THE CONTEST OVER PARLIAMENTARY TAXATION, 1763-1773
The Prime Minister responsible for the new colonial policy was George Grenville, who assumed his position in May, 1763, shortly after the final treaty of Paris. Every other member of his Cabinet was a nobleman, Grenville himself was brother of an earl, and most of them had had places in preceding Ministries. It was a typical administration of the period, completely aristocratic in membership and spirit, quite indifferent to colonial views, and incapable of comprehending colonial ideals even if they had known them. To them the business in hand was a purely practical one; and with confident energy Grenville pushed through a series of measures, which had been carefully worked out, of course, by minor officials unknown to fame, during the preceding months, { 29} but which were destined to produce results undreamed of by any one in England.
In the first place, there were a number of measures to strengthen and revivify the Acts of Trade. Colonists were given new privileges in the whale fishery, hides and skins were "enumerated," and steps were taken to secure a more rigorous execution of the Acts by the employment of naval vessels against smuggling. A new Sugar Act reduced the tariff on foreign sugar to such a point that it would be heavily protective without being prohibitive, and at the same time imposed special duties on Portuguese wines, while providing additional machinery for collecting customs. This was clearly aimed at the weak point in the existing navigation system; but it introduced a new feature, for the sugar duties, unlike previous ones, were intended to raise a revenue, and this, it was provided in the Act, should be used to pay for the defence of America.
A second new policy was inaugurated in a proclamation of October, 1763, which made Florida and Canada despotically governed provinces, and set off all the land west of the head-waters of the rivers running into the Atlantic as an Indian reservation. No further land grants were to be made in that region, nor was any trade to be permitted with the Indians save by royal licence. The { 30} Imperial government thus assumed control of Indian policy, and endeavoured to check any further growth of the existing communities to the West. Such a scheme necessitated the creation of a royal standing army in America on a larger scale than the previous garrisons; and this plan led to the third branch of the new policy, which contemplated the positive interposition of Parliament to remedy the shortcomings of colonial assemblies. An Act of 1764 prohibited the future issue of any paper money by any colony, thus terminating one of the chief grievances of British governors and merchants. But still more striking was an Act of 1765, which provided with great elaboration for the collection of a stamp tax in the colonies upon all legal documents, newspapers, and pamphlets. The proceeds were to be used to pay about one-third of the cost of the new standing army, which was to consist of ten thousand men. Taken in connection with the announced intention of using the revenue from the Sugar Act for the same purpose, it is obvious that Grenville's measures were meant to relieve the Imperial government from the necessity of depending in future upon the erratic and unmanageable colonial legislatures. They were parts of a general political and financial programme. There is not the slightest evidence that Grenville or his associates dreamed { 31} that they were in any way affecting the colonists' rights or restricting their liberties. Grenville did consult the colonial agents--individuals authorized to represent the colonial assemblies in England--but simply with a view to meeting practical objections. The various proclamations or orders were issued without opposition, and the bills passed Parliament almost unnoticed. The British governing class was but slightly concerned with colonial reform: the Board of Trade, the colonial officials, and the responsible Ministers were the only people interested.