Manufacturing, wool, flax, iron, steel, and copper, is growing,—field pieces, rifled guns for hunters, and iron cannon are all made in the Colonies. England does not interfere with domestic production, but it prevents exportation, and does not allow hats to be made, lest the English production, although made of American beaver, should be lessened in demand in the Colonies. There is little ground for fear of American competition, as workmen are few there, and farming is always preferred to trades. Farmers are good fathers, and large families help economical living. Even if manufacturing increases, it cannot keep pace with the increase of population and the demand for goods. In 34 years the population of Pennsylvania increased fourfold at most, but the importation of English wares increased from £16000 Sterling to £268000,—that is seventeen times greater. In 1725 the value of such importations was £16000, in 1757, £268426. Four times the population uses much more than four times, really seventeen times more goods, because the population grows more rapidly in wealth than in numbers. Manufactures must in time be established in the Colonies, because with their prosperity likely to increase for centuries to come, England and Ireland cannot supply all the wares needed and the Colonies must provide them for their future necessities.
The three largest cities are Boston, New York and Philadelphia. In 1720 the first was as large as the other two together, but since then they have grown faster. In New England there are many sea ports, but the only ports for New York and Pennsylvania are their two capitals, and they are likely to be the largest cities in America. Philadelphia has more than 3000 houses, and more than 20000 inhabitants. It is regularly laid out at right angles, and the streets extend every year.
Virginia has the fewest villages and only one little town, Williamsburg, its capital. The population is scattered and every family lives on its own tobacco plantation. The Chesapeake and its affluents reach every where and the Colonists bring their tobacco by water to the Bay where it is loaded on sea going vessels.
New York has great advantages for trading with the native Indians, by means of the Hudson to Albany, and thence by smaller streams to Oswego and Lake Ontario, where the great fairs for dealing with the Indians are held. From Lake Ontario there is water way to Lake Superior. The Indians bring their skins and hides from the west by water to Oswego, and New York excludes traders from Pennsylvania. Philadelphia trades with New Jersey over the Delaware River. Salt is imported in 50 or 60 vessels from Spanish South America and the Cape Verde Islands and Senegal, where it is made from saltwater, by drying in the sun.
The Colonies are greatly restricted in their export trade, yet they have their own vessels, but they are not allowed to export their products, especially those needed for ship building, such as masts, ship timber, iron, copper, hemp, flax, cotton, indigo, tobacco, tar, potash, skins and furs,—they must all be sent to England and sold there for export in British ships with British sailors, and where there are English Trading Companies, as in the East Indies, the Colonies cannot trade directly. In 1765 the trade with the Spanish and French West Indies was forbidden, but the results were so bad that this restriction was removed. The Colonies ship food stuffs to the Portuguese Sugar islands, meal, butter, meat, grain, wood and timber for house building etc., and bring back Molasses, from which Rum is made. Trade with the Spanish Americas is contraband, but the Colonists run the risk for the sake of the hard money it brings. Great Britain in 1766 established two free ports in the West Indies, one in Jamaica, the other in Dominica, the French have one in St. Domingo, the Dutch one in St. Eustache, the Danes one in St. Thomas,—the English want to prevent the contraband trade with Spain, but have made the restriction that foreigners can receive all goods free of duty, but must sell only for cash, and not in exchange for other goods.
Colonial shipping is important through the trade with the Spanish and French West Indies, the English Sugar islands, and the fisheries. It deals with the regions south of Cape Finisterre, with Africa, the Canary and other islands, and in British ships with Portugal, Cadiz, Malaga, Marseilles, Leghorn and Naples, and it might deal with Turkey. It carries the surplus products of the fisheries, grain, flour, timber, sugar and rice. The trade with Portugal is restricted because all its wine must be brought by way of England, so only salt as ballast is brought back. Sugar is the only cargo which the Colonial shipping can carry and sell through Europe. England reserves the right to import and reship American products, yet it sells more than three million pounds and Ireland and Scotland two million pounds sterling of products in America. Hard money is rare in the Colonies, and is higher in price than in England. An English shilling is 18 pence colonial, as against 12 pence in sterling. A Guinea is 34 shillings, on account of its convenience for exchange for goods. Spanish pieces of eight, worth in England 4 shillings 8 pence, are worth in the Colonies 7 shillings 6 pence, and gold pistoles have fallen to 27 shillings, because they are so often filled with base metal. A credit on London costs 175 p. c., that is 1 English pound sterling 1¾ in Provincial currency, but the price rises and falls, par is 133⅓, but it often goes up to 166⅔ p. c. During the late war par was as low as 125, because England spent so much money and so much was brought over by English soldiers,—and it varies in different Colonies. The Colonies have Paper-bills, Bills of Credit and Currency, issued by the authority of the Assemblies which bind themselves to redeem them,—from £5 down to 1 shilling, but they are not good outside the Province that issues them. It is used to raise large amounts for pressing needs, as in the French War to pay the soldiers, arm and clothe and feed them in the field. Sometimes the money is raised by currency bills which are taken in payment of taxes etc. and are cancelled on return to the Treasury office. This was copied from the English Exchequer Bills introduced in the reign of William Third by Act of Parliament, but the English bills carry interest, and those of the Colonies do not. Another sort of currency is issued to meet the demand for money on loan at interest,—the current rate is 6 p. c., but these loans are made at 5 p. c., and the borrower must pay one tenth of the principal annually. Thus the Colony can supply the means of helping farmers to buy cattle, agricultural implements etc. and thus improve the land. The issues were made too freely in some Colonies, and fell 15 to 20 p. c. and even more in the market. All the Colonies used paper currency, until in some the English government restricted its issue by law to a fixed amount. The Mother Country did this to protect its trade from suffering loss. Pennsylvania restricted and regulated its issues also. The question has been much disputed as to whether such issues are advantageous or injurious, but it is still undecided. The taxes in the Colonies are very light,—in Pennsylvania and Virginia there is a tax payable in rent at a very low rate to the Proprietor in the former, to the Crown in the latter Colony, all other taxes are assessed by authority of the Assembly,—generally a land tax, of 6, 12, 18 pence up to 2½ shillings on the pound of rent, and incomes of professions and offices are taxed. There are no taxes on exports and imports or excise. There is a small light house tax on shipping. The Stamp Tax acts met universal opposition,—the Colonies claimed the right to deal with their own finances,—they had accepted all other Acts of Parliament touching their manufactures and trade, limiting their freedom, but these did not affect them as much as this direct attack on their purses. The Colonists would not admit that Parliament had the right to tax them. They claimed to be English citizens, and that no English community could be taxed without its own consent, that is through its representatives in the House of Commons, but the Colonies have none,—such as the Scotch have,—but only their own Assemblies,—there only can taxes be legally levied. Their money should be used to pay their own debts, not the national debt of Great Britain. The last war put a heavy debt on all the Colonies,—this ought to be first paid. The Colonies maintained at their own expense, 25000 men against the French, costing each Colony yearly 20, 30, 50 and more thousands of pounds,—when this debt is paid, the Crown would have the right to require the Colonial Assemblies to raise a similar loan. All the Colonies were unanimous on this point, and for the first time met through their delegates in a Congress called to object to the Stamp Act, and this they did on the right of English citizens to petition against any measure they think wrong, and this right is ensured to any number, whether it be 2, or 100 or 100000.
There are few fortified places in America. Philadelphia is quite open to attack, and has only one Battery on the river, to protect the city against invasion. There are a few forts to protect the settlers from the Indians. The Provinces have their own militia, maintained at their own cost,—the King appoints the officers. New England has the largest body of militia, and the little forts are manned by these troops under the King's commanders. There are English regiments in North America garrisoning the large forts,—these are paid by the Crown. The English like to serve in America, for they are paid in English sterling and are supplied by the local authorities with provisions. The conquest of Canada is advantageous alike to the English nation and to the Colonies, for much of the expense of maintaining troops and forts is no longer required. England supported 25000 men in the Colonies, and the Colonies as many more in the last war. The royal rule in America, when in harmony with the Colonies, is inexpensive in the older Colonies, for the King's Cabinet rules by a stroke of the pen. The Colonies are well pleased that France handed New Orleans over to the Spanish. The Indians are sworn foes of the Spanish, who are neither so intriguing nor so industrious as the French, and hence England can keep on better terms with the Indians.
The general agreement of the Colonies as shown in relation to the Stamp Act, is the more noteworthy, as the Colonies have generally been jealous of one another. There are many disputes between them as to their borders, rivers, trade etc. If the Colonies were entirely independent, they would soon be at war with one another. Only the protection of the King and his authority prevents open outbreaks. This jealousy increases with the growth of the Colonies. Pennsylvania gets along best, for it leaves all trade both import and export open to all other Colonies, only making such restriction in its own favor as may be needed to meet restrictions laid on its trade by other Colonies, but all laws of this kind require the royal approval.
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