American Revenue Act of 1764 (also known as the Sugar Act)

British Parliament was dealing with serious financial problems after the French and Indian War (also known globally as the Seven Years’ War). This was due to the cost of the war, the cost of governing the new territories, and the cost of keeping a standing army in the colonies. To fix this, they began passing tax acts to try and raise revenue (money). One of the first measures passed to raise revenue from the American colonies was a tax on sugar. This measure was called the American Revenue Act of 1764, or the Sugar Act. This act would replace an earlier 1733 tax on sugar and molasses. Both sugar and molasses were used to make rum, which was one of New England’s biggest exports.

Harsh Enforcement

The Sugar Act actually decreased the taxes from the earlier 1733 tax, but was more harshly enforced. This would bring in a lot more money for England. Also, if the colonists broke the law by smuggling in sugar or molasses or by not paying the required taxes, they would be tried by a Vice Admiralty Court. These were military courts that did not have juries and were less forgiving than general courts.

Consequences of the Sugar Act

Complaints against the Sugar Act were fairly low-key in the most of the colonies. This was possibly because many colonists saw the new Sugar Act as a replacement for the earlier act and not as a way to make money. Also, many merchants probably thought they would be able to get around paying this tax the same way they avoided the earlier Molasses Act.

Although many colonies were not majorly affected by the Sugar Act, New England was a different story. There was major resistance (protest) in New England where manufacturing rum was a big industry. Samuel Adams led the first protest to the Sugar Act in Boston. Adams tried to influence the local government and got many merchants to boycott (not buy) British goods. Boycotting became a tool colonists used to protest. A committee of five members, called the Committees of Correspondence, was chosen in June 1764 in Massachusetts. Committees like these coordinated written communication with other colonies. These groups were important in spreading information about British activities and coordinating common protests.

Sugar nippers were used like scissors to cut small pieces of white refined sugar from the cones in which it was sold. These small pieces were then put into the sugar bowls used when serving tea, or the sugar was ground with a mortar and pestle into the granulated form with which we’re more familiar today.

Currency Act of 1764

During the 1700s, “bills of credit” were typically used by governments in the colonies to represent silver or gold coins. This is because silver and gold were scarce in the colonies. Bills of credit made trade easier, but cut the British out of the deal since they were using gold and silver. The Currency Act of 1764 stated that colonists could no longer use bills of credits in official trades. The British government wanted more control over their economy. Many in the colonies blamed this act for causing economic failure. British merchants refused to be paid in bills of credit and demanded to be paid in hard currency (gold and silver). However, the Currency Act did not cause wide-spread protests in the colonies. Great Britain had banned the printing of colonial currency in certain colonies in earlier years. Many colonists saw this act as an extension of those earlier currency laws.

The American Revenue Act of 1764 (Sugar Act) and the Currency Act of 1764 did not majorly affect the relationship between Britain and the colonies. However, later laws and taxes like the Stamp Act, would cause further problems between Great Britain and the colonies.

Student Inquiry

1. Think about how much you use sugar on a daily basis. How do you think the Sugar Act would have affected your life? How would you react to it?
2. Do you think that Great Britain was justified in taxing the colonists? Why or why not?

Next: Stamp Act