Tobacco in Colonial Virginia: "The Sovereign Remedy"Herndon, G. Melvin
History
Tobacco in Colonial Virginia: "The Sovereign Remedy"
Herndon, G. Melvin
Tobacco -- Virginia -- History; Virginia -- History -- Colonial period, ca. 1600-1775
Of the ninety-three inspection warehouses in operation in 1792, only
about twenty were above the Fall Line; but by 1820 at least half of the
137 legal inspections were above the Falls. Of the forty-two new
inspections established in the period 1800-1820 only three were in
Tidewater Virginia; one in Prince George County in 1807, one in Essex
County in 1810, and the third in Norfolk County in 1818, owing to the
opening of the Dismal Swamp Canal.
SALE OF THE LEAF
Under the original plan of colonization the Virginia settlers were to
pool their goods at the magazine, the general storehouse in Jamestown.
All of the products produced by the settlers, and all goods imported
into the colony were to be first brought to the magazine. In 1620 the
London Company made plans to abolish the magazine and open the trade to
the public. The colony was then forced to rely on peripatetic merchant
ships which came irregularly. These casual traders dealt directly with
the planters, going about from plantation to plantation collecting
their cargo. These merchants were without agents in the colonies, and
they relied solely upon the chance of selling their goods as they
passed the various plantation wharves. They usually sold their goods on
credit, expecting to collect their dues in tobacco on the return trip
the next year. Occasionally the crops were small, or they discovered
that most of the tobacco had been sold or seized by other traders, and
consequently they were forced to wait another year to collect from
their debtors.
The planter soon discovered that he was in an equally precarious
situation, and largely at the mercy of the merchant, for if he failed
to sell on the terms offered, another ship might not come his way until
the following year. The planter's bargaining power was also hampered by
his ignorance of market conditions abroad. Such conditions encouraged
the practices of engrossing and forestalling, by the merchants, to the
point that much legislation was passed to prohibit such actions.
Increasing competition by the Dutch traders gradually reduced the
dependence of the planter on the casual trading merchant. The danger
from pirates and frequent wars caused the English to inaugurate the
convoy system, which also helped improve the market conditions.
However, trading directly with the casual merchants was still common
after 1625, and a few still operated as late as 1700.
Public-domain text, read in full here on John Shaqi.
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