The small companies formed to carry out these ventures in the far-Eastern seas continued to grow in number, and by the very keenness of their competition threatened each other's enterprises with ruin. In these circumstances the States-General and the Estates of Holland determined, under the leadership of Oldenbarneveldt, to take a step which was to be fraught with very important consequences. The rival companies were urged to form themselves into a single corporation to which exclusive rights would be given for trading in the East-Indies. Such a proposal was in direct contradiction to that principle of free trade which had hitherto been dear to the Netherlanders, and there was much opposition, and many obstacles had to be overcome owing to the jealousies of the various provinces, towns and bodies of merchants who were interested. But at length the patience and statesmanship of Oldenbarneveldt overcame all difficulties, and on March 20,1601, a charter was issued creating the United East-India Company and giving it a monopoly of the East-India trade (for 21 years) with all lands east of the Cape of Good Hope and west of the Straits of Magellan. The executive control was vested in a College known as the Seventeen. Extensive sovereign privileges were conferred upon the company and exercised by the Seventeen in the name of the States-General. They might make treaties with native rulers and potentates, erect forts for the protection of their factories, appoint governors and officials with administrative and judicial functions, and enlist troops, but these officials and troops were required to take an oath of allegiance to the States-General. The States-General themselves became "participants" by investing the 25,000 pounds, which the company had paid them for the grant of the charter. The capital speedily reached the amount of six and a half million guilders.

The warlike operations of the year 1599 were uneventful and in the main defensive, except on the eastern frontier where the Spanish forces under the command of the Admiral of Aragon, Mendoza, captured Wesel and Rheinberg. The new rulers of the Netherlands, Albert and Isabel, did not make their entry into Brussels until the end of 1599; and almost before they had had time to organise the new government and gain firm possession of the reins of power in the Belgic provinces, they found themselves confronted with a serious danger. The seaport of Dunkirk had for many years been a nest of pirates, who preyed upon Dutch commerce[pg.101] in the narrow seas. The States-General, urged on by Oldenbarneveldt, resolved in the spring of 1606 to despatch an expedition to besiege and capture Dunkirk. Both Maurice and William Lewis were opposed to the project, which they regarded as rash and risky. The States-General, however, hearing reports of the archduke's soldiery being mutinous for lack of pay, persisted in their purpose, and Maurice, against his better judgment, acquiesced. A body of picked troops, 12,000 foot and 3000 horse, was assembled on the island of Walcheren. A succession of contrary winds delaying the sailing of the force, it was determined to march straight through West Flanders to Nieuport and then along the shore to Dunkirk. A deputation of the States-General, of which Oldenbarneveldt was the leading member, went to Ostend to supervise, much to Maurice's annoyance, the military operations. The stadholder, however, reached Nieuport without serious opposition and proceeded to invest it. Meanwhile the Archduke Albert had been acting with great energy. By persuasive words and large promises he succeeded in winning back the mutineers, and at the head of a veteran force of 10,000 infantry and 1500 cavalry he followed Maurice and, advancing along the dunes, came on July 1 upon a body of 2000 men under the command of Ernest Casimir of Nassau, sent by the stadholder to defend the bridge of Leffingen. At the sight of the redoubtable Spanish infantry a panic seized these troops and they were routed with heavy loss. The fight, however, gave Maurice time to unite his forces and draw them up in battle order in front of Nieuport. Battle was joined the following afternoon, and slowly, foot by foot, after a desperate conflict the archduke's Spanish and Italian veterans drove back along the dunes the troops of the States. Every hillock and sandy hollow was fiercely contested, the brunt of the conflict falling on the English and Frisians under the command of Sir Francis Vere. Vere himself was severely wounded, and the battle appeared to be lost. At this critical moment the Spaniards began to show signs of exhaustion through their tremendous exertions in two successive fights under a hot sun in the yielding sand-hills; and the prince, at the critical moment, throwing himself into the midst of his retreating troops, succeeded in rallying them. At the same time he ordered some squadrons of cavalry which he had kept in reserve to charge on the flank of the advancing foe. The effect was instantaneous. The Spaniards were[pg.102] thrown into confusion, broke and fled. The victory was complete. The archduke only just escaped capture, and of his army 5000 perished and a large number were taken prisoners, among these the Admiral of Aragon. Almost by a miracle was the States' army thus rescued from a desperate position. Maurice's hard-won triumph greatly enhanced his fame, for the battle of Nieuport destroyed the legend of the invincibility of the Spanish infantry in the open field. The victorious general, however, was not disposed to run any further risks. He accordingly retreated to Ostend and there embarked his troops for the ports from which they had started. The expedition had been very costly and had been practically fruitless. Oldenbarneveldt and those who had acted with him were deeply disappointed at the failure of their plans for the capture of Dunkirk and were far from satisfied with Maurice's obstinate refusal to carry out any further offensive operations. From this time there arose a feeling of soreness between the advocate and the stadholder, which further differences of opinion were to accentuate in the coming years.

The vigour and powers of leadership displayed by their new sovereigns in meeting the invasion of Flanders by the States' army, though a defeat in the field had been suffered at Nieuport, had inspired their subjects in the southern Netherlands with confidence and loyalty. Albert had proved himself a brave commander, and his efforts had at least been successful in compelling the enemy to withdraw within his own borders.

Ostend had long been a thorn in the side of the government at Brussels and energetic steps were soon taken to besiege it. But the possession of Ostend was important also to Elizabeth, and she promised active assistance. The larger part of the garrison was, indeed, formed of English troops, and Sir Francis Vere was governor of the town. The siege which ensued was one of the memorable sieges of history, it lasted for more than three years (July 15,1601, to September 20,1604) and was productive of great feats of valour, skill and endurance on the part alike of besiegers and besieged. The States' army under Maurice, though it did not march to the relief of Ostend, endeavoured to divert the attention of Albert from his objective by attacks directed elsewhere. In 1601 the fortresses of Rheinberg and Meurs on the Rhine were captured, and an attack made upon Hertogenbosch. In 1602 the important town of Grave on the Meuse was taken and a raid made into Brabant and Luxemburg.[pg.103]

Meanwhile the defenders of Ostend had been making a desperate resistance, and little progress was made by the besiegers, with the result that a great drain was made upon the finances of the archdukes and there were threatenings of mutiny among the troops. But the situation was saved by the intervention of a wealthy Genoese banker, Ambrosio de Spinola, who offered his services and his money to the archdukes and promised that if he, though inexperienced in warfare, were given the command, he would take Ostend. He fulfilled his promise. Without regard to loss of life he pressed on the siege, and though as fast as one line of defences was taken another arose behind it to bar his progress, little by little he advanced and bit by bit the area held by the garrison grew less. At last in the spring of 1604, under the pressure of the States-General, Maurice led an army of 11,000 men into Flanders in April, 1604, and laid siege to Sluis on May 19. Both Maurice and William Lewis were still unwilling to run the risk of an attack on Spinola's army in its lines, and so the two sieges went on side by side, as it were independently. Sluis fell at the end of August, and Ostend was then at its last gasp. Urged now by the deputies of the States to make a direct effort to relieve the heroic garrison, Maurice and his cousin, after wasting some precious time in protesting against the step, began to march southward. It was too late. What was left of Ostend surrendered on September 20, and Spinola became the master of a heap of ruins. It is said that this three years' siege cost the Spaniards 80,000 lives, to say nothing of the outlay of vast expenditure. Whether Maurice and William Lewis were right or wrong in their reluctance to assail Spinola's entrenched camp, it is certain that they were better judges of the military situation than the civilian deputies of the States. In any case the capture of Sluis was an offset to the loss of Ostend; and its importance was marked by the appointment of Frederick Henry, the young brother of the stadholder, as governor of the seaport and the surrounding district, which received the name of States-Flanders. The tremendous exertions put forward for the defence of Ostend had been a very serious drain upon the resources of the United Provinces, especially upon those of Holland. Taxation was already So high that Oldenbarneveldt and many other leading members of the States-General and Provincial Estates began to feel despondent and to doubt whether it were possible to continue the war. No[pg.104] longer could the States rely upon the assistance of England. James I had concluded peace with Spain; and, though he made professions of friendship and goodwill to the Dutch, wary statesmen, like the Advocate, did not trust him, and were afraid lest he should be tempted to deliver up the cautionary towns into the hands of the enemy. Reverting to the policy of William the Silent, Oldenbarneveldt even went so far as to make tentative approaches to Henry IV of France touching the conditions on which he would accept the sovereignty of the Provinces. Indeed it is said that such was the despair felt by this great statesman, who knew better than any man the economic difficulties of the situation, that he even contemplated the possibility of submission to the archdukes. Had he suggested submission, there would have been no question, however, that he could not have retained office, for Maurice, William Lewis and the military leaders on the one hand, and on the other the merchants and the adventurous seamen, whom they employed in the profitable Indian traffic, would not have listened for a moment to any thought of giving up a struggle which had been so resolutely and successfully maintained for so many years. For financially the archdukes were in even worse plight than the Netherlanders, even though for a short time, with the help of Spinola, appearances seemed to favour the Belgic attacks on the Dutch frontier districts. In 1605 the Genoese general, at the head of a mixed but well-disciplined force in his own pay, made a rapid advance towards Friesland, and, after capturing Oldenzaal and Lingen and ravaging the eastern provinces, concluded the campaign with a brilliant success against a body of the States cavalry commanded by Frederick Henry, who nearly lost his life. Maurice with inferior forces kept strictly on the defensive, skilfully covering the heart of the land from attack, but steadily refusing a pitched battle. In the following year Spinola with two armies attempted to force the lines of the Waal and the Yssel, but, though thwarted in this aim by the wariness of the stadholder and by a very wet season, he succeeded in taking the important fortresses of Groll and Rheinberg. Maurice made no serious effort to relieve them, and his inactivity caused much discontent and adverse comment. His military reputation suffered, while that of his opponent was enhanced. But subsequent events showed that Maurice, though perhaps erring on the side of caution, had acted rightly. The armies which had[pg.105] threatened the safety of the Provinces had been raised at the charges of a private individual, but the financial resources, even of a Spinola, were not capable of a prolonged effort; there was no money in the State treasury; and the soldiery, as soon as their pay was in arrears, began once more to be mutinous. The bolt had been shot without effect, and the year 1607 found both sides, through sheer lack of funds, unable to enter upon a fresh campaign on land with any hope of definite success. But though the military campaigns had been so inconclusive, it had been far different with the fortunes of maritime warfare in these opening years of the seventeenth century. The sea-power of the Dutch republic was already a formidable factor which had to be reckoned with and which was destined to be decisive.

The East-India Company was no sooner founded than active steps were taken to make full use of the privileges granted by the Charter. A fleet of 17 vessels was despatched in 1602 under Wybrand van Waerwyck. Waerwyck visited Ceylon and most of the islands of the Malay Archipelago, established a factory at Bantam with a staff of officials for developing trade relations with the natives, and even made his way to Siam and China. He sent back from time to time some of his vessels richly laden, and finally returned himself with the residue of his fleet after an absence of five years in June, 1607. Another expedition of thirteen ships sailed in 1604 under Steven van der Hagen, whose operations were as widespread and as successful as those of Waerwyck. Van der Hagen took possession of Molucca and built factories at Amboina, Tidor and other places in the spice-bearing islands. On his way back in 1606 with his cargo of cloves, spices and other products of the far Orient, he encountered at Mauritius another westward-bound fleet of eleven ships under Cornelis Matelief. Matelief's first objective was the town of Malacca, held by the Portuguese and commanding the straits to which it gave its name. Alphonso de Castro, the Viceroy of India, hastened however with a naval force far more powerful than the Dutch squadron to the relief of this important fortress; and after a hardly-fought but indecisive action Matelief raised the siege on August 17. Returning, however, about a month later, the Dutch admiral found that De Castro had sailed away, leaving only a detachment of ten vessels before Malacca. Matelief at once attacked this force, whose strength was about equal to his[pg.106] own, and with such success that he sank or burnt every single ship of the enemy with scarcely any loss, September 21, 1606.

These successful incursions into a region that the Spaniards and Portuguese had jealously regarded as peculiarly their own aroused both anger and alarm. All available forces in the East (the Portuguese from the Mozambique and Goa, the Spaniards from the Philippines) were equipped and sent to sea with the object of expelling the hated and despised Netherlanders from East-Indian waters. Paulus van Caerden, Matelief's successor in command, was defeated and himself taken prisoner. Nor were the Spaniards content with attacking the Dutch fleets in the far East. As the weather-worn and heavily-laden Company's vessels returned along the west coast of Africa, they had to pass within striking distance of the Spanish and Portuguese harbours and were in constant danger of being suddenly assailed by a superior force and captured. In 1607 rumours reached Holland of the gathering of a large Spanish fleet at Gibraltar, whose destination was the East-Indies. The directors of the Company were much alarmed, an alarm which was shared by the States-General, many of whose deputies were cargo-shareholders. Accordingly, in April, 1607, a fleet of twenty-six vessels set sail for the purpose of seeking out and attacking the Spaniards whether in harbour or on the open sea. The command was given to one of the most daring and experienced of Dutch seamen, Jacob van Heemskerk. He found twenty-one ships still at anchor in Gibraltar Bay, ten of them large galleons, far superior in size and armament to his own largest vessels. Heemskerk at once cleared for action. Both Heemskerk and the Spanish commander, d'Avila, were killed early in the fight, the result of which however was not long doubtful. The Spanish fleet was practically destroyed. On the Dutch side no vessel was lost and the casualties were small. Such a disaster was most humiliating to Castilian pride, and its effect in hastening forward the peace negotiations, which were already in progress, was considerable.

The initial steps had been taken by the archdukes. Through the secret agency of Albert's Franciscan Confessor, Father John Neyen, both Oldenbarneveldt and Maurice were approached in May, 1606, but without any result. Early in 1607 however the efforts were renewed, and negotiations were actively set on foot for the purpose of concluding a peace or a truce for a term of twelve,[pg.107] fifteen or twenty years. There were, however, almost insuperable difficulties in the way. In the first place the stadholders, the military and naval leaders, the Calvinist clergy, and the great majority of the traders honestly believed that a peace would be detrimental to all the best interests of the States, and were thoroughly distrustful of the motives which had prompted the archdukes and the Spanish government to make these advances. Oldenbarneveldt on the other hand thought that peace was necessary for the land to recuperate after the exhausting struggle, which had already lasted for forty years; and he found strong support among the burgher-regents and that large part of the people who were over-burdened and impoverished by the weight of taxation, and sick and weary of perpetual warfare. There were, however, certain preliminary conditions, which all were agreed must be assented to, and without which it would be useless to continue the negotiations. The independence of the United Provinces must be recognised, freedom of trade in the Indies conceded, and the public exercise of Catholic worship prohibited. After some parleying the archdukes agreed to treat with the United Provinces "in the quality and as considering them free provinces and states," and an armistice was concluded in April, 1607, for eight months, in order that the matters in dispute might be referred to the King of Spain and his views upon them ascertained. Not till October did the king's reply arrive at Brussels. He consented to negotiate with the States "as free and independent" parties, but he required that liberty of Catholic worship should be permitted during the truce, and no mention was made of the Indian trade. This was by no means satisfactory; nevertheless the influence of Oldenbarneveldt prevailed and the negotiations were not broken off. On February 1, 1608, the archdukes' envoys, the two leading members being Ambrosio de Spinola and the president of the Privy Council, Ricardot, arrived in Holland. They were met at Ryswyck by Maurice and William Lewis in person, and with much ceremony and splendour a solemn entry was made into the Hague, the procession with the brilliant retinues forming a memorable spectacle, as it made its way through the crowds which lined the roads. The negotiations were conducted in the Binnenhof. The Special Commissioners to represent the States-General were William Lewis of Nassau, Walraven, lord of Brederode, and a deputy from each of the provinces under the leadership of [pg.108] Oldenbarneveldt. Envoys from France, England, Denmark, the Palatinate and Brandenburg were present, took part in the discussions, and acted as friendly mediators.

The question of treating the United Provinces "as free States" was soon settled. The archdukes, who were aiming at the conclusion of a truce in which to recuperate and not of a definitive peace, showed an unexpected complaisance in granting a concession which they regarded as only temporary. Then came the really serious questions as to freedom of trade in the Indies and the liberty of Catholic worship. Of these the first was of most immediate interest, and showed irreconcilable differences between the two parties. The Spaniards would never consent to any trespassing in the closed area, which they regarded as their own peculiar preserve. The Dutch traders and sailors were fired with the spirit of adventure and of profit, and their successful expeditions had aroused an enthusiasm for further effort in the distant seas, which had hardened into a fixed resolve not to agree to any peace or truce shutting them out from the Indian trade. For months the subject was discussed and re-discussed without result. Some of the foreign delegates left. The armistice was prolonged, in order that Father Neyen might go to Madrid for further instructions. It was found, however, that the King of Spain would yield nothing. The negotiations came to a standstill, and both sides began to make preparations for a renewal of the war. President Jeannin on behalf of the French king, by his skilful mediation, in which he was supported by his English colleague, saved the situation. He proposed as a compromise a twelve years' truce, pointing out that whatever terms were arranged would only be binding for that short period. He managed to bring about a personal interview between Oldenbarneveldt and Maurice, who had respectively headed the peace and war parties in the provinces; and henceforth both consented to work together for this proposal of a limited truce, during which the trade to the Indies should be open and the religious question be untouched. The assent of the States-General and of the several Provincial Estates was obtained. The two most interested, Holland and Zeeland, were won over, Holland by the arguments and persuasions of the Advocate, Zeeland, which was the last to agree, by the influence of Maurice. Jeannin was aware that the finances of Spain were at their last gasp, and that both the archdukes and Philip III were most anxious for a respite[pg.109] from the ever-consuming expense of the war. At last the long and wearisome negotiations came to an end, and the treaty concluding a truce for twelve years was signed at the Hague on April 9,1609. The territorial status quo was recognised. The United Provinces were treated "as free States over which the archdukes made no pretensions." Nothing was said about the religious difficulty nor about trade in the Indies, but in a secret treaty the King of Spain undertook not to interfere with Dutch trade, wherever carried on. Thus access to the Indies was conceded, though to save appearances the word was not mentioned. This result was due solely to the diplomatic tact and resource of Jeannin, who was able to announce to Henry IV that he had accomplished his task "to the satisfaction of everyone, and even of Prince Maurice."

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