Financial History 100th Edition Double Issue (Spring/Summer 2011) | Page 34

called Gosnold “one of the first movers of the colony.” For many years, Gosnold had “solicited many of his friends” but mustered little interest. He persisted nevertheless and slowly won over several individuals who had money to invest in the venture. Another critical supporter of the Virginia colony was the extraordinary merchant Sir Thomas Smythe, who had participated in a number of groundbreaking overseas ventures, including the incorporation of the Turkey Company in 1584, the development and activities of the Muscovy Company in 1587, and an expedition to the East Indies in 1591 to explore the opportunities to participate in the lucrative spice trade. He was the first governor of the English East India Company. Smythe also held a number of government positions that helped him build up his connections for global voyages and trade. In April 1606, the efforts bore fruit when the crown granted a patent establishing two companies to colonize the territory called Virginia, “which are not now actually possessed by any Christian prince or people.” The patent included protecting the rights of Englishmen “as if they had been abiding and born within this our realm of England.” Most importantly, the Virginia Company was granted rights to all the “lands, woods, soil, grounds, havens, ports, rivers, mines, minerals, marshes, water, fishing [and] commodities,” thus laying the economic grounds of the colony. No other subjects would be granted competing patents that would violate this monopoly. Yet, at this point, no one questioned the communal and centralized character of the colony for those more consistent with free, enterprising Englishmen. On December 20, 1606, 144 sailors and adventurers set sail for Virginia as their three ships quietly slipped their moorings. They rode the ebb tide, sailing down the Thames and catching a last sight of the English countryside. On May 14, 1607, they landed with great hopes of striking it rich and establishing the first permanent English settlement in America. Over the next two months, the gentlemen-adventurers explored up the James River, seeking any sign or news of mineral wealth or the Northwest Passage to the Orient. They wondered if the James itself was the actual river that connected the Atlantic and Pacific Oceans, England with the wealth of the East. They sent home a “taste of clapboard” that the investors would have some idea of the bounty of trees in Virginia. Most tantalizingly, the council in Virginia warned that Spaniards must be prevented from laying their “ravenous hands upon these gold-showing mountains.” Indeed, the Jamestown council sent a barrel of earth back to England because of the belief it contained gold. After a chaotic summer during which the president was deposed and disease and Indian attacks severely reduced the colony, Councilman John Smith complained that the settlers “would rather starve and rot with idleness.” The colony was still very low on food supplies especially since the Indians had stopped bringing provisions. Smith and the other leaders could Most tantalizingly, the council in Virginia warned that Spaniards must be prevented from laying their “ravenous hands upon these gold-showing mountains.” force the colonists to work under threat of punishment, but they could not offer any better incentive to work hard. Individual workers did not take initiative because they were not rewarded for it and ate out of the common storehouse. Under the circumstances, the men did enough labor to avoid punishment and continued to consume the common stocks of food. The first seven months of the colony were an abject failure. Diseases had ravaged the settlement. The land was not nearly as bountiful as described in promotional letters back in England. The native peoples recognized the difficulties of the colony and used it to their advantage and interests. Ambitions and intrigues drove the Englishmen apart and tore the fabric of leadership. The reality of the colony hardly matched the grand expectations of the investors little more than a year before. Their salvation seemed imminent when Christopher Newport’s supply ship put in at Jamestown during the frightful cold of winter. The lives of the colonists hung in the balance. 32