Under the economic system of mercantilism in Colonial America, all trade was controlled and protected by Great Britain for its own benefit. Great Britain dominated trade within and outside the colonies, taking profits, goods, services, and currency to increase its own wealth. Colonists could only export goods to and import goods from Britain using British ships and crews. Colonists earned money through various jobs like farming, crafts like blacksmithing, and professions like law and medicine. While most colonists were first farmers with small plots of land, they also earned wages for labor or services and purchased goods rather than bartering. Money took various forms including British and colonial paper currency as well as commodity currencies like tobacco. Some colon

1. Money in the colonies
Could you live like this?

2. The overarching
economic system for
Colonial America:
Mercantilism

3. Mercantilism
The belief that a nation’s wealth will be
increased by controlling and protecting all
parts of trade for the benefit of the nation.

4. What the heck does that
mean?
Good question! Glad you asked.

5. “The belief that a nation’s wealth will be
increased by controlling and protecting all parts
of trade for the benefit of the nation.”
“nation” means: Great Britain
“wealth” means: money/goods/profits
“controlling and protecting”: Means: GB
dominates all goods/services/cash in the
colonies.

6. Take Two:
Great Britain gets to be in charge of all trade
inside and outside of Colonial America; it
gets to take over all profits, goods, services,
cash (gold and silver) and use them/hoard
them for the benefit of Great Britain.

7. So this is what mercantilism looked like for trade of goods...

8. Colonists could export goods only to Britain.
Colonists could only import goods from
Britain. Ships were only British. Crew on the
ships was only British...
British monopoly

9. So what do colonists do
for money?
First question: Why do they need money?

10. and what is that money?
that’s the second question...

11. There was no one “money” used!
Britain used: Pounds;
Shillings; Pence.
Colonies used those
words, but not the
value.
Cash: Paper money
and coins. (Also called
specie)
Commodity money:
Tobacco, beaver pelt,
wampum
(shells/beads/bones)

12. Colonies issued their own
Paper money;
see:
http://en.wikipedia.org/
wiki/Early_American_
currency for examples
Coins: Colonists used
coins from all over the
world, but didn’t really
make their own. But
they had to pay tax in
British specie (cash).

13. So what were the jobs to
earn money?
That’s the third question...

14. At first, everyone did
everything
From making furniture to weaving cloth to
growing food, to just living!

15. But specialization is
needed
People get settled, stable, and start to want
better quality goods and services.

16. Jobs abound:
Blacksmith
Cooper (barrel maker)
Silversmith
Barber
Coroner
Weaver
Mason/Bricklayer
Gunsmith
Locksmith
Lawyer
Printer
Apothecary (pharmacist)
Wigmaker
Cobbler

17. But everyone was a farmer first
3 out of 4 American
colonists had a farm
5 to 150 acres, with:
● house
● barn
● yard
● fields
Lots of jobs were
farm-based, and the
entire family pitched
in.
Some sold their crops
(cash crop--usually
not edible, but
sometimes…)

18. People needed to get paid
● Labor/services are compensated (paid for) in
wages;
● Goods are purchased not bartered (paid for,
not traded for);
● Goods come from home and abroad;
● Money is needed to measure the value of
goods and services. So an economy forms.

19. Two special cases
Both involve labor...

20. Indentured Servant
A person who promises to trade their labor
for a set period of time in exchange for room,
board and transportation to the colonies.
Usually a poor, white European.

21. Slave
A human being who was captured and
forced into labor for another person. The
slave is sold and is considered property-
owned for life. His or her offspring is owned
too. In the colonies, this person was African.