1. Mercantilism & the Grenville Program

2. 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

3. Create captive market for British goods
Mercantilism
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

4. Trade & Navigation Acts (1651-63)
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

5. 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
Navigation Acts

6. 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

7. 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

8. Increased # of customs collectors, royal inspectors & naval patrols
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

9. 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

10. 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)
Revenue Acts

11. 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

12. 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
Quartering Act of 1765

13. 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

14. 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 (boycotts) formed to force repeal
Otis argued that colonists could not be taxed without their consent

15. 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

16. Stamp Act Congress (NY - 1765)
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
Stamp Act Congress (NY )

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

18. 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
Repeal of Stamp Act (1766)

19. 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”