UNITED
STATES
HISTORY
Mercantilism Flow Chart
What did this mean for
ENGLAND:
MERCANTILISM
GOAL
What did this mean for the
COLONIES:
JUSTIFICATION for the
NAVIGATION ACTS
Pattern of
ENFORCEMENT
EXAMPLES:
SALUTARY
NEGLECT
What did this mean for the
What did this mean for
COLONIES:
ENGLAND:
How did this contribute to the American
Revolution?
MERCANTILISM NOTES
THE AMERICANS, Chapter 3, Section 1
“England and Its Colonies”
I. England and Its Colonies Proper
Mercantilism: an economic theory that subscribed to the notion that a nation could increase its wealth and power
in two ways,
1. By obtaining as much gold and silver as possible
2. By establishing a favorable balance of trade: more goods are sold than bought
The ultimate goal was to become self-sufficient so that the country did not have to depend on other
countries for goods (assuming that, what is the role of colonies)
Colonies played two important roles in the mercantile system:
1. provided raw materials for the home country (ex: lumber, furs, fish and tobacco)
2. provided a market for the home country to sell the goods it produced (wooden furniture, iron utensils,
books and china)
Navigation Acts: a series of laws enacted by Parliament, beginning in 1615, to tighten England’s control of trade
in its American colonies
Colonists could not resist the urge to trade with European countries other than England for a profit –
including Spain, France and Holland
England viewed this as an economic threat
According to the Mercantilist Theory, any wealth flowing from the colonies to another
nation came at the expense of the home country
English Parliament tightened controls on colonial trade by passing the trade and navigation acts
1. no country could trade with colonies unless shipped in colonial or English ships
2. Crews of all vessels must be ¾ English or colonial
3. Certain products could only be shipped to England (tobacco, sugar, rice, molasses and furs)
4. All goods traded between the colonies and Europe had to go through English ports (to provide
work for English dockworkers and money from import taxes)
The Navigation Acts were most beneficial to England, but were also helpful to colonists
Spurred Colonial shipbuilding industry
English demand for goods encouraged Colonial economy
II. Tensions Emerge
Some colonists did resist the acts
Smuggling and illegal trade was frequent
As a necessary move to control Massachusetts Puritans who resisted the belief that English laws had power over
them, England revoked its corporate charter in 1684 and it became a royal colony
The northern states were briefly united into the Dominion of New England in 1685, ruled by the
unpopular Sir Edmund Andros
The Dominion was dissolved and original charter restored following the Glorious Revolution in England
Glorious Revolution: the transfer of the British monarchy from James II to William and Mary (1688-1689)
following James’ lack of respect for Parliament and fears that he would begin a Catholic dynasty in England
III. England Loosens the Reigns
Salutary Neglect: an English policy of relaxing the enforcement of regulations in its colonies in return for the
colonies’ continued economic loyalty
Relied on Colonial loyalties to the crown
Causes:
English attention to France and economic competition on the European mainland
New Navigation Acts that were designed to tighten colonial grip but ultimately loosened
England’s hold (requirement of crown-appointed judgment and Board of Trade to monitor
colonial trade)
Impact on the Colonies:
Provided colonial assemblies (rather than governors) with broad powers – developing selfgovernment practices