Mercantilism & the
Grenville Program
Doctrine of Mercantilism
• England sought to become selfsufficient
• Wanted favorable balance of trade
(more exports than imports)
• Protect home industries from foreign
competition
• Draw inexpensive raw materials from
colonies
Mercantilism cont.
• Create captive market for British
goods
• System meant to enrich mother
country
• Required govt. regulation to work
properly
• Also needed large merchant & battle
fleet to operate profitably & safely
Trade & Navigation Acts (1651-63)
• Meant to help England in its
commercial competition w/ Holland
–Benefiting British merchants &
manufacturers and shipbuilders
• Colonial trade only in English or
Colonial ships
• Certain enumerated goods to be sold
only to England by colonies
–Sugar, tobacco, Naval supplies, furs
Navigation Acts cont.
• Most foreign goods imported into
colonies went thru England 1st
–Had to pay an import tax there
• Laws passed to restrict colonial
manufacturing
– Items that competed w/ English
products incl. wool, hats, iron, etc.
• bounties paid to manufacture some
items
Effects on Colonies
• Board of Trade created in 1696 brought some efficiency to enforcement
• Unfavorable balance of trade for
colonies
• Helped New England shipbuilders
• Hurt plantation colonies
• Little serious effort to enforce the acts
• Colonists ignored laws and smuggled
New Imperial Policy
• After F & I War, British colonial
policy changed
• Stricter enforcement & new laws
• Parliament wished to raise revenue
in colonies to offset imperial
expenses
• 1763 - new P.M. George Grenville
George Grenville
• Increased # of customs collectors,
royal inspectors & naval patrols
• Export of finished goods restricted
• Writs of Assistance (search warrants)
issued to curtail smuggling
–No probable cause needed - could
search anywhere to locate illegal
shipments
Reaction to Writs of Assistance
• James Otis (Boston Lawyer)
challenged legality of Writs in court
• Claimed they violated fundamental
rights of Englishmen (tyranny)
• Court ruled Writs were legal
• Otis’ arguments rallied public opinion
against Writs - protests continued
Revenue Acts
Sugar Act (1764)
• Raised duties on foreign sugar,
textiles & other goods
• Lowered duty on molasses to
discourage smuggling
• Charges of smuggling to be decided
in admiralty courts (no jury trial)
Reaction to Sugar Act
• New England & Middle Colony
merchants defied law - believed act
would ruin colonial economy
– continued smuggling & illegal foreign
trade
• Strong objections to trying cases in
admiralty courts - violation of rights
Quartering Act of 1765
• An attempt to reduce cost of military
presence in colonies
• Colonists must provide lodging and
supplies for British troops
• Colonists opposed supporting a
standing British army in times of
peace - also intimidating
Stamp Act of 1765
• Required a tax stamp on most printed
material & legal documents
• 1st internal tax levied on colonies
• Alienated influential colonial leaders
such as lawyers, merchants, printers
• Parliament generally seen as
circumventing colonial assemblies’
control of taxation & threatening rights
Reaction to Stamp Act
• Patriotic societies (Sons of Liberty)
formed to organize resistance to tax
• Stamp collectors harassed &
assaulted - stamps destroyed
• Non-importation & non-consumption
agreements formed to force repeal
• Otis argued that colonists could not
be taxed without their consent
Reaction to Stamp Act cont.
• Grenville argued that colonies had
“virtual representation” - all members
of Parliament represented the
interests of the empire
• “No taxation without (actual)
representation” was the reply
• Distribution & sale of stamps
effectively halted thru various forms
of protest
Stamp Act Congress (NY - 1765)
• Delegates from 9 colonies
• Demand repeal of stamp tax based on
rights & consent
• Petition King George III for relief
• Acknowledge Parliament’s authority to
pass regulatory laws but reject internal
taxation without representation
A Uniting Factor
• Reaction to Grenville’s policies
served to unite various
elements of the colonies into a
common cause against English
rule.
Repeal of Stamp Act (1766)
• Change of ministers in London brings
about repeal
• William Pitt, Edmund Burke spoke in
support of colonists’ arguments
• Protests a factor but main reason for
repeal is the sharp decline in colonial
trade due to non-importation &
consumption agreements
Declaratory Act (1766)
• Passed at same time as repeal of
Stamp Act
• Affirmed Parliament’s power to
pass laws affecting the colonies
“in all cases whatsoever”