The Colonial Era 1607-1776

Economic History of the U.S. Econ 1740

The American colonial period was a time when poverty was the norm and wars among nations
were frequent. The early English settlers suffered greatly and had capital losses in the founding of the
colonies. Europe dominated the New World for a long period of time. Great Britain was the nation that
launched industrial revolution in the colonies, in the 18th century. Trade and commerce was very
important in the New World, by the time the American Revolution came around, the material standards
of living in the colonies was very high. The period of 1763 through 1776 the colonies grew apart from
England, establishing distrust, confrontation and ultimately, rebellion.
1900-2009 Growth, Welfare, and the American Economy
Average size of players:
173 pounds in 1902
188 pounds in 1929
238 pounds in 2008

5 biggest players average weight:

184 pounds in 1902
199 pounds in 1929
315 pounds in 2008
LIFE EXPECTANCY BY AGE OF PEOPLE BORN IN U.S.A.:

0
15
45
65
75

1901
49
62
70
77
82

1954
70
72
74
79
84

2000
77
78
79
83
86

2005
77.8
78.6
80.3
83.7
86.9

This is table 1.1. LIFE EXPECTANCY BY AGE IN THE UNITED STATES.

LEFT

the age they arrive in the Americas

RIGHT for the year they are alive

1901: 49 yrs. Old
1954: 70 yrs. Old
2000: 77 yrs. Old
FUN FACTS: Electricity was created between 1900 and 1905 and was in every American home by 1960.
Radio created around 1920 and in every home by 1960.
Refrigerator created around 1920 and in every home by 1960.
1903: first motor driven flight by the Wright Brothers.

1969: Neil Armstrong first man to walk on the moon.

1950: The United States of America is declared the most powerful nation in the world, also with the highest standards of
living. QUOTE BY WINSTON CHURCHILL IN 1956: The longer back you look, the farther into the future you can see.
1550-1750 Founding the Colonies

1500 --

African American slaves replace Native Americans in the West Indies In the 1500's Portugal and Spain became involved
in the African slave trade, they used slaves to work sugar plantations in the West Indies. By 1550 the number of African
slaves increased dramatically, replacing the number of Indians in the West Indies.

1565 --

St. Augustine established by the Spanish Pedro Menndez de Aviles landed on the shore of what is now called Matanzas
Bay and began the founding of the Presidio of San Agustin. This would be called St. Augustine, Florida

1585 --

Roanoke Island settled by the English Sir Walter Raleigh Roanoke colony established the English settlement in 1585.
Roanoke Island is one of the three oldest surviving English place-names in the U.S.

1598 -- New Spain extends into what is now New Mexico The monarch of New Spain was also the king of Castile, his highest
appointed minister who was actually resident in Mexico was from 1535 the viceroy, and who was a resident in Mexico City.

1600 -- Horses from Spain first used by the Indians The Indians got their first horses from the Spanish. A lot of the horses were
wild and got away; the Indian didnt do much with the horses. It wasnt till much later on when they started too ride them.
1607-1609 Jamestown, Quebec, Sant Fe- Settled by the English, French, Spanish Jamestown was Americas first permanent colony,
before the pilgrims landed at Plymouth 13 years ago. The government, language and beliefs of these early Virginians are all
part of the United States heritage today.

1661 -- Slavery in Virginia allowed by law Indentured servants, who agreed to work for a stated number of years in return for
their passage to the New World, were a convenient source of labor for the American colonies. White servants, after working
out their period of indenture, often rose to respected positions in the community. However the blacks were considered
servants for life.

1682 -- Mississippi valley claimed by France The lower Mississippi valley remained strong even after the cession of Louisiana to
Spain, the retrocession to France in the 1800s and the Louisiana purchase in 1803 effectively making the state of Louisiana
unique for its colonial past.

1750 -- Over 1 million people living in the 13 colonies, slavery existed in every colony. Slavery in the U.S existed in the 18th and
19th century, slavery had been practiced in British North America from early colonial days, and was recognized in the
thirteen colonies at the time of the declaration of independence in 1776.

1614-1775 Colonial Economic Activities

17th Century A mojirty of wheat and flour was permitted exports

1614 --Virginia began exporting tobacco- Cash crops started when Virginia exported tobacco to England

1631 -- 30-ton sloop was completed in Boston Proof of the importance of shipbuilding.

1634 -- Tobacco became major export; dominate export in Maryland -English was relief to have Colonies as a source for the
supply of tobacco instead of having to trade with Spanish.
1648 -- Shoemakers incorporated as a guild Artisan are people who specialized in what they do. Artisans do the job all by
themselves, skill is passed down.
1651 -- Navigation Acts Restricted Colonial exports and trade to only England.

1695 -- Rice production in Virginia, and South Carolina Rice became the second biggest agricultural good
1700 -- New England exceeded 2,000 exclusive fishing boats
Largest mills grind 100 bushels of grains per day

 Rice was established crop areas around Charleston

18th Century Slaves purpose was for farm work. Plantation owners did not need to pay the slaves, only the people who looked over the

slaves in the plantations

.
1718 -- Tailors and cordwainers artisans
1720 -- New York shipbuilding industry regrew. Rapidly recovered from Navigation Acts blow
1740 --

Demand and prices for fur rose

1743 -- Indigo introduced by Eliza Lucas Rice and indigo became ideal because of conditions where rice could not be grown
indigo could didnt need special assistance to made

.
Mid-18th
Century

Mills were water powered and used along middle and north Atlantic

1770 -- 45% of population was black Slavery was the main source of labor
1775 -- One-third of ships in British Merchant Marine were American manufactured
1775 -- Whalers ranged more than 300 vessels sailed from Massachusettss port.
End of18th
Century

90% of Americans earned a living through farming

1500-1800 The Economic Relations of the Colonies The economic relations of the colonies with England and other overseas areas
are a central part of the story of economic progress in the colonies

The Early Navigation Act Directed primarily at prohibiting the shipping of American products in Dutch vessels.
1. All Trade of the colonies was to be carried in vessel that was English build and owned, commanded by English captain,
and manned by a crew which majority were English.
2. All foreign merchants were excluded from dealing directly in the commerce of the English colonies.
3. Certain commodities produced in the colonies could be exported only to England

Colonial Commerce . The colonies dominated the great volume of coastwise commerce and in terms of money value of
products exchanged; coastal commerce was less then overseas trade w/Britain and WestIndies. In the colonial trades between
town and country, the town merchant to extend credit to farmers were made for the purposes of obtaining equipment, tools,
and supply for day-to-day existence.
English Mercantilism and the Colonies The world was influenced by the mercantile economic system:

The mercantilists was to achieve power and wealth for the state
Generate an inflow of gold or silver through trade
The difference between import/exports was paid w/gold or silver and was called specie
They believed that the power will be effective by strict enforcement or legislation regulating economic life

Money and Trade

Commodity Money The earliest forms of money was wampum, black and white polished beads made from clam shells. In
Maryland and Virginia, tobacco was the principal medium of exchange. Other colonies used "country pay": furs, cows, corn,
wheat, beans, pork, fish, liquor, etc. Used commodity money bring stored problems and quality problems.
Coins, specie, and paper money : The gold and silver was the more important overseas accept forms of pay. Massachusetts
was the first colony to mint coint in 1652, and in 1690 was the first to issue paper money. Bills of Credit were also used.
Exports, Imports, and Markets Great Britain was the main overseas region to receive colonial expo The colonies export to
empire" tobacco, rice, indigo and import: sugar, molasses an rum. England receive 56% from colonies and exports 80% of
total supply.
New England

U.Kingdon
South.Eur.
West.Indies
Africa
Information in %

Imp.
68
2
32
0

Exp.
18
14
34
4

1500-1775 Economic Progress and Wealth

--

Middle
Colonies
Imp.
Exp.
76
23
3
33
21
44
0
0

Upper South

Lower South

Imp.
89
1
10
0

Imp.
86
1
13
0

Exp.
83
9
8
0

Exp.
72
9
19
0

1595 -- The Dutch introduced the flyboat . It became obvious that the flyboat could be used favorably in certain bulk

trades where the danger of piracy was low.

1630-1670 Tobacco output per worker doubled The workers were starting to be familiar with tobacco, and they found
faster, easier ways to grow tobacco. 100 years before the Revolution - the real costs of shipping were almost halved.
1601-1740 Northward diffusion of the horse The horse imposed dramatic changes on the daily lives of the North

American Indians. It changed their diets, as they were able to go further and be faster at hunting. It was used as
a form of personal property.

100 yrs before

Revolution

The real costs of shipping were almost halved . Shipping costs were improving.

1675-1775 Productivity gains countervailed and freight costs were cut in half They were building larger ships that could

carry larger loads and required less workers to look after their assigned loads.

1700-1775 Insurance rates were halved, and round-trip voyage declined This was due to piracy beginning to decline.

Also, ship speed improved and ships did not spend too much time in ports.

1st and 3rd Quarter

of 18th Century

1st Half of 18th

Century

Average output per farm increased by 7% This helped increase the productivity rate.

Combined output per unit of land, labor, and capital advanced at a rate of .1 to .2% this meant that the
productivity rate was starting to rise at a slow rate, but by the end of the 18th century, it was really noticeable.

2nd Half of 18th

Century

The productivity rate rose 8% - This was a milestone for Colonial America. Shipping improved through
decreasing time in ports and building larger ships.

1719-- Carolinas Assembly helps the fight against Piracy Carolinas Assembly appropriated funds to support private

vessels in the hope of driving the pirates from their seas.

1740-- Piracy had been eliminated from the western Atlantic. This meant that insurance rates were dropping and
the space that was once used for armor against pirates could be used for more cargo. Growing wealth
concentration did not occur among free whites in the 13 colonies as a whole.

1750-- Armed Ships

Vessels weighing more than 100 tons were always armed, and even small vessels usually carried some guns near Jamaica.

1675-1775 The Dutch helped the Colonial America improve their productivity rate. Dutch shipping displayed many of the

essential characteristics of design, manning, and other input requirements that were found on the most
advanced vessels in the Western Atlantic.

1770-- Colonial staples increased in requirement - colonial staples such as pitch, tar, lumber, rice and other space-

consuming exports were still commanding more than double their domestic price in normal English and
European markets.

1763 -- Three Crisis Revolt - For financial, administrative, and political reasons, the Crown and Parliament in 1763

launched a new order .

On October 14, 1774, the Continental Congress provided a list of grievances:

1) Taxes have been imposed upon the colonies by the British Parliament.
2) Parliament had claimed the right to legislate for the colonies.
3) Commissioners were set up in the colonies to collect taxes.
4) Admiralty court jurisdictions had been extended into the interior.
5) Judges tenures had been put at the pleasure of the Crown.
6) A standing army had been imposed upon the colonies.
7) Persons could be transported out of the colonies for trials.
8) The port of Boston had been closed.
9) Martial law had been imposed upon Boston.
10) The Quebec Act had confiscated the colonists western lands .