The battle over the Corn Laws was fought out in Great Britain as a domestic issue. But it had nevertheless a great imperial significance. During the mercantilistic régime the colonies had been regarded as a commercial appanage of the mother country. The victory of the free traders opened up a new era in the economic history of the empire. The colonies were released from the irksome restrictions of the Navigation Laws. They acquired the right to frame their own tariffs with a view to their own particular interests. In short, they ceased to be dependent communities and became self-governing states.

But the emancipation of the colonies was by no means complete. The home government still claimed the right to control their tariff policies. The colonies were privileged, indeed, to arrange their tariff schedules according to local needs; but it was expected that their tariff systems would conform to the fiscal policy of the mother land. The free traders, no less than the mercantilists, were determined to maintain the fiscal unity of the empire. There was still an imperial commercial policy; its motif only had been changed from protection to free trade. The colonies were still bound to the fiscal apron strings of the mother country; but the strings were no longer so short, nor the knots so tight as they had formerly been.