The Sword of Gold: Sidney Godolphin and War Finance, 1702–1710

Abstract

Queen Anne's appointment of Sidney, Earl of Godolphin, as Lord Treasurer in 1702 was a fortunate choice for England. The country faced a war with France occasioned by the empty Spanish throne and the expansionist schemes of Louis XIV. England needed a man of ability in finance, experience in government, and credit with queen and country to handle home affairs and finance the armies of the allies on the continent. The Duke of Marlborough, head of England's armies, considered his friend Godolphin the only man for the task. He even threatened not to command English armies unless Godolphin took the Treasury post. Godolphin had opposed the war with France and had resigned from a Treasury post in 1701 for this reason, but in 1702 he accepted the white staff of Lord Treasurer at the insistence of his friend Marlborough.During the course of the War Of Spanish Succession Lord Godolphin used his exceptional talents to finance the military forces of England—land and sea—and to provide large amounts of money for the military expenses of England's allies in the conflict. He was successful while Louis XIV's efforts to accomplish the same ends by some of the same means failed.Godolphin possessed expertise and long experience in national finance, holding responsible Treasury positions in the reigns of Charles II, James II, and William III, before becoming Queen Anne's Lord Treasurer. Recognizing the advantages that the Bank of England could provide for national finance, he had helped push the proposal for its establishment through the House of Lords in the face of strong opposition in 1694. He had also favored a Land Bank that eventually came to naught. Seeing the value of exchequer bills in expanding the nation's money system during William III's reign, he made extensive use of this novel idea in financing Queen Anne's war.