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Authors: Murray N. Rothbard

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For more effective enforcement of government power under the Tudors, executive power was exercised by a specially selected group of government advisers that, because it met in secret, was called the Privy Council. The Privy Council acted by means of fiat proclamations rather than by legislation of Parliament. Judicial power was granted to the Court of Star Chamber, a prerogative court that tried the violations of the proclamations by the mere force and whim of government rather than by the traditional common law, which guaranteed the rights of the people. Defending the government from the criticisms of the people (called libels), from conspiracy and riots (that is, any gathering protesting the oppressions of the government), and from infractions of its coinage, the Star Chamber was notorious for the imposition of ruinous fines, cruel imprisonment, whippings, brandings, and mutilations of those who came under its aegis. To aid its work, the Tudor Government had set aside the common-law prohibition of the use of torture.

The Tudors also introduced the first permanent state military force in England, as they had established the foundation for a governmental navy. Military force was most generally used to subject the Irish to English rule. Poynings’ Law (1495), which established the model for the control of colonies by the English government, extended to Ireland the repressive and absolutist measures current in England, and required all legislation in the Irish Parliament to receive
prior
approval from the Privy Council in England. When, a century and more later, England acquired transatlantic territories and Englishmen fled there to escape the economic effects of mercantilism or the repressions of the Privy Council, the Star Chamber, or prerogative will, it was the English subjugation and domination of Ireland that furnished the earliest precedents and models for attempted imperial control of the peoples in America.

During the sixteenth century a principal office developed in the Tudor government that would later have the greatest importance for the English colonies in America. This was the secretary of state, a title of Spanish origin, indicating some of the strong political and cultural influence derived from England’s commercial and diplomatic relations with Spain. By 1540, there were two secretaries of state, each of whom had full authority to act on a wide range of matters dealing with the king and his officials and the king and foreign governments. The secretaries of state became responsible for the expanding areas that the Privy Council took under its jurisdiction: judicial matters, internal government, taxation and economic controls, leadership of the houses of Parliament, military and naval affairs, foreign affairs, and, finally, colonial affairs, when England acquired and governed colonies.

During the first half of the sixteenth century, while the English government
was neglecting the New World for state-building and navy-building, English fishermen quietly but regularly began to enjoy the abundant fishing in the waters off Newfoundland. Fishing ships put out from west country ports, such as Bristol and Plymouth, and then sold the fish in Spain, Portugal, and Italy. On their return, these ships carried the goods of the Mediterranean to northern Europe; for with the decline, and cessation in 1532, of the Venetian-Flanders fleets that had been calling in Southampton, English merchants imitated the Dutch and themselves carried the trade of Italy, Spain, and Portugal to Antwerp. The Venetian fleets could no longer compete in the spice and Atlantic trade because of a growing shortage of and therefore a high price for timber in the Adriatic, and because Portuguese aggression against Venice’s Arab allies at the ports of the Persian Gulf cut off its spice routes. Such oceanic voyages, however, were not at this time of interest to the English government, which was pushing for the building of large ships and the maintenance of fishing fleets in the nearby North Sea, where the sailors could be regularly and immediately available to be pressed into the navy for military adventures in Europe, in alliance with Spain. To this end a navigation act was introduced in 1540 requiring the use of the larger, more expensive, and less efficient ships of the English shipowners and captains instead of the smaller, less expensive Dutch ships. However, privileged merchants, such as the Merchant Adventurers, in trade with Spain or its possessions (for example, Spain and the Netherlands), were exempted and could by employing Dutch shipping, gain a competitive advantage over independent English merchants. Decreased English participation in the North Sea herring fishery, caused by the greater efficiency of the Dutch as well as by the Reformation, which greatly reduced the religiously based demand for fish in England, greatly alarmed the English government. To maintain the traditional source of impressment of men into the government’s navy, a statute of 1549 imposed upon the English a political abstinence from meat under penalty of fine, in place of the previous purely religious abstinence.

This intensification of mercantilist policy was accelerated by the intervention of England into the dynastic wars on the Continent in the 1540s. To support its military activity, the English government initiated a series of great debasements of the currency as a hidden form of taxation of the people. The depreciation of the currency made England’s goods cheaper to foreigners, who were able to purchase more English goods for the same amount of money. This taxation by inflation thus called forth an unnatural expansion in the production of the export commodities of wool and cloth, dislocating the economy both in agriculture and in industry. By 1550 the great increase in the costs of production, brought about by the inflation, caught up with the fall of the foreign exchange rate, thus ending the artificial comparative advantage causing the increased export of cloth. The inevitable end to the overexpansion of export industry, stimulated by the
government’s debasement in the 1540s, resulted in a severe depression, prolonged during the 1550s by further restrictive and monopolizing economic intervention by the government. Thus Parliament passed laws to protect the guild industry and to bring the free rural industry under the control of the traditional patterns of regulation and taxation; at the same time, the Merchant Adventurers, who were becoming the major tax collectors and lenders of money to the government, received a more complete monopoly of the export of cloths to Europe.

The accession of Queen Elizabeth (1558–1603) was followed by the transformation of piecemeal, unsystematic government interventions, into a comprehensive program of restrictions, privileges, and taxes. Elizabeth’s reign brought to culmination the trend to absolutist government, especially noticeable in the exercise of power by the prerogative courts. By the Statute of Labourers and Apprentices of 1563, Parliament extended to the whole nation the restrictions that had formerly been limited to the urban guilds. In order to check and control the free capitalist textile industry based on rural labor, the government bound rural workers to agricultural labor and extended restrictive seven-year apprenticeship requirements and maximum-wage rates to the rural cloth industry. In this way, by crippling the free cloth industry, the government moved to confer special privilege on two powerful groups: the backward urban guilds, who were being outcompeted by the free and progressive rural cloth makers; and the quasi-feudal landlords, who had been losing workers to the higher paying cloth industry. To overcome the protections afforded defendants in common-law trials, the punishment for violating New Laws was placed by the Privy Council into the hands of the prerogative courts, where prisoners could be tortured and were deprived of the benefits of trial by jury. The Court of Star Chamber also developed censorship to control the reading of the people, and the laws of seditious and slanderous libel to protect the government from criticism.

Under the pressure of the financial crisis and of the control of markets by monopoly trading companies, the only possible avenue for the export of cloth appeared to be the opening of new areas of trade. As a result there was a resumption of English maritime exploration by the merchants seeking markets for cloth and sources of raw material. The most successful of these attempts began in December of 1551 with the formation of “The Mystery and Company of the Merchant Adventurers for discovery of Regions, Dominions, Islands, and Places Unknown.” To it Sebastian Cabot, the partner and son of John Cabot and chief pilot of Spain for thirty years, was appointed as governor for life. After consideration by the Trinity House Corporation, which was empowered to review petitions for charters of exploration and trade, the company received its charter. Organized according to Italian practice as a joint stock company, it was named the Russia or Muscovy Company. The company received a grant of monopoly in 1553 for all trade with Russia, Central Asia, and Persia through the White Sea port of Archangel. An expedition to Archangel and Moscow returned in 1554
with permission to sell English cloth and purchase Russian furs plus the spices transported along the Volga River from central Asia and Persia. The descendants and relatives of the founders of the Muscovy Company were important in later explorations, most of which were conducted under the auspices of the company.

The English also looked to Spanish America as a market for the export of cloth and the purchase of raw materials. Although Spain maintained a system of monopoly trade to the New World, it could not supply large quantities of goods at low prices due to the regulations, taxes, and privileges of the mercantilist system. By the mid-sixteenth century, the silver mines of Mexico and Peru were not only contributing greatly to a monetary inflation in Europe, but also making the Spanish commerce with America the most valuable part of transoceanic trade. While Europe had difficulty in selling goods in Asia in exchange for spices, and therefore had to reexport American silver for spices, it could not supply enough manufactured goods to Spain for purchasing the silver, hampered as it was by the restrictions, monopoly, and taxation imposed by the Spanish government. These restrictions and inefficiencies of the Spanish monopoly greatly encouraged smuggling by ships from other European countries.

Large amounts of manufactured goods were reexported to the Spanish colonies from the Portuguese colony of Brazil, which around the middle of the sixteenth century became, by virtue of the absence of restrictions and heavy taxes, the major sugar-producing area in the world. Just as the bullion from America in payment for manufactured goods, and loans on the slave trade from West Africa (through which goods were smuggled to the West Indies) by the Genoese, now made Antwerp the banking capital of Europe, so the sugar trade from Brazil to Portugal by Jewish merchants, and from Lisbon to Antwerp by Dutchmen and Portuguese Jews living in the Netherlands, made Antwerp the center of the finest and cheapest sugar-refining industry in sixteenth-century Europe. The English, like the Portuguese, were able to engage in the illegal trade to the West Indies at reduced risks, because of close diplomatic relations between England and Spain. In 1562, Sir John Hawkins of Plymouth, after acquiring 300 slaves in West Africa, received permission to sell them in slave-hungry Hispaniola and to purchase a valuable cargo of sugar. Hawkins made a second voyage in 1564 to sell English cloth. In return for a license to trade in the West Indies and promises as to his peaceful trade, Hawkins offered to aid the Spanish in destroying the colony established in Florida by the French, who were also the leading pirates in the West Indies.

The Spaniards, however, decided to do this job themselves. In 1564 a group of French Huguenots under René de Laudonnière settled at the mouth of the St. Johns River on the east coast of Florida, and there constructed Fort Caroline. The Spaniards, worried about their bullion convoys and the threat of buccaneers, and anxious to enforce their claims of monopoly power over Florida, sent Pedro Menéndez de Avilés from Spain to crush the French. In
1565 Menéndez founded the great base of St. Augustine, the first permanent city in the Western Hemisphere, and fifty miles south of the French settlement. After a French fleet moving against the Spaniards was wrecked in a storm, Menéndez, heavily outnumbering the French, then marched overland and butchered over two-thirds of the settlement, especially including prisoners, save for a hundred colonists who managed to escape to some French vessels in the harbor. Philip II, king of Spain, rejoiced at the news: “Say to him [Menéndez] that as for those he has killed, he has done well; and as for those he has spared, they should be sent to the galley [i.e., into slavery].”

In retaliation, a French nobleman, Dominique de Gourgues, outfitted an expedition at his own expense, landed in early 1568 near the fort (now renamed San Mateo), and mobilized many Indians who were happy to take revenge on the hated Menéndez. Gourgues now swept down on the Spanish garrison, taking it completely by surprise and conquering it easily. The entire Spanish force, prisoners again included, was now in turn put to the sword. Although Menéndez himself escaped punishment by being absent in Spain, Gourgues was able to enforce poetic justice. Menéndez had hanged several prisoners, publicly posting the notice that they were hanging as Protestants, not as Frenchmen. Now Gourgues hanged a score of his prisoners on the same trees, and posted the sign: “Not as Spaniards, but as liars and murderers.”

Due to English intervention into the constitutional and religious struggle of the Netherlands against Spain, English activity in the West Indies tended more and more toward piracy against Spanish shipping. The English freebooters were encouraged in their piratic attacks by the Crown, which participated in the profits of the plundering voyages. Sir John Hawkins and his cousin Francis Drake were defeated at Vera Cruz in 1568, but in 1571 and 1573 Drake plundered the Spanish silver depots at Panama. In 1577–80 Drake dared to circumnavigate the globe; he was the first Englishman to challenge the concept of the Pacific Ocean as a vast Spanish lake. Along the way, Drake plundered Chile and Peru, and purchased tons of spices in the East Indies. In 1585 Drake returned to the West Indies; on this voyage his fleet plundered Santo Domingo, Cartagena, and St. Augustine. In 1587, he attacked Lisbon and Cadiz, and in 1588 participated in the defeat of the Spanish Armada, which had attempted to retaliate against English attacks. This was a victory that brought to England domination of the seas.

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