ABSTRACT
Privateering required a small capital investment and offered a quick return which made it an ideal start-up trade for a new colony situated in the midst of a traditional enemy. 'Frugal, prudential and hopeful' it did indeed prove to be. But plunder could not provide a base for long-term growth because it was constrained by the size of the host economy and, by about 1670, privateering had reached the limits of expansion. By this time planting and merchandizing were established at Jamaica and quickly overtook plunder in value. But privateering did not dwindle away and, though it became relatively less significant, Port Royal was still in 1689 the privateering capital of the Caribbean, 'a sodom filled with all manner of debauchery', welcoming the privateers' large purchasing power as ever before. Information about falling marginal profits and rising risks encouraged the privateers to diversify their activities and seek new hunting grounds.
