T5: How important were Wiliam’s wars in the development of a financial revolution? Flashcards
when was the Nine Years War?
1688-97
how did William annoy Parliament with the Nine Years War?
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.
how many troops did William commit to the 9yrs war?
thousands
what evidence is there for Parl not supporting the 9 years war?
after 1691 voted for funding only 10,000 troops
why were merchants unhappy with the war?
trade disrupted
how did William make up numbers to fight in the war?
1695 - recruited 68,000 men at a cost of £2.8 mill (borrowed from Bank of England)
how much did William spend on recruiting soldiers in 1695?
£2.8 million
how many men did William recruit in 1695?
68,000
when did William borrow money from the Bank of England to recruit troops?
1695
how much was gov debt by the end of the war?
£17 million
when was peace reached in the 9 yrs war?
Sep 1697
why did the 9rs war end?
both sides bankrupt, peace reached with Treaty of Ryswick
what was Williams expenditure vs tax revenue?
£5.4 million expenditure
£3.6 million tax revenue
what tax did Parliament grant to William and when?
Land Tax granted 1692
what proportion of tax revenue did the land tax generate?
about 1/3
stat for land tax revenue?
land tax generated £1 million in 1692
who paid the Land Tax?
mostly landed elite
did the landed elite approve of the war, how do we know?
mostly yes - shown in efficient collection of Land Tax
why was an administrative revolution needed?
because so much taxation - needed to be processed
what was created in 1692?
the national debt
when was the national debt created?
1692
how was the national debt created?
crown took out long-term loans from merchants and city traders, repaid with interest
was the national debt secure? why?
yes- underwritten by Parliament so lenders trusted it would be repaid
how much was the national debt by 1698?
£16.7 million
how much of the crowns annual revenue did repayment of national debt take up?
30%
what 1697 act was also part of the restructuring of gov finances?
the Civil List Act
what did increasing concerns over how money was being spent on the war lead to?
Parliamentary commissions set up to investigate gov expenditure
what did the Parliamentary commission do to determine whether money was being spent well?
- interrogated ministers
- looked at government papers
- published reports which often exposed corruption or waste
did William mind the Parliamentary commissions to investigate gov expenditure?
no - even suggested his accounts be inspected - thought he would be granted more taxation for his wars
what would the Parl commission do with their findings?
publish reports which often exposed corruption or waste
what law set up a commission responsible to Parliament?
Public Accounts Act 1690
when was the Public Accounts Act?
1690
how long did the Public Accounts Act last?
renewed every year 1691-7 until William blocked it
how did William respond to the commissions suggestions?
adopted many of their suggestions e.g. reassessing size of army and navy
why did William not initially mind the commissions?
thought he would be granted more taxation for wars if he cooperated
why did the commission lose some of its impact?
became more about attacking unfavourable gov ministers
when did the commissions lose some of their impact?
later in the 1690s
who came up with the Bank of England?
Whig Chancellor Montagu
when was the Bank of England created?
1694
what act created the Bank of England?
1694 Tonnage Act
what was the aim of the creation of the BofE?
to increase long-term borrowing
what did the Tonnage Act do?
- created BofE
- investors incorporated as the BofE
- loan of £1.2 mill at 8% interest rate
why was the BofE a good model?
- 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
why were investors more willing to deposit money in Bank rather than loan directly to Crown?
BofE was an institution that would survive individuals - trusted they would get their money back
what was the proportion of long term loans to short term loans like?
long-term loans were less than half the money borrowed in the 1690s
why had the value of coins decreased?
coin clipping
what was introduced as a result of coin clipping?
the Recoinage Act 1695
what did the Recoinage Act do and what was the impact?
coins recalled and new coins struck- restored trust in economy for a couple of years only
when was the Recoinage Act?
1695
