Indeed, James’s hope was that moderates of all persuasions, Roman Catholic and Protestant alike, might dwell together in his church. He offered to preside at a general council of all the Christian churches—Catholic and Protestant—to seek a general reconciliation. Liberals in all churches took his offer seriously. He sought to find a formula for suspending or ameliorating the laws against Catholics if they would take a binding oath of political obedience. Most Catholics were attracted by the offer, but James’s plans took a tremendous knock when an unrepresentative group of Catholics, disappointed that this son of a Catholic queen had not immediately restored Catholic liberties, plotted to kill him, his family, and his leading supporters by blowing up the Houses of Parliament in the course of a state opening, using gunpowder secreted in a cellar immediately beneath the House of Lords. The failure of the Gunpowder Plot (1605) led to reprisals against Catholics and prevented James from going any further than exhibiting humane leniency toward them in the later years of his reign. Nevertheless, James’s ecumenical outlook did much to defuse religious conflict and led to 20 years of relative peace within the English church.
Finance and politics
To a king whose annual budget in Scotland was barely £50,000, England looked like the land of milk and honey. But in fact James I inherited serious financial problems, which his own liberality quickly compounded. Elizabeth had left a debt of more than £400,000, and James, with a wife and two sons, had much larger household expenses than the unmarried queen. Land and duties from customs were the major sources of royal revenue, and it was James’s good fortune that the latter increased dramatically after the judges ruled in Bate’s case (1606) that the king could make impositions on imported commodities without the consent of Parliament. Two years later, under the direction of James’s able minister Robert Cecil, earl of Salisbury, impositions were levied on an expanded list of goods, and a revised book of rates was issued in 1608 that increased the level of duties. By these measures customs revenues grew by £70,000 per year.
But even this windfall was not enough to stem the effects of inflation on the one hand and James’s own free spending on the other. By 1606 royal debt was more than £600,000, and the crown’s financial ministers had turned their attention to prerogative income from wardships, purveyance, and the discovery of concealed lands (i.e., crown lands on which rents and dues were not being paid). The revival and rationalization of these ancient rights created an outcry. As early as 1604 Salisbury was examining proposals to commute these fiscal rights into an annual sum to be raised by a land tax. By 1610 negotiations began for the Great Contract between the king and his taxpaying subjects that aimed to raise £200,000 a year. But at the last moment both royal officials and leaders of the House of Commons backed away from the deal, the government believing that the sum was too low and the leaders of the Commons that a land tax was too unpopular. The failure of the Great Contract drove Salisbury to squeeze even more revenue out of the king’s feudal rights, including the sale of titles. This policy violated the spirit of principles about property and personal liberty held by the governing classes and, along with impositions, was identified as a grievance during James’s first Parliaments.