Mercantilism and the American

Revolution

“For cutting off our trade with all parts of the world . . .

For imposing taxes on us without our

consent . . .” Jenny Wahl

Carleton College Economics Department

2

William Blake: Europe Supported by Africa and America (1796)

3

Requirements of Mercantilism

• Sufficient wealth in colonies

• Trade imbalance → Specie flow from colony to home country

• Regulation

4

Treaty of Tordesillas (1494)

5

European Territorial Claims in North America c. 1700

6

Non-Indigenous Colonial Population, 1610-1780

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

1610 1620 1630 1640 1650 1660 1670 1680 1690 1700 1710 1720 1730 1740 1750 1760 1770 1780

white population

total non-indigenous population

black population

7

Population of 5 Major Cities, 1690-1790

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1690 1700 1710 1720 1730 1742 1760 1775 1790

Year

Pop

ulat

ion

Philadelphia

New York

Boston

Charleston

Newport

8

Percent Immigrants in White Population, 1640-1770

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

1640 1650 1660 1670 1680 1690 1700 1710 1720 1730 1740 1750 1760 1770

decade

% im

mig

rant

s in

whi

te p

opul

atio

n

9

Percent Black in Population, 1650-1780

0

10

20

30

40

50

60

70

80

90

100

1650 1660 1670 1680 1690 1700 1710 1720 1730 1740 1750 1760 1770 1780

year

per

cen

tag

e b

lack

s in

to

tal p

op

ula

tio

n

Northern colonies

Southern colonies

British Caribbean

French Caribbean

10

Colonial Trade Flows

56%

80%

18%2%

0.1%

1%26%

18%Africa

W. Indies

S. Europe

U.K.

Colonies

11

Top 10 Commodity Exports from the 13 Colonies (average annual values,

000s, 1768-1772)₤Tobacco 766

Bread and flour 410

Rice 312

Fish 154

Wheat 115

Indigo 113

Corn 83

Pine boards 70

Staves and headings 65

Horses 60

12

Estimated Wealth per Free Person by Region, 1774 ($

2010)

TOTAL, 1774

New England, 1774

Middle Colonies, 1774

South, 1774

Great Britain, 1774

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1774

wea

lth

per

fre

e p

erso

n in

177

4 ($

201

0)

13

Distribution of Wealth by Region, 1774

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Land Slaves/servants Livestock Personal

New England

Middle Colonies

South

14

GDP per free person: 1650, 1720, 1774 ($ 2010)

0

500

1000

1500

2000

2500

1650 1720 1774

GD

P p

er

free p

ers

on

($ 2

010)

15

Origin of “$”?

16

17

Colonial Exports to and Imports from Great Britain,

1697-1775

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

year

cons

tant

pou

nds

ster

ling

exports

imports

18

Three Phases of British Legislation

• 1764-66– Sugar Act – Currency Restraining Act – Stamp Act – Quartering Act– Declaratory Act

• 1767-70– Townshend Acts Boston Massacre

• 1773-4– Tea Act Boston Tea Party– Intolerable Acts– Quebec Act

19

Imports of Tea from England, 1761-1775

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1761 1762 1763 1764 1765 1766 1767 1768 1769 1770 1771 1772 1773 1774 1775

po

un

ds

20

Imperial Taxes Collected, 1765-1774

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

1765 1766 1767 1768 1769 1770 1771 1772 1773 1774

po

un

ds

ster

ling

Sugar Act (1764, 1766)

Stamp Act (1765)

Townshend Act (1767)

Plantation Duty Act (1673)

Total

21

Patrick Henry: “The Parson’s Cause”

22