had full power to bind the colonies "in all cases whatsoever." Thus the Americans had their way in part, while submitting to seeing their arguments rejected.
The consequences of this unfortunate affair were to bring into sharp contrast the British and the American views of the status of the colonies. The former considered them as parts of the realm, subject like any other part to the legislative authority of King, Lords, and Commons. The contention of the colonists, arising naturally from the true situation in each colonial government, that the rights of Englishmen guaranteed their freedom from taxation without representation, was answered by the perfectly sound legal assertion that the colonists, like all the people of England, were "virtually" represented in the House of Commons. The words, in short, meant one thing in England, another thing in America. English speakers {38} and writers pointed to the scores of statutes affecting the colonies, calling attention especially to the export duties of the Navigation Act of 1672, and the import duties of the Act of 1733, not to mention its revision of 1764. Further, Parliament had regulated provincial coinage and money, had set up a postal service, and established rates. Although Parliament had not imposed any such tax as the Stamp Act, it had, so far as precedent showed, exercised financial powers on many occasions.
To meet the British appeal to history, the colonists developed the theory that commercial regulation, including the imposition of customs duties, was "external" and hence lay naturally within the scope of imperial legislation, but that "internal" taxation was necessarily in the hands of the colonial assemblies. There was sufficient plausibility in this claim to commend it to Pitt, who adopted it in his speeches, and to Benjamin Franklin, the agent for Pennsylvania, already well known as a "philosopher," who expounded it confidently when he was examined as an expert on American affairs at the bar of the Commons. It was, however, without any clear legal justification, and, as English speakers kept pointing out, it was wholly incompatible with the existence of a genuine imperial government. That it was {39} a perfectly practical distinction, in keeping with English customs, was also true; but that was not to be realized until three-quarters of a century later.
With the repeal of the objectionable law the uproar in America ceased, and, amid profuse expressions of gratitude to Pitt, the Ministry, and the King, the colonists returned to their normal activities. The other parts of the Grenville programme were not altered, and it was now possible for English Ministers, by a wise and steady policy, to improve the weak spots in the colonial system without giving undue offence to a population whose sensitiveness and obstinate devotion to entire self-government had been so powerfully shown. Unfortunately, the King again interposed his influence in such wise as to prevent any rational colonial policy. In the summer of 1766, tiring of the Rockingham Ministry, he managed to bring together an odd coalition of political groups under the nominal headship of the Duke of Grafton. Pitt, who disliked the family cliques, accepted office and the title of Earl of Chatham, hoping to lead a national Ministry. The other elements were in part Whig, and in part representatives of the so-called "King's Friends"--a growing body of more or less venal politicians who clung to George's support for the sake of the patronage to be {40} gained--and several genuine Tories who looked to a revived royal power to end the Whig monopoly. From such a Cabinet no consistent policy was to be expected, save under leadership of a man like Pitt. Unfortunately the latter was immediately taken with an illness which kept him out of public life for two years; and Grafton, the nominal Prime Minister, was utterly unable to hold his own against the influence and intrigues of the King. From the start, accordingly, the Ministry proved weak and unstable, and it allowed a new set of colonial quarrels to develop.
Charles Townshend, Chancellor of the Exchequer, one of the originators of the new colonial policy under the Bute Ministry, was so ill-advised as to renew the attempt to raise a colonial revenue by parliamentary taxation. His manner of proposing the measure gave the impression that it was a piece of sheer bravado on his part, intended to regain the prestige which he had lost by failing to carry all of his first budget; but the nature of the scheme indicates its close connection with the Grenville ideals. Avoiding the appearance of a direct internal tax, he caused the imposition of duties on glass, painters' colours, paper, and tea, without any pretence of regulating commerce, but for the announced purpose of defraying the expenses {41} of governors and judges in the colonies. Another measure established an American Board of Commissioners for
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