THE ENGLISH MERCANTILE SYSTEM AND THE NORTH AMERICAN COLONIESI. Mercantile TheoryA. 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 monopolizetrade 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 valueand 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 productsC. Navigation Acts- 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 addscotton, 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 II. Colonial Evasion of Navigation ActsA. 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 notconducive 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 thatB. 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 committedby 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 (Bodyof 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 ,