During the Seven Years War the British economy had expanded
rapidly to meet the demands of equipping the army and navy as well
as subsidizing Britain's European allies. After the war, the
economy was left without sufficient markets to absorb the extra
production. This situation led to a persistent drive to open new
markets, especially in the American colonies. When the British
decided to maintain an army in America after 1764, these troops
became a major market for the colonists who provided them with
beef, pork, flour, and rum. Colonists also sold manufactured goods
to French settlers in Illinois and fur traders west of the
Mississippi.
Organization of this trade to provide the most cost-effective
means of supplying goods to the frontier was achieved through
refinements in financial, transportation, and production
techniques. By the end of 1768, competition between American
merchants increased, and prices dropped dramatically. Meanwhile,
British troops began moving back toward the East Coast, further
depriving the colonial merchants of a major market. This period
marked a severe setback for colonial merchants on the frontier and
added fuel to the fires of discontent with British policies.
General
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