Far more surprising is the fact that even Spain consumed millions of pounds of English leaf. With her own colonies producing the best tobacco in the world and in the face of its practical exclusion from the English market, it is strange that the Government at Madrid should have permitted this commerce to continue. The obvious course for the Spaniards under the economic theories of the day would have been to exclude English tobacco, both in order to protect their own planters and to retaliate for the restrictions upon their product. Yet it is estimated that from 6,000 to 10,000 hogsheads entered Spain each year.[7-15] A pamphlet published in 1708 entitled The Present State of Tobacco Plantations in America stated that before the outbreak of the war then raging, France and Spain together had taken annually about 20,000 hogsheads.[7-16]

The Dutch, too, despite their bitter rivalry with the British, found it impossible to do without Virginia tobacco. Purchasing the finest bright Orinoco, they mixed it with leaf of their own growth in the proportion of one to four, and sold it to other European nations. In this way they sought to retain their position as a distributing center for the trade and to give employment to hundreds of poor workers. In all the Dutch seem to have purchased from England about 5,000 hogsheads a year.[7-17]

The enhanced importance of the tobacco trade is reflected in a steady increase of British exports to Virginia and Maryland. The planters, now that they found it possible to market their leaf, laid out the proceeds in the manufactured products of England. At the end of the Seventeenth century the two colonies were importing goods to the value of £200,000 annually. In 1698, which was an exceptionally good year, their purchases were no less than £310,133.[7-18]

In short the tobacco colonies had at last found their proper place in the British colonial system. Both they and the mother country, after long years of experimentation, years of misfortune and recrimination, had reached a common ground upon which to stand. Although Maryland and Virginia still fell short of the ideal set for the British colonies, although they failed to furnish the raw stuffs so urgently needed by the home industries, at least they yielded a product which added materially to shipping, weighed heavily in the balance of trade and brought a welcome revenue to the royal Exchequer.

The Crown reaped a rich return from tobacco, a return which grew not only with the expansion of the trade, but by the imposition from time to time of heavier duties. In the period from 1660 to 1685, when the tariff remained at two pence a pound, the yield must have varied from £75,000 to £100,000. If we assume that the average consumption in England was 9,000,000 pounds and the average exports 3,000,000 the total revenue would have been £81,250. In 1685, however, an additional duty of three pence a pound was placed upon tobacco upon its arrival in England, all of which was refunded when the product was re-exported. In 1688, when the tobacco consumed in England was 8,328,800 pounds, the old and new duties, amounting in all to five pence, must have yielded £173,515. When to this is added £15,000 from the half penny a pound on the 7,200,000 pounds of leaf sent abroad, the total reaches £188,515.

In 1698 still another penny a pound was added to the tax, making a grand total of six pence on colonial tobacco disposed of in England. This new duty, together with the rapid increase in the foreign trade, enriched the Exchequer by another £100,000. In 1699, if we assume that 12,000,000 pounds were consumed in England, the return would have been £300,000; while half a penny a pound on 36,000,000 pounds of re-exported leaf, would have brought the total to £375,000. That this figure was approximately correct we have evidence in the statement of the author of The Present State of the Tobacco Plantations, written in 1705, that the revenue yielded by the tobacco of Virginia and Maryland amounted annually to £400,000.[7-19] This sum constituted a very appreciable proportion of the royal income, so appreciable in fact as to make the tobacco trade a matter of vital importance in the eyes of the King's ministers. They were charged at all times to avoid any contingency which might lessen the imports and reduce the customs.

The increase in the tobacco trade stimulated industry, not only by increasing exports to Virginia and Maryland, but also by creating a new English industry. For most of the tobacco, before it was sent abroad, was subjected to a process of manufacture, by which the leaf was cut and rolled and otherwise prepared for the consumer. This industry gave employment to hundreds of poor persons in England and required a considerable outlay of capital.[7-20]

To British navigation the trade was vital. Each year scores of merchantmen crossed to the Chesapeake and swarmed in every river and creek, delivering their English goods to the planters and taking in return the hogsheads of tobacco. In 1690 the tobacco fleet numbered about 100 ships, aggregating 13,715 tons; in 1706 it counted no less than 300 sails.[7-21] Nor must it be forgotten that re-exported tobacco also added many a goodly merchantman to the navy and gave employment to many a seaman. Altogether Virginia and Maryland constituted an invaluable asset, an asset which ranked in importance secondly only to the sugar plantations.

It would naturally be supposed that the fortunate turn of events which restored to the tobacco colonies their European market would have reacted favorably upon the small planters of Virginia, not only insuring plenty to those already established, but adding new recruits from the ranks of the indentured servants; that the process of making prosperous freemen from the poor immigrants who flocked to the colony, the process interrupted by the passage of the Navigation Acts, would have been resumed now that these laws no longer prevented the flow of tobacco into the continental countries.