2. Be it also known that a man who is from the court of the king or the barons ought not to lodge in the house of any citizen of London for three nights, either by privilege or by custom, except by consent of the host. For if he force the host to lodge him in his house and there be killed by the host, let the host choose six from his relatives and let him as the seventh swear that he killed him for the said cause. And thus he will remain quit of the murder of the deceased towards the king and relatives and lords of the deceased.

3. And after he has entered the city, let a foreign merchant be lodged wherever it please him. But if he bring dyed cloth, let him see to it that he does not sell his merchandise at retail, but that he sell not less than a dozen pieces at a time. And if he bring pepper, or cumin, or ginger, or alum, or brasil wood, or resin, or incense, let him sell not less than fifteen pounds at a time. But if he bring belts, let him sell not less than a thousand at a time. And if he bring cloths of silk, or wool or linen, let him see that he cut them not, but sell them whole. But if he bring wax, let him sell not less than one quartanum. Also a foreign merchant may not buy dyed cloth, nor make the dye in the city, nor do any work which belongs by right to the citizens.

4. Also no foreign merchant with his partner may set up any market within the city for reselling goods in the city, nor may he approach a citizen for making a bargain, nor may he stop longer in the City.

Every week in London there was a folkmote at St. Paul's churchyard, where majority decision was a tradition. By 1032, it had lost much of its power to the husting [household assembly in Danish] court. The folkmoot then had responsibility for order and was the sole authority for proclaiming outlaws. It met three times a year at St. Paul's churchyard and there acclaimed the sheriff and justiciar, or if the king had chosen his officer, heard who was chosen and listened to his charge. It also yearly arranged the watch and dealt with risks of fire. It was divided into wards, each governed by an alderman who presided over the ward-mote, and represented his ward at the folk-mote. Each guild became a ward. The chief alderman was the portreeve. London paid one-eighth of all the taxes of England.

Later in the towns, merchant guilds grew out of charity associations whose members were bound by oath to each other and got together for a guild feast every month. Some traders of these merchant guilds became so prosperous that they became landholders. Many market places were dominated by a merchant guild, which had a monopoly of the local trade. In the great mercantile towns all the land and houses would be held by merchants and their dependents, all freeholders were connected with a trade, and everyone who had a claim on public office or magistry would be a member of the guild. The merchant guild could admit into their guild country villeins, who became freemen if unclaimed by their lords for a year and a day. Every merchant who had made three long voyages on his own behalf and at his own cost ranked as a thegn. There were also some craft guilds composed of handicraftsmen or artisans. Escaped bonded agricultural workers, poor people, and traders without land migrated to towns to live, but were not citizens.

Towns were largely self-sufficient, but salt and iron came from a distance. The King's established in every shire at least one town with a market place where purchases would be witnessed and a mint where reliable money was coined by a moneyer. There were eight moneyers in London. Coins were issued to be of value for only a couple of years. Then one had to exchange them for newly issued ones at a rate of about 10 old for 8 or 9 new. The difference constituted a tax. Roughly 10% of the people lived in towns. Some took surnames such as Tanner, Weaver, or Carpenter. Some had affectionate or derisive nicknames such as clear-hand, fresh friend, soft bread, foul beard, money taker, or penny purse. Craftsmen in the 1000s included goldsmiths, embroiderers, illuminators of manuscripts, and armorers.

Edward the Confessor, named such for his piety, was a king of 24 years who was widely respected for his intelligence, resourcefulness, good judgment, and wisdom. His educated Queen Edith, whom he relied on for advice and cheerful courage, was a stabilizing influence on him. They were served by a number of thegns, who had duties in the household, which was composed of the hall, the courtyard, and the bedchamber. They were important men - thegns by rank. They were landholders, often in several areas, and held leading positions in the shires. They were also priests and clerics, who maintained the religious services and performed tasks for which literacy was necessary. Edward was the first king to have a "Chancellor". He kept a royal seal and was the chief royal chaplain. He did all the secretarial work of the household and court, drew up and sealed the royal writs, conducted the king's correspondence, and kept all the royal accounts. The word "chancellor" signified a screen behind which the secretarial work of the household was done. He had the special duty of securing and administering the royal revenue from vacant benefices. The most important royal officers were the chamberlains, who took care of the royal bedchamber and adjoining wardrobe used for dressing and storage of valuables, and the priests. These royal officers had at first been responsible only for domestic duties, but gradually came to assume public administrative tasks.

Edward wanted to avoid the pressures and dangers of living in the rich and powerful City of London. So he rebuilt a monastic church, an abbey, and a palace at Westminster about two miles upstream. He started the growth of Westminster as a center of royal and political power; kings' councils met there. Royal coronations took place at the abbey. Since Edward traveled a lot, he established a storehouse-treasury at Winchester to supplement his traveling wardrobe. At this time, Spanish stallions were imported to improve English horses. London came to have the largest and best-trained army in England.

The court invited many of the greatest magnates and prelates [highest ecclesiastical officials, such as bishops] of the land to the great ecclesiastical festivals, when the king held more solemn courts and feasted with his vassals for several days. These included all the great earls, the majority of bishops, some abbots, and a number of thegns and clerics. Edward had a witan of wise men to advise him, but sometimes the King would speak in the hall after dinner and listen to what comments were made from the mead-benches. As the court moved about the country, many men came to pay their respects and attend to local business. Edward started the practice of King's touching people to cure them of scrofula, a disease which affected the glands, especially in the head and neck. It was done in the context of a religious ceremony.

The main governmental activities were: war, collection of revenue, religious education, and administration of justice. For war, the shires had to provide a certain number of men and the ports quotas of ships with crews. The king was the patron of the English church. He gave the church peace and protection. He presided over church councils and appointed bishops. As for the administration of justice, the public courts were almost all under members of Edward's court, bishops, earls, and reeves. Edward's mind was often troubled and disturbed by the threat that law and justice would be overthrown, by the pervasiveness of disputes and discord, by the raging of wicked presumption, by money interfering with right and justice, and by avarice kindling all of these. He saw it as his duty to courageously oppose the wicked by taking good men as models, by enriching the churches of God, by relieving those oppressed by wicked judges, and by judging equitably between the powerful and the humble. He was so greatly revered that a comet was thought to accompany his death.