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Mercantilism, Independence, and You!
What is Mercantilism?!
SALUTARY NEGLECT Undocumented Meant to keep colonies obedient 1607-1763 Allowed enforcement of trade laws to be lenient Robert Walpole
American Revolution Connection??
NAVIGATION ACTS/ TRADE ACTS
There was a definite lack of hard currency in the colonies.which added to their outrage at taxes imposed by the British. The first few paragraphs explain the colonists problem with real money
The colonies had become accostomed to either being able to govern themselves or when the law was involved, bribing British officers. The changes made after the Seven Years' War shook that up.
Seven Years' War
Trade
THE NAVIGATION ACTS(1) Raw materials could only be shipped to/from other English colonies to/from England. In other words, raw materials from New England colonies could be shipped to England or to the Middle or Southern colonies. (2) Finished products could only be shipped from England to the colonies. It was illegal to send finished products made in the Middle colonies to other colonies.(3) Finished products bought in countries other than England had to be shipped to England first before being shipped to the colonies. (4) All products would be shipped in English or Colonial ships.
An unfavorable balance of trade drained gold from the colonies. Due to this and the fact that, unlike some of Spain's colonies in Latin America, little gold was found during the Colonna period in the thirteen colonies, gold was in short supply. Therefore, in Virginia tobacco was drafted to serve as a medium of exchange (money). Paper money was issued in some of the colonies and produced inflation (a rise in the price level). Most of the specie circulating in the thirteen colonies was coined in Latin America and was obtained by trading with this region.England's government opposed the colonies issuing paper money and manufacturing of products in the colonies that were also produced in England. Besides not desiring colonial manufactured goods competing with the Mother Country's, in order to maximize its wealth, England wanted to specialize in producing for export higher-value-added manufactured goods to the colonies and importing lower-value-added raw materials from the colonies. (Value-added refers to the greater value of output of a productive process than (hopefully) the inputs necessary to its production. )
