Henry's government practiced a strict economy and he never exploited the growing wealth of the nation. He abhorred bloodshed and the sacrifice of men's lives. So he strove diligently to keep the peace, when possible by gifts of money, but otherwise with armed force. Foreign merchants with precious goods could journey safely through the land from fair to fair. These fairs were usually held in the early fall, after sheep-shearing and harvesting. Frankpledge was revived. No stranger could stay overnight (except for one night in a borough), unless sureties were given for his good behavior. A list of such strangers was to be given to itinerant judges.

Henry had character and the foresight to build up a centralized system of government that would survive him. He learned about the shires' and villages' varying laws and customs. Then, using the model of Roman law, he gave to English institutions that unity and system which in their casual patch-work development had been lacking. Henry's government and courts forged permanent direct links between the King and his subjects which cut through the feudal structure of lords and vassals.

He developed the methods and structure of government so that there was a great increase in the scope of administrative activity without a concurrent increase of personal power of the officials who discharged it. The government was self- regulating, with methods of accounting and control which meant that no official, however exalted, could entirely escape the surveillance of his colleagues and the King. At the same time, administrative and judicial procedures were perfected so that much which had previously required the King's personal attention was reduced to routine.

The royal household translated the royal will into action. In the early 1100s, there had been very little machinery of central government that was not closely associated with the royal household. Royal government was largely built upon what had once been purely domestic offices. Kings had called upon their chaplains to pen letters for them. By Henry II's reign, the Chancery was a highly efficient writing office through which the King's will was expressed in a flow of writs, and the Chancellor an important and highly rewarded official, but he was still responsible for organizing the services in the royal chapel. Similarly, the chamberlains ran the household's financial departments. They arranged to have money brought in from a convenient castle-treasury, collected money from sheriffs or the King's debtors, arranged loans with the usurers, and supervised the spending of it. It was spent for daily domestic needs, the King's almsgiving, and the mounting of a military campaign. But they were still responsible for personal attendance upon the King in his privy chamber, taking care of his valuable furs, jewels, and documents, and changing his bedlinens. There were four other departments of the household. The steward presided over the hall and kitchens and was responsible for supplying the household and guests with food supplies. The butler had duties in the hall and cellars and was responsible for the supply of wine and ale. The marshall arranged lodgings for the King's court as it moved about from palaces to hunting lodges, arranged the pay of the household servants, and supervised the work of ushers, watchmen, fire-tenders, messengers and huntsmen. The constable organized the bodyguard and escorts, arranged for the supply of castles, and mustered the royal army.

Henry brought order and unity by making the King's Royal Court the common court of the land. Its purpose was to guard the King's peace by protecting all people of free status throughout the nation and correct the disparity in punishments given by local courts. Heretofore, the scope of the King's peace had varied to as little as the King's presence, his land, and his highway. The royal demesne had shrunk to about 5% of the land. The Common Law for all the nation was established by example of the King's Royal Court.

A system of writs originated well-defined actions in the royal courts. This system determined the Royal Court's jurisdiction as against the church, lords, and sheriffs. It limited the jurisdiction of all other courts and subordinated them to the Royal Court. Inquests into any misdeeds of sheriffs were held, which could result in their dismissal.

Before Henry's reign, the church had become more powerful and asserted more authority. Henry tried to return to the concept of the King being appointed by God and as he head of the church as well as of the state, as in Henry I's time. Toward this end, he published the Constitutions of Clarendon. But the Archbishop of Canterbury, Thomas Becket, refused to agree to them. The disageement came to a head in Henry's attempt to establish the principle of "one law to all" by having church clerics punished by the civil courts as before, instead of having "benefit of clergy" to be tried only in ecclesiastical courts, even for secular crimes. Clerics composed about one-sixth the population. The church courts had characteristically punished with a fine or a penance, and at most defrocking, and never imposed a death penalty, even for murder. When Archbishop Becket was murdered and became a martyr, "benefit of clergy" became a standard right. Appeals could be made to the Pope without the King's permission. The King could take a criminal cleric's chattels, but not his life. However, though theoretically the bishops were elective, as a practical matter, the King appointed the bishops and the abbots.

Henry and Eleanor spoke many languages and liked discussing law, philosophy, and history. So they gathered wise and learned man about them, who became known as courtiers, rather than people of social rank. They lived in the great and strong Tower of London, which had been extended as had other castles, so that the whole castle and grounds were defended instead of just the main building. On the west were two strongly fortified castles surrounded by a high and deeply entrenched wall, which had seven double gates. Towers were spaced along the north wall and the Thames River flowed below the south wall. To the west was the city, where royal friends had residences with adjoining gardens near the royal palace at Westminster. The court was a center of culture as well as of government. The game of backgammon was played. People wore belts with buckles, usually brass, instead of knotting their belts.

London extended about a mile along the river and about half a mile inland. Most of its houses were two stories, the ground floor having booths and workshops, and the upper floor living space. Most of the houses were wooden structures. The richer merchants' and knights' houses were built of stone. Walls between houses had to be stone and thatched roofs were banned because there had been many fires. So roofs were tiled with red-brick tiles. There were over a hundred churches in the city, which celebrated feast days, gave alms and hospitality to strangers, confirmed betrothals, contracted marriages, celebrated weddings, conducted funerals, and buried the dead. Fish and no meat was eaten on Fridays and during lent. There was dark rye bread and expensive white wheat bread. Vegetables included onions, leeks, and cabbage. Fruits included apples, pears, plums, cherries, and strawberries. Water was obtained from streams running through the town to the river and from springs. There were craft guilds of bakers, butchers, clothworkers, and saddlers, as well as of weavers. Vendors, craftsmen, and laborers had their customary places, which they took up every morning. Some vendors walked the streets announcing their wares for sale.

In London, bells heralded the start and finish of all organized business. At sunset, the gates of the town were closed for the night. Only the rich could afford wax candles; others had home-made tallow or fat lights which smelled and gave off smoke. Most people washed their bodies. Few babies survived childhood. If a man reached 30, he could expect to live until age 50. The sellers of merchandise and hirers of labor were distributed every morning into their several localities according to their trade. Outside one of the gates, a horse market was held every week. They wore horseshoes made of iron or of a crude steel. In other fields, countryfolk sold pigs, cows, oxen and sheep. London Bridge was built of stone for the first time. It was supported by a series of stone arches standing on small man-made islands. It had such a width that a row of wood houses and a chapel was built on top of it. In the spring it was impassable by ships because the flow of water under it varied in height on either side of the bridge by several feet at half tide.