The British Credit Crisis of 1772 and The American Colonies

Few stones have remained unturned in an effort to reconstruct Anglo-American history in the critical years from the Treaty of Paris in 1763 to the outbreak of the Revolution in 1775. Much has been learned by investigating such problems as public finance, colonial administration, and mercantile policy within the context of an expanded British empire. It is not always realized, however, that by the Treaty of 1763 Great Britain acquired new fields for capital investment as well as vast new lands to govern. In addition to taxation and public expenditure, such problems were raised as capital recruitment and allocation, the modification of financial institutions, and the adjustment of debtor-creditor relationships. Though distinct in certain respects, public and private finance impinged upon each other in the period from 1763 to 1775. This was especially the case after the British credit crisis of 1772, when, in addition to the controversy over tea, debtor-creditor relations between the thirteen colonies and the mother country underwent marked deterioration.