Mercantilism

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Tuesday, October 13
DO-NOWCreate a list:
Why were the American
colonies valuable to England?
Compile a list and support
your ideas with reasons.
TODAY’S AGENDADo-Now
Notes & discussion on
Mercantilism
Worksheet on Merc.
The Original 13 Colonies
Reasons why England valued its
North American colonies
1.
The colonies supplied food and raw
materials
- $$$
2.
The colonies purchased large amounts
of finished English goods
- $$$
Reasons why England’s North American
colonies could be problematic
1.
Widespread,
difficult to
establish
government
2.
A great distance
from England
itself, also making
government a
challenge
Besides distance, what other
reason did England have for
neglecting its North American
Colonies?
English Civil War

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Civil War from 1640-1660
Fought between King Charles I
and Parliament
King limited the powers of
Parliament by demanding
taxes of the people
King is beheaded! (by Parliament’s orders)
Oliver Cromwell takes over, unrest ensues
Finally King Charles II takes the throne in 1660,
restored stability
Economics

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War debts emphasized the need for the
colonies to contribute to England’s overall
economic health.
The theory of Mercantilism was starting to
become popular among the nations of Western
Europe.
So, what is this
“Mercantilism”?
Mercantilism

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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 should
exceed imports
But how do the colonies fit
in to Mercantilism?
England’s relationship with the colonies:

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Believed the Colonies existed to benefit
the “Mother Country” England
England had started the Colonies and had
the right to benefit from them
And, Coming Soon…
 England would provide armies and ships during the
French and Indian War to the Colonies.
 England developed a large debt during the French and
Indian War to defend the Colonies.
Specific Purposes of the Colonies

To establish British Naval Power
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building ships
providing England with ship-related supplies
providing sailors
Keep money in the empire!!
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Providing raw materials
Providing other goods England could not produce
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Tobacco
Sugar
Etc.
Mercantilism
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England at first paid little attention to
the colonies (civil war)
Then Charles II came to power,
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Things changed!
England began exercising power over the
colonies
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First by punishing a defiant Massachusetts
Mercantilism

In 1662, the England legalized CT,
and in 1636, recognized RI
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Both of which took land from Mass.
Charles II then began to enforce and
Issue the Navigation Acts!
Navigation Acts
1651, 1660, 1663, and 1673
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Reinforced Mercantilism
Colonies exports go only to England and her other
Colonies
Imports from elsewhere must go through England
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extra tax will be added
All goods (imports, exports) for the Colonies must
be delivered by English ships.
Navigation Acts
1651, 1660, 1663, and 1673
England restricted the colonies from
producing any goods also made in
England!

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England decided could be produced in the
colonies.
Colonies are to complement England,
NOT compete with England!!
Did the policy of Mercantilism
Help or Hurt
the American colonies?
It hurt the colonies!!
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The British could only buy so many goods
This drained the American economy.
The colonists had no money to buy what
they needed if they could not sell their
own products.
All would have to go into debt to obtain
these goods 
Apply your knowledge
Complete the worksheet
“Great Britain Controls Colonial Trade”
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Stamp Act: Placed tax on newspapers and
other legal documents.
Sugar Act: Lowered taxes on products leaving
the Colonies but raised taxes on imported
goods.
Currency Act: England has the right to set
currency only.
Townshend Act: Place taxes on colonial
imports of everyday goods.
Declaratory Act: England has right to tax and
rule over the Colonies
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