Anglo-Scottish War Loans

By Brian Mills

Published in print (with additional illustrations) in ‘Scripophily’, the journal of the International Bond & Share Society, November 1998

Copyright ã International Bond & Share Society 2001

Serendipity has recently uncovered two certificates for war loans, authorised within two weeks of each other, by opposing sides in the civil war that tore the British Isles apart 350 years ago. One of the loans was authorised by King Charles I on February 14 1644. The other was authorised on February 2 1644 by the Scottish Parliamant.

1638 saw the beginning of what is now often called the English Civil War, but was in reality a complex of interlocking factional armed struggles throughout the British Isles. King Charles I had succeeded to the English and Scottish thrones in 1625. In 1633 he decided that the English book of Common Prayer should be introduced in Scotland, a decision which led to rioting. In 1638 the Scottish Assembly drew up a National Covenant abolishing the Book of Common Prayer, and later abolished bishops. This act provoked military action by the English. A few months later, in 1640, the Scottish « Covenanters » invaded England and gained the upper hand, but the fighting was ended by a truce, and conservative Scottish nobles combined against the Scottish Covenanters.

1641 saw a rebellion in Charles’ third Kingdom, Ireland, and increasing disputes between the King and the bishops on the one hand and the English Parliament on the other. In January 1642 the King left London and, after fruitless negotiations, in August declared war on the English Parliament. He marched on London, but was forced back. Skirmishes and negotiations followed. In August 1643 the English Parliament made an alliance with the Scottish Covenanters, and the King made peace with Ireland. In January 1644 the Covenanters invaded England to join their Parliamentary allies, while the King’s supporters in Scotland armed themselves.

Major battles were fought in 1644 and 1645. Covenanters and Parliament beat the royalists at Marston Moor, royalists beat Parliament at Lostwithiel, Scottish royalists beat their compatriot Covenanters at Tippermuir, Parliament lost at Newbury, Parliament won at Naseby. In 1646 the King surrendered to the Scots and was handed over to the English Parliamentarians. The English Army began to rebel for lack of pay, the King escaped and made alliance with the Scots (who had discovered religious differences with the English), there was a rebellion in Wales, sections of the English Army mutinied, the Scots invaded England but were defeated by the Parliamentarian General Oliver Cromwell, the Army fell out with Parliament, Cromwell took command of the Army and occupied London. In 1649 a republic was declared and King Charles I was beheaded. Cromwell suppressed the rebellion in Ireland and in 1650 defeated the Scots, now led by King Charles II.

How was all this mayhem paid for ? In part by loans, some of them ‘forced’ by law of arms or moral pressure.

On February 2 1644, the Scottish Parliament passed an Act « for raising of Moneys for a present supply to the Armies sent to England and Ireland ». The loan certificate states that interest will be paid « conforming to the Laws of this Realme » but the rate is not specified – an indication that the loan was not commercial. Repayment was to be made, as a first priority, from money expected from England or from excise duties.

Just two weeks later, on February 14 1644, King Charles, encamped at Oxford, authorised the raising of a £100,000 loan « to resist and suppresse all such of our Subjects of Scotland, as have in a hostile manner already entered, or shall hereafter enter into this Kingdome ». Subscriptions were invited « as a free and voluntary expression of your Affections », though the demand does point out that the King is otherwise entitled to require personal military service, and also that, if the money is raised, his subjects will escape « the unrulinesse of Our Souldiers, which is now in present Agitation ». Two rather strong arguments ! « We promise to repay as soone as God shall enable Us .» We now know the outcome !

Copyright ã INTERNATIONAL BOND & SHARE SOCIETY 2001

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