Finance

Question 1

Expenditure

Answer 1

• Needed to raise funds for running all of his kingdoms.
• Expenses of being HRE were high.
• Crown’s financial situation poor.
• Cost of upkeep of Royal Household.
• Cost of Wars.
• Expected to be Self-Sufficient.
• Has to pay back loans given by Fuggers (German Banking Family)
• Foreign Policy Expensive e.g. Metz Campaign cost 2 Million Ducats.

Question 2

Income

Answer 2

Castile:

• Largest contributor of money from Spain.
• Cortes doesn’t reject higher taxation.
• Alcabala: Most significant way of gaining money, everyone has to pay it.
• Customs Duties is a valuable contribution.
• Established Crown’s right to receive Servicio.
• Borrowing money through sale of Juros (bonds with interest), used as loans.

Aragon:

• Small Contribution.
• Cortes has more power, stops to much taxation.

Church:

• Pope allowed Charles to receive portion of money from the Spanish Church: 1532, 372,000 Ducats raised. 1551, 500,000 Ducats raised.
• Church payed Cruzada: 1523-1554, raised an average of 121,000 Ducats per yr.

New World:

• 1534-1540: Average 324,000 Ducats made per yr.
• 1545-1550: Average 382,000 Ducats per yr.
• 1551-1555: Average 871,000 Ducats per yr.

Other Methods:

• Sold titles and offices
• Increased amount of taxes on upper class.