Economy of the Southern, Middle, and New England Colonies
England’s economy, like that of most European powers,
depended on trade. This was the result of an economic system called
mercantilism. Being that the colonies were originally established to enrich the
mother country, they were an important part of this system. Though the new
world didn’t have the vast amounts of silver and gold as they hoped for, the
colonies did have other goods that England needed. Thus, the American colonies
became a part of the Triangular Trade system. The Triangular Trade was a system
in which slaves, manufactured, and raw goods were traded amongst colonial
America, England, and Africa. In the first stage of the triangular trade,
manufactured goods were sent from Europe to Africa. Here these goods were
exchanged for African slaves, and then sent on the second leg of the trade to
the colonies. Once the slaves arrived, the colonists traded the slaves for raw
goods of their own to send back to England.
Though the colonies existed to enrich the mother country, they each had an internal economy that was based on trade as well. The people of the thirteen colonies traded with each other, as well as with the Indians and even some other countries.The Middle Colonies were considered the commercial center of the North American Colonies. They had an extremely large grain export and their growing season was much longer because of the hot climate. Their fertile soil was good for growing cash crops and food, as well as mass harvesting and the keeping of livestock. Factories in the Middle Colonies produced many goods including iron, paper, and textiles. In New England the land was rocky, and not ideal for growing a surplus of food. Most made their money by building ships and trading timber and fish. The southern economy was driven by the selling and trading of tobacco, slaves, and other cash crops. Other major southern crops include rice, cotton, and indigo.