The Pilgrims Joined a Money-Making Enterprise
Profit-seeking corporations launched England’s first commercial outposts in America, such as the one established by the Virginia Company at Jamestown. Even to investors more interested in profits than prophets, the Pilgrims made ideal candidates to launch a New World colony, given that they were close-knit, industrious and accustomed to hardship.
After the Pilgrims received a patent from the Virginia Company to establish a settlement in its jurisdiction, a group of 70 London businessmen called the Merchant Adventurers supplied the capital to finance the enterprise by purchasing shares in a joint-stock company. These backers paid for Mayflower, its crew and a year’s worth of supplies.
The Merchant Adventurers expected a return on their investment and required that the Pilgrims work for the company during their first seven years in America. Each colonist over the age of 16 received one share for emigrating and working the land, which would be theirs along with any future profits after the expiration of the seven-year contract.
In order to finance the voyage, the Pilgrims were forced to take aboard Mayflower fellow economic migrants who shared their quest for commercial success, but not their separatist beliefs. These “strangers,” as the Pilgrims called them, accounted for half of Mayflower passengers.
When the “strangers” argued that they were no longer bound by the Virginia Company’s charter after Mayflower landed far north of its target in Massachusetts in November 1620, Pilgrim leaders drew up the Mayflower Compact to set the rules for self-governance and quell any potential rebellion.
The Plymouth Colony Struggled to Turn a Profit
As a business enterprise, the colonial start-up faced a beginning as rocky as the New England soil the Pilgrims were forced to sow. The Plymouth Colony barely survived, let alone thrived, after a brutal first winter in America, and Mayflower returned to England empty of commodities. It was a sign of things to come.
“The early investors were dissatisfied with what the Pilgrims sent home,” Targett says. “They were meant to send back fur, timber and fish, and on a couple of occasions the ships sent back either sank or were captured by pirates, so the investors never saw the benefits.”
The Plymouth Colony finally gained its financial footing thanks to beaver pelts, which were in great demand back in England to make felt hats and other luxurious fashion accessories. “The Bible and the beaver were the two mainstays of the young colony,” wrote historian James Truslow Adams. “The former saved its morale, and the latter paid its bills, and the rodent’s share was a large one.”
The arrival of the Puritans and the establishment of the Massachusetts Bay Colony in the 1630s, however, increased the competition for beaver pelts and cut into the Pilgrims’ bottom line. Not until 1648 did the Pilgrims pay off their debt.
The Plymouth Colony ultimately faced a similar fate to many struggling businesses. It was consumed by a larger, more successful corporate entity when it was merged with other colonies to form the Province of Massachusetts Bay in 1691.