And no sooner had the infant colony been established than the Company turned with enthusiasm to the production of these highly desired commodities. A number of foreigners, Dutchmen and Poles skilled in the manufacture of ship-stores, were sent over to make a start with pitch, tar, turpentine and potash. They were to act as instructors, also, and it was expected that within a few years the Virginia forests would be filled with workers in these trades. Unfortunately their efforts met with ill success, and save for a few small samples of pitch and tar which were sent to England, nothing of value was produced.
For this failure the reason is apparent. All the able economists and statesmen who had predicted that the colony would become an industrial center had overlooked one vitally important factor--the lack of cheap labor. No matter how rich in natural resources, Virginia could not hope to compete with the long-established industries of Europe and Asia, because she lacked the abundant population requisite to success. It had been imagined by Hakluyt and others that the colony could avail herself of the surplus population of England, could drain off the upper stratum of the idle and unemployed. What more feasible than to set these men to work in the forests of the New World to produce the raw materials the want of which was responsible for unemployment in England itself!
But the voyage across the Atlantic was so long and costly, that it proved impossible to transport in any reasonable length of time enough workers to Virginia to supply her needs. And the few thousand that came over in the early years of the Seventeenth century were in such great demand that they could secure wages several times higher than those in vogue throughout Europe. Thus the London Company, from the very outset, found itself face to face with a difficulty which it could never surmount. Virginia could not compete with the ship-stores of the Baltic nations because her labor, when indeed it was found possible to secure labor at all, was far more expensive than that of Poland or Sweden or Russia. It mattered not that the Company sent over indentured servants, bound by their contracts to work for a certain number of years; the effect was the same. The cost of transportation swallowed up the profits from the servant's labor, when that labor was expended upon industries which had to face the competition of the cheap workers of the Old World.