The economy was still volatile due ostensibly to variable harvests, amount of gold and money in circulation, and balances of trade, and to periods of plague. Wages rose steadily. The rise in prices ended about 1650, and prices remained stable until about 1775. There was more mobility of people. Taxation became regular and it was controlled by representatives of the taxpayers. Population growth gradually stabilized.
Capitalism was coming into being. For instance, the clothier was now a manufacturer. He had become a contractor, taking wool to the specialist spinner, the yarn to the specialist weaver, the rough cloth to be washed and stretched, and finally to the dyer. This cloth was sold at retail by the drapers. Tin on the surface was exhausted, so capital was used to drive deep shafts in tin mines. No longer did a single man with a single ship sail around until he found a market, but company trading overseas had their ships, wharves, and depots furnished by men's savings put into a common stock. The first major capitalist industries were coal mining, iron mining, and foreign trade because they all needed large investments, and thus joint-stock company organization.
Cromwell reconstituted the East India Company on a wider and more permanent basis. He gave it a new charter in 1657 which included authority to make stock permanent, thus ensuring a continuity of capital. This solved the problem of the competition of overlapping voyages which still occurred despite their terms of several years. The company became one of the first permanent joint-stock companies. Now the stock was never wound up. The Company had permanent capital which could grow. The absence of competition among voyages made the Company stronger in the face of a common enemy, such as a rival trading country or Indian groups. The charter also authorized the company to fortify and colonize any of its establishments and to transport to them settlers, stores, and ammunition.
Later in 1657, the Company threw open the freedom of the Company to the public for a nominal sum of five pounds. Now the Merchant Adventurers and private traders could participate. It provided that dividends were to be paid only in cash and not in kind (goods). It also provided for appraisals of the Company's property to be made every three years, so any shareholders could redeem their shares proportionately. His shares would then be resold. People began to buy and sell their shares among each other. The Company made the minimum subscription 100 pounds. Each person holding 500 pounds worth of shares had one vote. Holding 1,000 pounds worth of shares qualified one for election to the committee of twenty-four. The seats of the members of this committee and of the Governor and Deputy Governor could no longer be permanent, but had limited and staggered terms. The continuity of capital took the place of the permanence of the governing body in providing stability. There was a regular scale of salaries for employees, and rules of conduct such as the one disallowing any clerk of the India House from going to play houses, dancing schools, or taverns. The Company established almshouses for its widows and orphans.
In 1657 the Muscovy Company, renewed its charter for trade in Russia and established a New General Stock. If a man bought a share, he bought freedom of the company. An annual dividend was declared from the annual profits.
Commercial men regularly kept accounts with bankers. Merchants used division to apportion profits or losses to the parties whose capital was involved. Simple and compound interest were used. The concept of contract became a familiar one.
Regular private bankers of London emerged from the Goldsmiths from 1640 to 1675. They issued bank notes and paid checks.
Cromwell increased trade by seizing territories, establishing colonies, and warring with competitors for master of the seas and trade. In 1649 it was provided that no one who paid his assessment for soldiers' pay would have to quarter any of them.
Authority was given in 1649 to impress seamen: mariners, sailors, watermen, surgeons, gunners, ship carpenters, caukers, coopers, whoymen, and carmen for carriage of victuals.
English ships were embellished with decoration. Their sail area was increased by triangular fore and aft sails. The Navy increased from 39 to 80 vessels.