Economy
What was the nature of economy during the reign of henry VIII?
However, some of the major industries at the time included cloth, tin mining, farming, ship building
There was limited scope for trade and therfore limited profits to be made
There is no consistent economic policy for henry VII or henry VIII
Both national and international trade was present e,g burgundy Spain, Central Europe, and Italy
Wolseys approach to economy:
Cromwell approach to economy:
Trade
Exploration
Prosperity and depression
Wolsey realised that these sources of finances were unsustainable and he seeked improvements in the structure of finance. For example property taxes were made into fixed rates ( meaning that they do not change with inflation). Also fixed rates at the time of inflation meant less money for the crown
A national survey was conducted in 1522. This was to work out who could pay tax and how much could be paid . From this 200,000 pounds was raised, which was a short tern solution to raise finances
Wolsey needed the economy to remain profitable for the king to be able to draw on his sources of income such as, ordinary revenue e.g crown lands and extraordinary revenue e,g bonds and recognisances
In 1526, recoignage was introduced. This introduced new coins and reduced silver used in coins. This was aimed to make more money available but also cheaper to make. However this had brief success but was internationally confusing and resulted in price increases; this suffering hence leading to riot as in 1528
The court of general surveyors
the court of first fruits and tenths
the court of augmentations
the court of wards
This ensured a more consistent income for the crown
There was increased specialization within the government to deal with finances
Controlled land and finances previously held by the Catholic Church
controlled ex monastic land and finances
collected money previously sent to Rome
feudal right to collect from the estate of a minor aged under 21 who had inherited money
Broadcloths and cheaper fabrics such as kersey ( a lighter woolen cloth) were exported through London, although foreign merchants controlled much of this trade until the 1550s
They enjoyed special privelages and in return provided the crown with much needed loans
The most important export was cloth, and exported almost doubled during henry VIII’s reign
Nevertheless the English company of the merchant adventures flourished
English trade increased during the first half of the 16th century with the encouragement of the crown
They traded in finished cloth which was sent to their base in Antwerp for dyeing and finishing, anf they also controlled trade with north west Germany,
Other exports included included Cornish Tin hides and furs while wine was increasingly imported from the continent , reflecting the changing tastes and wealth of the social elites
Henry VIII made no attempt to build on the achievements of Cabot and the Bristol merchants at the end of the 15th century
Robert throne a Bristol trader, continued his involvement in an inceland and Newfoundland fishery but other merchants failed to procure royal support for exploration
Prosperity
depression
Futhermore debasement of the coinage ( reducing silver content in coins) which was first attempted in 1526 and became more frequent in the 1540s ,created a Short term artificial boom in 1544-46 by putting more coinage into circulation
Agricultural prices rose from the 1520s, increasing farmers incomes
The growth of the population from around 1525 aided This prosperity as surplus labour could work in industry
enclosure ( which increased farm size) new agricultural techniques ( such as the rotation of crops and the breeding of superior cattle and sheep) and engrossing benefited agriculture
Tin mining in Cornwall, lead mining in the high Pennines and coal mining in north England also prospered and new blast furnaces produced and increasing amount of iron ore in Sussex and Kent
The wool industry, must particularly in the west riding of Yorkshire, East Anglian and parts of the west country, grew in order to keep pace with increase trade and demand
bad harvests e,g 1520-21 and 1527-1529, raised food prices. Food prices almost doubles across Henry VIII’s reign, this brining urban poverty
In the countryside, some were made homeless on account of enclosure and engorssisng. There was legislation to limit the practise in 1515; Wolsey established an enclosure commission in 1517, leading to some prosecutions; further legislation in 1534 attempted to limit sheep owensherip and engrossing. None of this was particularly effective
Industrial and agricultural growth did not, however, always bring prosperity for all
Debasement brought inflation anf for the many ther had been a fall in real wages by the end of the reign as prices and rents rose
The impact of population growth
Distress
prosperity
plentiful supply of labour- wages stagnated
some peasants moved from rural to urban communities and suffered precarious existence
Rising demand put strain on food supply
this led to increase in farming incomes
which hence increased wealth for husbandmen, yoemen and landowners
An increase in agriculture prices
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