Definition of the Tea Act 1773 (A BRITISH Action)
The Tea Act of 1773 was a British Law, passed by the Parliament of Great Britain on May 10, 1773, that was designed to bail out the British East India Company and expand the company's monopoly on the tea trade to all British Colonies, selling excess tea at a reduced price. The Tea Act was a follow-up to the laws in the Townshend Acts. Due to protests from British merchants, whose trade was seriously affected by the American colonists refusing to buy the goods, Parliament repealed all of the duties (taxes) - except the tax on tea. Not surprisingly, the American colonists continued to boycott tea. As a result of the boycotts, the East India Company had literally tons of tea in its London warehouses and was on the verge of bankruptcy. By 1772 the East India Company had 18 million pounds of unsold tea in warehouses and 1.3 million pounds of debt
The Tea Act imposed no new taxes
It gave a tea monopoly in the American colonies to the British East India Company
The Tea Act actually made the tea CHEAPER to the colonists than it had been before.
The British anticipated a good reception to the Tea Act in America, after all, the colonists would get their tea at a cost lower than ever before. Tea would be cheaper in America than Britain. Ships laden with more than half a million pounds of tea set off for the colonies shortly after the Tea Act was passed.
As a result of the Tea Act colonial merchants lost a lot of business and money because they could not sell illegal smuggled tea (because the legal and taxed tea was cheaper). While this tax was not entirely negative for most colonists, it was especially bad for merchants like John Hancock, who use propaganda to sway public opinion about how bad this tax actually was.
Why help the East India Company?
The American consumption of smuggled tea hurt the finances of the East India Company, which was already struggling through economic hardship. Although it was a private concern, the company played an integral role in Britain’s imperial economy and served as its conduit to the riches of the East Indies. A glut of tea and a diminished American market had left the company with tons of tea leaves rotting in its warehouses. In an effort to save the troubled enterprise, the British Parliament passed the Tea Act in 1773. The act granted the company the right to ship its tea directly to the colonies without first landing it in England, and to commission agents who would have the sole right to sell tea in the colonies. The act retained the duty on imported tea at its existing rate, but, since the company was no longer required to pay an additional tax in England, the Tea Act effectively lowered the price of the East India Company’s tea in the colonies.
Reaction of the Colonists to the Tea Act of 1773
The reaction of the American colonists to the Tea Act came as a shock to the British. Buying the tea would mean that the colonists had accepted paying the British import tax. The American colonists had not forgotten their outrage at the Stamp Act of 1765 and the efforts made to gain the political victory in having the hated act repealed.
Since the Colonies were not represented in Parliament, they saw the Tea Act as unconstitutional
Their cry of "No taxation without representation!" had not been forgotten.
The seeds of revolution had been sewn in the minds of many of the American colonists. The Sons of Liberty, and the Daughters of Liberty, had experienced a relatively calm period since the repeal of the Stamp Act and the Boston Massacre of 1770. The Tea Act stirred up all of the old feelings of resentment towards the British
Reaction to the Tea Act by the Colonists
The American colonists in the ports of Boston, New York, Philadelphia and Charleston had time to consider the implications and impact of the Tea Act before the ships laden with tea arrived in their harbors. They had time to plan their responses and what action they could take against the Tea Act:
The Sons of Liberty organized public demonstration against the British government
Public meetings were held - everyone got to hear about the Tea Act resulting in strong Anti-British attitudes
Americans decided they would continue to boycott tea from the British
The Sons of Liberty reorganized and owners and occupants of stores were warned against harboring the tea, and all who bought, sold or handled it, were threatened as enemies to the country
Colonists resolved to prevent the landing and sale of the teas - they wanted the tea to be sent back to England
The scene was set for confrontations when the ships laden with tea arrived at the ports of Boston, New York, Philadelphia and Charleston. The scene was set for the Boston Tea Party...