Phillip: Economy

Question 1

How much debt did Phillip inherit?

Answer 1

20 Million Ducats, and 50 million ducats of Juros

Question 2

Why did Castile bare the load of financing Spain?

Answer 2

Sicily, Naples, Milan and the Low Countries were unwilling to contribute when their own interests were not directly involved

Question 3

What were the 3 biggest issues for Spain in terms of finance?

Answer 3

1. The Council of Finance lacked expertise
2. They lacked a State bank, so had to rely on financiers
3. They had to give up monopolies to these banking families

Question 4

What did the Genoese get in return for their finance?

Answer 4

A monopoly on selling playing cards in Spain and control of the Andalusian Salt Works

Question 5

What did the Fuggers get in return for their finance?

Answer 5

they were placed in charge of the Mercury mines of Almaden and the silver mines of Guadalcanal. They were also granted the property of the military orders

Question 6

Why was getting money to the Low Countries so challenging?

Answer 6

English Privateering

Question 7

How many Ducats were transported to the Duke of Alva through France in 1572

Answer 7

500,000

Question 8

Why were the Mesta still so powerful in the late 1500’s

Answer 8

Wool was still the primary export

Question 9

What did the lack of fertile land and money lead to?

Answer 9

Reliance on imported grain

Question 10

What was the growth rate in royal income between 1559 and the 1590’s?

Answer 10

Triple, from 3 to 10 million Ducats

Question 11

Give 3 examples of the Spanish Crown using taxes to secure more funds

Answer 11

1. The tax increase between 1556-1570, which was 50% and the tax increase between 1570-1600, which was 90%
2. Cruzada tax being quadrupled
3. Alcabala tax rising by 14%

Question 12

What was the most important tax to spain’s economy?

Answer 12

The Alcabala tax

Question 13

What percent of the crowns income was from the church by the 1590’s?

Answer 13

20%

Question 14

I)What was an “Asientos”, and

II)how much money did they amount to?

Answer 14

I) A loan contract

II) 1 million Ducats

Question 15

Give 2 new taxes that Phillip brought in

Answer 15

Excusado, a tax on property (Church allowed)

Millones, a tax on meant, wine, oil and vinegar (Cortes allowed. this was supposed to be temporary but became permanent)

Question 16

How much did the Millones amount to over 10 years?

Answer 16

8 Million Ducats

Question 17

How many state bankruptcies were there between 1550 and 1600?

Answer 17

4. 1557, 1560, 1576 and - the worst one - 1596

Question 18

What did the government do about the mounting debt?

Answer 18

They turned short term, high interest loans into long term, low interest loans. The interest on these loans was absorbing half of the Crown’s income per year; 5.5 Million Ducats)

Question 19

How much debt was Spain in by the time of Phillips death in 1598?

Answer 19

85 Million Ducats

Question 20

I) What was the largest source of expenditure for the crown?

II) Cite 5 figures to justify this.

Answer 20

I) Warfare
II)
- Military campaigns were costing 700,000 Ducats per month

• Castile paid 18.5 Million Ducats for the Dutch and Mediterranean campaigns in 1571 alone
• The Armada campaign cost 900,000 Ducats per month
• Prince of Parma spent 21 Million in the Low Countries as Governor
• In the last years of his reign, Phillip spent 30 Million Ducats in France

Question 21

What percentage of the minerals mined in the New World was Castile entitled to?

Answer 21

20%, or 1/5th