Restoration of Royal Finances Flashcards
What were the three ways that Henry used to attempt to achieve strong royal finances?
- Reorganise financial administration.
- Exploit sources of ordinary revenue.
- Increase income from extraordinary revenue.
How poor was Henry’s financial situation upon taking the throne?
- £11,700 in first year, compared to Richard III, who received £29,000.
- He had to take out loans to pay for his coronation and marriage.
- In 1487, there was not enough money to pay for celebrations at Windsor for the feast of St George.
How did Henry change the organisation of finance from the system implemented by Edward IV?
Reverted back to the Exchequer, rather than the Chamber system but soon realised that this system had its limitations so restored use of the Chamber system. This placed a higher importance on the Treasurer and officials such as the Gentlemen of the Bedchamber.
What were the central magaging roles of the Chamber system?
- Feudal dues.
- Crown lands.
- Profits from justice.
- The French Pension.
Handled all income except custom duties, which remained under the Exchequer.
What was the French Pension?
Part of the Treaty of Étaples in 1492. Henry was promised £159,000 to cover the cost of the war, paid in annual amounts of about £5000.
What was ordinary revenue?
Came in yearly from crown lands, customs and profits from justice and feudal dues.
What was extraordinary revenue?
Not regular - usually raised in times of need from taxation or, in times of emergency, borrowing.
What was the most important source of ordinary revenue and why?
Crown lands: Maximised income from existing lands, but also increased the amount of land that the crown held. Achieved through Act of Resumption and seizure of land from traitors.
How did Henry avoid antagonising the nobility when reclaiming land?
He did not take back all the land that he was entitled to.
By how much did profits from custom duties decrease from the reign of Edward IV and why?
£70,000 per annum to £40,000
Smuggling was an issue and the income from trade depended heavily upon the relationship between European powers, which Henry was unable to control.
How did Henry exploit profits from justice?
He often punished by fines rather than imprisonment, such as with the Cornish rebels or the Earl of Northumberland, who was fined £10,000 for raping a royal ward.
What was the profit increase from Henry’s exploitation of feudal dues?
£350 per annum in 1487; £6000 per annum in 1507.
What was the most frequent source of extraordinary income?
Parliamentary taxation. Henry did not misuse this source or means of raising money. He was cautious in his demands after the Yorkshire and Cornish rebellions.
Why did Henry never successfully tap the wealth of the country?
Taxation was based on out of date assessments of wealth.
What were benevolences? Give one example of when they were used.
Forced loans where there was no repayment. Often, subjects were asked to help as a sign of support at a time of crisis. It was used in 1491 to raise money for an expedition against France, bringing in £48,500. It could not be used on a regular basis as it would provoke resentment.
