T5: How important were Wiliam’s wars in the development of a financial revolution?

Question 1

when was the Nine Years War?

Answer 1

1688-97

Question 2

how did William annoy Parliament with the Nine Years War?

Answer 2

used royal prerogative on foreign policy to make ley decisions- committed thousands of troops and vast amounts of money. also poor performances and foreign commanders.

Question 3

how many troops did William commit to the 9yrs war?

Answer 3

thousands

Question 4

what evidence is there for Parl not supporting the 9 years war?

Answer 4

after 1691 voted for funding only 10,000 troops

Question 5

why were merchants unhappy with the war?

Answer 5

trade disrupted

Question 6

how did William make up numbers to fight in the war?

Answer 6

1695 - recruited 68,000 men at a cost of £2.8 mill (borrowed from Bank of England)

Question 7

how much did William spend on recruiting soldiers in 1695?

Answer 7

£2.8 million

Question 8

how many men did William recruit in 1695?

Answer 8

68,000

Question 9

when did William borrow money from the Bank of England to recruit troops?

Answer 9

1695

Question 10

how much was gov debt by the end of the war?

Answer 10

£17 million

Question 11

when was peace reached in the 9 yrs war?

Answer 11

Sep 1697

Question 12

why did the 9rs war end?

Answer 12

both sides bankrupt, peace reached with Treaty of Ryswick

Question 13

what was Williams expenditure vs tax revenue?

Answer 13

£5.4 million expenditure
£3.6 million tax revenue

Question 14

what tax did Parliament grant to William and when?

Answer 14

Land Tax granted 1692

Question 15

what proportion of tax revenue did the land tax generate?

Answer 15

about 1/3

Question 16

stat for land tax revenue?

Answer 16

land tax generated £1 million in 1692

Question 17

who paid the Land Tax?

Answer 17

mostly landed elite

Question 18

did the landed elite approve of the war, how do we know?

Answer 18

mostly yes - shown in efficient collection of Land Tax

Question 19

why was an administrative revolution needed?

Answer 19

because so much taxation - needed to be processed

Question 20

what was created in 1692?

Answer 20

the national debt

Question 21

when was the national debt created?

Answer 21

1692

Question 22

how was the national debt created?

Answer 22

crown took out long-term loans from merchants and city traders, repaid with interest

Question 23

was the national debt secure? why?

Answer 23

yes- underwritten by Parliament so lenders trusted it would be repaid

Question 24

how much was the national debt by 1698?

Answer 24

£16.7 million

Question 25

how much of the crowns annual revenue did repayment of national debt take up?

Answer 25

30%

Question 26

what 1697 act was also part of the restructuring of gov finances?

Answer 26

the Civil List Act

Question 27

what did increasing concerns over how money was being spent on the war lead to?

Answer 27

Parliamentary commissions set up to investigate gov expenditure

Question 28

what did the Parliamentary commission do to determine whether money was being spent well?

Answer 28

• interrogated ministers
• looked at government papers
• published reports which often exposed corruption or waste

Question 29

did William mind the Parliamentary commissions to investigate gov expenditure?

Answer 29

no - even suggested his accounts be inspected - thought he would be granted more taxation for his wars

Question 30

what would the Parl commission do with their findings?

Answer 30

publish reports which often exposed corruption or waste

Question 31

what law set up a commission responsible to Parliament?

Answer 31

Public Accounts Act 1690

Question 32

when was the Public Accounts Act?

Answer 32

1690

Question 33

how long did the Public Accounts Act last?

Answer 33

renewed every year 1691-7 until William blocked it

Question 34

how did William respond to the commissions suggestions?

Answer 34

adopted many of their suggestions e.g. reassessing size of army and navy

Question 35

why did William not initially mind the commissions?

Answer 35

thought he would be granted more taxation for wars if he cooperated

Question 36

why did the commission lose some of its impact?

Answer 36

became more about attacking unfavourable gov ministers

Question 37

when did the commissions lose some of their impact?

Answer 37

later in the 1690s

Question 38

who came up with the Bank of England?

Answer 38

Whig Chancellor Montagu

Question 39

when was the Bank of England created?

Answer 39

1694

Question 39

what act created the Bank of England?

Answer 39

1694 Tonnage Act

Question 39

what was the aim of the creation of the BofE?

Answer 39

to increase long-term borrowing

Question 40

what did the Tonnage Act do?

Answer 40

• created BofE
• investors incorporated as the BofE
• loan of £1.2 mill at 8% interest rate

Question 41

why was the BofE a good model?

Answer 41

• attracted lots of investors who could deposit small amounts, and then Crown could borrow from one place
• attractive to investors - more trust in the Bank than directly to the Crown

Question 42

why were investors more willing to deposit money in Bank rather than loan directly to Crown?

Answer 42

BofE was an institution that would survive individuals - trusted they would get their money back

Question 43

what was the proportion of long term loans to short term loans like?

Answer 43

long-term loans were less than half the money borrowed in the 1690s

Question 44

why had the value of coins decreased?

Answer 44

coin clipping

Question 45

what was introduced as a result of coin clipping?

Answer 45

the Recoinage Act 1695

Question 46

what did the Recoinage Act do and what was the impact?

Answer 46

coins recalled and new coins struck- restored trust in economy for a couple of years only

Question 47

when was the Recoinage Act?

Answer 47

1695