Running Head: ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM

The Role of Colonies Within The British Mercantilist System

Submitted by

J J

El Centro College

HIST 1301, Section 53001, Spring 2019

ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM

Tables Of Contents

Abstract ………………………………………………………………………………………………………………………………. 1

Introduction …………………………………………………………………………………………………………………………. 2

How many colonies existed within the British mercantilist system? ………………………………………… 3

How was the mercantilist system developed?………………………………………………………………………4

What was the role of the colonies within the British mercantilist system? ……………………………….. 5

How did economic consideration affect decision making in England and North America? ……….. 6

What major changes occurred during the colonial era in the British mercantilist system? …………. 7

How did the politics in the colonies differ from that of Great Britain? …………………………………….. 9

Conclusion…………………………………………………………………………………………………………………………. 10

References …………………………………………………………………………………………………………………………. 12

ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 1

Abstract

The British developed the mercantilist system to determine the organization of economic

components, business, the state and workers. The idea behind the theory was that no nation

would survive without the colonies. There were four aims of mercantilism, they include

“encourage the growth of a merchant marine, provide protection for British manufacturing,

provide protection for British agriculture, and accumulate as much gold and silver as possible.

The colonies played a very important role within the British mercantilist system. They produced

raw material, agricultural goods and other commodities which the British consumers would have

had to import from their foreign competitors. These products were also exported to foreign

markets which improved the balance of trade.

A lot of changes occurred during the colonial era in the British mercantilist system including

population, religion trade and cultural changes. The colonists had more confidence in their

independence after the revolution. It signified a victory and sense of independence for members

of the colony. They were more confident and believed that the laws were sufficient in protecting

their rights and liberties. Also, the colonies believed that their allegiance with England was a

voluntary alliance. England, on their own part, were content with the results of the revolution.

They celebrated and returned to a buoyant economy. The aftermath of the revolution also led to

the passing of the Bill of right by the parliament. The most distinct factor between British and

American politics was in the role of the colonial governors. In most parts of the colonies, the

governor was appointed by the king or the proprietor. This made the governors more loyal to the

British leaders than the colonies.

ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 2

Introduction

The Mercantilist system was a predominant political system among European nations

between the sixteenth to eighteenth century. It governed the organization of the workers, state

and economic components. This political system essentially directed the interest of workers and

businesses to benefit the interests of the state. By the seventeenth century, the theory of

mercantilism was adjusted to include the idea of colonies.

The colonies became a very important part of the mercantilist system and historians believe

that the success of mercantilism could not have been achieved without them. European countries

including France, Spain, and England utilized mercantilism within their American colonies.

North America was subject to the mercantile system because they were an economic subsidiary

of Great Britain. North America produced raw material which Britain turned into finished goods

and sold to the rest of the world. Mercantilism was beneficial to the British and the colonies,

however the colonists were not treated as an equal alliance. The colonists were strictly forbidden

to undergo any type of production or trade outside of the mercantilist system. Great Britain on

the other hand, enjoyed economic buoyancy and an endless supply of natural resources.

In this essay, I will examine the role of the colonists in the British Mercantilist system and

the effect that economic considerations played on political decision making by answering the

following questions:

• How many colonies existed within the British mercantilist system?

• How was the mercantilist system developed?

• What was the role of the colonies within the British mercantilist system?

• How did economic consideration affect decision making in England and North America?

• What major changes occurred during the colonial era in the British mercantilist system?

• How did the politics in the colonies differ from that of Great Britain?

ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 3

How many colonies existed within the British mercantilist system?

Within the British mercantilist system, there were 13 colonies; New Hampshire,

Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware,

Maryland, Virginia, North Carolina, South Carolina and Georgia.

The civil war created considerable independence for the English Colonies in North

America. As a result, the king and the parliament could not manage them effectively. All the

colonies remained neutral except the royal colony of Virginia who supported the King (Jaycox,

2002). During the period, the largest English colonies were in the West Indies and the

commonwealth leaders could not find an effective way to control them (Jaycox, 2002). In 1651,

the parliament passed the first of the Navigation act because English trade was the main source

of economic growth (Jaycox, 2002). The Navigation Act of 1651 “required all trade goods

between England and her colonies, or among the colonies themselves, to be carried in English or

colonial ships, and all trade goods between the colonies and other nations to be carried in English

ships or the ships of the nation producing the merchandise” (Jaycox, 2002).

In 1642, after the Great Migration, there were 5 independent colonies left in New

England; Plymouth, Massachusetts Bay, Connecticut, New Haven, and Rhode Island. A year

after, commissioners from Massachusetts, Plymouth, Connecticut, and New Haven signed the

New England Confederation Compact in Boston (Jaycox, 2002). This compact was the first

attempt at unity by the English colonies. After the Civil war, Massachusetts bay colony became

very powerful and had New Hampshire and Maine under its control.

Similarly, to New England, the Chesapeake colonies took advantage of England’s

inattention to function independently. Life in the Chesapeake colonies was hard, and the

population grew mainly through immigration.

ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 4

How was the mercantilist system developed?

Mercantilism was a political system that determined the organization of economic

components, business, the state and workers (Christensen, 2010). It was a popular theory

between the sixteenth to eighteenth century in Europe. The idea behind the theory is that no

nation can survive without the colonies. There were four aims of mercantilism, they include

“encourage the growth of a merchant marine, provide protection for British manufacturing,

provide protection for British agriculture, and accumulate as much gold and silver as possible”

(Christensen, 2010).

Altogether, the parliament passed four types of mercantilist regulations between 1651 and

1733. The first regulation restricted the power of the Dutch in international trade. This law took

off with the enactment of the Navigation Act of 1651 that stipulated that all trade must be carried

out on English ships or colonial ships only (Goldfield, et al., 2014). This act further determined

that half of the crew members on trade ships had to be made up of Englishmen or colonists. After

the enactment of this Act, the maritime industry in England and the colonies became very

profitable.

The second regulation enacted was focused on specific colonial goods called enumerated

products. This rule stipulated that certain enumerated goods including tobacco, sugar, and indigo

could only be shipped to England and English colonies (Goldfield, et al., 2014).

The third and fourth regulation provided an upper hand for the England manufacturers

who produced for the colonial market. The law provided an advantage for the English

manufacturers in two major ways. Firstly, they subsidized raw materials used for production of

goods. This enables the English manufacturers to sell their goods at a cheaper price than the

other European manufacturers. Secondly, the regulation banned the large-scale production of

ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 5

wool, felt hats and iron. This also reduced the number of competitors for the English

manufacturers who produced for colonial markets (Goldfield, et al., 2014).

What was the role of the colonies within the British mercantilist system?

England was powerful as a result of its sophisticated market system, dynamic economy

and policy of mercantilism (Goldfield, Abbot, Anderson, Argersinger, Argersinger, & Barney,

2014). Mercantilism was a set of principles that determined the organization of business,

economic components, states and workers (Christensen, 2010). By the beginning of the 17th

century, the principles of mercantilism were modified to include the idea of colonies. This

development significantly influenced the economic growth of North America. England adopted

the mercantilism policy to achieve a favorable balance of trade with exports exceeding imports

within the empire (Goldfield, et al., 2014). The mercantilism policy was enacted to benefit the

British, however, the contribution of the colonies was required for its success.

The colonies played a very important role within the British mercantilist system. They

produced raw material, agricultural goods and other commodities which the British consumers

would have had to import from their foreign competitors. These products were also exported to

foreign markets which improved the balance of trade (Goldfield, et al., 2014). By the late 1760s,

sugar exports had risen to a value of approximately 50% more than the value of all other exports

from British American colonies (Goldfield, et al., 2014). The Chesapeake colonies primarily

produced tobacco, South Carolina primarily produced rice and Indigo and the Middle colonies

primarily produced wheat. The New England colony did not contribute much with regards to

crop production, but they benefited from transporting other colonies goods. Additionally, New

England helped to strengthen trade links to the West Indies. British and colonial traders also sold

ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 6

rum to Africans in exchange for slaves. The British controlled majority of the slave market but

New Englanders also profited from the market (Goldfield, et al., 2014).

The British relied on the Colonies as a relatively inexpensive way to exploit labor and

land. The colonies were beneficial because they made it possible for the British to expand their

population without losing any territory. Those in charge of the colonies turned a blind eye to this

model because it was profitable for them. They received bribes and ignored the activities within

the colonies until it was too late to do anything about it. The colonies continued to grow in

strength, and spending power. This growth was possible due to the Trade laws which governed

the import and exports of goods within the colonies. By the time, the revolution started, the

colonies had already gained a large amount of strength and independence.

How did economic consideration affect decision making in England and North America?

In 1660, James, the duke of York encouraged his brother King Charles to appoint

millitary officers as royal govenors. James also convinced King Charles to create the Lord of

Trades to oversee the colonies (Goldfield, et al., 2014). Thereafter, King James II created the

Dominion of New England out eight colonies in1685. Sir Edmund Andros was chosen to

overthrow Dominion of England. The Glorious revolution… Eventually Andros was overthrown

by Bostonians and sent back to England. The Glorious revolution affected the colonies. For

instance, after Andrew was overthrown, Jacob Leisler who ruled New York as a dictator

(Goldfield, et al., 2014). Another noticeable effect was the attempt to end catholic proprietorship

by protestants in Maryland.

In Massachusetts, there was a three-year period without governorship due to the fact that

Andros was overthrown. As a result, the colony was thrown into a state of confusion and

ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 7

economic deterioration. This tension led to a widespread accusation of witchcraft among

members of the colony. A lot of women were executed by hanging because they were accused of

being witches (Goldfield, et al., 2014). In addition to the tension from the economic change, the

colony was also experiencing tension from the appointment of a new minister.

Generally, the aftermath of the Glorious Revolution created dramatic changes within

England and the colony. The colonists had more confident in their independence after the

revolution. It signified a victory and sense of independence for members of the colony. They

were more confident and believed that the laws were sufficient in protecting their rights and

liberties. Also, the colonies believed that their allegiance with England was a voluntary alliance.

England, on their own part, were content with the results of the revolution. They celebrated and

returned to a buoyant economy. The aftermath of the revolution also led to the passing of the Bill

of right by the parliament.

What major changes occurred during the colonial era in the British mercantilist system?

A lot of changes occurred during the colonial era in the British mercantilist system

including population, religion trade and cultural changes. In terms of population, there were a

higher number of artisians within the colonies. They were mainly focused on trades involved in

the exportation of the finished products. During that time, it was common to see an artisians team

made up of his wife and children. Consequently, their workshop was commonly attched to their

houses or situated within the house. Another change with regards to population was the growing

gap between the rich and the poor. Goldfield, et al. (2014) states that “In 11687, the richest 10

percent of Boston’s residents owned 46% of the taxable property in the town”. The increased

demand for labor also led to a higher number of slaves within the colonies.

ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 8

Culturally, many of the colonists felt inferior to the Britain’s. The. Colonists imitated

British style and religion to make themselves fit in. By the eighteenth century, colonists had

become accustomed to a lavish lifestyle. The colonists owned more high-quality imported goods

than their parents and grandparents. Earlier colonists had maintained a more conservative

lifestyle spending most of their income on land and landed property (Goldfield, et al., 2014).

Asides from imported goods, the wealthy colonists also built large, fancy houses with designs

from Britain architectural books.

The colonists also imitated the British courtesy and mannerism. Some of them went as far

as importing courtesy books to learn the rules of politeness. In some boarding schools within the

colonies, girls were taught “polite education” (Goldfield, et al., 2014). The Eighteenth-century

colonists had more access to printed material than the earlier colonies. Due to this opportunity,

the level of literacy was higher than that of the earlier colonies. Interestingly, most members of

the colonists learnt how to read and write by learning how to read the Bible. The educated

colonists were particularly interested in the age of enlightenment (Goldfield, et al., 2014).

Thinkers of the age of enlightenment were more interested in human nature and natural laws.

They did not agree with the idea that God created the world and everything in it. The colonial

intellectuals were curious and excited about this new community and made efforts to be

associated with them.

Religion became very popularly in the colonies and there were a lot of churches erected

there. Goldfield, et al. (2014) noted that “church steeples dominated the skylines of colonial

cities. By the 1750s, Boston and New York each had eighteen churches and Philadelphia boasted

twenty”. Most of the colonies had congregational churches which were headed by Harvard and

Yale trained ministers. Consequently, members of the colonies supported the ministers by paying

ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 9

taxes. Unlike the churches in Britain, the churches in the colonies were spiritually diverse,

competitive and comparatively weak. Religion greatly influenced politics in the colonies, and it

was common for voters to vote for candidates who shared the same religious beliefs with them.

How did the politics in the colonies differ from that of Great Britain?

The colonies believed in the American political style of actual representation. Therefore,

they believed that elected officers should be responsible for the common interest of the masses.

They believed strongly in the voting system and that the people have the right to choose their

leaders. This belief was in direct conflict with the political beliefs of the British.

The British on the other hand, viewed politics as a social organization structured like a

family. Only male adults were allowed to own property during that era. Women and children had

to rely on their husbands or fathers for economic decisions. Similarly, only adult males were

allowed to occupy political positions within the British political system. The British viewed

women as insubordinate to men and therefore rendered them incapable of making important

decisions.

The most distinct factor between British and American politics was in the role of the

colonial governors. In most parts of the colonies, the governor was appointed by the king or the

proprietor. This made the governors more loyal to the British leaders than the colonies. Despite

this factor, majority of the colonists accepted the political conditions of the British. Ultimately,

they felt that their relationship with Britain was voluntary and beneficial to both parties.

By the eighteenth century, American politics had grown to be closer to the Britain model

of politics. During that era, the main difference between the colonists and Britain politics was the

lack of aristocracy. Asides that, they were fairly similar. For instance, “land ownership was a

ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 10

prerequisite for political participation, because it freed people from dependence on others and

gave them a stake in society”. This condition limited the number of eligible participators in

Britain but had a larger amount of participants in the colonies. This was because land ownership

was more widespread in the colonies than Britain. Goldfield, et al. (2014) explained this

disparity “a majority of white male farmers eventually owned the land they tilled and, in most

colonies, 50 to 75 percent of white men were eligible to vote”.

Conclusion

Through this research, I discovered that the colonies played a very significant role within

the British mercantilist system. The colonist were a convenient source of labor and land for the

British Empire. They produced goods which were exported to other European countries. The

British also took advantage of their lands for planting and harvesting crops and raw materials.

These efforts were primary to the success of the British mercantilist system.

I also discovered that the economic considerations had a positive influence om politics in

England and North America. Due to the huge economic growth, North Americans were more

confident in their position within the colonies. They also believed that their alliance with Britain

was voluntary and not forceful. North Americans were also confident with their alliance with

Britain because they felt like it was beneficial for both parties due to the economic growth. They

felt like their rights were protected under the laws of the British system. The British, on the other

hand were content with the economic outcomes of the mercantilist system. They benefited from

the huge economic growth and the buoyancy from the system. Also, the British Parliament

Passed the Bill of rights as an aftermath of the economic buoyancy.

ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 11

Overall, mercantilism transformed the military, developed skilled labor and increased the

economic power of European nations. Mercantilism also paved the way for capitalism which

involves private control of the market. However, its success was mainly due to a limited

knowledge of the laws of economics. It is uncertain if mercantilism would have thrived in a

balanced economy driven by profit and private market control. Hence, after the eighteenth

century, no nation in the modern world has attempted to adopt the policy of mercantilism.

ROLE OF COLONIES WITHIN THE BRITISH MERCANTILIST SYSTEM 12

References

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W. L. (2014). The American journey: a history of the United States (7th ed., Vol.

Combined). Boston: Pearson

Jaycox, F. (2002). The English colonies meet in the middle: 1642–1670. In Colonial Era. New

York: Facts on File. Retrieved April 16, 2019, from

online.infobase.com/Auth/Index?aid=15149&itemid=WE52&articleId=194479.

Maskiell, Michelle. (2017). “American Colonies and the British Empire.” Colonization and

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Accessed 16 Apr. 2019.

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New York: Facts on File. Retrieved April 16, 2019, from

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