Part 85

John Locke, an Oxford don, physician, and son of an attorney, expressed a view that the monarchy was not based on divine right, but rather on a contractual relationship with the people, who were reasonable, free, and equal by nature. This idea was first adopted by revolutionists and then became accepted as orthodoxy. Also, he articulated the right of resistance, the supremacy of legislative assemblies, and the responsibility of rulers to answer to their subjects. He theorized that men turn to forming a civil government when there is a need to protect accumulated property from some unreasonable men. This, along with the protection of life and liberty, was the primary function of government, before royal pleasure, national pride, or foreign conquest. He wrote theories on the interaction of supply, demand, interest rates, rents, coinage, and foreign exchange rates. He believed that interest rates should be the natural ones determined by market forces rather than by the legislature, especially if there was an attempt to lower interest rates below their natural rate, which was not only undesirable but easily circumvented. He thought that attempting to legislate contrary to natural economic laws, e.g. prices, was doomed to failure from unexpected consequences. He agreed with most mercantilists that by maintaining a large inflow of precious metals through consistent export of surpluses in foreign trade would lead to low interest rates, increased trade, increased capital stock, high employment, and high prices, and therefore a healthy economy and enrichment of the nation.

Locke thought that knowledge comes primarily from experience, i.e. sensation and reflection, rather than from innate ideas placed in the mind by God, so that observation and experimentation are necessary to find truth. He theorized that propositions of truth have probability rather than certainty. Probable propositions included opinion, belief, and revelation. His "Thoughts on Education" was a great book on the formation of character. Locke also advocated the use of a large field for inventing labor-saving and economic devices for agriculture. He espoused freedom of thought in "Letters on Toleration" and wrote "An Essay Concerning Human Understanding", which described how the mind functions in learning about the world and which attempted to reconcile science and Christianity. He was a great admirer and friend of Newton and they shared religious views. He was also a member of the Royal Society.

At Oxford and Cambridge Universities, there were the most enlightened theologians, classicists, orientalists, philologists, mathematicians, chemists, architects, and musicians. There were professors of Anglo-Saxon, Hebrew, and Arabic. John Locke's influence caused modern philosophy to supercede traditional scholasticism. There were no more disputations to qualify for degrees. Some of the students were the sons of noblemen and sat at meals with the heads, tutors, and fellows of the colleges. Most students were the sons of landowners, clergymen, professional men, or prosperous men of business. They were known as the gentlemen commoner students. The few poor students were known as servitors and paid for their education by menial work. Corporal punishment ceased. Instead there were fines, suspension, and expulsion. Fellows of colleges had common rooms for drinking and smoking together as they had done in taverns outside college walls. The king had authority to grant licenses in sell or give land in perpetuity, to encourage founding and augmenting colleges and schools. The two universities were vested with the presentation of benefices that had belonged to Papists.

English nonconformists such as Presbyterians were excluded from Oxford and Cambridge Universities, so they were educated at Glasgow in Scotland.

Grammar schools were blamed for the past civil war by educating too many people above their station, so ecclesiastical control now stifled them. A few dissenting schools were established. Charity was given to schools for children of the poor for placement as apprentices, but not to educate them above their stations.

In the 1670s, about 70% of males in London were literate. By 1680, illiteracy was a special characteristic of the poor instead of a characteristic of the vast majority of common people as in 1580. Fountain pens came into use.

Many books written tended to be about the author's experiences, for instance Samuel Pepys' "Diary", Gilbert Burnet's "History of my own Times", John Evelyn's lifelong diary with vivid descriptions of striking events of the day, and nonconformist Celia Fiennes' description of her tour of England on horseback. There were many political biographies. Historians did not yet study history as a continuous process, but narrated self-contained stories to instruct by example. William Fleetwood wrote about economic history in "Chronicon Preciogum". George Hicks put together a "Thesaurus" of the northern languages. Thomas Hyde wrote on ancient Persian religion. John Spenser compared Jewish rites with those of other Semitic people, thus starting comparative religion. Richard Bentley, William's librarian, wrote a "Dissertation" on the ancient Greeks. He compared the ancient Greek life with modern life. He also confuted atheism on the Newtonian system. A translated version of "Critical History of Old Testament" by Frenchman Richard Simon identified the old testament as history instead of divine revelation. John Milton wrote "Paradise Lost", which retells the Biblical story of the Creation and the fall of Adam and Eve against the backdrop of Satan's rebellion and expulsion from heaven and emphasized God's justice in spite of everything. The poem deals with the puritan struggling against evil and the problem of sin and redemption. It has a cold and severe conception of moral virtue and stoical self-repression in its characters. There is no sympathy with the human condition. Reading this book made the English more serious, earnest, and sober in life and conduct and more firm in the love of freedom. John Bunyan wrote "Pilgrim's Progress" in which a tinker takes a journey to find the Everlasting City of heaven and on the way meets people who try to harm him. But he derives strength from his adversities. The journey is a metaphor for the Christian soul trying to find salvation. It is Puritan in its sympathies and has insights into human nature. John Dryden wrote on large social, political, and humanistic issues, often by political satire. William Congreve wrote plays such as a comedy on manners. William Wycherley wrote cynical satires and portrayed folly, affection, and vice. John Vanbrugh wrote plays satirizing London high society and social institutions. John Toland wrote "Christianity and Mysterious" on deism. "Puss in Boots", "Red Ridinghood", and "Cinderella" became available in print. There were many female poets, bookwriters, and playwrights. Anne Finch, later Vicountess Conway, wrote the philosophical book: "Principle of the Most Ancient and Modern Philosophy" to reconcile the new science with Christian belief. In it every creature had a body and a spirit. Mrs. Aphra Behn wrote "Oroonoko", one of the first novels. Basua Makin, governess of the little sister of Charles II wrote an essay to revive the education of women, arguing that women's activity in wartime showed that they were fit to be educated. Elizabeth Elstob, who studied Teutonic languages, was one of the founders of women's education. Mary Astell proposed a college for women. Some women painted portraits.

There were rigid censorship acts from 1662 to 1695. The first required that no one could print a book without first registering it with the Company of Stationers of London and having it licensed by appropriate authority: common law books by the Lord Chancellor or the Lord Keeper of the Great Seal, affairs of state and history books by the Secretaries of State, heraldry books by the Earl Marshall or Kings of Arms Garter, university books by the Chancellor or Vice Chancellor of either of the universities, and all others including divinity, physics, and philosophy by the Archbishop of Canterbury, or Bishop of London. Books could be imported only into London and not sold until approved by the Archbishop of Canterbury or Bishop of London after being opened and viewed by a scholar appointed by these bishops and a representative of the Company of Stationers. If heretical, seditious, scandalous, schismatic or otherwise dangerous or offensive, the importer could be punished. No one could print or import copies of any books without consent of the owner with right by letters patent. The penalty for not doing so was to forfeit 6s.9d. for each such book, of which the king would receive one half and the owner one half. Printers had to set their own name to the books they printed and also the name of the author or else forfeit such book. Only freemen of London who were members of the Company of Stationers could sell books. The Company of Stationers had the authority accompanied by a constable to search all houses and shops where they knew or had "probable reason" to suspect books were being printed. They could search houses of persons of other trades only by special warrant. They could examine books found to determine if they were licensed and, if not, to seize them. Justices could imprison offenders. The first offense by offending printers was to be punished by suspension from printing for three years, the second offense by permanent disallowance from printing, fine, imprisonment, and corporal punishment not extending to life or limb. This statute was enforced by frequent prosecutions, such as of publishers of pornographic books.

The only newspapers to appear between 1660 and 1679 were official government sheets. But in 1695 the requirement to license publications, including newspapers, was abolished, thereby giving some freedom to the press. Locke had argued for this freedom, stating "I know not why a man should not have liberty to print whatever he would speak and to be answerable for the one just as he is for the other..." In 1702 the first daily newspaper in the world came into existence in England. The Stationer's Company monopoly of printing also ended in 1695. Printing was not regulated and no longer criminal just because it was unauthorized. Printing could now be done in other places than London, York, Oxford, and Cambridge.

The rich got richer and the poor got poorer. Many successful merchants and manufacturers bought landed estates and established a line of country squires or baronets or even peers. The fashion started in the nobility and the richest mercantile families that their wives should become ladies of leisure. For workers though, there was constant underemployment. In periods of economic crisis industrial workers lost their jobs. Much work was seasonal. Anyone who could work most of the time was fortunate. Laboring and out- servants, who comprised one fourth of the population, and cottagers and paupers, who comprised another fourth of the population, had to spend more than they earned. The poor rate collected from the parishes for the cottagers and paupers was 3d. per week. There was an agricultural depression that was deepest in the 1680s after the collapse of a boom. It was the only bad depression experienced in peace time. There was famine in 1698.

Any person receiving relief from any parish and his family members cohabiting with him was required to wear a badge with a "P" which identified his parish. This was to differentiate them from idle, sturdy, and disorderly beggars who were not entitled to relief.

There were more poor people and, despite the poor laws, many became rogues or vagabonds or starved to death. Many went from parish to parish to build cottages and consumed all the wood there and then went to another parish. So the parishes were allowed by statute to remove any person coming to settle in any tenement under the value of ten pounds who was likely to be chargeable to it. They were then removed to the last parish were they had resided for at least forty days. Excepted were people temporarily moving to another parish to work at harvest time. The overall effect was to decrease the mobility of people. But a later statute permitted greater movement of poor people by allowing those who were poor for want of work to go to another parish where labor was wanted. They had to bring a certificate of their present parish membership to the new parish, where they could settle if they rented a tenement worth ten pounds a year or served in a parish office. Later, settlement had to be given to inhabitants paying its parish's rates, and unmarried inhabitants hired for one year, and apprentices bound by indenture. But parishes were displeased with the requirement to give settlements to these people because they feared they would become poor and need parish assistance, thereby increasing the rates to be paid.

Parish poor houses were converted into spinning schools to obtain an income. Parishes of large towns were combined to set up large workhouses, where the poor could be set to unskilled manufacture, but the managers lacked the character and education to make them work.

Because prisoners often died before trial and the poor prisoners became instructed in the practice of thievery in prison, they were set to work on materials provided to them at public expense. No parish was rated at more than 6d. per week for such. The president and governors of corporations oversaw rogues, vagrants, sturdy beggars, and idle or disorderly persons working in corporations or workhouses.

Assessments were made for building and repairing gaols in order to maintain the health and safe custody of the prisoners. Also, gaol fever, a virulent form of typhus, was so prevalent in the large prisons for criminals and debtors that it frequently spread through the adjacent towns. During some assizes, it killed sheriffs, lawyers, and justices.

In 1692, London lands were taxed for the relief of orphans. Churchwardens could seize the goods and chattels of putative fathers and mothers deserting bastard children.

>From 1691 to 1740, Societies for the Reformation of Manners prosecuted poor people for moral offenses.

All hackney coaches and stage coaches in all the realm became required to be licensed. The turnpike system came into use. Tolls were paid for road upkeep and repair by private companies. The local parishes ceased to have this responsibility. John Ogilby wrote the first road book based on actual surveys of the roads. Stage coaches cost a shilling for every five miles and went 40-50 miles a day. The trip from London to Oxford was twelve hours. The company of Coach and Coach Harness Makers was founded with the consent of the king. The body of a coach hung from the frame by leather braces. One axle pivoted for turns. Plate glass was used in the windows. Rivers improved so that most places were no more distant from navigable waters than a long day's haul on land.

The several post offices were put under the authority of one Postmaster General appointed by the king for the purpose of speed and safety of dispatches, which were carried by horseback. One sheet letter going less than 80 miles cost 2d., and more than 80 miles, 4d.

When the army was disbanded after the Restoration, its officers and soldiers were allowed return to their trades and their apprenticeships without serving the usual seven years. Parishes were required to provide for poor and maimed officers and soldiers who served Charles I or Charles II. The Royal Hospital founded by Charles as a home for veteran soldiers opened in 1692. Greenwich palace was converted to a hospital for seamen and their widows and children to encourage men to become seamen: mariner, seaman, waterman, fisherman, lighterman, bargeman, keelman, or seafaring man in the king's Navy. Also, children of disabled seamen were to be educated at the expense of the hospital.

Charles retained one regiment from which he started a small standing army, which slowly increased in size ever after. The army was primarily mercenary, as it had been in medieval times, with officers buying their commissions. Colonels were the proprietors of their regiments and captains were the proprietors of their companies. The soldiers were ill mannered, swearing and cursing and stealing, sometimes from peoples' homes, and intimidating people with their swords. The bayonet was invented to attach onto a gun, which were muzzle-loading with a match lock. So pikemen with their long spears became obsolete. Hand grenades and small explosive bombs came into use about 1670.

Explosives were also used in mines. Mines for coal became deeper as coal replaced the use of increasingly expensive wood charcoal for brewing and for brick, glass, and china manufacture. Flooding of coal, tin and copper mines became a problem. In 1698, Thomas Savery invented the Miner's Friend, a practical atmospheric steam engine without a piston.

There was resort to many devices to fund wars. The land tax was still the primary tax. The customs and excise taxes were often extended to more goods and wares. Sometimes there were duties imposed on marriages, births, and deaths. Also, hawkers, peddlers, and other trading persons going from town to town to other men's houses on foot or on horse carrying wares had to buy a license. There were also loans from privileged companies such as the Bank of England, East India Co., and the South Sea Co. Commissioners were appointed to take and state the account of all money in the public revenue. This discouraged the prevalent corruption of government officials and thereby the people were encouraged to pay their taxes.

The Goldsmiths loaned money to the king and to private persons and to the Exchequer. Receipts from Goldsmiths for storage in strong boxes had become a de facto paper currency. But when the Goldsmiths had no more money to lend, the Bank of England was founded in 1694 under whig auspices to provide money for war. It was the first institution to issue notes in excess of its total deposits. However, it was not allowed to lend money to the Crown without the consent of Parliament. It was incorporated as the first English joint-stock bank and had about 1,300 shareholders. These original subscribers were individuals from London from many walks of life, including well-to-do tradesmen and about 12% of whom were women: wives, widows, or spinsters. Not many corporations were original subscribers. Holders of at least 500 pounds could vote, of 2000 pounds could be directors, and of 4000 pounds could be Governor. The Bank issued notes payable to bearer and discounted bills, but these were not legal tender. It lent at 8% to the Crown and occasionally to corporations. Money was also borrowed by offering annuities on single lives. This was the first time the government borrowed directly from the public on a long- term basis.

In 1695 there was inflation due to over issue by the Bank because of inexperience, pressure from government, and the Bank's greed for business. After a dividend of 5% in 1695, the next year there was no dividend and so the bank stock price fell. In 1696, five pound and ten pound short term bonds were sold to the public. Also in that year was the first run on the bank. This occurred two days after clipped money lost currency; people wanted the new recoined money, but the Mint had not supplied the Bank with sufficient supplies. Interest instead of cash was given for notes. Cash was short for months. The Bank's credit was much shaken. It was then given a monopoly so that its notes would not have competition. Thereafter, its dividends were good - about 12% per year. Because of its monopoly, its dividends were about 3% above the current going rate of interest. About this time, Exchequer Bills, with interest, were started by the Exchequer and circulated by the Bank of England. They were frequently endorsed many times by successive holders.

The Bank simply took over from the goldsmiths its main everyday business of deposit; running cash note [cashier's note, specie note, cash note], which was payable on demand and normally did not bear interest; and drawn note [precursor to the check, but not on special paper]. The Bank gradually convinced many of its clients to use its "check" [cheque] paper when drawing. The check paper was unique to the Bank and embellished with distinctive scroll work to serve as an obstacle to fraud. Over time the running cash note tended to be for round sums of at least twenty pounds and multiples of five pounds. The Bank of England had a monopoly on issuing notes in the London area. Country banks arose and issued bearer notes payable on demand and interest-bearing notes in their areas. The Bank of England gave to its depositors the service of paying annually to a designee without further order.

A decision of the common law courts held that bills of exchange (written orders to pay a given a sum on a given date) were transferable to other people by successive endorsements. So long distance payments no longer had to be made in coin, with all the dangers of highway robbery.

The financial revolution of the 1690s meant that the merchant elite could invest in government bonds or company bonds at 5-6%, or London leases at 10%, as opposed to income from landed estates, which was under 3%. Shareholders were no longer personally liable for company losses. Interest on loans was no longer considered sinful as long as it was not oppressive. The greater ability to borrow spurred the growth of capitalism.