The linchpin of colonial administration under regulatory imperialism was the royal governor. The crown relied on royal governors to control the colony’s political agenda, especially on fiscal matters. Yet, in most colonies, assemblies managed to invert this plan and claim almost complete fiscal power for themselves – one of the most important developments under imperial administration in the New World. To explain this, the present chapter develops a strategic logic of bargaining between assemblies and governors and the accountability of governors to the crown. The logic shows how governors were able to make major political concessions to assemblies, yet evade accountability to the crown for them. As a result, regulatory imperialism was unable to restrain the independence of colonial legislatures.

This chapter explores the terms of letters patent for internal colonial government. It observes that every patent to a private colonizer prescribed a balanced colonial constitution: Some type of independent legislature in the colony, separate from the colonial executive, was to consult on laws and taxes. The chapter presents a strategic model to explain why this served the crown’s interest: An independent colonial legislature could restrain excessive extraction from colonists by colonial executives, which the crown itself – given the distance and its limited capacity – could not do.

This introductory chapter lays out the historical background of English New World colonization and sketches the argument of the book. It explains the English crown’s formal authority over colonization and introduces the principal–agent perspective as a framework to analyze the crown’s use of that authority. The chapter lays out the concept of contractual imperialism, or the early crown’s policy of early colonization embedded in letters patent to private colonizers, and of regulatory imperialism, or the later crown’s policy of regulating colonial political economies.