Due to the taxes on tea, many of the colonists began drinking coffee or cocoa, or bought tea smuggled in from Holland. Within a few years, the British tea trade with the colonists dropped from 900,000 pounds to 237,000 pounds and in England the warehouses of the East India Company were filled to overflowing. The East India Company was Britain’s largest and most important trading company and to save it, Parliament passed the Tea Act. The East India Company was given a monopoly on tea trade with the colonies — that is, it was the only company allowed to sell tea to the Americans. It was also permitted to sell its tea through its agents directly to retail stores. This plan would cut out the profit made by British and American shippers and importers. Even after the tax had been paid, the British tea could be sold in the colonies at a price far below that of smuggled tea. The British believed they had hit upon the perfect way to solve the troublesome tea problem. The colonists would rush to buy tea at a low price, the East India Company would be saved, the government would collect its tax and everyone would be happy. To the surprise of the British, nothing of the sort happened. The Americans were angrier than ever. The merchants feared that if the direct-selling plan of the Tea Act was successful, England would decide to sell other goods in the same way, and many businessmen would be ruined. It was clear, too, that England had deliberately kept the tax on tea to show that Parliament had the right to tax colonial imports for the purpose of raising money. Leading American lawyers denied that Parliament had such a right. An import tax on low-priced tea was just …
Read More »The Boston Tea Party 1773 -1774
