When the French and Indian War finally ended in 1763, no British subject on either side of the Atlantic could have foreseen the coming conflicts between the parent country and its North American colonies. Even so, the seeds of these conflicts were planted during, and as a result of, this war. Keep in mind that the French and Indian War (known in Europe as the Seven Years' War) was a global conflict. Even though Great Britian defeated France and its allies, the
victory came at great cost. In January 1763, Great Britain's national debt was more than 122 million pounds [the British monetary unit], an enormous sum for the time. Interest on the debt was more than 4.4 million pounds a year. Figuring out how to pay the interest alone absorbed the attention of the King and his ministers. Nor was the problem of the imperial debt the only one facing British leaders in the wake of the Seven Years' War. Maintaining order in America was a significant challenge. Even with Britain's acquisition of Canada from France, the prospects of peaceful relations with the Native America tribes were not good. As a result, the British decided to keep a standing army in America. This decision would lead to a variety of problems
with the colonists. In addition, an uprising on the Ohio frontier - Pontiac's Rebellion - led to the Proclamation of 1763, which forbade colonial settlement west of the Allegany Mountains. This, too, would lead to conflicts with land-hungry settlers and land speculators like George Washington (see map above). British leaders also felt the need to tighten control over their empire. To be sure, laws regulating imperial trade and navigation had been on the books for generations, but American
colonists were notorious for evading these regulations. They were even known to have traded with the French during the recently ended war. From the British point of view, it was only right that American colonists should pay their fair share of the costs for their own defense. If additional revenue could also be realized through stricter control of navigation and trade, so much the better. Thus the British began their attempts to reform the imperial system. In 1764, Parliament enacted the
Sugar Act, an attempt to raise revenue in the colonies through a tax on molasses. Although this tax had been on the books since the 1730s, smuggling and laxity of enforcement had blunted its sting. Now, however, the tax was to be enforced. An outcry arose from those affected, and colonists implemented several effective protest measures that centered around boycotting British goods. Then in 1765, Parliament enacted the Stamp Act, which placed taxes on paper, playing cards, and every legal
document created in the colonies. Since this tax affected virtually everyone and extended British taxes to domestically produced and consumed goods, the reaction in the colonies was pervasive. The Stamp Act crisis was the first of many that would occur over the next decade and a half. For additional documents related to these topics, search Loc.gov using such key words as Stamp Act, Indians, western
lands, colonial trade, navigation, and the terms found in the documents. Another strategy is to browse relevant collections by date. Part of
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 The Declaration of Independence
Key questionsRhode Island Colonists led by John Brown burn the British revenue cutter Gaspee The British had an empire to run. The way that they kept their economy healthy was through a system called mercantilism. Mercantilism was a popular economic philosophy in the 17th and 18th centuries. In this system, the British colonies were moneymakers for the mother country. The British put restrictions on how their colonies spent their money so that they could control their economies. They put limits on what goods the colonies could produce, whose ships they could use, and most importantly, with whom they could trade. The British even put taxes called duties on imported goods to discourage this practice. This pushed the colonists to buy only British goods, instead of goods from other European countries. The distance from Britain and the size of the British Empire was an advantage for the colonies. It was expensive to send British troops to the colonies. For many years, the British government’s philosophy was one of “salutary neglect.” This meant that they would pass laws to regulate trade in the colonies, but they did not do much to enforce them. The British knew that the colonies were benefiting from goods from the Dutch, French, and Spanish, however. Eventually, in 1763, they began to enforce many of the trade restrictions and even passed new ones. The Navigation Acts and the Sugar Act were two of the laws enacted to restrict colonial trade. Acts like these led to rebellion and corruption in the colonies. Colonists, particularly in New England, rebelled against these acts by illegally smuggling goods in and out of the colonies. Ships from the colonies often loaded their holds with illegal goods from the French, Dutch, and Spanish West Indies. The smugglers would pay bribes to British customs officials who were hired to regulate trade in the colonies. These officials also made a modest salary from the British, so they were benefitting from all sides. The American juries that tried smugglers, in times when they were actually caught, rarely found them guilty. Because they were gaining so much power, smugglers increased their secret trade to almost every port in the colonies. It is estimated that over 700,000 British pounds were brought into the American colonies each year at this time. Trade and TaxationBoston Harbor, circa 1746, was home to a successful colonial merchant fleet. England continued to tax the colonies. But since trade and taxation were difficult to control from far away, England made an agreement with the colonies. They would continue to regulate trade but allow colonists the right to levy their own taxes. You are marching in protest against having to buy goods imported only from Britain, regardless of where they originated. What does your poster say? The French and Indian War put this delicate agreement to the test. Because the war was expensive, the British believed that colonists should help pay for it. They argued that they had protected the colonists from French and Indian threats. As a result, new taxes were levied by the British, which horrified the colonists. Between the taxes they imposed and the measures the British Navy took to arrest smugglers, colonists were becoming increasingly angry. American shippers became more and more rebellious against trade restrictions with other countries. All of these actions served as stepping stones to the Revolution.
What was the main goal of the British policy of mercantilism toward the American colonies?British economic policy was based on mercantilism, which aimed to use the American colonies to bolster British state power and finances.
Which statement about the British policy of mercantilism is most accurate?Which statement about the British colonial policy of mercantilism is most accurate? Raw materials from the colonies were shipped to England.
What consequences did the policy of mercantilism have for British colonies in North America?Mercantilism brought about many acts against humanity, including slavery and an imbalanced system of trade. During Great Britain's mercantilist period, colonies faced periods of inflation and excessive taxation, which caused great distress.
What was the role of the colonies in the British mercantilist system after the 1650s?Under mercantilism, colonies were important because they produced raw materials for the mother country, goods that the country would have to import otherwise (things like grain, sugar, or tobacco). The colonies also gave the mother country an outlet for exports, which increased jobs and industrial development at home.
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During the colonial period the British Parliament used the policy of mercantilism to
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