e waters, it became
the custom of the planters located near such streams to act as factors
for their neighbors in the interior. By 1775 the factorage system had
developed to the extent that one planter found four firms at
Colchester, eleven at Dumfries, and twenty at Alexandria which would
buy wheat, tobacco, and flour in exchange for British goods and
northern manufactures.

The rise of a class of factors in Virginia, aided by the Scottish
merchants, made it possible for the planters to break away from the
London commercial agents. The Revolution cut the connection between
England and the Virginia planters, but the factorage system was not
destroyed. The merchants and businessmen in the former colonies simply
replaced the English factors. Soon after the cessation of hostilities,
England had reestablished her commercial predominance owing to the
superior facilities and experience of British merchants in granting
long term credits, and perhaps the preference of Americans for British
goods. The British were again willing to extend to the planters the
accustomed long term credits, but they were careful to grant it only to
merchants of high standing.

Lax inspecting caused the buyers to lose faith in the inspectors'
reputation and guarantee. As early as 1759 tobacco was being sold by
displaying samples. It was quite natural then for the buyers to begin
visiting the warehouses as the tobacco was being inspected, to enable
them to purchase the better hogsheads directly from the original owner.
But it seems that even as late as 1800 such practices were only
occasional. While lax inspections caused a few buyers to visit the
warehouses, the presence of these buyers led many of the planters to
bring their tobacco to the warehouses most frequented by the buyers. As
these buyers paid higher prices for the better tobacco, the ultimate
result was the development of market towns and the disappearance of the
tobacco note. Within a decade after the turn of the nineteenth century
Richmond, Manchester, Petersburg, and Lynchburg had become major market
towns.

PRODUCTION, TREND OF PRICES, AND EXPORTS

When tobacco was first planted in Jamestown, Spanish tobacco was
selling for eighteen shillings per pound. Virginia tobacco was inferior
in quality, but it was assessed in England at ten shillings per pound.
On the basis of these high prices the Virginia Company of London agreed
to allow the Virginia planters three shillings per pound,