Chapter 3: Early finances

• Inflation?

  An increase in prices and a decrease in the value of money
• Why did Parliament want to limit prerogative income?

  The more money that the monarch could raise themselves, the less necessary parliamentary subsidies were
• Causes of worsening Crown finances?

  Crown expenditure was increasing and Crown income was falling, due to Elizabeth's failure to reform royal sources of income
• Consequences of weak Crown finances?

  It made it difficult to effectively govern the country or conduct an aggressive foreign policy
• Why did monarchs not reform Crown finance?

  It was politically safer to make short term changes than challenge the vested interests of the Political Nation
• The Great Contract?

  Cecil's failed attempt to reform royal finances. In exchange for an annual grant of £200,000 and the removal of £600,000 worth of debt, the monarch would lose some of their prerogative income. Neither side felt this was a fair deal
• Greatest sources of royal expenditure for Elizabeth?

  Foreign policy and war
• 1604 Treaty of London?

  A peace treaty between England and Spain, which significantly reduced Crown expenditure
• Why did James I spend extravagantly?

  The English Crown's weak financial position was still far superior to James' income as King of Scotland
• By how much did court expenditure increase during James' reign?

  It doubled
• Why were MPs reluctant to grant James subsidies?

  He had developed a reputation for giving away large sums of money. In 1606, James gifted £44,000 that had been granted to him so he could pay off his debts to three of his Scottish friends
• Ante-suppers?

  The preparation of two huge feasts, one of which would not be eaten. They could cost up to £3300
• How was James' expenditure politically useful?

  He was able to buy support using patronage
• Consequences of overselling honours and peerages?

  They became devalued, and their abundance alienated the Political Nation
• The Cockayne project?

  James' 1614 plan to reorganise the cloth trade, by granting William Cockayne a monopoly on finished cloth. The Dutch refused to buy English cloth, which resulted in an economic slump
• Crown debt?

  1608 - £600,000

  1617 - £726,000

  1620 - £900,000

  1629 - £2,000,000
• Monopolies?

  The Crown could use its prerogative to sell the exclusive right to provide a product to the highest bidder. Monopolies were controversial, as the holder of the monopoly was able to charge as much as they wished for a product, as they had no competition
• Why did James call Parliament in 1621?

  While he did not want England to join the Thirty Years War, James needed subsidies in case he had no choice
• The Thirty Years War?

  A religious conflict that started in 1618 between Catholics and Protestants. The most contested region was modern-day Germany
• 1621 subsidies?

  Parliament only granted James two subsidies, totalling £140,000. They didn't grant him any more due to the depression and the worry that James would dissolve Parliament as he had done in 1611
• Giles Mompesson?

  A relative of Buckingham who had been granted, and subsequently abused, his monopoly for the licensing of inns
• Monopolies in factional disputes?

  Lionel Cranfield and Edward Coke used the issue of monopolies to impeach their mutual rival, Francis Bacon. James agreed to this in order to appease the Commons
• Harvests at the end of James' reign?

  Bad
• 1624 Subsidy Act?

  The Crown would be granted a £300,000 subsidy, but Parliament would make sure the money was being used for foreign policy
• 1624 Statute of Monopolies?

  This act limited the Crown's ability to grant monopolies
• Impositions?

  Import duties. They were a feudal right of the monarch
• Why did Charles want to join the Thirty Years War to defeat Spain?

  Partly as revenge for the failed Spanish Match, but also because Henrietta Maria was French, and France was the main opponent of Spain
• Expensive aspects of an attack on Spain?

  Charles would have to financially support the Dutch, aid his uncle, Christian IV of Denmark's, invasion of Germany, create an army of 6000 men, and fund an attack on the Spanish navy to steal their South American gold
• Customs tax?

  A tax on all goods that was paid to the king
• Charles' 1625 subsidies?

  He needed £1 million for war expenditure, but due to a lack of communication, Parliament only granted him two subsidies totalling £140,000
• Tonnage and poundage?

  Charles was only granted the right to collect tonnage and poundage for one year - it was usually granted to a monarch for life. Parliament withheld this right as a means of criticising Buckingham, but Charles viewed it as an attack on his prerogative
• Robert Cecil?

  Son of William Cecil who organised James I's ascension to the throne. He ran James' government until his death in 1612
• Cecil's attempts to cut royal expenditure?

  Cecil requested that James stop gifting land and pensions without his approval, which James failed to do
• The Book of Bounty?

  1608 attempt by Cecil to revise leasing policies on Crown lands, to improve royal income. James' continual granting of land to his favourite courtiers undermined this
• Book of Rates?

  Cecil's 1608 revision of impositions. He increased the import taxes for 1400 items. The book had not been updated since 1558, so its fixed rates had not kept up with inflation
• Feudal system?

  The monarch could grant land to members of the Political Nation in exchange for monetary payments
• John Bate?

  A merchant who refused to pay impositions on currants. His 1606 trial enforced the legality of impositions
• Value of impositions?

  They earned the monarch £70,000 a year after the reissued Book of Rates
• Annual Crown expenditure in 1610?

  £511,000
• Proroguing?

  Pausing Parliament without dissolving it