JAMES FINANCE

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FINANCIAL PROBLEMS

Patronage was a crucial element in the contemporary political system; James needed to distribute material goods to gain loyalities

Extravagance: 1603-12: He spent £185k on jewels and by 1614 had spent £522 (conspicuous consumption)

War with Spain had endedin 1604 but military costs rose due to financing the army in Ireland (£600k)

The system in which the crown recieved money was corrupt as officals siphoned money

People due to pay parliamentary subsides undervalued themselves = supply suffered from self interest

MPs ignored the rise in inflation + the fall in the value of the subsidy and blamed financial difficutlies on extravagance

At peace times the crown should not recieve additional help from P subsidies (live off on ones own)

James was driven to rely on City Loans for ordinary expenditure

As gov. costs increased, due to inflation + extravagance, pressure for administrative reform increased - partly due to increasing cost of warfare, driving the crown to resort to extraordinary financial measures (ei. forced loans)

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ORDINARY REVENUE

1) CROWNS LAND

Form of patronage whch gradually became insignificant

Elizabeth had sold £800k worth = difficult to maximise profits due to long leases and low rents

Lord Treasurers would sell CL to raise money in financial crisis

2) CUSTOMS REVENUE

Tonnage + Poundage usualy given to king by parliament for life

1604- farmed to a syndicate of merchants which gave crown annual income + source of patronage + advisory group for loans. The new efficency of customs collection created a new indirect tax, which threatened parliament's control over taxation

1621- bringing in x3 more than crown lands

3) PURVERYANCE + WARDSHIP

The right for the court to buy provisions at a low fixed price; corrupt officals bought excess to sell

Estates of a minor would be managed until the heir came of age/ paid for rights

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ATTEMPTS TO INCREASE CROWN REVENUE

1) The abuse of purveyance raised a petition to James and the Lords suggested it should be exchanged for £50k, although the common's suggested £200k- it was not worth the exchaneg for James, who did issue a proclaimation again the abuse of purveyance

2) Selling of honor devalued them and allowed rank to fall into popular disrepute and destroyed a form of patronage

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CECIL

First systematic attempt to curb expenditure and increase royal revenue

BATES CASE 1606: John Bates refused to pay a customs duty not sanctioned by parliament and the judges found in the king's favour.

1608- BOOK OF BOUNTY: Prohbited the crown from giving away major land items and was desgined to lower the expectation of courtiers but James gave cash instead

1608- BOOK OF RATES: Levied impositions on 1400 items.. The Commos raised a petition against this in 1610, due to it causing commerical damage

had to resort to selling crown lands and established deficit borrowing

the highest source of crown loans between 1603-1621 was city loans. in 1608- a loan was being negociated largely because of the loan of 1604 (£69k) was being repaid

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GREAT CONTRACT1610 - CECIL

Cecil proposed to get rid of wardship and purveryance in return for £600k to clear the crown's debt and £200k annually

The commons also wanted a separate bill which leaglised impositions made before the Bates Case and probihitted new ones being made without parliamentary sanction

PROBLEMS:

  • crown could only recieve a net gain of £85k
  • the commons wanted to abolish other sources of revenue
  • commons not sure if king would continue collecting them

 the contract failed due to mistrust

the debt reduced from £600k by selling £400k worth of crown lands

after the death of cecil, the treasury was replaced for 2 years by a commitee and Suffolk was made LT in 1614- there was a wide spread selling of offices and increased corruption. He was dismissed + convicted of embezzlement

the debt stood at £900k in 1618

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COCKAYNE SCHEME

This was an ill considered cloth trade

William Cockayne wanted to get into the Monopoly of the Merchant Adventures and convinced James to prohibit the exporting of unfinished cloth, saying it would increase employment and customs revenue

He didn't have enough resources/links to do this properly and by 1616 exporting decreased by 1/3

The king sold back the rights to the monopoly to The Merchant Adventurers for £10k

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PARLIAMENT 1621-24

In 1621 there was concern for the Palatinate and possibility for war = James had to call parliament for a quick supply but they onyl granted him £140k. They then turned to domestic greivances (monopolies) as by 1621 there was over 100

Cranfeild + Coke used this as an opportunity to attack Bacon, who has issued some patents and was responsible for their misuse. He was accused oftaking bribes and imprisioned

When James proposed an adjournment they were scared of dissolution especially during the probelms with Fredrick.

Parliament was invited to discuss FP and suggested Charles should marry a protestant, to which James reacted agressively, saying it was an infringement of his rights; they said they had the right to free speech. Parliament entered a Protestation into their journel defending them and james ordered for it to be teared out - they were dissolved

in 1624 they were invited to discuss FP again (out of their jurisdiction) and approved war but not the sum needed (gave £300k)

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CRANFEILD

Promoted by Buckingham until 1624 when he supported the Hapburgs and was impeached

Reduced household expenditure from £77k to £18k

Reduced weaponary from £34k to £14k

Achieved these through attacking waste, accurate budgeting and accounting + eliminating corrupt officals

Major economies couldn't be achieved without attacking the vested interests of officals, which created opposition

BOOK OF BOUNTY 1619 & 21: Demanded immediate stop to payment of pensions and new grants should be screened by him

existing sources of revenue could be exploited effectively but he failed to reduce pensions

he refused to sell crown lands thinking it reduced the authority of the crown

1622 & 1623: 2 forced loans ordered

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BUCKINGHAM + HOWARDS

He dominated offices and caused terrible harmony between the king and commons

He increased control over the direction of policy and patronage and was largely extravagant

After 1625 he carelessly encouraged Christianity

1626- Impeached

Reform was a political weapon against the Howards who gained control after 1610- this was a period which marked a temporary collapse of effective reform measures (ex. overbury scandal)

James had to borrow from courtiers and the Howards blocked concessions on greivances in the 1614 Addled Parliment- which didn't pass any legislations or subsidies

Due to bad role credit, the city didn't give any loans - in 1614 they gave a gift of £10k rather than a grant of £100k

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WAR

War needs were a important cataylst for political change; it necessitated the establishment of a strong and efficent central executive system

James believed he could play the role of mediator on the continent and didn't align himself with Catholics or Protestants- he hoped the marriage of his daughter with Fredrick woudl balance a Catholic marriage for Charles

Spanish Match = key stone of FP. James knew Spain shouldn't be kept isolated and kept diplomatic channels open in order to influence crisis'

After Fredrick accepted Bohemia he continued with this policy, depsite the preassure from advisors like Abott.

He didn't abandon diplomatic channels with Spain and did allow himself to consider the prospect of going to war with them

a permanent solution to financial problems had to be one approved by parliament; James pacificus policy didn't rule out the need for war if diplomacy failed.

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MAIN PROBLEM

The Stuart kings lacked a professional bureaucracy

Under Elizabeth- offical's were poorly paid, causing bribery and corruption to become normal

Local gov. was run by rulers of county communities and weren't responsive to monarch's wishes

They didn't have a professional army to enforce order

Royal revenue was unable to meet increasing demand for it

There was a great deal of power against reform due to vested interests

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