The Planters of Colonial VirginiaWertenbaker, Thomas Jefferson
History
The Planters of Colonial Virginia
Wertenbaker, Thomas Jefferson
Slavery -- Virginia; Virginia -- Economic conditions; Virginia -- History -- Colonial period, ca. 1600-1775
The Crown reaped a rich return from tobacco, a return which grew not
only with the expansion of the trade, but by the imposition from time to
time of heavier duties. In the period from 1660 to 1685, when the tariff
remained at two pence a pound, the yield must have varied from £75,000
to £100,000. If we assume that the average consumption in England was
9,000,000 pounds and the average exports 3,000,000 the total revenue
would have been £81,250. In 1685, however, an additional duty of three
pence a pound was placed upon tobacco upon its arrival in England, all
of which was refunded when the product was re-exported. In 1688, when
the tobacco consumed in England was 8,328,800 pounds, the old and new
duties, amounting in all to five pence, must have yielded £173,515. When
to this is added £15,000 from the half penny a pound on the 7,200,000
pounds of leaf sent abroad, the total reaches £188,515.
In 1698 still another penny a pound was added to the tax, making a grand
total of six pence on colonial tobacco disposed of in England. This new
duty, together with the rapid increase in the foreign trade, enriched
the Exchequer by another £100,000. In 1699, if we assume that 12,000,000
pounds were consumed in England, the return would have been £300,000;
while half a penny a pound on 36,000,000 pounds of re-exported leaf,
would have brought the total to £375,000. That this figure was
approximately correct we have evidence in the statement of the author of
_The Present State of the Tobacco Plantations_, written in 1705, that
the revenue yielded by the tobacco of Virginia and Maryland amounted
annually to £400,000.[7-19] This sum constituted a very appreciable
proportion of the royal income, so appreciable in fact as to make the
tobacco trade a matter of vital importance in the eyes of the King's
ministers. They were charged at all times to avoid any contingency which
might lessen the imports and reduce the customs.
The increase in the tobacco trade stimulated industry, not only by
increasing exports to Virginia and Maryland, but also by creating a new
English industry. For most of the tobacco, before it was sent abroad,
was subjected to a process of manufacture, by which the leaf was cut and
rolled and otherwise prepared for the consumer. This industry gave
employment to hundreds of poor persons in England and required a
considerable outlay of capital.[7-20]
Public-domain text, read in full here on John Shaqi.
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