American Colonial Protectionist Trade Issues: Lessons for the Future Nation?
The English commercial
relationship with the North American colonies has often been cited as one of
friction, contributing to the break between the colonies and the mother
country. This break led to the American War for Independence and patriot victory. Trade
patterns and commercial statistics, however, reveal that the trade relationship
was consistent in the years before the conflict and, in many cases, lucrative
for American merchants, planters, and those involved in manufacturing.
English Imports and Exports
in the First Half of the 18th Century
During the first fifty years
of the 18th Century, the only trade figures in terms of imports and
exports that remained constant in English trade patterns were with the American
colonies. In 1700, 6% of all English imports came from North
America; in 1750, that figure rose to 11%. In 1700 English exports
to the North American colonies stood at 6%, rising to 11% in 1750. Such
consistency was not the case for imports and exports to other geographic
regions,
In 1700, for example, 66% of
all English imports originated in Europe. This
figure fell to 55% in 1750. The deficiency can be attributed to English imports
coming from the East Indies, North America, and the West
Indies by 1750. In fact, West Indies
goods increased 5% over a fifty year period, attesting to the growing diversity
of the import/export trade as the English began to forge a global trade empire.
The same can be said for
English exports. Exports to Europe fell from 85% to 77% by 1750 while the
largest gain in exports was in North America by 5%, followed by the East Indies 3%. Part of this increase can be attributed
to a growing North American population. In 1700, the estimated population in
the American colonies was 250,888. This figure grew to 1,179,760 by 1750.
Advancing the Mercantilist
System Provided Profits and Continuity
Professor Oliver Dickerson
argues that, “The trade of the Empire was discovered to be an economic whole
with a complicated mass of legal regulation.” The chief end of these measures
was to “encourage British trade and commerce.” Dickerson cites, as an example,
the introduction of naval stores in the Southern colonies as an industry
designed to benefit both the colonies and England.
Prior to 1700, naval stores
had been purchased from the Baltic region, not part of the English system.
Naval stores included such commodities as tar, pitch, and hemp, all essential
in servicing ships. By introducing these industries to the colonies and levying
high tariffs on the Baltic products, profits were retained within the
mercantilist system. Further, England
paid colonial producers bounties in order to make the production more
appealing.
Many “enumerated” goods
included bounties or subsidies paid above the value of the commodity, such as
tobacco. Such financial enhancements were discontinued, however, with
over-production and the depression of prices. George Washington, for example,
invested heavily in tobacco only to accumulate high debts when prices fell,
forcing him to convert land on his Mount
Vernon estate to other crops.
End of the Protectionist
Trade System
By 1764 England, attempting to payoff huge
debts associated with the Seven Years’ War altered the previously consistent
trade regulations associated with the Navigation Acts. Dickerson, for example,
states that these policy changes were accomplished for “the sake of revenue and
political exploitation.” Other historians of the colonial period agree with
this assessment.
Thus, the original
regulations attached to decades-old Navigation Acts were not to blame for the
revolution. It can even be argued that they benefitted the colonies and made
many Americans wealthy, increasing the colonial standard of living. Rather, if
the commercial policies are to used as a cause for the revolution, it was their
subversion by various English treasury ministers that brought about conflict.
The American Revolution ended
colonial participation in the intricate trade system of Britain. In
some cases, certain lucrative enterprises were lost, such as tobacco, rice, and
naval stores. Tobacco, in many cases, was replaced by cotton, which turned out
to be fortuitous because increased cotton cultivation in the South coincided
with a growing English need for cotton.
Economic historian David
Landes, for example, writes that in 1760 “Britain imported some 2 ½ million
pounds of raw cotton…” and that by 1787, this increased to 22 million pounds. Although
Britain imported cotton in
the 19th century from India,
the West Indies, and Egypt,
American cotton was considered superior.
The Trade Relationship with
the English Colonies
The English-colonial trade
relationship functioned well in the years before the regulatory policy changes
that focused on revenue collection. Although it can be argued that these
pre-revolutionary taxes were justified, albeit ill-conceived, they led to the
revolution which ultimately destroyed that trade relationship.
Sources:
Carlo M. Cipolla, Before the Industrial Revolution (W.W.
Norton, 1994)
Oliver M. Dickerson, The Navigation Acts and the American
Revolution (University of Pennsylvania Press, 1951)
David S. Landes, The Unbound Prometheus: Technological Change
and Industrial Development in Western Europe
from 1750 to the Present (Cambridge University Press, 1969)
Published August 25, 2010 by M.Streich, copyright