british debt Essay

Submitted By denise525
Words: 582
Pages: 3

British Debt
The seven years war, also known as the French and Indian war, was the first global conflict. This conflict was between Britain and the French. To achieve victory in 1763 the British government had borrowed on enormous amount of money to pay for the war. Because of the war the British were severely in debt. In order to pay back all the money that they borrowed they learned how to make more, and spend less.
The British had to know how to make more money. They created certain acts and events to help the revenue of money. One law was the Townshend duty act. The purpose was to raise revenue in the colonies so they placed taxes on colonial tea, lead, paint, paper, and glass. The money that was earned went towards government cost in America. There was also mercantilism, which helped the government gain wealth by exporting more than importing and placing taxes on the shipment of goods. They also made a market with the raw materials that they received. The sugar act raised revenue from the American colonies. This act placed taxes on sugar and molasses. The sugar act also impacted the price of rum, since it’s made by molasses. The currency act prohibited new paper money to be printed and distributed. This helped the British make more money because it made the colonies pay in gold and silver which are more significant then paper bills. Lastly the stamp act was created to raise the British revenue, because it issued that any public and legal document must have a stamp or British seal on it. The British were able to make more money because they placed a cost on the stamp or seal that everybody had to use. The British were able to increase the revenue on money by taxing the people.
The British also had to know how to spend less of their money. One way they spent less was by issuing the proclamation of 1763. This created a line among the Appalachian Mountains; this line was created to stop expense of further wars. The British also created the tea act of 1773. This act created a monopoly on tea and could only be bought in the East Indie Company, which kept the tea in reach for the British. The Boston…