In committing itself to this policy the royal Government felt that the plantations would play a useful and necessary part in the great system which was planned, and in so doing would find prosperity. It had been the hope of the English people that their colonies would produce the articles which were so badly needed by the mother country to revive her waning industry and permit a greater measure of economic independence. Although more than half a century had passed since the first foothold had been gained upon the American continent, this expectation was as far from realization as ever. The colonies, from Massachusetts to Barbados were producing, not the articles which England especially needed, but those for which they had the greatest natural aptitude, especially tobacco and sugar. And these staples they sent, not to England alone, but to various foreign countries as well.
In short the vision of a closely knit, self-sustaining empire, the vision which had been in men's minds for many decades before the founding of Jamestown, seemed to have proved delusive. The colonies were developing interests and commercial connections hostile to those of the mother country, were nourishing the manufactures and shipping of foreign nations almost as much as those of England. And this the Government at London would not tolerate. The colonial trade with strangers must come to an end. If Virginia and Maryland produced more tobacco than the English market could absorb, they could find ready relief by turning their energies into other channels. Let them furnish the old country with pig iron or potash or silk or ship-stores and they would find ready and eager purchasers. So reasoned the English, and as their views were backed by the mandates of Crown and Parliament, the colonists were forced to submit. If they could fit themselves into the system prescribed for them, all would be well and good; if they found this impossible, they would have to suffer without hope of redress.
And suffer Virginia did for a full quarter of a century. The tobacco of the Chesapeake bay colonies had long since reached the point where it required a world market. If confined to England alone, only a fraction of the output could be consumed and disaster was certain. It was well enough for the Government to restrict the importation of Spanish leaf and to prohibit the planting of tobacco in England, these regulations could do no more than give the colonists undisputed possession of the home market, and the home market was not enough. This point seems to have been ignored by those writers who have contended that the strict enforcement of the British colonial system in itself entailed no hardship upon the tobacco colonies.
"It is obvious that any criticism of England's regulation of the colonial tobacco trade, which is based on a laissez-faire social philosophy," says George Lewis Beer, in The Old Colonial System, "is equally applicable to the arrangement by means of which the tobacco planter secured exclusive privileges in the home market."[5-1] Yet it is certain that the tobacco growers of England could never have competed with Maryland and Virginia had there been free trade. The prohibition of planting in the old country was necessary only because of the tariff, varying from 200 per cent in 1660 to 600 per cent in 1705, upon the colonial product. And though the exclusion of Spanish tobacco was a more real benefit, for the Spaniard produced varieties unknown in Virginia, there is exaggeration here also. This is clearly shown by the fact that at the end of the Seventeenth century England was sending millions of pounds of her colonial tobacco to Spain itself.[5-2] The leaf was brought from Virginia and Maryland, forced to pay a duty of about fifty per cent, and re-exported to the Spanish ports, where it found a ready sale. Had there been free exchange of commodities, the English colonies would have sold to Spain more tobacco than the Spanish colonies to England.
In truth the loss of the foreign market was a terrible disaster. In framing the Navigation Acts it was not the intention of the Government to stop entirely the flow of tobacco to the continent of Europe, but to divert it from the old channels and make it pass through England. It was therefore provided that in case the leaf was shipped out again to foreign ports, all the duties, except one half of the Old Subsidy, should be withdrawn.[5-7] The remaining half penny, however, amounted to forty or fifty per cent of the original cost of the goods, and proved at first an almost insuperable barrier to the European trade. Moreover, the shortage of ships which resulted from the exclusion of the Dutch merchants, the expense of putting in at the English ports, the long and troublesome procedure of reshipping, all tended to discourage the merchants and hamper re-exportation.
We may take for granted also that the resentment of Holland at the Navigation Acts, which struck a telling blow at her maritime prestige, played an important part in blocking foreign trade. The Dutch had been the chief European distributors of the Virginia and Maryland tobacco, and if they refused to take it, now that it could be secured only in England, it would pile up uselessly in the London warehouses. They understood well enough that the half penny a pound duty was a tribute levied upon them by their most dangerous rival. It is not surprising that instead of bowing to the new restrictions, they sought to free their trade entirely from dependence on British tobacco, by fostering the cultivation of the plant in their own country.
The colonists found an able defender in the merchant John Bland. In a Remonstrance addressed to the King this man set forth with remarkable clearness the evils which would result from the Navigation Acts, and pleaded for their repeal. The Hollander was already beginning to plant tobacco, he said, and would soon be able to supply all his needs at home. "Will he, after accustomed to the tobacco of his own growth," he asked, "ever regard that which is in Virginia? Will he ever afterwards be induced to fetch it thence, when he finds his profit higher at home? Will he ever buy that of us, when by passing so many hands, and so much charge contracted thereon, is made so dear, that he can have it cheaper in his own territories? (Surely no.) Therefore it clearly appears, that being so, of necessity we must lose that Trade and Commerce."
"If the Hollanders must not trade to Virginia, how shall the Planters dispose of their Tobacco? The English will not buy it, for what the Hollander carried thence was a sort of tobacco not desired by any other people, nor used by us in England but merely to transport for Holland. Will it not then perish on the Planters hands?... Can it be believed that from England more ships will be sent than are able to bring thence what tobacco England will spent? If they do bring more, must they not lose thereby both stock and Block, principle and charges? The tobacco will not vend in England, the Hollanders will not fetch it from England; what must become thereof?... Is not this a destruction to the commerce? For if men lose their Estates, certainly trade cannot be encreased."[5-8]
The enforcement of the trade laws was indirectly the cause of still another misfortune to the colonies, for the two wars with Holland which grew out of it reacted disastrously upon their trade. In fact, on each occasion the small stream of tobacco which had trickled over the dam of restrictions into foreign countries was for a time almost entirely cut off. Not only did the tobacco exports to Holland itself come to an end, but the Dutch war vessels played havoc with the trade between England and other countries and even between England and her colonies.
The loss of their foreign exports was calamitous to the planters. Had the demand for tobacco been more elastic, the consequences might not have been so fatal, for declining prices would have stimulated consumption and made it possible for England to absorb most of the output. But the duty kept up the price and the result was a ruinous glut in the English market. Tobacco sufficient for a continent poured into the kingdom, where since the normal outlet was blocked by the half penny a pound on re-exported leaf, it piled up uselessly.