By the later half of the 1730s a trend had started that would hurt the economy of Louisiana. French Merchants finding that they could not get the price for produce from the colonies to balance the price of goods they brought in were taking letters of exchange for the difference but found that getting reimbursed by the French government was a long and difficult process so they started to take their merchandise that was bound for the colonies to the French West Indies because they could take it to the colonies and sell it at a higher price. The colonists, not having enough transportation for their export also took goods to sell to the French West Indies but ended up selling them at a lower price.1 Tobacco was another problem because the French Tobacco Farm preferred to deal in British leaf because it could be bought for less than that brought in from the colonies. The Farm declared that it could not operate buying Tobacco at the price that the French Merchants asked. So the French government regulated the price of Tobacco by starting out at a low price and raising it in a three-step process over the course of five years while subsidizing the trade with government funds.2 The regulation of Tobacco prices did not resolve the colonies problems because the French Tobacco Farm still rejected a lot of the import due to quality. With French subsidy of the Tobacco Industry the government kept the policy of buying from the least expensive market and this system kept the colonial export of tobacco from ever amounting to anything more than a sustainable market until after 1740.3 France did offer an incentive to assist the colonial Tar and Pitch Industry which increased production and export in the colonies, however, the French market could not handle the amount so it ended up being sold below cost. This Industry also did not amount to a profitable market until after 1740.4 The Seven Years' War did not affect Louisiana as much as the treaties signed at the end of it. France's losses forced them to cede Louisiana to Spain. Then the 1763 Treaty of Paris gave all the land east of the Mississippi to Britain making these areas a proving ground between to strong political powers. Both countries began energetic immigration and colonization policies that changed the demographics of their colonies tremendously.5 Unfortunately Louisiana, without financial backing from France was still basing her economy on credit. By 1762 Louisiana was in perilous shape. There wasn't any monetary exchange because there wasn't any tender left in the colonies. There was an abundance of letters of exchange but the value of these had dropped to a value less than what it was in 1740 at the time of the highest inflation. Many had reverted to subsistence agriculture and local merchants and traders did not have goods or markets to sell them in. The colonist lived a near-famine existence and recovery did not begin until the occupation of West Florida by Great Britain.6 1 Ibid, 74-76. 2 Ibid, 77-78. 3 Ibid, 80. 4 Ibid, 81-82. 5 Usner. Indians, Settlers, & Slaves, 106 6 Clark, John G. New Orleans, 149.