A General History and Collection of Voyages and Travels - Volume 18 / Historical Sketch of the Progress of Discovery, Navigation, and / Commerce, from the Earliest Records to the Beginning of the Nineteenth / Century, By William Stevenson

by Robert Kerr; William Stevenson

In consequence of a wild and ruinous spirit of speculation having seized the Dutch merchants, the government, in 1602, formed all the separate companies who traded to India, into one; and granted to this extensive sovereignty over all the establishments that might be formed in that part of the world. Their charter was for twenty-one years: their capital was 6,600,000 guilders (or about 600,000 l.) Amsterdam subscribed one half of the capital, and selected twenty directors out of sixty, to whom the whole management of the trade was entrusted.

From this period, the Dutch Indian commerce flourished extremely: and the company, not content with having drawn away a large portion of the Portuguese trade, resolved to expel them entirely from this part of the world. Ships fitted, either to trade or to fight, and having on board a great number of soldiers, were sent out within a very few years after the establishment of the company. Amboyna and the Moluccas were first entirely wrested from the Portuguese: factories and settlements were in process of time established from Balsora, at the mouth of the Tigris in the Persian Gulf; along the coasts and islands of India, as far as Japan. Alliances were formed with many of the Indian princes: and in many parts, particularly on the coasts of Ceylon, and at Pulicat, Masulipatam, Negapatam, and other places along the coasts of Coromandel and Malabar, they were themselves, in fact, the sovereigns. The centre of all their Indian commerce was fixed at Batavia in Java, the greatest part of this island belonging to them. From this general sketch of the extent of country, which was embraced, either by their power or their commerce, it is evident that the Indian trade was almost monopolized by them; and as they wisely employed part of the wealth which it produced, to establish and defend their possessions, they soon became most formidable in this part of the world, sending out a fleet of 40 or 50 large ships, and an army of 30,000 men.

They were not, however, content, but aimed at wresting from the Portuguese almost the only trade which remained to them; viz. their trade with China. In this attempt they did not succeed; but in the year 1624, they established themselves at Formosa. Soon after this, the conquest of China by the Tartars, induced or compelled an immense number of Chinese to leave their native country and settle in Formosa. Here they carried on a very extensive and lucrative trade; and Formosa became the principal mart of this part of Asia. Vessels from China, Japan, Siam, Java, and the Philippines, filled its harbours. Of this commerce the Dutch availed themselves, and derived great wealth from it, for about forty years, when they were driven out of the island. In 1601, the Dutch received permission to trade to Japan, but this privilege was granted under several very strict conditions, which were, however, relaxed in 1637, when they discovered a conspiracy of the Spaniards, the object of which was to dethrone the emperor, and seize the government. The jealousy of the Japanese, however, soon revived; so that by the end of the seventeenth century, the lucrative commerce which the Dutch carried on with this island for fine tea, porcelaine, lacquered or Japan ware, silk, cotton, drugs, coral, ivory, diamonds, pearls, and other precious stones, gold, silver, fine copper, iron, lead, and tin; and in exchange for linen, and woollen cloths, looking-glasses, and other glass ware; and the merchandize of India, Persia, and Arabia, was almost annihilated.

Before proceeding to narrate the events which arose from the arrival of the English in the East Indies, and the effects produced on the Dutch power and commerce there, by their arrival, it will be proper to take a short notice of the commerce of the Dutch to the other parts of the world. As their territories in Europe were small and extremely populous, they were in a great measure dependent on foreign nations for the means of subsistence: in exchange for these, they had few products of their manufactures to give. The sources of their wealth, therefore, as well as of the means of their existence, were derived from the exchange of their India commodities, and from their acting as the great carriers of Europe. From these two circumstances, their cities, and especially Amsterdam, became the great mart of Europe: its merchants had commercial transactions to an immense amount with all parts of the world. In consequence of the vastness and extent of their commerce, they found great payments in specie very inconvenient. Hence arose the bank of Amsterdam. It is foreign to our purpose, either to describe the nature of this bank, or to give a history of it; but its establishment, at once a proof, and the result of the immense commerce of Amsterdam, and the cause of that commerce becoming still more flourishing, and moreover, as the principal of those establishments, which have changed the character of the commerce of Europe, could not be passed over without notice. It was formed in the year 1609.

In this year, the Dutch had extended their trade to the west coast of Africa so much, that they had about 100 ships employed in the gold coast trade. About the same time, they formed a colony in North America, in that province now called New York. In 1611, having formed a truce with Spain, they resolved to venture into the Mediterranean, and endeavour to partake in the lucrative trade with the Levant: for this purpose, they sent an ambassador to Constantinople, where he concluded a favourable treaty of commerce. But by far the most extensive and lucrative commerce which the Dutch possessed in Europe, was in the Baltic: there they had gradually supplanted the Hanseatic League, and by the middle of the seventeenth century, nearly all the commodities of the countries lying on, or communicating with this sea, were supplied to the rest of Europe by the Dutch. In the year 1612, they first engaged in the whale fishery at Greenland. In 1648, taking advantage of the civil troubles in England, and having by this time acquired a powerful influence at the Russian court, they interfered with the trade of the English Russian Company at Archangel; and this new branch of trade they pushed with their national industry and perseverance, so that in 1689 they had 200 factors in this place.

In the year 1621 the Dutch formed a West India Company: their first objects were to reduce Brazil and Peru: in the latter they were utterly unsuccessful. By the year 1636 they had conquered the greater part of the coast of Brazil: they lost no time in reaping the fruits of this conquest: for in the space of thirteen years, they had sent thither 800 ships of war and commerce, which were valued at 4-1/2 millions sterling; and had in that time taken from Spain, then sovereign of Portugal, 545 ships. In the year 1640 the Portuguese shook off the Spanish yoke, and from this event may be dated the decline of the Dutch power in Brazil: in 1654 they were entirely expelled from this country.

In the year 1651, they colonized the Cape of Good Hope; and in the same year, began the obstinate and bloody maritime, war between Holland and England. This arose principally from the navigation act, which was passed in England in 1650: its object and effect was to curtail the commerce between England and Holland, which consisted principally of foreign merchandize imported into, and English merchandize exported from, England in Dutch vessels. In this war, the Dutch lost 700 merchant ships in the years 1652 and 1653. In 1654, peace was made. The object of the navigation act, at least so far as regarded the Dutch acting as the carriers of the English trade, seems to have been completely answered, for in 1674, after a great frost, when the ports were open, there sailed out of the harbour of Rotterdam above 300 sail of English, Scotch, and Irish ships at one time. The example of the English being followed by the nations of the north, the Dutch carrying trade was very much reduced. Between the years 1651 and 1672, when Holland was overrun by the French, their commerce seems to have reached the greatest extent, which it attained in the seventeenth century; and perhaps, at no subsequent period, did it flourish so much. De Witt estimates the increase of their commerce and navigation from the peace with Spain in 1648 to the year 1669, to be fully one-half. He adds, that during the war with Holland, Spain lost the greater part of her naval power: that since the peace with Spain, the Dutch had obtained most of the trade to that country, which had been previously carried on by the Easterlings and the English;--that all the coasts of Spain were chiefly navigated by Dutch shipping: that Spain had even been forced to hire Dutch ships to sail to her American possessions; and that so great was the exportation of goods from Holland to Spain, that all the merchandize brought from the Spanish West Indies, was not sufficient to make returns for them.

The same author informs us, that in the province of Holland alone, in 1669, the herring and cod fisheries employed above one thousand busses, from twenty-four to thirty lasts each; and above 170 smaller ones: that the whale fishery was increased from one to ten; that the cod and herring, when caught, were transported by the Hollanders in their own vessels throughout the world; thus obtaining, by means of the sea alone, through their own industry, above 300,000 lasts of salt fish.

As the Dutch commerce was decidedly and undoubtedly more extensive than that of all the rest of Europe, about the middle of the seventeenth century, it may be proper, before we conclude our notice of it at this time, to consider briefly the causes which cherished it into such full growth and vigour. These causes are explained in a very judicious and satisfactory manner by Sir William Temple, in his observations on the Netherlands. He remarks, that though the territory of the Dutch was very small, and though they laboured under many natural disadvantages, yet their commerce was immense; and it was generally esteemed that they had more shipping belonging to them than there did to all the rest of Europe.

They had no native commodities towards the building or equipping their ships; their flax, hemp, pitch, wood, and iron, coming all from abroad, as wool does for clothing their men, and corn for feeding them. The only productions or manufactures of their own, which they exported, were butter, cheese, and earthern wares. They have no good harbours in all their coast; even Amsterdam is difficult of approach, from the dangerous entrance of the Texel, and the shallowness of the Zuider Zee.