III.

Dutch East India Company

Incorporated from a number of smaller companies by the States General of the Netherlands in 1602, its monopoly extended from the Cape of Good Hope eastwards to the Strait of Magellan, with sovereign rights in whatever territory it might acquire. In 1619 Jan Pieterszoon Coen, regarded as the founder of the Dutch colonial empire in the East Indies, established the city of Batavia in Java (now Jakarta, Indonesia) as the headquarters of the company. From Batavia, Dutch influence and activity spread throughout the Malay Archipelago and to China, Japan, India, Persia, and the Cape of Good Hope. During the course of the 60-year war between Spain and the Netherlands (1605-1665), the Dutch company despoiled Portugal, which was united with Spain from 1580 to 1640, of all its East Indian possessions. It supplanted the Portuguese in most of present-day Indonesia and in the Malay Peninsula, Ceylon (now Sri Lanka), the Malabar Coast of India, and Japan. During this period it was also successful in driving English rivals from the Malay Archipelago and the Moluccas. In 1632 the Dutch killed the English factors, or agents, in Amboina, capital of the Dutch Moluccas; for this act the English government later exacted compensation. In 1652 the company established the first European settlement in South Africa on the Cape of Good Hope. At the peak of its power, in 1669, the Dutch company had 40 warships, 150 merchant ships, and 10,000 soldiers. Between 1602 and 1696 the annual dividends that the company paid were never less than 12 per cent and sometimes as high as 63 per cent. The charter of the company was renewed every 20 years, in return for financial concessions to the Dutch government. In the 18th century, internal disorders including corruption, the growth of British and French power, and the consequences of a harsh policy towards the native inhabitants caused the decline of the Dutch company. It was unable to pay a dividend after 1724 and survived only by exacting levies from native populations. It was powerless to resist a British attack on its possessions in 1780, and in 1799 the company went into liquidation, the Dutch government taking over its responsibilities, debts, and possessions.