THE ENGLISH MERCANTILE SYSTEM AND THE NORTH AMERICAN COLONIES I Mercantile Theory A Definition Economic theory all major western European Nations subscribed to this theory Portugal Spain England In general it s an economic philosophy that calls for self sufficient empire Using government to promote economic development and success In general All nations in competition for it Establish trading empire Commerce trade In order to be a wealthy powerful nation having a powerful navy to defend interests in other parts of the world Best interest of government to help growth Help support and protect a growing economy Important that a nation should sell export more goods than it imports to build national wealth Wealth measured by Gold and silver No modern currency Don t want to purchase from others Belief that there is only so much Gold and silver The more England has the less other nations have Maintaining favorable balance of trade Sell more than you buy Governmental action to support theory Government involves itself Provided money if form of subsidizes and gave to industries monopoly eliminate competition and allow one company to monopolize trade ex British East India company Last thing you want to do is to purchase products from your enemy Don t benefit enemy Implement mercantile theory use assets use colonies 1950 English establishment of Mercantile theory B Role of Colonies England beginning to produce goods Primary role of Colony Provide Raw material Textile industry cotton used to produce finished good cloth textile Raw cotton has less value and product has more value England uses colonies to provide growing industries Ex Tobacco furniture Timber leather goods used to produce boots shoes pouches Second Purpose of Colony Colonists become consumers of the finished product through trade English government pass laws to prohibit manufacturing because you don t want competition in your mercantile system Pass laws that attempt to prohibit colonials to trading with English enemies Restrict colonial problem will soon become a problem for England Mother country is Hub in mercantile system English factories are producing too much products C Navigation Acts II In order to insure Parliament passes laws 1651 English attempts to gently coheres colonies to act 1651 First Navigation Act required goods that are brought into the colony and England must be brought in by English ships Colonials are unhappy 1660 Second Navigation Act Parliament is getting specific on requirement of colonies listed specific goods enumerated goods could only be traded to England or another English colonies Ex Tobacco cotton sugar Indigo Blue Color Amendment later that adds cotton furs timber for ships mask Naval stores Products that come from Trees ex turpentine tar that are critical for making ships Then rice added soon after Goods that England wants to keep away from other nations that could be used in competitor nations 1663 Third Navigation Act Staple Act Required all trade goods that are headed to England or English colonies had to stop at England first The ships loaded with goods intended for England or Colonies should stop in England first Revenue Tax on the goods cost of product for colonials is slightly higher which made Colonials unhappy There was little real opposition to Navigation Acts till 1663 Colonials had a long history with trading with Dutch French and Spanish and England Resist the fact that England is passing laws that affect economic No navigation act causes revolution Colonial interest divides from England Colonial Evasion of Navigation Acts A Complementary and Competitive Economies Colonies begin to act differently about navigation acts Southern colonies fit into economic mercantile They developed large scale agriculture Growing cotton tobacco rice system complement England s interests They are providing what English wants and purchasing the goods Harder for Northern colonies Soil in New England is thin rocky and not conducive for large agriculture products won t to do well in North They began to develop competitive Begin construction of ships have very active fishing industry lumber Northern colonies become dependent on trade and puts them on competitive ways with England Trading with Islands in West Indies New England fish whale blubber wheat traded for sugar and molasses turned it into rum Important There was loop hole in Navigation Act in 1663 not specific about where the port should be all ports where English ports Begin to conduct trade and stop at English colonial port and no authority to collect the taxes duty Parliament tries to fix that B New England s Evasion 1673 Navigation Act Passed that sends custom agents to each Colonial British port Problem is that custom officials are low leveled and poor bureaucrats that made them susceptible to bribes but not all of them Parliament and king are made aware of the evasion that are committed by New Englanders and people living in Massachusetts Bay colony Massachusetts Bay indentified as trouble makers who ignored navigation acts 1684 Charter revoked for Massachusetts Bay because they broke the navigation acts C Dominion of New England 1685 Charles II Autocrat who believed his family was selected by God to rule England dies and revived by James II Placed himself above parliaments and it creates problems believes in divine right of kings Impose more serious consequences on New England 1686 Revokes charters of New York New Jersey Rhode Island Plymouth New Hampshire and Connecticut Entire region referred to as dominion of New England 1686 Revokes charter of New York New Jersey Rhode Island Plymouth New Hampshire and Connecticut Entire region referred to as dominion of New England the colonies no longer exist now one political entity James II Sends former military general Sir Edmund Andros to Dominion of New England to establish control Honest man and able administrator 1st thing Andros did was dissolve general assembly that evolved Body of self government Andros limits town meetings to one meeting per year Imposed new taxes Seemed to threaten Puritanism Predominant religion Allowed Puritan church to be used by Church of England Andros determine to enforce Navigation Acts violators were tried and punished D Glorious Revolution of 1688 III Dominion of New England 2 years diminished in 1688 due to political upheaval in England known as glorious revolution bloodless turn over power that comes about due to religious reasons James II after wife dies