The Illegal Molasses Trade Was Largely with the French West Indies; of All the Illegal Commerce, the Molasses Trade Was the Most Benevolently "Indulged" by the Customs Officials

Of all the mercantilist measures that had not been enforced before 1763, perhaps the most important was the Molasses Act of 1733. This act had provided for a prohibitive duty of sixpence a gallon (amounting to 100 percent) on the import of foreign molasses, in order to grant inefficiently produced British West Indies sugar a monopoly of the American market. The molasses trade was vital to the North, which could sell its staples in the West Indies in exchange for molasses. The molasses could be used either as a sweetener or to produce rum, which could be then sold at home or exported. The illegal molasses trade was largely with the French West Indies (Guadeloupe, Martinique, San Domingo) and the Dutch West Indies ( Surinam, St. Eustatius). Of all the illegal commerce, the molasses trade was the most benevolently "indulged" by the customs officials. Domestic vessels were openly permitted to import foreign molasses on payment of a negligible duty, most of which was pocketed personally by the officials, as well as fresh fruit and wine directly from southern Europe. The duty charged in this way usually amounted to less than a half penny per gallon. This open indulgence put the molasses trade on a footing far different from that of most imports from Europe or the East Indies, which had to be smuggled secretly.

--Murray N. Rothbard, Advance to Revolution, 1760-1775, vol. 3 of Conceived in Liberty (Auburn, AL: Ludwig von Mises Institute, 2011), 805.

The Massachusetts Legislature Implied an Immunity of the Colonies from Parliamentary Taxation because of the Magna Carta, the Laws of Nature and of Nations, the Voice of Universal Reason, and God

The Massachusetts legislature promptly organized two committees, each dominated by their Boston members. One committee, headed by James Otis, instructed Massachusetts' London agent to urge repeal of the American Revenue Act, and wavered between a principled denial of the right of Parliament to tax the colonies, and a call for reduction in the molasses tax to a penny a gallon. The Massachusetts House sent this protest along with an essay by the great leader of the Boston liberals, the lawyer James Otis, Jr. The essay, "The State of the Rights of the Colonies," implied an immunity of the colonies from parliamentary taxation, and grounded its argument not only on the Magna Carta but also on common law and on "The laws of Nature and of Nations, the Voice of Universal Reason, and of God." The other House committee sent a circular letter at the end of June to the other colonies, urging a united colonial protest.

--Murray N. Rothbard, Advance to Revolution, 1760-1775, vol. 3 of Conceived in Liberty (Auburn, AL: Ludwig von Mises Institute, 2011), 812-813.