The war against France and Spain, coming at this unfortunate juncture, still further restricted the market, sent prices down to new depths and filled to overflowing the planters' cup of misfortune. "The war has stopped the trade with Spain, France, Flanders and part of the Baltic," Colonel Quary reported in a memorial to the Board of Trade, "which took off yearly 20,000 hogsheads of tobacco. Now our best foreign market is Holland."[8-29] The pamphlet entitled The Present State of the Tobacco Plantations in America stated, in 1708, that France and Spain alone had imported 20,000 hogsheads, but that both were now otherwise supplied. "The troubles in Sweden, Poland, Russia, etc., have prevented the usual exportation of great quantities to those ports. Virginia and Maryland have severely felt the loss of such exportation, having so far reduced the planters that for several years past the whole product of their tobacco would hardly clothe the servants that made it."[8-30]

Their misfortunes were accentuated by the fact that the Dutch took advantage of the European upheavals to gain control of a part of the tobacco trade. Upon the outbreak of the war with Louis XIV, England prohibited the exportation of tobacco either to France or to Spain, but Holland, despite her participation in the struggle, apparently took no such action. On the contrary she strained every nerve to entrench herself in the markets of her ally before peace should once more open the flood gates to Virginia and Maryland tobacco. With this in view the acreage in Holland devoted to the cultivation of the leaf was rapidly extended. "The Dutch are improving and increasing their tobacco plantations," wrote John Linton in 1706. "In 1701 they produced only 18,000 hogsheads. Last year it was 33,500 hogsheads." Plantations at Nimwegen, Rhenen, Amersfoort and Nijkerk turned out 13,400,000 pounds, while great quantities were raised on the Main, in Higher Germany and in Prussia.[8-31]

The Dutch mixed their own leaf with that of Virginia and Maryland in the proportion of four to one, subjected it to a process of manufacture and sent it out to all the European markets.[8-32] In 1707 a letter to John Linton stated that they had from thirty to forty houses for "making up tobacco in rolls," employing 4,000 men, besides great numbers of women and girls. Their Baltic exports were estimated at 12,350,000 pounds; 2,500,000 pounds to Norway, 1,500,000 to Jutland and Denmark, 4,000,000 to Sweden, 2,350,000 to Lapland, 2,000,000 to Danzig and Königsberg.[8-33]

With the continuation of the war on the continent Dutch competition became stronger and stronger. In 1714, when peace was at last in prospect, they seemed thoroughly entrenched in many of the markets formerly supplied by the English. "The planting of tobacco in Holland, Germany, Etc.," it was reported to the Board of Trade, "is increased to above four times what it was 20 years ago, and amounts now to as much as is made in both Virginia and Maryland." The tobacco trade, which had formerly produced some £250,000 in the balance of trade, had declined to about half that figure, exports of manufactured goods to the Chesapeake were rapidly dwindling, the number of ships engaged in carrying tobacco was greatly reduced, the merchants were impoverished, the planters were ruined.[8-34]

"It is hardly possible to imagine a more miserable spectacle than the poorer sort of inhabitants in this colony," the Council wrote in 1713, "whose labour in tobacco has not for several years afforded them clothing to shelter them from the violent colds as well as heats to both which this climate is subject in the several seasons. The importation of British and other European commodities by the merchants, whereby the planters were formerly well supplied with clothing, is now in a manner wholly left off and the small supplies still ventured sold at such prodigeous rates as they please. Many families formerly well clothed and their houses well furnished are now reduced to rags and all the visible marks of poverty."[8-35]

This unfortunate period was but temporary. With the conclusion of peace English tobacco was dumped upon the European market at a figure so low as to defy competition. And when once the hogsheads began to move, the reaction on Virginia and Maryland was rapid and pronounced. Soon prices rose again to the old levels, and the colony entered upon a period, for the larger planters at least, of unprecedented prosperity.[8-36] But the eight years of hardship and poverty made a lasting imprint upon the poorest class of whites. Coming as they did upon the heels of the first great wave of negro immigration, they accelerated the movement of the disrupting forces already at work. It was not by accident that the largest migration of whites to other settlements occurred just at this time and that the inquiries as to its cause are most frequent. The little planter class never fully recovered from the blow dealt it by the temporary loss of the larger part of the European tobacco trade.

The small freeholders who possessed neither servants nor slaves did not disappear entirely, but they gradually declined in numbers and sank into abject poverty. During the period of Spotswood's administration they still constituted a large part of the population. The tax list for 1716 in Lancaster, one of the older counties, shows that of 314 persons listed as tithables, 202 paid for themselves only.[8-37] Making ample deductions for persons not owning land it would appear that more than half the planters at this date still tilled their fields only with their own labor. At the time of the American Revolution, however, the situation had changed materially, and a decided dwindling of the poor farmer class is noticeable. In Gloucester county the tax lists for 1782-83 show 490 white families, of which 320 were in possession of slaves. Of the 170 heads of families who possessed no negroes, since no doubt some were overseers, some artisans, some professional men, it is probable that not more than eighty or ninety were proprietors.[8-38] In Spotsylvania county similar conditions are noted. Of 704 tithable whites listed in 1783 all save 199 possessed slaves.[8-39] In Dinwiddie county, in the year 1782, of 843 tithable whites, 210 only were not slave holders.[8-40] Apparently the Virginia yeoman, the sturdy, independent farmer of the Seventeenth century, who tilled his little holding with his own hands, had become an insignificant factor in the life of the colony. The glorious promises which the country had held out to him in the first fifty years of its existence had been belied. The Virginia which had formerly been so largely the land of the little farmer, had become the land of masters and slaves. For aught else there was no room.

Before the end of the Eighteenth century the condition of the poorest class had become pitiable. The French philosopher Chastellux who spent much time in Virginia during the American Revolution testifies to their extreme misery. "It is there that I saw poor persons for the first time since crossing the ocean," he says. "In truth, near these rich plantations, in which the negro alone is unhappy, are often found miserable huts inhabited by whites whose wan faces and ragged garments give testimony to their poverty."[8-41]