||This article includes a list of references, but its sources remain unclear because it has insufficient inline citations. (February 2011)|
Ship money refers to a tax that Charles I of England tried to levy without the consent of Parliament. This tax, which was applied only to coastal towns during a time of war, unfairly charged people living near the coast as Charles I claimed that he owned the sea so he charged the people for using it regardless of their profession. As long as they lived within 15 miles of the coast they would be taxed. The collection of the tax inland during peacetime started in 1634 and provoked increasing resistance by 1636. This conflict was one of the causes of the English Civil War.
The Plantagenet kings of England had exercised the right of requiring the maritime towns and counties to furnish ships in time of war; and the liability was sometimes commuted for a money payment.
Notwithstanding that several statutes of Edward I and Edward III had made it illegal for the crown to exact any taxes without the consent of parliament, the prerogative of levying ship money in time of war had never fallen wholly into abeyance, and in 1619 James I aroused no popular opposition by levying £40,000 of ship money on London and on other seaport towns.
In 1628 Charles I attempted to levy ship money on every county in England, issuing writs requiring £173,000 to be returned to the exchequer. This was the first occasion when the demand for ship-money aroused serious opposition. Charles' requests to sheriffs were rejected by the overburdened inland populations; Lord Northampton, Lord-Lieutenant of Warwickshire, and the Earl of Banbury in Berkshire, refused to assist in collecting the money; and Charles withdrew the writs.
In 1634, Charles made a secret treaty with Philip IV of Spain to assist him against the Dutch. To raise funds for this assistance William Noy, the Attorney-General, suggested that a further resort should be had to ship money. Noy set himself to investigate such ancient legal learning as was in existence in support of the demand, and unearthed old records of ship money in the Tower of London; some historians, such as Hallam, have seen Noy's investigations as evidence that before Charles' levying of ship money the tax had been disused and forgotten for centuries.
The King having obtained an opinion in favour of the legality of the writ from Lord Keeper Coventry and the Earl of Manchester, the writ was issued in October 1634 and directed to the justices of London and other seaports, requiring them to provide a certain number of ships of war of a prescribed tonnage and equipment, or their equivalent in money, and empowering them to assess the inhabitants for payment of the tax according to their substance.
Three writ attempts
The distinctive feature of the writ of 1634 was that it was issued, contrary to all precedent, in time of peace. Charles desired to conceal the true aim of his policy, which he knew would be detested by the country, and he accordingly alleged as a pretext for the impost the danger to commerce from pirates, and the general condition of unrest in Europe.
The citizens of London immediately claimed exemption under their charter, while other towns argued as to the amount of their assessment; but no resistance on constitutional grounds appears to have been offered to the validity of the writ, and a sum of £104,000 was collected.
On October 9, 1635, a second writ of ship tax was issued, directed on this occasion, as in the revoked writ of 1628, to the sheriffs and justices of inland as well as of maritime counties and towns, demanding the sum of £207,000,003 which was to be obtained by assessment on personal as well as real property, payment to be enforced by distress.
This demand excited growing popular discontent, which now began to see in it a determination on the part of the King to dispense altogether with parliamentary government. Charles, therefore, obtained a written opinion, signed by ten out of twelve judges consulted, to the effect that in time of national danger, of which the Crown was the sole judge, ship money might legally be levied on all parts of the country by writ under the Great Seal.
The issue of a third writ of ship money on 9 October 1636 made it evident that the ancient restrictions that limited the levying of the tax to the maritime parts of the Kingdom and to times of war (or imminent national danger) had been finally swept away, and that the King intended to convert it into a permanent and general form of taxation without parliamentary sanction. The judges again, at Charles's request, gave an opinion favourable to the prerogative, which was read by Lord Coventry in the Star Chamber and by the judges on assize.
Payment was, however, refused by John Hampden, a wealthy Buckinghamshire gentleman (landowner). The case against the latter (Rex v. Hampden, 3 State Trials, 825) was heard before all the judges in the Court of Exchequer Chamber, Hampden being defended by Oliver St John. Hampden lost the case, 7 judges to 5, and ship money continued to be levied, provoking yet more opposition, until, overtaken by events, it was repealed by the Long Parliament. The narrowness of the case also encouraged others to refuse the tax, and by 1639, less than 20% of the money demanded was raised. Even so, ship money was enough of a financial success to help Charles to meet peacetime government expenditures in the 1630s. As matters deteriorated in the kingdoms starting with the Bishops' War, ship money would prove insufficient to finance the king's military needs.
- Keir, D.L. "The Case of the Ship-Money" 52 Law Quarterly Review, (1936) pp546.
- Mendle, Michael. The Ship Money Case, The Case of Shipmony, and the Development of Henry Parker's Parliamentary Absolutism. The Historical Journal, Vol. 32, No. 3 (Sep., 1989), pp. 513-536.
- Gross, David (ed.) We Won’t Pay!: A Tax Resistance Reader ISBN 1-4348-9825-3 pp. 9-16