Elizabeth's Economy Flashcards
Elizabeths management of financial, economic and social affairs
What debts did Elizabeth face from Mary’s reign in 1558?
French War
Debt from the Antwerp Exchange - Elizabeth had to pay 14% interest
What positive economic reforms did Elizabeth receive from Mary’s reign in 1558?
Book of Rates from Custom duties
3/4 of Crown revenue into Exchequer
Paulet (Marquis of Wincester)
Prevented duplication of officials
What did Thomas Gresham do in 1558?
Identified Debasement Cost of war Loans needed Privileges of Hanseatic League, carrying wool from England
What reforms did Elizabeths government do in 1558?
Needed excellent credit rating and loans raised easily
Advise Cecil to relax law of usury by some interest and money was raised
What changed in 1571 (loans)?
Agreed on 10% interest charge on loans
What things did Elizabeth do for cost cutting?
Elizabeth stayed with courtiers and ministers on her progresses
Avoided war at all costs.
Rarely summoned parliament
How did Crown Lands contribute to Elizabeths crown income and finances?
Crown Land increase £86,000 to £111,000 but this is less of a gain than most noble
Didn’t use short term lease
Increase rents and much crown land on long term leases
How did Religious reforms contribute to Elizabeths crown income and finances?
Recusancy fines
Kept bishoprics vacant to gain their income.
How did Custom Duties contribute to Elizabeths crown income and finances?
Book of Rates
More imports subjected to tax. This increased imports- sometimes by 100%
What happened in the 1590s in relation to Custom Duties?
Brought in a figure that scarcely kept up with inflation
Only way to increase income was from trades and to put up rates
Instead smuggling occurred
How did Exports contribute to Elizabeths crown income and finances?
Woollen cloth counted for 81% exports as it was a new market.
Encouragement of dying and dressing (but this had little success)
How did Parliament contribute to Elizabeths crown income and finances?
Granted subsidies- £130,000 (less than Henry) but were reluctant to change.
How did Local Landowners contributed to Elizabeths crown income and finances?
Decreased real value of tax- couldn’t exploit them
What was the make up of Elizabeths ordinary income?
Revenue from crown lands
Custom duties
profits from justice and sources arising patronage
Raised parliamentary tax during emergency
High levels of taxation with faced resistance and unrest
How did inflation worsen over the years?
Worsened from1540 debasement
Increased food prices in 1560
Struggled to increase income- recoinage had limited success
Bad harvest- struggle to keep wages up
Who did Elizabeth blame for inflation?
Landowners
then
Bullion supplies
How did war in the Netherlands worsen income over the years?
- Netherlands war caused merchants to face restrictions from Antwerp market (due to Emden piracy)
- New world affected trade revenue from concessions
- Treaty of Nonsuch was costly during the war
- Trade embargos
How did the Spanish war worsen income over the years?
- Spanish war used saving for warfare costs
- War caused a crisis on supplies
How did the Irish unrest worsen income over the years?
Tyrone rebellion especially retained resources
How did administration worsen over the years?
Loans from Antwerp increased
Fall in the £ value
Reduced imports
Book of order in bad harvest- no grain to smuggle and corn was in small amounts
How did the last years affect Elizabeths economy?
JP’s had fixed wages
Manufacturing was further regulated
Poor laws meant government was increasingly intervening
What was Elizabeths finance policy in war?
She preferred attacking ships over war
Took billions of ships (e.g. Marde de Dias - took 77,000)
What was Elizabeths finance policy in Parliament?
Taxation
This went against typical monarch standards as she asked for money in the name of defence even when it wasn’t need.
What was Elizabeths finance policy in reducing costs?
Built no new palaces
Kept wages low that didn’t keep up with inflation
Unpaid officials
Refitted navy ships (instead of getting new ones)
Halved maintenance costs
Gave out monopolies as patronage
What was Elizabeths finance policy with the Lord Treasurer?
Not very initiative
Winchester was successful until death in 1572
Continued Mary’s reform (book of rates, revalued crown land, called in debts)
Left 600,000 crown lands from dissolution
Left jobs vacant
Played stock market
What was the state of Elizabeths debts by 1585?
Paid off Mary’s debts with 300,000 surplus
How was Ordinary Revenue allowed to stagnate?
Didn’t increase sale of Crown Land- to the point of giving some away, didn’t collect money from feudal dues, didn’t review book of rates, doesn’t collect owed debts.
How was Elizabeth and Cecil not very innovative?
Many landowners were more successful than Elizabeth (e.g. Bess of Hardwick increased resource).
Doesn’t reform parliamentary tax- being the lowest in Europe
Flawed and corrupt system as individual tax payer chose their amounts- rich paid little
What was the issue with William Cecil?
Wasn’t the right man- he was conservative, strictly followed instructions of reducing public expenditure- tightly holding onto government spending.
How was Robert Cecil more successful that William Cecil?
More effective
Raised selling prices of warships by four times the annual value of land
What were the economic issues in the 1590s?
War with Spain
monopolies- giving away rights to set prices- missing the potential profit and limit long term financial impact
Bad Harvest- can’t pay rents, landowners can’t pay for taxes
What was the issue with having unpaid officials?
Had little effort- making them inefficient.
Possibly stole, corrupted with bribes, oath of loyalty failed
How much debt did Elizabeth have at the end of her reign?
350,000 (common). Which is technically 50,000 due to Mary’s debt
What was the limitations of Crown income?
The crown income was no longer enough to live off of. Its ordinary revenue.
Tinkered a system past its sell by date.
Who else was to blame for the finances (other than Elizabeth)?
Other countries knew her wealthier countenances would not increase in the taxes to be paid.
Burghley and Leicester saw financial profit at the crowns expense
What caused crown debt?
Mostly due to war.
Because of this there was support and popularity, but English showed reluctance to financially support the war.
Not all sums Parliament granted were collected.
What was the issue with Feudal revenue?
It remained static at 1541 level
What economic issues were described as ‘bastard revenue’?
Perversion of royal rights from monopolies, forrest laws and ships.
What did the health of finance depend on?
How much people were willing to pay
What were the main successes of Elizabeths economy?
Paid off debts
Ended country’s dependence on foreign loans
Began to build reserves
Was able to fund wars without leaving significant debt
general praise on her expenditure
What was purveyances?
A royal privilege allowed royal officials to compel venders to sell goods and commodities to the government at predetermined prices, usually below market rates.
What crown purchases were made under purveyance?
Feeding courts
Equipping the army
Maintaining the navy
What were the risks of using purveyance?
Could be abused and corrupted
Paying often varied widely from actual market rates.
Bitter complaints against the government/
What were monopolies?
Granting exclusive rights to trade
Rewarded to courtiers but prevented competition
raised prices.
When was the State of Artificers?
1563
What was the main rule of State of Artificers?
Those under 30 and unmarried had to serve an employer. Everyone had to work on the land unless a scholar at sea/ skilled worker.
How was wages and hours enforced under the State of Artificers?
Wages were settled locally and announced by JP’s.
Hours of work enforced.
What was the significance of 7 year apprenticeships and casual day workers under the Act of Artificers?
7 year apprenticeships for who practiced crafts- didn’t stop people moving to look for work and the Act was difficult to enforce. Casual day labourers were also used and brought in as required.
What was the 1563 Alms Act?
Separated deserving poor with given poor rates.
People required to contribute to rates became compulsory. Could decide how much but if you gave nothing, you went to prison
What was the 1572 Poor Relief Act?
Compulsory contributions.
Begging had to be licensed or relief not provided. Those without were whipped and burnt on the ear.
What was the 1576 Act for Relief of the Poor?
Gained a license to beg if possessions/ particular needs were lost. Towns provided materials. Persistent beggars were sent the House of Corrections.
What was the 1598 Act of Relief for Poor?
Beginning became forbidden
Poor rates levied with a maximum set.
JP’s became overseers of the poor- providing materials to employable bodies.
What poor legislations were released in 1598 (other than Act of Relief for Poor)?
Act of Punishment of Rogue and Sturdy Beggars
What was the 1601 Act of Relief of the Poor?
Church provided for the poor to the ‘deserving’ and rejected the ‘undeserving’
What was the most outstanding financial achievement?
Recoinage by William Cecil in 1560-1561. Cecil was Lord Treasurer and had been working on this since Northumberland (Edward)
How much profit did the government get from recoinage?
£50,000
What is the main criticism of finance policies?
No real financial innovation.
What was the impact of recoinage?
restoration of confidence in the coinage and stabilised prices.
What financial policies reflect Elizabeths frugalness?
Household servants had to pay for their own breakfast (Cecil)
Expenditure on building projects fell to less that 10% of HVIII
Royal lands were sold to raise income (but lost her long term revenue)
What is a significant failure of the taxation policies?
Big omission. No attempt to update rents and taxes in line with inflation.
Examples of failing to update rents and taxes?
In suffolk in 1523, 17,000 taxpayers
1566 , 7,700 taxpayers (decreased by 50%)
Why was taxation so limited?
There was no oath of valuation after 1563, so land owners could lie.
What is the potential positive for Elizabeth not being too rigid with taxation?
there is no oath of valuation after 1563. So there was no spats from the nobility like Henry VII. Therefore, by the time there was little stability, there was still security in her relations
What coinage did Elizabeth debase?
the Irish coinage, but not the English
What did Elizabeth do to her properties?
Sold or gifted 7 palaces
Held down court salaries
Cut back on building on royal properties
What was the difference in tax yields during Elizabeth’s reign?
1559-1571 = £690,000 1589-1601 = £1.1 million
Why did tax yields only slightly increase in 1589-1601?
She had to ask for more subsidies, as the yield was falling. Greater resistance was at risk, causing lower yields.
What has the argument been surrounding the taxation policy and Cecil’s finance?
Not fit for purpose and did not keep up with inflation or expenditure as tax evasion was common.
Cecil has been argued as not innovative enough, but by the 1580s, stability was fragile, therefore not the tie to be innovative. Plus, Cecil had multiple roles, not helping the handleship of the exchequer.
How did the crown land sales change throughout her reign?
1560-1574 = £267,827
1589-1601 = £608,505
Net income from crown lands rose from £66 k to £88k per annum
How did Custom Revenue change throughout her reign?
Increased from £60k up to £85k per year thanks to Mary’s reform.
What was the fatal flaw of the tax collection?
Tax collectors were allowed to stereotype- showing a lack of variation in collection.
JP’s complained that the rich were rated too low
How were the Privy council hypocrites in 1576?
They ordered tax collectors to be a role model of tax paying, but Burghley evaded tax throughout the reign- paying the same the whole way through.
How much tax collection did Elizabeth do compared to other countries?
She did not increase collection leading up to the war. She collected 3% of national income, whilst Philip of Spain extracted 10%
