The Dutch had long maintained a decisive superiority, as well on the continent of Asia, as among the Indian islands, until the active exertions of their competitors in trade succeeded in undermining and overturning their monopoly; and as it was natural their weak side should suffer first, it was on the continent, where their establishments were far removed from the chief seat of government, and where they had not been able to insure to themselves those exclusive privileges from the princes of the country which they had exacted from the weaker princes of the Eastern Islands, that other nations, chiefly the French and English, first endeavoured to introduce themselves.
After reciprocal jealousies had for some time prevented both nations from making any considerable progress, a successful war at last turned the scale entirely in favour of the English, whose influence, from that period, has been paramount in continental India, and the Dutch East India Company was no longer able to enforce its system of exclusive trade there.
Without inquiring into the practicability of realizing the flattering estimate made out by the Indian Commissioners, or the policy which dictated a still more rigorous monopoly of the produce of the Eastern Islands, it ought to be remarked, although it seems never to have been adverted to by the Commissioners, whose calculations and plans were exclusively of a commercial nature, that the original situation of the Company as a mere mercantile body, looking out for trade and not dominion, had undergone a material alteration, by the acquisition it had made from the middle of the last century of considerable territorial possessions, especially on the island of Java.
To use the words of one of the most enlightened men who now adorns his country, and is prepared to give energy to a better state of things[8], "these territorial acquisitions became to the Company a source of new relations. In consequence of them, new rights were acquired and obligations of a novel kind were contracted, as well with regard to the territories themselves as the population upon them. The nature of these rights and duties might have been deemed worth inquiry; and as all these territorial acquisitions were made by a delegated authority derived from the government at home, it was further worthy of investigation how far the government itself was entitled to a direct share in the acquisitions made, and how far it was bound to controul and superintend the exercise of those duties which were newly contracted. A consideration of these points would have led to the important question, how far, on a renewal of the Company's charter, it would be requisite to alter and modify its conditions according to existing circumstances, and especially how far it would have been expedient, in future, to leave the Company the exclusive trade, and at the same time the uncontrolled sovereignty over the same country."
But however natural it may be, at the present moment, to consider questions of this kind, it was perhaps at that time beyond the common course of human thought to entertain doubts on the subject. From an honourable regard for ancient institutions, the mercantile system of the Company was still considered with reverence and respect; it had been at all times the boast and pride of the nation; the services which the Company had rendered to the state in its earlier days, and the immense benefits which the government had been enabled, by its means, to spread among the community at large, had rendered the East India Company and all its privileges, objects of peculiar care and tenderness. The rights of sovereignty which the Company afterwards acquired, were obtained by degrees and almost imperceptibly. Every acquisition of the kind had been considered, at the time, merely as the means of increasing its mercantile profits, and all its territorial rights were looked upon as subservient to its mercantile system.
In consequence of these ideas, after the whole of the northern and eastern coast of Java had been added to the Company's territorial dominions, by a cession in the year 1749, no step seems to have been taken for improving these acquisitions, by any direct use of the supremacy obtained. Some contracts were instituted with the native chiefs, for delivering gratis, or at the lowest possible price, such articles as would serve the Company's investments at home; but taxation, the levy of produce, and the management of police and justice in the inferior courts, were left to the care and conscience of the natives themselves.
Arguments in favour of this system may perhaps be drawn from the respect due to the native usages and institutions, and from a supposed want of power, on the part of the Company, to assume any direct controul over the native population. But whatever influence these ideas may have had on the conduct of the Company, it may be affirmed that an European government, aiming only to see right and justice administered to every class of the population, might and ought to have maintained all the native usages and institutions, not inconsistent with those principles; and that the power, for want of which it withheld its interference, would have been supplied and confirmed by the act of exercising the power which it possessed, and by the resources it might have been the means of drawing from the country.
Considering, therefore, the propensity inherent in every native authority to abuse its influence, and to render it oppressive to the population at large; the ascendancy of Europeans in general, even over the class of native chieftains; the scantiness of many of the establishments proposed in the plan of the Indian Commissioners; the manifest inadequacy of the remuneration of the civil servants which it recommended, and the narrow scale on which all expenses were calculated; no very durable benefits could have been reasonably expected from it. The discretionary power being left in the hands of the native chieftains, the whole of the lower class of the population would have remained at their disposal; the ascendancy of the European servants would have subjected both to peculations, which the insufficiency of their salaries would constantly have tempted them to practice; the administration of justice not meeting with a proper remuneration would have been ineffectual, perhaps corrupt; the reduction of the military establishment would have left the possessions an easy prey to the first invader; and the original sources of the Company's revenues in India remaining the same, it seems probable, that in a short time, the same scenes which had hitherto met with so much reprobation, would have been acted over again, and to a still more disgraceful extent.
But of whatever merit might have been the plans suggested by the Commissioners in India on the 4th July, 1795, the calamities which had already befallen the mother country were followed by an event, which it seems the Commissioners had hardly dared to suspect, and which, in every case, would have frustrated all their designs. This was the dissolution of the Company, in consequence of a resolution taken to that effect on the 24th December, by the body then representing the government of the United States of Holland.
New views of policy were of course suggested by this important change. In the year 1800 there appeared a small volume, entitled "A Description of Java and of its principal Productions, shewing the Advantages to be derived therefrom under a better Administration, by Mr. Dirk Van Hogendorp," in which the writer, after observing that the true state of Java and its importance to the mother country had hitherto been little known, or at least that no correct ideas had yet been formed in Holland with regard to its value, fertility, population, and advantageous situation for trade, establishes,