The British Colonial System in
the 18th Century
Predicting the sources of conflict between
the colonists and the Crown
1. Internal Economy of England:
based on idea that capitalism leads to avaricious and degenerate
behavior
Control through monopoly and price fixing
Nature of the English/colonial Economy
2. External Economy of England
Mercantilism


Mercantilism
Prevalent theory in the 16th-18th Centuries
Wealth is power
National wealth depends on gold and silver.


Exports are better than imports
(Favorable Balance of Trade)
Colonies existed to supply raw materials to
the Mother Country
Mercantilism (con.)
You then pass laws that prevent the
colonists from producing certain
finished goods.
 Questions:
1. How does a favorable balance of
trade favor the Mother Country?
2. From the American viewpoint,
what are the incentives and
disincentives of Mercantilism?

What laws did England pass?
1.
Navigation Acts
A. These acts said that only British or
American ships could transport goods
B. All goods coming to America had to
pass through a British Port first. WHY?
2.
Control of Industries
A. Woolen Act of 1699
B. Hat Act of 1733
C. Iron Act of 1750
Effects of Mercantilism
Positive



N.E Shipbuilding
prospered
Chesapeake tobacco
had monopoly in Eng.
English military forces
protected colonies
from potential Spanish
and French attacks
Negative



Colonial
manufacturing was
limited
Chesapeake farmers
received low prices for
their crops
Colonists had to pay
high prices for
manufactured goods
from England
Did the colonists always follow the Navigation Acts?
--of course not, we are Americans!!!!
--did England care? NO! Why? Salutary Neglect
Before the 1760s: Gains from the Navigation Acts >
Costs of Salutary Neglect
After 1760, the costs go up greatly – England tries to
establish a monopoly over Colonial trade, but the
colonies want to continue trading with other countries
Before 1775 Loyalists > Patriots
British Political Controls
The key event is the
Glorious Revolution of
1688
The Glorious Revolution




Change from an Absolute
Monarchy to a Constitutional
Monarchy
Ended the Divine right of Kings
which says_______
What role would Parliament
have?
What role would the people
have?



Constitutional Monarchy
says that the power of the
Ruler is limited by
– Law
– Parliament
– Ultimately than by the
PEOPLE
Government depends on
the consent of the People
Why would this be a
revolutionary concept?
Glorious Revolution Impact
Parliament makes the law
 No standing army
 Regular elections and meetings of
Parliament
 Yearly taxes, not at the whim of the
Crown
 War only by the consent of parliament

Glorious Revolution Impact on the Colonies



America applied the ideas of the Revolution to
their situation (greater impact than in England)
Colonial assemblies sought to limit the
authority the crown had over them
They also asserted control over: taxes,
appointment of local officials and setting the governor’s
salary

Principle of colonial autonomy is established—
will eventually be a rallying cry
Comparing the Two
British System
 Patronage
 Limited franchise
 Representation
unrelated to
population
 Virtual
Representation
North American System
 No patronage
 Unlimited franchise
 Representation
related to population
 Actual Representation
In what areas do you foresee problems between the
colonists and the Crown?