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Authors: Murray N. Rothbard

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Although the distraction of Spanish bullion would continue to complicate English colonial activities in the future, the actual settlement of North America was founded on the search for trade by the Muscovy Company and the extension of land conquest and speculation from Ireland to America. A staunch defender of monopoly, special privilege, and the royal prerogative, Sir Humphrey Gilbert, after serving as an officer in the war of extermination against the Irish (1566), had proposed to establish English colonies
on the confiscated Irish lands and was appointed governor of southern Ireland in 1569. Gilbert emerged as the great leader of the futile quest for a northwest passage around North America to the Orient. He published in 1576 his tract in behalf of this search,
Discourse of a Discovery for a New Passage to Cataia
(i.e., to China). The Muscovy Company, holding a monopoly privilege for exploration and trade in the Atlantic Ocean north of London, desired to find a northwest passage, as well as stations for its whaling fleets for the whale oil used in the manufacture of soap. The Muscovy Company thereupon licensed Martin Frobisher, a nephew of one of the founders of the company, to explore Greenland and Labrador in search of a passage. Frobisher made three fruitless voyages, in 1576, 1577, and 1578.

Meanwhile, Gilbert perceived corollary possibilities of power and personal profit by the colonization of Newfoundland—both in the conquest of its fishing grounds and as a base for search for a northwest passage. Preparing to petition Queen Elizabeth for a monopoly patent of exploration and colonization of North America, Gilbert sought the advice of “Dr.” John Dee, mathematician, magician, astrologer, and mystic adviser to the queen. Dee was much consulted in matters of exploration. To support the petition, Dee submitted reports extending previous historical fantasies that the English Crown possessed the God-given right to North America and to sole ownership of all remotely adjacent seas and to all the fish therein. Gilbert received the patent for exploration and colonization in North America in 1578. Humphrey Gilbert made several preparatory voyages to Newfoundland as did his brother Adrian, his half-brother and freebooter Walter Raleigh, and his associate John Davis. After further engaging in conquest and colonization in Ireland, Gilbert prepared, during 1582–83, another voyage for “western planting” in Newfoundland to establish a fishing colony. He was lost at sea in 1583. In February 1584 Adrian Gilbert and Walter Raleigh were granted a patent for northwest exploration under which John Davis made three voyages (1585–88) in a vain quest for a northwest passage, while in the following months of 1584, Humphrey Gilbert’s monopoly patent for North American colonization was renewed in favor of Walter Raleigh.

Sir Walter Raleigh had been inspired by the Reverend Richard Hakluyt concerning colonization of the New World. Hakluyt, a friend of his and Gilbert’s, had written paeans to the idea of English colonization. Indeed, Raleigh commissioned Hakluyt to write
Discourse of Western Planting
(1584), to be submitted to Queen Elizabeth in order to induce her to invest money in their colonization schemes. In this work, Hakluyt promised virtually every boon to the English establishment—especially to the merchants and the Crown—markets for its products (especially woolens), raw materials for its purchases, furs, timber, and naval stores; outlets for her surplus population, and bases from which to loot Spanish shipping. Sir George Peckham, an associate of Gilbert and Raleigh, wrote in 1583—in support of Gilbert’s project—that a Newfoundland colony would provide a port to
increase England’s fishing fleet, a supply of valuable furs, and a northwest passage. But all of Hakluyt’s and Peckham’s propaganda could not induce the queen to loosen her pursestrings.

The products that Peckham and Hakluyt expected America to produce and the trade with foreign countries that they expected American trade to replace—these expectations, were not arrived at accidentally. Their program was founded on the experience of the Muscovy Company, which had established trading posts on the inhospitable coasts and in the forests of Russia. But the project was not described merely to indicate the close comparisons between America and Russia, from whose forests had come furs, timber, and naval stores, and over whose routes came the spices and luxuries of the Orient. Rather, the plan was offered as an alternative to the Russian trade that was desperately needed by the London merchants. For England’s Baltic trade had been crippled by conflicts with the Hanseatic League, and the English government had granted to the newly chartered Eastland Company a monopoly of exports to the Baltic areas.

The conflict between the Dutch and the Spanish in the Netherlands had brought upon Antwerp a series of calamities that ruined it as the great European center of commerce. Moreover, when the king of Spain acceded to the Portuguese throne in 1580, the Dutch were eliminated from the vital trade in spices from Lisbon, causing a rise in prices. Most important, in the 1580s the Muscovy Company’s trade with Russia suffered crippling blows when the Cossacks disrupted the Volga route, by which England had received spices from Persia and central Asia, and when Russia lost its Baltic coast, including the port of Narva, to Sweden. To regain the spice trade, a group of leading merchants of the Muscovy Company formed the Turkey Company and the Venice Company in 1581 for direct trade with the Levant in spices and Mediterranean goods. Because of wars in the Levant, these companies sent English merchants overland to India to establish a direct trade in spices. When these merchants returned, the Turkey and Venice companies were merged into the Levant Company (1592), with a charter to trade with India through the Levant and Persia.

Having secured his monopoly grant of colonization, Sir Walter Raleigh “planted” in 1585 the first English colony in what would later be the United States, on Roanoke Island off the coast of present-day North Carolina. The area had been first explored by Ralph Lane and Richard Grenville under Raleigh’s direction the previous year, and was named Virginia in honor of England’s virgin queen. The new colony had few dedicated settlers, however, and the people returned to England two years later. In 1587 still another Raleigh expedition, headed by the painter John White, tried to effect a permanent settlement of Roanoke Island. Indeed, the first English child born in America, Virginia Dare, granddaughter of John White, was born that summer at Roanoke Colony. But English interest in and communication with the tiny colony was cut off during the battle with the Spanish Armada,
and White, stranded in England, could not return to Roanoke until 1591. He could then find no trace of any of the colonists. The first attempt at English colonization of America had totally failed.

If Raleigh and Gilbert had received their inspiration for colonizing from such men as Hakluyt, their practical experience had been picked up in the course of subduing and enslaving Ireland. After serving in the army attempting to impose English rule on Ireland, Gilbert had proposed, in the late 1560s, to plant Englishmen in Ulster, as the Irish were forcibly driven out. A few years later, Gilbert became governor of Munster in Southern Ireland; in the course of “pacifying” the Irish, he drove out Irish peasants and replaced them with West Country English. Even as late as 1580, Gilbert and Raleigh fought together to suppress the Irish in Munster, and were rewarded with sizable grants of land. After the American colonizing failures, Raleigh turned his attention back to Ireland. There he planted English colonists to grow tobacco on the forty thousand acres of land he had been granted in Munster. In 1589 Raleigh, having expended forty thousand pounds on the American failure and not succeeding in persuading the queen to supply more, was happy to sell his patent for North American colonization to a group of associates and London merchants, largely connected with the Muscovy Company and including John White, the Reverend Richard Hakluyt, and Sir Thomas Smith. Raleigh, however, reserved to himself the right of dominion over the prospective colony.

Leading circles in and around the Muscovy Company had thus resumed the monopoly of rights to exploration and colonization of North America, which monopoly they had briefly held a decade earlier. But now they had a far greater incentive to pursue their grant to try to find compensation for the upheavals of the spice and Baltic trade, and of Antwerp, during the 1580s. Consideration was therefore given to establishing a sea trade direct to the East Indies by English and Dutch merchants. Thomas Cavendish, who had served on the Raleigh voyage to America in 1585, had sailed around the world during 1585–88 and had returned with a cargo of spices. The war with Spain now completely cut England off from the Levant spice trade, and in 1589 the London merchants received permission from the Privy Council to send three ships to the East Indies, carrying silver out of the country to pay for spices. Cavendish and John Davis, another old associate of Raleigh, made an unsuccessful attempt to circumnavigate the world. James Lancaster, who had been a merchant in Lisbon, was in 1591 dispatched with three ships to India; he returned in 1594 with one ship and a cargo of spices. In 1593 the Muscovy and Levant companies moved to the fore, sending George Weymouth to search for a northwest passage to India along the coast of North America.

The Dutch began in 1594 to form companies for distant voyages around Africa to India. Their first fleet returned in 1597, thereby giving a new impetus to the activity of English merchants. In 1598 alone, Dutch companies
sent five fleets, totaling twenty-two ships, to the Indies; John Davis was the chief pilot of the Zeeland fleet. By 1601 over a dozen Dutch fleets of almost seventy ships had sailed for the East Indies. Because of renewed English voyages and conflicts with the Portuguese, the Dutch merchants forming the companies that had sent the ships to the East Indies began to amalgamate them, and in March 1602 all the Dutch companies merged into the United East India Company.

In September 1599, London merchants belonging to various trading companies, especially the Levant Company, formed an association on the model of the successful Dutch companies and petitioned the government to charter a company of London merchants having a monopoly of trade by sea to the East Indies. The charter to the East India Company was granted on December 31, 1600, under the title of the “The Governor, and Company of Merchants of London Trading into the East Indies”; the Levant Company was granted a new charter to distinguish the monopoly areas of the two companies. The governor named in the charter of the East India Company was Sir Thomas Smith (or Smythe). Smith’s grandfather, Andrew Judd, had been a principal founder of the Muscovy Company. His father had preceded him as a leading tax collector, and had been a key royal official in erecting the edifice of royal absolutism, high taxation, and economic restrictionism during the Elizabethan era. Smith was governor also of the Muscovy Company and the Levant Company, of which he was a founder, and was also the principal member of the group of London merchants to whom Raleigh had in 1589 assigned his patent for American colonization. Indeed, Smith was the governor of every one of England’s privileged companies then interested in foreign commerce and colonization. Smith has been referred to as the greatest “merchant-prince” of his era, but it is clear that his status and wealth arose not from private trade, but from the governmental privileges of tax-farming and grants of monopoly.

The first voyage of the East India Company went out under the direction of James Lancaster and John Davis in 1601, and was followed the next year by George Weymouth’s second voyage along the coast of North America, sponsored by the East India and Muscovy companies. Meanwhile, Sir Walter Raleigh resumed his interest in the New World in 1602, sending out another futile expedition to search for survivors of the Roanoke Colony. But in the following year, Raleigh’s colonizing activities were unceremoniously cut short by the accession of King James I to the throne of England. One of James’ first acts was to consign Raleigh to an indefinite imprisonment in the Tower and abruptly to vacate his dominion over Virginia. Among the king’s motives was the desire to give Spain a tangible token of the new king’s wish to conclude peace between the two warring countries. For Raleigh was now perhaps the most ardent warmonger and plunderer against Spanish shipping and whose colonizing activities sought bases for aggression against Spain; his incarceration was therefore a particularly apt token of peace between
the two nations. Indeed, peace was concluded the next year, in August 1604, after which King James cracked down on the formerly lionized captains of piracy and freebooting.

The Treaty of London of 1604 provided for freedom of commerce between England and Spain as it had existed prior to the war. Since England had had the right to sail to Spain and Portugal, England now claimed that its ships could sail to the East and West Indies as well. Spanish America was the source of tobacco, and its use in England increased greatly once trade was reestablished on a regular basis, even though James disapproved of its use as a poisonous weed. Although the London merchants hoped to monopolize the renewed trade with Spain, the protests of the merchants of the West Country ports, especially Bristol and Plymouth, forced the government to backtrack. First it tried to include the west country merchants in the monopoly, and then it decreed for all English merchants freedom of trade to Portugal, Spain, and the Western Mediterranean, a policy that was later to apply to American merchants. At the same time, the privileged merchants of the Levant and Muscovy companies were suffering further losses because of local difficulties, especially foreign invasions of Russia.

While economic pressure was turning the attention of English merchants once again to possible markets and supplies of raw materials in North America, and peace renewed attention to the New World that had been diverted by the war against Spain, the peace treaty also terminated the previously permanent employment of many military and naval officers engaged in the war. In 1605 Weymouth again explored the coast of New England, this time in behalf of a group of soldier-courtiers, including Sir Ferdinando Gorges, the Earl of Southampton, and the latter’s brother-in-law, Sir Thomas Arundel. Weymouth’s return in July 1605 led to several projects for trade and colonization in America, and in September of that year, petitions were presented to the Privy Council for the formation of companies to engage in these activities. Although the Privy Council was then considering a project to plant English colonists in the lands taken from the Irish in Ulster, the value of North American colonies to English shipowners and to the English navy led the Trinity House Corporation and the Privy Council to approve the petitions. Finally, in April 1606 Raleigh’s old dominion over Virginia was granted to two sets of powerful merchants, which included the merchants to whom Raleigh had sold his rights of trade.

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