James I: Finance

• James


  Faced financial problems in 1603, had no income, raised money through land ownership and custom duties
• James raising money


  1. Asked parliament for subsidies

  2. Foreign policy and war were the greatest sources of expenditure

  3. 1604 Treaty Of London reduced expenditure

  4. After dissolving parliament in 1611, had to make money in other ways which damaged the crown's reputation e.g., overexploitation of the sale of honours
• James


  • Inherited a stable system of government
  • England was happy for him to be monarch
  • Parliament was willing to work with him, they wanted to make their views more known to the king and stop the rise of absolutism
• James had the potential to be a good king
• PARAIMENT'S ISSUES


  • Did not want to be taxed further
  • Fear that financial independence would allow James to side-step parliament
  • Distaste for James' spending
• CAUSES OF FINCIAL ISSUES

  • Years of rising prices and sale of crown lands to finance wars led to less money for the crown
  • James had a family
  • Elizabeth failed to update the tax system
  • James was extravagant
  • Elizabeth had left James with £420,000 of debt
• Robert Cecil (1563 – 1612)


  James' financial advisor
• Robert Cecil's attempts to raise funds

  1. Selling noble titles

  2. Sale of monopolies

  3. Making the BOOK OF BOUNTY in 1608 to try prevent James giving away any major items
• Bates' Case


  In 1606 a merchant John Bates was taken to court for refusing to pay impositions. He argued they were illegal unless declared by parliament.
• The Bates' Case opened a scope of customs called the BOOK OF RATES 1608 which brought an additional £70,000 to the crown
• The judges declared the crown had "absolute" prerogative to issue impositions
• Cecil's Great Contract 1610


  Failed to see through, however, it was a plan to win the crown £600,000 from parliament in return the crown would give up feudal rights of wardship and purveyance
• MPs were hesitant to agree to Cecil's Great Contract, many were dissatisfied with it. In November 1610, negotiations collapsed
• 1621 Parliament


  Votes James only two subsidies totalling to about £140,000. However, they were reluctant to grant more because of the ongoing economic depression. They also worried James would dissolve them again
• Attention also began to be directed towards the issue of monopolies
• 1624 Parliament


  Bad harvests further weakened the crown's finance.

  SUBSIDY ACT: granted a subsidy of £300,000 to the crown used specifically for foreign policy.

  STATUTE OF MONOPOLIES: this act limited the crown's right to grant monopolies to individuals