Economic history of Colonial Maryland facts for kids

Maryland's early history as a colony was shaped a lot by its economy. The main crop grown there was tobacco. Even though Maryland would later become a state that allowed slavery, it wasn't until the 1700s that enslaved people became the main workforce on farms. During the colonial period, Maryland also started to develop industries and grow its towns. It tried different ways to use money and worked hard to grow more than just tobacco.

Starting the Colony: The First Settlers (1634-1660s)

The first settlers arrived in Maryland on St. Clement's Island on March 25, 1634. They soon set up their main settlement around St. Mary's City. Right away, they were able to grow enough food to feed themselves. They even had extra food to send back to Britain!

In these early years, most of the people who came to Maryland were indentured servants. These were people who agreed to work for a certain number of years to pay for their trip to the new world. Lord Baltimore, who founded Maryland, wanted to create a society with large land owners. However, the way land was given out actually led to many small farms. Many of these farms were owned by people who had once been indentured servants.

By the late 1600s, most farmers in Maryland owned smaller farms. They used a farming method called Chesapeake husbandry. This involved rotating crops over twenty years to keep the land healthy. This method was good for the soil, but it meant farms couldn't grow as big or produce as much as they might have otherwise.

Tobacco Troubles and New Rules (1640s-1660s)

As the colony grew, Maryland started to rely more and more on tobacco. But this also led to economic problems, especially when tobacco prices dropped. The colony tried to make new rules to help with these price changes.

When farmers first started growing tobacco in the 1630s, each farmer produced about 700 pounds a year. By the 1650s, this jumped to about 1,300 pounds per farmer! The total value of tobacco sent out of the colony reached between £800 and £1200. But the average tobacco farmer only earned £5 to £10 a year.

In the mid-1600s, Maryland faced several economic depressions. This happened because tobacco prices fell, but the cost of goods imported into the colony stayed the same. To deal with these tough times, the colonial government tried different ideas. They wanted to make the economy less dependent on just tobacco.

For example, they made rules about corn. Farmers had to grow at least two acres of corn. It was also against the law to send grain out of the colony if there wasn't enough food for everyone. To stop tobacco prices from falling even more, they even ordered the destruction of low-quality tobacco in 1640. The government also tried to encourage farmers to grow other crops like hemp and flax. They even tried to build port towns to help with trade, but this didn't work out very well.

During these difficult economic times, a few women became professionals. Katherine Hebden was one of only three doctors in Maryland during the 1640s and 1650s.

The Rise of Enslaved Labor (1670s-1730s)

After a period of change in England, the Maryland colony grew. It also began to shift towards using enslaved labor. This time also saw the start of industries and the growth of towns.

Around the early 1700s, wars in Europe, like King William's War and Queen Anne's War, caused the demand for tobacco to drop a lot. This led to another economic depression in Maryland. Because of this, many poorer farmers started to grow other things, like cattle and grain. They also began to learn crafts.

Even with these economic problems, many indentured servants continued to arrive until the late 1600s. But as the 1700s began, farmers started to use enslaved people for labor on their fields instead. The number of enslaved people in Maryland grew very quickly. Between 1704 and 1720, the enslaved population jumped from 4,475 to 25,000.

During this time, enslaved people were mostly found on larger farms that had more than ten enslaved workers. Some historians believe that this shift to enslaved labor led to bigger differences between rich and poor people in the colony. Wealthier Marylanders could make their farms much more productive with enslaved labor. For example, one historian, Trevor Burnard, noted that the richest farmers held 36 percent of the colony's wealth before 1708. By 1742, they held 58 percent!

Other changes were happening too. In the 1730s, farmers started to make iron near Annapolis. Annapolis itself was the biggest city in the colony at the time. Its population doubled between 1715 and 1740. Despite these changes, the colony faced another economic depression in the 1730s.

Leading Up to the Revolution (1740s-1770s)

In the last few decades before the American Revolution, Maryland's economy became more diverse. It wasn't just about tobacco anymore. The way money was used also changed.

After the French and Indian War, grain exports grew to about one-third of the amount of tobacco produced. However, Maryland's wheat trade faced problems in the 1760s. This was because the British government limited shipping to Britain. So, Maryland wheat was sent to Europe instead, where it had to compete with local farmers. To earn more money, large farm owners started lending money and renting land to other farmers. Even with these changes, tobacco production kept increasing. In the 1740s, the colony produced about 20 million pounds of tobacco each year. By the 1760s, this went up to 25 million pounds per year!

At first, English law didn't allow British money to be sent out of the country. It also didn't allow colonies to make their own money. This meant Maryland often had a shortage of currency. Merchants often paid British companies with special payment slips instead of actual money.

In fact, until a law was passed in 1747, tobacco was often used as money within the colony! After that, paper money started to replace the system of trading goods directly. Unlike most colonial paper money, which was backed by future taxes or land, Maryland's paper money was special. It was backed by a fund in the Bank of England. This fund would regularly convert some of its money into British pounds.