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.