Hutchinson
calculated
the cost
of landing smuggled tea at five per cent.
of landing smuggled tea at five per cent.
Arthur Schlesinger - Colonial Merchants and the American Revolution
2 Lieutenant Governor
Colden ancj Lord Dartmouth exchanged views on the sub-
ject, agreeing in the sentiment that the illicit trade between
New York and Holland prevailed "to an enormous de-
gree. "' "It is well known," wrote Samuel Seabury in
1774, " that little or no tea has been entered at the Customs
House for several years. All that is imported is smuggled
from Holland, and the Dutch Islands in the West Indies. " *
Gilbert Barkly, a Philadelphia merchant of sixteen years'
standing, wrote in May, 1773, of the extensive smuggling
of tea "from Holland, France, Sweden, Lisbon &c, St.
Eustatia, in the West Indies &c. " 5 Smuggling " has amaz-
ingly encreased within these twenty years past," asserted
"A Tradesman of Philadelphia. " * Hutchinson informed
the home government that "in New York they import
scarce any other than Dutch teas. In Rhode Island and
Pennsylvania, it is little better. " T Since smuggled tea was
1 Contemporaries realized this. E. g. , vide "A Tradesman of Phila-
delphia" in Pa. Journ. , Aug. 17, 1774.
1Letters of Hutchinson in Mass. Arch. , vol. xxvii, p. 317; Bos. Gas. ,
Nov. 27, Dec. 4, 1775; N. Engl. Chron. , July 29.
? N. Y. Col. Docs. , vol. viii, pp. 487, 510-512.
4 Free Thoughts on the Proceedings of the Continental Congress . . .
By a Farmer (1774). Also vide Becker, N. Y. Parties, 1760-1776, p. 84,
n. 158.
1 Drake, F. S. , Tea Leaves (Boston, 1884), p. 201.
? Pa. Journ. , Aug. 17, 1774.
'Letter of Sept. 10, 1771; Bos. Gas. , Nov. 27, 1775. Newport prob-
ably ranked next in importance to New York and Philadelphia as a
centre for tea-smuggling. Vide Drake, op. cit. , pp. 194-197.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 248 THE COLONIAL MERCHANTS: 1763-1776
cheaper for the consumer to drink than dutied tea and the
profits of the tea dealer greater, the systematic neglect of
the dutied article in New York and Philadelphia corres-
ponded as much to self-interest as devotion to principle,
and gave fair occasion for the coining of the epigram that
"a smuggler and a whig are cousin Germans . . . " *
The smuggling merchants experienced little difficulty in
getting their teas into America. Notwithstanding all the
regulations of recent years, there were still many secluded
landing places on the extensive coast line and all the tricks
which the mind of a resourceful skipper could invent to
deceive the customs off1cials. 2 There were, furthermore,
customs officials who, from lack of reward from the govern-
ment, did not care to risk "the rage of the people," * or
who, because of the freehandedness of the smugglers, found
rich reward in conniving at the traffic. Colden cited
the case of his grandson, recently appointed surveyor and
searcher of the port of New York, who was given to under-
stand by interested parties that " if he would not be officious
in his Duty, he might depend upon receiving ? 1500 a year. " *
The views of contemporary observers throw some light
on the proportion of imported tea which failed to pay the
parliamentary duty. (JDYf;rP"r Tilltf,llirsOn who seems to
have furnished the brains for the tea business carried on
1 " Massachusettensis" in Mass. Gas. & Post-Boy, Jan. 2, 1775.
*? . g. , filling the interstices of a lumber cargo with tea, carrying
false bills of lading, and the like; private letters in Pub. Rec. Off. :
C. O. 5, no. 138 (L. C. Transcripts), pp. 151-152, 175. Vide the sailing
orders of Captain Hammond for obtaining a tea cargo at Goteborg or
Hamburg and for running it past the customs officials at Newport.
R. /. Commerce, vol. i, pp. 332-333.
* Letters of Hutchinson to Hillsborough, Aug. 25, Sept. 10, 1771, in
Bos. Gas. , Nov. 27, 1775.
4 Letter Books, vol. ii, pp. 370-372.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? COLONIAL PROSPERITY
249
by his SOnS at Boston,
consumption of teas in America was 10. 200 flip^f" nr f"-
528. 000 pounds^1 For approximately the same period, the
amount" of tea that paid the duty was about 320. 000 pounds. 2
Hutchinson's estimate was evidently wide of the mark, for
even Samuel Wharton, who gravely averred that the fron-
tiersmen and many Indians shared the popular habit of im-
bibing tea twice a day, placed the total consumption at a
million and a half pounds less. * The London tea merchant,
William Palmer, judged more dispassionately when he
hazarded a figure about half of that named by Hutchinson,
remarking that Hutchinson's estimate of "19,200 chests
is more than has been hitherto annually imported from
China by all foreign companies. " * Assuming Palmer's
conservative figure to be approximately correct, the con-
clusion would seem valid that in a year, like 1771, marked
by unusually large importations of customed tea, more
than nine-tenths of the tea consumed was illicitly imported. *
The incentive to smuggling existed in spite of the well-
intentioned efforts of the British government. The Towns-
hend act of 1767, although imposing a small import duty of
threepence a pound in America, had removed all British im-
1 Bos. Go*. , Nov. 27, 1775.
1 The amount of dutied tea imported from Dec. 1, 1770 to Jan. 5, 1772
was 344,771 pounds, according to an abstract prepared in the office of the
inspector of imports and exports; quoted by Channing, op. cit. , vol. iii,
p. 128 n.
*" Observations," Pa. Mag. , vol. xxv, p. 140.
4 Drake, op. cit. , p. 197.
6 Hutchinson in 1771 set the figure at nine-tenths for New York and
Philadelphia and five-sixths for Massachusetts. Bos. Gaz. , Nov. 27,
1775. He said elsewhere that the contraband tea consumed' at Boston
came there by way of New York and Philadelphia. Mass. Arch. , vol.
xxvii, p. 317.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? THE COLONIAL MERCHANTS: 1763-1776
port duties from tea exported to America,1 and had thus,
for a time at least, reduced the cost of English tea to the
American consumer below that of the contraband article.
This advantageous situation of English tea could, in the
nature of things, continue only so long as the wholesale
price of the tea in the English market did not go up, or the
price of smuggled fell. The former occurred. The
East India Company, although not permitted to sell at
retail, were permitted to name an upset price at their public
auction sales. Treading the edge of a quicksand of bank-
ruptcy and obliged by the act of 1767 to make good any
deficiency in the revenues resulting from the discontinuance
of certain tea duties, the company sought to recoup its
losses by advancing the upset price of tea. Governor Hutch-
inson wrote to Lord Hillsborough on August 25, 1771: " If
the India company had continued the sale of their teas at 2s.
2d. to 2s. 4d. as they sold two years ago, the Dutch trade
would have been over by this time; but now that the teas
are at 3s. the illicit traders can afford to lose one chest in
three . . . " * Meantime, Dutch teas were selling in Hol-
land from 18d. to 2s. per pound and paid no import duty
into America. * Hutchinson urged constantly in his busi-
ness and political correspondence that "by some means or
other the price of Teas in England to the Exporter ought
to be kept nearer to the price in Holland. " *
The next act of Parliament dealing with the East India
1 7 George III, c. 56. Vide Farrand's article already referred to, in
Am. Hist. Rev. vol. iii, pp. 266-269.
1 Bos. Gaz. , Nov. 27, 1775.
* Drake, op. cit. , pp. 191, 102, 194-197.
Hutchinson calculated the cost
of landing smuggled tea at five per cent.
* Letters to William Palmer and Lord Hillsborough, in Mass. Arch. ,
vol. xxvii, pp. 206-207; Bos. Gas. , Nov. 27, Dec. 4, 1775. Vide also me-
morial of Barkly, the Philadelphia merchant, to the same purpose.
Drake, op. cit. , pp. 199-202.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? COLONIAL PROSPERITY
251
Company, enacted in June, 1772, relieved the company from
future liability for deficiency in the tea revenues but granted
a drawback of only three-fifths of the English import duties
on tea exported to America instead of a complete reim-
bursement as formerly. 1 This act failed to alter the situ-
ation materially, so far as the American dealer in dutied
teas was concerned. 2 The tea smuggler continued to con-
trol the situation, particularly at New York and Philadel-
phia; and in the period from December 1, 1770 to the ter-
mination of the customs service in 1775, only 874 pounds
of customed ter were imported at New York and 128 pounds
at Philadelphia. 8
Illicit traffic in other commodities was also carried on,
although probably in lesser volume than ever before. The
total duties collected on wines and molasses in all the colonies
increased steadily until 1773. 4 During the year 1772, ships-
of-war all along the coast displayed greater activity and
more than doubled the amount of their seizures. 5 Exces-
112 George III, c. 60. The East India Company were obliged to pay
the British government more than ? 115,000 as a result of the falling off
? of the tea revenues during the first four years under the act of 1767.
* It would appear that certain other trading conditions discouraged
the merchants of the Middle Colonies from undertaking the importation
of 'English teas. English ports, unlike those of Holland and certain
? other foreign countries, were seldom open for the importation of
American corn and flour; and even when they were, the sales of the
East India Company occurred at such irregular intervals that colonial
merchants did not know when to direct their proceeds to be invested
in teas as homeward freight . Moreover, American merchants received
preferential treatment at the foreign ports,--a moderate price and
"Advantageous Terms of Discount, Difference of Weight &c, amount-
ing in the whole, to near 20 per Centum. " Pa. Mag. , vol. xxv, p. 140.
1 Channing, op. cit. , vol. iii, p. 128 n.
4 Vide table compiled from accounts of cashier of the American cus-
toms; quoted by Channing, up. cit. , vol. iii, p. 90 n.
* Seizures by ships-of-war amounted to ? 719 in 1771; ? 2017 in 1772.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 252
THE COLONIAL MERCHANTS: 1763-1776
tpn-
dency to errjtf purpnjar fury; and indeed it was an incident
growing out of this situation that produced the first serious
clash between the British government and the colonists
during this period. Already in November, 1771, the comp-
troller of the customs at Falmouth had been aroused from
his slumbers by disguised men and, at the point of a pistol,
forced to divulge the name of the person who had lodged
an information with him. 1 In the same month, a mob of
thirty disguised men had overcome, with some brutality,
the crew of a revenue schooner anchored near Philadelphia,
and had rescued a captive vessel that was laden with contra-
band tea, claret and gin. 2
Resistance to customs authority reached its climax in the
destruction of the revenue vessel Ggsjwe on the night of June
9, 1772. The commander of the vessel, Lieutenant Dud-
ingston, had, in patrolling Narragansett Bay and the con-
necting waters, displayed "an intemperate, if not a repre-
hensible zeal to aid the revenue service. " * He had made
himself obnoxious to legitimate traders as well as to smug-
glers, and was believed to have contributed, through his
officiousness, "not a little to enhance the price of fuel and
provisions" in Rhode Island. 4 One day while pursuing a
However, seizures by land officers fell from ? 607 to ? 378. Vide Chan-
ning, op. cit. , vol. iii, p. 89 n. Notices of the Vice-Admiralty Court in
the Boston newspapers showed that large quantities of goods were being
condemned for illegal importation, especially molasses, sugars and
wines. For an example of increased activity at New York, vide R. I.
Commerce, vol. i, p. 383.
1 4 Am. Arch. , vol. i, pp. 26-27.
1 Pa. Col. Recs. , vol. x, pp. 8-15.
1Report of the royal Commission of Inquiry; Bartlett, J. R. , A His-
tory of the Destruction of His Britannic Majesty's Schooner Gaspee
. . . (Providence, 1861), p. 128.
4 Governor Wanton to Hillsborough; ibid. , p. 39.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? COLONIAL PROSPERITY
253
colonial vessel, the Gaspee ran aground on a narrow spit of
land about six miles from Providence. Led by John Brown,
the most opulent merchant of that town, and by Abraham
Whipple, a ship captain in the West Indian trade, a band of
citizens boarded the vessel in the night, seized the crew and
set the vessel on fire. 1 A commission of inquiry was ap-
pointed by the king to sift the matter and to convey the
perpetrators out of the colony for trial. Although the names
of those who had taken part in the affair were known to at
least a thousand persons, no one could be found to inform
the commissioners against them. Moreover, Stephen Hop-
kins, chief justice of Rhode Island and a shipbuilder and ex-
smuggler himself, declared that not a person should be
removed for trial outside of the colony's limits. The com-
missioners abandoned the inquiry and reported their failure
to the home government. The latter did not appear anxious
to make an issue of the Gaspee incident. Lieutenant Dud-
ingston was sued by some Rhode Island merchants for al-
leged unlawful conversion of sundry casks of rum and sugar.
After three trials in local courts, he acknowledged himself
beaten, and the Customs Board at Boston made good his
losses to the extent of ? 363. ' In general, revenue vessels
relaxed their vigilance during the year 1773; and their
seizures fell off almost three-fifths. 8
The keener minds among the radicals were not blind to
the change that had come over the merchant class and to the
resulting paralysis which had seized on the public mind.
1 Based on statement of a participant many years later; ibid. , pp. 19-20.
"Many of them appeared like men of credit and tradesmen; and but
few like common men," declared the deposition of Midshipman Dickin-
son. Ibid. , p. 31.
1 Channing, op. cit. , vol. iii, p. 126.
1 Ibid. , p. 89 n. ; Stevens, Facsimiles, vol. xxiv, no. 2029, p. 5.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 254
THE COLONIAL MERCHANTS: 1763-1776'
Sam Adams's comment when the Boston merchants decided
to abandon their general suspension of trade for tea non-
importation alone showed keen appreciation of the economic
basis of mercantile discontent. Admitting freely that the
merchants had held out longer than he had expected and
that his connection with them had been " but as an Auxiliary
in their Nonimportation Agreement," he wrote to a brother
radical in South Carolina in this strain:
Let the Colonies still convince their implacable Enemies that
they are united in constitutional Principles, and are resolved
they will not be Slaves; that their Dependance is not upon
Merchants or any particular Class of Men, nor is their dernier
resort a resolution barely to withhold Commerce with a nation
that would subject them to despotic Power. 1
In effect, he was saying that the merchant class had been
utilized to the utmost as fertilizers of discontent; that
their spirit for trade redress had sustained them surpris-
ingly well in their opposition to England but that hence-
forth the struggle of the colonies must be divorced from the
self-interest of the merchant class and rest on a broader
popular basis.
Adams labored hard to keep flUve radical sentiment in
Boston. James Ot1s, 1n his intervals of sanity, was pursu1ng
a strongly reactionary course. 2 John Adams withdrew him-
self from public life, devoting himself to his profession;
and for a time he ceased even to use his pen in defense of
popular rights. Sam Adams's chief care was to keep hot the
coals of Hancock's resentment against Parliament, for Han-
cock was the local Croesus,8 and some of his funds and all
'To Peter Timothy, Nov. 21, 1770; Adams, Writings (Gushing),
vol. ii, p. 65. Vide also ibid. , p. 58.
1 Adams, J. , Works (Adams), vol. ii, p. 266.
? John Adams credited the statement that "not less than one thou-
sand families were, every day in the year, dependent on Mr. Hancock for
their daily bread. " Ibid. , vol. x, p. 260.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? COLONIAL PROSPERITY 255
of his influence had been employed to promote the anti-
parliamentary movement in the preceding years. But, as
was the case with many another merchant, Hancock's busi-
ness affairs had gone awry while he was playing the politi-
cian;' and he was averse to any further agitation by the
radicals while the golden fruits of commerce invited pick-
ing. "All friendship between them was suddenly at an end,"
wrote Hutchinson in his history, "and Mr. Hancock ex-
pressed his dissatisfaction with the party, and with their
extending their designs further than appeared to him war-
rantable. " 2 For the next couple of years, Hancock, al-
though resisting all efforts of Governor Hutchinson to com-
mit him to the other side, pursued the course of the typical
merchant, and at several critical times threw his influence
and vote in favor of conciliation and against the disturbing
schemes of Adams. *
What the radical cause lacked was, first, a compelling?
issue, and, second, an organization divorced from the con-
trol of the merchant class. The home government supplied
promising material for the first when the report reached
Boston in late September, 1 772, that the salar1es "oT^ the ,
Wf? uld thereafter be paid out of the
No propagandist ever utilized an opportunity more dexter-
ously than did Sam Adams on this occasionT Masquerad-
ing under the signature " Valerius Poplicola," he appeared
in the Boston Gazette of October 5, 1772 in an eloquent pro-
test against the innovation. "The Merchants of this Con-
tinent," he declared,
have passively submitted to the Indignity of a Tribute; and
1 Brown, John Hancock His Book, pp. 158, 163, 168.
1 Mass. Bay, vol. iii, p. 346. See also Wells, Samuel Adams, vol. i,
PP.
Colden ancj Lord Dartmouth exchanged views on the sub-
ject, agreeing in the sentiment that the illicit trade between
New York and Holland prevailed "to an enormous de-
gree. "' "It is well known," wrote Samuel Seabury in
1774, " that little or no tea has been entered at the Customs
House for several years. All that is imported is smuggled
from Holland, and the Dutch Islands in the West Indies. " *
Gilbert Barkly, a Philadelphia merchant of sixteen years'
standing, wrote in May, 1773, of the extensive smuggling
of tea "from Holland, France, Sweden, Lisbon &c, St.
Eustatia, in the West Indies &c. " 5 Smuggling " has amaz-
ingly encreased within these twenty years past," asserted
"A Tradesman of Philadelphia. " * Hutchinson informed
the home government that "in New York they import
scarce any other than Dutch teas. In Rhode Island and
Pennsylvania, it is little better. " T Since smuggled tea was
1 Contemporaries realized this. E. g. , vide "A Tradesman of Phila-
delphia" in Pa. Journ. , Aug. 17, 1774.
1Letters of Hutchinson in Mass. Arch. , vol. xxvii, p. 317; Bos. Gas. ,
Nov. 27, Dec. 4, 1775; N. Engl. Chron. , July 29.
? N. Y. Col. Docs. , vol. viii, pp. 487, 510-512.
4 Free Thoughts on the Proceedings of the Continental Congress . . .
By a Farmer (1774). Also vide Becker, N. Y. Parties, 1760-1776, p. 84,
n. 158.
1 Drake, F. S. , Tea Leaves (Boston, 1884), p. 201.
? Pa. Journ. , Aug. 17, 1774.
'Letter of Sept. 10, 1771; Bos. Gas. , Nov. 27, 1775. Newport prob-
ably ranked next in importance to New York and Philadelphia as a
centre for tea-smuggling. Vide Drake, op. cit. , pp. 194-197.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 248 THE COLONIAL MERCHANTS: 1763-1776
cheaper for the consumer to drink than dutied tea and the
profits of the tea dealer greater, the systematic neglect of
the dutied article in New York and Philadelphia corres-
ponded as much to self-interest as devotion to principle,
and gave fair occasion for the coining of the epigram that
"a smuggler and a whig are cousin Germans . . . " *
The smuggling merchants experienced little difficulty in
getting their teas into America. Notwithstanding all the
regulations of recent years, there were still many secluded
landing places on the extensive coast line and all the tricks
which the mind of a resourceful skipper could invent to
deceive the customs off1cials. 2 There were, furthermore,
customs officials who, from lack of reward from the govern-
ment, did not care to risk "the rage of the people," * or
who, because of the freehandedness of the smugglers, found
rich reward in conniving at the traffic. Colden cited
the case of his grandson, recently appointed surveyor and
searcher of the port of New York, who was given to under-
stand by interested parties that " if he would not be officious
in his Duty, he might depend upon receiving ? 1500 a year. " *
The views of contemporary observers throw some light
on the proportion of imported tea which failed to pay the
parliamentary duty. (JDYf;rP"r Tilltf,llirsOn who seems to
have furnished the brains for the tea business carried on
1 " Massachusettensis" in Mass. Gas. & Post-Boy, Jan. 2, 1775.
*? . g. , filling the interstices of a lumber cargo with tea, carrying
false bills of lading, and the like; private letters in Pub. Rec. Off. :
C. O. 5, no. 138 (L. C. Transcripts), pp. 151-152, 175. Vide the sailing
orders of Captain Hammond for obtaining a tea cargo at Goteborg or
Hamburg and for running it past the customs officials at Newport.
R. /. Commerce, vol. i, pp. 332-333.
* Letters of Hutchinson to Hillsborough, Aug. 25, Sept. 10, 1771, in
Bos. Gas. , Nov. 27, 1775.
4 Letter Books, vol. ii, pp. 370-372.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? COLONIAL PROSPERITY
249
by his SOnS at Boston,
consumption of teas in America was 10. 200 flip^f" nr f"-
528. 000 pounds^1 For approximately the same period, the
amount" of tea that paid the duty was about 320. 000 pounds. 2
Hutchinson's estimate was evidently wide of the mark, for
even Samuel Wharton, who gravely averred that the fron-
tiersmen and many Indians shared the popular habit of im-
bibing tea twice a day, placed the total consumption at a
million and a half pounds less. * The London tea merchant,
William Palmer, judged more dispassionately when he
hazarded a figure about half of that named by Hutchinson,
remarking that Hutchinson's estimate of "19,200 chests
is more than has been hitherto annually imported from
China by all foreign companies. " * Assuming Palmer's
conservative figure to be approximately correct, the con-
clusion would seem valid that in a year, like 1771, marked
by unusually large importations of customed tea, more
than nine-tenths of the tea consumed was illicitly imported. *
The incentive to smuggling existed in spite of the well-
intentioned efforts of the British government. The Towns-
hend act of 1767, although imposing a small import duty of
threepence a pound in America, had removed all British im-
1 Bos. Go*. , Nov. 27, 1775.
1 The amount of dutied tea imported from Dec. 1, 1770 to Jan. 5, 1772
was 344,771 pounds, according to an abstract prepared in the office of the
inspector of imports and exports; quoted by Channing, op. cit. , vol. iii,
p. 128 n.
*" Observations," Pa. Mag. , vol. xxv, p. 140.
4 Drake, op. cit. , p. 197.
6 Hutchinson in 1771 set the figure at nine-tenths for New York and
Philadelphia and five-sixths for Massachusetts. Bos. Gaz. , Nov. 27,
1775. He said elsewhere that the contraband tea consumed' at Boston
came there by way of New York and Philadelphia. Mass. Arch. , vol.
xxvii, p. 317.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? THE COLONIAL MERCHANTS: 1763-1776
port duties from tea exported to America,1 and had thus,
for a time at least, reduced the cost of English tea to the
American consumer below that of the contraband article.
This advantageous situation of English tea could, in the
nature of things, continue only so long as the wholesale
price of the tea in the English market did not go up, or the
price of smuggled fell. The former occurred. The
East India Company, although not permitted to sell at
retail, were permitted to name an upset price at their public
auction sales. Treading the edge of a quicksand of bank-
ruptcy and obliged by the act of 1767 to make good any
deficiency in the revenues resulting from the discontinuance
of certain tea duties, the company sought to recoup its
losses by advancing the upset price of tea. Governor Hutch-
inson wrote to Lord Hillsborough on August 25, 1771: " If
the India company had continued the sale of their teas at 2s.
2d. to 2s. 4d. as they sold two years ago, the Dutch trade
would have been over by this time; but now that the teas
are at 3s. the illicit traders can afford to lose one chest in
three . . . " * Meantime, Dutch teas were selling in Hol-
land from 18d. to 2s. per pound and paid no import duty
into America. * Hutchinson urged constantly in his busi-
ness and political correspondence that "by some means or
other the price of Teas in England to the Exporter ought
to be kept nearer to the price in Holland. " *
The next act of Parliament dealing with the East India
1 7 George III, c. 56. Vide Farrand's article already referred to, in
Am. Hist. Rev. vol. iii, pp. 266-269.
1 Bos. Gaz. , Nov. 27, 1775.
* Drake, op. cit. , pp. 191, 102, 194-197.
Hutchinson calculated the cost
of landing smuggled tea at five per cent.
* Letters to William Palmer and Lord Hillsborough, in Mass. Arch. ,
vol. xxvii, pp. 206-207; Bos. Gas. , Nov. 27, Dec. 4, 1775. Vide also me-
morial of Barkly, the Philadelphia merchant, to the same purpose.
Drake, op. cit. , pp. 199-202.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? COLONIAL PROSPERITY
251
Company, enacted in June, 1772, relieved the company from
future liability for deficiency in the tea revenues but granted
a drawback of only three-fifths of the English import duties
on tea exported to America instead of a complete reim-
bursement as formerly. 1 This act failed to alter the situ-
ation materially, so far as the American dealer in dutied
teas was concerned. 2 The tea smuggler continued to con-
trol the situation, particularly at New York and Philadel-
phia; and in the period from December 1, 1770 to the ter-
mination of the customs service in 1775, only 874 pounds
of customed ter were imported at New York and 128 pounds
at Philadelphia. 8
Illicit traffic in other commodities was also carried on,
although probably in lesser volume than ever before. The
total duties collected on wines and molasses in all the colonies
increased steadily until 1773. 4 During the year 1772, ships-
of-war all along the coast displayed greater activity and
more than doubled the amount of their seizures. 5 Exces-
112 George III, c. 60. The East India Company were obliged to pay
the British government more than ? 115,000 as a result of the falling off
? of the tea revenues during the first four years under the act of 1767.
* It would appear that certain other trading conditions discouraged
the merchants of the Middle Colonies from undertaking the importation
of 'English teas. English ports, unlike those of Holland and certain
? other foreign countries, were seldom open for the importation of
American corn and flour; and even when they were, the sales of the
East India Company occurred at such irregular intervals that colonial
merchants did not know when to direct their proceeds to be invested
in teas as homeward freight . Moreover, American merchants received
preferential treatment at the foreign ports,--a moderate price and
"Advantageous Terms of Discount, Difference of Weight &c, amount-
ing in the whole, to near 20 per Centum. " Pa. Mag. , vol. xxv, p. 140.
1 Channing, op. cit. , vol. iii, p. 128 n.
4 Vide table compiled from accounts of cashier of the American cus-
toms; quoted by Channing, up. cit. , vol. iii, p. 90 n.
* Seizures by ships-of-war amounted to ? 719 in 1771; ? 2017 in 1772.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 252
THE COLONIAL MERCHANTS: 1763-1776
tpn-
dency to errjtf purpnjar fury; and indeed it was an incident
growing out of this situation that produced the first serious
clash between the British government and the colonists
during this period. Already in November, 1771, the comp-
troller of the customs at Falmouth had been aroused from
his slumbers by disguised men and, at the point of a pistol,
forced to divulge the name of the person who had lodged
an information with him. 1 In the same month, a mob of
thirty disguised men had overcome, with some brutality,
the crew of a revenue schooner anchored near Philadelphia,
and had rescued a captive vessel that was laden with contra-
band tea, claret and gin. 2
Resistance to customs authority reached its climax in the
destruction of the revenue vessel Ggsjwe on the night of June
9, 1772. The commander of the vessel, Lieutenant Dud-
ingston, had, in patrolling Narragansett Bay and the con-
necting waters, displayed "an intemperate, if not a repre-
hensible zeal to aid the revenue service. " * He had made
himself obnoxious to legitimate traders as well as to smug-
glers, and was believed to have contributed, through his
officiousness, "not a little to enhance the price of fuel and
provisions" in Rhode Island. 4 One day while pursuing a
However, seizures by land officers fell from ? 607 to ? 378. Vide Chan-
ning, op. cit. , vol. iii, p. 89 n. Notices of the Vice-Admiralty Court in
the Boston newspapers showed that large quantities of goods were being
condemned for illegal importation, especially molasses, sugars and
wines. For an example of increased activity at New York, vide R. I.
Commerce, vol. i, p. 383.
1 4 Am. Arch. , vol. i, pp. 26-27.
1 Pa. Col. Recs. , vol. x, pp. 8-15.
1Report of the royal Commission of Inquiry; Bartlett, J. R. , A His-
tory of the Destruction of His Britannic Majesty's Schooner Gaspee
. . . (Providence, 1861), p. 128.
4 Governor Wanton to Hillsborough; ibid. , p. 39.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? COLONIAL PROSPERITY
253
colonial vessel, the Gaspee ran aground on a narrow spit of
land about six miles from Providence. Led by John Brown,
the most opulent merchant of that town, and by Abraham
Whipple, a ship captain in the West Indian trade, a band of
citizens boarded the vessel in the night, seized the crew and
set the vessel on fire. 1 A commission of inquiry was ap-
pointed by the king to sift the matter and to convey the
perpetrators out of the colony for trial. Although the names
of those who had taken part in the affair were known to at
least a thousand persons, no one could be found to inform
the commissioners against them. Moreover, Stephen Hop-
kins, chief justice of Rhode Island and a shipbuilder and ex-
smuggler himself, declared that not a person should be
removed for trial outside of the colony's limits. The com-
missioners abandoned the inquiry and reported their failure
to the home government. The latter did not appear anxious
to make an issue of the Gaspee incident. Lieutenant Dud-
ingston was sued by some Rhode Island merchants for al-
leged unlawful conversion of sundry casks of rum and sugar.
After three trials in local courts, he acknowledged himself
beaten, and the Customs Board at Boston made good his
losses to the extent of ? 363. ' In general, revenue vessels
relaxed their vigilance during the year 1773; and their
seizures fell off almost three-fifths. 8
The keener minds among the radicals were not blind to
the change that had come over the merchant class and to the
resulting paralysis which had seized on the public mind.
1 Based on statement of a participant many years later; ibid. , pp. 19-20.
"Many of them appeared like men of credit and tradesmen; and but
few like common men," declared the deposition of Midshipman Dickin-
son. Ibid. , p. 31.
1 Channing, op. cit. , vol. iii, p. 126.
1 Ibid. , p. 89 n. ; Stevens, Facsimiles, vol. xxiv, no. 2029, p. 5.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? 254
THE COLONIAL MERCHANTS: 1763-1776'
Sam Adams's comment when the Boston merchants decided
to abandon their general suspension of trade for tea non-
importation alone showed keen appreciation of the economic
basis of mercantile discontent. Admitting freely that the
merchants had held out longer than he had expected and
that his connection with them had been " but as an Auxiliary
in their Nonimportation Agreement," he wrote to a brother
radical in South Carolina in this strain:
Let the Colonies still convince their implacable Enemies that
they are united in constitutional Principles, and are resolved
they will not be Slaves; that their Dependance is not upon
Merchants or any particular Class of Men, nor is their dernier
resort a resolution barely to withhold Commerce with a nation
that would subject them to despotic Power. 1
In effect, he was saying that the merchant class had been
utilized to the utmost as fertilizers of discontent; that
their spirit for trade redress had sustained them surpris-
ingly well in their opposition to England but that hence-
forth the struggle of the colonies must be divorced from the
self-interest of the merchant class and rest on a broader
popular basis.
Adams labored hard to keep flUve radical sentiment in
Boston. James Ot1s, 1n his intervals of sanity, was pursu1ng
a strongly reactionary course. 2 John Adams withdrew him-
self from public life, devoting himself to his profession;
and for a time he ceased even to use his pen in defense of
popular rights. Sam Adams's chief care was to keep hot the
coals of Hancock's resentment against Parliament, for Han-
cock was the local Croesus,8 and some of his funds and all
'To Peter Timothy, Nov. 21, 1770; Adams, Writings (Gushing),
vol. ii, p. 65. Vide also ibid. , p. 58.
1 Adams, J. , Works (Adams), vol. ii, p. 266.
? John Adams credited the statement that "not less than one thou-
sand families were, every day in the year, dependent on Mr. Hancock for
their daily bread. " Ibid. , vol. x, p. 260.
? ? Generated for (University of Chicago) on 2014-08-19 01:36 GMT / http://hdl. handle. net/2027/mdp. 39015011480665 Public Domain, Google-digitized / http://www. hathitrust. org/access_use#pd-google
? COLONIAL PROSPERITY 255
of his influence had been employed to promote the anti-
parliamentary movement in the preceding years. But, as
was the case with many another merchant, Hancock's busi-
ness affairs had gone awry while he was playing the politi-
cian;' and he was averse to any further agitation by the
radicals while the golden fruits of commerce invited pick-
ing. "All friendship between them was suddenly at an end,"
wrote Hutchinson in his history, "and Mr. Hancock ex-
pressed his dissatisfaction with the party, and with their
extending their designs further than appeared to him war-
rantable. " 2 For the next couple of years, Hancock, al-
though resisting all efforts of Governor Hutchinson to com-
mit him to the other side, pursued the course of the typical
merchant, and at several critical times threw his influence
and vote in favor of conciliation and against the disturbing
schemes of Adams. *
What the radical cause lacked was, first, a compelling?
issue, and, second, an organization divorced from the con-
trol of the merchant class. The home government supplied
promising material for the first when the report reached
Boston in late September, 1 772, that the salar1es "oT^ the ,
Wf? uld thereafter be paid out of the
No propagandist ever utilized an opportunity more dexter-
ously than did Sam Adams on this occasionT Masquerad-
ing under the signature " Valerius Poplicola," he appeared
in the Boston Gazette of October 5, 1772 in an eloquent pro-
test against the innovation. "The Merchants of this Con-
tinent," he declared,
have passively submitted to the Indignity of a Tribute; and
1 Brown, John Hancock His Book, pp. 158, 163, 168.
1 Mass. Bay, vol. iii, p. 346. See also Wells, Samuel Adams, vol. i,
PP.
