Ordinance of the Jewry

When Richard I of England was kidnapped coming back from the Third Crusade, the ransom was going to be enormous: 100,000 pounds of silver. This was 2-3 times the annual income to the English crown from taxation. Richard's mother, Eleanor of Aquitaine, worked hard to raise the money. Churches were taxed for one-quarter of the value of their property. William Longchamp, Richard's chancellor, raised 5000 marks from the Jewish community of England alone, which was more than three times what the City of London was required to offer.

When Richard got back to England, he looked at an anti-semitic massacre that happened in York, and decided to do something about it. That situation seemed to have been started deliberately by Christians who owed money to Jews and chose to start a pogrom to avoid having to settle their debts properly.

To be fair, Richard saw such situations as financial losses for himself. Lost revenue of a citizen meant being able to tax that citizen less. Richard decided that all transactions with Jews needed to be recorded by the Exchequer. His Ordinance of the Jewry in 1194 led to a new division of the Royal Exchequer called the Exchequer of the Jews.

This Exchequer required each transaction to be documented with a chirograph (literally "hand-written"). One part would be kept by the creditor, one part would be kept at the Exchequer. The benefit to the Jewish creditor was that a record of the debt was stored in a safe place and the person to whom the money was leant could not get out of repayment. There was a benefit for the Crown, as well. All transactions were liable to taxation. Moreover, Richard mandated to receive 10% of all debts collected with the aid of his courts. Curiously, with the king acting as "silent partner" to Jewish moneylenders, they had an advantage over Christian moneylenders whose accounts were not protected by the Exchequer. 

The Exchequer expanded beyond just debts, which we can look at tomorrow.