2.4: Transatlantic Trade Systems and Mercantilism

The transatlantic trade system, or trade across the Atlantic Ocean, became a foundational element of the global economy during the $17^{th}$ century.
Early development of British colonies in the Americas was characterized by extreme hardship, including documented instances of survival cannibalism.
By the end of the $17^{th}$ century, colonial survival was no longer in question as many regions had established robust, thriving economies driven primarily by transatlantic exchanges.

The triangular trade is a specific model used to illustrate how maritime trade bound distant states together economically.
Cycle of Trade Example:
- New England to West Africa: Merchants shipped rum to West Africa.
- West Africa to the West Indies: Rum was traded for enslaved laborers, who were then transported across the Middle Passage.
- West Indies to New England: Enslaved laborers were traded for sugarcane in the West Indies. That sugarcane was shipped back to New England to be distilled into rum, restarting the cycle.
The Concept of Interdependence: No part of this system functioned in isolation.
- Rum production required sugarcane.
- Sugarcane production required a massive volume of labor.
- The acquisition of enslaved laborers was often facilitated by the trade of commodities like rum.
The profitability of this system fundamentally dictated the nature and focus of colonial economies.

A primary effect of trade was the colonial focus on producing high-demand commodities for the global market.
Example: Sugarcane in the British West Indies:
- Introduced to the Caribbean by Christopher Columbus, sugarcane thrived in the region's warm climate and fertile soil.
- In places like Barbados and Jamaica, sugar cultivation became the dominant economic activity.
- Consumer Demand: European demand for sugar was immense because it was used to sweeten bitter products.
As demand skyrocketed, these island economies became almost exclusively devoted to sugar production.

The intense labor requirements for planting and harvesting sugar led to a massive increase in the demand for enslaved labor.
This demand was largely met by enslaved Africans, though often-overlooked large-scale enslavement of American Indians for labor as well.
Harsh Conditions: The working environment in the sugar fields was exceptionally brutal and unforgiving, leading to high mortality rates among laborers. This constant loss of life further drove the demand for new enslaved arrivals, tightening the web of economic dependence.

Definition: Mercantilism was the dominant economic system of the era, emphasizing a "favorable balance of trade" defined as having greater exports than imports.
The "Pie" Metaphor: Mercantilism viewed the world's wealth specifically in terms of gold and silver. This wealth was seen as a finite "pie."
- To get a larger slice of the pie (wealth), a state had to ensure other states got less.
- Exporting goods brought gold into the country, while importing goods caused gold to flow out.
The Role of Colonies: Under mercantilism, the sole purpose of a colony was to enrich the "mother state" (Britain). Colonies provided raw materials and served as markets for the mother country’s exports.

Great Britain attempted to force the American colonies to serve the imperial economy through the Navigation Acts, which established three primary rules:
1. Taxation and Ports: Any goods imported by the colonists had to first pass through ports in England to be taxed.
2. Shipping Restrictions: All colonial trade goods had to be transported on English-built ships.
3. Enumerated Goods: Britain created a list of highly valuable goods (enumerated goods) that could only be exported to England and nowhere else.
These acts were designed to strip the colonies of their economic autonomy and ensure their activities benefited the British crown exclusively.

Because of the vast distance of the Atlantic Ocean, enforcement of British laws was often difficult.
Salutary Neglect: This was an unofficial period where Great Britain did not consistently enforce colonial trade laws. This occurred largely because Britain was distracted by other pressing issues and found it expensive or difficult to maintain constant oversight.
The Dominion of New England ( $1686$ ): Established by King James II, this was a "super-colony" that combined several individual colonies under one administrative unit to increase crown control.
- The King appointed a governor who did not answer to colonial elected assemblies.
- The governor replaced local elected officials with appointed ones, centralizing power and making it easier to enforce trade policies.
The Glorious Revolution ( $1688$ ):
- Parliament overthrew King James II and installed William and Mary as monarchs.
- The new monarchs agreed to rule with the increased power of Parliament.
- When word reached the colonies, rebellions broke out, leading to the collapse of the Dominion of New England and the return of elected colonial assemblies.

Trade was not limited to the transatlantic routes; colonists also traded extensively with indigenous populations.
Significant Effects of Trade with Indigenous People:
1. Technological Shifts: Colonists introduced metal tools, firearms ("boomsticks"), and horses. Tribes that acquired guns gained a significant power advantage over rival indigenous groups.
2. Epidemic Disease: Trade routes facilitated the spread of diseases such as smallpox and measles, causing massive population declines and devastation among American Indians.
3. Dependency and Division: As indigenous groups became increasingly dependent on European manufactured goods, they became more susceptible to external manipulation and internal social division.

Bacon's Rebellion serves as an example of the intersection between mercantilism and internal colonial conflict.
Events: A group of disenfranchised indentured servants attacked American Indian groups on the Virginia frontier. At least one of these groups was an ally of the British.
Escalation: The rebels eventually attacked the governor, William Berkeley, forcing him to flee.
Outcome: Berkeley eventually secured reinforcements from the British Navy and crushed the rebellion.
Policy Shifts: Following the rebellion, the crown briefly tightened control to ensure tobacco exports remained stable. However, the costs of managing colonial disputes often led Parliament to loosen its grip again. The enforcement of mercantilist policies remained erratic due to the high costs and commitments of the British Empire elsewhere.