Reason for creating this thread:
Because there is proving to be a great deal available about this trinity and to continue it in its current place would dilute that threads purpose.
This, below, reads to me that Charles II deliberately or conveniently took out the goldsmiths guild as the proto bankers of Royalty. It confuses the hell out of me quite honestly as there are lots of players who share surnames and working out who did what and when is a nightmare.
However one has to start somewhere when it comes to figuring out where the two Charles's and James I were funded from.
From here Stop of the Exchequer (England)
The foundation of the paper debt instrument is clear.
Of course that assumes the bank still exists and of course there is devaluing of the measure, the pound, to be considered whilst the bank takes the initial pound and invests it over and over again to be quid's in aka earned more than five pounds in the meantime so it can honour the note and just won't mention the profits.
If the investing goes south to the extent it cannot honour the note then there is always the default to come to the rescue.
God my brain hurts with this nonsense.
Its seems to be incestuous this goldsmith/king fandango. Both sides benefit until one side defaults. Its hard to see who holds influence over who, if indeed there was any influence. The king gave the goldsmiths their leverage and frankly it beggars belief that goldsmiths either didn't know this or sought to get out of the deal one way or the other. Perhaps for all their seeming cleverness and skill at working gold they lacked common sense.
Most likely though they feared loss of royal patronage and the connections that came with it so they took the risk.
So is it the flow of gold coin into kings treasury the exchequer and on into arisdtocratic hands etc the thing that delivers ruin to the goldsmiths and it was this realisation that led to the paper note debit credit system being invented?
And once again if gold was being used to buy gold how the hell does that work?
Did the king aka government (they are the same damn thing despite all the nonsense) shake the aristocracy down who in turn shook the gentry down who in turn shook the lower class down?
Who was holding all the gold coin?
None of it makes sense.
However in the interest of the op premise to discover who was funding the kings one must press on.
Main point stands the king/government took out its backers and destroyed gold coinage as a store of funghible value which left a bad taste but still some sort of monetary asset was needed to replace the gold thus cresting the ideal solution paper debt notes.
Problem
Gold is essy to hang on to maintains its value is widely distributed.
Reaction
Crush the goldsdmiths and in the process the reputation of king/government as a safe pair of hands.
Solution
Invent and install paper debt notes.
Icing on the cake
Bank of England is invented all be it a few years on.
Doesn't seem to be any clearer who did what save finding out that goldsmiths financed the king/government Charles II until the Stop the Exchequer was invoked. Who financed him after that I know not but I'm certain the answer is within one or two of the twenty odd pages I currently have open, if I recover the will to look at any of them.
Because there is proving to be a great deal available about this trinity and to continue it in its current place would dilute that threads purpose.
This, below, reads to me that Charles II deliberately or conveniently took out the goldsmiths guild as the proto bankers of Royalty. It confuses the hell out of me quite honestly as there are lots of players who share surnames and working out who did what and when is a nightmare.
However one has to start somewhere when it comes to figuring out where the two Charles's and James I were funded from.
From here Stop of the Exchequer (England)
So it would seem at first blush Charles had the goldsmiths over a barrel. The Treasury being a department of Royalty? Or a department of government?In January 1672 Charles II issued a proclamation that suspended payment on tallies and Exchequer orders to pay, an action that became known as the Stop of the Exchequer.
Shh! Don't tell the masons are behind everything crowd.The British treasury is called the Exchequer, because during the Middle Ages transactions with the British treasury took place in a room with tables covered by checkered cloth.
So the goldsmiths seem to have been the men bringing in paper as a means of record. Its not a big leap to realise the paper orders were accompanied by a book of debit and credit recording these orders or it could be argued registering them. Credit and debit in essence and practice. No sign of Jewish or contental skullduggery yet.During the reign of Charles II the Exchequer discounted tallies and Exchequer orders to pay to goldsmith bankers, paying interest rates above 6 percent. Tallies were wooden sticks that represented a debt of the government and Exchequer orders to pay were paper orders that were replacing the wood tallies, which were a holdover from the Middle Ages.
The foundation of the paper debt instrument is clear.
Maybe I'm naiive but that reads to me to be a damn good scam. Imagine paying a pound for a five pound note and hanging onto it for while then the bank will give you five pounds for it at a maturity date.The goldsmith bankers paid 6 percent interest on near-money accounts (deposits not readily available on demand, such as modern certificates of deposit) in order to raise funds for discounting tallies and paper orders from the government. Tallies and paper orders were similar to some present-day government bonds that are bought at a discount (an amount less than face value), and can be redeemed at face value at some maturity date in the future.
Of course that assumes the bank still exists and of course there is devaluing of the measure, the pound, to be considered whilst the bank takes the initial pound and invests it over and over again to be quid's in aka earned more than five pounds in the meantime so it can honour the note and just won't mention the profits.
If the investing goes south to the extent it cannot honour the note then there is always the default to come to the rescue.
So the tale so far is goldsmiths lent Charles money aka gold and silver coins in return for some future payment in gold and silver bullion and or coins with the paper order aka the note as evidence of the loan or the wooden tally stick as evidence.The government pledged to redeem the tallies and paper orders in a rotating order.
When the goldsmith bankers had no more money to loan out, and were no longer able to discount tallies and paper orders, Charles stopped redemption of the tallies and paper orders already held by the goldsmiths.
God my brain hurts with this nonsense.
Its seems to be incestuous this goldsmith/king fandango. Both sides benefit until one side defaults. Its hard to see who holds influence over who, if indeed there was any influence. The king gave the goldsmiths their leverage and frankly it beggars belief that goldsmiths either didn't know this or sought to get out of the deal one way or the other. Perhaps for all their seeming cleverness and skill at working gold they lacked common sense.
Most likely though they feared loss of royal patronage and the connections that came with it so they took the risk.
This is the bit I don't get. Money is gold and silver coinage. Plate jewels, bullion were held in the goldsmiths vaults but such things are not money and once plate and melted down plate bullion or jewellery has gone for good.When the goldsmith bankers had no more money to loan out, and were no longer able to discount tallies and paper orders, Charles stopped redemption of the tallies and paper orders already held by the goldsmiths.
So is it the flow of gold coin into kings treasury the exchequer and on into arisdtocratic hands etc the thing that delivers ruin to the goldsmiths and it was this realisation that led to the paper note debit credit system being invented?
And once again if gold was being used to buy gold how the hell does that work?
How?This Stop of the Exchequer initially caused a run on the goldsmith bankers and many were eventually ruined by this action. Later the government honored about half of its debt to the goldsmith bankers.
Did the king aka government (they are the same damn thing despite all the nonsense) shake the aristocracy down who in turn shook the gentry down who in turn shook the lower class down?
Who was holding all the gold coin?
None of it makes sense.
However in the interest of the op premise to discover who was funding the kings one must press on.
The Stop of the Exchequer reminded people of the seizure of the mint in 1640 and created more doubt about government involvement in banking
So the king/government shafts the goldsdmiths, royally shafts the goldsmiths, ruining some of them BUT at some time later the king/government pays the remaining goldsmiths half of its 'debt' to the goldsmiths but what with is anyone's guess.It also cast a shadow on paper money, and postponed the development of an institution such as the Bank of England for another 20 years. The credibility of government money suffered a severe setback from this experience, and in England issuing paper money became the province of banks.
Main point stands the king/government took out its backers and destroyed gold coinage as a store of funghible value which left a bad taste but still some sort of monetary asset was needed to replace the gold thus cresting the ideal solution paper debt notes.
Problem
Gold is essy to hang on to maintains its value is widely distributed.
Reaction
Crush the goldsdmiths and in the process the reputation of king/government as a safe pair of hands.
Solution
Invent and install paper debt notes.
Icing on the cake
Bank of England is invented all be it a few years on.
Doesn't seem to be any clearer who did what save finding out that goldsmiths financed the king/government Charles II until the Stop the Exchequer was invoked. Who financed him after that I know not but I'm certain the answer is within one or two of the twenty odd pages I currently have open, if I recover the will to look at any of them.
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