In 1764, the Sugar Act, introduced by Prime Minister George Grenville, reduced the existing tax on molasses imported into North America from the French West Indies from six pence to three pence per gallon. But the act also established a new machinery to end widespread smuggling by colonial merchants. And to counteract the tendency of colonial juries to acquit merchants charged with violating trade regulations, it strengthened the admiralty courts, where accused smugglers could be judged without benefit of a jury trial. Thus, colonists saw the measure not as a welcome reduction in taxation but as an attempt to get them to pay a levy they would otherwise have evaded.
At the same time, a Revenue Act placed goods such as wool and hides, which had previously been traded freely with Holland, France, and southern Europe, on the enumerated list, meaning they had to be shipped through England. Together, these measures threatened the profits of colonial merchants and seemed certain to aggravate an already serious economic recession resulting from the end of the Seven Years’ War. They were accompanied by the Currency Act, which reaffirmed the earlier ban on colonial assemblies issuing paper as “legal tender”—that is, money that individuals are required to accept in payment of debts.
An engraving of James Otis graces the cover of the Boston Almanack for 1770. He is flanked by the ancient gods Hercules and Minerva (carrying a liberty cap).