Transatlantic Trade and Mercantilism

Transatlantic Trade

  • European nations sought to increase power through colonies and transatlantic trade.

  • Triangular trade: a three-part route connecting North America, Africa, and Europe.

    • New England to West Africa: rum for captive Africans.

    • Middle Passage: Africans traded in the West Indies for sugarcane.

    • Return to New England: sugar processed into rum.

  • Royal African Company initially monopolized English slave trade; later opened to New England merchants.

Mercantilism and the Empire

  • Mercantilism: a country's wealth determined by excess of exports over imports.

    • Colonies existed to enrich the parent country by providing raw materials.

  • Navigation Acts (1650-1673): implemented mercantilist policies.

    • Trade to/from colonies restricted to English or colonial ships with English/colonial crews.

    • Imports to colonies (except perishables) had to pass through English ports.

    • Enumerated goods from colonies could be exported to England only.

Impact on the Colonies

  • Mixed effects of Navigation Acts:

    • Aided New England shipbuilding and provided Chesapeake tobacco a monopoly in England.

    • Provided English military protection.

    • Limited colonial economy due to restrictions on manufacturing and trade.

  • Trade with American Indians continued, leading to cultural exchanges.

Salutary Neglect

  • England's lax enforcement of trade regulations due to:

    • Distance, internal conflicts, and corrupt colonial agents.

  • England and its colonies were natural trading partners because of close economic and cultural ties.

Dominion of New England

  • In 1684, the crown revoked the charter of Massachusetts Bay due to smuggling.

  • James II created the Dominion of New England in 1686, combining several colonies under Governor Andros.

  • Andros's unpopular policies led to his downfall after the Glorious Revolution.

Ongoing Trade Tensions

  • Mercantilist policies remained post-Glorious Revolution, but enforcement was inconsistent.

  • Salutary neglect and colonial resistance continued until 1763.

  • Trade regulation was a fundamental problem between colonists and England.