U.S. History IColonial America (1607 to 1754)D2.His.14.9-12

Mercantilism and the Navigation Acts

Under mercantilism, colonies existed to enrich the mother country; the Navigation Acts (from 1651) made colonists ship key goods only on English ships to English ports, though Britain enforced them loosely for decades ("salutary neglect").

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Why did England want colonies at all? The answer is an economic idea that ruled European empires in this era. It links the colonial economies you have studied to the quarrel that would later break the empire apart.

Key idea

Under mercantilism, colonies existed to make the mother country rich: they supplied raw materials and bought its manufactured goods. The Navigation Acts (from 1651) required colonial trade to go in English ships, and key "enumerated" goods to go only to England or its colonies. For decades Britain enforced these laws loosely, a policy later called salutary neglect.

Why it works

Mercantilists measured a nation's wealth in gold and silver. A country grew richer when it sold more abroad than it bought, a favorable balance of trade. Colonies helped twice: they produced goods the nation would otherwise buy from rivals (sugar, tobacco, naval stores), and they were a protected market for the nation's cloth and tools. Laws kept that trade, and the shipping profits, inside the empire.
Key trade laws.
LawYearWhat it did
Navigation Act1651Goods brought into England or its colonies from Asia, Africa or America had to come in English ships.
Navigation Act1660Listed "enumerated" goods (tobacco, sugar, cotton, indigo and others) that could be shipped only to England or English colonies.
Molasses Act1733Taxed molasses from the French and Dutch islands; widely evaded by smuggling.
Which policies fit mercantilism, and which fit free trade?

Worked example: Who gains?

A Virginia planter must ship his tobacco to England, even if Dutch merchants would pay more. Who benefits from the rule?
  1. English merchants and shippers get the trade and can resell tobacco to Europe at a profit.
  2. The English government collects customs duties.
  3. The planter may get a lower price, but his tobacco has a protected market in England.

Answer: England gains most; the colonist gains some protection but loses freedom to sell where he likes.

Worked example: Salutary neglect

Why did Britain enforce the trade laws loosely before 1763?
  1. Prime Minister Robert Walpole (1721 to 1742) thought a growing colonial trade would enrich Britain more than strict enforcement.
  2. Customs officers were few and smuggling was easy along a long coast.
  3. Britain was busy with wars in Europe.

Answer: Leniency seemed to pay, and strictness was hard. The phrase "wise and salutary neglect" is Edmund Burke's, from 1775.

Because of this long leniency, colonists grew used to trading, smuggling and governing themselves with little interference. When Britain began enforcing the laws and adding new taxes after 1763, the change felt like an attack on their rights.

Common mistake

Mercantilism is not free trade; it is close to the opposite. Free trade lets merchants buy and sell where they like; mercantilism used laws to steer trade so the mother country came out ahead. Adam Smith's Wealth of Nations (1776) was written in large part as a critique of the mercantile system.

Practice

Pass with 3 right answers, the last 2 in a row. Each right answer earns 2 XP.

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