European products from English middlemen, and were especially desirous of importing Spanish and Portuguese wines and French brandies directly. Smuggling in these articles seems to have been steadily carried on. Much more important—and to the American ship-owners the kernel of the whole matter—was the problem of the West India trade. It was proved, as the eighteenth century progressed, that the North American colonies could balance their heavy indebtedness to the mother country for excess of imports over exports only by selling to the French, as well as the British West Indies, barrel staves, clapboards, fish and food products. In {25} return, they took sugar and molasses, developing in New England a flourishing rum manufacture, which in turn was used in the African slave trade. By these means the people of the New England and Middle colonies built up an active commerce, using their profits to balance their indebtedness to England. This "triangular trade" disturbed the British West India planters, who, being largely non-residents and very influential in London, induced Parliament, in 1733, to pass an Act imposing prohibitory duties on all sugar and molasses of foreign growth. This law, if enforced, would have struck a damaging blow at the prosperity of the Northern colonies, merely to benefit the West India sugar-growers by giving them a monopoly; but the evidence goes to show that it was systematically evaded and that French sugar, together with French and Portuguese wines, was still habitually smuggled into the colonies. Thus the Navigation Acts, in the only points where they would have been actually oppressive, were not enforced. The colonial governors saw the serious consequences and shrank from arousing discontent. It is significant that the same colonists who contended with the royal governors did not hesitate to violate a parliamentary law when it ran counter to their interests.

The only reason why the radical difference {26} between the colonies and the home government did not cause open conflict long before 1763 is to be found in the absorption of the English ministries in parliamentary manoeuvring at home, diplomacy, and European wars. The weakness of the imperial control was recognized and frequently complained of by governors, Boards of Trade, and other officials; but so long as the colonies continued to supply the sugar, furs, lumber and masts called for by the Acts, bought largely from English shippers and manufacturers, and stimulated the growth of British shipping, the Whig and Tory noblemen were content. The rapidly growing republicanism of the provincial and proprietary governments was ignored and allowed to develop unchecked. A half-century of complaints from thwarted governors, teeming with suggestions that England ought to take the government of the colonies into its own hands, produced no results beyond creating in official circles an opinion unfavourable to the colonists.

In the years of the French war, 1754-1760, the utter incompatibility between imperial theories on the one hand and colonial political habits on the other, could no longer be disregarded. In the midst of the struggle, the legislatures continued to wrangle with governors over points of privilege; they were slow to vote supplies; they were {27} dilatory in raising troops; they hung back from a jealous fear that their neighbour colonies might fail to do their share; they were ready to let British soldiers do all the hard fighting. Worse still, the colonial shipowners persisted in their trade with the French and Spanish West Indies, furnishing their enemies with supplies, and buying their sugar and molasses as usual. When, in Boston, writs of assistance were employed by the customs officials, in order that by a general power of search they might discover such smuggled property, the merchants protested in the courts, and James Otis, a fiery young lawyer, boldly declared the writs an infringement of the rights of the colonists, unconstitutional, and beyond the power of Parliament to authorize. To Ministers engaged in a tremendous war for the overthrow of France, the behaviour of the colonies revealed a spirit scarcely short of disloyalty, and a weakness of government no longer to be tolerated. The Secretaries, the Board of Trade, the customs officials, army officers, naval commanders, colonial governors, and judges all agreed that the time had come for a thorough and drastic reform. They approached the task purely and simply as members of the English governing classes, ignorant of the colonists' political ideas and totally indifferent to their views; and their measures were framed in the spirit {28} of unquestioning acceptance of the principles of the Acts of Trade as a fundamental national policy.

CHAPTER II

THE CONTEST OVER PARLIAMENTARY TAXATION, 1763-1773

The Prime Minister responsible for the new colonial policy was George Grenville, who assumed his position in May, 1763, shortly after the final treaty of Paris. Every other member of his Cabinet was a nobleman, Grenville himself was brother of an earl, and most of them had had places in preceding Ministries. It was a typical administration of the period, completely aristocratic in membership and spirit, quite indifferent to colonial views, and incapable of comprehending colonial ideals even if they had known them. To them the business in hand was a purely practical one; and with confident energy Grenville pushed through a series of measures, which had been carefully worked out, of course, by minor officials unknown to fame, during the preceding months, {29} but which were destined to produce results undreamed of by any one in England.

In the first place, there were a number of measures to strengthen and revivify the Acts of Trade. Colonists were given new privileges in the whale fishery, hides and skins were "enumerated," and steps were taken to secure a more rigorous execution of the Acts by the employment of naval vessels against smuggling. A new Sugar Act reduced the tariff on foreign sugar to such a point that it would be heavily protective without being prohibitive, and at the same time imposed special duties on Portuguese wines, while providing additional machinery for collecting customs. This was clearly aimed at the weak point in the existing navigation system; but it introduced a new feature, for the sugar duties, unlike previous ones, were intended to raise a revenue, and this, it was provided in the Act, should be used to pay for the defence of America.

A second new policy was inaugurated in a proclamation of October, 1763, which made Florida and Canada despotically governed provinces, and set off all the land west of the head-waters of the rivers running into the Atlantic as an Indian reservation. No further land grants were to be made in that region, nor was any trade to be permitted with the Indians save by royal licence. The {30} Imperial government thus assumed control of Indian policy, and endeavoured to check any further growth of the existing communities to the West. Such a scheme necessitated the creation of a royal standing army in America on a larger scale than the previous garrisons; and this plan led to the third branch of the new policy, which contemplated the positive interposition of Parliament to remedy the shortcomings of colonial assemblies. An Act of 1764 prohibited the future issue of any paper money by any colony, thus terminating one of the chief grievances of British governors and merchants. But still more striking was an Act of 1765, which provided with great elaboration for the collection of a stamp tax in the colonies upon all legal documents, newspapers, and pamphlets. The proceeds were to be used to pay about one-third of the cost of the new standing army, which was to consist of ten thousand men. Taken in connection with the announced intention of using the revenue from the Sugar Act for the same purpose, it is obvious that Grenville's measures were