Agricultural development.—The original instructions had provided that the products of labor should belong to the community instead of to the individual, an arrangement by which the slothful profited at the expense of the industrious. During the first season, only four acres were cleared and planted. The insufficiency of the supply of grain made it necessary to depend upon the Indians for maize. In 1608 John Smith succeeded in getting forty acres of land broken, and the following year this was planted to maize. Just before the arrival of Delaware, the attempts at agriculture were abandoned, the colonists relying for subsistence on roots, herbs, nuts, berries, and fish. Delaware immediately set to work to right conditions, the hours of labor being set from six to ten in the morning, and from two to four in the afternoon.

When Dale took charge he forced the men to plant seed and assigned to each a garden. Livestock had been imported, and were allowed to roam at large in the woods. Dale erected a blockhouse on the mainland to protect them, and warned the settlers against letting stock wander. Henrico was selected as the site for another settlement and the town site of seven acres he caused to be fenced in. Other palings back of the settlement were erected and within the fenced areas corn was planted. On the south side of the river fences were built which protected a circuit of twelve miles, the enclosed land being used for a hog range. The lands of the Indians near the mouth of the Appamatox River were seized, fenced, and planted with maize.

In 1612 the cultivation of tobacco began, the first tobacco planter being John Rolfe, who had married Pocahontas. Tobacco soon became the only export, its cultivation absorbing the economic fife of the colony. To make certain of the food supply, Dale commanded that no one should be permitted to plant tobacco until he had planted two acres of grain. To encourage industry, Dale allowed some of the "old colonists" to lease three acres. He also put in force a rule that every man with a family who arrived in the colony should be provided with a house free of rent, tools, and livestock, and with subsistence for himself and family for the first year. If he confined himself to the planting of grain and vegetables, he was given twelve acres of fenced land. At the time of Dale's departure in 1616 there were three hundred and fifty inhabitants settled at Henrico, Bermuda, West and Shirley Hundreds, Jamestown, Kecoughtan, and Dale's Gift.

Immigration.—In 1619 twenty negroes were brought into Virginia, the first blacks to be introduced. Up to this time there were few women in the colony, but the company succeeded in sending over several ship-loads of unmarried women. Upon arrival there was à speedy courtship, and the lucky swain gladly paid a hundred and twenty pounds of the best tobacco for the cost of transportation. In general the type of settler was excellent, but in the later years of the company convicted felons and a large number of waifs and vagabonds from the streets of London were sent. The emigrants who had no capital were usually indented servants, the terms of indenture varying from two to seven years.

Growth of large estates.—In this early period began the formation of great estates. The company retained twelve thousand acres for itself. As new officers were created lands were set aside to support them. The treasurer, marshal, and cape merchant were each granted fifteen hundred acres, the physician and secretary five hundred acres each. The large estates were worked by tenants, the number on each estate being fixed by the company. Grants of large tracts were also made to groups of capitalists who agreed to bring out settlers.

The Indian massacre of 1622.—The reaching out for new lands for tobacco culture resulted in encroachment upon the fields of the Indians. Angered by this the Indians suddenly attacked the outlying plantations, killing between three and four hundred persons, nearly one-fourth of the entire population. The planting of the crops was interrupted and a winter of hardship followed. When the Indian maize crop was nearly ripe, the settlers retaliated, almost exterminating the natives along the lower courses of the James and York rivers.

Crown regulation of the tobacco industry.—To free himself from parliamentary control and to regulate industry, James I granted monopolies to private individuals. Royal commissioners were appointed to inspect the tobacco and to prevent smuggling, and planting in England was prohibited. In 1620 the London Company petitioned the king to do away with the tobacco monopoly and as a result the London and Bermuda companies were allowed to import fifty-five thousand pounds annually. The companies immediately attempted to ship Virginia tobacco to Holland; this led to a dispute with the privy council and the matter was discussed in parliament, where Sandys defended the right of free shipment. The dispute was settled by a compromise, by which the companies agreed to ship the entire product to England, and no restriction was placed upon the amount which they might import.

Neither side was entirely pleased with the arrangement and in November, 1622, an agreement was reached by the Lord Treasurer and the companies. The companies were given the sole right for seven years to import tobacco into England and Ireland; they were to pay into the royal exchequer the net proceeds of one-third of all tobacco imported; no tobacco was to be planted in England and Ireland, and a small amount of Spanish tobacco was to be imported for three years. Like previous arrangements, this did not meet with the approval of all, and it was annulled in 1623, the companies being allowed the exclusive right to import tobacco into England and Ireland, except a small amount of Spanish tobacco, and to pay a duty of nine pence a pound.

End of the London Company.—The king had looked with scant favor upon the administration of Sandys, for popular government was not to the liking of James. Friction between the king and the company also added to the royal displeasure. James, who was personally opposed to the use of tobacco, was also trying to please the Spanish court, which made frequent protests against the Virginia enterprise. Internal dissensions also disturbed the company, a group headed by Sir Thomas Smythe being opposed to the Sandys faction. Royal commissioners were appointed to examine the condition of affairs, and as a result of their report, in 1624 the charter of the London Company was annulled, the colony passing under the direct control of the crown.

Increase of population by 1625.—When Charles I came to the throne Virginia contained about twelve hundred inhabitants, of whom nearly five hundred were servants, and about a hundred were children. They were scattered through nineteen settlements, the largest being Elizabeth City, which contained two hundred and fifty-seven inhabitants. Jamestown had thirty-three houses and a population of one hundred and seventy-five.