Illicit traffic during the French and Indian War.—Since the reign of Anne England had not enforced the trade laws strictly. The Molasses Act of 1733 had been practically a dead letter from the date of its passage and the other navigation acts had been frequently violated. Smuggling was winked at by governors and customs officials, who in many cases profited from the traffic. During the French and Indian War the colonies traded extensively with the French West Indies. This was especially galling to England, whose chief weapon against France was control of the seas. Though the colonies in 1756 were forbidden to trade with the French, the colonial skippers evaded the command by shipping goods to the Dutch ports of Curaçoa and St. Eustatius, or to the French West Indies. In 1757 parliament forbade the exportation of food stuffs from the colonies to foreign ports, but the colonials continued to make shipments to the French or Dutch colonies and to bring back cargoes of molasses, sugar, and rum. To stop Dutch trade with the French colonies, Dutch merchant vessels were seized. As the English navy gradually isolated or captured the French West Indies, the colonials found a new method of circumventing the regulations by shipping to Monte Cristi, a Spanish port in Española near the French boundary. A commerce of less importance but of similar nature was also maintained with Florida and Louisiana. In 1760, when the English navy had gained the upper hand, the illicit commerce diminished but did not entirely cease. When Spain entered the war a considerable increase occurred. The naval and military authorities did all in their power to end the traffic with the enemy, for they considered that its continuance meant a prolongation of the war.
Writs of assistance.—To prevent smuggling English officials resorted to the issuance of writs of assistance. These were general search warrants which enabled the holder to search any house, ship, or other property where smuggled goods might be stored. The writs naturally aroused great opposition among the merchants, who claimed that they were illegal. In 1761 when the Boston customs officers applied for the writs, the merchants objected to them. When the merchants' cause was presented before the Massachusetts Supreme Court, James Otis argued that the writs, being general, were illegal and struck at the liberty of the individual. "No acts of parliament can establish such a writ.... An act against the constitution is void." The courts upheld the legality of the writs but Otis's speech did much to arouse and formulate public opinion.
The Parson's Cause.—In Virginia Patrick Henry performed a similar function in formulating public opinion. The speech which made him the leader of the Virginia radicals was delivered in connection with a suit brought by one of the Virginia clergy. Tobacco was the medium of exchange in the Old Dominion and ministers were paid annually 17,000 pounds of tobacco. In 1755 and 1758, the burgesses passed acts which allowed debts to be redeemed at two pence for each pound of tobacco. This worked a hardship upon the ministers, who naturally desired the benefit of the high price of tobacco to compensate them for the hard years when prices were low. The acts were disallowed by the crown in 1759, and the ministers attempted to recover their losses. In a suit brought in 1763 by Reverend James Maury, Patrick Henry appeared for the vestry. Realizing the weakness of his legal position, Henry resolved to carry the jury by an emotional attack upon the king's prerogative. He argued that the act of 1758 was a law of general utility consistent with the original compact between ruler and ruled, upon which government was based, and that the king, by disallowing this salutary act, became a tyrant and forfeited his right to the obedience of his subjects.
REFORMS OF THE GRENVILLE MINISTRY
Economy and reform.—At the end of the French and Indian War, England was burdened with a staggering debt. To build up the resources of the empire, increase the revenues, and protect the dominions were the objects of the ministers of George III. In this program the colonies were expected to play their part. The Bute Ministry planned to enforce the navigation acts, to tax the colonies directly, and to use the colonial revenue to support an army in America. The powers of the admiralty courts were immediately enlarged and commanders of war vessels were authorized to act as customs officials. Soon after Grenville came into office (April, 1763), he ordered customs collectors who were lingering in England to proceed at once to their colonial stations and he instructed the governors to enforce the trade laws rigidly.
Trade encouragement during 1764-1765.—To encourage commerce several important provisions were made during 1764 and 1765. To stimulate the fur business the old duties were abolished and an import duty of only one pence a skin and an export duty of seven pence were levied. To stimulate hemp and flax production bounties were paid on those products shipped from the colonies to England. The bounty on indigo was somewhat reduced but was still sufficient to protect the planters. The duties on whale fins were repealed to the great benefit of Massachusetts. The rice business was stimulated by allowing Georgia and the Carolinas to ship without restrictions to the southward.
The Sugar Act.—Grenville's beneficial measures were more than offset by the Sugar, Colonial Currency, Stamp, and Quartering Acts. The Sugar Act "was a comprehensive measure, whose openly expressed aim was, in the first place to raise a colonial revenue, and in the second to reform the old colonial system both in its administrative and in its economic features." The act confirmed and modified the Molasses Act of 1733. The duty on sugar shipped to the British colonies was raised but that on molasses was lowered. To injure the French island trade, the importation of foreign rum or spirits and commerce with Miquelon and St. Pierre were forbidden. Oriental and French textiles, Portuguese and Spanish wines, and coffee, if brought directly to the British colonies, were taxed heavily, but if shipped from England the duty was low. To protect South Carolina a duty was imposed upon foreign indigo shipped to the colonies. With a few exceptions no drawbacks were henceforth to be allowed, and revenues derived from the Sugar Act were to be paid into the royal exchequer. They were to be kept separate from other moneys and were to be used only for the protection of the British colonies in America.
Stringent regulations were provided for the enforcement of the Sugar Act and other navigation laws. At the option of the informer or prosecutor, penalties for breach of the trade laws might be recovered in any court of record in the district where the offence was committed or in any admiralty court in America. The accused was required to give security for costs if he lost his suit, but if he won his case, he was not entitled to costs if the judge certified that the grounds of action seemed probable. Furthermore in the Molasses Act which was now confirmed, the burden of proof was placed upon the owner or claimant.
Every shipmaster was required to give a bond to land only enumerated goods at European ports north of Cape Finisterre and to possess a certificate from the customs collector at the point of loading. West Indian goods not properly certified were to be treated as foreign goods. Vessels cleared from British ports must contain only goods loaded in Great Britain. This, however, did not apply to salt and Irish linen. Breaches of these regulations subjected the law breaker to severe penalties.
Regulation of Colonial Currency.—Another important measure was the Colonial Currency Act. Lack of specie had compelled the issuance of colonial paper money, and though Massachusetts had retired such issues in 1749, most of the colonies were still suffering from depreciated and unstable currency. To protect the English merchant, parliament passed the Colonial Currency Act which prevented colonists from paying their debts to the home country in depreciated currency and stopped the issues of unsound money. The act caused a shortage of the medium of exchange at the time that the colonists were deprived of the West Indian commerce which had supplied them with specie to settle balances in London. The act produced embittered feeling which paved the way for greater opposition.