ABSTRACT

The economy of British North America in the generation before the War of Independence is a case in point. British spending in colonies by the government, though largely for defence, was not confined to the army and navy and the Board of Ordinance. As far as the American colonies were concerned years until 1744 were characterised by rather low levels of British governmental expenditure. The data on overall British government spending in America could be analysed at much greater length, but their more important significance will be illustrated rather when that expenditure is related to the overall current account of the American colonies. Thereafter during 1760s and 1770s in the context of a rapidly maturing colonial economy, the importance of British government spending as an aspect of American invisible trade declined both absolutely and relatively. The cost of shipbuilding was a benefit to English shipbuilders, while Americans were given the crumbs when ships on the North American station needed repairs.