But national instinct is often wiser than what is supposed to be high national statesmanship, and there can be no doubt that the true foundation of the East India Company was the simple recognition of an iron necessity. Every merchant in Holland knew full well that the Portuguese and Spaniards could never be driven out of their commercial strongholds under the equator, except by a concentration of the private strength and wealth, of the mercantile community. The Government had enough on its hands in disputing, inch by inch, at so prodigious an expenditure of blood and treasure, the meagre territory with which nature had endowed the little commonwealth. Private organisation, self-help; union of individual purses and individual brains, were to conquer an empire at the antipodes if it were to be won at all. By so doing, the wealth of the nation and its power to maintain the great conflict with the spirit of the past might be indefinitely increased, and the resources of Spanish despotism proportionally diminished. It was not to be expected of Jacob Heemskerk, Wolfert Hermann, or Joris van Spilberg, indomitable skippers though they were, that each, acting on his own responsibility or on that of his supercargo, would succeed every day in conquering a whole Spanish fleet and dividing a million or two of prize-money among a few dozen sailors. Better things even than this might be done by wholesome and practical concentration on a more extended scale.
So the States-General granted a patent or charter to one great company with what, for the time, was an enormous paid-up capital, in order that the India trade might be made secure and the Spaniards steadily confronted in what they had considered their most impregnable possessions. All former trading companies were invited to merge themselves in the Universal East India Company, which, for twenty-one years, should alone have the right to trade to the east of the Cape of Good Hope and to sail through the Straits of Magellan.
The charter had been signed on 20th March, 1602, and was mainly to the following effect.
The company was to pay twenty-five thousand florins to the States-General for its privilege. The whole capital was to be six million six hundred thousand florins. The chamber of Amsterdam was to have one half of the whole interest, the chamber of Zeeland one fourth; the chambers of the Meuse, namely, Delft, Rotterdam, and the north quarter; that is to say, Hoorn and Enkhuizen, each a sixteenth. All the chambers were to be governed by the directors then serving, who however were to be allowed to die out, down to the number of twenty for Amsterdam, twelve for Zeeland, and seven for each of the other chambers. To fill a vacancy occurring among the directors, the remaining members of the board were to nominate three candidates, from whom the estates of the province should choose one. Each director was obliged, to have an interest in the company amounting to at least six thousand florins, except the directors for Hoorn and Enkhuizen, of whom only three thousand should be required. The general assembly of these chambers should consist of seventeen directors, eight for Amsterdam, four for Zeeland, two for the Meuse, and two for the north quarter; the seventeenth being added by turns from the chambers of Zeeland, the Meuse, and the north quarter. This assembly was to be held six years at Amsterdam, and then two years in Zeeland. The ships were always to return to the port from which they had sailed. All the inhabitants of the provinces had the right, within a certain time, to take shares in the company. Any province or city subscribing for forty thousand florins or upwards might appoint an agent to look after its affairs.
The Company might make treaties with the Indian powers, in the name of the States-General of the United Netherlands or of the supreme authorities of the same, might build fortresses; appoint generals, and levy troops, provided such troops took oaths of fidelity to the States, or to the supreme authority, and to the Company. No ships, artillery, or other munitions of war belonging to the Company were to be used in service of the country without permission of the Company. The admiralty was to have a certain proportion of the prizes conquered from the enemy.
The directors should not be liable in property or person for the debts of the Company. The generals of fleets returning home were to make reports on the state of India to the States.
Notification; of the union of all India companies with this great corporation was duly sent to the fleets cruising in those regions, where it arrived in the course of the year 1603.
Meantime the first fleet of the Company, consisting of fourteen vessels under command of Admiral Wybrand van Warwyk, sailed before the end of 1602, and was followed towards the close of 1603 by thirteen other ships, under Stephen van der Hagen?
The equipment of these two fleets cost two million two hundred thousand florins.