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 Stamp Act, 1765 – 1772
Another unpopular step England took after the war was to reorganize her defense system in the colonies. The French and Indian War had proved to the British that the colonies could not be depended upon to defend themselves. Some new system had to be worked out in North America, to defend not only the colonies, but also Canada, Florida and the wilderness east of the Mississippi. England decided to leave this task to a standing army of ten thousand British redcoats. Such an army would cost a great deal of money. Taxpayers in England were already paying very high taxes and could not be asked to pay more. Their taxes supported the powerful British navy, which protected the colonies as well as the mother country. It seemed no more than fair that the colonies should pay at least part of the expenses of the standing army in North America. The soldiers were there, after all, for their own protection. Accordingly, the colonies were given a year to raise the money themselves. They were warned that England would have to tax them if they failed to do so. For a year the colonists did nothing. They saw no need of supporting an army they had not asked for and did not want. Since the French forces had been driven from American soil, a large standing army seemed unnecessary. The colonists suspected that the real purpose of the army was to strengthen British control over all the colonial governments. England’s law-making body in London, the British Parliament, finally passed the Stamp Act in 1765. It required the colonists to buy stamps from British tax collectors. These stamps were to be placed on all newspapers, playing cards, dice and almanacs sold in the colonies and also on certain papers having to do with …
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