Essential Facts
- The Virginia Company of London was a Joint Stock Company that founded Jamestown, the first permanent English settlement in the New World.
- Despite early struggles, Jamestown survived due to the leadership of men like John Smith, Thomas Gates, and John Rolfe.
- The Virginia Company created the House of Burgesses, the first representative government in America.
- The Company set up the Headright System to encourage immigration to Virginia.
- The Virginia Company was dissolved in 1624 by King Charles I, and Virginia became a Royal Colony.
Key Events
- 1606 — King James I issued a charter establishing the Virginia Company and the Plymouth Company.
- 1607 — The Jamestown Settlement was founded.
- 1607 — John Smith was captured by the Powhatans and, according to legend, rescued by Pocahontas.
- 1608 — John Smith took control of Jamestown, stabilizing the settlement.
- 1609 — The Second Virginia Charter was issued.
- 1609 — The First Anglo-Powhatan War started, lasting until 1614.
- 1609 — Jamestown suffered through the “Starving Time.” By the spring of 1610, only 60 settlers remained.
- 1610 — Thomas Gates implemented the “Lawes Divine, Morall, and Martiall,” the first English laws in the New World.
- 1612 — The Third Virginia Charter was issued.
- 1612 — John Rolfe planted tobacco in Jamestown.
- 1614 — John Rolfe married Pocahontas. The “Peace of Pocahontas” ended the First Anglo-Powhatan War.
- 1618 — The Great Charter of Virginia was issued.
- 1619 — The House of Burgesses met for the first time.
- 1619 — An English ship, the White Lion, sailing for the Dutch, sold 19 captive Africans to Jamestown settlers.
- 1619 — The first English women arrived in Jamestown.
- 1622 — The Powhatan Attack of 1622 started the Second Anglo-Powhatan War.
- 1620 — Plymouth Colony was established by English immigrants, including the Pilgrims.
- 1624 — King Charles I revoked the Virginia Company’s charter, ending its control of the Province of Virginia.
Significance
The Virginia Company of London is important to American History for the role it played in the establishment of Jamestown, English laws in Virginia, and representative government in the American Colonies.
History
- King James I issued a charter to the Virginia Company on April 10, 1606, for the establishment of English Colonies in America.
- The company was divided between the Virginia Company of London and the Virginia Company of Plymouth.
- The companies were Joint-Stock Companies funded by private individuals.
- The Virginia Company of London was given the right to establish colonies in the region between present-day Long Island to North Carolina.
- The Virginia Company of Plymouth was granted rights to territory in New England.
Purpose
- England wanted to follow in Spain’s footsteps and establish colonies in the New World, which were essential to the development of England’s Mercantile System.
- The purpose of the first expedition was to establish a settlement and to find gold and silver deposits, as well as a river route to the Pacific Ocean. The English believed a route to the ocean would allow them to establish trade with the Far East. At that time, Europeans believed the Pacific Ocean was much closer to the East Coast of America. They had no idea it was 3,000 miles to the west.
London Company Investors
- The Virginia Company of London intended to make a profit for its investors and the Crown.
- According to the First Charter, the leaders of the London Company were Sir Thomas Gates, Sir George Somers, Richard Hakluyt the Younger, and Edward-Maria Wingfield.
- Sir Thomas Smith was the Treasurer of the London Company.
- Appeals for investors were presented as benefiting national and religious causes.
- Some investors had connections to the failed colony of Roanoke Island.
The Plymouth Company and Popham
- Thomas Hanham, Ralegh Gilbert, William Parker, and George Popham led the Plymouth Company of London.
- Most of the investors were from the town of Plymouth.
- In 1607, this group established the short-lived Popham Colony in present-day Maine.
- Sir Ferdinando Gorges, who also played a role in the establishment of the New Hampshire Colony, was an investor. Gorges is often referred to as the founder of Maine.
Conflicting Interests in the London Company
In the early years, conflicting goals created division, keeping the company from making a profit.
- The Crown wanted the settlers to find gold and silver instead of growing crops for sustenance and long-term stability.
- Sir Robert Rich invested in the London Company and wanted to use Jamestown as a base for Privateers to operate against Spain.
- Sir Edwin Sandys invested in the Company to rebuild his fortune.
- Humanitarians sought to help the unemployed by making them Indentured Servants.
- Leaders in the Church of England wanted to “civilize” the Native American Indians living in the Tidewater Region and make them Protestant allies.
Some historians have argued that some people were interested in settling in Virginia for “humanitarian” reasons. During the reign of Queen Elizabeth I, Richard Hakluyt the Elder suggested sending the “offals of our people” to the New World.
In 1584, his cousin, Richard Hakluyt the Younger, wrote A Discourse Concerning Western Planting. In it, he listed 23 reasons why Queen Elizabeth I should pursue colonization of Virginia. Hakluyt the Younger echoed his cousin’s sentiments, referring to Virginia is a place for the “wandering beggars of England” but also argued it might give them a chance to “…be unladen…” and “…better bred up…”
- Richard Hakluyt the Elder (c. 1530–1591) — A lawyer, geographer, and economic essayist who helped lay the ideological foundation for English colonization of North America. Working closely with his younger cousin, Richard Hakluyt the Younger, he advocated overseas expansion and influenced England’s exploration policy. His Inducements to the Liking of the Voyage (1585) outlined religious, economic, and political benefits of colonization.
Establishment of Jamestown
Jamestown — also known as “James City” — was established on May 14, 1607, by the Virginia Company on James Island, a strategic location along the James River. Jamestown was approximately 60 miles from the confluence of the James River and the Chesapeake Bay. The settlement was established by a group of about 104 colonists who were led by Governor Edward Maria Winfield and his Governor’s Council. The members of the Governor’s Council were:
- Bartholomew Gosnold
- Christopher Newport
- John Martin
- John Ratcliffe
- George Kendall
- John Smith
This first expedition to Virginia included three ships under the command of Captain Christopher Newport. The ships were the Susan Constant, Godspeed, and Discovery. Together, they carried 104 men and boys. The group included 40 soldiers, 35 “gentlemen,” artisans, and laborers. The ships set sail from England on December 20, 1606, and arrived in the Mid-Atlantic Region in April 1607.
Challenges in Governing and Sustaining Jamestown
- Jamestown faced difficulties in becoming profitable, lacking a lucrative export.
- The colony suffered from mismanagement, disease, and food shortages.
- Conflicts with the Powhatan People contributed to its struggles.
- The Virginia Company secured a second charter in 1609, reducing royal control and appointing a strong governor.
- Public stock sales were allowed to raise funds.
- A third charter in 1612 granted control over Bermuda (Somers Isles) and introduced fundraising via a public lottery.
- Smaller investors ousted Sir Thomas Smith in 1619, replacing him with Sir Edwin Sandys.
Reforms and the Fall of the Virginia Company
- Sir Edwin Sandys recruited over 3,500 settlers, many as indentured servants.
- The company granted land in exchange for quitrents and established plantations along the James River.
- Settlements encroached on Powhatan territory.
- Sandys promoted the production of goods like iron, potash, and lumber to reduce reliance on tobacco.
- A representative assembly was established, controlled by wealthy colonists who opposed restrictions on tobacco farming.
- The Powhatan Attack of 1622 and ongoing financial issues led to the company’s dissolution in 1624 by Charles I.
- Virginia became a Royal Colony after the company’s failure.
Appendix — Virginia Company of London Charters
This section provides important details about the four charters the Virginia Company of London received from the English Crown.
First Charter of Virginia (April 10, 1606)
The Charter of 1606 established the territorial boundaries for the Colony of Virginia.
On April 10, 1606, King James I granted a charter creating two companies—the Virginia Company of London and the Virginia Company of Plymouth — to establish English colonies along the east coast of North America.
The Virginia Company of London was given rights to the territory in the Mid-Atlantic region. Meanwhile, the Plymouth Company was given rights to present-day New England and established the Popham Colony.
Second Charter of Virginia (May 23, 1609)
The Second Virginia Charter of 1609 expanded the territorial boundaries of the Colony of Virginia.
Virginia Company investors asked for a new charter to allow them to sell additional shares in the company. King James I granted the charter, which expanded the borders of the Virginia Colony. It is often referred to as a “sea to sea” charter because it extended the western border to the Pacific Ocean. The Second Charter also gave the Virginia Company the authority to make its own laws as long as they did not violate existing English laws.
Third Charter of Virginia (March 12, 1612)
King James I issued the Third Virginia Charter, which expanded the territorial boundaries of the Colony of Virginia to the Bermuda Islands.
A new joint stock company, the Somers Isles Company, was created to fund the colonization of Bermuda, which was known at the time as the Somers Isles. The company was led by Sir Thomas Smythe.
Great Charter of Virginia (November 18, 1618)
Despite the introduction of tobacco, the Virginia Company was still in debt, so it decided to create a way to encourage people to pay to emigrate from England to Virginia. Two officers of the company, Sir Thomas Smythe and Sir Edwin Sandys, drafted a set of instructions for the new Governor, Sir George Yeardley, who replaced Thomas West. The instructions, which are known as the “Great Charter of Virginia,” established the Headright System and authorized the election of a General Assembly — the House of Burgesses.
