Ch. 2.2. Primary Sources: British Regulation of Colonial Manufacturing
Besides the Navigation Acts, the British Parliament also passed several laws that targeted particular colonial industries or products in order to favor Britain’s domestic economy. Most of these laws were passed due to the influence in Parliament of British manufacturing or trade interest groups, which sought to protect various types of British industry or trade. Although some of these laws included limitations on or even the prohibition of certain kinds of production in the American colonies, it seems that these restrictions on manufacturing were never seriously enforced. In a sense these laws served primarily to show Parliament’s support for certain interest groups. It was also easier to import certain luxury or highly specialized goods, such as some woolen textiles and hats, from Britain, rather than producing them locally. In these areas American manufacturing focused on more basic goods, and did not compete directly with British imports.
In contrast some of these laws also included clauses that encouraged or even offered bounties or subsidies for manufacturing certain products, and these more ‘positive’ regulations probably had more effect–even if in these cases too market incentives were more significant. This section contains excerpts from four of these laws.
Restraining or Woolens Act, 1699
One of the first of these laws was the Woolens Act of 1699, which sought to protect the manufacture of woolen cloth in Britain by prohibiting its export from Ireland and America.
Whereas great quantities of the like manufactures have of late been made, and are daily increasing in the kingdom of Ireland, and in the English plantations in America, and are exported from thence to foreign markets, heretofore supplied from England…And for the more effectual encouragement of the woolen manufacture of this kingdom; be it further enacted…no wool, woolfells, shortlings, mortlings, woolflocks, worsted, bay, or woollen yarn, cloth, serge, bays, kerseys, says, friezes, druggets, cloth-serges, shalloons, or any other drapery stuffs, or woollen manufactures whatsoever, made or mixed with wool or woolflocks, being the product or manufacture of any of the English plantations in America, shall be loaden or laid on board in any ship or vessel, in any place or parts within any of the said English plantations, upon any pretence whatsoever.
Naval Stores Act, 1705
As England rose as a maritime power, it encountered increasing competition and rising prices for naval supplies. When a war broke out in the Baltic that reduced England’s access to its main source of strategic ‘naval stores,’ mostly pine trees for ships’ masts and the pine tar and resin for caulking ships, Parliament responded by passing the Naval Stores Act. It encouraged the production of these materials by offering bounties for the import from America of several types of naval stores. In the northern colonies, the law also reserved to the crown all large pine trees that were in unenclosed land. This law had little effect on the northern economy, where its reservation of trees for example was largely ignored, but it did help to stimulate the export of naval stores from the Carolinas.
Whereas the royal navy and the navigation of England, on which…the wealth, safety and strength of this kingdom so much depends, requires the supply of various stores, which are now brought in mostly from foreign ports… Be it therefore enacted…That every person or persons who shall…import or cause to be imported into this kingdom, directly from any of her Majesty’s English colonies or plantations in America…, any of the naval stores hereafter mentioned, shall have as a reward or premium for such importation…as follows:
“For good and saleable tar per ton (each ton containing eight barrels; each barrel containing 31.5 gallons), 4 pounds. For good and saleable pitch per ton, 4 pounds. For good and saleable resin or turpentine per ton, 3 pounds. For hemp…per ton…, 1 pound. For all masts, yards, and bowsprights, per ton…, 1 pound…
“And for the better preservation of all timber fit for the uses aforesaid, be it further enacted: That no person or persons within her Majesty’s colonies…[from New Jersey north]…shall presume to cut, fell, or destroy any pitch, pine trees, or tar trees, not being within any fence or actual enclosure, under the growth of 12 inches diameter at three feet from the ground, on the penalty of 5 pounds for each offense…, half of which penalty for her Majesty, and half for the informer or informers.
The Hat Act, 1732
Another in this series of laws that targeted certain industries was the Hat Act. At this time hats were made from both woolen cloth and the fur of various animals, especially beaver. The American colonies, especially in the north, had the advantage of a supply from the fur trade with Native Americans further in the interior, and so their hat industry enjoyed advantages as well.
Whereas…considerable quantities of hats manufactured in this kingdom have heretofore been exported to his Majesty’s plantations or colonies in America, who have been wholly supplied with hats from Great Britain; and whereas great quantities of hats have of late years been made, and said manufacture in daily increasing to the British plantations in America, and is from thence exported to foreign markets, which were heretofore supplied from Great Britain…be it enacted by the king’s most excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons in this present Parliament assembled…no hats or felts whatsoever, dyed or undyed, finished or unfinished, shall be shipped, loaded, or put on board any ship or vessel in any place or parts within any of the British plantations…to the intent and purpose to be exported, transported, shipped off, carried, or conveyed out of any of the said British plantations to any other of the British plantations, or to any other place whatsoever…
The Iron Act, 1750
This law was passed after years of debate in Parliament among various British interest groups. The British producers of ‘raw’ or relatively unprocessed iron, known as ‘pig iron,’ and the producers of partially refined iron, known as ‘bar iron,’ had long sought to limit the importation of these products. Since the late 1600s these interest groups had succeeded in persuading Parliament to impose import duties, or tariffs, on pig and bar iron imported from America. The English production of these forms of iron was not sufficient, however, to keep up with demand. As a result by the mid-1700s Britain was importing most of its raw iron from overseas, primarily from Russia and Sweden. Although over the 1700s the American iron industry grew rapidly, raw iron from America never accounted for more than 5% of total British iron imports.
Nonetheless, the relative scarcity of raw iron in Britain helped to encourage Parliament to change the laws. By 1750 other interest groups, including both those who used raw iron to manufacture tools, weapons, and other iron products, as well as shipping interests, persuaded Parliament to pass the Iron Act. This law freed American imports of raw iron from all tariffs, but prohibited the establishment in America of any new iron mills that used raw iron to produce finished products or to produce steel.
This law reflects perfectly the priorities of the ‘mercantilist’ economic ideas that shaped much British policy towards it colonies in this period: colonies should focus on producing raw materials useful to the mother country, while importing finished goods from the mother country. But as with most other British regulations of the colonial economy, this law had very little effect, both in its positive measures to promote American exports and in its negative provisions to restrain American manufacturing.
Despite the provisions that removed all tariffs on raw iron imported from America, these imports increased only slightly. This was due primarily to the fact that it was more expensive to import iron from across the Atlantic than from other places in Europe. Also, rather than being exported, most American iron was used locally, where it was refined to make such products as tools, plows, guns, etc.
As for the law’s provisions that prohibited new iron-processing plants, they were not backed by any practical means of enforcement and were almost completely ignored. The American iron industry had grown quickly over the 1700s, much more so than many British observers realized. It continued to develop after 1750, even if British administrators lacked detailed information about it and vastly underestimated its significance.
In the 23rd Year of the Reign of King George II.
An act to encourage the importation of pig and bar iron from his Majesty’s colonies in America; and to prevent the erection of any mill or other engine for slitting or rolling of iron; or any plating forge to work with a tilt hammer; or any furnace for making steel, in any of the said colonies.
[Section 1] WHEREAS the importation of bar iron from his Majesty’s colonies in America, into the port of London, and the importation of pig iron from the said colonies, into any port of Great Britain, and the manufacture of such bar and pig iron in Great Britain, will be a great advantage not only to the said colonies, but also to this kingdom, by furnishing the manufactures of iron with a supply of that useful and necessary commodity, and by means thereof large sums of money, now annually paid for iron to foreigners, will be saved to this kingdom, and a greater quantity of the woolen, and other manufactures of Great Britain, will be exported to America, in exchange for such iron so imported; be it therefore enacted…
That from and after June 24, 1750, the… duties now payable on pig iron, made in and imported from his Majesty’s colonies in America, into any port of Great Britain, shall cease… and be no longer paid…
[Section IX] …Be it further enacted that, from and after June 24, 1750, no mill or engine for slitting or rolling iron, or any plating forge to work with a tilt hammer, or any furnace for making steel shall be erected or if erected continued in any of his Majesty’s colonies in America; and if any person or persons shall erect, or after erecting shall continue…, any such mill, engine, forge, or furnace, every person or person so offending… shall… forfeit the sum of two hundred pounds…
[Section X] …and every governor, lieutenant governor, or commander in chief of any of his Majesty’s colonies in America, where any such mill, engine, forge, or furnace shall be erected or continued, …shall order [them] to be abated within thirty days…