Mercantilism & the Grenville Program

Doctrine of Mercantilism England sought to become self- sufficient Wanted favorable balance of trade (more exports than imports) Protect home industries from foreign competition Draw inexpensive raw materials from colonies

Mercantilism cont. Create captive market for British goods System meant to enrich mother country Required govt. regulation to work properly Also needed large merchant & battle fleet to operate profitably & safely

Trade & Navigation Acts ( ) Meant to help England in its commercial competition w/ Holland –Benefiting British merchants & manufacturers and shipbuilders Colonial trade only in English or Colonial ships Certain enumerated goods to be sold only to England by colonies –Sugar, tobacco, Naval supplies, furs

Navigation Acts cont. Most foreign goods imported into colonies went thru England 1st –Had to pay an import tax there Laws passed to restrict colonial manufacturing –Items that competed w/ English products incl. wool, hats, iron, etc. bounties paid to manufacture some items

Effects on Colonies Board of Trade created in brought some efficiency to enforcement Unfavorable balance of trade for colonies Helped New England shipbuilders Hurt plantation colonies Little serious effort to enforce the acts Colonists ignored laws and smuggled

New Imperial Policy After F & I War, British colonial policy changed Stricter enforcement & new laws Parliament wished to raise revenue in colonies to offset imperial expenses new P.M. George Grenville

George Grenville Increased # of customs collectors, royal inspectors & naval patrols Export of finished goods restricted Writs of Assistance (search warrants) issued to curtail smuggling –No probable cause needed - could search anywhere to locate illegal shipments

Reaction to Writs of Assistance James Otis (Boston Lawyer) challenged legality of Writs in court Claimed they violated fundamental rights of Englishmen (tyranny) Court ruled Writs were legal Otis’ arguments rallied public opinion against Writs - protests continued

Revenue Acts Sugar Act (1764) Raised duties on foreign sugar, textiles & other goods Lowered duty on molasses to discourage smuggling Charges of smuggling to be decided in admiralty courts (no jury trial)

Reaction to Sugar Act New England & Middle Colony merchants defied law - believed act would ruin colonial economy – continued smuggling & illegal foreign trade Strong objections to trying cases in admiralty courts - violation of rights

Quartering Act of 1765 An attempt to reduce cost of military presence in colonies Colonists must provide lodging and supplies for British troops Colonists opposed supporting a standing British army in times of peace - also intimidating

Stamp Act of 1765 Required a tax stamp on most printed material & legal documents 1st internal tax levied on colonies Alienated influential colonial leaders such as lawyers, merchants, printers Parliament generally seen as circumventing colonial assemblies’ control of taxation & threatening rights

Reaction to Stamp Act Patriotic societies (Sons of Liberty) formed to organize resistance to tax Stamp collectors harassed & assaulted - stamps destroyed Non-importation & non-consumption agreements formed to force repeal Otis argued that colonists could not be taxed without their consent

Reaction to Stamp Act cont. Grenville argued that colonies had “virtual representation” - all members of Parliament represented the interests of the empire “No taxation without (actual) representation” was the reply Distribution & sale of stamps effectively halted thru various forms of protest

Stamp Act Congress (NY ) Delegates from 9 colonies Demand repeal of stamp tax based on rights & consent Petition King George III for relief Acknowledge Parliament’s authority to pass regulatory laws but reject internal taxation without representation

A Uniting Factor Reaction to Grenville’s policies served to unite various elements of the colonies into a common cause against English rule.

Repeal of Stamp Act (1766) Change of ministers in London brings about repeal William Pitt, Edmund Burke spoke in support of colonists’ arguments Protests a factor but main reason for repeal is the sharp decline in colonial trade due to non-importation & consumption agreements

Declaratory Act (1766) Passed at same time as repeal of Stamp Act Affirmed Parliament’s power to pass laws affecting the colonies “in all cases whatsoever”