3.1 England and its Colonies -Mercantilism

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3.1 England and its Colonies -Mercantilism

• OBJECTIVE
• Learn about Mercantilism, the Navigation Acts and
  the Glorious Revolution
• Understand how the relationship between England
  and her colonies began to change before the
  revolution.

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COMPARE/CONTRAST
NORTHERN MIDDLE SOUTHERN

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COMPARE/CONTRAST
NORTHERN MIDDLE SOUTHERN
Puritan Religious Freedom Farm Industry Small Farms Slow, but Growing Conflict w/Indians Good Climate Quaker Rel. Toleration Farm Industry Farms Democratic Tolerant Good Rel.w/Indian Catholic/Misc. Economic Cash Crops Plantations Slavery Buffer State Punitive Wars Malarial
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MERCANTILISM

• Wealth Power
• More Wealth ? More Power
• Export Revenue gt Import Expenses
• Colonies Provide
• Supplies of Raw Materials
• A Market for Finished Goods

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KEY IDEA

• America existed to serve the interests of England
• America was a MEANS to English ENDS

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PROBLEM Keeping the colonies under Englands
economic and political control

• Englands Solutions
• 1651-
• 1686-
• After 1688 -

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PROBLEM Keeping the colonies under Englands
economic and political control

• Englands Solutions
• 1651- Parliament passes Navigation Acts to
  regulate
• colonial trade (result?)
• 2. 1684-Charles II revokes Mass. Charter (Royal
  colony now)
• 3. 1686- James II merged northern colonies
  (Dominion NE)
• disbanded local assemblies, levied taxes
• 1688 - Glorious Revolution of William and Mary
• King appointed Governor but restores charter
  (Toleration)
• Salutary Neglect begins

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Raw Materials
England
Colonies
Currency
Finished Products
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Mercantilist Controls on Trade

• Navigation Laws, 1650 only English ships
  may trade with the colonies
• Trade with Europe must first pass through England
• Certain products could only be made in England
• Currency was restricted produced primarily in
  England
• Royal Veto used against colonial assemblies
• Royal Governor, ESPECIALLY Sir Edmund Andros

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PROS CONS of Mercantilism

• CONS
• Stifled American economic initiative
• Southern Colonies favored over Northern (sugar,
  tobacco)
• Cash Crop prices set by English Merchants
• Price Gouging on finished goods
• Colonies were dependent on England
• Not equal partners

• PROS
• England paid bounties on shipping industry
  government subsidies
• American had a monopoly on Tobacco
• Guaranteed Market for raw materials
• America was not taxed to support the English Army
  or Navy
• Americans generally. better off than English

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http//members.tripod.com/lylesj/trade/tritrade.ht
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Salutary Neglect

• Stricter regulations on trade not enforced
• AS LONG AS trade imbalance continued
• Colonies controlled by Royal Governors
• BUT local assemblies used power of the purse

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3 EFFECT Trade imbalance in Colonies
CAUSE Increased Competition in Europe
2 EFFECT Mercantilism
Dominion of New England
Glorious Revolution
4 EFFECT Colonial Smuggling Royal Crackdown
5 EFFECT Salutary Neglect
6 EFFECT Colonial Self-Government
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INTENTION/ CAUSE ECONOMIC CONTROL OF COLONIES
UNINTENDED EFFECT UNIFY THE COLONIES