Elizabeth's management of financial, economic and social affairs Flashcards
(20 cards)
1
Q
What was the financial and economic situation in 1558?
A
- Elizabeth inherited debt from Mary I and it was a total of 227,000 pounds , this was largely due to the war with France in which Mary had to intervene as requested by her husband Philip
- The Crown relied on things such as custom duties and parliamentary subsidies which were inconsistent and insufficient
- The Monarchy had debased the coinage under Henry and Edward to fund wars and as a result this led to inflation , where prices rose sharply while wages did not keep pace and this damaged the standard of living
- Unemployment and poverty
- Englands traditional markets in the Netherlands were unstable due to conflict
2
Q
Who was Elizabeth able to rely on ?
A
- Sir Thomas Gresham
- He told the queen that there were 3 reasons for the financial difficulties , the first was the debasement of the coinage by Henry VIII, the second was the war debts and the third was the privileged position of the Hanseatic League which gave them control
3
Q
How did Elizabeth use crown land?
A
- Crown lands were estates and revenue directly by the Monarch, and were a major source of the royal income
- Elizabeth sold of portions of the Crown Lands to raise quick cash, particularly to pay off debts
- By using crown lands, Elizabeth was able to minimise the need to ask parliament for subsidies
4
Q
How did Elizabeth use Parliamentary taxation ?
A
- Elizabeth could ask Parliament for money and this was usually her main reason for calling them
- Parliament was willing to grant her supplies but she did not wish to call too often
- Parliamentary taxation was also known as subsidies and it was collected in 2 forms. Fifteenths and tenths which raised about $30,000 and a subsidy produced just under $100,000
- Elizabeth would rarely summon parliament and she was cautious not to overuse taxation to challenges to her authority
- When she did request subsidies she would often ask for more than one at a time, for example during the war with Spain , Elizabeth successfully requested double or triple subsidies and this allowed her to maximise income from Parliament
- There were 2 problems with Parliamentary taxation, firstly she did not want to pay for a professional tax collecting service and secondly she did not want to alienate the gentry, as she had relied on them
- Hence this source of revenue was not fully exploited
5
Q
How did Elizabeth use Custom duties?
A
- Elizabeth benefitted from the Book of rates which determined the level at which custom duties were charged and it was revised in 1558 to take account of inflation so duties increased
- CD were a key source of income and it did not require parliamentary approval and this gave Elizabeth an independent source of income that she could rely on
- CD were taxes on imports and exports on items such as wool, cloth, wine and other good
- Elizabeth would encourage overseas trade and as England’s trade volume grew, so did the customs revenue especially from wool and cloth industry
- However the book of rates led to smuggling on a larger a scale and in 1559 Parliament passed an act to regulate where and when goods would be landing
6
Q
How much of a problem was inflation for Elizabeth I?
A
- Inflation was a problem for all of Europe, But was made worse by England by the debasement of the coinage in the 1540s
- By the time of Elizabeth reign, prices were rising but at a less rapid pace
- During her reign there was a huge population growth from 3 million to 4 million and this meant that there was more demand for food, and when supplies were short, prices would rise
- The poorest in society were hit the hardest as they spent most their income on food and this meant that there was a growing number of beggars and vagrants
- Elizabeth tried to deal with inflation by revaluing the coinage so that prices would come down, however this failed and the coming war causes a crisis since the supplies Elizabeth needed for her army all cost more
7
Q
What methods did Elizabeth use to reduce costs?
A
- Limited household spending, Elizabeth would be extremely careful with court expenses for example she would reuse clothes and jewels and cut down on lavish feats and gifts and she also kept the size of the court relatively small
- Elizabeth would also avoid large scale wars, she would use alliances and marriage negotiations to prevent conflict and when war was unavoidable she would use limited direct military involvement
- She often postponed payments to soldiers and supplier as this would give her more time to gather more income and reduce financial pressure
8
Q
How did war in Netherlands affect Elizabeth and her government?
A
- The war in the Netherlands ( Dutch revolt against Spain) had a significant impact on Elizabethan England,
- After the 1566 riots in Netherlands, many fleming’s fled to England, and they bought valuable manufacturing and manual skills which boosted the English Industry by increasing royal income through trade and industry
- However England’s trade with the Spanish Netherlands was damaged by rising hostility and in 1563 Elizabeth restricted the privileges of the Fleming Merchants which led to the Spanish seizing English goods and thus disrupted trade and reduced England’s revenue
- Led to political pressure as supporting the Dutch rebels would risk provoking Spain and not supporting them could allow Spanish power to grow dangerously
- by 1585, tensions had escalated so far that England formally intervened by signing the Treaty of Nonsuch which committed English Troops to help the Dutch and this marked a shift from indirect support to direct support
- This military involvement drained Elizabeth’s finances, with the war costing more than half her annual income and this threatened the financial stability of her government
9
Q
What were some overseas trades that took place ?
A
- In 1558, England’s overseas trade was limited mainly focused on Antwerp through the Merchant Adventurers
- The Muscovy Company which was a stock trading company set up in 1555 initiated trade with Russia, importing goods such as tar and timber and this helped expand English Naval capacity
- In 1570s England Merchants began trading directly with the Mediterranean, where previously this trade had been dominated by Italian Merchants in London where items such as silk, spices and olive oil was imported
- However in the 1580s this was formalised with the establishment of the Levant company which trades English wool and cloth for luxury goods like silk and spices and this helped establish direct links with countries such as the Turkish empire
- John Hawkins began trading in West Africa specifically Guinea and it best known for his early involvement in the transatlantic slave trade where he sold enslaved Africans to Spanish colonies and he was backed by Elizabeth
10
Q
What were purveyances and how was it an issue?
A
- Purveyance was the royal right to buy goods at below market price for the court. This meant that officials could also seize goods from suppliers often without paying fairly and resell it for profit
- It was an issue because it was abused by royal agents who overcharged or kept goods
- Parliament repeatedly petitioned Elizabeth to reform it but she refused to give up this traditional prerogative of the crown
- It was deeply unpopular and was seen as unfair
11
Q
What were monopolies and how was it an issue ?
A
- A monopoly was the right granted by the Queen to a person or company to produce or sell a particular good
- It was an issue because Elizabeth used it as a cheap way to reward her courtiers and servants or to raise funds without parliamentary taxes
- Led to higher prices and poorer quality as the holders had no competition
- By the 1590s, these monopolies led to serious economic hardship , everyday items such as salt and starch became more expensive
- Parliament strongly criticised the system and in 1601, there was what became known as the Monopolies Crisis
- Elizabeth gave her famous Golden speech in response to the pressure
12
Q
What were the causes with poverty and vagrancy?
A
- The population was increasing at a rate which outstripped productivity, prices rose more than wages which reduced purchasing power of the employed, it rose from in 1540 2.7Million to 1601 it was 4.1 million
- The living standards declined by a quarter over Elizabeth reign this resulted to more migration of workers looking for jobs in the larger towns such as London thus it looked like vagrancy was increasing
- Another reason for it was because wars under Elizabeth meant that there would be injured and unemployed soliders returning home with no support
- In addition to this it is also argued that Enclosure was another cause of unemployment, which was when landowners fenced off common land to raise sheep for profit reducing land available for farming by peasants
- Decline of the cloth industry, which was England’s main export industry, so due to it declining there was a widespread job losses
13
Q
How did some towns and cities try to deal with the problems of the poor?
A
- Some towns such as Ipswich, Exeter and introduced local taxes to raise money to support the poor, the money was used to provide food, clothing and shelter for the deserving poor
- In London the city has acquired St Bartholomew’s hospital for the sick from Henry VIIII as gift at the dissolution of monasteries
- In Norwich, begging was forbidden
- In some rural locations income from fines for non attendance at Church was used to help the poor
14
Q
What was the Statute of Artificers?
A
- Was an attempt by the Elizabethan Government to regulate employment as there were economic problems
- In 1563, they passed the Statute of Artificers which aimed to ensure people had steady work, this was because a major problem was youth unemployment , so under the terms of this act everyone under the age of 30 had to work and those who refused to work would be punished
- It was hoped that this would limit discontent, and stop young people becoming economic migrants
- The act further stated that everyone was to work on the land unless a scholar, at sea or in a skilled occupation
- The JP’s ( Justice of the Peace) also set a maximum wage based on local conditions in order to stop inflation and exploitation
- The Law also set a fixed length working day which was 5AM to 7PM in summer with a maximum of 2 and a half hours for meal breaks
- If workers were absent they would have to forfeit one day per hour
- It also ensured that skilled workers had to complete a 7 year old apprenticeship to practice a trade
- These provisions reflected what the government saw as a desirable outcome but these were not strictly enforced
15
Q
What laws were passed by Elizabeth and her government to deal with the issues of the poor?
A
- Statute of Artificers ( 1563 )
- The 1572 Vagabonds act
- The 1576 Act for the relief of the poor
- The 1598 Act for the relief of the poor
- The 1598 Act for the punishment of Rogues, Vagabonds and sturdy beggars
- The 1601 Elizabethan poor law
16
Q
What did the 1572 Vagabonds act do?
A
- Made contributions towards the poor rate compulsory
- Begging was licensed in Parishes
- Anyone over the age of 14 found begging without a license was to be whipped and burned, unless someone could offer them a job
- Anyone younger than 14 caught begging without a license would be whipped
17
Q
What did the 1576 poor relief act do ?
A
- Able bodied people who had lost their possessions and poor people who had particular needs would be given licenses to beg
- All large towns were to provide materials such as wool and iron or workhouses for the poor to earn a living
- If an able bodied person which is someone who was not sick, disabled, elderly or a child refused to work, they could be sent to prison
- This provided a more constructive approach to poverty, by providing work instead of just punishment
18
Q
What did the 1598 act for the relief of the poor do?
A
- A maximum amount was laid down for the compulsory Poor rate
- Pauper children were all to be apprenticed until they were 24 (males) and 21 ( Females)
- Begging was forbidden
- Each Parish became responsible by law for looking after its poor and local officials were required to raise a poor rate ( which was tax on the wealthier) to fund support
19
Q
What did the 1598 act for punishment of rogues, vagabonds and sturdy beggars do?
A
- Established harsh punishments for Vagabonds and sturdy beggars, these were people wandering from place to place, begging or refused to work when they were physically able to, the punishments included being sent to the house of correction or being whipped
20
Q
What was the Elizabethan Poor Law?
A
- Was in 1601
- It also made the 1598 poor law compulsory
- It was the first national system of poor relief in England
- Helped reduce the threat of unrest or rebellion from the poor
