Markets for

Sugar and
Rum
 Introduction
This presentation will give a brief description of the sugar and rum
revolution and the effects it had on the people. The dethronement
of the Dutch in the sugar market by the British will be explained . The
profits the product gained and its overnight richness it gave the
agents and farmers will be profoundly expalined.
 Objectives:
After the lesson students must be able to:
• Identify, the markets In which Caribbean sugar and rum were sold.

• State the provisions of the Navigation Acts ano explain their intent.

• Describe the problems encountered In making sugar and Its by-

products.
 Control of trade and Navigation Acts
The sugar trade was a very lucrative business, and it
replenished the British economy unlike the Dutch. The
Dutch controlled the early sugar trade, they were the
middlemen for planters. This means, the Dutch bought the
sugar from the producers and sell it to the planters. Risks
was taken, they provided expertise, gave credit and sold the
sugar in European ports. The imperial government sought to
control the trade because it became more profitable, by
doing so they placed legal restrictions on foreign
Involvement which targeted the Dutch. This idea caused the
Dutch economy to fluctuate.
 Merchantilism
Mercantilism was based on the theory that all trade should be
monopolised by the mother country and foreigners excluded. This
implies that the mother country would predominate all the trade
markets and secure all the profits without a competitor. The
foreigners are excluded to prevent decrease in profits and also to
prevent their country from getting wealthier. Foreign goods were
discouraged and colonies were not allowed to develop industries.
Thus, the mother country would not want foreign countries to
benefit from trades also not to lose customers. The colonies were
not allowed to develop industries so their economy would slump
and the people would not really benefit from it. Hence, the soil land
wanted all the wealth and power and no competition so that their
economy can be substantial.
 The Navigation Acts
The British were the first to impose mercantilist laws aimed at breaking the
Dutch monopoly. The Navigation Acts was estabilished 1650 and 1651. The Acts
stated that:
• all English trade was to be carried in English vessels.
• foreign ships were banned from transporting goods from England or its
colonies.
The Dutch control of trade In the region ended due to the
Tariff Act of 1661 and Staple Act of 1663. Meaning a law that enforced tax to be
paid on imported or exported goods resulting the slump of Dutch economy.
The Minister of Finance Jean-Baptiste Colbert passed French navigation laws in
1662, preventing foreigners from owning property In the colonies.

Did you Know?? Jean-Baptiste Colbert created "L'Exclusif", was a legal system
that targeted the Dutch monopoly.
 Shipping
Sugar and rum carried by the ships, offloaded into warehouses. Agents
took care of all shipping costs including freight, Insurance ano porterage
charges, ship duties and warehousing.
Return ships carried supplies needed by the planters, such as food,
liquor, clothes, tools, equipment and machinery. England banned third
party ships from transporting goods with the aim of excluding the Dutch
from any form of British trade.
 The Risks
There were countless risks that farmers and agents faced:
• fires, insurrection (rebellion) , natural disasters that slowed and/ or reduced
production.
tropical storms, pirates, running aground (shipwreck) and war resulting in
the loss of a ship and its cargo.
• dishonest agents who committed fraud and embezzlement causing losses to
planters.
• sudden price drop due to poor market conditions, low demand and glut.
• insufficient, unsuitable and unreliable shipping causing delays and cargo
rolling.
 The Profits
The high demand of sugar and rum increased the profits causing planters
and agents being very rich. The planters of Barbados, Jamaica and St.
Domingue, during the 17th and 18th century became rich overnight.
The islands became so commercial that they were called the 'Jewels of the
empire' in England and France.
Sugar and rum profits was soley relied on high prices. During the 17th and
18th century the Europe's population was increasing, wages were higher
than before and sugar superseded honey as the major sweeter since sugar
was better in quality. Demand and prices were high. At one point sugar sold
at a shilling a pound. mperial powers profited from sugar. Tariffs, duties and
taxes brought significant revenue.
 Key Points
• The sugar trade was first controlled by the Dutch after which
merchants from the Imperial countries took control.
• Mercantilism was a policy that protect the wealth of a nation.
• The Navigation Acts prevented foreign nations from taking a share
of other nations' wealth.
• Shipping sugar and rum was organised by agents who took care of
alt the details.
• Planters could become bankrupt due to storms, devious agents
ano low price of sugar.
• Between the 1600s and 1700s planters and Imperial states
became rich based on good prices for sugar.