West Morris Central High School
Department of History and Social Sciences
Mercantilism
1. The Mercantilist System
a. Mercantilism: Colonies Existed for the benefit of the mother country
i. Colonies should add to empire’s wealth, prosperity, and self-sufficiency
ii. Colonists seen as tenants
1. expected to grow tobacco and other necessary products w/o troubling
the colonial administration
iii. Colonies benefit to Great Britain:
1. ensure British naval superiority by furnishing ships, ships’ stores, sailors
and trade
2. Provide a large consumer market for British goods
3. Keep gold and silver in the empire by growing cash groups like sugar
that would otherwise have to be purchased from foreigners
2. Navigation Laws
a. Purpose: enforce the mercantilist system
b. Motive: first enacted in 1651 aimed at rival Dutch shippers who were becoming active
in the American trade… keep trade in the hands of the British… 1651 Act was temporary.
c. Basic provisions of Navigation Laws passed in 17th and 18th centuries:
i. Restricted commerce to and from the colonies to English or American vessels
1. kept money in the Empire & bolstered the British and colonial merchant
marine
ii. Certain “enumerated” articles like tobacco couldn’t be shipped to any other
foreign market except England despite prices possibly being higher elsewhere
iii. All European goods going to America had to go through England first
iv. Certain restrictions on colonial manufactures for export: British did not want
competition with the Colonies…
1. forbade exportation of woolen cloth produced in America
2. beaver hats prohibited from exportation (manufactured goods)
3. encouraged colonists to produce iron, but not to build any furnaces,
mills, or forges for the manufacture of it
d. Privy Council
i. Until 1696, the principal body that dealt with colonial affairs was the royal
“Privy Council” (private advisors to the king). They reviewed legislation and
acted as a court of appeal.
ii. The Privy Council evolved into the “Lords of Trade” who were responsible for
formulating colonial policy.
iii. The Navigation Act of 1696 provided for the Lords of Trade and Plantations,
which became known as the “Board of Trade”
NOTE: Great Britain never developed an effective, centralized gov’t system for the colonies
NOTE: The American colonies were a small part of a worldwide system. While the Americans
occasionally chafed under the restrictions placed upon them, they rarely doubted that they
benefited from being part of the Empire, with all of its protections.
e. Smuggling
i. The Colonists had no objection to the Navigation Acts in theory, as they were
not directed against the colonies, but against Britain’s competitors, and seen
not so much as taxation as regulation. Still, the American’s avoided paying taxes
/ duties whenever they could get away with it, which in fact was most of the
time. It was too expensive for the British to try to collect duties in the lightly
populated American colonies.
ii. Leads to the rise of a smuggling industry… raw materials out of the colonies and
manufactured goods into the colonies… smuggling becomes a “respectable”
profession, and paid off
NOTE: The English considered that their mercantilist policies would benefit the
Empire and necessarily all of its many parts – colonial leaders were willing to sacrifice local
interests for the broader market.
BOTTOM LINE: When acts were passed that aided the mother country at the expense of the
colonies, the Colonists tended to take it personally.
3. Effects / Results of Mercantilism
a. Positive
i. until 1763, Navigation Laws were not an intolerable economic burden on
the colonies
ii. Colonists had rights of Englishmen and unusual opportunities for selfgovernment
iii. Colonies enjoyed British military protection free of charge
iv. Colonies greatly profited from manufacturing and trading
v. Americans considered themselves British, and were typically proud of their
“Britishness”
vi. On average, Americans had the highest standard of living in the world
1. possible land ownership in many areas was far better than in
Europe
b. Negative
i. Colonial economy did not develop as quickly as it wanted (eg.
manufacturing)
ii. 2. Southern colonies hit hard as prices for exports dropped by being
“enumerated”
1. VA especially affected, poor economic conditions resulted in unrest
(Bacon’s Rebellion)
iii. Southern colonies favored by British in their policy making (tobacco, sugar,
rice) New Englanders grew resentful
iv. Writs of Assistance
1. search warrants used by British customs officers to harass colonial
shipping
2. Aimed to reduce colonial smuggling
3. 1761, James Otis, a young Boston lawyer, demanded Parliament
repeal the acts. Parliament refused, Otis gained press throughout
the colonies
a. Later, Otis penned the famous words “No taxation w/o
representation”
4. Salutary Neglect
c. Between 1713 and 1763, American colonials saw reduced gov’t intervention in
colonial affairs
i. Prime Minister, Sir Robert Walpole, took the enlightened view that if the
colonies were left alone to run their own affairs with minimal interference,
they would produce more wealth and commerce, prosper, and cause less
trouble.
ii. Britain would simply provide peace, protection, commerce, ensure law and
order, and send more immigrants to America to increase numbers of
customers.
iii. Britain could focus on domestic issues and the major wars of Europe
iii. Colonies left to raise, equip., train their own militia for whatever protection
it believed was needed against the Indians.
iv. In effect, colonists left alone: had to develop self-reliance, effective
organization
d. Development of Self-Gov’t
i. 13 separate colonial gov’ts emerged; often undercut authority of Parliament
ii. Local gov’t much more responsive to local needs
iii. Americans’ became used to regulating their own affairs w/o significance
interference
iv. American manufacturing increased despite British policies to protect Br.
Manufacturers
1. Cost of American goods increased making merchants wealthy
v. Smuggling increases
West Morris Central High School
Department of History and Social Sciences
The Navigation Act of 1660
The Acts of Trade and Navigation were designed to further the mercantilist aims of the British Empire. The first was enacted by
Parliament in 1651. The Act of 1660 strengthened the original act’s intent of blocking Holland from all trade with England and
its colonies. But it also made more specific the provisions requiring the colonies to produce raw products only and ship them
directly to England in English or colonial ships.
___________________________________________________________________________________
For the increase of shipping and encouragement of the navigation of this nation wherein, under the
good providence and protection of God, the wealth, safety, and strength of this kingdom is so much
concerned; … (2) be it enacted … from thence forward, no goods or commodities whatsoever shall be
imported into or exported out of any lands, islands, plantations, or territories to his Majesty belonging
or in his possession… in Asia, Africa, or America, in any other ship or ships, vessel or vessels whatsoever,
but in such ships or vessels as do … belong only to the people of England or Ireland, dominion of Wales
… or are of the build of and belonging to any the said lands, islands, plantations, or territories, as the
proprietors and right owner thereof, and whereof the master and three fourths of the mariners at least
are English…
III. And it is further enacted … that no goods or commodities whatsoever, of the growth, production or
manufacture of Africa, Asia, or America, or of any part thereof … be imported into England, Ireland, or
Wales … in any other ship or ships vessel or vessels whatsoever, but in such as do … belong only to the
people of England or Ireland, dominion of Wales … or of the lands, islands, plantations or territories in
Asia, Africa, or America, to his Majesty belonging…
XVIII. And it is further enacted … that … no sugars, tobacco, cotton-wool, indigoes, ginger, fustic, or
other dyeing wood, of the growth, production, or manufacture of any English plantations in America,
Asia, or Africa, shall be … transported from any of the said English plantations to any land … other than
to such other English plantations as do belong to his Majesty…
XIX. And be it further enacted … that for every ship or vessel which … shall set sail out of or from
England, Ireland, Wales … for any English plantation in America, Asia, or Africa, sufficient bond shall be
given with one surety … that the same commodities shall be by the said ship brought to some port …
and shall there unload…