Britain: Overseas economy

North American expansion

Settlements such as Jamestown and Plymouth grew by migration and economic opportunities through tobacco, timber and fur

Britain established a chain of colonies along the Atlantic seafront strengthening commercial

Tobacco trade was lucrative - 22m lbs exported from colonies by 1700

The Caribbean

Colonies such as Antigua, Barbados, Jamaica (captured from the Spanish in 1655) developed plantation economies on cash crops like tobacco coffee and sugar.

Relied on enslaved African labour and indentured servant

Slave population rose form 7k in 1670 and 77k in 1713

Navigation acts

Passed by Rump Parliament in 1651

Required goods being taken to or from British colonies to be taken on British ships

This was created to keep wealth and goods within the empire

Boosted Londons role as global trading hub

Anglo Dutch rivalry

Dutch initially dominated trade leading to rivalries e.g. EIC v DEIC

Rivalry led to Amboyna massacre 1623 killing 10 EIC workers

Also had competition over American colonies

Anglo - Dutch wars

Tested both countries’ naval strength and supported the enforcement of Navigation Acts

England emerged as the major naval and trading power, better suited to global imperial competition

1st war = 1652-54 - Mostly caused by the Nav Act which was reinforced after the English victory

2nd war = 1665-67 - Sparked by colonial rivalry in West Africa, Dutch victory confirmed by the 1667 Treaty of Breda

3rd war = 1672-74 - Reverted relations back to 1667, rivalry was ended by William marrying Mary and being crown king of England

East India Company

Established in 1600 initially focussing on spices like saltpetre and pepper

Attempt to challenge Dutch and Portuguese dominance in Asia

Early failures as traded in English surplus goods like wool

1623 Amboyna Massacre - 10 EIC workers killed by DEIC workers

Its charter and assets were revoked by Cromwell in 1657 but reinstated by Charles in 1660

Had powers to hold own army and mint currencies - Rupee in 1677

Peaked in power in 1680’s where average annual profit was £600k

Hugely benefitted from development of marine insurance as could take more risks due to 50% ship value coverage

Royal Africa Company

Established and chartered in 1660

Granted a monopoly over trade in West Africa, transporting tens of thousands of slaves to plantations

Also traded in gold and ivory enriching British merchants

1640 = 0 slaves in British colonies, 120k slaves by 1700

Controlled roughly 50% of total slave trade in Atlantic

Contributed African Gold to the creation of the Guinea coin, serving as promotion for the RAC by the king