1. The Original 13 Colonies

2. Reasons why England valued its North American colonies
1. The colonies supplied food and raw materials
- $$$
2. The colonies purchased large amounts of finished English goods

3. Reasons why England’s North American colonies could be problematic
1. Widespread, difficult to establish government
2. A great distance from England itself, also making government a challenge

4. Besides distance, what other reason did England have for neglecting its North American Colonies?

5. English Civil War Civil War from 1640-1660
Fought between King Charles I and Parliament
King limited the powers of Parliament by demanding taxes of the people
King is beheaded! (by Parliament’s orders)
Oliver Cromwell takes over, unrest ensues
Finally King Charles II takes the throne in 1660, restored stability

6. Economics
War debts emphasized the need for the colonies to contribute to England’s overall economic health.
The theory of Mercantilism was starting to become popular among the nations of Western Europe.

7. So, what is this “Mercantilism”?

8. Mercantilism
A theory that a country should try to collect as much bullion (gold and silver) as possible, creating wealth and power.
If a country sold more goods to other countries than it bought from them, it would acquire this bullion.
Put Simply: To become rich, exports should exceed imports

9. But how do the colonies fit in to Mercantilism?

10. England’s relationship with the colonies:
Believed the Colonies existed to benefit the “Mother Country” England
England had started the Colonies and had the right to benefit from them
And, Coming Soon…
England would provide armies and ships during the French and Indian War to the Colonies.
England developed a large debt during the French and Indian War to defend the Colonies.

11. Specific Purposes of the Colonies
To establish British Naval Power
building ships
providing England with ship-related supplies
providing sailors
Keep money in the empire!!
Providing raw materials
Providing other goods England could not produce
Tobacco
Sugar
Etc.

13. Mercantilism
England at first paid little attention to the colonies (civil war)
Then Charles II came to power,
Things changed!
England began exercising power over the colonies
First by punishing a defiant Massachusetts

14. Mercantilism
In 1662, the England legalized CT, and in 1636, recognized RI
Both of which took land from Mass.
Charles II then began to enforce and Issue the Navigation Acts!

15. Navigation Acts 1651, 1660, 1663, and 1673 Reinforced Mercantilism
Colonies exports go only to England and her other Colonies
Imports from elsewhere must go through England
extra tax will be added 
All goods (imports, exports) for the Colonies must be delivered by English ships.

16. Navigation Acts 1651, 1660, 1663, and 1673
England restricted the colonies from producing any goods also made in England!
England decided could be produced in the colonies.
Colonies are to complement England, NOT compete with England!!

17. Did the policy of Mercantilism Help or Hurt the American colonies?

18. It hurt the colonies!! The British could only buy so many goods
This drained the American economy.
The colonists had no money to buy what they needed if they could not sell their own products.
All would have to go into debt to obtain these goods 

19. Apply your knowledge Complete the worksheet
“Great Britain Controls Colonial Trade”

20. Stamp Act:  Placed tax on newspapers and other legal documents.
Sugar Act:  Lowered taxes on products leaving the Colonies but raised taxes on imported goods.
Currency Act:  England has the right to set currency only.
Townshend Act:  Place taxes on colonial imports of everyday goods.
Declaratory Act:  England has right to tax and rule over the Colonies