LESSON 3 The Colonial Economy

Mercantilism Mercantilism fueled competition between European powers by creating a race for colonies. Colonies existed to bring wealth to their mother country (home country) England’s colonies provided raw materials that the English could make into finished products and sell for profit. South Carolina and the other colonies could trade only with England. European nations often went to war to get more colonies or protect the ones they had.

Mercantilism An economic policy intended to increase wealth by closely regulating trade, collecting high taxes on imported items, and importing more than exporting.

South Carolina’s Economy Cattle ranching and hog farming were two of South Carolina’s first industries. Trade with Native Americans was critical for the economy to grow. Natives would trade deer skins for European goods. In South Carolina, the slave trade included not just African Americans, but Native Americans as well. Native Americans were sold into slavery in the West Indies and New England colonies. South Carolina was the top producer of naval stores. Rice, called “Carolina Gold,” became the biggest cash crop in the colony.

Carolina Gold African slaves brought with them prior knowledge of growing rice. However, rice was a very labor intensive crop that only grew near the coast.

The Navagation Acts A series of English laws that regulated trade between England and her colonies. Goods sold in England must be shipped on English ships with English crews. Certain crops grown in the colonies could be sold only in England (tobacco, rice, indigo). All goods sold in America by other nations had to be sent to England first, and shipped on English ships. Many colonists resorted to smuggling to get around the laws.

South Carolina’s Economy What items did colonists want from Native Americans? What did Native Americans want from colonists? What issues hurt trade relations between Native Americans and colonists?

South Carolina’s Economy Why did the colonists sell the Native Americans to the West Indies instead of letting them stay and work in South Carolina?

Indigo Eliza Lucas Pinckney took over her father’s plantation where she was allowed to study botany. Using seeds her father sent from the West Indies, she created a high-quality, expensive blue dye.

A Slave Economy Because South Carolina’s plantation economy depended on slave labor, the slave trade became a big business. Rice & indigo demanded a large labor force. Middle Passage—British firms bought slaves from local chiefs or traders in Africa, loaded them on ships and took them to the West Indies, from there many were taken to America. The voyage was so dangerous that one out of six Africans died.

A Slave Economy

A Slave Economy

Olaudah Equiano Olaudah Equiano was born in West Africa and was first a slave to an African family. When he was sold to British slave traders, he traveled the Middle Passage to America. He was sold to the highest bidder. After working in Virginia, he was sold to a British naval officer, and his master let him keep some of the money from odd jobs he did for others. Equiano eventually earned enough money to purchase his freedom. In England, he learned how to read and write and in 1789, published his autobiography.