CHAPTER VII

THE FOREIGN TRADE IN TOBACCO

At the beginning of the seventeenth century Spain had complete control of the tobacco supply except that which was already being grown in Europe and the Orient. As the following figures show, her trade with England in this commodity became of considerable value to her during the first twenty years. In his Advice How to Grow Tobacco, published 1615, C.T. says: "So greedy were our English of the Indian tobacco; as where in the beginning of our traffique there, some yeares since, the Spaniards (as in all new plantations) were prest with all sorts of wants; and had neither cloathes to cover them, nor shooes to tread on, nor bread to eate, and did therefore exchange their tobacco for Fish, Wine; Aqua-Vitæ, all sorts of lasting foods, for woollen stockins, hats, threed, hatchets and the like; they became in a short time so cloyd with all these commodities, as nothing, (some silkes and cloath of silver and gold excepted) but ready money and silver plate could content them."

1,613 lbs.

1617-9/8/17. Spanish tobacco imported, London

Total imports during whole period :
Outports

In 1619 the customs duties on the imports of Spanish tobacco in London amounted to £3,178 6s. 8d., and at the outports to £264 17s. 4d.o

This condition of affairs was viewed with alarm both by the economic thinkers of the day and also by the Virginia Company. The result was that Edward Bennett produced a treatise touchinge the inconveniences that the importation of tobacco out of Spayne hath brought into this land." He states that if the trade with Spain were in a satisfactory condition, as the two countries have been at peace for almost twenty years, there should be an abundance of silver in England, since silver formerly constituted the chief import from Spain. This, however, is not the case, and on the contrary,

1 Pipe Office Declared Account 911: Account of the Executors of Richard Wright, collector (under Indenture of 4 May, 14 James I. (1616) of the new impost on tobacco from the Nativity of St. John the Baptist, 13 James I. (1615) to 9th August, 15 James I. (1617).

2

Exchequer K.R. Customs Books, it.

3 Harleian MSS. No. 280, no. 30, pp. 173-7 (Brit. Mus.).

there is actually less silver in England in 1622 than there was in 1604. The reason why the normal importation of Spanish silver in exchange for English commodities has fallen off, is the enormous extent to which the Spanish tobacco trade has now grown. "For there is so much spent yeerly of that weed in this land as doeth cost in Spaine three score thousand pounds or neere thereabout." Not only are English goods sold for tobacco, but English money is taken out of the realm for the same purpose; and, as the Spanish are continually raising the price, the amount of money so lost is increasing. Taking everything into consideration, he believes that the total drain upon this kingdom, made by the Spanish tobacco trade averages about £100,000 per annum. "In soe much that I protest both Spain and all other nations saye tauntinglie unto us when they see all our goods landed (to use there owne words) Que todo esse se pagaca con humo,' ' that all that will be payd in smoake.'

This evil has been increased by the imposition placed upon this commodity, for "that brings the more damage to this damage for (except it be prohibited) our people will buy it whatsoever it cost." When King James placed an imposition on it in this country the Spanish King had gone one better and placed two on it, one on the Spanish consumer and the other on the English trade, for both of which,

according to Bennett, the English consumer has to pay. Again, when the English king had granted a patent for its sale, the Spanish king had followed suit, with the result that its price is not only kept up but raised. Bennett concludes from this that there was £1,000,000 less of silver in the country than there would be, were it not for this disastrous trade

He holds that since 1598 Spain had been able to extend and develop her colonies, thanks to the flourishing tobacco trade. The Spaniards have been able to foster the production of other commodities, having first made a beginning with tobacco, so that in 1622 their colonies are producing articles of great use, such as coffee, hides, sugar, sarsaparilla and balsam, etc. As a result of the prosperity, due largely to the tobacco trade, the Spanish colonies have become so popular that it is actually necessary to forbid any more people to leave Spain.

Unfortunately, the converse of this is also true, for prosperity in the Spanish colonies has resulted in depression in the Somers Islands and Virginia. As the universal demand in England is all for Spanish tobacco, there is no market for the Somers Islands and Virginia product, and thus His Majesty has been deprived of much revenue. If the King would grant to the Virginia Company the privilege of being the sole importers of tobacco, this would encourage more people to emigrate to the colony than the

Company had been able to send in twenty years. Once there, they, like the Spaniards, would quickly turn their attention to the production of useful commodities, though originally attracted there by tobacco only. It is clear then that a sure way of increasing the revenue by £100,000 per annum and of populating and developing Virginia is to prohibit the importation of Spanish tobacco. This the King of England has a perfect right to do, for has not the King of Spain done likewise in the case of English paper and silk ?

The argument that Virginia tobacco is not as good as Spanish is not convincing, because with encouragement better land will be discovered, and the cultivation improved. But even supposing the Spanish tobacco might be still superior, what of it? Is not Spanish wine better than English beer? Yet no one urges that therefore English beer shall be dropped for the Spanish product. Other countries have long obliged their peoples to use national products, no matter how inferior these may be to those from abroad, and this principle should be adopted in this particular case.

While it is clear that Bennett, like many others of the time, was seriously alarmed by the currency crisis of the years 1620-2, it is evident also that he was at least partially inspired to produce his work by those interested in the Virginia trade.