[Sidenote: The Star Chamber]

Another instrument in the King's hands, invaluable for the purpose of holding barons and officials in check, was the institution which came to be known as the Star Chamber. [Footnote: Cf. Maitland in Social England, vol. ii., p. 655, ed. 1902; Busch, p. 267.] Beside the development of the House of Peers as the highest court of judicature in the realm, the development of the Great Council on similar lines had long been going on. The two bodies differed somewhat in this way—that the peers had the right of summons to the former, when the judges might be called in to their assistance; whereas there were ex officio members of the Council who were not peers, and considerable uncertainty prevailed as to the right of peers as peers to attend the Council. The customary powers of the Council arose from the need of a court too powerful and independent to be in danger of being intimidated or bribed by influence or wealth, able to penalise gross miscarriage of justice fraudulently procured, and to take in hand cases with which the ordinary courts would have had grave difficulty in dealing. In exercising this function the Council practically came to resolve itself into a judicial committee, meeting in a room known as the Star Chamber, and its authority was regularised by Act of Parliament in 1487. Absorbing into its hands offences in the matter of "maintenance" and "livery,"—i.e., broadly speaking, practices which the nobility had indulged in for the magnification of their households, and the provision of a military following—and being peculiarly subject to the royal influence, it was exceedingly useful to the King in keeping the baronage within bounds. Following, on the other hand, a procedure analogous to that of the ecclesiastical courts, unchecked by juries, and having authority to punish officers of the law whom it found guilty of illegal or corrupt practices, its influence was gradually extended, so that the fear of it guided the judgments of inferior courts. Under Henry VII., however, its functions were exercised at least mainly in the cause of justice—they were used, not abused—to the public satisfaction, as well as to the strengthening of the King's own hands. The moderation with which Henry used the powers he was accumulating concealed the latent possibility of the misuse of those same powers by a capricious or arbitrary monarch.

[Sidenote: Henry's use of Parliament]

Not less conspicuous is Henry's application of the same principles in his dealings with Parliament. He was careful, as we have seen, to secure for his own claims the sanction of the National Assembly, and to give due recognition to the authority of the estates of the realm. But he gave it no opportunity of acquiring powers of initiative, and he directed his financial policy to placing himself in such a position that he could escape that extension of its controlling powers, which naturally followed whenever a King found himself dependent on it for supplies. Throughout the first half of his reign he summoned frequent Parliaments, obtaining considerable grants on the pretext of foreign wars which were in themselves popular; but he turned the wars themselves to account by evading extensive military operations, and securing cash indemnities when peace was made. He even resorted, when a serious emergency arose, to benevolences, which were illegal; but he first secured the approval of the Council, which could still act to some degree as a substitute for Parliament when the Legislature was not in session, and he afterwards obtained the ratification of Parliament itself. By this means he obtained more than sufficient for the actual expenditure; in the meantime accumulating additional treasure by forfeitures from rebels and fines for transgression of the law. We have already observed his method of consistently resorting to pecuniary penalties as an apparently lenient form of punishment, which conveniently replenished his treasury. Thus, during the latter part of his reign, he was able to do without Parliaments almost entirely; supplementing his revenues through his agents Empson and Dudley, who made it their business to discover pretexts for enforcing fines under colour of law, and often with the flimsiest pretence of real justice.

[Sidenote: Financial exactions]

It was in this field that Henry overstepped his normal policy of not only working through the law but avoiding misuse of it. For the filling of Henry's treasury, the law was abused. The exactions of Empson and Dudley were made possible by the statute of 1495, empowering judges, upon information received, to initiate in their own courts trials of offenders who were supposed to have escaped prosecution through the corruption or intimidation of juries. Empson and Dudley being appointed judges found it an easy task to provide informers, who laid before them charges on which a case could be made out for fining the accused. In theory, of course, the King was not responsible, and the guilty judges paid the penalty with their lives early in the following reign. But the King did in fact get his full share of the discredit attaching; and perhaps his methods in this particular have been emphasised out of proportion to other traits in his character and policy by popular writers. There is some reason to doubt if Henry was ever quite fully aware of the extent to which these extortions were distortions of law; and there is no doubt at all that Empson and Dudley did not conduct their operations with a single eye to their master's benefit, but contrived to intercept ample perquisites on their own account. The statute was soon repealed under Henry VIII.

[Sidenote: Trade theories]

Modern economic theories depend for their validity on the postulates of the transferability of capital and of labour. In proportion to the limitation of the industries possible to a community, their laws apply, or fail to apply, within that community. The development of a new industry may be impossible, in the competition with established rivals, without artificial assistance—assistance given to that industry at the expense of the community at large; the preservation of an existing industry may demand like assistance. When the labour and capital employed can be transferred productively to another industry, it is obviously better that the transfer should take place, and the failing industry lapse, than that the community should be charged with maintaining an industry which cannot support itself —whether or no the competitors driving it out of the market are enabled to do so only by like extraneous assistance. When the capital and the labour cannot be transferred, but the industry can be maintained by assistance, the question becomes one of weighing the cost of maintenance to the community against the injury to the community from the collapse of the industry. Thus in any state with its commerce in the making, when the transferability of capital and labour is at best in dispute, the theory of buying in the cheapest market, wherever it is to be found, is not in favour. It is held better to raise the prices to the point at which the native product pays its native producers. In mediaeval times the foreigner was prima facie a person who came not to bring trade but to appropriate it. Hence he was subjected to regulations, limitations and charges for permission to carry on his operations. The next stage is reached when reciprocal free trade is recognised as an advantage and mutual concessions are made, restrictions and duties becoming, so to speak, implements of war, often enough proving two-edged.

[Sidenote: Henry's commercial policy]

Henry VII. was not an economist far in advance of the theories of his age; but economic considerations, as they were then understood, carried much more weight, and generally played a much larger part in his policy than was customary with the king-craft of the times, or with state-craft outside the commercial republic of Venice, the commercial association of German Free cities known as the Hansa or Hanseatic League, and the Netherlands. Accordingly we find him using every available means to obtain a footing in fresh foreign markets for the main English products of his day—wool and woollen goods; to secure for English merchants the rights and privileges which would enable them to compete on equal terms with the foreigner, and to curtail those privileges of the foreigner in England. In the matter of wool, the primacy of the English article was so thoroughly established that little extraneous aid was required. But with manufactured woollen goods the case was different, since the Flemings held the lead; and shipping also demanded artificial encouragement—first, because it was necessary to enterprise in the development of the export trade, at present largely carried on in foreign bottoms; second, because the King was, at least to some extent, alive to the strategic uses of a fleet which could be requisitioned for war purposes.