erican
colonies. To this was added a new principle--the Navigation Acts should
not only regulate trade, they should produce revenue. Cleverly designed
within the constitutional system, the Sugar Act brought howls of
protests from New England and Middle Colony traders, smugglers and
legitimate operators alike, who had flourished under the benevolence of
"salutary neglect" for the past half-century. For many Americans the
new act with its favoritism to British and West Indian merchants, its
use of the navy as law enforcer, and the founding of a vice-admiralty
court in Nova Scotia with jurisdiction over all America was an abuse of
parliament's power. As events developed the Sugar Act was a failure.
The old act designed for regulatory purposes, cost approximately three
times as much to enforce as the revenues collected; the new act,
expected to produce annual revenues of about L100,000, averaged about
L20,000 in revenues at an annual cost of over L200,000.

The Currency Act of 1764

Virginians, only indirectly effected by the Sugar Act, were deeply
effected by the second part of the Grenville program--the Currency Act
of 1764. During the French and Indian War Virginia had printed several
paper money issues to finance the war and provide currency in the
specie-short colony. The various issues, eventually totaling over
L500,000, circulated for a fixed number of years and then were to be
redeemed upon presentation to the treasurer, Speaker John Robinson. As
the war lengthened and the number of paper money issues increased,
considerable confusion developed over the amount of money outstanding,
the rate of exchange, and its use as legal tender for personal debts as
well as public taxes. Although backed by the "good will" of the General
Assembly, this money (called "current money") was discounted when used
to pay debts contracted in pounds sterling. Although the official
exchange rate set by the assembly was L125, Virginia current money
equalled L130-L165 per L100 sterling, averaging L155-L160 in 1763 and
early 1764. The citizens were compelled by law to accept inflated
Virginia paper currency as legal tender for debts which they had
contracted in pounds sterling. The fiscal problems were most critical
in Virginia, but they also existed in most colonies outside New England
whose colonies parliament restricted under a currency act in 1751. In
response to pleas from London merchants, Grenville devised and
parliament passed the