Introduction
“The Currency of Empire” by Jonathan Barth explores the essential role that money, particularly silver and gold, played in the formation and functioning of England’s American colonial project in the seventeenth century. The book posits that money was the prime mover of English imperial actions, including colonization, trade regulation, and changes in colonial administration. It also argues that money was a chief catalyst for colonial resistance against the mercantilist order imposed by England, leading to significant tensions between the empire and its colonies.
Silver, Mercantilism, and the Impulse for Colonization
In the seventeenth century, England’s commercial and imperial interests were tightly intertwined. The acquisition and control of silver and gold were central to England’s overseas activities. These metals financed armies, navies, and bureaucracies, enabling the state to exert its influence globally. Mercantilist thought, which emphasized a favorable balance of trade to increase the nation’s supply of precious metals, guided English economic policies and colonial endeavors.
Colonies were crucial assets in this mercantilist system. They provided raw materials and commodities that England would otherwise have to import, thereby improving the trade balance. Colonies also served as markets for English manufactured goods. The goal was to ensure that wealth, particularly in the form of silver and gold, centered in England. However, this created economic tensions, as colonies sought to retain wealth and develop their economies independently.
The First Decades of English American Settlement, 1607–1639
The early years of English colonization in America were marked by significant challenges and adjustments. The initial settlements, such as Jamestown in 1607, struggled with harsh conditions, conflicts with Indigenous peoples, and economic instability. The discovery of profitable cash crops like tobacco eventually provided the economic foundation for these colonies.
The mercantilist policies implemented by England aimed to control colonial trade and ensure that the colonies contributed to the wealth of the mother country. The Navigation Acts, for example, restricted colonial trade to English ships and required that certain goods be shipped only to England. These regulations were designed to ensure that the economic benefits of colonial production flowed back to England.
Monetary Upheaval, Recovery, and the Dutch Infiltration, 1640–1659
The mid-seventeenth century was a period of monetary upheaval and recovery in the English colonies. The English Civil War (1642–1651) disrupted trade and economic stability. The colonies faced shortages of currency, leading to the use of various substitutes, including tobacco and commodity money.
The Dutch played a significant role in the economic life of the English colonies during this period. Dutch merchants infiltrated colonial markets, providing much-needed goods and currency. This infiltration led to conflicts between English and Dutch interests, culminating in the Anglo-Dutch Wars (1652–1674). The English sought to assert control over colonial trade and reduce Dutch influence, ultimately strengthening the mercantilist policies that governed the empire.
Mercantilism, Mints, Clipping, Smuggling, and Piracy, 1660–1674
The restoration of the monarchy in 1660 under Charles II brought renewed focus on mercantilist policies. The English government sought to strengthen its control over colonial trade and currency. Mints were established in the colonies to produce coinage, but issues like clipping (the shaving off of small amounts of precious metal from coins) and counterfeiting persisted.
Smuggling and piracy also became significant problems. Colonial merchants often circumvented restrictive trade regulations by engaging in smuggling. Pirates, operating in the Caribbean and along the American coast, further disrupted legitimate trade. The English government took measures to combat these activities, but enforcement was challenging given the vast distances and limited resources.
Empire in Crisis and Flux, 1670–1677
The late seventeenth century was a period of crisis and flux for the English empire. Economic and political tensions between England and its colonies intensified. The colonial economies were growing, but they remained heavily dependent on trade with England. Many colonists resented the restrictive mercantilist policies that limited their economic opportunities.
During this period, conflicts with Indigenous peoples, such as King Philip’s War (1675–1676), further destabilized the colonies. These conflicts strained colonial resources and highlighted the need for a more coordinated imperial policy. The English government responded by tightening its control over the colonies and increasing its military presence.
Showdown in English America, 1675–1684
The period from 1675 to 1684 saw significant confrontations between the English government and colonial interests. The Glorious Revolution of 1688, which resulted in the overthrow of James II and the ascension of William and Mary, had profound effects on the colonies. The new monarchy was more sympathetic to colonial concerns, leading to a relaxation of some mercantilist policies.
However, the underlying tensions between the desire for colonial autonomy and the need for imperial control persisted. Colonial assemblies asserted more power, often clashing with royal governors appointed by the crown. These conflicts set the stage for the revolutionary sentiments that would emerge in the eighteenth century.
Economic Rebellion, Competition, and Growth in English America, 1680–1685
Economic growth in the colonies continued to fuel resistance to mercantilist policies. Colonial merchants sought greater freedom to trade with other nations, while English authorities attempted to maintain control. This period saw increased competition among the colonies themselves, as they vied for economic advantage.
The growth of the colonial economy was accompanied by social and political changes. The rise of a colonial elite, composed of wealthy landowners and merchants, challenged the traditional power structures. This elite sought greater influence in colonial governance and pushed back against imperial restrictions.
Revolutions of 1685–1689
The revolutions of 1685–1689 marked a turning point in the relationship between England and its colonies. The Glorious Revolution in England had a profound impact on colonial politics. The overthrow of James II and the establishment of a constitutional monarchy led to changes in colonial governance.
Colonial assemblies gained more power, and there was a shift towards greater self-governance. However, the fundamental economic relationship between the colonies and the mother country remained unchanged. The colonies continued to be seen primarily as sources of raw materials and markets for English goods.
Reconstructing a Mercantilist Empire, 1690s
The 1690s were a period of reconstruction for the English mercantilist empire. The English government sought to strengthen its control over colonial trade and ensure that the colonies contributed to the wealth and power of the empire. New regulations and policies were implemented to tighten control over colonial commerce.
The Board of Trade, established in 1696, played a central role in managing colonial affairs. The board sought to standardize colonial governance and ensure that the colonies adhered to mercantilist principles. These efforts aimed to create a more cohesive and efficient empire, capable of competing with rival European powers.
Epilogue: The Grand Settlement
The book concludes by examining the “Grand Settlement” of the early eighteenth century, which sought to stabilize and consolidate the English empire. This settlement involved a series of treaties and agreements with Indigenous peoples, European powers, and colonial governments. The goal was to create a stable and prosperous empire, capable of sustaining its economic and political interests.
The Grand Settlement reflected the ongoing tension between the desire for colonial autonomy and the need for imperial control. It highlighted the complex and dynamic nature of the English empire, driven by the interplay of money, power, and economic interests. The legacy of these seventeenth-century developments would continue to shape the trajectory of the English colonies and the broader Atlantic world.
Conclusion
“The Currency of Empire” provides a comprehensive analysis of the pivotal role that money played in the formation and functioning of England’s American colonial project in the seventeenth century. Through a detailed examination of the economic and political dynamics of the period, Jonathan Barth sheds light on the complex and often contentious relationship between the English government and its colonies. The book underscores the importance of understanding the economic foundations of empire and the ways in which money shaped the course of colonial history.
