The Bank of England provided a safer deposit and lower interest than goldsmiths or scriveners. It also issued notes for 10 and 15 (since 1759), and 20 pounds. Outside retail trade and wages payments, business was conducted on a credit basis with a paper promise to pay at some future date. Check use was still formal and rare. Tradesmen typically authorized their apprentices to "write off or draw" from their accounts, bringing their bank books. Depositors authorized other people such as certain servants, relatives, cashiers, or company secretaries to make use of their accounts. After 1721, the Bank dividend was about 6% a year.
Promissory notes were a.s.signable and endorsable and the holder could recover against the signer or any endorser as was the case with bills of exchange. In 1775, no more promissory or other notes, bills of exchange, draughts, or undertakings in writing and being negotiable or transferable could be made for under 20s., because it was hard for the poorer sort of manufacturer, artificer, laborer and others to use them without being subject to great extortion and abuse. Cash was to be used instead.
By 1711, government finances had become so chaotic that the Chancellor of the Exchequer sought to re-establish public credit by means of a chartered commercial company, the shares of which were offered in subst.i.tution for government stock. This South Sea Company was established in 1711 with a monopoly to trade in South America. The prospects of huge profits sent the share prices soaring. There was also an increase in the money supply. These factors led to a speculation bubble in 1720 in this stock. Also, many stock-jobbers promoted companies of every description, such as one to extract gold from seawater. There was an insurance boom with about seventy insurance companies in existence, many virtually gambling in life contingencies.
There was speculation in insurance for all types of occurrences, such as housebreaking, highway robbery, death by gin-drinking, and horses becoming disabled. The total capital invested in all these enterprises rose to over five times the cash resources of all Europe. When the bubble burst, 100 pound South Sea stock had gone up to 1050 pounds and back down again to 120. Since the government had in effect bought this stock at a low price and paid off its debt with this stock at a high price, this bubble relieved the government of much of its ma.s.sive debt.
It also redistributed wealth. After the bubble burst, investors took refuge in investing in 3-4% government fixed-interest securities. A result of this bubble burst was the chartering of two corporations for marine insurance and prohibition of such by any partnership or firm.
Private persons could continue to write policies, and they chose Lloyd"s Coffeehouse as their headquarters; it came to dominate the world of marine insurance after the two chartered companies came to concentrate on fire and life insurance. Lloyd"s list became the foundation for a new newspaper. There were specialty boxes at Lloyd"s such as on America or the Baltic. Many ships were reported captured by enemies or pirates, but underwriting insurance was a lucrative business for many.
In 1717 the gold guinea was a.s.signed a value of 21s. In 1774, the gold standard was introduced. In 1774, clipped and deficient gold coin was called in to be exchanged for new coin.
Local taxes were collected for the church, the poor, county courts of justice, borough administration, and highways. National taxes included the income, customs, and excise taxes. When the government tried to levy excise taxes on wine, tobacco, and then on cider, there was a public protest with mobs demonstrating against the power given to excise inspectors to search in people"s homes. These excise taxes were no longer levied.
Duties were placed on items for encouraging industries within the country and to pay the expenses of government. There were more and higher duties to pay for war. At various times there were duties on hides, skins, seal skins, gilt and silver wire, malt, mum [strong beer made from malted wheat], cider, perry, spices, tea, coffee, cocoa nuts, chocolate, cocoa paste, snuff, chinaware, drugs, calicoes, herrings, apples, oysters, raw Italian and Chinese silk, gum arabic, gum senega, tallow, hogs-lard, grease, beaver skins and wool, imported brandy, raisins, coals and coal dust, coaches for one"s own use or for hire, except licensed hackney coaches; silver plate owned by persons, corporations, and bodies politic; leases, bonds, and other deeds; licenses for retailing wine, beer, and ale; 5% of salaries, fees, and perquisites from office and employments including royal pensions and gratuities over 100 pounds. When the price of wheat was high, as in 1765, when it was 6s. per bushel, wheat products could not be exported.
At other times, they could not be imported. Duties on imported wheat, barley, rye, oats, beans, rice, Indian corn were also dropped. The prohibition of importing salted beef, pork, bacon, and b.u.t.ter was dropped. In 1770, no live cattle, pigs, mutton, pork, beef, either fresh or salted could be exported or forfeit 50 pounds for every such animal or 5s. per pound of such meat. In 1773, peas, beans, bacon, hams, and cheese could be imported duty free, and in 1775 Labrador codfish. In 1775, raw goat skins could be imported duty-free to improve the domestic manufacture of red, green, and blue leather.
In 1773, there were given costs above which various commodities could not be exported: wheat at 44s. per quarter, rye, peas, or beans at 28s., barley and beer at 22s., oats at 14s. or else forfeit the goods, 20s.
per bushel and the ship or boat in which laden. (There are 8 bushes in a quarter.)
A window tax replaced the hearth tax. These duties were 2s. on dwelling houses, increased by 6d. per window for houses with 10-14 windows, and increased by 9d. per window for houses with 15-19 windows, and increased by 1s. per window for houses with 20 or more windows, per year to be paid by the occupant. These were increased three more times, until the dwelling house duty was 3s. and the duty for 25 or more windows was 2s.
Another duty for war was that on imported starch, certain imported clothes, cards, dice, soap, vellum, parchment, and paper made in the realm (4d.-1s.6d. per ream depending on quality) or imported (1-16s. per ream). For pamphlets and newspapers made in the realm there was a duty of 2d. per sheet and 12d. for every advertis.e.m.e.nt. When the duty was paid, the paper was stamped. The penalty for nonpayment was 10 pounds for sellers and 5 pounds for those writing or printing on the paper.
Later, there was a penalty of imprisonment in a House of Correction up to three months for sellers or hawkers of pamphlets or newspapers, and the apprehender received a reward of 20s. A parson marrying a couple without publishing banns or license could forfeit 100 pounds.
Not paying duties was punishable by various forfeitures of money.
Officers for duties could search warehouses on suspicion of concealment of coffee, tea, chocolate, or cocoa beans with an intent to avoid duties after making an oath before a duty commissioner or Justice of the Peace setting forth the grounds of such suspicion. A special warrant could be issued authorizing the officer to seize such goods.
Wars were funded not only by some duties, but by lotteries and short-term funding purchased at 5% yearly interest from the Bank of England and by long-term funding by the sale of annuities.
County militias could be raised and called out to march together in order to be better prepared to suppress insurrections or invasions.
Their hors.e.m.e.n were to be provided with broad sword, a case of pistols with 12 inch barrels, a carabine with belt and bucket, a saddle, and a bit and bridle. Each foot soldier was to be provided with a bayonet, a cartouch-box, and a sword. In the militia act of 1757, there were quotas for each parish, to be chosen by lot from lists of men 18-50 years old.
After militia service for three years, one could not be called again until by rotation, and, if married, he was allowed to practice any trade in which he was able in any town or place. While he was in the militia, his parish had to pay an allowance to his family, if distressed, the usual price of an agricultural laborer, according to the number and ages of the children. Quakers could provide a subst.i.tute or pay money to defray expenses of a subst.i.tute for three years. Exempt were peers, commissioned officers in royal army or royal castle, other military personnel, members of either university, clergymen, teachers of any separate congregation, constables and peace officers, and watermen of the Thames River.
This militia act was due to an invasion scare in 1756 because Great Britain then had no allies on the continent. The old strategy of maintaining a small army of 17,000 men and relying on volunteers had really depended on England"s allies to tie down France"s land forces.
The militia act of 1757 was designed to rea.s.sure squires they would not be used as adjuncts to the army. Only those with much property could be officers. Enlistees could still carry on their trades and jobs. Costs were to be from general taxation rather than by locality. But it was almost impossible to get officers and there were many riots when parish authorities tried to draw up lists of those liable to serve. In 1759 the navy prevented French invasion.
Able-bodied men without a calling, employment, or visible means of maintenance or livelihood could be searched for and conscripted into the army. Volunteers who enlisted were paid 40s. and were not taken out of her majesty"s service by any process other than for some criminal matter. King George II was the last king to lead his troops into battle.
Later, parishes were given 20s. for every soldier they summoned. Also, persons who had a vote for member of Parliament were exempted.
Whipping was the usual punishment for offenses. A soldier who deserted or joined in any mutiny or sedition in the royal army within the realm was to suffer death or any other punishment determined by court martial.
In 1760, a soldier (later, or a marine) who slept at his post, left his post before being relieved, communicated with any rebel or enemy, struck or disobeyed any superior officer could suffer death, including those soldiers in America.
During war, chief officers of towns quartered and billeted royal army officers and soldiers in inns, livery stables, alehouses, and victualing houses for 4d. a day, but not in any private house without consent of the owner. From 1714 to 1739, the army regiments were split up and scattered among the ale-houses of small towns for maintenance; this was to disperse the soldiers. It was easier to count them, thereby keeping a check on their number, which might be exaggerated if they were in large groups in barracks. The towns protested having to maintain soldiers and town magistrates imposed severe penalties for small offenses by soldiers. Their drunkenness and violence were not tolerated as they were for ordinary people. Their officers not being with them, the soldiers retaliated with troublesomeness. As of 1763 English troops could be quartered in unoccupied houses or barns and supplied with necessities such as bedding, firewood, candles, vinegar, salt, cooking utensils, and beer or cider. The Royal Hospital gave pensions to maimed and worn out soldiers treated there.
Sailors had more status than soldiers because they had regular work as seamen in times of peace and they did not remind the people of the idea of a standing army, which they had hated especially since Cromwell.
Justices of the Peace, mayors, and other officers could bind boys as apprentices to sea service if they were at least ten and their parents were chargeable to the parish or begged for alms. This indenture to the masters or owners of ships lasted until the boy reached 21. The boy"s parish paid 50s. for clothing and bedding for such sea service. No such apprentice could be impressed into the navy until at least 18 years of age. Master and owners of ships that carried 30-50 tuns had to take one such apprentice and one more boy for the next 50 tuns, and one more boy for every 100 tuns over 100 tuns, or else forfeit 10 pounds to the boy"s parish. Boys voluntarily binding themselves to such sea service were exempt from impressment for the next three years. This was to increase the number of able and experience mariners and seamen for the navy and for the trade and commerce of the nation.
No masters or commanders of merchant ships were to proceed on a voyage beyond the seas without first agreeing in writing on wages with the seamen, except for apprentices. Such agreement had to be signed by the seamen. Offenders were to forfeit 5 pounds per seaman, which sum went to the use of Greenwich Hospital. Any seaman leaving the ship before being discharged in writing was to forfeit one month"s pay because too many left the ship before it was unladen.
There were some ships of 2000 tons. The steering wheel had been introduced because a sudden heavy sea could wrest a tiller from the hands of a helmsman. Triangular head-sails with jib boom and stay-sails on stays between masts were in use so that ships could sail closer into the wind. The length of ships was still determined by the same length of trees that could be grown. Sailing ships were still vulnerable to a lee sh.o.r.e. Lat.i.tude was easy to determine using the reflecting octant invented by John Hadley in 1731, and a s.e.xtant invented in 1757, with mirrors and a small telescope to measure the angle between a celestial body such as the sun or north star and the horizon. But longitude could not be determined with any degree of accuracy. One method relied on accurate predictions of the future position of the moon as observed from a fixed reference point, such as Greenwich. By precisely observing the local time of the moon"s occultation of a known star at a particular place, and looking up in a table the predicted time of the event at Greenwich, one could approximate the time difference of the place from Greenwich. There were so many shipwrecks on this account that the government offered a reward to anyone who found a way to measure longitude accurately. In 1763 carpenter and clockmaker John Harrison made the chronometer to do this with an accuracy of 2 1/2 seconds per month, and received 5,000 pounds. He was promised 10,000 pounds to explain the principle of his timekeeper and build three more. The chronometer kept time with extreme accuracy and was mounted to remove the effect of the ship"s motion. To find a ship"s position, a navigator noted the time and measured the positions of certain stars. He compared these positions with tables that showed the stars" positions at Greenwich mean time, and then calculated the ship"s position.
Officer positions were no longer bought, but were subject to examination for a minimum of knowledge, especially in navigation. In 1729 the Naval Academy was established. Boys entered at age 13 to 16 and spent two or three years there.
Only about 15% of the crew of navy ships were volunteers. Many were gaolbirds, having chosen the Navy over more gaol time for debt. Press gangs seized men in the port towns and from ships coming into harbor.
>From 10% to 20% of the crew were foreigners, many of these pressed men.
About 1756, the Marine Society was founded for training and placing poor boys in work in naval and merchant ships. This not only supplied men and boys for the Navy, but saved boys from a life of vagrancy and crime.
These boys usually became reliable and obedient sailors.