties, landed estates, profits of justices and patronage
Extraordinary Income- subsidies from parliament, asked them as infrequently as possible
3) Lord Treasurer- Paulet very experienced
Gesham blamed problems on- debased coinage, war, prominence of Hansetic league.
G encouraged E to have excellent credit rating- persuades Cecil to reduce Ursury Laws so more borrowing from within England and levy some interest.
He manipulates markets set up Royal Exchange 1565.
Convinces Cecil of 1571 = 10% interest on loans
What steps did Elizabeth take to save money
ran economic court- no building, stayed w/courtiers, received gifts
Avoided was w/Spain
1564 @ £300, 000 surplus- changes with the war
How did Elizabeth exploit Crown Lands
Raises by £25, 000ish. Sold some crown lands. Gains not as much as nobility as she sticks to long term leases- doesn’t want to exploit
How did Elizabeth exploit Parliamentary tax
Gets £140, 000 in subsidy bill- less than normal. Didn’t call them much. Many nobles under assessed- didn’t wan to challenge cause expensive and could alienate them.
How did Elizabeth exploit Customs Duties
Book of Rates- increases to £80, 000 but after only stays pace w/inflation.
Doesn’t expand trade- finishing wool fails- made money exempting people from finishing. Increase in smuggling and hard to control.
Customs farmers- worked more in their favor
How did Elizabeth exploit Efficiency Saving
Revenue- collected at Exchequer of Receipt, better financial control and less duplication
Paulet- uses official directly responsible to him- less officials keeping money but tellers had been ‘borrwing’ secretly
Salaries- not increased so take bribes, lessen control
Financial committee- cuts, debts and selling crown lands but costs a lot to set up
How did Elizabeth exploit income from the church
Received 1st fruits and tenths as head of Church
Church gave grants with parliament
Kept bishop position vacant
Increase in recursury fines- hard to enforce and she valued conformity more than money
What were the effects of the war on Elizabeth’s income
Involved w/Netherlands to distract Spain and fight Catholicism.
1556- Flemming refugees bring more income but are restricted eg higher custom duties
Spain claims monopoly on Spanish America = tension and England abandons Antwerp for Germany
Reduced revenue as Spain blames England for piracy and England resents Spanish treatment of sailors.
She took over Spanish loan via capturing Bullion so Spain seizes English property, as does England- trade stops but Spain comes off worse
Expell Sea beggars- return spurring Dutch revolt which drains England
Postpones war to save money
Francis Drake- captures Spanish treasure in 1580 and boosts pride
Treaty of Nonsuch = £126, 000 in troops but Drake can legally capture treasure eg attack on Cadiz and he postpones Armada
What were monopolies and purveyance? Why were they a problem?
grant giving people trade rights- rewards and protect inventors
Purveyance- crowns right to buy cheaply
Why did E compromise on monopolies?
Initially reluctant as they were useful and she had other social problems
1601- big problem in parliament
Thought through and convincing debates
She suspends most harmful monopolies
Outline the problem of inflation
Affects food more than production
made worse by: debased coinage, population but this eases, price rise, famine, enclosure, Spanish bullion, Elizabeth refusing to spend, fail of re coinage, war mainly they don’t know that population rise is the main cause.
How did Elizabeth try to solve inflation with recoinage
1561 old coins used for potholes but new coins do not bring down inflation
Have to borrow from Antwerp and loss of confidence in the £
Merchant still charging the same, demand outstripping supply so tries to reduce imports and luxury items but this only causes trade embargos
How else did Elizabeth try to solve inflation
1) max prices- only for French wine
2) fasting and fish days- protest from Protestants
3) exporting grain forbidden in hard times
4) Book of Orders after 1585 Bad harvest- no hoarding and provision for cheaper corn
5) Legislation 1597-8- derelict houses refurbished, JPs fix wages, cloth making regulated, Poor Acts
Trade: Asia
Muscovy Company- imports fur, hides, timber helping navy
Aim to use Volga to Persia to undercut Portugal- trade silk and spices
1580s Levant Company- Turkish empire
Venetian Company- goods to East Mediterranean
Jenkinson relied on Tsar to trade with Persia. Rulers and courts unpredictable. 1573 trade with Persia abandoned as Shah didn’t want to trade w/non-Muslims but Ivan trusted them
Trade: Slaves
Hawkins- support from court, slaves to West Indies in 1562 and return with ginger, hides, sugar. 1564- Queen has stake in voyage. Emity of tribes used to advantage.
Spain resent English trade with American settlements. Resistance and expensive to capture. Hawkins looses ships under Spanish attack,
