_The Navigation Acts._--In the first rank among these measures of British colonial policy must be placed the navigation laws framed for the purpose of building up the British merchant marine and navy--arms so essential in defending the colonies against the Spanish, Dutch, and French. The beginning of this type of legislation was made in 1651 and it was worked out into a system early in the reign of Charles II (1660-85).
The Navigation Acts, in effect, gave a monopoly of colonial commerce to British ships. No trade could be carried on between Great Britain and her dominions save in vessels built and manned by British subjects. No European goods could be brought to America save in the ships of the country that produced them or in English ships. These laws, which were almost fatal to Dutch shipping in America, fell with severity upon the colonists, compelling them to pay higher freight rates. The adverse effect, however, was short-lived, for the measures stimulated shipbuilding in the colonies, where the abundance of raw materials gave the master builders of America an advantage over those of the mother country. Thus the colonists in the end profited from the restrictive policy written into the Navigation Acts.
_The Acts against Manufactures._--The second group of laws was deliberately aimed to prevent colonial industries from competing too sharply with those of England. Among the earliest of these measures may be counted the Woolen Act of 1699, forbidding the exportation of woolen goods from the colonies and even the woolen trade between towns and colonies. When Parliament learned, as the result of an inquiry, that New England and New York were making thousands of hats a year and sending large numbers annually to the Southern colonies and to Ireland, Spain, and Portugal, it enacted in 1732 a law declaring that "no hats or felts, dyed or undyed, finished or unfinished" should be "put upon any vessel or laden upon any horse or cart with intent to export to any place whatever." The effect of this measure upon the hat industry was almost ruinous. A few years later a similar blow was given to the iron industry. By an act of 1750, pig and bar iron from the colonies were given free entry to England to encourage the production of the raw material; but at the same time the law provided that "no mill or other engine for slitting or rolling of iron, no plating forge to work with a tilt hammer, and no furnace for making steel" should be built in the colonies. As for those already built, they were declared public nuisances and ordered closed. Thus three important economic interests of the colonists, the woolen, hat, and iron industries, were laid under the ban.