USA > Kentucky > History of Kentucky, Volume II > Part 84
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. In 1775 white pioneers migrating westward from Virginia and North Carolina, at the instigation of the promoters of the Transylvania Com- pany, made a permanent settlement at Boonesborough, on the south side of the Kentucky River. Being familiar with the handling of tobacco and its value, they immediately began growing it along with other crops. Soon after the founding of Boonesborough, the price of export tobacco increased rapidly, which encouraged the tobacco farmers of Virginia, Maryland and North Carolina to migrate into this new and fertile terri- tory. Following the custom long prevalent in Virginia, tobacco became, to a limited extent, a medium of exchange. After home consumption had been supplied, the surplus was shipped down the Mississippi to New Orleans for exportation, but, having to pass through Spanish territory and being dependent on Spanish favor, this traffic encountered many dif- ficulties, some of which were not finally overcome until several years after the acquisition of the Louisiana Territory by the United States in 1803. Filson, in his History of Kentucky, published in 1784, asserts
20 Hanna's "The Wilderness Trail," Vol. II, p. 235.
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that "tobacco may be cultivated to great advantage, although not alto- gether the staple commodity of the country."
One of the first among the pioneer entrepreneurs of Kentucky to exploit on a considerable scale the growth and export of the Kentucky product was Gen. James Wilkinson, a native of Maryland, who had served in the Continental Army during the Revolution and came to Ken- tucky in the month of February, 1784. Setting out in the end of April, 1787, from Central Kentucky with a small cargo of tobacco and other produce, he descended the river to New Orleans, where he arrived the last of June or first of July. After disposing of his shipment at satis- factory prices, he obtained from the Spanish governor, Don Estevan Miro, a permit authorizing him to import, on his own account, to the market of New Orleans, free of duty, $35,000 worth of Kentucky pro- duce. The profits on tobacco were high, for in 1787 it brought in Spanish money $912 a hundredweight, while it was worth but $2 in Kentucky. A second permit, dated August 8, 1788, was granted by Miro to Wilkin- son and forwarded to the latter in Kentucky. This permit contained no limitation as to the amount to be imported from Kentucky. Its lan- guage, in part, was as follows:
"I, Don Estevan Miro, Colonel of the Royal Armies, Political and Military Governor, and Intendant General of the Provinces of Louisiana and West Florida, and Inspector of the Troops, etc., Grant free and full permission to the American Brigadier, Don James Wilkinson, set- tled in Kentucky, to direct or cause to be brought into this country by inhabitants of Kentucky one or more launches belonging to him with car- goes of the productions of that country." 21
To gain a revenue from the foreign trade, the Virginia Assembly, by an act of May 8, 1784, provided for the collection of customs duties at Louisville and also at Limestone (Maysville), another important ship- ping point on the Ohio River.22 In 1789, when the first customs districts were established by Congress, Louisville was made a port of entry for the district of Kentucky, and on August 4th of that year Peyton Short, a business partner of Wilkinson, was appointed collector. For ten years thereafter this was the only port on the Western rivers.23
Wilkinson's successful expeditions gave an impulse to the cultivation of tobacco in Kentucky, and the number of public warehouses for its storage and inspection increased rapidly along the rivers. Some of them antedated his first trips to New Orleans and greatly facilitated trade with the South. The center of Wilkinson's operations was Lexington, in Fayette County, where in 1784 he had opened a store, said to have been the third established in the district, but the Town of Frankfort was es- tablished in 1786 on land belonging to him, by special act of the Virginia Legislature.24
Three years before Kentucky began her existence as a commonwealth, separate from Old Virginia, the underlying principle of the plan lately adopted by growers of tobacco in Kentucky and adjoining states, under the name of "Burley Tobacco Growers Co-operative Marketing Asso- ciation," was recognized and enunciated in a single sentence that occurs in a letter of December 19, 1789, from James Wilkinson and Peyton Short, his co-partner, to Col. Isaac Shelby, a planter in Lincoln County, of which he was at that time high sheriff, and who afterwards became
11
21 Collins, History of Kentucky, 1874. Vol. I, p. 21; Clark; Proofs of the Cor- ruption of General James Wilkinson, Notes, No. I, p. 4; No. 27, pp. 55-56; Wilkin- son's Memories, Vol. II, p. 109, pp. 115-116; Deposition XIII; American Historical Review, Vol. IX, p. 494. For a picture of the times see "The Crossings" by Winston Churchill.
22 Hening's Statutes at Large of Virginia, Vol. XI, p. 399.
23 Executive Journal, U. S. Senate, 1789, p. 115.
24 Hening's Statutes at Large of Virginia, Vol. XII, pp. 391, 401.
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the first governor of the state. That sentence was in these words: "1000 hogsheads of Tobacco in the hands of one man will stand a much better chance for a good market than the same quantity in twenty hands at any market." The details of the plan devised by Wilkinson and Short and submitted to Colonel Shelby for his approbation are set forth in the above mentioned letter and a printed circular which accompanied it. The letter alone is here quoted : 25
"Lexington, Decr. 19th, '89.
"Dear Sir:
"We enclose you certain propositions to the planters of this District, to which we beg your patronage ;- this plan we humbly conceive is founded on principles of sound policy, as it tends to support the price and encourage the culture of the article it has in view, and we are per- suaded it embraces the interest of individuals more immediately than any prospect, which does or can offer under the existing circumstances of our commerce.
"1000 Hods: of Tobo: in the hands of one man, will stand a much better chance for a good market than the same quantity in 20 hands at any market, and we know that the privileges & connexions of our J. Wil- kinson will give us a decided advantage over any man, who will present himself at that City: (i. e. New Orleans).
"We do not look for any extraordinary advantage from the present scheme but we flatter ourselves we shall be able to make some small com- pensation for our trouble & that the satisfactory return we shall make to the shippers will secure the future confidence & custom of the plant- ers. We expect that we shall be able to close this transaction & render the returns by the first day of Nov. next.
"We shall esteem it a particular favor if you will give such support & render such service to the enclosed proposition & subscription list as you may conceive compatible with your interest & that of your fellow citizens.
"Your name at the head of the list affsd. w'd not only tend greatly to promote the execution of the proposed scheme, but would be a mark of confidence very flattering to, Dear Sir,
"Your most obt. Servants, "James Wilkinson, "Peyton Short."
Besides his independent ventures on his own account or those of him- self and co-partners, Wilkinson took advantage of the privileges accorded immigrants by the Spanish authorities and sent tobacco by them to New Orleans, and, to insure their future co-operation, formed temporary busi- ness arrangements with them.26 Yearly shipments were regularly made by Wilkinson until 1791, when he abandoned commercial life to re-enter the army.27 In one of his last consignments, in 1791, the three boats were the Royal Oak, Dreadnaught and Union, and when loaded ready to descend the Kentucky River they contained respectively forty-one hogs- heads, weighing 42,911 pounds net ; thirty-nine hogsheads, weighing 38,- 890 pounds net, and forty hogsheads, weighing 40,241 pounds net.28
Among the first to follow Wilkinson's lead in shipping tobacco and other produce from Kentucky to New Orleans, was John Halley. He was a native of Fairfax County, Virginia, and came to Kentucky at a very early date, with the foremost of the pioneers. He settled at or near
1
25 Shelby MSS., Durrett Collection, University of Chicago.
26 Verhoeff, The Kentucky River Navigation, Appendix, pp. 226, 229.
27 Wilkinson's Memoirs, Vol. II, p. 114.
28 How the Pioneers of the West Marketed Their Products, MS., by George
D. Todd, 1903, in Filson Club Papers.
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Boonesborough, and married Susan Anne Hart, a member of the noted Hart family of Kentucky. His younger brother, Henry Simpson Halley, (b. 18th May, 1762; d. 28th November, 1838), whose plantation in Fair- fax County was known as "Pleasant Green," was the great-grandfather of Samuel H. Halley, of Lexington. John Halley is said to have opened one of the first merchandise stores, planted one of the first orchards, and was one of the very first among the pioneer settlers of Kentucky to ship tobacco by boat to New Orleans. It is also a well-grounded tradition that he shipped to England the first crop of tobacco exported to that country from Kentucky, and imported into Kentucky the first goods brought direct from England and France to the Blue Grass country. He was in France in 1792, during the Revolution then in progress.29 A diary or journal kept by him of two of his trips from Boonesborough to New Orleans, one performed in 1789, the other in 1791, is still preserved in the Halley family.30
This expedition and its convoy of boats arrived at New Orleans on Friday, the 10th of June, 1791, six weeks after setting out from Boones- borough on the Kentucky River.
The warehouses established in the infancy of the Commonwealth are of especial interest in that they mark the introduction into Kentucky of a system of state inspection of commodities intended for foreign markets, which was continued for several decades after the separation from Vir- ginia and was one of great importance to our early commerce.31 The Kentucky legislature adopted the Virginia system in its entirety by an act approved December 18, 1792.32 Between 1792 (the first year of the Commonwealth) and 1810, some forty-two public warehouses for the storage and inspection of tobacco were established at various points on the Kentucky River, by special acts of the Legislature.33
By an act of the Legislature of December 13, 1820,34 all tobacco, to be inspected and passed, was required to be classed in one of three classes, to be denominated the first, second, and third class; the tobacco of each class to be "good, sound, merchantable, and clean of trash." Inspectors were required to break the bulk of each hogshead or cask in at least two places. This law further provided that "no inspector of tobacco shall engage or be concerned in the purchase of tobacco inspected at the ware- house of which he may be inspector, under the penalty of forfeiting his appointment."
Tobacco manufactories have been in operation in Louisville since 1819, and it is recorded 35 that the largest business in tobacco ever done in one day was transacted in Louisville on May 18, 1852, with a sale of 244 hogsheads, at $1.80 to $7.05 per hundred pounds, the higher figure being realized for "Mason County" tobacco. Ten years previously, tobacco raised in Mason had established a fine reputation in the New Orleans market for its superior quality.36 On May 21, 1858, in the first leaf tobacco fair held in Cincinnati, premiums for the best "Mason County" leaf were awarded to exhibits from Mason, Bracken, and Nicli- olas counties. Two days before, at Louisville, an exhibition of Ken- tucky leaf tobacco was held under the auspices of the State Agricultural Society. One hundred and twenty-nine entries competed for the pre-
29 Colonial Families of the United States, Vol. II, p. 303.
30 Now owned by Dr. Samuel H. Halley, of Lexington, Kentucky, and extracts from it will be found in the last note to this chapter.
31 Verhoeff, The Kentucky River Navigation, p. 73.
32 Littell's Laws, Vol. I, p. 134, Chap. Iviii.
33 Littell's Laws, Vols. I, II, and III; Verhoeff, The Kentucky River Navigation, Appendix, pp. 231-232.
34 Littell & Swigert's Digest, Vol. II, pp. 1212-1213; Session Acts, 1820-21, p.
117. 35 Collins' History of Kentucky (1874), Vol. I, p. 65.
36 Collins, History of Kentucky (1874), Vol. I, p. 49.
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mium, and first and second certificates, in four classes, viz .: (1) cutting, (2) manufacturing, (3) shipping, and (4) cigar. The successful prod- ucts were from Daviess, Bracken, Hart, Taylor, Christian, Green, and Mason counties. 37
In 1859, the production of tobacco in Kentucky amounted to 108,126,- 840 pounds, and in that year, the combined production of Kentucky, Tennessee, and Ohio, states which did not figure scarcely at all in 1790, was 176,707,518 pounds. One-half of the total crop produced in the United States was exported in 1860, England still being the chief mar- ket, though Germany was a close second. The Southern leaf, as a rule, was used for pipe smoking, chewing, and for snuff. Cigar leaf was almost entirely confined to the Northern states. The South, in 1860, became and has remained to this day, the largest producer of tobacco in the world, and still supplies the principal markets in Europe.38
Under date of February 2, 1863, a letter written by Col. Laban J. Bradford, of Augusta, Kentucky, and published in the press, showed that Kentucky was then the largest tobacco-growing state in the Union.39 In 1860, she produced 97,906,903 pounds, an increase of 42,405.707 pounds in ten years, the total for 1850 being only 55.501,196 pounds The Louisville warehouses, in 1867, sold a little over 8,000 hogsheads, and, in 1861, about 29,500 hogsheads-one house alone selling more than the entire sales of Liverpool, England. On June 2, 1864, in spite of the fact that it was in the midst of war time, there was a State Tobacco Fair held at Louisville. Sales of tobacco at one warehouse, on that date, totaled $82,474. One premium hogshead sold for $4,630, being at the rate of $4.90 per pound, and several others at prices ranging from $1.50 to $2.00 per pound.40 On November Ist, of the same year, it was re- ported that 63,323 hogsheads of tobacco had been sold at the Louisville warehouses since November 1, 1863, an increase of 26,610 over the year previous. 41
Following the Civil war, the increasing importance of tobacco culture in Kentucky is indicated by the fact that, on May 31, 1866, at the National Tobacco Fair at Louisville, the premiums awarded were very liberal, and premium hogshead sold at remarkably high prices, running from $550 per one hundred pounds, for manufacturing leaf, to $23 per hun- dred pounds for shipping leaf. Tobacco was still divided into the four classes of manufacturing, shipping, cutting, and cigar leaf, recognized at the Louisville Fair of 1858. The winning consignments came from Hart, Jefferson, Ballard, Christian, Owen, Mason, Bracken, and Barren counties. 42
SAMUEL H. HALLEY.
{General note to chapter on "The Romance of Tobacco," containing extracts from Journal of John Halley.]
"27th April, 1791. Embarked for New Orleans at 10 o'clock from Boonsborough-took eighty hogsheads on board two boats at Different landings & arriv'd at the mouth of Kentucky at 8 o'clock on Thursday, the Ist day of May-220 miles. Lay there till 2 in the afternoon, a guard being kept at that place, about 28 men, militia, commanded by Capt. Thompson. Relieved every two months. Moved on about four in the afternoon. Discovered a canough [canoe] at a considerable distance, crossing the Ohio from the West side. Supposed it to have been ingeons
37 Ibid., Vol. I, p. 80.
38 "Dixie Number" of Tobacco, Vol. LXIX, No. 21, March 25, 1920, published by Tobacco Trade Journal Company, New York.
39 Collins' History of Kentucky (1874), Vol. I, pp. 118-119.
40 Collins' History of Kentucky (1874), Vol. I, p. 134.
41 Ibid., Vol. I, p. 145.
42 Ibid., Vol. I, p. 172.
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[Indians]. Put our guns in the best order for defense. As we sailed on, saw the canough run under some willow bushes, and were hailed by a white man. I suspected a Decoy, but told him to come on Boarde. He came in his canough & told us he was in great distress, that he was from Fort Pitt, 20 days, two of his comrades were taken by the ingeons & he had made his escape, & had lived on roots he had got on the river shore, called wild potatoes. But his countenance & Dress betrayed him. I told him I was convinced he was a Rogue liar & [had] deserted. After strict examination he confest he belonged to Capt. Smith's Company at the Falls. I kept him on board one of my boats that night. The 6 of May, at 2 in the afternoon, we landed in sight of the Falls [of] Ohio. Took the deserter across to the Garrison, delivered him to the command- ing officer ; got a certificate to the contractor's store for ten Dollars. I took it in whiskey & sugar for my Men. Lay there that night, the Ohio being low, with three other boats in company conducted by Mr. Wm. Majors. He got a pilot in the morning to conduct his boats over the Falls. Mr. Wilkerson came up, the 7th, in the morning & informed me my other two Boats were lying below the Falls in safety, waiting for my arrival. He informed me it was very dangerous crossing the Rapids in his opinion & wish'd me to get a pilot, & said the boat that went over last took in a considerable Quantity of water over the Bow. The pilot then started one of Major's boats & went over safe. Returned for an- other boat at 10 o'clock. I then took 10 hands on board one [of] my boats to row and steer, & Wilkerson & myself went as pilots on top of the boat. We were obliged to go through the big shoot of the Falls, where the water run for a considerable distance almost as high as the top of our Boat. It was enough to Damp the stoutest heart that was unacquainted with the Rapidity of water that may be passed over with- out damage. I arriv'd safe at the lower end of the Rapids to my other boats in about 1 hour. Returned for the other boat immediately. We had near 5 miles to walk on shore to the boat. Took Dinner & started; went over safe & our spirits not so much damp'd on account of the dan- ger. Landed about four. Went up to Lewisville, in order to settle some business that night. Lodged at Capt. Patin's. Started early next morn- ing to my boats; found all well, it being Sunday, the 8 day [of] May. Wrote several letters & sent back by Mr. Henderson. Moved on our voyage at I in the afternoon, with 4 boats, 159 hhds. Tobacco on board, 2000 Wt. Bacon & lard, Io barrels flour, ingeon [Indian] meal, &ct. Left the three boats I mentioned conducted by Mr. Majors. Passed Salt River about 12 o'clock at night-25 miles. Had pleasant sailing. Mon- day, the 9, passed Flint Island at sunset-100 miles. Tues., the 10th, fine pleasant weather for the season. Wednesday, the 11th, passed Green River at 10 in the morning-100 miles. Passed several islands. The wind blew so high prevented our sailing this evening. Put to on the west side. At 2 in the afternoon, moved on. Thursday, the 12, at Daybreak, passed a town newly settled on the East side by Wm. B. Smith, at 7 in the morning, 20 miles below Green River, about 25 men in number inhabitants. About 10 at night we had heavy storm of wind & rain. Put to on the West side in sight of the Waughbash island. Got very wet crossing, having a head wind. The wind continued, Friday, the 13th. till 4 in the afternoon. Moved on till 6. Put to opposite the mouth of Waughbash river, on the island-100 miles. Moved on at 8 at night. 14th, Saturday, had pleasant sailing today. Passed the Big Rock & Cave on the west side at 9 o'clock in the morning-45 miles-passed Cumber- land River 2 o'clock at night-100 miles. 15th, Sunday morning, 7 o'clock, passed the Tennacee River on the East side, 12 [o'clock]. Put to at 3 o'clock at night in sight of the Mississippi. Lay till daybreak. Monday morning, 16, moved on, entered the Mississippi at sunrise-45
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miles. The river was low but very muddy. Passed the Iron Banks on the East side at 10 ;- 15 miles from the mouth [of] Ohio. Passed a great number of Island & sand bars. Put to after sunset at the lower end of an island on the East side, 10 miles above Lancelegress [Lance la Grace] town. Caught a fine fish tonight. Moved on at daylight, Tues- day, the 17th. Landed at Lancelegress at 9 in the morning. At 10 went up to the garrison to see the governor. He required a bill of lading of the Number of men on board & their names. I made out a bill. He signed his name as a pass to the next garrison. Made him a present of 2 bacon hams, which he accepted. After conversing some time with the Governor, went to by boats in order to move off at 2 o'clock, but was detained till 4, my men being scattered through the town and prairies to see the ingenons. Collected them together with much difficulty ; moved on ten miles. Put to on a small island on the west side in a fine eddy.
"29th, Sunday, moved on at daybreak. Passed Yazoo river at 5 in the afternoon on the East side. Put to at 7 on the west side, just above the Walnut Hills, 9 miles below the Yazoo, on the East side. At the Walnut Hills is a town lately settled by the Spaniards. 30, Monday morn- ing, at daybreak, heard the centinals proclaim 'All's Well' shorting after the Drum beat, by which I perceived regular order was kept up. I then got in a canough [canoe] with one of my men, left my boats & went down to the Garrison. I was conducted by one of the guard to the Com- mandant. He called for an interpreter. After asking me some Ques- tions, where I was from & what was my loding, &ct., I produced My pass from Laslegres [Lance la Grace]. He then asked me to walk with him to his office, & with a great deal of complaisance handed me a chair to sit down. He then asked me what news from Kentucky, & What had become of Doctor O'Fallon & Company, and whether he was coming down to settle at that place. I told him he had declined it this season. After some time Mr. Commandant Walked with me and showed me his artillery, among which was a 24 pounder. He pointed to it and said it was Bone For Doctor O'Fallon. There was 9 or 10 twelve pounders and a number of Swivels. Took breakfast with the Com. & his Lady. He then wrote to the Governor of Natches, signed my pass, & requested the favour of giving his compliments to the Governor of Natches & Orleans. I then took my leave & moved on my boats at 9 o'clock.
* * * * * *
"Ist June, Wednesday morning, moved on at Daybreak. Passed one Island, & landed at Natches at 9 in the morning .- Went up to the gar- rison, was informed that Governor Giosa [Gayoso] was from home. I then walked out about 11/2 miles into the country to see Mr. Granprey [Grand Pre], commander-in-chief at the garrison of Natches. He in- formed me the Governor was expected back from Cole's Creek on Thurs- day evening or Friday morning. I waited with a great deal of impatience for his return, being a good deal unwell, I heard of his arrival about 10 o'clock Friday morning. Walked up to his house immediately, about I mile from the landing. Was conducted into a room where his publick office is kept. Was asked to sit down. His Excellency came in in a few minutes. After some compliments passed, I presented by Passport, from Lancelegress [Lance la Grace], & after looking over it a few minutes, [he] asking me respecting my loading, & what news from Kentucky, &ct., and told me my business should be Done as quick as possible, & Requested I would stay and take Pot luck with him that evening, to which I consented. I then walked down to town with one of his young men, to get a certificate signed by the Quarter Master on the treasury at Orleans, for some bacon hams I had sold the Commandant at the Wal- nut Hills. Returned at one o'clock. The young men hastened to have my business done before Dinner, but did not complete it. Dinner came
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in at 2. His Excellency asked me to sit to dinner with him, with five other gentlemen, French & Spaniards. He ordered a chair for me on his left hand, & treated me with a great deal of complaisance in a plain, polite manner. He was said to be a real Spaniard, but educated in Eng- land. I think him to be as Clever a gentleman as I was ever acquainted with. After eating a very fine Dinner, & Drinking as much wine as necessary, I spoke to his Excellency respecting some business I wished to have done. He immediately called one of his young men, & ordered it done. It was dispatched as quick as possible. His Excellency had his carriage ready to ride out that evening ; wished me success on my voyage. I thanked him, wishing his Excellency every enjoyment. I then returned to my Boats about 5 in the afternoon in order to move off but a thunder cloud came up and prevented my sailing. Moved off at 2 o'clock at night. -4th June, Saturday, passed Owachitta [Ouachita] River about 10 in [the] morning.
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