Virginia Company: Profits or Loses, 1606-1624
During inception the natives agreed to trading provisions to the colonists in exchange for metal tools. In 1609 John Smith the governor, started establishing raiding parties for food from the natives. The Powhatan fled further away from the Jamestown fort which caused a period of famine for the English from 1609-10. Many investors including The London Company became concerned about the future of the Virginia Company and how it would survive. Peace had been established and both parties knew they could benefit off of one another. The Powhatan wanted metal hatchets and copper and the colonist needed food. This didn’t last long before the Powhatan figured out the true intentions of the colonists. “Your…
The Virginia Company was having issues with profits and the attitude of the settlers. A new Company Treasurer was selected, his name was Sir Edwin Sandys. He instated many reforms and believed manufacturing was being diluted by lack of manpower. He combatted the issue of low morale with rewarding the investors by distributing 100 acres of land to each adventure. This became known as the Virginia headright system. The system also gave 50 acres to any person who paid his or her own way and 50 acres more for each person they brought. The idea of reward for the colonist sparked motivation and exploration, this in turn created productive work. Tobacco quickly became a profitable cash crop and the colony wanted to plant it excessively. By 1617 tobacco exports from Virginia to England totaled over 20,000 pounds. And by 1620 colonist had sent back more than 50,000 pounds, by the end of the decade the amount had reached an astonishing 1.5 million pounds of tobacco sent back to England. The Company discouraged the planting of this crop because it took interest away from corn. The issue arose that there wasn’t enough food to feed the manpower. This was solved in 1619 when a Dutch man-of-war arrived carrying captive Africans. The slave labor became the colony’s foundation for economics and society. The Powhatan business had been becoming more distant but came into full view in 1622 when the Indian Massacre of 1622 took place. 347 colonist were killed which amounted to be a quarter of the English population of the Virginia…
