Portugal, Nicholas AP US History B6 September 19, 2013

Mercantilism and the Early American Colonies

It is not surprising that in the mid-18th century, the American colonists decision to protest against England was provoked by the pressures of the strict mercantilist policies imposed by the British. While the British were the first to regulate trade in the American colonies, the decision to generate revenue for the British navy and create a favorable balance of trade by increasing restrictions on manufacturing, shipping / controlling trade routes, and exporting / importing goods, influenced an important factor in the colonists growing dissent towards England, later evolving to become the American Revolution. The mercantilist policy of the Navigation Acts stated colonists were expected to produce raw materials and cash crops to trade with the British, while England would export these goods to other countries and hope to earn profit in gold and silver. Similarly, the colonists were not allowed to trade with colonies and countries besides those owned by the British. To begin, one of the primary motives of English mercantilism involved the building of a favorable balance of trade with the colonies. This statement refers to the obligation of a national government to sell more goods than what was bought. Consequently, if England achieved an exceptionally favorable balance of trade, the country could advance to become selfsufficient, wealthy, and develop a powerful army and navy. Since the American colonies harbored a profusion of raw materials to supply for England, they prompted the development of new markets where manufactured products were made. While the colonies produced similar goods to those in England, such as grain, fish, iron, and lumber, the British decided to bar them

from entering England. As a result, this made England more powerful by selling only British products and importing the most valuable colonial products, influencing the growth of a strong merchant fleet, and using the colonies as bases for the Royal Navy to operate upon. Furthermore, by 1700, several manufacturing restrictions were instituted by the British Parliament, forbidding colonists to export wool to bordering colonies, manufacture fur hats, or any products originating from iron sources. From the initial passing of the restrictions, colonists were not concerned, as they possessed no money or skilled workmen to establish independent industries in America, but later on, became a major source of discontent as trade monopolies flourished in England and further restrictions were imposed. Subsequently, the trade restrictions imposed by the British upon the colonists from 1651 to 1673 were pronounced in the Navigation Acts. First, the Navigation Act in 1651 required British colonists to lead trade only within British-owned vessels. Following this, the second Navigation Act in 1660 listed enumerated products to be shipped only to England, which included tobacco, cotton, and sugar, and these products were not to be sold to other countries without Englands approval. The third Navigation Act in 1663 required all colonists to buy the majority of their manufactured goods from England. If the colonists wished to purchase anything from foreign countries, the products had to be first sent to England, where they would be placed a high tariff upon them, also known as a duty, then would be sent on a British vessel across the Atlantic with protection from enemies and pirates. While the Navigation Acts placed several limitations upon the colonists, one positive outcome included the foundation of an American shipbuilding industry and merchant marine. By 1770, the industry was responsible for building about one-third of the vessels sailing under the British flag. Moreover, another important trade restriction instituted by the British included the Molasses Act of 1733, which stated all British

colonists were required to purchase sugar and molasses from the British West Indies, but not from any other producer of the two items, as they would be charged sixpence, or half-shilling tax per gallon on the importation of foreign molasses. Since the British West Indies only produced about an eighth of the amount of molasses needed by the colonists, they were obliged to illegally trade with producers in the neighboring Spanish, French, and Dutch islands. Next, the ideals of the American Revolution included the colonists discontent of the overwhelming restrictions and taxes imposed upon them. In the practice of mercantilist policies, restrictive policies of the Navigation, Molasses, and Sugar Acts, created much friction between England and the colonies by the dawn of the 18th century. The British colonists wanted to be able to trade with other European powers located in the West Indies, and since the British strictly prohibited trading anywhere other than England, the only way to get around such laws was to evade them illegally or rouse boycotts, which later became associated with the high levels of taxes imposed on British trades, such as tea. While the main economic factor leading to the American Revolution in the mid-18th century was taxes to generate revenue for Englands war debt and cost to govern the colonies. Following the Proclamation of 1763, at this point in time, the tension between the two lands intensified with the imposition of new taxes and tariffs. Over time, the British mercantilist policies created significant tensions between the thirteen colonies and England during the mid-17th and 18th centuries. The main motives of the English involved gaining a favorable balance of trade, advancing their navy and merchant fleets, and strengthening their economic presence in the Atlantic world with the trade restrictions such as the Navigation Acts. With several restrictions placed on manufacturing, shipping, selling, and buying, and later followed by the Molasses and Sugar Acts in the mid-18th century, it is no wonder the colonists developed a loathing towards the English, only to be heightened by the new

colonial policy in 1763 with copious taxes and tariffs placed on British imports. With the widespread growth of colonial industries, the mercantile policies did not affect the colonies so much, eventually allowing them to surpass the influence of Britains products and become another inspiration for the American Revolution. To conclude, if you were a colony, would you revolt against your home country if they placed too many trade restrictions and import taxes?