Question for the history buffs

Miscellaneous History
1

Macaulay is describing the wild parties Charles II is having in 1660. He then writes:

At the same time a sudden fall of rents took place. The income of every landed proprietor was diminished by five shillings in the pound. The cry of agricultural distress rose from every shire in the kingdom; and for that distress the government was, as usual, held accountable. The gentry, compelled to retrench their expenses for a period, saw with indignation the increasing splendour and profusion of Whitehall, and were immovably fixed in the belief that the money which ought to have supported their households had, by some inexplicable process, gone to the favourites of the King.

Anyone know why that sudden fall of rents took place? Any info, links, educated guesses, appreciated.

2

No much of an idea, but there’s this bit:

“Charles II relied to a very large extent for his financial needs on loans from the London bankers. He ran heavily into debt and in 1672 suspended Exchequer payments and so the repayment of bankers’ advances. The King’s credit was ruined by this for several decades.”

…leading to the foundation of the Bank of England.

So, this guy spent lots of borrowed money. Assuming a stable money supply, the currency in circulation might be (relatively speaking) redirected into the royal-party related industries, away from others like agriculture. So… maybe there could be an effect like the one described.

My purely speculative 0.02$, without knowing anything else about the period.

3

Thanks Pete