Conceived in Liberty Volume 2 - Ludwig von Mises Institute

quickly increased their competing business in Fauquier County. Furthermore,
if the planters felt that the merchants' bids were too low, they could always
decide to ship on consignment to London, as they did in 1773. As Professor
James H. Soltow concluded in his admirable article on the subject:
From a business point of view, the tobacco buyer had not only a short-run
interest in purchasing as much tobacco at as low a price as possible, but also
a long-run interest in establishing and maintaining a market for his goods and
services. Shrewd entrepreneurs, engaged in a competitive business, recognized
that profits derived from efficient use of the capital invested in ships, stores,
and goods. Robinson [a merchant-factor] . . . summarized the . . . policy of
. . . tobacco purchasers in this way: "Such is the course of our trade that we
must endeavor to buy all the tobacco we can at the different stores at whatever
is the market price, the company not being willing to lose any of their interest
in this branch to any person whatever."*
*J. H. Soltow, "Scottish Traders in Virginia, 1750—1775" Economic History Review
(August 1959): 92.
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