Aim #11: How did European beliefs in

mercantilism shape the American colonies?

Do now! If a law is only sporadically enforced, should it remain a law?

Think of some examples of times when you believe that laws are only enforced some of the time. What is the result?

Question: what is the main point of this cartoon?

Describe 2 things you notice going on in this diagram

(I) Background to Mercantilism

a. Theory that suggested that nations could become rich, powerful and self-sufficient if they acquired large colonial empires.

b. Weakened by Civil War, England lost control of colonial trade as Dutch and French traders took advantage.

(should England be run by an absolute monarch or by a Parliament subject to constitutional restrictions?)

c. As a result of their internal problems, colonies were allowed to develop their own political institutions and substantial degree of free enterprise (SALUTARY NEGLECT)

d. American colonies at this time varied and it took generations for a “unified” tradition to emerge

“To prohibit a great people, however, from making all that they can of every part of their own produce, or from employing their stock and industry in the way that they judge most advantageous to themselves, is a manifest violation of the most sacred rights of mankind.”

Source: Adam Smith (1723-1790) the Scottish “Father of Modern Economics”

Question: Was Adam Smith a proponent of mercantilism? Why or why not?

(II) Mercantilism and the Coloniesa. The Navigation Acts: a series of mercantilist laws

passed in the 1600s for the American colonies

b. 3 rules for colonial trade:

1. Goods shipped to or from the colonies could only be carried on English ships or colonial-built ships (with a majority of the crew being English)

2. Goods shipped to the colonies had to pass through English ports

3. Certain goods (tobacco) could only be exported from the colonies to Britain

c. response: colonists wanted options to use cheaper non-English shipping so laws were most ignored or at best, partially obeyed

Navigation Acts, 1651-1751Purpose Compliance

Act of 1651

Cut Dutch trade Mostly ignored

Act of 1660

Banned foreign shipping; enumerated good that go only to England (tobacco, sugar)

Partially obeyed

Woolen Act

Prevent export or intercolonial sale of textiles

Partially obeyed

Hat Act Prevent export or intercolonial sale of hats

Partially obeyed

Molasses Act

Cut American imports of molasses from French West Indies

Widespread violation of act

Iron Act Prevent manufacture of finished iron products

Widespread violation of act

(III) Effects of Mercantilism on the coloniesa. Positive effects of the Navigation Acts?

1. Shipbuilding industry of New England prospered

2. The colonies and their economic activities were protected by the British military

3. Tobacco industry of the Chesapeake enjoyed a monopoly in England

b. Negative effects?

1. Greatly slowed industrial growth of the colonies

2. Agricultural products were forced to abide restrictions in England (i.e. tobacco farmers were forced to sell their goods at low prices to the English market)

3. Colonists forced to pay inflated prices for good manufactured in England

Overall effect…Colonies felt resentment; many continued to smuggle goods and traded good illegally

The American View of Mercantilism (in Benjamin Franklin’s view…)

“We have old mother that peevish is grown;

She snubs us like children that scarce walk alone;

She forgets we’re grownup and have sense of our own”

Question: What is Benjamin Franklin message in this poem???

Yes, students…what was I saying

in writing this?

(IV) 1670S: Time of Crisis in the American colonies

a.There were conflict between and among the English settlers and

1.Indian tribes

2. The French

3. The Dutch

4. The Spanish

(V): TRIANGULAR SLAVE TRADE