Part of this fortune came to him through a monopoly of the beaver trade with the Indians. He seems to have cashed in on this by licensing the traders on the frontier and taking a large part of their profits. Though he had trouble in collecting his dues, he received each year several hundred pounds of beaver fur. His obedient Assembly added to his wealth by voting him money from time to time. This they excused to the indigent tax payers as due him for what he had laid out in "beneficial designs." But the poor planter, in his rags, leaning on his hoe in his little tobacco patch, secretly cursed as Lady Berkeley drove past in her coach.
The people complained bitterly that they had been cheated of the right to govern themselves. That no power whatsoever should tax them without their own consent was the basic principle of English liberty. Yet it was but a mockery to contend that men who had sold themselves to the governor and whom they were given no opportunity to oust from office, were their true representatives in voting away their money.
In local government Sir William was supreme. He it was who appointed the sheriffs and the justices of the peace who, as members of the county courts, had judicial, legislative, and executive powers. The county tax was usually larger than that laid by the Assembly, for it had to cover the salaries of the Burgesses, the cost of building courthouses, prisons, and bridges, and of killing wolves, etc. When the justices in levying taxes retired to a private room and locked the door, there was grave suspicion of fraud. Is it not obvious, men said, that they do not tell us what the taxes are for, because part of the money they put in their own pockets?
Much of the money wrung from the taxpayers was squandered upon foolish projects. In 1662, at the advice of the King, the Assembly voted to build thirty-two brick houses at Jamestown, and levied thirty pounds of tobacco per poll to pay for them. Since the mere erection of houses when there was no need for them could not make a town, this experiment was an utter failure. The houses were never "habitable, but fell down before the finishing of them."
Equally futile was the attempt to turn the people from raising tobacco to the production of manufactured goods. After the expenditure of large sums on industrial plants, "for want of care the said houses were never finished ... and the ... manufactury wholly in a short time neglected and no good effected." Bacon's rebellious men denounced Berkeley's parasites "for having upon specious pretences of public works raised great unjust taxes upon the commonalty for the advancement of private favorites and other sinister ends, but no visible effects in any measure adequate."
Berkeley denied the charges of favoritism and misgovernment. He called on God to witness that he knew of nothing in which he had not distributed equal justice to all men. His friends rallied to his support. "The whole are sensible of his great integrity, constant care, and diligence," the Council wrote to the Lords of Trade. Bacon had loaded him with all the base calumnies and scandals, and with as much malice and ingratitude as all the black devils in hell could tempt him to. It was hard indeed that so good a governor should have his honor and reputation "ravished away" in his old age.
Though we may discount the testimony of those who had been partners with Berkeley in his misgovernment, it is clear that he was in no way responsible for the chief cause of poverty in the colony—the Navigation Acts. Prior to 1660 the Virginians carried on an extensive trade with Holland, selling their tobacco to Dutch merchants and taking Dutch manufactured goods in exchange. When the tobacco reached Holland it was "manufactured" and then distributed to other countries. This trade brought prosperity to the colony, for the Dutch paid well for the tobacco and sold their goods cheaply. But the Navigation Acts required that tobacco exported from the colonies must be shipped to England or to her dominions, and that manufactured goods imported must come from England.
The result was disastrous. England was not able by herself to consume the entire crop. Nor could the merchants re-export it to the continent because they did not have access to the markets. So the tobacco piled up in the English warehouses, while the price sank lower and lower. The Dutch had given three pence a pound for tobacco, but now the crop was sold at half a penny a pound. Formerly the poor planter who raised a thousand pounds of tobacco each year could count on an income of £12, which was ample for his needs. After the passage of the Navigation Acts he was fortunate if he made forty-five shillings. This was so little that Secretary Ludwell attributed it to nothing but the mercy of God that he had "not fallen into mutiny and confusion." In 1662 Berkeley and others complained that the price of tobacco was so low that it would not bear the charge of freight and customs, give encouragement to the merchants, and subsistence to the planters.
As though this were not enough, a series of disasters struck the colony bringing ruin and suffering in their wake. In 1667, when England and Holland were at war, a fleet of five Dutch warships entered Chesapeake Bay and captured the Elizabeth, an English frigate of forty-six guns. They then turned on the tobacco fleet and captured twenty vessels. Six years later nine Dutch warships came in and engaged the English in a desperate battle off Lynnhaven Bay while the tobacco ships scurried for shallow water. Unfortunately nine or ten ran aground and were taken.
Even nature seemed bent on completing the ruin of the planters. "This poor country ... is now reduced to a very miserable condition by a continual course of misfortune," wrote Thomas Ludwell in 1667. "In April ... we had a most prodigious storm of hail, many of them as big as turkey eggs, which destroyed most of our young mast and cattle. On the fifth of June following came the Dutch upon us.... They were not gone before it fell to raining and continued for forty days together.... But on the 27th of August followed the most dreadful hurricane that ever the colony groaned under.... The nearest computation is at least 10,000 houses blown down, all the Indian grain laid flat upon the ground, all the tobacco in the fields torn to pieces."