How is the Virginia company an example of mercantilism?

Answer 1

Mercantilism by definition is the accumulation of power through wealth. Thusly, the Virginia Company was formed as a for-profit venture to establish a settlement on the east coast of the Americas for England. It was granted in a royal charter and had several stockholders as its investors. England was trying to amass fortunes that could rival those of Spain, their enemy at the time. Spain had accumulated vast riches through the exploitation of South America and its caches of gold. When the settlers sponsored by the Virginia Company reached Jamestown, Virginia they began searching for a northwest passage to Asia and to search for gold. They obviously were not able to find the riches the Spanish had discovered in South America and, in their search for these riches, neglected to plant crops which eventually led to mass starvation and disease. Regardless, the land was settled in an attempt to make the investors of the Virginia Company wealthy. In 1624 King James revoked their charter and made Jamestown a royal colony, overseen by king's appointees.