3.1 England and its
Colonies
-Mercantilism
Lesson Objective:
Learn about Mercantilism, the Navigation
Acts and the Glorious Revolution
Essential Question: How did the
relationship between England and her
colonies began to change before the
revolution?
MERCANTILISM
Wealth = Power
More Wealth  More Power
Export Revenue $ > Import Expenses
Balance of trade
Colonies Provide:
1. Supplies of Raw Materials
2. A Market for Finished Goods
Raw Materials
England
Colonies
Finished Products
Mercantilist Controls on Trade
1. Navigation Acts, 1651
2.
3.
4.
5.
= only English ships may trade with the colonies
Trade with Europe must first pass through England
Certain products could only be made in England
Currency was restricted – produced primarily in England
“Royal Veto” used against colonial assemblies
http://members.tripod.com/lylesj/trade/tritrade.html
Tensions Emerge
• Many merchants ignored Navigation Acts
and smuggled goods
• Mostly in New England
• Many in the “Puritan Utopia” refused to
follow English law
• Regulating trade / religious toleration
• James II- Dominion of New England
• Consolidated all colonies of New England and
New York and made them one Royal Colony
• Sir Edmund Andros
• “You have no more privileges left you,
than not to be sold for slaves.”
• Outlawed local assemblies
• Unilaterally levied taxes
Glorious Revolution
• Parliament was fearful of James II and his
potential dynasty – WHY?
• William and Mary sailed from Holland and
took control
• In the colonies, Andros was arrested
• Mass. Charter was returned with changes
• King appoints the governor, more religious
toleration
Salutary Neglect
British
Crown
• Stricter regulations on trade
not enforced
As long as trade imbalance
continued
• Colonies controlled by Royal
Governors
BUT local assemblies used
“power of the purse”
- Colonial assemblies paid the
governor’s salary!
Royal
Governor
Council
Colonial
Assemblies
CAUSE:
Increased
Competition
in Europe
2 EFFECT:
Mercantilism
3 EFFECT:
Trade imbalance
in Colonies
Dominion of New England
Glorious Revolution
6 EFFECT
Colonial
Self-Government
5 EFFECT
Salutary
Neglect
4 EFFECT
Colonial Smuggling
Royal Crackdown
Mercantilism
PROS
CONS
Mercantilism
CONS
PROS
• England paid bounties on shipping
industry =government subsidies
• Stifled American economic initiative
• Southern Colonies favored over Northern
• America had a monopoly on Tobacco
• Cash Crop prices set by English Merchants
• America was not taxed to support the
English Army or Navy
• Gouging
• Americans generally. better off than
English
• Colonies were dependent on England
• Not equal partners
• Currency Depreciation