Henry wanted to check this power of the barons. So he took over or demolished their adulterine castles and restored the older obligation of every freeman to serve in defense of the realm, the fyrd, which was a military draft. At the King's call, barons were to appear in mail suit and helmet with sword and horse, knights and freeholders with 213s.[16 marks] of rent or chattels in coat of mail with shield and lance, freeholders of 133s.[10 marks] with lance and hauberk [coat of armor] and iron headpiece, burgesses and poorer freemen with lance and headpiece and wambais, and such as millers with pike and leather shirt. The spiritual and other baronies paid a commutation for personal service, called "scutage", at the rate of 27s. per knight's fee. Barons and knights paid according to their knight's fee a scutage ranging from 10s. to 27s. As of 1181, the military obligations of villeins were defined. The master of a household was responsible for every villein in his household. Others had to form groups of ten and swear obedience to the chief of the group. The sheriff was responsible for maintaining lists of men liable for military service and procuring supplies. This national militia could be used to maintain the peace. The sheriff could call upon the military array of the county as a posse comitatus to take a band of thieves into custody or to quell disorder. For foreign wars, Henry decided to use a mercenary army and a mercenary fleet.
However, the nobility who were on the borders of the realm had to maintain their private armies for frequent border clashes. The other nobility now tended towards tournaments with mock foot battles between two sides. Although subject to knightly rules, serious injury and death often resulted. For this reason, the church opposed them, but unsuccessfully.
New taxes replaced the Danegeld tax. Freeholders of land paid taxes according to their plowable land ("hidage", by the hide, and later "carucage", by the smaller Norman carucate). The smaller measure curtailed estates and increased taxation. It was assessed from 2-5s. per carcuate [100 acres] and collected for the king by knights with little or no remuneration, and later by inquest of neighbors. The towns and demesne lands of the crown paid a tax based on their produce that was collected by the itinerant justices. Merchants were taxed on their personal property, which was determined by an inquest of neighbors. Clergy were also taxed. This new system of taxation increased the royal income about threefold. There was a standard for reliefs paid of 100s. [5 pounds] for a knight's fee and 2,000s. [100 pounds] for a barony. At the end of Henry's reign, his treasure was over 900,000 pounds. Every hide of land paid the sheriff 2s. annually for his services in the administration and defense of the county. This was probably the old Danegeld.
Barons and their tenants and sub-tenants were offered an alternative of paying shield money ["scutage">[ of 26s.8d. per fee in commutation for and instead of military service for their fiefs. This enabled Henry to hire soldiers who would be more directly under his own control and to organize a more efficient army.
Henry II restored the silver coinage to its standard of purity. The first great inflation in England occurred between 1180 and 1220. Most goods and services increased threefold over these forty years.
Great households, whether of baron, prelate, monastery, or college gave their officers and servants allowances of provisions and clothing called "liveries". The officer of such departments as the buttery [cellar storing butts of wine], the kitchen, the napery [for linen cloth], and the chandlery had his fixed allowances for every day and his livery of clothing at fixed times of the year or intervals of years.
The administration of a great estate is indicated by the Pipe Roll of the Bishopric of Winchester, 1208-1209, as follows:
"Downton: William FitzGilbert, and Joselyn the reeve, and Aylward the cellarer render account of 7 pounds 12s.11d. for arrears of the previous year. They paid and are quit. And of 3 pounds 2s.2d. for landgafol. And of 12d. by increment of tax for a park which William of Witherington held for nothing. And of 2s.6d. by increment of tax for half a virgate of land which James Oisel held without service. And of 19s. for 19 assize pleas in the new market. And of 10s. by increment of tax for 10 other assize pleas in the market this year. Sum of the whole tax 36 pounds 14s.8d. In quittance of one reeve, 5s. In quittance for repairing the bridge, 5s.; of one forester, 4s.; of two haywards from Downton and Wick, 4s.; of one hayward from Witherington, 20d.; of fourteen drivers from Downton, Wick, and Nunton, for the year, 28s.; of two drivers from Witherington for the year, 4s.4d.; of two drivers for half the year, 2s.; of one swineherd, of one neaterd, of one cowherd, for the year, 6s.; of three shepherds from Wick, Barford, and Nunton, for the year, 6s.; of one shepherd from Witherington, for the year, 20d.; of four customary tenants, for the year, 8s. Sum of the quittances, 74s.8d. Remainder 33 pounds.
Livery: For livery to John the dean, for Christmas tax, 7 pounds 10s. by one tally. To the same for Easter tax, 8 pounds by one tally. To the same for St. John's tax, 8 pounds by one tally. To the same for St. Michael's tax, 8 pounds 10s. by one tally. To the same for corn [grain] sold in the field 26 pounds by two tallies. To the same for standing corn [growing crops of grain], purchases, and cheeses, 20 pounds 16s.10d. To the same for wool, 6 pounds 13s.4d. by one tally. To the same for tallage 39 pounds by one tally. Sum: 134 pounds 10s.2d.
Expenses: For ironwork of 8 carts for year and one cart for half the year, 32s.10d. For shoeing of 2 plough-horses for the year, 2s.8d. For wheels for carts, 2s.9d. For 6 carts made over, 12d. before the arrival of the carpenter. For wages of the smith for the year, 8s.6d. For one cart bound in iron bought new, 5s.7d. For wheels purchased for one cart to haul dung, 12d. For leather harness and trappings, iron links, plates, halters, 14d. For purchase of 2 ropes, 3d. For purchase of 2 sacks, 8d. For purchase of 5 locks for the granary, 11d. For making 2 gates for the sheepfold, 2s. For one gate for the farm yard, 12d. For an axe and tallow purchased and for repairing the spindles of the mill for the year, 6s.10d. For one millstone purchased for the mill 24s. For making one gate near the mill, 12d. For meat prepared in the larder, 3s. For beer bought for cleaning carcasses, 2s.1d. For digging 158 perches of land around the pasture in the marsh, 32s.11d.; for each perch 2d.1ob. For the dovecote newly made, 22s.11d.1ob. For cutting 100 thick planks for flooring both dispensary and butlery, 6s.3d. For nails or pegs bought for planking beyond the cellar, 16d. For enclosing the garden by making 2 gates, 6s.7d.1ob. For digging in the gardens, 8s.5d. For the winter work of 55 carts, 9s.2d. For the Lent work of 49 carts, 8s.6d. For spreading 6 acres with dung, 6d. For threshing 24 quarters of wheat at Mardon for seed, 5s. For winnowing the same, 7d. For winnowing 36 quarters of grain for seed, 3s.9d. For threshing 192 quarters of grain 32s.; for each quarter 2d. For threshing 20 quarters of mixed corn [grain], 2s.6d. For threshing 42 quarters of barley, 3s.6d. For threshing 53 quarters of oats, 2s.2d.1ob. For hauling gravel to the bridge and causeway, 4d. For cost of dairy, viz., 3 tines of salt, cloth, and pots, 6s.10d. For purchase of 17 oxen, 5 pounds 13s. For hoeing 140 acres, 5s.10d. For wages of two carters, one neatherd, for the year, 9s. For wages of one carpenter for the year, 6s.8d. For wages of one dairy woman, 2s.6d. For payment of mowers of the meadow at Nunton, 6d. For 8 sheep purchased, 8s. For wages of one neatherd from Nunton, 12d. For carrying 2 casks of wine by Walter Locard, in the time of Martinmas, 8s.2d. For the carrying of 2 casks of wine from Southampton to Downton by the seneschal, 3s.6d. at the feast of St. Lawrence. For digging 22 perches in the farmyard, 6s.5d.; for each perch 3d.1ob. For allowance of food of Robert of Lurdon, who was sick for 21 days, with his man, 5s.3d. For allowance of food to Sewal who was caring for 2 horses of the lord bishop for 3 weeks, 21d. For allowance of food for Roger Walselin, for the two times he made gifts to the lord king at Clarendon, 4s.9d. by two tallies. For allowance of food of Master Robert Basset, for 3 journeys, 9s.3d.1ob. For livery of William FitzGilbert, 60s.10d. For 30 ells of canvas purchased for laying over the wool, and 2 cushions prepared for the court, 5s. For 8 sheep purchased, with lambs, 8s. Sum: 2 pounds.23d. Sum of livery and expenses: 159 pounds 12s.1d. And there is owing: 5 pounds 9s.4d.1ob.