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Mercantilism & the Grenville Program

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.

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Mercantilism & the Grenville Program

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  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. 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

  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. 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

  6. Effects on Colonies • Board of Trade created in 1696 - 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 • 1763 - new P.M. George Grenville

  8. 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)

  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. 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

  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 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

  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. 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

  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”

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