How did mercantilism impact the American colonies?

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Presentation transcript:

How did mercantilism impact the American colonies?

3.1 England and its Colonies -Mercantilism OBJECTIVE: Learn about Mercantilism, the Navigation Acts and the Glorious Revolution Understand how the relationship between England and her colonies began to change before the revolution.

COMPARE/CONTRAST NORTHERN MIDDLE SOUTHERN

When, Why, and How did the various English settlements in the new world come to be controlled by England?

Keeping the colonies under England’s economic and political control PROBLEM: Keeping the colonies under England’s economic and political control England’s Solutions: 1651- 1686- After 1688 -

Keeping the colonies under England’s economic and political control PROBLEM: Keeping the colonies under England’s economic and political control England’s Solutions: 1651- Parliament passes Navigation Acts to regulate colonial trade 1686- James II merged northern colonies (Dominion of New England) and disbanded their local assemblies ---Andros After 1688 - Parliament strengthened (made them harsher) the Navigation Acts by creating Board of Trade (monitor) and moving trials to Admiralty Courts (crown appointed judge)

MERCANTILISM Wealth = Power More Wealth  More Power Export Revenue $ > Import Expenses Colonies Provide: Supplies of Raw Materials A Market for Finished Goods

KEY IDEA America existed to serve the interests of England America was a MEANS to English ENDS

Raw Materials England Colonies Currency Finished Products

Mercantilist Controls on Trade Navigation Laws, 1650 = only English ships may trade with the colonies Trade with Europe must first pass through England Certain products could only be made in England Currency was restricted – produced primarily in England “Royal Veto” used against colonial assemblies Royal Governor, ESPECIALLY Sir Edmund Andros

http://members.tripod.com/lylesj/trade/tritrade.html

Dominion of New England 3 EFFECT: Trade imbalance in Colonies CAUSE: Increased Competition in Europe 2 EFFECT: Mercantilism Dominion of New England Glorious Revolution 4 EFFECT Colonial Smuggling Royal Crackdown 6 EFFECT Colonial Self-Government 5 EFFECT Salutary Neglect

PROS & CONS of Mercantilism Stifled American economic initiative Southern Colonies favored over Northern Cash Crop prices set by English Merchants Gouging Colonies were dependent on England Not equal partners Currency Depreciation PROS England paid bounties on shipping industry =government subsidies American had a monopoly on Tobacco America was not taxed to support the English Army or Navy Americans generally. better off than English

Salutary Neglect Stricter regulations on trade not enforced AS LONG AS trade imbalance continued Board of Trade not followed as strictly as intended. Colonies controlled by Royal Governors BUT local assemblies used “power of the purse”

INTENTION/ CAUSE ECONOMIC CONTROL OF COLONIES UNINTENDED EFFECT UNIFY THE COLONIES