4AN ECONOMIC THEORY PRINCIPLES COLONIES EXIST TO BENEFIT THE MOTHER COUNTRY.COLONIES PROVIDE RAW MATERIALSCOLONIES PROVIDE MARKETS FOR FINISHED PRODUCTSCOLONIES PROVIDE MILITARY OUTPOSTS.
5MORE PRINCIPLES COLONIES RECEIVE TRADING RIGHTS WITHIN THE EMPIRE COLONIES ARE PROTECTED BY THE MOTHER COUNTRY.THE MOTHER COUNTRY SHOULD HAVE A POSITIVE TRADE BALANCE.COLONIES CANNOT TRADE OUTSIDE THE COLONIAL SYSTEM.
6BRITISH MERCANTILE POLICY NAVIGATION ACTS CONTROL TRADE WITHIN THE EMPIRE.NAVIGATION ACT ALL MUST BE CARRIED BY BRITISH SHIPSNAVIGATION ACT 1660 – ENUMERATES GOODS.AMERICANS CANNOT SELL OUTSIDE THE EMPIRE.NEW NAVIGATION ACT AMERICANS CAN ONLY BUY BRITISH GOODS.
7POLICY OF SALUTARY NEGLECT NAVIGATION LAWS ONLY RANDOMLY ENFORCEDAMERICANS OPENLY VIOLATE THE NAVIGATION ACTS.NO SERIOUS CONSEQUENCES“LAW WITHOUT SANCTION IS NO LAW” IT IS A REQUEST.
8MOLASSES ACT 1733 6 PENCE PER GALLON TAX ON MOLASSES CAN ONLY BE PURCHASED IN BRITISH WEST INDIES.AMERICAN OBJECT, LAW IS NOT ENFORCED.
9VICTORY CHANGES BRITISH POLICY 1763 FACED WITH NATIONAL DEBTPARLIAMENT ABANDONS SALUTARY NEGLECTWILL NOW VIGOROUSLY ENFORCE THE NAVIGATION ACTS.
10THE GRENVILLE PROGRAM NEW LAWS GOAL:GET AMERICANS TO PAY 1/3RD OF COST OF DEFENSE.REDUCE THE NATIONAL DEBTMAKE THE AMERICAN COLONIALS RESPECT BRITISH LAW
11THE CAUSES OF THE REVOLUTION A NEW AMERICAN ATTITUDESELF ASSUREDWANTED MORE SELF CONTROL. DID NOT WANT TO BE SUBORDINATE
12A NEW BRITISH ATTITUDE WANTED TO TIGHTEN CONTROL OF THE COLONIES. MAKE THE COLONIES PAY ONE THIRD THE COST OF THEIR DEFENSE.
13BRITISH POLITICS THE RISE OF KING GEORGE III 1760 THE END OF SALUTARY NEGLECT.
14Who is King George III? Extremely stubborn His government was filled with men who were…InexperienceInward-lookingNarrow – mindedWanted to control the colonies50 years of Whig power was about to give way to a conservative government dominated by the King.
15Navigation Laws Purpose: enforce the mercantilist system Motive: First enacted in 1651; aimed at rival Dutch shippers who were active in the American trade.Basic provisions passed in 17th and 18th centuries:Restricted commerce to and from the colonies to English or American vessels.Certain "enumerated" articles (tobacco) couldn’t be shipped to any other foreign market except EnglandAll European goods going to America had to go through England first.Certain restrictions on colonial manufactures for export: British did not want manufacturing competition with the Colonies.Molasses Act (1733)
16Positive ImpactUntil 1763, it did not adversely impact the colonial economy.Colonials had rights of Englishmen and opportunities for self-governmentColonies had British military protectionColonies greatly profited from manufacturing and trading.
17Negative ImpactColonial manufacturing was hindered by British policies.Southern colonies suffered as export prices droppedNew England resented favorable British policies toward Southern colonies (who produced tobacco, sugar and rice).
18NEW COLONIAL POLICY THE USE IF WRITS OF ASSISTANCE Search warrants by British customs officers harassed colonial shipping.Aimed to reduce colonial smugglingJAMES OTIS PROTESTS THEIR USE AS A VIOLATION OF THE RIGHTS OF ENGLISHMEN.Otis’ efforts gained press throughout the colonies.Wrote famous words "no taxation without representation."THE PROCLAMATION OF 1763
19THE GRENVILLE PROGRAM 1763- 1766 THE SUGAR ACT OF 1764First act ever passed specifically that raised revenue for the crown.Aimed to regulate the illegal triangular tradeReduced taxes on molasses but taxed all molassesNot enforced effectively
20Continued…. THE STAMP ACT 1765 THE FIRST DIRECT TAX. Purpose: Raise revenues to support the new military force in the coloniesProvisions:Official stamps would serve as proof of payment.Tax applied to published materials and legal documents e.g., pamphlets, newspapers, diplomas, bills of lading, marriage certificates, death certificates, mortgages, insurance policies, liquor licenses, & playing cards.Both Sugar Act and Stamp Act provided for trying offenders in admiralty courts where juries were not allowed
21THE AMERICAN REACTION THE STAMP ACT CONGRESS Brought together 27 delegates from 9 coloniesMassachusetts invited colonies who adopted Virginia Resolves to meet.Drew up a statement of their rights and grievances Largely ignored in England; of little consequence in the coloniesSignificance: Brought together reps from different & rival colonies and set a precedentRESOLUTIONS OF PROTEST TO THE KING
22THE AMERICAN REACTION (cont) THE SONS OF LIBERTY LEAD BY SAMUEL ADAMSViolently enforced nonimportation agreements against violators (tarring & feathering was one painful tactic).NON-IMPORTATION AGREEMENTS.Of British GoodEngland economy suffered from non-importationWas not decisive in reversing Parliament’s decision
23REPEAL OF THE GRENVILLE PROGRAM THE NEW MOLASSES TAXTHE DECLARATORY ACT 1766Purpose was partly to save faceClaimed that Parliament had the right to tax colonies in the futureGRENVILLE IS REMOVED FROM POWER.
24THE TOWNSHEND PROGRAM 1767 CHARLES TOWNSHEND TAKES OVER. NO DIRECT TAXES.Small import duty placed on glass, white lead, paper, paint, silk and tea.Tax was an indirect customs duty ("external tax")MAKES PROVISION TO PAY ROYAL GOVERNORS.Revenues from taxes to pay salaries of royal governors and judgesCUT POWER OF THE PURSE.
25MORE:SUSPENDS THE NEW YORK LEGISLATURE FOR REFUSING TO QUARTER TROOPS.Certain colonies required to provide food & quarters for British troops.INCREASES USE OF WRITS OF ASSISTANCE.SMUGGLERS TRIED IN ADMIRALTY COURTSEstablished a commission and vice-admiralty courts for enforcement.Royal judges would be allowed to grant "writs of assistance" in private homes, shops or warehouses.
26AMERICAN REACTION TO TOWNSHEND DUTIES NEW NON-IMPORTATION AGREEMENT.JOHN DICKENSON’S “LETTERS FROM A FARMER.”Challenged distinction between "internal" and "external" taxes.Denied right to levy taxes for purpose of revenue.Prompted the Massachusetts Circular LetterMassachusetts legislature, urged by Sam Adams and James Otis, supported Dickinson's arguments and called for other colonies to pass petitions calling for Parliament to repeal the acts.OPEN VIOLATION OF THE LAW.
27THE BOSTON MASSACRE, 1770 SON’S OF LIBERTY PROVOKED THE INCIDENT. 5 AMERICAN COLONIALS KILLED.JOHN ADAMS DEFENDS THE SOLDIERS.VIOLENCE INCREASES.
28LORD NORTH BECOMES PRIME MINISTER TOWNSHEND DUTIES REPEALEDEXCEPT FOR SMALL TAX ON TEA.NON-IMPORTATION AGREEMENTS END. AMERICANS BUY SMUGGLED TEA .
29THE FINAL CRISIS BASIC ISSUES UNRESOLVED. SAM ADAMS ORGANIZES “COMMITTEES OF CORRESPONDENCE.”Some colonial discontent continued as British redoubled efforts to enforce the Navigation Laws.Samuel Adams used propaganda to whip up colonial resentmentAdams organized in Mass., Nov.1772.To spread propaganda and info. by interchanging letters in order to keep opposition to British policy alive.Intercolonial committees of correspondence emergedIntercolonial groups evolved directly into the first American congresses.1773 EAST INDIA COMPANY MONOPOLY ON TEA TRADE WITH THE COLONIES.PRICE FALLS BELOW SMUGGLED TEA.
30THE BOSTON TEA PARTY. 1773 SONS OF LIBERTY DUMP $750,000 WORTH OF TEA. BRITISH RESPOND BY PASSING:THE COERCIVE ACT OR INTOLERABLE ACTS 1774CLOSE BOSTON HARBOR
31OTHER BRITISH REACTIONS SUSPEND MASS. LEGISLATURE AND TOWN MEETINGS.PASS THE QUARTERING ACT 1774PARLIAMENT PASSES THE QUEBEC ACT 1774BRITISH OFFICIALS ACCUSED OF CRIME WILL BE TRIED IN BRITAIN.
32COLONIAL REACTION CALL THE FIRST CONTINENTAL CONGRESS 1774 DEMAND REPEAL OF THE INTOLERABLE ACTS“SUFFOLK RESOLVES” WHICH DECLARE INTOLERABLE ACTS VOID.
33FCC: Sept. 5 to Oct. 26, 177412 of 13 colonies present (except Georgia)Delegates included S.Adams, J. Adams, G. Washington, & Patrick Henry.1st Step: endorse several resolutions known as the Suffolk Resolves.Denounced "Intolerable" ActsUrged colonies to organize militia for defensive purposesCalled on colonies to suspend all trade with rest of British empireUrged citizens not to pay taxes.Rejection of Galloway PlanJoseph Galloway called for a colonial union required to approve all parliamentary laws affecting the colonies
34MORE… “DECLARATION OF RIGHTS AND GRIEVANCES” Gave colonists the legal right to assemble in order to seek redress."Bill of Rights": established structure for the Declaration of Independence (Preamble, list of grievances and mutual pledge)DEMAND RESPECT FOR RIGHTS.
35OTHER REACTIONS FORM THE ASSOCIATION TO ENFORCE A BOYCOTT. Called for a complete boycott of British goods: nonimportation, nonexportation, and nonconsumption.ADVISED COLONIAL MILITIAS TO STOCKPILE WEAPONS AND POWDER.CALL FOR “THE SECOND CONTINENTAL CONGRESS” TO MEET IN 1775.