Final answer:
The establishment of New Jersey as a proprietary colony was driven by Charles II and James's desire for economic gain through taxes and the awarding of land to loyal political supporters like Carteret and Berkeley. The colony's political structure allowed for religious freedom, attracting diverse settlers.
Step-by-step explanation:
The decision to establish New Jersey as a proprietary colony was influenced by both economic and political considerations during the English colonization of the New World. King Charles II and his brother James, later known as King James II, were motivated by the potential for economic gains through the imposition of taxes on commerce.
Additionally, the establishment of the colony served as a reward to their political allies, such as Sir George Carteret and Lord John Berkeley, for their loyalty. Naming the colony after Carteret's defense of Jersey Island during the English Civil War was a tribute to his loyalty.
These proprietors were granted extensive land ownership rights and claimed governance rights, even though their patent initially did not include such authority.
The political structure of New Jersey evolved through the "Concessions and Agreement," which outlined rights for the appointment of a governor and the establishment of an elected representative assembly. The provision for religious toleration attracted settlers like the Puritans and Quakers, who sought freedom from persecution.
However, the early governance of New Jersey faced multiple challenges, including disputes over land ownership, payment of taxes, and the legitimacy of the proprietors' governance.
Significant unrest and disputes with New York over governance rights complicated matters until James submitted the claim to arbitration, which favored Carteret. Eventually, both East and West Jersey suffered from mismanagement, leading to their transition into royal control by 1702, which consolidated the colony's governance under the English crown.