James - Finance Flashcards
How much was the Royal Debt when James became King of England?
£420,000.
What was the Size of the grant James received from Parliament in 1601?
£300,000
What large expense did James have to deal with initially?
The costs of Elizabeth’s Funeral.
List the 4 main reasons James had financial issues:
1) Debt.
2) Inflation.
3) Extravagance.
4) Declining Value of the Subsidy.
When did Inflation rise suddenly?
Inflation rose considerably under the Tudors in the 1500’s.
What was the Subsidy?
A tax controlled by Parliament which was designed for emergencies such as war. Parliament had to authorise the collection of the Subsidy.
Why was the Subsidy declining in value?
1) Inflation.
2) The amount of tax people had to pay was valued by their neighbours, as such the value of property and possessions were often undervalued.
How much was the Subsidy worth under Elizabeth?
£137,000
How much was the Subsidy worth under James?
£72,500. (Almost half of what Elizabeth received)
Why was Inflation a big issue for James?
Because he was already getting a reduced income, and Inflation made this lower sum of money have less spending power, since prices had risen.
Why was James extravagant?
Because he had a very harsh upbringing and needed to retain friends and people around him by giving them large gifts and titles.
What was an anti-feast?
When James would organise a feast with expensive food and then throw it out and replace it with new food, just to show the fact he was rich.
How much did James spend on his daughters wedding and Sons funeral?
£116,000
What was a Customs Farm?
A contract was awarded to a company to collect the custom duties on behalf of the crown. The company would pay the King an annual income and they got to keep any profits.
Why were customs farms good for James?
1) Removed logistical issue of collecting tax.
2) Increased his income by £12,000 compared to Elizabeth.
3) Provided James with a regular income so he could
better manage his finances.
Why were customs farms bad for James?
1) As Trade Increased the amount of profits the custom farmers received increased, but the fixed income James received, remained fixed. This meant the contract had to be renegotiated.
2) Money was lost to the company which the crown could have received.
When was the new book of rates issued?
1604
What was contained in the new book of rates?
The prices of commodities and how much they could be taxed.
What were the positives about the New book of rates?
1) Raised £70,000 a year.
2) Allowed value of commodities to be updated for new trading conditions.
Why were Merchants upset about the New Book of Rates?
Because the old book had existed since 1558, so the new system was more expensive and took time to get used to.
Who was involved in the Bates Case?
John Bates.
Which Court was the Bates case heard in?
The court of the Exchequer.
When was the Bates case?
1606
Who was John Bates?
A merchant for the Levant Company.
What was the Bates Case?
John Bates refused to pay custom duties on currants being imported from the Levant. He lost the case and James was allowed to impose taxation on individual goods.
