Notes

The Tea Act The Tea Act was Lord North’s attempt to rescue the British East India Company. This large trading company controlled all the trade between Great Britain and Asia. For years, it had been a moneymaker for Great Britain. But the American boycott of British tea hurt the company badly. By 1773, the tea company was in danger of going broke unless it could sell off the 17 million pounds of tea that were sitting in its London warehouses.
The Tea Act lowered the cost of tea that was sold by the British East India Company in the colonies. As a result, even taxed British tea became cheaper than smuggled Dutch tea. The Tea Act also gave the British East India Company a monopoly, or complete control, over tea sales in the colonies. From now on, the only merchants who could sell the bargain-priced tea were those chosen by the company.
Lord North may have thought he could persuade Americans to buy taxed tea by making it so cheap, but colonists weren’t fooled. They saw the Tea Act as still another attempt to tax them without their consent.
In addition, many merchants were alarmed by the East India Company’s monopoly over the tea trade. They wondered what the British government might try to control next. Would there be a monopoly on cloth? On sugar? Nervous merchants wondered what would happen to their businesses if other goods were also restricted.