In 1625 King James died, and his son Charles became king. He left the Virginians to themselves for the most part. They liked this. But they did not like his giving the northern part of Virginia to a Roman Catholic favorite, Lord Baltimore, with the name of Maryland. Many Roman Catholics soon settled in Lord Baltimore's colony. The Virginians feared lest they might come to Virginia and made severe laws against them. Puritan missionaries also came from New England and began to convert the Virginians to Puritanism. Governor Berkeley and the leading Virginians were Episcopalians. They did not like the Puritans any better than they liked the Roman Catholics. They made harsh laws against them and drove them out of Virginia into Maryland.

Maryland included the most valuable portion of Virginia north of the Potomac. Beside being the owner of all this land, Lord Baltimore was also the ruler of the colony. He invited people to go over and settle in Maryland and offered to give them large tracts of land on the payment of a small sum every year forever. Each man's payment was small. But all the payments taken together, made quite a large amount which went on growing larger and larger as Maryland was settled. The Baltimores were broad-minded men. They gave their colonists a large share in the government of the colony and did what they could to bring about religious toleration in Maryland.

The English Roman Catholics were cruelly oppressed. No priest of that faith was allowed to live in England. And Roman Catholics who were not priests had to pay heavy fines simply because they were Roman Catholics. Lord Baltimore hoped that his fellow Catholics might find a place of shelter in Maryland, and many of the leading colonists were Roman Catholics. But most of the laborers were Protestants. Soon came the Puritans from Virginia. They were kindly received and given land. But it was evident that it would be difficult for Roman Catholics, Episcopalians, and Puritans to live together without some kind of law to go by. So a law was made that any Christian might worship as he saw fit. This was the first toleration act in the history of America. It was the first toleration act in the history of modern times. But the Puritan, Roger Williams, had already established religious freedom in Rhode Island.

Tobacco was the most important crop in early Maryland. But grain was raised in many parts of the colony. In time also there grew up a large trading town. This was Baltimore. Its shipowners and merchants became rich and numerous, while there were almost no shipowners or merchants in Virginia. There were also fewer slaves in Maryland than in Virginia. Nearly all the hard labor in the former colony was done by white servants. In most other ways, however, Virginia and Maryland were nearly alike.