Stamp Act 1765

The Stamp Act 1765, also known as the Duties in American Colonies Act 1765 (5 Geo. 3. c. 12), was an act of the Parliament of Great Britain which imposed a direct tax on the British colonies in America and required that many printed materials in the colonies be produced on stamped paper from London which included an embossed revenue stamp. Printed materials included legal documents, magazines, playing cards, newspapers, and many other types of paper used throughout the colonies, and it had to be paid in British currency, not in colonial paper money.

The purpose of the tax was to pay for British military troops stationed in the American colonies after the French and Indian War, but the colonists had never feared a French invasion to begin with, and they contended that they had already paid their share of the war expenses. Colonists suggested that it was actually a matter of British patronage to surplus British officers and career soldiers who should be paid by London.

The Stamp Act 1765 was very unpopular among colonists. A majority considered it a violation of their rights as Englishmen to be taxed without their consent—consent that only the colonial legislatures could grant. Their slogan was "No taxation without representation". Colonial assemblies sent petitions and protests, and the Stamp Act Congress held in New York City was the first significant joint colonial response to any British measure when it petitioned Parliament and the King.

One member of the British Parliament argued that the American colonists were no different from the 90-percent of Great Britain who did not own property and thus could not vote, but who were nevertheless "virtually" represented by land-owning electors and representatives who had common interests with them. Daniel Dulany, a Maryland attorney and politician, disputed this assertion in a widely read pamphlet, arguing that the relations between the Americans and the English electors were "a knot too infirm to be relied on" for proper representation, "virtual" or otherwise. Local protest groups established Committees of Correspondence which created a loose coalition from New England to Maryland. Protests and demonstrations increased, often initiated by the Sons of Liberty and occasionally involving hanging of effigies. Very soon, all stamp tax distributors were intimidated into resigning their commissions, and the tax was never effectively collected.

Opposition to the Stamp Act 1765 was not limited to the colonies. British merchants and manufacturers pressured Parliament because their exports to the colonies were threatened by boycotts. The act was repealed on 18 March 1766 as a matter of expedience, but Parliament affirmed its power to legislate for the colonies "in all cases whatsoever" by also passing the Declaratory Act 1766. A series of new taxes and regulations then ensued—likewise opposed by the Americans. The episode played a major role in defining the 27 colonial grievances that were clearly stated within the text of the Indictment of George III section of the United States Declaration of Independence, enabling the organized colonial resistance which led to the American Revolution in 1775.

The British victory in the Seven Years' War (1756–1763), known in the United States and elsewhere as the French and Indian War, was won at great financial expense. During the war, the British national debt nearly doubled, rising from £72,289,673 in 1755 to almost £129,586,789 by 1764. Post-war expenses were expected to remain high because the Bute ministry decided in early 1763 to keep ten thousand British regulars in the American colonies, which would cost about £225,000 per year, equal to £42 million today. The primary reason for retaining such a large force was that demobilizing the army would put 1,500 officers out of work, many of whom were well-connected in Parliament. This made it politically prudent to retain a large peacetime establishment, but Britons were averse to maintaining a standing army at home so it was necessary to garrison most of the troops elsewhere.

The outbreak of Pontiac's War in May 1763 led to the Royal Proclamation of 1763 and the added duty of British soldiers to prevent outbreaks of violence between Native Americans and American colonists. 10,000 British troops were dispatched to the American frontier, with a primary motivation of the move being to provide billets for the officers who were part of the British patronage system. John Adams wrote disparagingly of the deployment, writing that "Revenue is still demanded from America, and appropriated to the maintenance of swarms of officers and pensioners in idleness and luxury".

George Grenville became prime minister in April 1763 after the failure of the short-lived Bute Ministry, and he had to find a way to pay for this large peacetime army. Raising taxes in Britain was out of the question, since there had been virulent protests in England against the Bute ministry's 1763 cider tax, with Bute being hanged in effigy. The Grenville ministry, therefore, decided that Parliament would raise this revenue by taxing the American colonists without their consent. This was something new; Parliament had previously passed measures to regulate trade in the colonies, but it had never before directly taxed the colonies to raise revenue.