There were two types of tobacco marketing employed in Virginia during the
colonial period.

The older method -- the consignment system -- which you have described below
predominated from the early 1600's through about 1730.

The second method -- usually referred to as direct purchase -- had the
planter sell his crop directly to an English, or more likely Scots merchant
in Virginia.  This merchant or factor then handled all the arrangements and
assumed all the risk for getting the tobacco to it's ultimate market in
Europe.  As you might expect, the planter usually got a lower price for his
crop it he marketed it via direct purchase, but the upside was that he had
his cash or credit in hand at the moment of sale.

As to literature on this topic, I must suggest my own book on this subject
as one which describes both methods and their impacts upon the Virginia
economy in detail:

Peter V. Bergstrom,  _Markets and Merchants: Economic Diversification in
Colonial Virginia_, (New York, 1985).

I'm sorry to say that it is no longer in print, but it is available in most
university libraries.

> -----Original Message-----
> From: Janet Hunter [mailto:[log in to unmask]]
> Sent: 24 April 2001 8:01 AM
> To: [log in to unmask]
> Subject: Colonial Tobacco Exports -- Risk/Liability
>
>
> I was recently provided some information that suggested that
> when a colonial
> VA tobacco grower/plantation owner "sold" his crop for export to a
> merchant/ship captain/factor he was not in fact selling it
> but giving it to
> that person/company on consignment.  The actual "sale" would
> not occur until
> the tobacco reached the ultimate purchaser in Europe, for example.
>
> Until that time, the tobacco grower was still considered the
> "owner".  Thus
> if the ship went down, he would lose and not ultimately be
> paid for his
> tobacco.  For the smaller tobacco grower, in particular, this
> seems to me
> like a very risky situation when they were dependent upon the
> cash from the
> tobacco sales.  I would have thought there would be
> enterprising businessmen
> in VA willing to buy tobacco outright there, and thus assume
> the risk for
> themselves (or for another party) for the transatlantic
> voyage and reap the
> ultimate profits.  I do realize that if the grower did sell
> on consignment,
> without another middleman, he would stand to reap greater profits.
>
> I have been looking for confirmation of the information
> provided me, so far
> unsuccessfully, in Virginia/Colonial Chesapeake history books.
>
> Do any of you have any thoughts on whether the information I have been
> provided above is an accurate?
>
> Thank you in advance.
>
> Best Regards,
> Janet (Baugh) Hunter
>
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