Mercantilism and the Navigation
Acts
Mercantilism
World’s supply of gold and silver fixed
 Had to seize gold and dominate trade
 Government controlled economic
activities, limiting foreign imports and
preserving favorable balance of trade
 Encouraged manufacturing – developed
and protected own shipping to exploit
colonies of raw materials and markets for
finished goods

Mercantilism
As told by Investopedia
 http://www.investopedia.com/video/play/m
ercantilism/

1651 Navigation Act – Oliver
Cromwell

All goods imported from England or the
colonies had to arrive on English ships
and the majority of the crew had to be
English
1660 Navigation Act - Parliament

All ships crews had to be ¾ English, and
all products like tobacco, cotton, and
sugar were to be shipped from the
colonies only to England or other English
colonies
1663 Navigation Act

All ships carrying goods from Europe to
America dock in England, be offloaded,
and pay a duty (tax) before proceeding
1673 Navigation Act

Every captain loading articles like tobacco,
etc. in the colonies had to pay a tax on
them
Enforcing Navigation Acts
Colonial System: to serve the economic
needs of the mother country
 1675: Charles II sent officials to colonies
 Crown named colonial governors

1673-1679
British collectors of custom duties led to
resentment
 Especially by Puritans
 Massachusetts Bay – ignored royal wishes
and tolerated violations of Navigation
Acts
 Smuggling
 1684 – Massachusetts Charter annulled

Dominion of New England
Under control of special royal
commission
 James II approved proposal to create
Dominion of New England that included
all colonies south through New Jersey
 Governor and council would rule without
colonial assembly
 Sir Edmund Andros
 Colonial Resentment

Edmund Andros
Dominion
Levied taxes without consent of General
Court
 Enforced Navigation Acts
 And then the Glorious Revolution
occurred…

Glorious Revolution
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King James II – Catholic – resented in England
1688 – Parliament invited William and Mary to
rule (Mary Protestant Daughter of James)
James II fled to France
Andros arrested
Massachusetts reverted to old government
Precedent for revolution against Monarch!
John Locke
1688
England focused most of its attention
elsewhere
 Parliament expected colonies to export
raw materials and import manufactured
goods
 Strengthened Navigation Acts

◦ Moved smuggling trials from colonial courts
to admiralty courts
◦ Created Board of Trade – monitored colonial
trade
Salutary Neglect!

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England loosened hold on colonies
English officials only lightly enforced new
measures
Relaxed enforcement in return for continued
economic loyalty from colonies
Colonists paid governor’s salary – so
governor could be greatly influenced by
colonists
Taste for self-government
Still loyal to British crown