The nurture of commerce was fundamental. Toward this end Parliament enacted the Navigation Acts. These laws, put into effect over a period of half a century and more, were designed to bring gold and silver into the Royal Treasury, to develop the imperial merchant fleet, to channel the flow of colonial raw materials into England, and to keep foreign goods and vessels out of colonial ports.
The system originated in the 1650s in response to stiff commercial competition by the Dutch, whose sailors roamed the world’s oceans in search of business. Before 1650 a large share of the produce of the English colonies in America reached Europe in Dutch vessels.
The first slaves in Virginia arrived on a Dutch ship and were doubtless paid for in tobacco that was later enjoyed in the Dutch cities of Amsterdam and Rotterdam.
The Navigation Act of 1660 reserved the entire trade of the colonies to English ships and required that the captain and three-quarters of his crew be English. (Colonists, of course, were English, and their ships were treated on the same terms as those sailing out of London or Liverpool.) The act also provided that certain colonial “enumerated articles”— sugar, tobacco, cotton, ginger, and dyes like indigo (purple) and fustic (yellow)—could not be “shipped, carried, conveyed or transported” outside the empire. Three years later Parliament required that with trifling exceptions all European products destined for the colonies be brought to England before being shipped across the Atlantic. Since trade between England and the colonies was reserved to English vessels, this meant that the goods would have to be unloaded and reloaded in England.
Early in the eighteenth century the list of enumerated articles was expanded to include rice, molasses, naval stores, furs, and copper.
The English looked on the empire broadly; they envisioned the colonies as part of an economic unit, not as servile dependencies to be exploited for England’s selfish benefit. Growing tobacco in England was prohibited, and valuable bounties were paid to colonial producers of indigo and naval stores. A planned economy, England specializing in manufacturing and the colonies in the production of raw materials, was the grand design. By and large the system suited the realities of life in an underdeveloped country rich in raw materials and suffering from a chronic labor shortage.
Much has been made by some historians of the restrictions that the British placed on colonial manufacturing. The Wool Act of 1699 prohibited the export (but not the manufacture for local sale) of colonial woolen cloth. A similar law regarding hats was passed in 1732, and in 1750 an Iron Act outlawed the construction of new rolling and slitting mills in America. No other restrictions on manufacturing were imposed.
At most the Wool Act stifled a potential American industry; the law was directed chiefly at Irish woolens rather than American ones. The hat industry cannot be considered a major one. Iron, however, was important; by 1775 the industry was thriving in Virginia, Maryland, New Jersey, and Pennsylvania, and America was turning out one-seventh of the world supply. Yet the Iron Act was designed to steer the American iron industry in a certain direction, not to destroy it. Eager for iron to feed English mills, Parliament eliminated all duties on colonial pig and bar iron entering England, a great stimulus to the basic industry.