James 1- Financial system issues Flashcards
Why did James not have enough income in 1603?
The amount of money risen through subsidies had decreased largely (Duke of Buckingham whose income was 400,000 a year was assessed at only 400 pounds. Furthermore inflation had meant James could afford a fifth of what Elizabeth could have with the same subsidy.
How much money was owed in 1603
Had an immediate debt of 420 thousand pounds carrying over from the Elizabethan reign. 300 thousand of this being granted by parliament, and the rest of the money was owed to landowners who had long given up the hope of it being re-payed.
Why did James insist on giving lavish gifts to his friends
James had been emotionally insecure from a young child due to his troubled up-bringing. He was unable to accept that people could like him for his personality and thus insisted on continuously presenting lavish gifts to his Friends. James hosted expensive parties, events and banquets which often cost over 3000 pounds. James was giving away 80,000 a year instead of 30,000 under Elizabeth.
What issues did James’ extravagance bring about
Pushed James into substantial amounts of debt while also meant that it cloaked the real issue of the lack of regular income. As MPs witnessed James’ excessive spending they were able to argue that if he was more frugal them there would be no issues. Created large tensions between James and parliament
Give the three main ways James raised money at the start of his reign
Crown lands
Customs revenue
Wardship
How did James raise money through customs revenue
Was very important for James, by 1621 had created three times more than crown lands.
Tonnage and poundage was key (taxes on imports and exports) More important it allowed James to farm out collections to a syndicate of merchants who would do it for him. This created allies who would provide loans to James when he needed it. It also provided a constant revenue for him.
How did James raise money through Wardships
Crown would take over estates after the death of its owner and until an heir came of age etc. This allowed James to raise about 65,000 to the crown in 1610
What financial problems were not responsible to James
In Ireland between 1603 and 1608, 600,000 was spent on the army. In addition there was expenditure to maintain English garrisons in the Netherlands. It was not the Kings fault these had been parliaments finances had been so poorly spent. Many in parliament refused to account for inflation and falling value of subsidy when complaining at James. Furthermore the system of revenue for the crown was riddled with corruption
What was the issues of taxation within the country and how did they effect the Kings finances
Corruption was rife and it, high up figures such as Lionel Cranfield and Buckingham paid virtually no tax despite their great incomes. Major landowners refused to take responsibility for the share of costs with running the country. Parliament were not reliable in providing sufficient taxation.
What was the great contract
Scheme suggested by Salisbury in 1610. In return for an annual grant on 200,000 from parliament and a one off payment to clear debts, Salisbury proposed to abolish wardships, purveyance and the feudal tenures.
Why did the great contract fail
Many Mp’s disliked the idea of funding the kings extravagance. Also uncertainty on how the funds would be raised. The surrender of Wardships was also a great loss to the monarchy as it gave them a quick and easy way of paying off debts.
What were the fundamental disagreements between parliament and James in terms of finance
- James needed money, however parliament was reluctant to do so
- Commons were critical of James’ spending habits and refused to fund his extravagance
- James was angered over this as he believed parliament were there merely to advise, so as such should provide him money whenever he asks
- These were the main sources of conflict
