Running Head: ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM
The Role of Colonies Within The British Mercantilist System
Submitted by
J J
El Centro College
HIST 1301, Section 53001, Spring 2019
ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM
Tables Of Contents
Abstract ……………………………………………………………………………………………………………………………….1
Introduction………………………………………………………………………………………………………………………….2
How many colonies existed within the British mercantilist system? …………………………………………3
How was the mercantilist system developed?………………………………………………………………………4
What was the role of the colonies within the British mercantilist system? ………………………………..5
How did economic consideration affect decision making in England and North America? ………..6
What major changes occurred during the colonial era in the British mercantilist system? ………….7
How did the politics in the colonies differ from that of Great Britain? ……………………………………..9
Conclusion………………………………………………………………………………………………………………………….10
References………………………………………………………………………………………………………………………….12
ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 1
Abstract
The British developed the mercantilist system to determine the organization of economic
components, business, the state and workers. The idea behind the theory was that no nation
would survive without the colonies. There were four aims of mercantilism, they include
“encourage the growth of a merchant marine, provide protection for British manufacturing,
provide protection for British agriculture, and accumulate as much gold and silver as possible.
The colonies played a very important role within the British mercantilist system. They produced
raw material, agricultural goods and other commodities which the British consumers would have
had to import from their foreign competitors. These products were also exported to foreign
markets which improved the balance of trade.
A lot of changes occurred during the colonial era in the British mercantilist system including
population, religion trade and cultural changes. The colonists had more confidence in their
independence after the revolution. It signified a victory and sense of independence for members
of the colony. They were more confident and believed that the laws were sufficient in protecting
their rights and liberties. Also, the colonies believed that their allegiance with England was a
voluntary alliance. England, on their own part, were content with the results of the revolution.
They celebrated and returned to a buoyant economy. The aftermath of the revolution also led to
the passing of the Bill of right by the parliament. The most distinct factor between British and
American politics was in the role of the colonial governors. In most parts of the colonies, the
governor was appointed by the king or the proprietor. This made the governors more loyal to the
British leaders than the colonies.
ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 2
Introduction
The Mercantilist system was a predominant political system among European nations
between the sixteenth to eighteenth century. It governed the organization of the workers, state
and economic components. This political system essentially directed the interest of workers and
businesses to benefit the interests of the state. By the seventeenth century, the theory of
mercantilism was adjusted to include the idea of colonies.
The colonies became a very important part of the mercantilist system and historians believe
that the success of mercantilism could not have been achieved without them. European countries
including France, Spain, and England utilized mercantilism within their American colonies.
North America was subject to the mercantile system because they were an economic subsidiary
of Great Britain. North America produced raw material which Britain turned into finished goods
and sold to the rest of the world. Mercantilism was beneficial to the British and the colonies,
however the colonists were not treated as an equal alliance. The colonists were strictly forbidden
to undergo any type of production or trade outside of the mercantilist system. Great Britain on
the other hand, enjoyed economic buoyancy and an endless supply of natural resources.
In this essay, I will examine the role of the colonists in the British Mercantilist system and
the effect that economic considerations played on political decision making by answering the
following questions:
• How many colonies existed within the British mercantilist system?
• How was the mercantilist system developed?
• What was the role of the colonies within the British mercantilist system?
• How did economic consideration affect decision making in England and North America?
• What major changes occurred during the colonial era in the British mercantilist system?
• How did the politics in the colonies differ from that of Great Britain?
ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 3
How many colonies existed within the British mercantilist system?
Within the British mercantilist system, there were 13 colonies; New Hampshire,
Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware,
Maryland, Virginia, North Carolina, South Carolina and Georgia.
The civil war created considerable independence for the English Colonies in North
America. As a result, the king and the parliament could not manage them effectively. All the
colonies remained neutral except the royal colony of Virginia who supported the King (Jaycox,
2002). During the period, the largest English colonies were in the West Indies and the
commonwealth leaders could not find an effective way to control them (Jaycox, 2002). In 1651,
the parliament passed the first of the Navigation act because English trade was the main source
of economic growth (Jaycox, 2002). The Navigation Act of 1651 “required all trade goods
between England and her colonies, or among the colonies themselves, to be carried in English or
colonial ships, and all trade goods between the colonies and other nations to be carried in English
ships or the ships of the nation producing the merchandise” (Jaycox, 2002).
In 1642, after the Great Migration, there were 5 independent colonies left in New
England; Plymouth, Massachusetts Bay, Connecticut, New Haven, and Rhode Island. A year
after, commissioners from Massachusetts, Plymouth, Connecticut, and New Haven signed the
New England Confederation Compact in Boston (Jaycox, 2002). This compact was the first
attempt at unity by the English colonies. After the Civil war, Massachusetts bay colony became
very powerful and had New Hampshire and Maine under its control.
Similarly, to New England, the Chesapeake colonies took advantage of England’s
inattention to function independently. Life in the Chesapeake colonies was hard, and the
population grew mainly through immigration.
ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 4
How was the mercantilist system developed?
Mercantilism was a political system that determined the organization of economic
components, business, the state and workers (Christensen, 2010). It was a popular theory
between the sixteenth to eighteenth century in Europe. The idea behind the theory is that no
nation can survive without the colonies. There were four aims of mercantilism, they include
“encourage the growth of a merchant marine, provide protection for British manufacturing,
provide protection for British agriculture, and accumulate as much gold and silver as possible”
(Christensen, 2010).
Altogether, the parliament passed four types of mercantilist regulations between 1651 and
1733. The first regulation restricted the power of the Dutch in international trade. This law took
off with the enactment of the Navigation Act of 1651 that stipulated that all trade must be carried
out on English ships or colonial ships only (Goldfield, et al., 2014). This act further determined
that half of the crew members on trade ships had to be made up of Englishmen or colonists. After
the enactment of this Act, the maritime industry in England and the colonies became very
profitable.
The second regulation enacted was focused on specific colonial goods called enumerated
products. This rule stipulated that certain enumerated goods including tobacco, sugar, and indigo
could only be shipped to England and English colonies (Goldfield, et al., 2014).
The third and fourth regulation provided an upper hand for the England manufacturers
who produced for the colonial market. The law provided an advantage for the English
manufacturers in two major ways. Firstly, they subsidized raw materials used for production of
goods. This enables the English manufacturers to sell their goods at a cheaper price than the
other European manufacturers. Secondly, the regulation banned the large-scale production of
ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 5
wool, felt hats and iron. This also reduced the number of competitors for the English
manufacturers who produced for colonial markets (Goldfield, et al., 2014).
What was the role of the colonies within the British mercantilist system?
England was powerful as a result of its sophisticated market system, dynamic economy
and policy of mercantilism (Goldfield, Abbot, Anderson, Argersinger, Argersinger, & Barney,
2014). Mercantilism was a set of principles that determined the organization of business,
economic components, states and workers (Christensen, 2010). By the beginning of the 17th
century, the principles of mercantilism were modified to include the idea of colonies. This
development significantly influenced the economic growth of North America. England adopted
the mercantilism policy to achieve a favorable balance of trade with exports exceeding imports
within the empire (Goldfield, et al., 2014). The mercantilism policy was enacted to benefit the
British, however, the contribution of the colonies was required for its success.
The colonies played a very important role within the British mercantilist system. They
produced raw material, agricultural goods and other commodities which the British consumers
would have had to import from their foreign competitors. These products were also exported to
foreign markets which improved the balance of trade (Goldfield, et al., 2014). By the late 1760s,
sugar exports had risen to a value of approximately 50% more than the value of all other exports
from British American colonies (Goldfield, et al., 2014). The Chesapeake colonies primarily
produced tobacco, South Carolina primarily produced rice and Indigo and the Middle colonies
primarily produced wheat. The New England colony did not contribute much with regards to
crop production, but they benefited from transporting other colonies goods. Additionally, New
England helped to strengthen trade links to the West Indies. British and colonial traders also sold
ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 6
rum to Africans in exchange for slaves. The British controlled majority of the slave market but
New Englanders also profited from the market (Goldfield, et al., 2014).
The British relied on the Colonies as a relatively inexpensive way to exploit labor and
land. The colonies were beneficial because they made it possible for the British to expand their
population without losing any territory. Those in charge of the colonies turned a blind eye to this
model because it was profitable for them. They received bribes and ignored the activities within
the colonies until it was too late to do anything about it. The colonies continued to grow in
strength, and spending power. This growth was possible due to the Trade laws which governed
the import and exports of goods within the colonies. By the time, the revolution started, the
colonies had already gained a large amount of strength and independence.
How did economic consideration affect decision making in England and North America?
In 1660, James, the duke of York encouraged his brother King Charles to appoint
millitary officers as royal govenors. James also convinced King Charles to create the Lord of
Trades to oversee the colonies (Goldfield, et al., 2014). Thereafter, King James II created the
Dominion of New England out eight colonies in1685. Sir Edmund Andros was chosen to
overthrow Dominion of England. The Glorious revolution… Eventually Andros was overthrown
by Bostonians and sent back to England. The Glorious revolution affected the colonies. For
instance, after Andrew was overthrown, Jacob Leisler who ruled New York as a dictator
(Goldfield, et al., 2014). Another noticeable effect was the attempt to end catholic proprietorship
by protestants in Maryland.
In Massachusetts, there was a three-year period without governorship due to the fact that
Andros was overthrown. As a result, the colony was thrown into a state of confusion and
ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 7
economic deterioration. This tension led to a widespread accusation of witchcraft among
members of the colony. A lot of women were executed by hanging because they were accused of
being witches (Goldfield, et al., 2014). In addition to the tension from the economic change, the
colony was also experiencing tension from the appointment of a new minister.
Generally, the aftermath of the Glorious Revolution created dramatic changes within
England and the colony. The colonists had more confident in their independence after the
revolution. It signified a victory and sense of independence for members of the colony. They
were more confident and believed that the laws were sufficient in protecting their rights and
liberties. Also, the colonies believed that their allegiance with England was a voluntary alliance.
England, on their own part, were content with the results of the revolution. They celebrated and
returned to a buoyant economy. The aftermath of the revolution also led to the passing of the Bill
of right by the parliament.
What major changes occurred during the colonial era in the British mercantilist system?
A lot of changes occurred during the colonial era in the British mercantilist system
including population, religion trade and cultural changes. In terms of population, there were a
higher number of artisians within the colonies. They were mainly focused on trades involved in
the exportation of the finished products. During that time, it was common to see an artisians team
made up of his wife and children. Consequently, their workshop was commonly attched to their
houses or situated within the house. Another change with regards to population was the growing
gap between the rich and the poor. Goldfield, et al. (2014) states that “In 11687, the richest 10
percent of Boston’s residents owned 46% of the taxable property in the town”. The increased
demand for labor also led to a higher number of slaves within the colonies.
ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 8
Culturally, many of the colonists felt inferior to the Britain’s. The. Colonists imitated
British style and religion to make themselves fit in. By the eighteenth century, colonists had
become accustomed to a lavish lifestyle. The colonists owned more high-quality imported goods
than their parents and grandparents. Earlier colonists had maintained a more conservative
lifestyle spending most of their income on land and landed property (Goldfield, et al., 2014).
Asides from imported goods, the wealthy colonists also built large, fancy houses with designs
from Britain architectural books.
The colonists also imitated the British courtesy and mannerism. Some of them went as far
as importing courtesy books to learn the rules of politeness. In some boarding schools within the
colonies, girls were taught “polite education” (Goldfield, et al., 2014). The Eighteenth-century
colonists had more access to printed material than the earlier colonies. Due to this opportunity,
the level of literacy was higher than that of the earlier colonies. Interestingly, most members of
the colonists learnt how to read and write by learning how to read the Bible. The educated
colonists were particularly interested in the age of enlightenment (Goldfield, et al., 2014).
Thinkers of the age of enlightenment were more interested in human nature and natural laws.
They did not agree with the idea that God created the world and everything in it. The colonial
intellectuals were curious and excited about this new community and made efforts to be
associated with them.
Religion became very popularly in the colonies and there were a lot of churches erected
there. Goldfield, et al. (2014) noted that “church steeples dominated the skylines of colonial
cities. By the 1750s, Boston and New York each had eighteen churches and Philadelphia boasted
twenty”. Most of the colonies had congregational churches which were headed by Harvard and
Yale trained ministers. Consequently, members of the colonies supported the ministers by paying
ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 9
taxes. Unlike the churches in Britain, the churches in the colonies were spiritually diverse,
competitive and comparatively weak. Religion greatly influenced politics in the colonies, and it
was common for voters to vote for candidates who shared the same religious beliefs with them.
How did the politics in the colonies differ from that of Great Britain?
The colonies believed in the American political style of actual representation. Therefore,
they believed that elected officers should be responsible for the common interest of the masses.
They believed strongly in the voting system and that the people have the right to choose their
leaders. This belief was in direct conflict with the political beliefs of the British.
The British on the other hand, viewed politics as a social organization structured like a
family. Only male adults were allowed to own property during that era. Women and children had
to rely on their husbands or fathers for economic decisions. Similarly, only adult males were
allowed to occupy political positions within the British political system. The British viewed
women as insubordinate to men and therefore rendered them incapable of making important
decisions.
The most distinct factor between British and American politics was in the role of the
colonial governors. In most parts of the colonies, the governor was appointed by the king or the
proprietor. This made the governors more loyal to the British leaders than the colonies. Despite
this factor, majority of the colonists accepted the political conditions of the British. Ultimately,
they felt that their relationship with Britain was voluntary and beneficial to both parties.
By the eighteenth century, American politics had grown to be closer to the Britain model
of politics. During that era, the main difference between the colonists and Britain politics was the
lack of aristocracy. Asides that, they were fairly similar. For instance, “land ownership was a
ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 10
prerequisite for political participation, because it freed people from dependence on others and
gave them a stake in society”. This condition limited the number of eligible participators in
Britain but had a larger amount of participants in the colonies. This was because land ownership
was more widespread in the colonies than Britain. Goldfield, et al. (2014) explained this
disparity “a majority of white male farmers eventually owned the land they tilled and, in most
colonies, 50 to 75 percent of white men were eligible to vote”.
Conclusion
Through this research, I discovered that the colonies played a very significant role within
the British mercantilist system. The colonist were a convenient source of labor and land for the
British Empire. They produced goods which were exported to other European countries. The
British also took advantage of their lands for planting and harvesting crops and raw materials.
These efforts were primary to the success of the British mercantilist system.
I also discovered that the economic considerations had a positive influence om politics in
England and North America. Due to the huge economic growth, North Americans were more
confident in their position within the colonies. They also believed that their alliance with Britain
was voluntary and not forceful. North Americans were also confident with their alliance with
Britain because they felt like it was beneficial for both parties due to the economic growth. They
felt like their rights were protected under the laws of the British system. The British, on the other
hand were content with the economic outcomes of the mercantilist system. They benefited from
the huge economic growth and the buoyancy from the system. Also, the British Parliament
Passed the Bill of rights as an aftermath of the economic buoyancy.
ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 11
Overall, mercantilism transformed the military, developed skilled labor and increased the
economic power of European nations. Mercantilism also paved the way for capitalism which
involves private control of the market. However, its success was mainly due to a limited
knowledge of the laws of economics. It is uncertain if mercantilism would have thrived in a
balanced economy driven by profit and private market control. Hence, after the eighteenth
century, no nation in the modern world has attempted to adopt the policy of mercantilism.
ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 12
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