Mercantilism and the Mercantilism and the ColoniesColonies

Reasons why England Reasons why England valued its North American valued its North American

coloniescolonies1. 1. The colonies supplied food and The colonies supplied food and

raw raw materialsmaterials- $$$- $$$

2. 2. The colonies purchased large The colonies purchased large amounts amounts of finished English of finished English goodsgoods

- $$$- $$$

Reasons why England’s North Reasons why England’s North American colonies could be American colonies could be

problematicproblematic Widely spread, and Widely spread, and

regionally unique, making regionally unique, making it difficult to establish it difficult to establish governmentgovernment

The colonists were The colonists were independent-mindedindependent-minded

Distance made control Distance made control difficultdifficult

Internal conflicts vied for Internal conflicts vied for the government’s the government’s attentionattention

Speaking of Internal Speaking of Internal Conflicts- The English Civil Conflicts- The English Civil

War and The “Glorious War and The “Glorious Revolution”Revolution”

Civil War from 1640-1660Civil War from 1640-1660 Fought between King Charles I Fought between King Charles I

and Parliamentand Parliament King limited the powers of King limited the powers of

Parliament by demanding Parliament by demanding taxes of the peopletaxes of the people

King is beheadedKing is beheaded! (by Parliament’s orders)! (by Parliament’s orders) Oliver Cromwell takes over, unrest ensuesOliver Cromwell takes over, unrest ensues Finally King Charles II takes the throne in 1660, Finally King Charles II takes the throne in 1660,

restored stabilityrestored stability 1688 The “Glorious Revolution” overthrows King 1688 The “Glorious Revolution” overthrows King

James, puts Protestant William and Mary on the James, puts Protestant William and Mary on the thronethrone

EconomicsEconomics

War debt emphasized the need for the War debt emphasized the need for the colonies to contribute to England’s overall colonies to contribute to England’s overall economic health.economic health.

The theory of The theory of MercantilismMercantilism was starting was starting to become popular among the nations of to become popular among the nations of Western Europe.Western Europe.

MercantilismMercantilism

A theory that a country should try to collect as much bullion (gold and silver) as possible, creating wealth and power.

If a country sold more goods to other countries than it bought from them, it would acquire this bullion.

Put Simply: To become rich, exports Put Simply: To become rich, exports should exceed importsshould exceed imports

England’s relationship with the England’s relationship with the colonies:colonies:

Believed the Colonies existed to Believed the Colonies existed to benefit the “Mother Country” Englandbenefit the “Mother Country” England

England had started the Colonies and England had started the Colonies and had the right to benefit from themhad the right to benefit from them

And, Coming Soon…And, Coming Soon… England would provide armies and ships during England would provide armies and ships during

the French and Indian War to the Colonies.the French and Indian War to the Colonies. England developed a large debt during the French England developed a large debt during the French

and Indian War to defend the Colonies. and Indian War to defend the Colonies.

Specific Purposes of the Specific Purposes of the ColoniesColonies

To establish British Naval PowerTo establish British Naval Power building shipsbuilding ships providing England with ship-related suppliesproviding England with ship-related supplies providing sailorsproviding sailors

Keep money in the empire!!Keep money in the empire!! Providing raw materials Providing raw materials Providing other goods England could not Providing other goods England could not

produceproduce TobaccoTobacco SugarSugar Etc.Etc.

The Triangular Trade

The Relationship The Relationship ChangesChanges

England at first paid little attention to England at first paid little attention to the colonies (civil war)the colonies (civil war)

England began exercising power over England began exercising power over the colonies after Charles II comes to the colonies after Charles II comes to power power

Navigation ActsNavigation Acts 1651, 1660, 1663, and 16731651, 1660, 1663, and 1673

Reinforced MercantilismReinforced Mercantilism

Colonies exports go Colonies exports go onlyonly to England and her to England and her other Colonies other Colonies

Imports from elsewhere Imports from elsewhere mustmust go through go through England England extra tax will be added  extra tax will be added 

All goods (imports, exports) for the Colonies All goods (imports, exports) for the Colonies must be delivered by English ships. must be delivered by English ships.

Navigation ActsNavigation Acts 1651, 1660, 1663, and 16731651, 1660, 1663, and 1673

England restricted the colonies from producing any goods also made in England!

England decided could be produced in the colonies.

Colonies are to complement England, NOT compete with England!!

The Dominion of New England and The Dominion of New England and the start of Salutary Neglethe start of Salutary Neglectct

King Charles II directly punishes King Charles II directly punishes Massachusetts for being too impertinent (and Massachusetts for being too impertinent (and for being Puritans- personal grudge) by using for being Puritans- personal grudge) by using King Phillips’ War as an excuse to pull their King Phillips’ War as an excuse to pull their charter, establishes the Dominion of New charter, establishes the Dominion of New England in 1684 headed by cruel and England in 1684 headed by cruel and unpopular Sir Edmond Andros unpopular Sir Edmond Andros

In 1689, the Dominion is overthrown by the In 1689, the Dominion is overthrown by the colonists, and a period of Salutary Neglect colonists, and a period of Salutary Neglect begins under William and Mary- they (and begins under William and Mary- they (and those who follow) will take a hands-off those who follow) will take a hands-off approach to the colonies as long as they approach to the colonies as long as they make money for the homeland- the make money for the homeland- the Navigation Acts will stay on the books, but Navigation Acts will stay on the books, but are loosely enforcedare loosely enforced

Legacy of Mercantilism and Legacy of Mercantilism and Salutary NeglectSalutary Neglect

Over time, the colonists would grow Over time, the colonists would grow accustomed to minimal English oversightaccustomed to minimal English oversight

Many colonists felt Mercantilism put them Many colonists felt Mercantilism put them at a disadvantage economicallyat a disadvantage economically

England regarded its colonies as a source England regarded its colonies as a source of wealth, not a full partner politicallyof wealth, not a full partner politically

England often saw the colonists as “unruly England often saw the colonists as “unruly children” or “backward frontiersmen” to children” or “backward frontiersmen” to be appeased or controlled be appeased or controlled