the financial settlement of 1690s

Question 1

what was Williams primary goal in seeking the English throne

Answer 1

• bring England into his war against catholic France
• the war that would later become known as the nine years war

Question 2

what was the revolutionary impact of William’s war

Answer 2

• brought the English throne a man whose prime aims were centred in Europe
• William was committed to curbing French power since Louis XIV’s France was a major threat European peace

Question 3

when did the dutch formally declare war on France + what did England do in response

Answer 3

• in Feb 1689
• In May, England joined the growing alliance of European states against the French

Question 4

how was William distracted from the organising of the Grand Alliance

Answer 4

• he was wrangling politicians in the convention parliament
• by Ireland

Question 5

when did James land in south-west Ireland

Answer 5

March 1689

Question 6

why did William have to act against James in Ireland

Answer 6

in order to prevent Ireland from becoming a base from which the French could invade England

Question 7

what was the turning point in the re-conquest of Ireland + when did William defeat the Jacobites

Answer 7

• William’s personal intervention at the Battle of Boyne (July 1690)
• William defeated the Jacobites in Ireland in the following year

Question 8

how many years did William spend on the campaign and what did he do

Answer 8

• spent 6 years in the campaign
• making many key strategic decisions

Question 9

what was William concerned about involving the nine year war

Answer 9

• concerned with ensuring that France wasn’t able to dominate
• balance was restored to European politics

Question 10

what did William’s involvement in the campaign in the nine years war mark + how was William taking a risk

Answer 10

• marked a complete transformation in the British foreign policy
• William was taking a risk by committing millions of pounds and thousands of troops to the war effort

Question 11

why did strains between parliament and William increase vastly during the Nine Years war

Answer 11

as the huge sums he was demanding to fund the war had never been approved by a parliament before

Question 12

how much was the average annual expenditure in the Nine Years war

Answer 12

£5.4million

Question 13

how much was the average tax revenue in the nine years war

Answer 13

£3.6million

Question 14

how much was the gap between royal income and expenditure between 1688-1702

Answer 14

£11.3million

Question 15

why was borrowing essential for William during the Nine Years war

Answer 15

• French war
• inadequate provisions in the initial financial settlement of 1689

Question 16

what did royal ministers and servants develop during the war + what was the reaction of the public

Answer 16

• developed innovative new taxes
• they were actually paid as the public view them as legitimate

Question 17

why did the commons establish the commission of public accounts

Answer 17

• to monitor how the revenues were being spent by the crown
• insert appropriations in its supply bills and directed how revenue it raised was to be used for specific purposes

Question 18

what did the increased parliamentary control of revenue help to ensure + how

Answer 18

• ensured the success of the Bank of England
• as investors in the bank could be confident that their loans to the government would be repaid by parliamentary taxation appropriated for that purpose

Question 19

why did the King agree to the establishment of the commission of public accounts

Answer 19

he needed parliament to continue to supply funds for the war against France

Question 20

what did the commission of public accounts allow for

Answer 20

greater parliamentary scrutiny of government spending

Question 21

what became common practice for parliament in 1690-91

Answer 21

• to appropriate many grants of money to specific uses
• no longer possible for the King’s ministers to siphon off money from the war effort for other things

Question 22

how much did parliament authorise Williams government to borrow in jan 1693

Answer 22

£1million

Question 23

how was money raised under the million act

Answer 23

• by the device of a tontine
• those who invested were to each year share a payment of £70,000
• as each investor died, the money would be dived between fewer investors

Question 24

where did investors confidence for the Million act come from

Answer 24

• parliament were acting as the guarantor of repayment
• gave investors confidence that they would get their money back as the parliament could introduce taxes to raise money to fund the annual payments

Question 25

what did the million lottery offer

Answer 25

• offered 100,000 tickets at £10
• least prize being £1 per annum for sixteen years
• best prize was £1000 per annum

Question 26

where did investors confidence for the Million lottery come from

Answer 26

investors confidence came from the fact that parliament was acting as the guarantor of repayment

Question 27

what happened under the tonnage act of 1694

Answer 27

parliament borrowed £1.2million at 8% interest

Question 28

where did investors confidence for the the tonnage act of 1964 come from

Answer 28

investors confidence came from the fact that parliament was acting as the guarantor of repayment

Question 29

what were investors incorporated as

Answer 29

as the owners of a new institution, the Bank of England, which was to act as a banker to the government

Question 30

what did the legislation of 1693-4 mean

Answer 30

• kings debt became the national debt
• parliamentary guarantees were established as the basis of government borrowing which meant that investors were much more willing to lend money to the parliament

Question 31

what was necessary to service the national debt + what did this mean

Answer 31

• regular parliaments
• meant a further limitation on the crown’s power to call and dismiss parliament at will

Question 32

what was voted for William in 1698

Answer 32

• a number of revenues for life
• designed to bring in £700,000 a year which was meant to cover the civil list

Question 33

what did the civil list pay for

Answer 33

expenses of Williams government

Question 34

what was the result of William giving an revenue adequate only for his civil expenditure

Answer 34

parliament now tactically accepted responsibility for all army and navy expenditure in wartime and peacetime

Question 35

why were annual sessions continued to be held in peacetime

Answer 35

as MPs were only prepared to vote supplies for the army and the navy on a year-by-year basis

Question 36

what did the financial settlement ensure

Answer 36

• crown’s ability to control finance was seriously constrained
• funding for the navy and army was closely controlled by parliament

Question 37

what did the creation of the Bank of England in 1694 represent

Answer 37

represented a victory for those who supported the unlimited possibilities of economic growth based on a system of credit