advised Burnet in New York Burnet's connections to the court procured for him an appointment as the
Comptroller of Customs in Great Britain. He also invested heavily in the
South Sea Company, whose collapse in 1720 led him to consider more lucrative positions in the North American colonies. Correspondence with a longtime friend,
Robert Hunter, who returned to England in 1719 provided an opportunity: Hunter was then the governor of
New York and
New Jersey, and he had returned to England for a variety of personal reasons, intending to divest himself of those posts. Hunter and Burnet were both well-connected to the
Whig government then in power, so an exchange of their offices was readily approved.
New Jersey Burnet's tenure as New Jersey governor was marked by disputes over the issuance of
bills of credit and the granting of a permanent salary. Bills of credit, in addition to providing funding for the province's expenses, also circulated as local currency. Issuance of large quantities of such bills had an
inflationary tendency to devalue them relative to the
pound sterling. Burnet was under instructions to disallow their issuance except under certain conditions. When the provincial assembly in 1721 approved a bill that called for the issuance of £40,000 in bills secured by property mortgages Burnet dissolved the assembly. However, he approved similar legislation in 1723 in exchange for the legislature's approval of a five-year salary plan. This method by which the assembly essentially bribed the governor for his agreement in violation of instructions became somewhat normal practice in New Jersey with later governors.
New York In New York Burnet sided with the large landowners of the province; based on their advice he refused to call elections for the provincial assembly, keeping an assembly dominated by "court party" members for five years. His relationship with the New York assembly only deteriorated after several special elections resulted in the addition of enough "country party" members to elect a hostile speaker. Although he sought to broaden the province's tax base to include larger real estate holdings, the powerful property owners who dominated the assembly and the court party were successful in deflecting these efforts into taxes on merchant interests. One tax, levied on the tonnage of ships docking in New York, led to a rise in smuggling between New Jersey and New York. Eight months after his arrival in New York, in May 1721, Burnet married again. His bride was Anna Maria Van Horne, the daughter of Abraham and Mary Van Horne and a relative by marriage of
Robert Livingston, a powerful New York landowner and one of Burnet's chief advisors. They had four children; she and the last child died not long after its birth in 1727.
Indian trading policy One of the more important aspects of Burnet's tenure in New York was his attempts to strengthen the colony's position on the frontier, and its relations with the
Iroquois who then controlled most of what is now upstate New York. Since the Iroquois had
achieved peace with
New France in 1701, a vibrant trade had begun between New York merchants in
Albany and French merchants in
Montreal. English goods were sold to French traders, who bartered those goods for
furs with Native American tribes in central North America. British colonial administrators sought to alter this method of trade, instructing Burnet to direct the trade through the Iroquois lands instead of through Montreal, bringing an end to the Albany-Montreal trade. as it would have appeared in 1727 Not long after his arrival in New York, Burnet had the assembly pass a law banning the Albany-Montreal trade. This action earned him opposition from merchant interests that traded directly with New France, including the
Huguenot Stephen DeLancey and other Albany merchants. Two vocal merchants,
Adolph Philipse and
Pieter Schuyler, sat on the governor's council, and were removed by Burnet in 1721. The law was fairly easily circumvented: the merchants routed the trade goods through nearby
Mohawks who then carried goods to and from Montreal. A law stiffening enforcement of the trade ban was passed in 1722. These policies caused protest not only in New York, but also in
London, where British merchants argued that they were having a negative impact on trade volume to Europe. In 1723 Burnet was informed that the French had begun construction of
Fort Niagara at the western end of
Lake Ontario; this action presented a clear threat to British attempts to more directly access and control the fur trade. He consequently ordered the construction of
Fort Oswego at the mouth of the
Oswego River. This decision not only upset Albany traders, who would lose their monopoly on the fur trade, but also upset the French (because it gave the British direct access to Lake Ontario) and the Iroquois, who had wanted a fort sited at
Lake Oneida instead. Burnet tried to placate the Iroquois by stationing militia forces in the Oneida area, but they also resented this intrusion. In the following years the assembly was noticeably more hostile to his rule The trade ban was repealed in 1726 and replaced by a system of taxation designed to prefer western trade over the Albany-Montreal trade. By the time of his departure in 1727 it was clear that this policy was also not working, and in some cases was having negative effects. All laws respecting Indian trade that passed during his administration were repealed in 1729; the only long-term effects were the establishment of the British military presence at Oswego, and the breaking of Albany's monopoly on trade. Burnet also left New York more fractionally divided between merchants and landowners than when he arrived.
Replacement In 1727 King
George I died, an event that required the renewal of royal commissions.
George II decided to give the New York and New Jersey governorships to Colonel
John Montgomerie, who had served him as a
Groom of the Bedchamber. Burnet was instead given appointment as governor of
Massachusetts and
New Hampshire. After it became known in New York that Burnet would be replaced, the assembly, at the instigation of Stephen DeLancey, as a parting shot formally protested Burnet's actions as a
chancery court judge, declaring that his judgments would be null and void. ==Governor of Massachusetts and New Hampshire==