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The Impact of Mercantilism and the Grenville Program on Colonial America

This overview discusses mercantilism and its application through the Grenville Program in the American colonies. Mercantilism aimed at making England self-sufficient and fostering a favorable trade balance, benefiting British industries while stifling colonial manufacturing. The Navigation Acts enforced strict trade regulations, leading to smuggling and unrest among colonists. Grenville's policies, including the Sugar Act and the Stamp Act, sought to raise revenue but triggered significant resistance, uniting colonists against perceived tyranny, ultimately contributing to the path toward independence.

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The Impact of Mercantilism and the Grenville Program on Colonial America

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  1. Mercantilism & the Grenville Program

  2. Doctrine of Mercantilism • England sought to become self-sufficient • Wanted favorable balance of trade (more exports than imports) • Protect home industries from foreign competition • Draw inexpensive raw materials from colonies

  3. Mercantilism cont. • Create captive market for British goods • System meant to enrich mother country • Required govt. regulation to work properly • Also needed large merchant & battle fleet to operate profitably & safely

  4. Trade & Navigation Acts (1651-63) • Meant to help England in its commercial competition w/ Holland • Benefiting British merchants & manufacturers and shipbuilders • Colonial trade only in English or Colonial ships • Certain enumerated goods to be sold only to England by colonies • Sugar, tobacco, Naval supplies, furs

  5. Navigation Acts cont. • Most foreign goods imported into colonies went thru England 1st • Had to pay an import tax there • Laws passed to restrict colonial manufacturing • Items that competed w/ English products incl. wool, hats, iron, etc. • bounties paid to manufacture some items

  6. Effects on Colonies • Board of Trade created in 1696 - brought some efficiency to enforcement • Unfavorable balance of trade for colonies • Helped New England shipbuilders • Hurt plantation colonies • Little serious effort to enforce the acts • Colonists ignored laws and smuggled

  7. New Imperial Policy • After F & I War, British colonial policy changed • Stricter enforcement & new laws • Parliament wished to raise revenue in colonies to offset imperial expenses • 1763 - new P.M. George Grenville

  8. George Grenville • Increased # of customs collectors, royal inspectors & naval patrols • Export of finished goods restricted • Writs of Assistance (search warrants) issued to curtail smuggling • No probable cause needed - could search anywhere to locate illegal shipments

  9. Reaction to Writs of Assistance • James Otis (Boston Lawyer) challenged legality of Writs in court • Claimed they violated fundamental rights of Englishmen (tyranny) • Court ruled Writs were legal • Otis’ arguments rallied public opinion against Writs - protests continued

  10. Revenue Acts Sugar Act (1764) • Raised duties on foreign sugar, textiles & other goods • Lowered duty on molasses to discourage smuggling • Charges of smuggling to be decided in admiralty courts (no jury trial)

  11. Reaction to Sugar Act • New England & Middle Colony merchants defied law - believed act would ruin colonial economy • continued smuggling & illegal foreign trade • Strong objections to trying cases in admiralty courts - violation of rights

  12. Quartering Act of 1765 • An attempt to reduce cost of military presence in colonies • Colonists must provide lodging and supplies for British troops • Colonists opposed supporting a standing British army in times of peace - also intimidating

  13. Stamp Act of 1765 • Required a tax stamp on most printed material & legal documents • 1st internal tax levied on colonies • Alienated influential colonial leaders such as lawyers, merchants, printers • Parliament generally seen as circumventing colonial assemblies’ control of taxation & threatening rights

  14. Reaction to Stamp Act • Patriotic societies (Sons of Liberty) formed to organize resistance to tax • Stamp collectors harassed & assaulted - stamps destroyed • Non-importation & non-consumption agreements formed to force repeal • Otis argued that colonists could not be taxed without their consent

  15. Reaction to Stamp Act cont. • Grenville argued that colonies had “virtual representation” - all members of Parliament represented the interests of the empire • “No taxation without (actual) representation” was the reply • Distribution & sale of stamps effectively halted thru various forms of protest

  16. Stamp Act Congress (NY - 1765) • Delegates from 9 colonies • Demand repeal of stamp tax based on rights & consent • Petition King George III for relief • Acknowledge Parliament’s authority to pass regulatory laws but reject internal taxation without representation

  17. A Uniting Factor • Reaction to Grenville’s policies served to unite various elements of the colonies into a common cause against English rule.

  18. Repeal of Stamp Act (1766) • Change of ministers in London brings about repeal • William Pitt, Edmund Burke spoke in support of colonists’ arguments • Protests a factor but main reason for repeal is the sharp decline in colonial trade due to non-importation & consumption agreements

  19. Declaratory Act (1766) • Passed at same time as repeal of Stamp Act • Affirmed Parliament’s power to pass laws affecting the colonies “in all cases whatsoever”

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