America: Founded through Economic Lust
Introduction
As we look at the present day US Economy we see large financial growth, and a timid but stable economic system. But with all important things in life we must look back to the beginning to gain perspective. As Edmund Burke re-stated , "Those who don't know history are destined to repeat it." It is important to look back at the beginning of our great country and see the economic paths that led to our county being discovered and settled so that we may have a peek into our future. While freedom and religious beliefs are normally the reason that is given for the founding of the Americas, I think the notion of financial growth and economic standing in the world is something that should be given more thought. In this paper we will look at some of the economic systems and beliefs that led to the founding of the first major English colony in the Americas and subsequently laid the groundwork of the economic strength that lead to our independence from Britain and allowed America to thrive. We would be remiss to discuss the American economic system without giving credence to its foundation.
Economic Pressure to expand
Before we can even begin to discuss the settlement of Jamestown we must first set the Economic system on England during the 1600s. England, ruled by Elizabeth I, was coming into an age of mercantilism (Henretta 32). The Economy was now one of global trade. Certain monopolies were set up by Queen Elizabeth: I, The Guinea Company set up in 1588 to exchange goods for slaves in Africa and II, the East India Company in 1600 to import cotton cloths and spices from India (Henretta 32). This expansion in trade made it possible for exploration and colonization to occur because of the wealth it was creating in England and beyond. Trade routes were being set up throughout the world and people began producing more than they needed to survive for the sole purpose of export on a commercial scale.
This wealth was something that was passed down the family tree by the systems of Primogeniture. In England during the 1600s and before the system of primogeniture was set up to dictate the transfer of wealth and titles of nobility from generation to generation. Primogeniture law stated that all wealth, property and titles of nobility were to be passed on to the first born, this only applied to males within the family, women were expected to marry so they may provide for themselves (Ostler). While the law only dictated what was required of the first born son, tradition was a strong factor in this process as well. Tradition dictated that the second son would enter into the military, the third son would enter into the clergy, and any other sons after that would become "gentlemen" and live off the support of son number 1. This system of primogeniture created the opportunities for Sir Humphrey Gilbert and Sir Walter Raleigh to fund there voyages to the Americas in hopes to establish a colony that could support trade (Faulkner 49). These voyages were funded directly from the men themselves through their own personal wealth. Sir Walter Raleigh spent nearly £40,000 of his personal fortune over the course of five failed expeditions (Faulkner 48), although he was successful for a time in establishing the Colony of Roanoke in 1587, which disappeared before the ships returned from England (Kupperman).
Creating the Foundation for Exploration
It was this high rate of failure and low rate of return that set the wheels moving toward the formation of the Plymouth and London Companies. These were joint stock companies that were set up by those second and third sons that the laws of primogeniture did not favor, they allowed investors to purchase stock and therefore raising needed capitol without high risk (Ostler). They sought money from the wealth first born to finance a voyage to the Americans in the hopes of setting up an outpost to take part in the world trade routes (Faulkner 49).
In 1606 King James I gave a charter to these two Joint Stock Companies to travel to the New World and set up a settlement between the 34th and 41st parallels and 38th and 45th parallels. The purpose of these settlements would be: financial security for the crown and the stock holders. The Black legend stated that Gold was plentiful and overflowing in the Americas. This was something that drove the English to try to settle these new lands in hopes of claiming the wealth for their mother county. Another financial factor that leads to these settlements was the belief that there was a fixed amount of money in the world. People believed that there was only a certain amount of gold and silver in the world and whoever held more of the gold held more power. The Plymouth and London companies left England with high hopes. Once they arrived in America things became tough. The Plymouth Company eventually returned to England admitting defeat, but the London Company successfully settled the area of Virginia, most notably Jamestown, with much hardship. While these were some of the economic factors that led to the founding of the colonies in America, it still is only half of the question. We must next look at what gave the Americas it staying power within the World Economy.
Finding America's Cash Crop
With the settlement of Jamestown in the Americas by the Virginia Company of London the foundation was set. But not an easy time awaited the colonists. The settlement of Jamestown enter into the Starving Times and the future looked bleak (Henretta). The mission statement of the Virginia Company of London was to establish a trade factory to buy goods from the native people and sell them throughout the world. But the resources that they expected were not there when the men arrived in now present day Virginia. Over the next several years the settlers tried to establish a money making and exportable enterprise. The colonists in Virginia tried a number of different enterprises: silk making, glassmaking, lumber, sassafras, pitch and tar, and soap ashes, with no financial success.
After a few years struggling trying to find the cash crop in the Americas, fortune smiled upon the settlers of the Virginia Company in the form of John Rolfe. John Rolfe was a trader who arrived in the Colonies in 1610. John Rolfe began experimenting with tobacco crops and eventually found the right plant for the right soil and the colonists begin growing tobacco on a large scale. This introduction of tobacco allowed for the Virginia Company to survive. It also set the stage for the Americas to grow into a large superpower.
Prior to Tobacco plantings in the Americas, tobacco was a luxury item that was only available to the rich. Once the Americas were able to produce large quantities, the price was able to go down and tobacco became something that all classes in England could afford. Eventually it was cheaper for a Plantation owner to import its food than to waste precious land by growing it. It was this growth of tobacco that led the America and later the colonies to become economically independent and eventually to want to be free from England. Agriculture became the life blood of the Colonies.
Conclusion
It was this introduction of tobacco that put life back into the dreams of the Virginia Company of London and provide for the settling of what is now the United States of America. Many Americans today forget the role that tobacco played in our history. Before King Cotton there was King Tobacco. Our countries creation was directly affected by the Economic tides and governance of England. We must look to these parts of our past as we move into the future.
Introduction
As we look at the present day US Economy we see large financial growth, and a timid but stable economic system. But with all important things in life we must look back to the beginning to gain perspective. As Edmund Burke re-stated , "Those who don't know history are destined to repeat it." It is important to look back at the beginning of our great country and see the economic paths that led to our county being discovered and settled so that we may have a peek into our future. While freedom and religious beliefs are normally the reason that is given for the founding of the Americas, I think the notion of financial growth and economic standing in the world is something that should be given more thought. In this paper we will look at some of the economic systems and beliefs that led to the founding of the first major English colony in the Americas and subsequently laid the groundwork of the economic strength that lead to our independence from Britain and allowed America to thrive. We would be remiss to discuss the American economic system without giving credence to its foundation.
Economic Pressure to expand
Before we can even begin to discuss the settlement of Jamestown we must first set the Economic system on England during the 1600s. England, ruled by Elizabeth I, was coming into an age of mercantilism (Henretta 32). The Economy was now one of global trade. Certain monopolies were set up by Queen Elizabeth: I, The Guinea Company set up in 1588 to exchange goods for slaves in Africa and II, the East India Company in 1600 to import cotton cloths and spices from India (Henretta 32). This expansion in trade made it possible for exploration and colonization to occur because of the wealth it was creating in England and beyond. Trade routes were being set up throughout the world and people began producing more than they needed to survive for the sole purpose of export on a commercial scale.
This wealth was something that was passed down the family tree by the systems of Primogeniture. In England during the 1600s and before the system of primogeniture was set up to dictate the transfer of wealth and titles of nobility from generation to generation. Primogeniture law stated that all wealth, property and titles of nobility were to be passed on to the first born, this only applied to males within the family, women were expected to marry so they may provide for themselves (Ostler). While the law only dictated what was required of the first born son, tradition was a strong factor in this process as well. Tradition dictated that the second son would enter into the military, the third son would enter into the clergy, and any other sons after that would become "gentlemen" and live off the support of son number 1. This system of primogeniture created the opportunities for Sir Humphrey Gilbert and Sir Walter Raleigh to fund there voyages to the Americas in hopes to establish a colony that could support trade (Faulkner 49). These voyages were funded directly from the men themselves through their own personal wealth. Sir Walter Raleigh spent nearly £40,000 of his personal fortune over the course of five failed expeditions (Faulkner 48), although he was successful for a time in establishing the Colony of Roanoke in 1587, which disappeared before the ships returned from England (Kupperman).
Creating the Foundation for Exploration
It was this high rate of failure and low rate of return that set the wheels moving toward the formation of the Plymouth and London Companies. These were joint stock companies that were set up by those second and third sons that the laws of primogeniture did not favor, they allowed investors to purchase stock and therefore raising needed capitol without high risk (Ostler). They sought money from the wealth first born to finance a voyage to the Americans in the hopes of setting up an outpost to take part in the world trade routes (Faulkner 49).
In 1606 King James I gave a charter to these two Joint Stock Companies to travel to the New World and set up a settlement between the 34th and 41st parallels and 38th and 45th parallels. The purpose of these settlements would be: financial security for the crown and the stock holders. The Black legend stated that Gold was plentiful and overflowing in the Americas. This was something that drove the English to try to settle these new lands in hopes of claiming the wealth for their mother county. Another financial factor that leads to these settlements was the belief that there was a fixed amount of money in the world. People believed that there was only a certain amount of gold and silver in the world and whoever held more of the gold held more power. The Plymouth and London companies left England with high hopes. Once they arrived in America things became tough. The Plymouth Company eventually returned to England admitting defeat, but the London Company successfully settled the area of Virginia, most notably Jamestown, with much hardship. While these were some of the economic factors that led to the founding of the colonies in America, it still is only half of the question. We must next look at what gave the Americas it staying power within the World Economy.
Finding America's Cash Crop
With the settlement of Jamestown in the Americas by the Virginia Company of London the foundation was set. But not an easy time awaited the colonists. The settlement of Jamestown enter into the Starving Times and the future looked bleak (Henretta). The mission statement of the Virginia Company of London was to establish a trade factory to buy goods from the native people and sell them throughout the world. But the resources that they expected were not there when the men arrived in now present day Virginia. Over the next several years the settlers tried to establish a money making and exportable enterprise. The colonists in Virginia tried a number of different enterprises: silk making, glassmaking, lumber, sassafras, pitch and tar, and soap ashes, with no financial success.
After a few years struggling trying to find the cash crop in the Americas, fortune smiled upon the settlers of the Virginia Company in the form of John Rolfe. John Rolfe was a trader who arrived in the Colonies in 1610. John Rolfe began experimenting with tobacco crops and eventually found the right plant for the right soil and the colonists begin growing tobacco on a large scale. This introduction of tobacco allowed for the Virginia Company to survive. It also set the stage for the Americas to grow into a large superpower.
Prior to Tobacco plantings in the Americas, tobacco was a luxury item that was only available to the rich. Once the Americas were able to produce large quantities, the price was able to go down and tobacco became something that all classes in England could afford. Eventually it was cheaper for a Plantation owner to import its food than to waste precious land by growing it. It was this growth of tobacco that led the America and later the colonies to become economically independent and eventually to want to be free from England. Agriculture became the life blood of the Colonies.
Conclusion
It was this introduction of tobacco that put life back into the dreams of the Virginia Company of London and provide for the settling of what is now the United States of America. Many Americans today forget the role that tobacco played in our history. Before King Cotton there was King Tobacco. Our countries creation was directly affected by the Economic tides and governance of England. We must look to these parts of our past as we move into the future.