Colonial America and Mercantilism

Overview of Colonial America and Mercantilism

  • Introduction to Mercantilism
    • Economic theory practiced primarily by European countries with colonies, notably:
    • England
    • France
    • Spain
    • Netherlands
    • Collected focus on colonies as part of mercantilism, but not practicing it independently.

Goals of Mercantilism

  • Primary Goal: Self-Sufficiency

    • Self-sufficiency pertains to the mother country, not the colonies.
    • Example of England's focus:
    • Aim to thrive using domestic resources and those from colonies.
    • Issues arose if colonies became self-sufficient:
    • Potential for independence from the empire.

  • Favorable Balance of Trade

    • England aimed to export more than it imported.
    • Assistance from colonies:
    • Commodities like tobacco and sugar were vital.
    • Pre-colonial trade scenario:
    • England purchased tobacco and sugar; after colonization, England exported these goods instead.

  • Other Goals

    • Accumulation of Gold and Silver:
    • Considered a sign of power and wealth but minimal colonial participation.
    • Control of Industry and Labor:
    • Not relevant for colonies.
    • Stimulation of Farming and Manufacturing:
    • Related to the production of essential commodities like tobacco and sugar.
    • Overall Conclusion:
    • Colonies ultimately existed to benefit their mother countries economically.

Economic Development Theories in Colonial America

  • Stable's Thesis

    • Relevant mainly to Southern colonies.
    • Focus on staple crops to stimulate economy:
    • Example: Demand led to increased supply of crops like tobacco, rice, and sugar, facilitating monetary exchange and economic development.

  • Malthusian Tradition

    • Applicable to North American colonies.
    • Correlation of population growth and economic prosperity.
    • Not universally applicable; does not hold in some global contexts.

The Prosperity of the Colonies in the 1700s

  • Golden Age of Colonial America
    • Prosperity attributed to trade and commerce:
    • Most crucial element for economic survival and growth.
    • The trade involved exporting raw materials to England, which would produce finished products for sale back to the colonies.

Regional Economic Differences

  • Southern Colonies

    • Agricultural economy dependent on staple crops due to fertile soil.
    • Main crop: Tobacco
    • Production example: 1619 - 20,000 pounds; 1688 - 20,000,000 pounds
    • Became a medium of exchange, leading to laws that mandated the growth of other crops like corn for sustainability.
    • Other staple crops include rice and indigo:
    • Rice grown along Georgia and South Carolina coastlines and required periodic flooding.
    • Indigo sourced for the British textile industry, with government incentives for its growth.
    • Naval stores (North Carolina):
    • Products like tar and turpentine were essential for the British navy.
    • Hemp emergence later on, primarily for rope making, in the colonial period.

  • New England Colonies

    • Less reliance on staple crops and more focus on fisheries and trade:
    • Main agricultural products: Grains (barley, wheat, corn)
    • Fishing (mackerel, halibut, whales) was crucial; whales provided oil for lighting and perfume.
    • Ship building was significant due to abundant timber resources.
    • Production of rum from grains for trade.

  • Middle Colonies

    • Mix of Southern and New England economic patterns:
    • Grain production for both domestic use and export.
    • Fur trading with local Native Americans contributed to the economy.

Trade Patterns and Navigation Acts

  • Crucial Role of Trade
    • Single most important element in the colonial economy:
    • Colonies existed to benefit the mother country.
    • Navigation Acts aimed at ensuring British economic benefit through tight control of colonial trade:
    • Prohibition of inter-colonial trade, benefiting England neither directly nor indirectly.
    • Trade must occur on British vessels to ensure economic monopoly.

Colonial Conflicts and Prelude to Revolution

  • Corresponding Colonial Conflicts

    • Wars in Europe often ignited conflicts in American colonies:
    • Examples: War of Spanish Succession – Queen Anne's War, War of Austrian Succession – King George's War, and the French and Indian War (Seven Years' War)
    • French and Indian War seen as war for empire; expensive for British government.

  • Post-War Taxation

    • Rising British debt led to the taxation of colonies, sparking discontent due to lack of representation in Parliament ("no taxation without representation").
    • Stamp Act of 1765: Direct tax on printed materials, leading to colonial protests.
    • Example: Samuel Adams led protests against the Stamp Act.
    • Stamp agents faced harassment; protests became prominent in Massachusetts.
    • Townsend Acts of 1767: New direct taxes imposed on essential items: paper, glass, lead, paint, and tea.
    • Led to boycotts and increased colonial discontentment.

  • Boston Massacre (March 5, 1770):

    • Incident fueled by colonial harassment of British troops.
    • Resulted in five colonists being killed, including Crispus Attucks, symbolizing the growing revolution.
    • Propaganda publicized the event, inciting further resentment against British rule.

  • Samuel Adams: Prominent figure in organizing resistance, founder of the Sons of Liberty, advocating against British control over colonial representation and rights.