For this failure the reason is apparent. All the able economists and statesmen who had predicted that the colony would become an industrial center had overlooked one vitally important factor—the lack of cheap labor. No matter how rich in natural resources, Virginia could not hope to compete with the long-established industries of Europe and Asia, because she lacked the abundant population requisite to success. It had been imagined by Hakluyt and others that the colony could avail herself of the surplus population of England, could drain off the upper stratum of the idle and unemployed. What more feasible than to set these men to work in the forests of the New World to produce the raw materials the want of which was responsible for unemployment in England itself!

But the voyage across the Atlantic was so long and costly, that it proved impossible to transport in any reasonable length of time enough workers to Virginia to supply her needs. And the few thousand that came over in the early years of the Seventeenth century were in such great demand that they could secure wages several times higher than those in vogue throughout Europe. Thus the London Company, from the very outset, found itself face to face with a difficulty which it could never surmount. Virginia could not compete with the ship-stores of the Baltic nations because her labor, when indeed it was found possible to secure labor at all, was far more expensive than that of Poland or Sweden or Russia. It mattered not that the Company sent over indentured servants, bound by their contracts to work for a certain number of years; the effect was the same. The cost of transportation swallowed up the profits from the servant's labor, when that labor was expended upon industries which had to face the competition of the cheap workers of the Old World.

It speaks well for the acumen of Captain John Smith that he seems to have been the first to grasp clearly this truth. He wrote that the workingmen had made a beginning of "Pitch and Tarre, Glass, Sope-ashes and Clapboard," but that little had been accomplished. "If you rightly consider what an infinite toyle it is in Russia and Swetland, where the woods are proper for naught else, and though there be the helpe both of man and beast in those ancient Common-wealths, which many a hundred years have used it, yet thousands of those poor people can scarce get necessaries to live ... you must not expect from us any such matter."[1-13]

The attempt to produce iron in Virginia was pursued even more vigorously, but with equally poor success. The early settlers, eager to assure the Company that the venture they had entered upon would soon yield a rich return, spoke enthusiastically of the numerous indications of the presence of iron ore. In 1609 Captain Newport brought with him to England a supply of ore from which sixteen or seventeen tons of metal were extracted of a quality equal or superior to that obtained from any European country. The iron was sold to the East India Company at the rate of £4 a ton.[1-14] Immediately plans were launched for taking advantage of what seemed to be a splendid opportunity. In the course of the first three years machinery for smelting and manufacturing iron was sent over and men were set to work to operate it. But the difficulties proved too great and ere long the attempt had to be abandoned.

The Company had no idea of relinquishing permanently its quest for staple commodities, however, and soon a new and far more ambitious project was set on foot for extracting the ore. The spot selected was at Falling Creek, in the present county of Chesterfield, a few miles below the rapids of the James river. George Sandys had noted with satisfaction some years before that the place was in every respect suited for iron smelting, for in close proximity to the ore was wood in abundance, stones for the construction of the furnace and deep water for transportation. To him it seemed that nature itself had selected the site and endowed it with every facility which the enterprise could require.[1-15] Here the London Company spent from £4,000 to £5,000 in a supreme effort to make their colony answer in some degree the expectations which had been placed in it. A Captain Blewit, with no less than 80 men, was sent over to construct the works, upon which, they declared, were fixed the eyes of "God, Angels and men." But Blewit soon succumbed to one of the deadly epidemics which yearly swept over the little colony, and a Mr. John Berkeley, accompanied by 20 experienced workers, came over to take his place.

At first things seem to have gone well with this ambitious venture. Soon the Virginia forests were resounding to the whir of the axe and the crash of falling trees, to the exclamations of scores of busy men as they extracted the ore, built their furnace and began the work of smelting. Operations had progressed so far that it was confidently predicted that soon large quantities of pig iron would be leaving the James for England, when an unexpected disaster put an abrupt end to the enterprise. In the terrible massacre of 1622, when the implacable Opechancanough attempted at one stroke to rid the country of its white invaders, the little industrial settlement at Falling Creek was completely destroyed. The furnace was ruined, the machinery thrown into the river, the workmen butchered. This project, which had absorbed so much of the attention and resources of the Company, is said to have yielded only a shovel, a pair of tongs and one bar of iron.[1-16]

The history of the attempts to establish glass works in Virginia is also a story of wasted energy and money, of final failure. The Dutch and Polish workers who came in 1608 set up a furnace at Jamestown,[1-17] but nothing more is heard of them, and it is clear that they met with no success. Nor did Captain William Norton, who arrived in 1621 with a number of skilled Italian glass workers fare any better.[1-18] In 1623 George Sandys wrote: "Capt. Norton dyed with all save one of his servants, the Italians fell extremely sick yet recovered; but I conceave they would gladly make the work to appear unfeasable, that they might by that means be dismissed for England. The fier hath now been for six weeks in ye furnace and yet nothing effected. They claim that the sand will not run." Shortly after this the workmen brought matters to an end by cracking the furnace with a crowbar.[1-19]

Thus ended in complete failure the efforts of England to reap what she considered the legitimate fruits of this great enterprise. The day of which her farseeing publicists had dreamed had arrived; she had at last challenged the right of Spain to all North America, her sons were actually settled on the banks of the James, a beginning had been made in the work of building a colonial empire. But the hope which had so fired the mind of Hakluyt, the hope of attaining through Virginia British economic independence, was destined never to be fulfilled. However lavishly nature had endowed the colony with natural resources, however dense her forests, however rich her mines, however wide and deep her waterways, she could not become an industrial community. Fate had decreed for her another destiny. But England was reluctant to accept the inevitable in this matter. Long years after Sir Edwin Sandys and his fellow workers of the London Company had passed to their rest, we find the royal ministers urging upon the colony the necessity of producing pig iron and silk and potash, and promising every possible encouragement in the work. But the causes which operated to bring failure in 1610 or 1620 prevented success in 1660 and 1680. Virginia had not the abundant supply of labor essential to the development of an industrial community and for many decades, perhaps for centuries, could not hope to attain it. Her future lay in the discovery and exploitation of one staple commodity for which she was so preëminently adapted that she could, even with her costly labor, meet the competition of other lands. The future history of Virginia was to be built up around the Indian plant tobacco.