Mercantilism In Colonial America

While trade, commerce and economy collapsed during the Middle Ages, by the Age of Exploration to the eighteenth century, Europe shifted from its once widely accepted manorial system to mercantilism—an economic policy that permitted a nation to restrict the exchange and purchasing of goods between itself and its colonies alone. However, as European powers continued to expand and dominate the world economy, they enacted strict laws and regulations that controlled the economic affairs in their respective colonies—which encouraged the controversial act of smuggling, an act that was deemed necessary by many but was seen as an economic hindrance by others. An additional document, the actual number of goods that were smuggled, displayed preferably
Along with this, mercantilism—a policy in which only the mother country benefits—rose as the economic foundation of these new colonies, which was met with immense criticism and opposition by the colonists – as they were being barred from the freedom of independent trade, as well as the purchasing and manufacturing of goods. As a result, smuggling became a primary activity in the Americas, particularly in the Caribbean region, as a way to rebel and to compensate for lack of resources, as well as labor forces. Monte Christi, a region in Hispaniola, faced an immense shortage in resource production, as William Taggart—a British sailor— notes, “No Sugars, Molasses, Rum, or Indigo [were being] produced…It has only about 100 relatively poor families. Therefore, all the sugar that the English buy at Monte Christi must come in small rowboats from neighboring French settlements on Hispaniola.” (Doc. 1) However, considering the fact that Taggart had been testifying at his own trial, his account does not accurately reflect the controversy of smuggling, as he most likely supported the illegal activities that were occurring. Additionally, over time, smuggling became a widely practiced activity in the eighteenth century economy, primarily due to the population differences between the Caribbean islands as well as the high demands of labor. In his response to the British secretary of state, John Orde writes, “The French Caribbean Colonies have more population than the English islands [and though] government expenses are less for each individual…the quality of French Caribbean brown sugar is so much inferior to the English [while] French shipping to Europe [also] costs more than British shipping [which] encourages the French to smuggle…[increasing] French profits—at British expense.” (Doc.