What was the advantage of joint-stock limited liability companies in financing colonization?

Compared with other European nations in 1600, England was relatively poor.

As new agricultural techniques made fewer farmers necessary, the poor multiplied in the streets of cities such as London and Bristol. Much to the dismay of the wealthier classes, the impoverished were an increasingly burdensome presence and problem.

A Pain to Spain

	REASONS OR MOTIVES for the raising of a public stock to be employed for the peopling and discovering of such countries as may be found most convenient for the supply of those defects which this Realm of England most requires [the following]: 8. Where colonies are founded for a public-weal, they may continue in better obedience and become more industrious than where private men are absolute backers of a voyage. Men of better behavior and quality will engage themselves in a public service, which carries more reputation with it, than a private, which is for the most part ignominious in the end, because it is presumed to aim at a profit and is subject to rivalry, fraud, and envy, and when it is at the greatest height of fortune can hardly be tolerated because of the jealousy of the state. – Richard Hakluyt, "Reasons for Raising a Fund to Settle America On the Value of Colonies to England" (January 5, 1607)

But Elizabeth was not persuaded to invest the public treasury in a venture that was likely to fail. She was not opposed to private investors taking such a chance, however. Raleigh had tried and failed. When it became clear that the wealth of an individual was not enough, the joint-stock company arose.

The joint-stock company was the forerunner of the modern corporation. In a joint-stock venture, stock was sold to high net-worth investors who provided capital and had limited risk. These companies had proven profitable in the past with trading ventures. The risk was small, and the returns were fairly quick.

But investing in a colony was an altogether different venture.

The risk was larger as the colony might fail. The startup costs were enormous and the returns might take years. Investors in such endeavors needed more than a small sense of adventure.

Expedition Investors, Leaders, and Laborers

Who led these English colonial expeditions? Often, these leaders were second sons from noble families. Under English law, only the first-born male could inherit property. As such, Sir Francis Drake, Sir Walter Raleigh, and Sir Humphrey Gilbert were all second sons with a thirst to find their own riches.

Merchants who dissented from the Church of England were also willing investors in New World colonies. There were plenty of Puritans who had the necessary capital, and with the Catholic-leaning Stuart monarchs assuming the throne the Puritans' motive to move became stronger.

With an excess landless population to serve as workers, and motivated, adventurous, or devout investors, the joint-stock company became the vehicle by which England finally settled the Western Hemisphere.

This starkly contrasted with Spanish and French settlements. New Spain and New France were developed by their kings. The English colonies were developed by their people. Many historians argue that the primary reason the relatively small and late English colonization effort ultimately outlasted its predecessors was because individuals had a true stake in its success.

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What kind of investment was Queen Elizabeth making? As a finanical backer of English sea captain Francis Drake, she supported a buccaneer who found it easier to plunder the gold of others than mine it himself.

This philosophy of plunder motivated the sea dogs of Queen Elizabeth's time. Making a business of raiding Spanish ships, John Hawkins and Francis Drake gained riches for themselves and their investors.

Once, after raiding ports in New Spain, Drake was faced with a difficult dilemma. Because the Spanish fleet would surely destroy him if he attempted a conventional return, he proceeded to circumnavigate the globe in his flight. Upon Drake's safe arrival in England, the Spanish demanded his arrest.

New Spain refers to Spanish-controlled territories in North America. These territories included what would become the southwest United States, Florida, Mexico, Central America north of Panama, some West Indian islands, and the islands of the Philippines.

The Knight Stuff

Of course, Elizabeth refused to comply with Spain's demands. She was one of Drake's investors. Instead, she knighted him on the deck of his treasure-laden ship. In the process, Drake became the first to sail around the world since Ferdinand Magellan's voyage. He completed perhaps the longest escape route in the history of the world.

As tensions flared between England and Spain, it soon became sensible for England to establish permanent settlements in the New World to rival the Spanish. If nothing more, they could serve as bases from which to raid Spanish ships.

Early Attempts at Colonizing

The first to attempt such a venture was Humphrey Gilbert. Gilbert had already made a name for himself as a colonizer. Throughout the 1560s and 1570s, he ruthlessly put down Irish rebellions. Due to his fervor for the Church of England, he stopped short of nothing — torture, starvation, or beheading — in the name of the queen. He took this philosophy and loyalty to Newfoundland with the goal of establishing the first permanent English settlement in the New World.

Sir Francis Drake wearing the Drake Jewel or Drake Pendant at his waist
Marcus Gheeraerts the Younger, 1591

In 1583, he rushed ashore and proudly claimed the land for his queen — despite the fact that fishermen from other countries had lived there for decades. His ship was lost at sea on his return home.

Roanoke

Sir Walter Raleigh's expedition to Roanoke did not fare much better. In 1585, Raleigh's men settled on the small island off the coast of modern-day North Carolina. Relations with the Native American inhabitants were peaceful at first, but as the colonists' supplies dwindled, amity dwindled too. The colonists left in 1586 after beheading the local Indian chief, Wingina.

Raleigh arranged for Governor John White and a group of families to return to live in peace with the natives in 1587. Violence, however, is not easily forgotten. Within one month, hostilities resumed, and White was forced to return to England to ask Raleigh for reinforcements.

Time was not on White's side. When the war with Spain erupted, White could not return to the colony for three years. When he set foot on Roanoke Island in August 1590, he searched frantically for the settlers, including his daughter and granddaughter, the first English New World baby, named Virginia Dare.

All that could be found was the remains of a village and a mysterious word, "CROATOAN," engraved on a tree. White concluded there must be a connection between the word and a nearby Indian tribe, but before he could investigate, a violent storm forced him out to sea and back to England.

This lost colony remains one of the greatest mysteries of the colonial period.

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Most modern American citizens consider Great Britain to be their European "parent" country.

However, by the time British arrived in the New World and established their first permanent settlement at Jamestown in 1607, much of the continent had already been claimed by other European nations.

All of the modern Southwest, including Texas and California, had been peopled by Spanish settlers for about a century. The entire expanse of land between the Appalachian Mountains and the Rocky Mountains had at one point been claimed by France.

Many factors contributed to Britain's tardiness. England was not the most powerful European nation in the 16th century. Spain was most influential. Along with Portugal, Spain dominated New World exploration in the decades that followed Columbus. France, the Netherlands, and Sweden all showed greater interest in the Western Hemisphere than England did.

A voyage by John Cabot on behalf of English investors in 1497 failed to spark any great interest in the New World. England was divided in the 1500s by great religious turmoil. When Henry VIII broke with the Catholic Church in 1533, decades of religious strife ensued. Finally, under Henry's daughter Elizabeth, the English were prepared to stake their claims.

Although England was an island and therefore a seafaring nation, Spain was the undisputed superpower of the seas in the 16th century. Many of England's adventurous sea captains found that plundering Spanish ships was a far simpler means of acquiring wealth than establishing colonies.

Sea Dogs and the Spanish Armada

These sea dogs, including Walter Raleigh, Francis Drake, and the infamous John Hawkins, helped provoke the eventual showdown between Elizabeth I's England and Philip II's Spain.

Sea dogs were English mariners of the Elizabethan era employed by the queen to harass the Spanish fleets and establish a foothold in the New World. Among the most prominent sea dogs were Francis Drake, John Hawkins, Humphrey Gilbertand, and Walter Raleigh. These sea captains possessed exceptional maritime and military skills as well as a burning desire for capturing Spanish treasure.

Philip was certain that his great fleet of ships would put an end to England's piracy. In 1588, one of the greatest turning points in world history occurred when Spain's "invincible" armada of 130 ships sailed into the English Channel. Despite their numerical inferiority, the English ships were faster and easier to maneuver than the Spanish fleet. With the aid of a great storm, Elizabeth's ships humiliated Philip's navy, which returned to Spain with fewer than half their original number.

This battle marked the beginning of the end of Spain's domination of Europe and the Western Hemisphere. More importantly for England, it marked the dawn of the era of permanent English settlement of the New World.

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The Iroquois people have inhabited the areas of Ontario and upstate New York for well over 4,000 years.

Technically speaking, "Iroquois" refers to a language rather than a particular tribe. In fact, the Iroquois consisted of five tribes prior to European colonization. Their society serves as an outstanding example of political and military organization, complex lifestyle, and an elevated role of women.

Governance and War

Until the 1500s, the five tribes of the Iroquois devoted much energy toward fighting and killing each other. According to oral tradition, it was about this time that they came to their senses and united into a powerful confederation.

The five tribes designed quite an elaborate political system. This included a bicameral (two-house) legislature, much like the British Parliament and modern U.S. Congress. The representatives, or sachems, from the Seneca and Mohawk tribes met in one house and those of the Oneida and Cayuga met in the other. The Onondaga sachems broke ties and had the power to veto decisions made by the others. There was an unwritten constitution that described these proceedings at least as early as 1590. Such a complex political arrangement was unknown in Europe at that time.

	Excerpts from the Iroquois Constitution Roots have spread out from the Tree of the Great Peace, one to the north, one to the east, one to the south and one to the west. The name of these roots is The Great White Roots and their nature is Peace and Strength... The soil of the earth from one end of the land to the other is the property of the people who inhabit it. By birthright the Ongwehonweh (original beings) are the owners of the soil which they own and occupy and none other may hold it. The same law has been held from the oldest times. The Great Creator has made us of the one blood and of the same soil he made us and as only different tongues constitute different nations he established different hunting grounds and territories and made boundary lines between them... Whenever a foreign nation is conquered or has by their own will accepted the Great Peace their own system of internal government may continue, but they must cease all warfare against other nations... The women of every clan of the Five Nations shall have a Council Fire ever burning in readiness for a council of the clan. When in their opinion it seems necessary for the interest of the people they shall hold a council and their decisions and recommendations shall be introduced before the Council of the Lords by the War Chief for its consideration.

Although the tribes began to work together, they surely did not renounce war. They fought and captured other native tribes as well as wave after wave of European immigrants who presented themselves. They fought the early French and British settlers. During the French and Indian War they remained officially neutral, but would join either side to exploit an advantage. Both sides courted Iroquois support during the Revolution. As a result, there was a split in the Confederacy for the first time in over 200 years. Iroquois fought Iroquois once more.

The longhouse was the center of Iroquois life. Archaeologists have unearthed longhouse remains that extend more than the length of a football field.

Agriculture was the main source of food. In Iroquois society, women held a special role. Believed to be linked to the earth's power to create life, women determined how the food would be distributed — a considerable power in a farming society.

Women were also responsible for selecting the sachems for the Confederacy. Iroquois society was matrilineal; when a marriage transpired, the family moved into the longhouse of the mother, and family lineage was traced from her.

The Iroquois society proved to be the most persistent military threat the European settlers would face. Although conquest and treaty forced them to cede much of their land, their legacy lingers. Some historians even attribute some aspects of the structure of our own Constitution to Iroquois ideas. In fact, one of America's greatest admirers of the Iroquois was none other than Benjamin Franklin.

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When the British set foot on the North American continent at Jamestown, they encountered the Powhatan Indians. The Pequots and Narragansetts lived in New England as the Pilgrims and Puritans established a new home. William Penn encountered the Leni Lenape natives while settling "Penn's Woods."

Although these tribes have great differences, they are linked linguistically. All of these tribes (or nations) speak an Algonquin language. These Algonkian (or Algonquian) groups were the first the English would encounter as these early settlements began to flourish.

Which word is correct? When anthropologists classified Native American languages, they took all of the languages of the same language family as the Algonkin tribe (also called the Algonquin tribe) and called it the Algonquian or Algonkian language family.

Algonquian and Algonkian both refer to the Algonquin language or to the group of tribes that speak related dialects. Therefore, the Algonquian tribes (including the Delaware, the Narragansetts, the Pequot, and the Wampanoag) are so called because they all speak the Algonkin or Algonquin language.

The Algonkians relied as much on hunting and fishing for food as working the land. These tribes used canoes to travel the inland waterways. The bow and arrow brought small and large game, and the spear generated ample supplies of fish for the Algonkian peoples. Corn and squash were a few of the crops that were cultivated all along the eastern seaboard.

Misunderstandings

As the first group to encounter the English, the Algonkians became the first to illustrate the deep cultural misunderstandings between British settlers and Native Americans. British Americans thought Algonquian women were oppressed because of their work in the fields. Algonkian men laughed at the British men who farmed — traditionally work reserved for females. Hunting was a sport in England, so British settlers thought the Algonkian hunters to be unproductive.

The greatest misunderstanding was that of land ownership. In the minds of the Algonkians selling land was like selling air. Eventually this confusion would lead to armed conflict.

The Powhatan Confederacy

The Powhatan organized a confederacy. Virginians were met with strong resistance as they plunged westward. In New England, Wampanoags under the leadership of Metacomet fought with Puritan farmers over the encroachment west onto Indian land. The pacifist Quakers were notable exceptions. Pennsylvania refused to raise a militia against the Indians for as long as Quakers dominated the government.

Unfortunately, the good times between the groups were few. The marriage of Pocahontas to John Rolfe and the first Thanksgiving with the Puritans did little to prevent the fighting. In most cases, each side regarded the other with fear and suspicion.

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In the centuries that led to the year 1000, Europe was emerging from chaos. Tribes roamed the countryside evoking fear from luckless peasants. The grandeur that was Rome had long passed. Across the Atlantic, the North American continent was also inhabited by tribes. The Anasazi managed to build glorious cities in the cliffs of the modern Southwest. Their rise and fall mark one of the greatest stories of pre-Columbian American history.

Anasazi means "ancient outsiders." Like many peoples during the agricultural era, the Anasazi employed a wide variety of means to grow high-yield crops in areas of low rainfall. Their baskets and pottery are highly admired by collectors and are still produced by their descendants for trade. It is their cliff dwellings, however, that captivate the modern archæologist, historian, and tourist.

The famed cliff dwellings were built into the mountainsides with but one exit for the sake of defense. With the exception of hunting and growing food, all aspects of living could be performed within the dwelling. Deep pits were periodically dug within the living quarters. These pits, called kivas, served as religious temples for the ancient Anasazi. Sleeping areas were built into the sides of the cliffs. Even water could be gathered between the porous cracks in the walls — all by clever design, of course.

Historians can only theorize why the Anasazi civilization declined. One explanation is attack by hostile tribes. Others believe the resources of the area were becoming exhausted.

The durability of their structures has proven remarkable. Think of how our contemporary structures fall into utter disrepair without constant maintenance. The cliff dwellings have endured over eight hundred years of exposure to the elements and still stand proud. Modern day visitors can marvel at Anasazi accomplishments at Mesa Verde National Park or Canyon de Chelly National Park, to name a few.

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Since 1492, European explorers and settlers have tended to ignore the vast diversity of the people who had previously lived here. It soon became common to lump all such groups under the term "Indian." In the modern American world, we still do. There are certain experiences common to the survivors of these tribes. They all have had their lands compromised in some way and suffered the horrors of reservation life.

Language Lessons

Stereotyping Indians in this way denies the vast cultural differences between tribes. First, there is the issue of language. The Navajo people of the Southwest and the Cherokees of the Southeast have totally unrelated languages.

There were over 200 North American tribes speaking over 200 different languages. The United States used the uniqueness of the Navajo language to its advantage in World War II. Rather than encrypting radio messages, it proved simpler to use Navajos to speak to each other in their everyday language to convey high-security messages. It worked.

Between 1942 and 1945, about 400 Navajos served as code talkers for the U.S. Marines. They could encode, transmit, and decode a message in a fraction of the time it took a machine to do the same. And unlike with machine codes, the Japanese were never able to break the Navajo code.

Excerpts from the Navajo Code Talkers' Dictionary

– excerpted from the Navajo Code Talkers' Dictionary (revised as of June 15, 1945), Department of the Navy

Different Strokes for Different Folks

Lifestyles varied greatly. Most tribes were domestic, but the Lakota followed the buffalo as nomads. Most engaged in war, but the Apache were particularly feared, while the Hopis were pacifistic. Most societies were ruled by men, but the Iroquois women chose the leaders.

Native Americans lived in wigwams, hogans, igloos, tepees, and longhouses. Some relied chiefly on hunting and fishing, while others domesticated crops. The Algonkian chiefs tried to achieve consensus, but the Natchez "Sun" was an absolute monarch. The totem pole was not a universal Indian symbol. It was used by tribes such as the Chinook in the Pacific Northwest to ward off evil spirits and represent family history.

It is important that students of history explore tribal nuances. Within every continent, there is tremendous diversity. The tribal differences that caused the Apache and Navajo peoples to fight each other are not so different from the reasons Germans fought the French. Recognizing tribal diversity is an important step in understanding the history of America.

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In Renaissance times, Europeans were not the only ones accomplishing great things. No one can deny the beauty of Michelangelo's brushwork or the brilliance of Shakespeare's verse. But societies elsewhere also flourished. As the modern world turned 1600, it seems as though each corner of the globe had its own "renaissance." The Native American societies of North America were no different. They had diverse cultures and languages, much like Europe.

When the British staked their claim to the east coast of the modern United States, they could not have dreamed of the complexity of the peoples they were soon to encounter.

There are between 140 and 160 different American Indian tribes. There is no single Native American language. It would be as difficult for the Mohawk Indians of the East to converse with Zuni Indians of the West as it would be for Germans to converse with Turks.

Twenty-seven states derive names from Indian languages. Native Americans turned wild plants such as corn, potatoes, pumpkin, yams, and lima beans into farm crops for human consumption. More than half of modern American farm products were grown by Native Americans before British colonization.

Medicine was not an unknown science in the Western Hemisphere. Most natural herbs used for medicinal purposes in the modern world had also been used by Native Americans before European contact. Archaeologists have learned that North American Indians made salt by evaporation and mined a great many minerals including copper, lead, and coal.

Despite myths to the contrary, not all Native Americans were peaceful. Like Europe, the American continent faced tribal warfare that sometimes led to human and cultural destruction.

In short, there is no simple way to tell the tale of a continent that had been peopled by diverse communities for thousands of years. Their tales are as complex as any others, their cultures as rich, their knowledge as deep. British contact did not mark the replacement of established cultures by a better way of life, but rather the beginning of a new civilization based on a blend of diverse folkways.

An examination of three groups — Anasazi, Iroquois, and Algonkian — serves as a beginning to learning about the American world that once was.

As you read this section, keep in mind the following questions:

1. How did European explorers respond to the language, clothing, customs, dwellings, and food of the Native American peoples?
2. How did the Native Americans respond to the language, clothing, and customs of the explorers?
3. What are some of the difficulties in trying to understand someone from a different culture?
4. Why was it difficult for European explorers of the 15th and 16th centuries to understand the diversity of the native peoples who lived in the Americas?
5. How do historians and archaeologists know what the explorers experienced? How do they know what the Native American peoples experienced?
6. What do you want to know about the Americas prior to the era of European exploration? How can you find out?