Charter Colonies

Charter Colony: Definition

Charter colonies used a royal charter (an agreement) rather than the direct rule of the British monarchy. There were two types of charter colonies:

Allowing corporations to manage colonial settlements was an important tool of British expansion. The monarchy intended for corporations to act as an extension of the state and to advance British business interests. However, the period of corporate rule did not last long.

Therefore, the British monarchy transformed its corporate-charter settlements into royal colonies (crown colonies) to control them.

Differences Between Proprietary Colony and Charter Colonies

The charter colonies are also sometimes called “corporate colonies” because some charters were granted to corporations (joint-stock companies). The charter colonies were one of the four administrative types controlled by Britain in North America.

The other colony types were:

• proprietary,
• trustee,
• and royal (crown) colonies.

The North American colonies were also divided geographically: New England Colonies, the Middle Colonies, and the Southern Colonies.

Charter Colony: Examples

Each charter colony represents a unique case study.

List of Charter Colonies

• Massachusetts Bay
• Virginia
• Rhode Island
• Connecticut

Virginia and the Virginia Company of London

King James I issued a royal charter to the Virginia Company of London (1606-1624). The British state allowed the company to expand into North America between latitudes 34° and 41° N. Upon establishing Jamestown (1607), the initial years of the settlement were tough.

At first, the local Powhatan tribe aided the settlers with supplies. Over time, however, the European settlement expanded onto the tribe’s lands, and this relationship deteriorated. In 1609, the colony used a new charter, and by 1619 it established the General Assembly and other local governing structures.

Ultimately, the Virginia Company was dissolved because:

1. The British King disliked tobacco as much as he did the establishment of local colonial rule in Virginia.
2. Another catalyst for the Company’s demise was the 1622 Massacre at the hands of the Indigenous people.

As a result, the King converted Virginia into a royal colony in 1624.

Fig. 2 - Banner of Arms of the Virginia Company

Massachusetts Bay Colony and the Massachusetts Bay Company

In the case of the Massachusetts Bay Colony, it was King Charles I that granted a royal corporate charter to the Massachusetts Bay Company similar to that of Virginia. The Company was allowed to colonize the land located between the Merrimack and Charles Rivers. The Company, however, established a local government that was somewhat independent of Britain by granting the charter to Massachusetts. This decision paved the way for other attempts to gain autonomy, such as the resistance to the British Navigation Acts.

The Puritan settlers founded several cities including Boston, Dorchester, and Watertown. By the middle of the 17^th century, more than 20,000 settlers populated this area. In light of the Puritans' strict religious beliefs, they also formed a theocratic government and only included the members of their Church.

The colony’s economy relied on a variety of industries:

• fishing,
• forestry, and
• shipbuilding.

The British protectionist Navigation Act of 1651 damaged the colony’s international trading relationship with other European powers and forced some merchants into smuggling. As a result, Britain’s trade regulations left the residents in the colonies discontent. Eventually, Britain responded by exerting greater control over its colony:

1. First, the British crown repealed its charter from the Massachusetts Bay Company in 1684.
2. Then Britain converted it to a royal colony in 1691-1692.

Maine and the Plymouth Colony joined Massachusetts Bay as part of this conversion.

Fig. 3 - The Seal of the Massachusetts Bay Colony

Rhode Island

A number of religious refugees from the Puritan-run Massachusetts Bay Colony led by Roger Williams founded the colony of Rhode Island at Providence in 1636. In 1663, the Rhode Island colony received a royal charter from British King Charles II. The charter documented the freedom of worship and allowed for a significant degree of autonomy as compared to other colonies.

This exceptional level of self-rule gradually alienated Rhode Island from its mother country. In 1769, the residents of Rhode Island burned a British revenue ship in order to display their growing dissatisfaction with British rule. They were also the first to declare independence from Britain in May of 1776.

Connecticut

A number of Puritans, including John Davenport and Theophilus Eaton, founded Connecticut in 1638. Eventually, British King Charles II also granted a royal charter to Connecticut via John Winthrop Jr. a year prior to Rhode Island. The charter unified Connecticut with the New Haven Colony. Like Rhode Island, Connecticut also enjoyed a degree of autonomy although it was still subject to the laws of Britain.

Colonial Government: Hierarchy

Up until the American Revolution, the ultimate authority for all Thirteen Colonies was the British crown. The specific relationship with the crown depended on the type of colony.

Charter Colonies: Administration

The administration of charter colonies often included:

• a governor with executive power;
• a group of legislators.

It is important to remember that only property-owning men of European descent were allowed to participate in elections at this time.

Some historians believe that the administrative hierarchy between each colony and the British crown was vague despite the fact that before the American Revolution most settlements became royal colonies.

Some of the bodies in Britain responsible for colonial management included:

• Secretary of State for the Southern Department (Secretary of State for Colonial Affairs after 1768);
• Privy Council;
• Board of Trade.

Fig. 4 - King George III, the last British monarch to rule over the Thirteen Colonies

The Establishment of American Independence

Despite the differences between the Thirteen Colonies, what eventually united them was the growing discontent with being controlled by Britain.

• One essential reason for dissatisfaction was a series of British regulations such as the Navigation Acts. These Acts protected British trade at the expense of the American colonies. For example, these regulations only allowed for the use of British ships and applied tariffs (taxes) to foreign goods within the framework of Early Modern mercantilism.

A similar regulation, the Molasses Act of 1733, taxed imported molasses from the French colonies in the West Indies and harmed the New England rum production. Britain also introduced the Stamp Act of 1765 to raise revenue and cover war debts by taxing a variety of paper products in the colonies. As time went on, Britain’s enforcement of these regulations became more stringent. Tariffs on foreign goods and direct taxation led to the growing discontent in the American colonies over taxation without representation in the British Parliament. Many people in the American colonies also had few or no ties to Britain. These factors eventually led to the American Revolution of 1776.