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The problem of the decreasing money supply was compounded by the Currency Act of September 1764, which ended the practice of individual colonies being able to issue their own paper money.
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The Currency Act was driven by British merchants and creditors who worried that colonial paper, subject to no regulation or standardization, would eventually prove damaging to their investments. But what it really did was further slow an already sluggish American economy.
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In response to the Sugar Act, colonial merchants started getting together, comparing grievances, and sending petitions back to England asking the ministry to reconsider their decisions.
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Now most of these petitions made purely economic arguments, but a few made the further point that parliament did not really have the right to tax the colonies because the colonists were not represented in parliament, and no Englishman was required to give up his property involuntarily.
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Now we should pause here a second to consider this idea of property and taxation.
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The thing we need to keep in mind is that jealously guarding your property from unjust taxation was not just about being greedy. Well, maybe it was a little bit about being greedy. But mostly, it was about the belief that property represented more than just economic wealth. It was also the fundamental guarantee of pol...
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This, as you'll recall, was one of the central questions that helped spark the English Civil Wars. Could Charles I simply assert his right to the property of his subjects without their consent? The answer turned out to be no. This was something Englishmen took really, really seriously, and the colonists were nothing i...
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But once it had been established that only Parliament could levy taxes, a hidden question lingered.
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A question that went to the heart of the rising tension between the colonists and the mother country.
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Did parliamentary control of taxation mean that literally only Parliament could levy taxes?
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Or, was Parliament's control of taxation simply a manifestation of the broader point that you were only subject to taxes levied by a body within which you are duly represented?
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Because it's not like the colonists didn't pay taxes, they did.
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But those taxes were levied by the local colonial assembly, which represented the property interests of each colony.
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The problem, of course, is that parliament and the ministry believed that this had been a practical expedient that had now run its course, and it was time for the real authority, parliament, to step in, while the colonists believed that this was all rooted in their long-established rights as Englishmen.
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The divergence of opinion about who had the right to tax who in the American colonies would become the central question in the run-up to the revolution. To wit, no taxation without representation.
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But if the colonists were hoping for a redress of their grievances in 1765, they were badly mistaken.
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Also badly mistaken was Grenville's Ministry, who thought that they would be able to continue decreeing new taxes without further pushback.
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Paper used for contracts, customs receipts, handbills, newspapers, everything.
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This stamped paper would come from England and be distributed in America by a certified agent.
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Now of course, a version of the Stamp Act already existed in Britain.
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But it was a novelty in the colonies, and one that threatened to worm its way into every aspect of life. No one would be able to avoid it.
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Rumors had been spreading all through 1764 that something like the Stamp Act was on the way.
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And when word of its passage came in the spring of 1765, the colonists were ready to fight it tooth and nail.
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American indignation over the Stamp Act found its first and most eloquent expression in the Virginia House of Burgesses, probably the most aghast of all the colonial assemblies.
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At the end of May, on what happened to be his 29th birthday, a young attorney and freshman member of the House named Patrick Henry gave a rather inflammatory speech asserting that colonial assemblies had the exclusive right of taxation.
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At which point he was cut off by cries of treason by conservative members who thought they knew where this was headed. But the dramatic Henry, Riley concluded, George III, may he profit by their example.
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He then supposedly wrapped this up by saying if this be treason, make the most of it, but it is likely that the final bit is apocryphal.
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The next day, Henry and a cadre of young and more radically inclined Burgesses push the Virginia Resolves through a sparsely attended session.
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The Resolve were a set of five resolutions that staked a defiant colonial position. They went like this.
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First, when the colonists emigrated to America, they brought with them all their rights as Englishmen.
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Second, the Virginia Colonial Charter granted by King James explicitly stated that colonists would be treated as if they lived in England.
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Third, that the right to self taxation is the distinguishing characteristic of British freedom,
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And that every attempt to vest such power in any person or persons whatsoever other than the General Assembly aforesaid has a manifest tendency to destroy British as well as American freedom.
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Now although the fifth resolve followed logically from the first four, it was too radical for the House of Burgesses, and a conservative opposition rallied back the next day and overturned it.
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But the first four resolved remained officially on the books, and the fifth one leaked out to the rest of the colonies by unofficial reports and correspondence.
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The Virginia Resolves circulated through the colonies over the summer, and most of the other colonial assemblies began to pass similar declarations.
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Meanwhile, up in Massachusetts, events took a far more extreme turn, and we will find our first injection of mob violence into the dispute.
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As I said, the way the Stamp Act crisis unfolded in each colony was often driven by political divisions unique to each colony.
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And this was clearly the case in Massachusetts, where the flames were fanned by a long-standing rivalry between Lieutenant Governor Thomas Hutchinson and the on-again, off-again political alliance of erratic attorney James Otis Jr. and soon-to-be-professional agitator Samuel Adams.
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Beginning back in 1764, Adams and his friends began to form committees of correspondence throughout Massachusetts, whose job it would be to share information and ideas and responses amongst the various towns. Adjacent to and overlapping with these committees
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We're semi-clandestine organizations of artisans, shopkeepers, and traders that soon consolidated into the famous Sons of Liberty.
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So when official news of the Stamp Act hit, along with the news that the hated Hutchinson's brother-in-law, Andrew Oliver, had been named stamp distributor, the burgeoning populist machine went to work. They were not going to take this lying down.
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By the middle of August 1765, the time for plotting was over, and the time for action was at hand.
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Martialing the loosely organized mobs of Boston to provide the shock troops, the radical opponents of the Stamp Act hung an effigy of Andrew Oliver in Boston on August the 14th.
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When the sheriff came to take it down, he took one look at the size and disposition of the mob and said, forget it, I'm outta here.
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As darkness fell, the mob moved to some offices located on a dock that they believed Oliver was planning to use as the stamp distribution hub, and they smashed the offices to bits. Then they moved on to Oliver's home.
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When they got there, they beheaded the effigy, ritually stamped it into the ground, get it? Stamp act? These guys were not without a sense of humor.
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And then they pushed their way into Oliver's home and smashed the place up. Oliver himself, of course, had been warned to stay away. The mob did its work and then retired.
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The next day a small delegation met with Oliver and suggested that he resign his commission, and Oliver agreed that yes, I think that would be for the best.
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One of those houses was actually only being rented by the intended target, and when the mob arrived they found the much distressed owner begging them to leave the house alone.
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So, now good and drunk, the mob moved on to the big finale, the home of the hated Thomas Hutchinson, a home that by all accounts was the largest and grandest in Massachusetts.
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The mob broke in and methodically destroyed everything.
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But though this all seems like the work of out-of-control drunks, it was in fact highly organized, and all things considered highly disciplined and the destruction did not spread beyond the specified targets.
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So here we have two of the most important colonies, Virginia and Massachusetts, taking the lead in strenuously opposing a law that wasn't even technically to go into effect until November the 1st.
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Clearly, there had been some kind of political miscalculation back in England.
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But if anyone wanted to blame Grenville, it was already too late. Because in July, he was forced out of the ministry, not so much because of his colonial policies, but because of infighting within and around the royal family.
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He was succeeded by Lord Rockingham, who entered office in July 1765 and immediately started looking for ways to get out from under his predecessor's colonial policies.
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Especially after reports of the riots in Boston started filtering in, because you can't simply let a mob dictate policy.
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And you certainly can't let the colonists walk away thinking Parliament has no right to tax them.
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As Rockingham's weak and divided ministry groped for a solution, colonial anger continued as high-minded rhetorical appeals were joined by, let's call them less high-minded mob demonstrations.
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It all culminated in October, what we now call the Stamp Act Congress.
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The Massachusetts legislature had sent out a circular letter calling for a pan-colonial assembly to discuss a coordinated response to both the sugar and stamp acts.
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In the end, nine colonies sent delegates to meet in New York City. From Massachusetts, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania, Delaware, Maryland, and South Carolina.
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Virginia and Georgia would have almost certainly been among them, but their colonial governors had refused to allow their respective assemblies to convene in order to select delegates.
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The Stamp Act Congress met on October the 7th, and over the course of their deliberations they started discussing an idea that will help define the next round of the fight between Britain and her colonies, the distinction between internal and external taxation.
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The theory was that parliament had no right to levy direct taxes for the purposes of raising revenue. Levying those sorts of internal taxes were the sole right of the colonial assemblies.
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But the delegates were willing to grant that Parliament have the right to levy external taxes for the purposes of regulating trade.
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Both the Sugar Act and Stamp Act would be classified as internal taxes because both were explicitly designed to raise revenue, not regulate trade.
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This distinction was a nice formulation that would work for the present crisis, but as we will see next week when Charles Townsend devises a way to test the theory, it proved to be a distinction that no one really recognized.
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The Stamp Act Congress concluded by drafting a 14-point Declaration of Rights and Grievances, which opened by stating that the colonists owed Parliament all due subordination, but that they possess the same rights as any Englishman, and that direct taxes could only be levied by the colonial assemblies.
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Was a remarkable bit of unity from a group of colonies that under normal circumstances would have agreed only that they disagreed about everything.
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The Stamp Act Congress broke up on October the 25th, 1765, just as the Stamp Act itself was about to take effect.
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Meanwhile, just down the street, a group of merchants in New York City got together and agreed to a limited non-importation agreement that was to endure as long as the Stamp Act was in effect.
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This idea soon spread to other colonies, and merchant groups in the major cities agreed not to bring in any British goods until the Stamp Act was repealed.
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But by this point, the non-importation movement was probably unnecessary, as the ministry was already looking for ways to get out from under the Stamp Act.
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But it did provide a first round of practical experience for the merchants because as we will see down the road,
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Non-immortation will become a major component of colonial resistance.
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Practically every single stamp distributor had been confronted and either resigned or agreed not to distribute the stamp paper.
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When parliament reconvened in December, it was already of a mind to do away with this troublesome act, but the big question remained unanswered.
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How do you repeal the Stamp Act without letting the colonists think that they can avoid parliamentary control simply by throwing a collective temper tantrum?
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Because while most MPs agreed that the Stamp Act itself was counterproductive,
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They uniformly believed that parliament had the right to run the colonies however they saw fit. And on that principle, they would not be moved.
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As Parliament debated the question, the Americans suddenly won a powerful ally in the Commons. Former Prime Minister William Pitt.
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Though he was on the back end of his life and career, the charismatic pit still had a spark, and he launched a fierce denunciation of the ministry and openly praised colonial resistance.
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This led to a famous exchange with George Grenville, who still sat as an MP.
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The incredulous Grenville asked Pitt when was it exactly that the colonists had been emancipated from parliamentary control, to which Pitt replied, well when is it exactly that we made them slaves?
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In the midst of this debate, Parliament called an influential American agent to testify as to the mood of his countrymen with regards to the Stamp Act. None other than Benjamin Franklin.
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Franklin was easily the most famous and most respected American pretty much ever, and he was basically the first colonial that Europeans took seriously.
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He has often been called the first American, and I sometimes like to call him the founding grandfather, as he was a generation older than the men who will become known as the founding fathers.
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Born in 1706, Franklin skipped out on a printing apprenticeship to an elder brother at the age of 17, started over from scratch in Philadelphia, and through wit, guile, and hard work, soon established himself as the leading printer in the city.
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By passion, he was an intensely curious polymath who was interested in everything.
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A passion that eventually led him to famously dabble in electricity.
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He soon not only proved that lightning was in fact made of electricity, but ever driven by his practical sensibilities, he invented the lightning rod to protect houses from strikes.
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It was his scientific work that earned him the attention of Europe.
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Now, it would take 20 episodes to run through the endlessly fascinating life of the good Dr. Franklin.
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For our purposes, we should skip ahead to 1757, when Pennsylvania appointed him to serve as their agent in London.
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At that point, Franklin moved to England, and pretty much lived there continuously until the outbreak of the revolution.
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By the time of the Stamp Act crisis, Franklin was also officially representing both Georgia and Massachusetts, and when he was called before Parliament, he reiterated the distinction between internal and external taxation.
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Neatly dancing around the few probing MPs who tried to trip him up.
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But for the most part, his testimony was arranged by friends in parliament who very much wanted to ditch the Stamp Act and were looking for an excuse to do so.
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