James I and finance

how much debt did Elizabeth leave James

£42,000

which was significantly more than the annual crown income

what was the main parliamentary tax

subsidies

what was a subsidy

a grant of money from parliament based on the value of the tax payers property in land or goods

when could subsidies be collected

only when parliament agreed, and was meant to be for emergencies such as war

why were subsidies not ideal for James

the value of subsidies collected decreased compared to when Elizabeth was in power and inflation increased

why did subsidies decrease

householders who paid it were assessed by commission that were made up of their neighbours, so possessions were under valued

example of possessions being undervalued

Duke of Buckingham had an income of 400,000 but was assessed at 400

how did James contribute to his financial problems

he was emotionally insecure and felt as though he could only be maintain friendship through gifts, resulting in overspending

example of James’ extravagance

a whole lavish supper would be brought out and then discarded before the actual supper was brought out

how much did James spend on jewels in nine years

185,000 pounds

what is a justification for James’ extravagant spending

he had two households, with children, whereas Elizabeth only had one household with no children

evidence that, although he had two households to cover, James was an unnecessarily extravagant spender

• his son was given an elaborate funeral

• his son’s expenditure increased tenfold over ten years

• he paid for his daughters lavish wedding, costing 116,000

what were customs duties

charges on selected imports and exports known as ‘tonnage and poundage’ from their origins of taxes on wine and dry goods

how much came from customs duties in the 1580s

a third

how did the Earl of Dorset and Robert Cecil increase income from trade

• sold the right to collect duties for a fixed price

• therefore made fixed income from trade

what was a disadvantage of selling the right to collect customs

if there was a boom in trade the monarch would miss out and others would make a big profit

shown by Great Farm of Customs, lease went from 110,000 to 140,000 due to how much they were making

example of how Salisbury increase income

• followed up on owing subsidy collectors

• managed crown lands better by introducing higher entry fines for tenants when they took on leases

• curbed generosity by introducing a Book of Bounty, where lists of grants were written. those interested could apply through the exchequer

• introduced a new title that he could sell

why did Salisbury want to find permanent income for the King

inflation was continuing to erode the value of his income and Salisbury was concerned that there was no reserve fund for emergencies

evidence that James was disturbed by the money he was spending

when shown his request for 20,000 in cash he quickly amended it to 3000

terms of the Great Contract

• parliament should pay off royal debts

• parliament should agree to give James 200,000 each year

• in return Salisbury offered concessions on wardships, an end to purveyance and some legal privileges

what was parliament’s view on taxes

• no war that money needed for

• King was too generous

• extra taxes only needed if national interest demanded them

what did parliament agree to in regard to the Great Contract

• annual levy of 200,00

• NOT to any compensation for the lost revenue from the Court of Wards

• NO discussion of royal debt

why did MP numbers drop after the summer break

at home, MPs saw the growing reluctance to pay an annual tax and did not want to shoulder the blame for agreeing to extra taxes

what was the outcome of the Great Contract

it was never received

reasons for the failure of the Great Contract

• mistrust between the King and his subjects

• suspicion that James would not call parliament if he got independent income

• disagreed with his extravagant court and generosity

• saw no foreign threat which money was needed to defend

• the abolition of purveyance did not appeal to everyone as it was not prevalent in all areas

what scheme did William Cockayne propose

exporting cloth in a finished state rather than exporting it to be dyed and then importing it back (1614)

claimed an extra 40,000 could be made

failures of Cockayne’s plan

he could not find the funds or expertise to dye cloth in this country so had to ask for permission to export it again in 1615

• Dutch refused to buy English cloth because cloth markets were disrupted

• stock piled up

• weavers became unemployed, riots in the West country

why were monopolies unpopular

they resulted in price increases

why would the Great Contract have been better than the alternatives

the alternatives resulted in discontent and complaint

what was Lionel Cranfield’s aim

increase revenue and cut expenditure

how did Cranfield increase income

• more money from Court of Wards

• got customs farmers to pay an extra £4000

how did Cranfield decrease expenditure

• budgets in wardrobe, navy, ordinance, and household

• cut military expenditure

• reduced pensions and gifts that flowed from the King

what was a large achievement of Cranfield

he balanced the books

what factor undermined Cranfield’s achievements

foreign relations and defence spending