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Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

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Page 1: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this
Page 2: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this
Page 3: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Mercantilism• Economic theory that a nations wealth depended

upon its reserve of gold and silver and also a favorable balance of trade.

• Thus, in this context, colonies were expected to furnish products needed in the mother country (tobacco, sugar, ships masts etc) while only trading exclusively with the mother country and her other colonies.

• Required to import from Mother Country and have no dreams of economic self-sufficiency or self-government.

Page 4: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Mercantilism

• Navigation Act• Goods must be shipped trough England and a

duty put on them• Enumerated goods such as tobacco could only

be sold to England.• Money shortages in colonies due to unfavorable

balance of trade – printed paper money that depreciated. Parliament banned the printing of money in the colonies

Page 5: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Mercantilism

• Negatives:– Burdened the colonists with annoying liabilities– Stifled economic initiative and forced dependency on

English agents and creditors.– Most importantly, the colonists felt used and in a state

of constant economic adolescence.

Positives:

- Ship builders and suppliers benefitted

- Monopoly on tobacco in England

- Protection from the strongest Navy and military

Page 6: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Mercantilism

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 they judge most advantageous to themselves, is a manifest violation of the most sacred rights of mankind.

-Adam Smith (1776)

Page 7: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

James Otis

• A man’s house is his castle, and whilst he is quiet he is as well guarded as prince in his castle. This writ, if it should be declared legal, would totally annihilate these privilege. Custom house officers may enter our houses when they please; we are commanded to permit their entry. Their menial servants may enter, may break locks, bars, and everything in their way; and whether they break through malice or revenge, no man, no court can inquire. Bare suspicion without oath is sufficient.

Page 8: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

George Grenville’s Program, George Grenville’s Program, 1763-17651763-1765

1.1. Sugar Act - 1764 Sugar Act - 17642.2. Currency Act – 1764Currency Act – 17643.3. Quartering Act – 1765Quartering Act – 17654.4. Stamp Act – 1765Stamp Act – 1765

Greenville had to eliminate debt from the war Greenville had to eliminate debt from the war (140 million pounds). First, strictly enforced (140 million pounds). First, strictly enforced Navigation Act in 1763. Then decided to Navigation Act in 1763. Then decided to raise tax revenue from the colonies, raise tax revenue from the colonies, starting with the Sugar Actstarting with the Sugar Act

Page 9: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Stamp Act Protest

• Stamp Act Congress of 1765– 27 delegates from 9 colonies meet to draw up

a statement of their rights and grievances and to convince the King and Parliament to repeal stamp act.

Even though the statement was mostly ignored in England and not well-known in America, the Stamp Act Congress was one more step towards more intercolonial unity.

Page 10: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Stamp Act Protest

• Nonimportation Protests– Against British goods– A promising stride towards unity because

average American colonists could participate– Many signed petitions swearing to uphold the

boycott– Sons of Liberty and Daughters of Liberty

• Liberty, Property, and No Stamps• They would tar and feather violators of the

boycott and ransack British agent’s homes and hang effigies of stamp agents

Page 11: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Tar and Feathering

Page 12: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Stamp Act Protest

• England hard hit by boycott (1/4 of all exports go to the colonies and ½ of all shipping was devoted to American trade.

• English make appeals to have the Stamp Act repealed due to disruption to commerce and trade

• 1766, Stamp Act was repealed by Parliament

Page 13: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Declaratory Act

• As soon as Stamp Act repealed, Parliament passed Declaratory Act– Stated parliaments right to rule over the

colonies in all cases and arenas.– Basically, it claimed absolute sovereignty over

the North American Colonies– However, Colonists had already made it clear

they wanted a measure of sovereignty of their own

Page 14: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Townshend Acts

• Charles (Champagne Charlie) Townshend• 1767, passes the Townshend Acts

– Light duty on imported goods such as glass, white lead (don’t ask, I do not know), paper, paint, and tea.

– Makes distinction between internal and external taxes and this is an indirect tax paid at colonial ports

– Revenues earmarked to pay Royal Judges and Royal Governors

Page 15: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Townshend Acts

• The tax on tea was the most hated due to the fact that an estimated 1 million people drank at least two cups per day.

• However, in Boston, a lot of tea was simply smuggled so the Townshend Acts were largely ignored and did not cause the same unrest as the Stamp Act

• So, British land two regiments of soldiers in Boston

Page 16: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

The Boston Massacre The Boston Massacre ((March 5,1770March 5,1770))

Page 17: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Boston Massacre

What is the difference between the two depictions of the Boston Massacre?

Page 18: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

The Gaspee The Gaspee IncidentIncident (1772)(1772)

Providence, RI coastProvidence, RI coast

Page 19: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

King George IIIand Lord North

• George III was 32 in 1770. Good man in private life, but an ineffective ruler. Surrounded himself with Yes men like Lord North

Lord North, what do you think of my fancy outfit?

Well your majesty, YES, I think you look ravishing!!!!!!!!!!

Page 20: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Townshend Acts Repealed

• Lord North, under pressure from British Manufacturers who were losing revenue due to the nonimportation agreements, convinced Parliament to appeal the Townshend Acts.

• However, he kept the three pence tax on tea to assert Parliament’s authority to tax.

Page 21: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

CommitteeCommittees s of of

CorrespondCorrespondenceence

PurposePurpose warn neighboring colonies warn neighboring colonies about incidents with Br. about incidents with Br.

broaden the resistance broaden the resistance movement. movement.

First organized by Sam Adams, cousin to John Adams. A great propagandist, he trained his mob to resist British policy. The committees started in Boston, then throughout Massachusetts, then spread to other colonies. Main objective was to exchange letters and keep alive opposition to the British

Page 22: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Tea Act Tea Act (1773)(1773)8 British East India Co.:British East India Co.:

Monopoly on Br. tea Monopoly on Br. tea imports.imports.

Many members of Many members of Parl. held shares.Parl. held shares.

Permitted the Co. to Permitted the Co. to sell tea directly to sell tea directly to cols. without col. cols. without col. middlemen middlemen (cheaper tea!)(cheaper tea!)

8 North expected the North expected the cols. to eagerly choose cols. to eagerly choose the cheaper tea.the cheaper tea.

Page 23: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Colonists Reaction to Tea Act

• Even though the tea was cheaper- the colonists were still angry at the three pence tax.

• Saw the move as a way to make the colonists accept the tax with cheaper tea.

Page 24: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Boston Tea Party Boston Tea Party (Dec, 16 1773)(Dec, 16 1773)

Page 25: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

The Coercive or The Coercive or IntolerableIntolerableActs Acts (1774)(1774)

Lord NorthLord North

1.1.Port Bill-Port Bill-

2.2. Government Government ActAct

4.4. Administration Administration ofof Justice Act Justice Act

3.3. New Quartering New Quartering Act Act

Page 26: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

The Quebec Act The Quebec Act (1774)(1774)-Act designed to administer the

60,000 French who lived in Canada.

-Gave French a guarantee of their Catholic religion and also permitted them to retain old customs and traditions such as not having a representative assembly and no trial by jury

-Area extended into the Ohio river Valley

-Horrible to colonists, because it had such far reaching implications: Ohio river valley for Catholics and Parliament could suppress representative government and trial by jury

Page 27: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

First Continental First Continental Congress Congress (1774)(1774)

55 delegates from 12 55 delegates from 12 colonies (Georgia did not colonies (Georgia did not attend)attend)AgendaAgenda How How to respond to to respond to the Coercive the Coercive Acts & the Acts & the Quebec Act?Quebec Act?1 vote per colony 1 vote per colony represented.represented.

Page 28: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

First Continental Congress

• The Association was formed. Complete boycott of British goods.

• April 1775- Lexington and Concord – Small British force of Redcoats were ordered

to seize stores of colonial gunpowder and capture Sam Adams and John Hancock. At Lexington, 8 Minutemen were killed and several wounded. At Concord, the colonial militia forced the Redcoats to retreat

Page 29: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

The British Are The British Are Coming Coming . . .. . .

Paul ReverePaul Revere & & William DawesWilliam Dawes make make their midnight ride to warn the their midnight ride to warn the

MinutemenMinutemen of approaching British of approaching British soldiers.soldiers.

Page 30: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

The Shot Heard The Shot Heard ’’Round the WorldRound the World!!

LexingtonLexington & & ConcordConcord – April – April 18,177518,1775

Page 31: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

The Second The Second Continental Continental

CongressCongress(1775)(1775)

Olive Branch Olive Branch PetitionPetition

Page 32: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Imperial Strengths

• Population odds in their favor (2.5 million colonists to 7.5 million British)

• Greater Monetary Wealth and Naval power

• British had a professional army of 50,000 soldiers, employed around 30,000 Hessians, attracted some Native Americans to fight on their side, and also had 30,000 Loyalists

Page 33: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Imperial Weaknesses

• Ireland was on the brink of revolt and troops were sent to watch over it

• France was eager to stab Britain in the back due to recent defeat in Seven Years’ War

• British leadership was inept compared to the brilliance of William Pitt (King George III and Lord North

• English Whigs openly triumphed American victories (at least at the beginning) and this encouraged Americans

• Fighting in North America was difficult: Generals were second rate, soldiers were treated poorly by officers, and provisions were scarce, rancid, and wormy.

• Distance made it difficult. England was 3,000 miles away. • Difficult to defeat colonists due to Geography: The American

Colonies were huge with no large city that served as a node.

Page 34: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

American Advantages

• Strong leadership– Washington, Franklin, and Lafayette

• Americans were generally fighting a defensive war with the odds in their favor

• American agriculture kept the army well fed• Americans were fighting for a just and moral

cause that gave them greater morale and motivation

• Understood and new the terrain and environment much better

Page 35: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

American Negatives• Poorly organized and loosely united• Jealously and suspicions between colonies caused

conflict and many resented the Continental Congress for trying to assert its authority

• Economic issues, in particular, currency issues. (No metal currency, so C.C printed money that quickly depreciated, and later individual states printed their own)

• The subsequent inflation forced many soldiers to desert the campaign and return home to work

• Military supplies were scarce• Other shortages in manufacturing supplies and clothing

and shoes. • Generally, the American soldiers were a ragtag group

that was poorly equipped to fight the trained professional Redcoats.

Page 36: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this
Page 37: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Thomas PaineThomas Paine: : Common SenseCommon Sense

Page 38: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Declaration of Declaration of Independence Independence

(1776)(1776)

Page 39: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Declaration of Declaration of IndependenceIndependence

Page 40: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

Independence HallIndependence Hall

Page 41: Mercantilism Economic theory that a nations wealth depended upon its reserve of gold and silver and also a favorable balance of trade. Thus, in this

New New National National SymbolsSymbols