The colonialists’ attempts to safeguard local privileges from invasion of imperial authorities led to conflicts between Great Britain and American colonies from 1760s till 1770s. The underlying causes of the conflicts were debts from the Seven Year Wars and the Indian War for Independence (Copeland, 2000). Britain was also involved in constant warfare with France around the world and this led to enormous war debts. After these wars, British experienced massive destruction of manufacturers, general distress and fall of price of produce and of lands. Besides, there was an unsound credit-lending taking place simultaneously (Frank, 2008). Consequently, British Parliament decided to impose more taxes on the vast American colony. The colonists protested these new taxes by British Parliament to control the economic systems of the American colonies (Copeland, 2000). The indifferences between interpretation and of British constitution forced colonialist to open rebellion in 1775.
By the beginning of the American Revolution war, the colonialists had become financial dependent on American colonies relative to the colonies dependent on Britain (Morton, 2003). The risky investment coupled with negative balance of trade increased the unsustainability of the business for British investors (Frank, 2008). Consequently, the heavily indebted nation was on the verge of economic collapse. Therefore, many colonists felt that a costly war with the Americans was not a fight worth fighting