The Economic History of Newport Rhode Island

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Thanks to the efforts of Roger Williams and the Rev. John Clarke Rhode Island was the first secular state of its time. There was religious freedom and no effective control by Britain over the colony. In this environment a free running economy developed based on international trading. During the time before the Revolution Newport was one of the biggest ports on the eastern seaboard. The British shut the port down for three years during the Revolution but the town recovered thanks to the French who arrived in 1780 with money. The economy recovered but Newport was again depressed during the War of 1812. There was an industrial revolution in Rhode Island in the 19th century that started with Slater Mill which put the Providence based merchants in a position to compete effectively with the Newport merchants. Newport shifted to a tourist and manufacturing economy.