Topic 3: Crown Finance

·         Elizabethan finances left issues for James to deal with during the early part of his reign

o   Elizabeth I had inherited a Crown debt of over £250,000, but did not support raising taxes

o   The money that was granted to her was collected by local gentry who often kept a portion of what they collected

o   Fearing a loss of support, Elizabeth allowed the rich to assess their own contribution, which was often small and disproportionate to their wealth

o   A series of poor harvests in the 1590s had a further negative impact on the economy

o   Food prices went up by about 75%, but agricultural wages fell

o   James inherited a Crown debt of around £100,00

·         Finance under James I, 1603-1625, was generally weak

o   The peace with Spain in 1604 under the Treaty of London reduced Crown expenditure

o   James spent extravagantly on his court: £3,300 on ante-suppers, gave at least £100,000 to his Scottish courtiers between 1606-1611

o   There was a new land survey in 1608 called the Book of Bounty. This was intended to maximise profit by revising leasing policies of these lands, but was hindered by ineffective bureaucracy and James’ tendency to gift land

o   In November 1608, James pledged to stop giving gifts of land

o   The 1608 Book of Rates, made by Robert Cecil, outlined and added customs duties and impositions so that the Crown could use its prerogative over these duties to maximise profit. This was effective, since it brought earnings in line with inflation, up to £700,000, but was also resented as a show of royal prerogative

o   In 1609 James pledged not to give any gifts or pensions without Cecil’s agreement

·         At the start of the 1610 Parliament, Crown debt was declared at £280,000.

§  However, Cecil’s request for a subsidy to cover this was rejected outright.

§  The 1610 Parliament and Cecil produced the Great Contract, which would have allowed James an annual grant of £200,000 in exchange for him giving up certain feudal rights, like prerogative income from wardship, and at Parliament’s continued hesitation, any levies on further impositions.

§   However, Parliament’s intense suspicion of James’ proposals led to the collapse of these discussions. James dissolved Parliament following this.

o   In 1611, James created the new hereditary title of ‘baronet’ and sold it for £1095.…