VIRGINIA: The London Company
Copyright © Henry J. Sage 1996-2005
The London Company was organized and chartered by the Crown as an investment opportunity that would help make England stronger and reap rewards for those who dared to “adventure” their capital—or their persons—in America. The company soon discovered that the gold in America was the land, but that money and labor were needed to exploit it. Therefore the company used various recruiting schemes in an attempt to lure more people to invest in and/or go to Virginia, but its only real asset was the land. As has been noted elsewhere in these pages, the problem in Europe was finding enough land for the people: in America, the reverse was true—there was plenty of land but too few people to develop it profitably. The fact that labor was more valuable than land constantly undermined traditional European ideas of class and position in America; in fact, one can detect early seeds of rebellion and faint democratic stirrings even in the early colonies.
Many plans were used to try to increase the labor supply, including the use of Indians as slaves. The critical shortage of labor also contributed to the growth of slavery. While the Indians were excellent farmers, they did not take to slavery, and since they could easily escape that experiment failed. Even as farmers Indians were not as wedded to the idea of land ownership as Europeans; in fact, most Indians didn't understand the concept of individual ownership of land. Furthermore, idleness was a virtue among male Indians. They often laughed at white men farming, or doing "women's work."
(It should be mentioned here that Africans did not take to slavery any more than Indians, but were much less able to escape, since they were in alien country and had no place to which the could safely flee.)
The Virginia settlers were patriots, Christians, men seeking personal profit and betterment of their economic circumstances. They were urged to come "for the good of your country and your own, to serve and fear God . . ." Emigration to America became a selection process. The temperament and personality of the settler was that of someone searching for the unknown-escaping from the intolerable. Those who decided to come began what we might call the American gene pool.
The goals of the companies and to some extent of the settlers were to secure a place, find gold, civilize the natives, find river to India. Indians were seen both as laborers and as potential consumers of European goods: it was a form of economic imperialism, later called the "last stage of capitalism!" As it turned out, there were indeed plentiful opportunities of all kinds, including opportunities for political power not available in England.
NOTE: A class system did evolve in Virginia, which was the most aristocratic of the colonies; Virginians believed in rule by elite, though that elite might be based on achievement and wealth rather than by name or birthright. Virginia started out as a "white male democracy," in a limited sense, but that system also evolved.
THE JAMESTOWN DISASTER
Summary: The Jamestown experience was “ten disastrous years.”-Every possible mistake was made and then some ... Murphy's law-everything that could go wrong did go wrong, or so it seemed.
The London Company settled a colony at Jamestown in 1607. The colony was an immediate disaster. The location-in a swamp-had been a mistake, but even worse was the failure of the colonists to work together for the common good. Captain John Smith saved the colonists by imposing order but conditions became so bad by 1610 that the colony was almost abandoned. As late as 1616 the colony seemed to be incapable of returning a profit to the investors. Eventually it went bankrupt and its charter was revoked.
It is not clear why the Virginia settlers were so reluctant to work, but it may have had to do with attitudes from home. Because there was not enough work to go around, the chronic condition of English worker was one of underemployment. Even when work was available it was cyclical or irregular. Furthermore, probably as a result of those conditions, English workers lacked what we would call a work ethic. People were used to being idle and were frequently short of basic necessities. The working poor lived marginal lives at best. They knew that there must be greener pastures somewhere, and many came to believe that "Utopia" could literally be found across the Atlantic. And so they came, by the hundreds, thousands and eventually by the millions.
For an account of the difficulties in Jamestown, read the excerpt from Captain John Smith's “Generall Historie of Virginia,” which was printed in 1624. He describes his own adventures but also offers a grim account of the “starving time.”
JAMESTOWN CHRONOLOGY:
| 1606 | Charter Issued. See Virginia Company Charter |
| 1607 | The first ships arrive. See John Smith's History |
| 1610 | Company stock was opened to public investors-Membership cost 12 pounds ten. By May 9 vessels with 600 passengers were underway. Wealthy London merchants invested in hopes of making profits, but no one ever made a farthing. |
| 1609-10 | Expedition shipwrecked underway, leaders lost. Survivors bickered among themselves; in this winter of horror-4/5 of the colonists died. |
| 1610 | Lord Delaware arrives with reinforcements. The Company Council in London realizes that Virginia a long-term investment that will pay off in national prosperity if successful. Thus raising additional funds was seen as a patriotic chore. By 1611 the purpose was understood to be the use and exploitation of land, but that required people. |
| 1612 | A new charter added Bermuda to the London Company as an added attraction. Company control was granted to the owners and members, and the Council served as their liaison with the Crown. A new legal code was passed that guaranteed rule according to the principles of English law. |
| 1614 | Settlers now becoming "seasoned"-accustomed to the climate and more resistant to disease. The colony was somewhat more stable, after having nearly been abandoned a few years earlier. |
| 1616 | The colony had originally been organized with community ownership of all assets. The settlers shared food, tools, products, jobs, and theoretically even the profits. In 1616, however, that experiment was terminated and all the assets were divided up among the members. The first experiment in pure communism in America did not work.
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| 1617 | Tobacco takes hold. Growing requires little skill, so landowners can do well if they can find people to work the crops. By 1688 Virginia is producing 18 million pounds of tobacco annually. About this time the headright established which gives 100 acres to those willing to settle the land as well as 100 acres for each person they can bring over at their own expense. |
| 1619 | The first representative assembly in North America is created. Its purpose is to advise Governor Yeardley-since the Company is struggling, perhaps those on the scene can help with the management. The best way to get the cooperation of the settlers is by allowing them to participate in government in a limited way. A “Dutch man of war” drops anchor in Jamestown and trades 20 African slaves for “victuals.” [See Lerone Bennett, Before the Mayflower: A History of Back America] Slave owners began to establish the power structure and life style of the Southern colonies. |
| 1622-23 | An attack of the plague and raids by Indians nearly wipe out the colony-only 1200 are left alive by the end of 1623. The company is bankrupt and all support is gone. |
| 1624 | The London Company charter is revoked. The survivors inherit the land in the colony-within 10 years they own it free and clear. |
Lessons of Virginia and Jamestown:
Noted with Irony:
BACON'S REBELLION OF 1676
In 1676 settlers in western Virginia started a revolution against the Governor William Berkeley, led by a recent immigrant named Nathaniel Bacon. The settlers in the Piedmont region were still dealing with hostile Indians in 1676, and when the government seemed unable to respond for their requests for assistance in suppressing Indian harassment, the Western citizens revolted. After fighting the Indians, they marched on Jamestown and set it afire; then they drove Governor Berkeley over to Maryland.
When Bacon suddenly died, the rebellion collapsed, but repercussions were felt back in England, where even the king was aware. When he heard of the punishments handed down by Governor Berkeley, King Charles II complained that Berkeley had hanged more people than the King himself had over the execution of his father, Charles I.
Bacon's rebellion is an interesting forerunner of the American Revolution and pointed up the differences between Tidewater and inland Virginians. It is also faintly connected with the rebellion of the western Virginia counties in 1861, who broke away over the secession issue and became the state of West Virginia in 1863.
History 121 Assignments | Updated January 14, 2007