There was no difference between the national revenue and the royal revenue in Wolsey's days. The king took all the money he could get, and spent it as he thought good; if he went to war he expected his people to pay for it. In an ordinary way the king was well provided for by his feudal dues and the proceeds of customs, tonnage and poundage, and the tax on wool, wool-fells, and leather. When extraordinary expenses were incurred Parliament was summoned, and granted taxes to the king. Their vote was reckoned on an old assessment of tenths and fifteenths of the value of chattels possessed by the baronage and the commons; and when Parliament made this grant the clergy in their convocation granted a tenth of clerical incomes. The value of a tenth and fifteenth was £30,000; of a clerical tenth £10,000; so that the usual grant in case of an emergency amounted to £40,000 from the whole realm. For his expedition of 1513 Henry obtained a vote of two tenths and fifteenths, besides a subsidy of a graduated income and property tax which was estimated to produce £160,000, and this had to be supplemented by a further grant of tenths and fifteenths in 1515.
It was in 1515 that Wolsey became Chancellor, and with that office assumed the entire responsibility for all affairs of state. He managed to introduce some order into the finances, and during the years of pacific diplomacy things went tolerably well. But the French expeditions were costly, and in April 1523 Parliament had to be summoned to pay the king's debts. The war against France was popular, and men were willing to contribute.
So on 15th April Henry VIII. opened Parliament, and Tunstal, Bishop of London, delivered the usual oration in praise of the king and grief over the evils of the time. The Commons departed, and elected as their Speaker Sir Thomas More, who had already abandoned the quiet paths of literature for the stormy sea of politics. The king's assent was given in the usual manner to his appointment, and the session was adjourned. The Commons doubtless began to take financial matters under their consideration, but it was thought desirable that they should have a definite statement of the national needs. On 29th April Wolsey went to the House, and after urging the importance of the interests at stake in the war, proposed a subsidy of £800,000, to be raised according to an old method, by a tax of four shillings in the pound on all goods and lands. Next day there was much debate on this proposal; it was urged that the sudden withdrawal of so large an amount of ready money would seriously affect the currency, and was indeed almost impossible. A committee was appointed to represent to Wolsey that this was the sense of the House, and beg him to induce the king to moderate his demands. Wolsey answered that he would rather have his tongue pulled out with red-hot pincers than carry such a message to the king.
The Commons in a melancholy mood renewed their debate till Wolsey entered the House and desired to reason with those who opposed his demands. On this Sir Thomas More, as Speaker, defended the privilege of the House by saying, "That it was the order of that House to hear and not to reason save among themselves." Whereupon Wolsey was obliged to content himself with answering such objections as had come to his ear. He argued, it would seem with vigour, that the country was much richer than they thought, and he told them some unpleasant truths, which came with ill grace from himself, about the prevalence of luxury. After his departure the debate continued till the House agreed to grant two shillings in the pound on all incomes of £20 a year and upwards; one shilling on all between £20 and £2; and fourpence on all incomes under £2; this payment to be extended over two years. This was increased by a county member, who said, "Let us gentlemen of £50 a year and upwards give the king of our lands a shilling in the pound, to be paid in two years." The borough members stood aloof, and allowed the landholders to tax themselves an extra shilling in the pound if they chose to do so. This was voted on 21st May, and Parliament was prorogued till 10th June. Meanwhile popular feeling was greatly moved by rumours of an unprecedented tax, and what was really done was grossly exaggerated on all sides. As the members left the House an angry crowd greeted them with jeers. "We hear say that you will grant four shillings in the pound. Do so, and go home, we advise you." Really the members had done the best they could, and worse things were in store for them. For when the session was resumed the knights of the shire showed some resentment that they had been allowed to outdo the burgesses in liberality. They proposed that as they had agreed to pay a shilling in the pound on land assessed over £50 in the third year, so a like payment should be made in the fourth year on all goods over the value of £50. There was a stormy debate on this motion; but Sir Thomas More at length made peace, and it was passed. Thus Wolsey, on the whole, had contrived to obtain something resembling his original proposal, but the payments were spread over a period of four years. After this Wolsey, at the prorogation of Parliament, could afford to thank the Commons on the king's behalf, and assure them that "his Grace would in such wise employ their loving contribution as should be for the defence of his realm and of his subjects, and the persecution and pressing of his enemy."
Yet, however Wolsey might rejoice in his success, he knew that he had received a serious warning, which he was bound to lay to heart. He had been faithful to the king, and had done his best to carry out his views. The war with France was none of his advising, and he had no hopes of any advantage from it; yet he was willing to take all the blame of measures which inwardly he disapproved. He stood forward and assumed the unpopularity of taxation, whose necessity he deplored. Henry spent the nation's money at his pleasure, and Wolsey undertook the ungrateful task of squeezing supplies from a reluctant Parliament, while the king sat a benevolent spectator in the background. Henry took all the glory, and left Wolsey to do all the unpleasant work. Wolsey stood between the national temper and the king; he felt that he could not stand under the odium of accomplishing many more such reconciliations. England had reached the limit of its aspirations after national glory. For the future Wolsey must maintain the king's honour without appealing to the national pocket.
There was no prospect of obtaining further supplies from Parliament, and the best way to pay the expenses of a futile war was by making a lucrative peace. Wolsey tried to induce Francis I. to renew his financial agreement with Henry VIII. which the war had broken off; and to bring pressure to bear upon him for this purpose, was willing to continue with Charles V. negotiations for a fresh undertaking.
So in June the unwearied Pace was sent to Bourbon's camp to promise England's help on terms which Wolsey knew were sure to be refused. England would again join in a campaign against France in the north, provided Bourbon, by an invasion of Provence, succeeded in raising a rebellion against Francis I., and would take an oath of allegiance to the English king as lord of France. Bourbon sorely needed money, and did all he could to win over Pace. He secretly took an oath of fidelity, not of allegiance; and Pace was impressed with admiration of his genius and believed in his chances of success. Wolsey was coldly cautious towards Pace's enthusiasm, and the result was a breach between them. Pace openly blamed Wolsey, as Wingfield had done before, and pressed for money and an armed demonstration. Wolsey soberly rebuked his lack of judgment by setting before him a well-considered survey of the political chances. His caution proved to be justified, as Bourbon's invasion of Provence was a failure. Wolsey gained all that he needed by his pretence of helping Bourbon; he induced the French Court to undertake negotiations seriously by means of secret envoys who were sent to London.
Still Wolsey did not hide from himself the difficulties in the way of an alliance with France which would satisfy Henry VIII. or bring substantial advantage to the country. However, on one point he managed to obtain an immediate advantage. He always kept his eye on Scotland, and now used the first signs of returning friendliness on the part of France to further his scheme of restoring English influence in that country. In June the Duke of Albany was recalled to France, and Wolsey set to work to win back Queen Margaret to her brother's cause. He seems to have despaired of blandishments, and contrived a way to have a more powerful weapon. Margaret's husband, the Earl of Angus, had been sent by Albany to France, where he was carefully guarded. On the first signs of renewed friendliness between England and France a hint from Wolsey procured him an opportunity of escaping to England. With Angus at his disposal Wolsey urged Margaret to be reconciled to her husband, and terrified her by the prospect of alternately restoring him to Scotland. By playing cleverly on her personal feelings, Wolsey led her by degrees to accept his own plan for freeing Scotland from Albany and French interference. He urged that the young king was now old enough to rule for himself, and promised Margaret help to secure her supremacy in his council. At the same time he won over the Scottish lords by the prospect of a marriage between James and Mary of England, who was still Henry VIII.'s heir. In August James V. was set up as king, and the Scottish Parliament approved of the English marriage. Again Wolsey won a signal triumph, and accomplished by diplomacy what the sword had been unable to achieve.
We need not follow the complicated diplomacy of the year 1524, which was transferred to Italy, whither Francis I. had pursued Bourbon and was engaged in the siege of Pavia. It is enough to say that Wolsey pursued a cautious course: if Francis won the day in Italy he was ready to treat with him liberally: if the imperial arms prevailed, then he could sell England's alliance more dearly. But this cautious attitude was displeasing to Charles, whose ambassador in London, De Praet, complained without ceasing of the growing coldness of Henry and Wolsey. Wolsey kept a sharp watch on De Praet, and resented his keen-sightedness; finally, in February 1525, De Praet's despatches were intercepted, and he was called before the Council, when Wolsey charged him with untruth. De Praet answered by complaining that his privileges as an ambassador had been violated. He was ordered to confine himself to his own house till the king had written to the Emperor about his conduct.
This was indeed an unheard-of treatment for the ambassador of an ally, and we can scarcely attribute it merely to personal spite on the part of so skilled a statesman as Wolsey. Perhaps it was a deliberate plan to cause a personal breach between Henry and the Emperor. No doubt Henry's own feelings were towards Charles rather than Francis, and it seems probable that Wolsey wished to show his master that Charles was only trying to make use of his friendship for his own purposes. The despatches of Charles's envoy were opened and their contents made known to Henry for some time before Wolsey took any open action. He acted when he saw his master sufficiently irritated, and he probably suggested that the best way to give Charles a lesson was by an attack upon his ambassador. This proposal agreed with the high-handed manner of action which Henry loved to adopt. It gave him a chance of asserting his own conception of his dignity, and he challenged Charles to say if he identified himself with his ambassador's sentiments.