*Remember French and Indian War victories discussed previously, and the mixture of pride and disillusionment the colonists felt for Britain.  Territory has been added to British America, but (thanks to the Indians, particularly Pontiac's rebellion) the Proclamation Line of 1763 keeps colonists out of the west and requires a British garrison.

*The French and Indian War left a debt of £125-140 million, and Parliament needed a way to pay for it, so they might as well tax the colonists who benefited from the war.

*Taxation without representation:  remind class of colonial legislatures and parliament, virtual representation, and the distinction between internal (on property, for revenue) and external (on trade, to regulate commerce and the Empire as a whole) taxes.
 
*Theme:  changing views on taxation and proper government, growing frustration of colonists and Parliament with one another.

*There were a number of external taxes in place before the 1760s (such as the Molasses Act), but most were not enforced, or at least not enforced well.  Men (like John Hancock) grew rich off smuggling.

*Taxes like this were acceptable in part because they were easy to get around and because they were part of the mercantilist system.  The idea behind the mercantilist system (which all imperial powers used) was that the colonies ought to supply raw materials to Europe, who would in turn sell manufactured goods to the colonies.  Each set of colonies only supplied and bought from the mother country.  The idea was that each empire would be self-sufficient.  Indirect taxes that promoted this were seen as a reasonable part of keeping the empire running.  They also often helped the colonies, as products like tobacco were essentially subsidised by this system, which made sure Virginia tobacco could be sold in London.

*George Grenville, PM late 1763.

*Currency Act, 1764:  colonies may not issue paper money--seen as a threat to the local economy; actually done to protect British creditors and merchants.

*Revenue (Sugar) Act, 1764:  cut the Molasses Act in half, but actually tried to enforce it, therefore giving British authorities more power for search and seizure.  Colonists did not see a need for more taxes and especially more bureaucracy now that peace had arrived.  Worse, violators of the law were tried by the appointed and distant British Admiralty courts, not by local juries.  In short, as the colonists saw it, Britain was changing the rules and threatening their rights as Englishmen.  Most colonists (Benjamin Franklin, for example) felt that, though perhaps not ideal, the Sugar Act was legal and within the traditional powers of Parliament, because it was an external tax meant to regulate the Empire.  Opposition was scattered and unpopular, but there were some petitions to Parliament against the law, some boycotts of taxed goods, and some violence, but the results are minimal.  However, George Grenville was not done.

*Stamp Act (1765, announced in 1764):  a tax on many paper goods.  This is a direct tax levied against property in order to make money for the government.  Worse, it especially hurt newspapermen, businessmen, lawyers and legislatures--the people who could organise resistance.  It was also rough for others, because, although the tax on individual items is not bad, it had to be paid in specie, and that was scarce.  Loyal citizens such as Franklin and Lieutenant-Governor Thomas Hutchinson of Massachusetts advised against the Act, but it was put into force anyway.  Agitation spread to several colonies, and Patrick Henry began his career by denouncing the Stamp Act.  Pamphlets were written denouncing the Act, but were ignored by Parliament.  Eventually, representatives from nine colonies met in New York in 1764 to plan a cohesive resistance to this one act while remaining loyal to the king.  This is the Stamp Act Congress.  Other groups appeared as well, including the Sons of Liberty, who serve as vigilantes to harass anyone taking part in enforcing the Stamp Act.  By late 1765, all the officials are afraid to do their duty, and in 1766, the act was repealed, but Parliament passed the Declaratory Act (1766) saying they had the right to do this sort of thing, so the crisis was not over.

*Quartering Act (1765):  requires colonists to feed, house, and generally support the troops policing the Proclamation Line.  Many of them were moved into New York, where they were resented, because, under the Quartering Act, the New York Legislature was required to pass taxes that will pay for the soldiers' support.  This was not exactly a direct tax, because New Yorkers are not told how they had to implement it, just so long as they took care of the troops somehow.  Nonetheless, they resisted it, and lost some friends in Parliament along the way, resulting in the New York Suspending Act (1767):  Townshend ordered the Governor of New York to veto every single vote in the Assembly until they complied with the Quartering Act.  One important friend the colonies would soon lose was the next Prime Minister.

*William Pitt, 1766, returned as Prime Minister.  Once a friend of the colonies, he started to get sick of them quickly, as did the Chancellor of the Exchequer, Charles Townshend.  Townshend has a great idea:  he'll use indirect taxes, just like the colonists said they liked.

*Townshend Duties (1767):  duties on certain imports, including glass, paper, lead, paint, and TEA.  These were supervised by a board of customs commissioners headquartered in Boston, which was generally resented.  The taxes resulted in protests, boycotts and violence, as merchants (sometimes out of fear) signed non-importation agreements that hurt British merchants, who in turn speak to Parliament.  This violence culminates in the Boston Massacre.  Parliament tries to temper its policies.  Lord North becomes Prime Minister and repeals all the Townshend Duties except the one on TEA.

*Although this quiets the colonies down somewhat, there is still disorder in Boston, and British soldiers are sent in.  They were resented by the locals and frequently teased and taunted.  On the night of 5 March, 1770, a crowd of about 60 Bostonians started harassing about 10 soldiers.  One soldier was hit with a club and knocked down.  The crows also threw rocks and chunks of ice at the soldiers.  Angry and afraid, the soldiers fired their muskets into the crowd and killed or wounded eleven civilians.  Later, the trial found only two soldiers guilty, and they were released after their hands were branded.

*After this, not much happened, but colonists opposed to the British kept in touch through letter-writing groups or Committees of Correspondence.

*The colonies were prosperous now, and they decided to live with the tea tax and the old tax on molasses from the sugar act.  However, in 1772 and 1773 several things go wrong.  One of them is the Tea Act of 1773.  This gave a monopoly on tea importing to the East India Tea Company (in which many MPs and royal officials owned stock), and let them bypass wholesalers.  It also eliminated all duties and taxes on tea except the Townshend Duty.  Therefore, the East India Tea Company could sell tea (even with the duty) cheaper than even the smugglers could.  The merchants, especially the middlemen, called it CORRUPTION and MONOPOLY and the start of an insidious conspiracy!  They said the local merchants would be ruined, THEN the tea company would jack the prices up.  It supported unneeded bureaucrats and corrupt officials.  However, no-one cared.  Tea was too popular—close to half the population drank it daily.  However, a few agitators again stirred up trouble.  The Sons of Liberty threatened merchants and tax officials, so that many resign.

*Finally, in Boston, there was a big shipment of tea in the harbour.  Acting Governor Hutchinson says that since it's in the city, the taxes must be paid.  However, a mob at the docks won't let the ships unload or sell the tea, while the governor won't let them leave.  Finally, the captain of one ship goes ashore and asks for help.  This is creatively misinterpreted by the Sons of Liberty, and sixty, dressed as Indians, sneak aboard and dump £10,000 worth of tea into Boston Harbour while 2,000 locals stand around and cheer.

*There are other tea parties like this up and down the coast, and Parliament is not pleased.  In response, passes the Coercive Acts, or Intolerable Acts (1774).  These shut down Boston Harbour until all the taxes were paid and the tea itself was paid for, removed Hutchinson from office and replaced him with General Thomas Gage who had the power to appoint a council and forbid town meetings, ensured that royal officials charged with any crime would be tried in England (not the colonies), and introduced more troops to enforce the laws, who had to be supported any way the military say fit (even in private homes).  Parliament also passed the Quebec Act, which preserved Catholicism, the French language, and other traditions in Quebec while enlarging its borders down to the Ohio River.

*The Virginia House of Burgesses called for a day of prayer for Massachusetts and was disbanded by the governor.  Meeting in a tavern nearby, they call for a meeting of all the colonies to decide what to do next.  This will be next lesson's First Continental Congress.

*Observe how taxes are passed, protested, repealed, and then replaced with something worse.  See how colonists forget the difference between internal and external taxes.  See how they start to work together, while still hoping to remain loyal to the king, if not to his officials.

*The First Continental Congress, which we will discuss more later, will not do a great deal, but it will be seen as sufficiently important to call a second one in 1775, and that group will begin to organise armed resistance against the crown’s forces, and ultimately initiate revolution.

A LIST OF TAXES AND OTHER EVENTS

Molasses Act (1733)

Prime Minister George Grenville

Currency Act (1764)

Sugar Act (1764)

Stamp Act Congress, New York (1764)

Stamp Act (1765)

Quartering Act (1765)

Declaratory Act (1766)

Prime Minister William Pitt

Chancellor of the Exchequer Charles Townshend

New York Suspending Act (1767)

Townshend Duties (1767)

Boston Massacre (5 March, 1770)

Prime Minister Lord North

Tea Act (1773)

Boston Tea Party (16 December, 1773)

Intolerable Acts
 Coercive Acts (1774)
  Boston Port Act
  Massachusetts Governor Act
  Imperial Administration of Justice Act
  Quarting Act
 Quebec Act (1774)
 

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