Mercantilism In The 1800s
The markets in every colony had special and valuable goods to trade with the other colonies who want to buy their product from them. “This trade proved significant, accounting for 18 percent of Carolina’s total export earnings before 1749 and remaining at roughly 10 percent until 1775.(facts on file).” In the early years colonist went in the transatlantic trade, Merchants and planters in Virginia exported tobacco and New englanders shipped grain and lumber in exchange for the colonist imported goods. By the early 18th century the value imports increased and more colonist started to trade into the trend.
Suddenly, everyday items were in unbelievable demand, which set the supply that industries needed to meet at a comparably high value. From an economic standpoint, a blaring issue would be that a rapid increase in both demand and supply would drive down the price of a good, which would decrease the amount of money fueling the economy. Beyond this, such an unexpected change in demand meant that England needed to seek more goods, which, in turn, called for new colonies and trade opportunities. By around 1755, 24% of England’s GDP was dependent on importing and exporting goods to fuel the growing industrial economy, showing a palpable change from 1655’s 19% (Daudin, O’Rourke 25). As dependence on trade increased, other nations followed suit, leading to conflicts with economic consequences that would influence the American colonies directly.
Nevertheless England wanted implemented economic policy known as mercantilism, which focuses on profit of trade.7 England began to pass legislation to ensure that it reaped more trade benefits from its colonial possessions.7 England passed acts that would benefit from the products being created in the new world. One significant act was the Stamp Act 1765, which imposed on all American colonists and required them to pay a tax on every piece of printed paper they used. This stamp act created animosity between the colonies and England because the colonies believed this was just another way to get money out of the colonies without the approval of the colonial legislatures.8 The colonies soon wanted to be free from the reign of the British rule
The English Colonies alongside the Atlantic Coast in the 1600’s - 1700’s began with the failed attempt to establish the Roanoke Colony in Virginia, which was later surpassed by the Virginia Company, a joint stock company, that established the colony of Jamestown in the Chesapeake Bay area. Following the success of the establishment of Jamestown was a series of devastating events known as the “starving period”, which caused scare food sources, conflicts with natives, and starvation that characterized the lives of the early settlers. However, once the government had a stable foundation of laws, and once people started to settle into the colonies, the menacing conditions transpired into renowned opportunities. As these opportunities arose, so did the differences amongst the colonies and the reasons for leaving England. As people continued to settle into these colonies, England found ways to become highly profitable through a system called mercantilism, which provided it with sustainable wealth.
The British men gathered full control of the trading center present in the Americas, and created the Navigation Acts to help aid them in their tactics to take control over all trade within the Americas. The Navigation Acts were passed under a mercantilist system, and was used to regulate trade in a way that only benefitted the British economy. These acts restricted trade between England and its colonies to English or colonial ships, required certain colonial goods to pass through England before export, provided subsidies for the production of certain raw goods in the colonies, and banned colonial competition in large-scale manufacturing. This lowered the competition in the trading world for the British and caused the British to have a major surge in power, that greatly attributed to the growth of their rising empire. The British’s ambitious motives in the trading world help portray a way that the British took control of an important piece in the economy of all of the other nations present in the colonies in the time period, and shows another leading factor in the growth of the British empire.
England hummed with social and economic change after the 17th century. The joint-stock company flourished with new investors and colonies began to form under England. Peace and unity within England, control of the Atlantic due to the defeat of the Spanish Armada, and the willingness of citizens to leave provided England with many reasons to colonize. The economic theory of mercantilism arose and England began to send settlers over to the new world to colonize in efforts to increase England’s wealth and power. High levels of poverty and a surplus population led citizens to seek social mobility and economic prosperity in the new world.
The first mercantilist regulation, which was the Navigation Act of 1651, was aimed towards the Dutch. This act intended to eliminate all competition with the Dutch in overseas trade, and this was to be done easily through using the English people, their tools and property. This act prohibited imports and trade outside of England that was not made in English ships, commanded by English captains and with a crew that formed at least half of the people to be English sailors. Surely, New England greatly benefited from this, as the rate of economic growth kept increasing. New England’s shipping industry became the most successful and productive sector.
Trade- The British wanted to make as much money as possible out of the 13 American colonies so they began to adopt the policy of mercantilism, which is where they began creating America into a place with its main economy being trade. This was devious of Britain because they were creating a country that created materials, which were then shipped to Britain to be turned into usable products which were much more profitable, meaning more money into British pockets. The British also reigned over trade by creating the Triangular Trade routes, which was a shipping route designed by Britain to flow from each of its main colonies back to them.
Africa gave the West Indies gold and slaves. Between the colonies and the West Indies, they traded meat, lumber, fish, and flour, and the West Indies
The transatlantic slave trade or triangular trade was a trade system involving Britain, Europe, Africa, America and the West Indies. Goods such as firearms and alcohol were taken from Britain to Africa in exchange for slaves. The slaves were then taken to America and the West Indies where they were exchanged for rum and sugar for the voyage back to Britain. It can be argued that the key reason for the development of the British economy in the 18th century was its role in the slave trade, although there were many other factors involved such as the industrial revolution and the British Empire.
Mercantilism is a way to increase the country’s treasury by creating a favorable amount of trade. Mercantilism had the government taxing all the trade they traded, they gained more power from wealth and also gained a favorable balance of trade, they had many raw materials to provide from in America, and overall the colony provided a market of goods for trading. Roanoke number
‘New money’ would allow upward social mobility. Also, there was lots of land that could be acquired, and that allowed for economic growth. Mercantilism was a way that the British kept economic control of the colonies. This way, the colonies would make money for Britain. The navigation acts and the sugar act were both laws enacted to restrict trade in the colonies.
The main materials Europeans sought after were silver and gold because it symbolized a country’s superiority. A “favorable balance of trade” promoted a better work ethic to supply goods which benefitted the economy. The Navigation Acts were formed due to England’s competition with the Dutch for trade. So, these acts were created to ensure that only English ships could exchange goods with the colonies and the items could not be brought out of the domain. Mercantilism caused the colonies to be in debt to England because the goods that they exported were not as valuable as the goods imported from England.
• Spent a lot of time trading goods and exported agricultural/food related products to other colonies. Although it was difficult to farm here, they managed to grow things like pumpkins, squash, and beans for trade. • Molasses and Syrup was also a common good up for trade. It was usually made into rum and whisky. •
Mercantilism is a principle of trade during the 1500s to the 1800s. It was designed, through a favorable balance of trade, to guarantee the prosperity of the British empire. The ideas was to export products and services Mercantilists advocated possession of colonies as places where the mother country could acquire raw materials not available at home. England thought that if they could help itself and keep its citizens occupied, producing items found in other lands, they could be selling greater amount goods abroad than imported items. Mercantilism benefited the mother country, while it prevented the progress of the colonies.
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