In the long period from 1500 to 1800, western European
nation-states were all influenced by a set of ideas. known as mercantilism.
(111) Mercantilist doctrine and institutions were important because they were
held by practical businesspeople and heads of stare who strongly influenced
public policy and institutional change. The primary aim of
mercantilists was to achieve power and wealth for the state. To generate an
inflow of gold or silver through trade, the value of exports should exceed the
value of imports. And the state could attain great power only if political and
economic unity became a fact. (112) If all the materials necessary to foster
domestic industry were not available they could best be obtained by establishing
colonies or friendly foreign trading posts from which such goods could be
imported. And a strong merchant marine could carry foreign goods, thereby
helping to secure favorable trade balances. (113) Mercantilists believed that
these means of achieving national power could be made effective by the passage
and strict enforcement of legislation regulating economic life.
(114) Almost as soon as Virginia tobacco began to be shipped in
commercial quantities to England, King James I levied a tax on it while agreeing
to prohibit the growth of competing tobacco in England. Taxes, regulation,
and subsidies were all used as mercantile policies, but the primary ones that
affected the colonies were the Navigation Acts. In 1640s,
Americans had slipped into the habit of shipping their goods directly to
continental ports, and the Dutch made great inroads into the carrying trade of
the colonies. After the Restoration, England was in a position to enforce a
strict commercial policy, beginning with the Navigation Acts of 1660 and 1663.
Despite the continued modifications to these acts by policy changes, it is
sufficient to note three primary categories of trade restriction:
(115) All trade of the colonies was to be carried in vessels that were
English built and owned, commanded by an English captain, and manned by a crew
of whom three-quarters were English. All foreign merchants
were excluded from dealing directly in the commerce of the English colonies.
They could engage in colonial trade only through England and merchants resident
there. Certain commodities produced in the colonies could be
exported only to England (essentially any destination within the Empire). These
"enumerated" goods included sugar, tobacco, cotton, indigo, ginger and so
on.