Inspired by mercantilism, nations concentrated on the balance of trade—the
amount of goods sold compared to the amount bought—since a favorable balance
meant that more gold was coming in than going out. Thus Britain looked to its
American colonies as a market for British goods, a source of raw materials that
were not native to Britain, and as a producer of goods and materials to be sold to
other nations.
THE NAVIGATION ACTS
By the mid-1600s, the American colonies were fulfilling
their role, at least partially. The colonists exported to England large amounts of raw
materials and staples—lumber, furs, fish, and tobacco. In addition, the colonists
bought manufactured English goods such as furniture, utensils, books, and china.
However, not all the products the colonists produced for export ended up on
English docks. Some of the colonists’ lumber and tobacco made
its way into the harbors of Spain, France, and Holland. With the
nations of Europe clamoring for their goods, many colonial mer-
chants could not resist the opportunity to increase their wealth.
England viewed the colonists’ pursuit of foreign markets as
an economic threat. According to mercantilist theory, any
wealth flowing from the colonies to another nation came at
the expense of the home country. As a result, beginning in
1651, England’s Parliament, the country’s legislative body,
passed the Navigation Acts, a series of laws restricting colo-
nial trade (see chart at left).
The system created by the Navigation Acts benefited
England and proved to be good for most colonists as well.
Passing all foreign goods through England yielded jobs for
English dockworkers and import taxes for the English treasury.
Also, by restricting trade to English or colonial ships, the acts
spurred a boom in the colonial shipbuilding industry.
Tensions Emerge
The Navigation Acts, however, did not sit well
with everyone. A number of colonial mer-
chants resented the trade restrictions, and
many continued to smuggle, or trade illegally,
goods to and from other countries. For years
England did little to stop these violations.
Finally, in 1684, King Charles II acted, punish-
ing those colonists whom he believed most
resisted English authority: the leaders and mer-
chants of Massachusetts.
CRACKDOWN IN MASSACHUSETTS
Charles
certainly had evidence to support his belief.
The Puritan leaders of Massachusetts had long
professed their hostility to royal authority and
even suggested that their corporate charter did
not require them to obey Parliament.
In 1684, after failing to persuade
Massachusetts to obey English laws, England
revoked the colony’s corporate charter.
A
The Navigation Acts
• No countr y could trade with
the colonies unless the
goods were shipped in either
colonial or English ships.
• All vessels had to be operat-
ed by crews that were at
least three-quarters English
or colonial.
• The colonies could expor t cer-
tain products only to England.
• Almost all goods traded
between the colonies and
Europe first had to pass
through an English port.
MAIN IDEA
MAIN IDEA
A
Analyzing
Effects
What effects
did the Navigation
Acts have on both
Britain and its
colonies?
A. Answer The
Navigation Acts
yielded jobs for
English dock-
workers and
import taxes for
the English trea-
sury. They also
spurred a boom
in the colonial
shipbuilding
industry.
68 C
HAPTER 3
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