1. First Conflicts: The English Mercantilist System

2. Mercantilism
Colonial-era economic theory that supported the belief that nations become wealthy and powerful by accumulating gold and silver
Gold and silver are accumulated by exporting (selling) more than you import (buy)

3. Mercantilism
In the mercantilist model, a nation must be self-sufficient in natural resources
The American Colonies, rich in natural resources, become valuable in supporting the wealth of England
The Colonies also become valuable markets for the manufactured goods produced by English businesses

4. English Mercantilism
As a result, England did not allow the Colonies to sell natural resources to other nations, nor did they allow the Colonies to buy manufactured goods from other nations
In essence, the economy of the Colonies was monopolized by the English, for the benefit of England – not the Colonies

5. English Mercantilism
So, the Colonies had to sell their raw materials to English merchants at relatively low prices because that was the only legal outlet available
English merchants, however, could charge the Colonies high prices for manufactured goods, because the merchants faced no outside competition

6. Consequences of Mercantilism
British merchants grew wealthy
Many colonists began to go into debt due to having to borrow money to buy the things they needed or wanted
Some colonists, especially in New England, began to engage in illegal smuggling to avoid the mercantilist system

7. Navigation Acts First issued in 1660
All goods imported or exported by the Colonies had to be carried on English ships
Limited what goods could be manufactured in the Colonies for export
Tobacco, sugar, lumber, cotton, wool, and indigo could only be sold to England or other English colonies

8. Staple Act
1663
All imports to the Colonies had to come through England
Foreign goods had to first be brought to England and taxed before they could be delivered to the Colonies on English ships
This raised the price on imports to the Colonies

10. Customs Inspectors
When angry Colonists began to break the new laws, Parliament (the English legislature) appointed customs inspectors to serve in the Colonies and inspect all arriving and departing ships to ensure that taxes had been paid and that all shipments were legitimate

11. Smuggling
1675: King Charles II discovered that New England merchants were routinely ignoring the Navigation and Staple Acts by trading with the Dutch, Africa, and islands in the Caribbean
Massachusetts’ governor argued that the colony was not bound to obey laws passed by Parliament

12. The Dominion of New England
1686: King James II (Charles II’s brother and heir) decided to punish New England by merging the Massachusetts, Plymouth, Rhode Island, Connecticut, New Jersey, & New York colonies into one royal colony called the Dominion of New England
The Dominion was administered by a royally appointed governor-general who answered directly to the king

13. The Dominion of New England
James ordered all colonial assemblies and courts abolished and gave the governor-general the power to make laws, impose taxes, administer justice, and manage all land grants

14. Sir Edmund Andros Appointed first governor-general of the Dominion
Immediately declared all deeds and charters issued in Massachusetts to be invalid and made landholders reapply to have their deeds recognized
To get a new deed, landholders had to agree to pay a new annual tax

15. Sir Edmund Andros
Used military force to enforce the Navigation and Staple Acts
Attacked the Puritan church by declaring that all marriages must take place in Anglican churches (the king was head of the Anglican church) and by banning Puritans from teaching in schools

16. Sir Edmund Andros So Andros had made enemies of:
New England land owners
New England merchants
Puritans
New Englanders were primed for a violent showdown when ….

17. The Glorious Revolution
King James II was overthrown in a bloodless revolution in favor of his daughter, Mary II and her husband William III
Parliament had become suspicious of James because he was a Catholic, and so offered the throne to his Protestant daughter, prompting James to flee for France

18. The English Bill of Rights
Parliament required that William & Mary swear to abide by a new set of rules before they could take the throne, however
This agreement came to be known as the English Bill of Rights and would later strongly influence the U.S. Constitution

19. English Bill of Rights King can not maintain a standing army
Parliament is superior to the king
Parliament must be allowed to meet regularly
House of Commons controls the treasury (taxes)
King can not dismiss or interfere with Parliament
King can not suspend laws
King can not be Catholic
King can not maintain a standing army
King can not quarter soldiers in people’s private homes

20. English Bill of Rights Citizens get trial by jury
No cruel or unusual punishment
Writ of Habeas corpus – no one can be arrested and imprisoned without being charged with a crime
Citizens have the right to bear arms

21. Back in America …
Andros and his councilors were imprisoned and later deported back to England
William & Mary dissolved the Dominion of New England, but did not restore the old colonial order

22. The New Massachusetts
The colonies of Rhode Island, Connecticut, New York, and New Jersey were restored, but Massachusetts was merged with Plymouth and the sparsely populated region of Maine into a new royal colony of Massachusetts

23. The New Massachusetts
Under Massachusetts’ new charter, the king would appoint a governor, but the colonists were allowed to elect an assembly and appoint advisors to the governor
Freedom of religion (and voting privileges, if you owned land) was also granted to all Protestants, breaking the Puritans’ religious and political monopoly in the colony