But all other causes of hostility were of comparatively small importance compared with the essential and insuperable rivalry in colonial trade. It was in these new and expanding markets that the question of European commercial supremacy must be fought out. The command of them was of absolutely vital importance in the inevitable struggle for existence between the two nations. They were chiefly in the hands of great and independent companies working under the protection of either Power. These companies were careless of international rights; zealous only to secure their own commercial monopoly, and certain of being backed up by all the resources of their own State. In England there were three of these great companies—the Turkey Company, the East India Company, and the Royal African Company. Each could rely upon powerful political support, and their ambitions were supported by the solid mass of England's commercial class. Early in the session, which began in March, 1664, the grievances from which English commerce suffered under the overweening insolence and repeated aggressions of the Dutch, were laid before Parliament. Heavy losses were alleged to have been suffered, and the dangers of the total decay of the trade were forcibly foretold. Parliament was not slow to take the alarm. Both Houses concurred in the resolution—
"That the wrongs, dishonours, and indignities done to his Majesty by the subjects of the United Provinces, by invading of his rights in India, Africa, and elsewhere, and the damages, affronts, and injuries done by them to our merchants, are the greatest obstruction of our foreign trade;"
and they prayed that speedy and effectual means should be taken for obtaining redress, and for preventing such injuries in future. It was clear that the national temper had been thoroughly aroused, and would insist on asserting itself. Clarendon's influence is seen in the moderation of Charles's reply. He approved their zeal and promised inquiry, but went no further than to undertake that his Minister should demand reparation, and take steps for the prevention of such wrongs in future.
The bellicose attitude of Parliament had given much alarm to the Dutch.
"The resolution of the two Houses of Parliament," writes Downing to Clarendon, [Footnote: Letter of April 29th, 1664.] "is altogether beyond their expectation, and puts them to their wits' end." "Believe me," he goes on, "at the bottom of their hearts, they are sensible of the weight of a war with his Majesty."
The moderation of the King's reply served to allay the Dutchmen's fears of the imminence of war; but De Witt found it prudent to promise that he would do his utmost to meet the English demands. He expressed to Downing "with great appearing joy," his satisfaction with the King's reply; and said that "since his Majesty had so tenderly declared himself, he would upon that account condescend so much the more to give him satisfaction." Downing doubtless thought that the demand went unduly far in the direction of moderation. But if he had any fears that pacific motives would prevail, he was soon to be undeceived. For the moment war seemed to be averted. Louis XIV.—however he might wish to see the naval Powers exhaust themselves by mutual injuries—had no wish to see the outbreak of a war in which the Treaty rights of the Dutch warranted them in calling for his assistance, and he offered himself as a mediator. But both the disputants were drifting rapidly to the arbitrament of arms.
Downing had a powerful ally for his own warlike inclinations in the Duke of York. James was restless when deprived of opportunity of adding to his influence, and satisfying his chief ambition, by engaging in some warlike operation. He had already acquired some reputation, not without warrant, as a capable naval commander, and as a man of personal courage. He had little opportunity of political action in England, and a war with the Dutch not only promised vengeance for old grudges against the nation, but offered a good chance of winning new renown. He had other less creditable motives. He had taken an active part in the management of some of the great trading companies, and was deeply interested in various colonial enterprises. In March, 1664, James obtained a grant of Long Island on the American coast—a territory nominally belonging to the English, but now, in default of their colonizing it, occupied by the Dutch, who had built a town called New Amsterdam. With the help of two ships of war, lent him by the Crown, the Duke organized an expedition to seize the island. The scanty Dutch colony could offer no effective resistance. Their town was ceded to the emissaries of the Duke, who changed its name to one destined to hold a large space in the history of the world. New Amsterdam became New York, as the result of a buccaneering raid, carried out by some three hundred men, hired by the Duke of York to prosecute a private proprietorial claim.
The Duke was also Governor of the African Trading Company, and this again brought him into even more serious conflict with the Dutch. That company had established its operations upon the Guinea coast before the Civil War, and had carried on a successful trade, which had been grievously interrupted by the troubles at home. The Dutch had, meanwhile, established a rival factory, and prosecuted their trade with such success as seriously to cripple that of England. After the Restoration, the company was re- organized, and the Duke being persuaded to become Governor, a Royal Charter was easily obtained. Those who knew the region were convinced of its promise; and high profits were confidently expected by bartering English goods against the gold and the slaves, of which the supply was so rich. The gold was brought in sufficient quantities to give the name of "Guineas" to a new designation in the English coinage; and the slaves were easily disposed of at a high price to other plantations in various parts of the globe. The only inconvenience arose from the hindrance which the Dutch could offer to English trade, by means of their own superior trade organization, and the more suitable situation of their factory.
Once more the difficulty in the way of the Duke and his Company was settled by an armed raid. Exactly as in the case of New York, he "borrowed" two ships of war from the King, and sent an expedition under the command of Sir Robert Holmes, which, by a flagrant violation of every international right, seized the Dutch fort. The balance of wrong was thus roughly reversed. By an act of unwarrantable violence the Duke of York had fixed upon his own nation the burden of maintaining what amounted to piratical aggression; and he had done it—as Clarendon is obliged to allow—"without any authority, and without a shadow of justice," [Footnote: Letter to Downing, October 28th, 1664.]—solely in satisfaction of his own private rights as a company promoter. Clarendon's diplomacy was, of a truth, conducted under untoward circumstances! Between the filibustering of his royal son-in-law, and the deliberate exasperation of his accredited representative at the Hague, peace had become well-nigh hopeless. Under such conditions negotiations became tangled beyond the possibility of repair. De Witt recognized that no reparation for the wrong done at Cape Verde would be secured except by armed force. But in carrying out this purpose he still endeavoured to avoid any declaration of war. De Ruyter and the English Admiral Lawson were now cruising in the Mediterranean, on a joint expedition, for suppression of piracy, and for releasing the captives of Tunis and Algiers. De Ruyter secretly separated himself from his English ally, sailed for Cape Verde, and there took vengeance for the English aggression on the trading operations of the Dutch. It was an open breach of the stipulation of the Treaty, which required that reparation for colonial wrongs should be sought by peaceable arbitration. Clarendon had recognized fully that such reparation was due, and had instructed Downing to offer it. The elusive tactics of De Witt, and the armed intervention of De Ruyter, frustrated Clarendon's efforts for a peaceful settlement.
Already Clarendon's pronounced inclination for peace had earned for him the ill-will which the Duke of York's habitual sulkiness of temper was so apt to indulge. The King had given their due weight to the arguments of the Chancellor, and felt the danger which war would involve at once to his own authority at home, and to the position of England in Europe. This he had impressed upon his brother; and James rightly ascribed the King's backwardness to Clarendon, and found a convenient medium of remonstrance in his wife, whom he instructed to explain to her father the Duke's annoyance at finding him his chief opponent "in an affair upon which he knew his heart was so much set." [Footnote: Life, ii. 240.] It was characteristic of James that he should deal with a matter of vital interest to the kingdom, as if it was the fitting subject of petty personal pique. Anne undertook the duty, and begged her father no longer to oppose the Duke. Clarendon told her that she "did not enough understand the importance of that affair;" but he would speak to the Duke about it. At their interview, James renewed his tone of personal annoyance, urged the expediency of the war, and above all complained that, as "he was engaged to pursue it," Clarendon should allow the world to see "how little credit he had with him."