The role of the Exchequer against the “new” chamber

Exchequer
- Since 12th century, centre of the crowns financial
administration had been the Exchequer.
- This had TWO functions. Receive store money, pay out
money, audit accounts.
- Complex hierarchy of officials.
- System was slow and cumbersome.
- Outstanding sums can take years to collect.
- Audits being equally slow.

The Chamber
- A more informal and flexible system than the exchequer.
- Originated from the accounting system used on the estates
of great nobles who appointed auditors and receivers.
- Auditors = Financial officials who counted and wrote down
figures in an account book
- Receivers = Financial officials who collected and stored
money on behalf of the king
- Edward IV used this practice in the royal estates from the
start of his reign in 1461

What did Henry VII initially do?

- When Henry VII became king, in the first two years he did
not have the experience nor the time to continue this practise
- It was in his personal chamber, and he signed off every single amount counted that came into accounts
(see image)
- The exchequer resumed control of the royal finances
- It is questioned that Henry VII may have later regretted this, as he admitted his accounts had fallen into
‘great decay’.
- We can see this in the decline of the accounts, where Richard III had brought an income of £25,000 p.a.
and Henry VII only brought in £12,000 p.a. in 1486

Henry VII Reorganises the Royal Household

- From 1487 Henry VII gradually began to restore the Chamber system to its former position as the most
important institution of financial administration.
- By the 1490s it was once again the centre of royal finance, handling an annual turnover of well over
£100,000 pounds (£4 million in today’s currency).
- It dealt with the transfer of revenue from feudal dues, crown lands, Profits of justice, The French
Pension But NOT customs duties and the account of the sheriff’s.