Colonial Government & Economy

What is Mercantilism? Mercantilism: is an economic policy by the government which held that a nation’s power was directly related to a nation’s wealth. ◦ Wealth = Power, so it is important to export more than import.  European countries competed for world power and needed colonies to provide necessary raw materials.

What was the role of the Colonies? Provide raw materials (so mother country does not have to import from other nations) and markets for exports. ◦ Favorable balance of trade for England ◦ Mercantilism always favors the “mother” country over the colonies!

Triangular Trade

New England (Northern) Colonies Valuable Resource: ◦ Timber / lumber ◦ This allowed for shipbuilding, which helped the British maintain naval supremacy by providing wood for ships, ships’ stores, sailors, trade. ◦ Other items produced whale oil, rum, textiles, and iron works.

Middle Colonies Valuable Resources ◦ Primarily farm goods  Livestock  Grains / Food crops ◦ “Bread Basket” of the American colonies Some major harbors allow for trade industry to develop

Southern Colonies Economies based on plantation agriculture. Produced valuable Cash Crops such as tobacco, rice, and indigo. Two Types of Systems: ◦ Plantation System:  Grew the cash crops ◦ Small Independent Farm Systems:  Raised livestock to export beef and pork.

How Did Mercantilism Impact the Colonies? European nations relied on strong central governments to enforce mercantile doctrines. Americans provide profitable market for English manufactured goods Americans discouraged from buying these goods from other countries In fact, Britain created laws that made it illegal to buy goods from outside the empire.

The Navigation Acts 1650 No country could trade with the colonies unless the goods were shipped in either colonial or English ships. All vessels had to be operated by crews that were at least three- quarters English or colonial The colonies could export certain products only to England Almost all goods traded between the colonies and Europe first had to pass through an English port. Was it reasonable for England to pass laws such as these to control Colonial trade? It was difficult for Great Britain to enforce these laws because of the distance. Colonists broke the law and smuggled and traded with other countries. Laws that Enforce Mercantile Doctrines:

Responses of Colonists Most importantly, mercantilism was insulting: colonists felt they were being milked like cows, kept in economic adolescence

Colonist Responses Until 1763, Navigation Laws were not a burden because laxly enforced (salutary neglect) ◦ Salutary Neglect: the idea that the colonies benefitted from being left alone without British interference. Merchants disregarded or evaded restrictions, some got rich by smuggling (e.g. John Hancock)

Government in the Colonies If Britain is not enforcing the Navigation Laws in the colonies, who is in charge? Let’s look at Colonial Government Structure

Basic Structure of Colonial Government Colonial Governor Appointed by King or Proprietors Colonial Council Appointed by King or Proprietors Legislature Elected by the People

Role of the Governor The powers of the governor were extensive. He could ◦ convene, prorogue, or dissolve the legislature ◦ veto any of its laws ◦ command of the militia ◦ appointed many officials, such as judges, justices of the peace, sheriffs, and the like In one respect he was ever held in check -- he had no power over the public purse. ◦ Meaning he did not control taxation or spending on the part of the colonial government

Colonial Council The council consisted usually of 12 men (though in Massachusetts there were 28, and in early Maryland but 3) ◦ They had to be residents of the colony in which they served. ◦ Appointed by the same power that appointed the governor, they usually sided with him in his conflicts with the assembly. The functions of the council It was a board of advisers to the governor It constituted the upper house of the legislature It frequently formed the highest court of the colony.

Role of the Assembly The assembly, or lower house of the legislature, represented the people and was elected by them. ◦ It had the chief legislative power; but its acts could be vetoed by the governor, or be set aside by the Crown ◦ But the assembly held the sole power of taxation. ◦ Through the exercise of this right the colonies may be said to have been self-governing, and their liberties were secure so long as they could retain this sole right of taxing themselves.