If Grenville and his Cabinet, in their ignorance of human nature, had made a gross mistake in their conduct towards Wilkes, they now made a more fatal one in regard to our American colonies. These colonies had now assumed an air of great importance, and were rapidly rising in population and wealth. The expulsion of the French from Canada, Nova Scotia, and Cape Breton, the settlement of Georgia by General Oglethorpe, the acquisition of Florida from Spain, had given a compactness and strength to these vast colonies, which promised a still more accelerated and prosperous growth. At this period the inhabitants are calculated to have amounted to two millions of Europeans, and half a million of coloured people, Indians and negroes. The trade was becoming more extensive and valuable to the mother country. The imports from England, chiefly of her manufactures, amounted to three million pounds annually in value. They carried on a large trade with our West Indian islands and the Spanish American colonies, and French and Dutch West Indies. They also built ships for the French and Spaniards, in the West Indies. They had extensive iron and copper mines and works in different states. They manufactured great quantities of hats in New England. The fisheries of Massachusetts produced two hundred and thirty thousand quintals of dried fish, which they exported to Spain and Portugal, and other Catholic countries of Europe. Carolina exported its rice to these countries as well as to England; and they exported vast quantities of cured provisions, dye-woods, apples, wax, leather, tobacco from Virginia and Maryland (fifty thousand hogsheads annually to England alone) valued at three hundred and seventy-five thousand pounds. The masts from New England, sent over for the British navy, were the largest in the world.

Such was the busy scene which these colonies were now presenting. Dutch, German, and Swedish emigrants were carrying their industry and handicrafts thither. But, instead of our merchants seeing what a mighty market was growing up for them there, their commercial jealousy was aroused at the sight of the illicit trade which the colonists carried on with the Spanish, French, and other colonies, and even with Europe. The planters of the British West Indies complained of the American colonists taking their rum, sugar, coffee, etc., from the Dutch, French, and Spanish islands, in return for their raw produce, asserting that they had a monopoly for all their productions throughout the whole of the British dominions. Loud clamours were raised by these planters in the British Parliament, demanding the prohibition of this trade; and, after repeated endeavours in 1733 an Act was passed to crush it, by granting a drawback on the re-exportation of West Indian sugar from England, and imposing duties on the importation of the West Indian produce of our European rivals direct into the American colonies.

These were measures which must have greatly irritated the American colonists. They exhibited a disposition to curb and repress their growing energies between the interests of British merchants and British West Indian planters. The prospect was far from encouraging; whilst, at the same time, the English Ministers, crushing these energies with one hand, were contemplating drawing a revenue by taxation from them on the other. Britain argued that she sacrificed large amounts in building up colonies, and therefore had a right to expect a return for this expenditure. Such a return, had they had the sagacity to let them alone, was inevitable from the trade of the colonies in an ever-increasing ratio.

Grenville, being on the look-out for new taxes, had paid particular attention to the rapid growth of the American colonies, and was inspired with the design of drawing a revenue from them. The scheme had been suggested to Sir Robert Walpole, when his Excise Bill failed, by Sir William Keith, who had been governor of Pennsylvania; but Sir Robert had a far deeper insight into human nature than the shallow and obstinate Grenville. He replied, "I have already Old England set against me, and do you think I will have New England set against me too?"

During the Session of 1764 Grenville imposed several duties on American articles of export, if imported direct from the French, Dutch, and Spanish West Indies. The Americans did not dispute the right of the mother country to impose such duties on the trade of the empire in any quarter; but these imposts, seeing the object of them, were not the less galling. But Grenville did not stop there; he stated, at the time of passing these duties, that it was probable that Government would charge certain stamp duties in America. This was creating a sore place and immediately striking it. The infatuated Minister was contemplating an act of the nature of which neither he nor his colleagues had any conception.

The news of these imposts, and of this intended stamp duty, flew across the Atlantic, and produced the most bitter excitement. Never could this unwelcome news have reached the colonies at a more unpropitious moment. To restrictions on their legitimate trade, the British had been adding others on their illegitimate trade. Nearly all the American colonies lay on the seaboard, and were, therefore, naturally addicted to a free sort of trade, which these new duties made contraband. The British Government had sent out a number of revenue ships and officers to cut off this trade, and capture and confiscate all vessels found practising it. The colonists met in various places, and passed very strong resolutions against these regulations. The people of New England spread their views and resolves all over the colonies by means of the press. They refused to listen to any overtures of the British Government on the subject. They claimed the right to grant, of their own free will, such contributions to the revenue of the empire as their own assemblies should deem just, and to submit to no compulsion where they had no voice. They called on all the colonists to refrain as much as possible from purchasing any of the manufactures of England so long as she showed a disposition to oppress them, and to obtain their materials for clothing from other countries, or to begin to manufacture them themselves; and to cease also to use all luxuries on which the duties were laid. To make their case known in England, Pennsylvania, Massachusetts, Maryland, and Georgia appointed the celebrated Benjamin Franklin their agent in London.

Parliament met on the 10th of January, 1765. The resentment of the Americans had reached the ears of the Ministry and the king, yet both continued determined to proceed. In the interviews which Franklin and the other agents had with the Ministers, Grenville begged them to point to any other tax that would be more agreeable to the colonists than the stamp-duty; but they without any real legal grounds drew the line between levying custom and imposing an inland tax. Grenville paid no attention to these representations. Fifty-five resolutions, prepared by a committee of ways and means, were laid by him on the table of the House of Commons at an early day of the Session, imposing on America nearly the same stamp-duties as were already in practical operation in England. These resolutions being adopted, were embodied in a bill; and when it was introduced to the House, it was received with an apathy which betrayed on all hands the profoundest ignorance of its importance. Burke, who was a spectator of the debates in both Houses, in a speech some years afterwards, stated that he never heard a more languid debate than that in the Commons. Only two or three persons spoke against the measure and that with great composure. There was but one division in the whole progress of the Bill, and the minority did not reach to more than thirty-nine or forty. In the Lords, he said, there was, to the best of his recollection, neither division nor debate!

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