The Prime Minister Grenville framed the policies with the following objectives:
- The aim of the tax was to help finance the British troops in colonies. It also sought to reduce their debt which increased dramatically after the Seven Years Wars.
- Only the English currency should be used for business transactions.
- Direct taxes to be levied on colonies.
Following were the act passed under Grenville’s policy:
CUSTOM REFORM
- He convinced British Parliament to pass a law allowing smugglers to be tried at a new vice admiralty court.
- Unlike colonial courts where the judges were often sympathetic to smugglers but these courts were run by naval officers. Sending colonies to these courts also violated their right to a speedy trial.
SUGAR ACT
- Duty was imposed on molasses imported by the colonies. Despite efforts to smuggle colonist’s activists were curbed.
- Banned import of sugar from any other country except England.
- This was to compel the colonists to contribute towards meeting the expenses of British troops stationed in the colonies.
STAMP ACT
- It was the first direct tax imposed on the British Colonies in North America.
- The new tax required all legal documents including commercial contracts, newspapers, wills, marriage licenses, diplomas, pamphlets and playing cards in the American Colonies to carry a tax stamp.
- Under the severe violence and intense pressure, Britain repealed the act in 1766.