Money, Prices and Wages Palgrave Studies in the History of Finance Series Editors: Adrian R. Bell, D’Maris Coffman, and Tony K. Moore The study of the history of financial institutions, markets, instruments and concepts is vital if we are to understand the role played by finance today. At the same time, the methodologies developed by finance academics can provide a new perspective for historical studies. Palgrave Studies in the History of Finance is a multi-disciplinary effort to emphasise the role played by finance in the past, and what lessons historical experiences have for us. It presents original research, in both authored monographs and edited collections, from historians, finance academics and economists, as well as financial practitioners. Titles include : Martin Allen, D’Maris Coffman MONEY, PRICES AND WAGES Ali Kabiri THE GREAT CRASH OF 1929 Stuart J. Barton POLICY SIGNALS AND MARKET RESPONSES Guy Rowlands DANGEROUS AND DISHONEST MEN: THE INTERNATIONAL BANKERS OF LOUIS XIV’S FRANCE Duncan Needham UK MONETARY POLICY FROM DEVALUATION TO THATCHER, 1967–1982 D’Maris Coffman EXCISE TAXATION AND THE ORIGINS OF PUBLIC DEBT Palgrave Studies in the History of Finance series Series Standing Order ISBN: 978–1–137–34224–9 ( outside North America only ) You can receive future titles in this series as they are published by placing a standing order. Please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address, the title of the series and the ISBN quoted above. Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England Money, Prices and Wages Essays in Honour of Professor Nicholas Mayhew Edited by Martin Allen Senior Assistant Keeper, Fitzwilliam Museum, University of Cambridge, UK and D’Maris Coffman Fellow, Newnham College, UK Editorial matter, selection and introduction © Martin Allen and D’Maris Coffman 2015 Remaining chapters © Respective authors 2015 Softcover reprint of the hardcover 1st edition 2015 978-1-137-39401-9 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2015 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries ISBN 978-1-349-48377-8 ISBN 978-1-137-39402-6 (eBook) DOI 10.1057/9781137394026 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. Contents List of Figures vii List of Tables ix Notes on Contributors x i List of Abbreviations x iii Introduction 1 Martin Allen and D’Maris Coffman 1 Coin Finds and the English Money Supply, c. 973–1544 7 Martin Allen 2 National Income in Domesday England 24 James T. Walker 3 Modelling the Medieval Economy: Money, Prices and Income in England, 1263–1520 51 Mark Casson and Catherine Casson 4 Prices from the Durham Obedientiary Account Rolls, 1278–1367 74 Elizabeth Gemmill 5 Credit, Crisis and the Money Supply, c. 1280– 1330 94 Phillipp Schofield 6 Finance on the Frontier: Money and Credit in Northumberland, Westmorland, and Cumberland, in the Later Middle Ages 109 Pamela Nightingale 7 Money and Rural Credit in the Later Middle Ages Revisited 129 Chris Briggs 8 T he Morality of Money in Late Medieval England 143 James Davis 9 Labour Turnover and Wage Rates on the Demesnes of Durham Priory, 1370–1410 158 Richard Britnell v vi Contents 10 A Golden Age Rediscovered: Labourers’ Wages in the Fifteenth Century 1 80 C hristopher Dyer 11 C orn Prices, Corn Models and Corn Rents: What Can We Learn from the English Corn Returns? 1 96 D ’Maris Coffman and David Ormrod 12 L ondon’s Market for Bullion and Specie in the Eighteenth Century: The Roles of the London Mint and the Bank of England in the Stabilization of Prices 211 A nthony C. Hotson and Terence C. Mills 13 M onetary Trends in the UK since 1870 2 28 N icholas Dimsdale Publications of Nicholas Mayhew 250 Bibliography 2 56 Index 277 List of Figures 1.1 Annual values of finds in Kelleher’s data 22 3.1 Causal structure of the model 59 3.2 Actual, fitted and residual graphs for price regression, 1263–1520 6 4 3.3 Actual, fitted and residual graphs for income per head equation, 1263–1520 68 3.4 Actual, fitted and residual graphs for wage regression, 1263–1520 6 8 6.1 The debts of Northumberland, Cumberland and Westmorland in C.241 certificates, 1285–1318 114 6.2 The credit of Northumberland and Westmorland, 1285–1309 1 15 6.3 The debts of Northumberland, Cumberland and Westmorland, 1310–1529 118 6.4 The credit of Northumberland and Cumberland, 1310–1529 1 19 11.1 Gross revenues from different excisable items, 1695–1825 2 01 11.2 RBT agricultural rents compared with TBA, Clark and Kerridge 2 05 11.3 The rise of the rural-urban fringe, 1600–1900, low-rented farmland 206 11.4 The rise of the urban-rural fringe, 1600–1900: industrial, commercial and residential rents, 1780–1914 207 12.1 Sterling bullion prices in London from May 1718 to January 1792 2 12 12.2 Silver specie and bullion prices: coin premium 213 12.3 Foreign specie spreads over bullion price 214 12.4 Market price/mint price 215 12.5 Gold/silver price ratio 215 12.6 Sterling currency crisis, 1695 216 12.7 Newton’s currency reforms of 1717–18: gold price stabilization 2 17 12.8 Silver prices: market price remains at premium to mint price 2 17 12.9 Sterling gold bullion price in London 220 12.10 English mint output 221 vii viii List of Figures 12.11 Impulse responses and variance decompositions: gold bullion – silver bullion 225 12.12 Impulse responses and variance decompositions: gold specie – silver specie 225 12.13 Impulse responses and variance decompositions: gold bullion – gold specie 226 12.14 Impulse responses and variance decompositions: silver bullion – silver specie 226 13.1 Rate of growth of nominal GDP and broad money M3/M4 231 13.2 Rate of growth of broad money M3\M4 and the monetary base 233 13.3 Income velocity of circulation of broad money and the long-term interest rate 234 13.4 Short-term interest rate and the rate of inflation 236 13.5 Real short-term interest rate 237 13.6 Short-term and long-term interest rates 238 13.7 Rate of change of consumer prices and import prices 240 13.8 Rate of change of money wages and unemployment 241 13.9 The sterling-dollar exchange rate 242 13.10 Rate of growth of credit and nominal GDP 245 13.11 Ratio of credit to nominal GDP 246 List of Tables 1.1 S ingle coin finds of c. 973–1100 in Allen and Naismith data 9 1.2 S ingle coin finds of 1066–1180 in Allen and Kelleher data 1 0 1.3 S ingle coin finds of 1180–1544 in Rigold, Mayhew and Kelleher data 1 1 1.4 P ercentages of denominations in Kelleher data from PAS 1 2 1.5 V alues of coin finds in Kelleher data from PAS 1 2 1.6 P ence and sterlings in English hoards 1 5 1.7 H alfgroats in English hoards 1 6 1.8 G roats and double patards in English hoards 1 7 1.9 G old coins in English hoards 1 8 1.10 E stimated periods of circulation of coins, 1279–1544 1 9 1.11 E stimates of percentages of finds lost in each period, 1279–1544 19 1.12 A djusted values of finds in Kelleher’s PAS data 2 0 1.13 A djusted annual values of finds in Kelleher’s PAS data 2 0 1.14 E stimates of the English currency, 1158–1544 2 1 2.1 S ummary of Domesday income estimate 3 0 2.2 C alculating the values of ‘other’ resources 3 1 2.3 T he value–resources relationship, 1086 3 5 2.4 L ivestock estimates 38 2.5 C omparative estimates of Domesday income with the 1300 benchmark 45 3.1 Z ero-order Pearson correlation coefficients between key variables 53 3.2 A utocorrelations of key variables 5 4 3.3 A ugmented Dickey-Fuller tests for key variables 5 6 3.4 S ummary of impacts in the SEM 6 1 3.5 D eterminants of logarithm of price index, 1263–1520 6 3 3.6 E stimation of full system, 1273–1470 6 6 4.1 W ine, cheese, wax, wool, canvas, linen and russet cloth 7 6 4.2 F ish prices and livestock 8 0 4.3 M inerals and metals 8 4 7.1 D ebts in money and debts in kind claimed in six manor courts, 1291–1480 1 33 9.1 S taff at Houghall, 1376/7 1 59 ix