Posts Tagged ‘Taxation’

On gold, toothpullers and attempted revolutions

Tuesday, March 9th, 2010
 

Inconfidência Museum, Ouro Preto

Inconfidência Museum, Ouro Preto

 While a number of people will know that July 1789 marked the beginning of the French revolution, fewer may be aware of the Inconfidência Mineira (the Minas Gerais conspiracy), a rebellious movement which attempted to proclaim a Brazilian republic in February, that same year. 

Following the landing of Pedro Alvares Cabral at Porto Seguro in April 1500, Brazil became a Portuguese colony. Sugar rapidly ranked first of the colony’s exports, but once gold was discovered in Minas Gerais some time around 1693, gold mining soon replaced sugar as the main economic activity. A number of towns were built around this activity, such as Vila Rica, known today as Ouro Preto.

The extraction of gold was totally controlled by the Portuguese Crown. It was allowed on the condition that a payment of one fifth (the quinto) would be made to the colonial government. To ensure better control over the gold production, goldsmiths were driven out of the region, and foundries where established where the gold was cast into bars, and marked with the royal seal. Gold could only circulate in that form. As happened in other parts of the world, the heavy control and taxation eventually led to rebellious movements, such as those we have seen in the case of tea or salt.

A first rebellion took place in 1720: the Levante de Vila Rica (the Vila Rica uprising) demanded the relaxing of the drastic measures. The movement was fiercely repressed by the Governor, who ordered the arrest of the leader, Felipe dos Santos, and the burning of hundreds of houses in Ouro Podre where he owned many houses. The hamlet is now called Morro da Queimada. Dos Santos was eventually sentenced to death, hanged and his body quartered.

Tiradentes, proto-martyr

Tiradentes, proto-martyr

More than sixty years later, inspired by the 1776 American independence from yet another colonial power, as well as by the French philosophers of the Age of Enlightenment, the Inconfidência Mineira took place in 1789, also in Vila Rica. While books and other publications were being banned in the colony, the Inconfidência Museum in Ouro Preto displays clandestine editions of forbidden books, including a Recueil des loix constitutives des Etats-Unis, 1788, which is known in Brazil as Tiradentes’ book.

As gold mining was decreasing in the Minas Gerais captaincy, the Crown had asked for an additional tax on gold, the derrama. The plan was to start the rebellion on the day the derrama was to be instituted. The movement brought together a number of liberal thinkers who wanted to create a Republic, open harbours to stimulate trade with other nations, create a university.

Tiradentes, Brasilia

Tiradentes, Brasilia

The movement lacked cohesion however, with some of the members being republicans, while others were monarchists. Members of the conspiracy eventually denounced the proposed uprising. A long trial ensued in Rio de Janeiro. Joaquim José da Silva Xavier decided to assume responsibility of leader of the movement.

Here was his head..., Ouro Preto

Here was his head..., Ouro Preto

A dentist, he was given the nickname of Tiradentes (toothpuller) during the trial. While 11 of the conspirators, including famous Brazilian poet, Tomás Antônio Gonzaga, were banned to Mozambique and other Portuguese colonies in Africa, Tiradentes was sentenced to death. He was hanged in Rio de Janeiro in 1792, and his body, like Felipe dos Santos, quartered. To ensure proper publicity to the strong reaction of the Portuguese Crown to any rebellion, Tiradentes’ body parts were displayed in several towns. His head was placed in Vila Rica, while his house was torn down and salted.

Praca Tiradentes, Belo Horizonte

Praca Tiradentes, Belo Horizonte

Minas Gerais State flag, Tiradentes' house, Ouro Preto

Minas Gerais State flag, Tiradentes' house, Ouro Preto

Tiradentes has survived his execution to become a symbol of the struggle for Brazilian independence. The anniversary of his death is a national holiday and many Brazilian cities, including Brasilia, Belo Horizonte, or Ouro Preto have named a square after him, or display his statue.

The members of the Inconfidência Mineira had planned for a whole new way of life after independence, and had even designed a flag, which has since been adopted by the State of Minas Gerais. The motto reads: Libertas Quae Sera Tamen (Freedom, even if it be late).

Sugar, tea and sweet liberty

Saturday, November 7th, 2009

In some countries, it was salt - the French Cahiers de doleances famously illustrated the unpopularity of the gabelle tax, which eventually contributed to sparking the French Revolution -, in others it was sugar, in some it was tea. 

The Boston Tea Party is equally famous for having signalled the beginning of the American Revolution. To better understand the importance of the event - which involved the destruction of many crates of tea in the Boston harbour on Thursday, December 16, 1773 - it is useful to look back at how the taste for tea developed, and at the relationship between a scarce product and heavy taxation.

Interestingly, since both played a role in a revolution, salt and tea have had a similar history. According to an Arabian traveler, duties on salt and tea were the main sources of revenue in 9th Century Canton, China. After having established a trading port in Macau, in 1557, the Portuguese discovered and reported the existence of a Chinese drink called “chá”, but it is only in the early 17th century that a Dutch East India Company ship returning from China brought back the first green tea leaves to Amsterdam - an event which eventually contributed to the development of the tea culture in Europe.

Chinese and English teapots, 18th Century

It was a Portuguese princess, Catarina de Bragança, who, when she married King Charles II of England in 1662, brought to the English court the habit of drinking tea. Promoted as a medicinal beverage or a tonic, tea rapidly gained popularity in aristocratic circles.

Back in China, the tea trade was controlled by two monopolies: the Chinese Hongs and the British East India Company. Trade between Britain and China was going strong, but ships bringing English-made fabrics to India and China were returning only partially full. Tea had obvious potential and the East India Company initiated a campaign that popularized tea throughout Britain, making it a viable return cargo.

Sugarbowl, 18th Century

Sugarbowl, 18th Century

While the tea trade rapidly grew in England between 1690 and 1750, the cane sugar trade was facing a similar increase. A sweetened tea cup quickly became a daily necessity, resulting in rival companies being established to import tea from the East Indies.

In 1698, the East India Company was granted monopoly over tea importation, while the British colonies were required by a 1721 Act  to exclusively import their tea from Great Britain, thereby ensuring a steady source of income through the duties imposed on tea. This income was however challenged by smuggled Dutch tea which was serious competition to the highly-taxed legal tea.

Looking for additional revenue, the Parliament decided to enact a law allowing direct taxation on the colonies, including on tea. Colonists did not have direct representation through elected Parliament members: taxation without representation was rapidly perceived as unfair. Protests and boycotts started, with many colonists pledging to abstain from drinking British tea, while alternatives were being sought.

In spite of protest, additional tax legistlation was passed, including the 1767 Townshend Revenu Act: it was repelled in 1770, with the exception of duty on tea. Tea imports continued and Boston quickly became the largest colonial importer of legal tea: meanwhile the smuggled tea trade was also flourishing.  

A 1772 change in taxes brought yet another burden on the tea trade, with a new Tea Act, enacted on 10 May. With that, the market value of legally imported tea had become cheaper than smuggled tea by one penny per pound. The Act called for a system of consignees, colonial merchants who received tea on consigment and would sell tea for a commission, who were appointed in New York, Philadelphia, Boston and Charleston. Monopoly of the tea trade was given to the East India Company.

A protest movement, led by Whigs - who sometimes called themselves the Sons of Liberty -  quickly developed against the Tea Act, and in Philadelphia and New York, consignees were forced to resign, while tea shipments were being returned to England.

Samuel Adams in front of Faneuil Hall, Boston, MA

Samuel Adams in front of Faneuil Hall, Boston, MA

In Boston, however, Governor Hutchinson convinced consignees, two of whom were his sons, not to resign. Samuel Adams, a Whig leader, convened a mass meeting at Faneuil Hall on 29 November 1773. The meeting called for the Captain of the tea-carrying Dartmouth and two other ships to go back to England without delivering the tea and paying the import duty, which normally would have to be paid within 20 days of arrival. The Governor forbade the Captain to leave without paying the duties. On December 16, the issue was resolved when, following another meeting convened by Adams, a group of men - some of whom were disguised as Mohawks - boarded the ships and dumped the tea in the harbour.

Punished with the closing of the Boston harbour and the passing of the Coercive Acts, the event served to unite all parties in Britain against the colonies. Meanwhile, the reaction in the colonies varied: while Benjamin Franklin suggested that the value of the destroyed tea be repaid, others rallied around the fight for independence, which eventually led to the adoption in 1776 of the Declaration of Independence.

Paul Revere teapot, milk pot and spoons, 1773

Paul Revere teapot, milk pot and spoons, 1773

Famous patriot and silversmith Paul Revere, the son of French Huguenot Apollos Rivoire, produced for Bostonian wealthy families numerous silver services that included teapots, milk pots, tea spoons and tea tongues. Interestingly, in the portrait of Revere painted by his friend John Singleton Copley in 1768, it is a teapot that Copley decided to feature as the most emblematic of the silversmith’s craft, while that year, in support of the tea boycott, Revere only crafted one teapot. 

It is only in 1778 that the Tea Act was repealed with the Taxation of Colonies Act.

The Boston Tea Party is one of the more famous episodes of the fight against unfair taxation. In 1930, following the Indian salt protest campaign, Gandhi used duty-free salt to remind the British Viceroy of the Massachusetts event.