The Colonial Era 1607-1776 Economic History of the U.S. – Econ 1740

The American colonial period was a time when poverty was the norm and wars among nations

were frequent. The early English settlers suffered greatly and had capital losses in the founding of the colonies. Europe dominated the New World for a long period of time. Great Britain was the nation that launched industrial revolution in the colonies, in the 18th century. Trade and commerce was very important in the New World, by the time the American Revolution came around, the material standards of living in the colonies was very high. The period of 1763 through 1776 the colonies grew apart from England, establishing distrust, confrontation and ultimately, rebellion. Growth, Welfare, and the American Economy ▼

Average size of players: ▼

173 pounds in 1902

188 pounds in 1929

238 pounds in 2008

5 biggest players average weight: ▼ 184 pounds in 1902

199 pounds in 1929

315 pounds in 2008

LIFE EXPECTANCY BY AGE OF PEOPLE BORN IN U.S.A.: ▼

  1901   1954   2000   2005  0   49   70   77   77.8  15   62   72   78   78.6  45   70   74   79   80.3  65   77   79   83   83.7  75   82   84   86   86.9  

This is table 1.1. LIFE EXPECTANCY BY AGE IN THE UNITED STATES.

LEFT the age they arrive in the Americas

1900-2009

 RIGHT for the year they are alive

1901: 49 yrs. Old

1954: 70 yrs. Old

2000: 77 yrs. Old FUN FACTS: ▼ Electricity was created between 1900 and 1905 and was in every American home by 1960.

Radio created around 1920 and in every home by 1960.

Refrigerator created around 1920 and in every home by 1960.

1903: first motor driven flight by the Wright Brothers.

1969: Neil Armstrong first man to walk on the moon.

1950: The United States of America is declared the most powerful nation in the world, also with the highest standards of living. QUOTE BY WINSTON CHURCHILL IN 1956: “The longer back you look, the farther into the future you can see.”

Founding the Colonies ▼ 1550-1750

 African American slaves replace Native Americans in the West Indies ▼  In the 1500's Portugal and Spain became involved in the African slave trade, they used slaves to work sugar plantations in the West Indies. By 1550 the number of African slaves increased dramatically, replacing the number of Indians in the West Indies.

St. Augustine established by the Spanish ▼  Pedro Menéndez de Aviles landed on the shore of what is now called Matanzas Bay and began the founding of the Presidio of San Agustin. This would be called St. Augustine, Florida

Roanoke Island settled by the English ▼  Sir Walter Raleigh Roanoke colony established the English settlement in 1585. Roanoke Island is one of the three oldest surviving English place-names in the U.S.

New Spain extends into what is now New Mexico ▼  The monarch of New Spain was also the king of Castile, his highest appointed minister who was actually resident in Mexico was from 1535 the viceroy, and who was a resident in Mexico City.

Horses from Spain first used by the Indians▼  The Indians got their first horses from the Spanish. A lot of the horses were wild and got away; the Indian didn’t do much with the horses. It wasn’t till much later on when they started too ride them.

Jamestown, Quebec, Santé Fe- Settled by the English, French, Spanish ▼  Jamestown was America’s first permanent colony, before the pilgrims landed at Plymouth 13 years ago. The government, language and beliefs of these early Virginians are all part of the United States’ heritage today.

1600 --

1607-1609

1565 --

1585 --

1598 --

1500 --

 

Slavery in Virginia allowed by law ▼  Indentured servants, who agreed to work for a stated number of years in return for their passage to the New World, were a convenient source of labor for the American colonies. White servants, after working out their period of indenture, often rose to respected positions in the community. However the blacks were considered servants for life.

Mississippi valley claimed by France ▼  The lower Mississippi valley remained strong even after the cession of Louisiana to Spain, the retrocession to France in the 1800’s and the Louisiana purchase in 1803 effectively making the state of Louisiana unique for its colonial past.

Over 1 million people living in the 13 colonies, slavery existed in every colony. ▼ Slavery in the U.S existed in the 18th and 19th century, slavery had been practiced in British North America from early colonial days, and was recognized in the thirteen colonies at the time of the declaration of independence in 1776.

Colonial Economic Activities▼

A mojirty of wheat and flour was permitted exports

Virginia began exporting tobacco- ▼ Cash crops started when Virginia exported tobacco to England

1614-1775

1614 --

1661 --

1682 --

1750 --

17th Century

 

30-ton sloop was completed in Boston ▼ Proof of the importance of shipbuilding.

Tobacco became major export; dominate export in Maryland▼ -English was relief to have Colonies as a source for the supply of tobacco instead of having to trade with Spanish.

Shoemakers incorporated as a guild ▼ Artisan are people who specialized in what they do. Artisans do the job all by themselves, skill is passed down.

Navigation Acts ▼ Restricted Colonial exports and trade to only England.

Rice production in Virginia, and South Carolina▼ Rice became the second biggest agricultural good

▼ New England exceeded 2,000 exclusive fishing boats

▼ Largest mills grind 100 bushels of grains per day

1631 --

1634 --

1648 --

1651 --

1695 --

1700 --

 

▼ Rice was established crop areas around Charleston

Slave’s purpose was for farm work. ▼ Plantation owners did not need to pay the slaves, only the people who looked over the slaves in the plantations

.

Tailors and cordwainers artisans

New York shipbuilding industry regrew.▼ Rapidly recovered from Navigation Act’s blow

Demand and prices for fur rose

Indigo introduced by Eliza Lucas▼ Rice and indigo became ideal because of conditions where rice could not be grown indigo could didn’t need special assistance to made

. Mills were water powered and used along middle and north Atlantic 45% of population was black▼ Slavery was the main source of labor One-third of ships in British Merchant Marine were American manufactured Whalers ranged more than 300 vessels sailed from Massachusetts’s port. 90% of Americans earned a living through  farming

The Economic Relations of the Colonies▼ The economic relations of the colonies with England and other overseas areas are a central part of the story of economic progress in the colonies

1500-1800

1718 --

1720 --

1740 --

1743 --

1770 --

1775 --

1775 --

18th Century

Mid-18th Century

End of18th Century

 The Early Navigation Act ▼  Directed primarily at prohibiting the shipping of American products in Dutch vessels.

1. All Trade of the colonies was to be carried in vessel that was English build and owned, commanded by English captain, and manned by a crew which majority were English.

2. All foreign merchants were excluded from dealing directly in the commerce of the English colonies.

3. Certain commodities produced in the colonies could be exported only to England

Colonial Commerce▼ . The colonies dominated the great volume of coastwise commerce and in terms of money value of products exchanged; coastal commerce was less then overseas trade w/Britain and WestIndies. In the colonial trades between town and country, the town merchant to extend credit to farmers were made for the purposes of obtaining equipment, tools, and supply for day-to-day existence.

English Mercantilism and the Colonies▼ The world was influenced by the mercantile economic system:

Ø The mercantilists was to achieve power and wealth for the state Ø Generate an inflow of gold or silver through trade Ø The difference between import/exports was paid w/gold or silver and was called specie Ø They believed that the power will be effective by strict enforcement or legislation regulating economic life

Money and Trade▼    

Commodity Money▼ The earliest forms of money was wampum, black and white polished beads made from clam shells. In Maryland and Virginia, tobacco was the principal medium of exchange. Other colonies used "country pay": furs, cows, corn, wheat, beans, pork, fish, liquor, etc. Used commodity money bring stored problems and quality problems.

Coins, specie, and paper money▼ : The gold and silver was the more important overseas accept forms of pay. Massachusetts was the first colony to mint coint in 1652, and in 1690 was the first to issue paper money. Bills of Credit were also used.

Exports, Imports, and Markets ▼ Great Britain was the main overseas region to receive colonial expo The colonies export  to empire" tobacco, rice, indigo and import: sugar, molasses an rum. England receive 56% from colonies and exports 80% of total supply.

New England Middle Colonies

Upper South Lower South

Imp. Exp. Imp. Exp. Imp. Exp. Imp. Exp. U.Kingdon 68 18 76 23 89 83 86 72 South.Eur. 2 14 3 33 1 9 1 9 West.Indies 32 34 21 44 10 8 13 19 Africa 0 4 0 0 0 0 0 0

Information in %

Economic Progress and Wealth ▼ 1500-1775

 

The  Dutch  introduced  the  flyboat▼  .  It  became  obvious  that  the  flyboat  could  be  used  favorably  in  certain  bulk  trades  where  the  danger  of  piracy  was  low.  

Tobacco  output  per  worker  doubled▼    The  workers  were  starting  to  be  familiar  with  tobacco,  and  they  found  faster,  easier  ways  to  grow  tobacco.  100 years before the Revolution - the real costs of shipping were almost halved.

Northward  diffusion  of  the  horse  ▼  The  horse  imposed  dramatic  changes  on  the  daily  lives  of  the  North  American  Indians.  It  changed  their  diets,  as  they  were  able  to  go  further  and  be  faster  at  hunting.  It  was  used  as  a  form  of  personal  property.  

The  real  costs  of  shipping  were  almost  halved▼  .  Shipping  costs  were  improving.

 Productivity  gains  countervailed  and  freight  costs  were  cut  in  half  ▼  They  were  building  larger  ships  that  could  carry  larger  loads  and  required  less  workers  to  look  after  their  assigned  loads.

Insurance  rates  were  halved,  and  round-­‐trip  voyage  declined▼    This  was  due  to  piracy  beginning  to  decline.  Also,  ship  speed  improved  and  ships  did  not  spend  too  much  time  in  ports.  

Average  output  per  farm  increased  by  7%  ▼  This  helped  increase  the  productivity  rate.    

   

Combined  output  per  unit  of  land,  labor,  and  capital  advanced  at  a  rate  of  .1  to  .2%  ▼    this  meant  that  the  productivity  rate  was  starting  to  rise  at  a  slow  rate,  but  by  the  end  of  the  18th  century,  it  was  really  noticeable.  

1630-1670

1675-1775

1601-1740

1595 --

100 yrs before Revolution

1700-1775

1st and 3rd Quarter of 18th Century

1st Half of 18th Century

 

The  productivity  rate  rose  8%  ▼  -­‐  This  was  a  milestone  for  Colonial  America.  Shipping  improved  through  decreasing  time  in  ports  and  building  larger  ships.

 Carolina’s  Assembly  helps  the  fight  against  Piracy  ▼  Carolina’s  Assembly  appropriated  funds  to  support  private  vessels  in  the  hope  of  driving  the  pirates  from  their  seas.    

 Piracy  had  been  eliminated  from  the  western  Atlantic.  ▼  This  meant  that  insurance  rates  were  dropping  and  the  space  that  was  once  used  for  armor  against  pirates  could  be  used  for  more  cargo.  Growing wealth concentration did not occur among free whites in the 13 colonies as a whole.  

Armed Ships ▼

Vessels weighing more than 100 tons were always armed, and even small vessels usually carried some guns near Jamaica.

The  Dutch  helped  the  Colonial  America  improve  their  productivity  rate.  ▼  Dutch  shipping  displayed  many  of  the  essential  characteristics  of  design,  manning,  and  other  input  requirements  that  were  found  on  the  most  advanced  vessels  in  the  Western  Atlantic.  

Colonial  staples  increased  in  requirement  ▼  -­‐  colonial  staples  such  as  pitch,  tar,  lumber,  rice  and  other  space-­‐consuming  exports  were  still  commanding  more  than  double  their  domestic  price  in  normal  English  and  European  markets.  

Three Crisis Revolt▼ - For  financial,  administrative,  and  political  reasons,  the  Crown  and  Parliament  in  1763  launched  a  “new  order”▼  .  

1763 --

1719--

1740--

1750--

1675-1775

1770--

2nd Half of 18th Century

 

 

On  October  14,  1774,  the  Continental  Congress  provided  a  list  of  grievances:▼    1)  Taxes  have  been  imposed  upon  the  colonies  by  the  “British”  Parliament.  2)  Parliament  had  claimed  the  right  to  legislate  for  the  colonies.  3)  Commissioners  were  set  up  in  the  colonies  to  collect  taxes.  4)  Admiralty  court  jurisdictions  had  been  extended  into  the  interior.  5)  Judges’  tenures  had  been  put  at  the  pleasure  of  the  Crown.  6)  A  standing  army  had  been  imposed  upon  the  colonies.  7)  Persons  could  be  transported  out  of  the  colonies  for  trials.  8)  The  port  of  Boston  had  been  closed.  9)  Martial  law  had  been  imposed  upon  Boston.  10)  The  Quebec  Act  had  confiscated  the  colonists’  western  lands▼  .