Site Content

For over two hundred and fifty years, England (later Great Britain) had followed an economic policy known as "mercantilism". The basis of this policy is that "global wealth is a finite entity. As such, a state should accumulate as much wealth as possible to fund its activities and drive state initiatives (such as building infrastructure, fighting wars, etc.)". The key to accumulating wealth was to export finished goods and staples while importing as few goods as possible. By doing this, it was believed that a favorable balance of trade would be created that would continually feed the mother country’s coffers. 

As applied to the British colonies in North America, mercantilism focused on obtaining raw material from the colonies, processing that material and selling finished British goods back to the colonies – thus creating a positive trade balance for Great Britain. In other words, the colonies existed to benefit Great Britain – Britain did not exist to benefit the colonies. 

To implement its mercantilist policy, Britain introduced a series of "Navigation Acts."  Under the law, Britain would formally tip the balance of trade in its favor by legislating what could be shipped – and how it would be shipped. For instance, foreign ships could not carry goods from Asia and the subcontinent, nor America, nor Africa to England unless English captains with English crews operated those ships. And breaking navigation laws could result in the seizure/forfeiture of the vessel carrying what was dubbed to be “contraband.”  These laws were unpopular in the colonies (because they restricted trade and enriched the mother country) -- and these laws contributed to American discontent with British rule (and ultimately to the American Revolution).

After the American Revolution, the newly formed "United States" needed to figure out how to govern itself -- and how it would relate to other countries on a trade basis.   One of the first actions the new country implemented was to get rid of the dissenters (Loyalists -- those who were loyal to King George during the Revolution were exiled from the new country).  Mostly, the Loyalists moved to British holdings in the Carribean and British North America (Canada), as well as to Spanish Florida.  Across Passamaquoddy Bay, a large group of Loyalists from Penobscot, Maine relocated to present-day St. Andrews, New Brunswick.

Because the "Penobscot Loyalists" were still governed by the British Navigation Acts, trade with the United States was severely restricted.   Accordingly, the Loyalists (who needed meat, flour, maritime goods, and more) subverted British Navigation Acts and smuggled goods into New Brunswick from Eastport.   In the United States, a hot market developed for gypsum (to neutralize acidic soil) -- and Nova Scotia and New Brunswick had gypsum in abundance.  Eastport, thus, became a hub for smuggling goods into and out of British North America. 

Attempts by each country to stop the smuggling of flour became known as the "Flour Wars."  Attempts to stop the smuggling of gypsum (gypsum was used to make plaster) became known as the "Plaster Wars."

Meanwhile, on February 24th, 1798, Eastport, Maine, was incorporated by the Massachusetts General Court as Plantation No. 8.  By 1800 the population of Eastport had reached 562. The census of 1800 showed 66 heads of household – with 83% being fishermen and only one resident listing his occupation as "farmer." 

British attempts to curb this smuggling resulted in the passage of laws to further restrict trade with the United States, and the United States countered with its own laws to restrict trade with Britain (example: the "Non-Importation Act").  Relations further soured when the British began to impress American sailors (the practice of capturing sailors deemed to be British and forcing them into British navy services).  

What was really transpiring at Eastport during these years was a battle between the British economic policy of mercantilism and America's free-trade policy. As long as Britain kept insisting on trade restrictions, Americans would try to find ways to circumvent British trade laws. On the other hand, the U.S. government, highly interested in treasury revenue, had stepped-up local customs controls and enforcement to generate revenue. This tug-of-war between the United States and Britain was about to end with further restrictions, embargos, and ultimately with war…

The inflection point for the Indigenous People of the region (the Passamaquoddies) was the return of some of their lands which the Passamaquoddy had lost all of their land by siding with the French during the French and Indian War -- but won some of it back by siding with the Americans during the American Revolution.  Also, during this time period, Congress passed the "The Non–Intercourse Act of 1790," – which gave Congress exclusive rights to negotiate with Indigenous People within the United States. (This series of acts would significantly impact Maine/Passamaquoddy relations almost 200 years later during the 1980s).

•