1. The East India Companies

2. The East India Companies
Why did Europeans start organising trade to Asia in Companies?
What companies existed over time and why were they successful before going into decline?
What goods did companies trade in and how did trade evolve over time?
What role did Asia play in the trade of the Europeans?

3. Before the Companies Caravan route Portuguese Cape of Good Hope
Crown monopoly

5. What were the companies looking for?
Spices/high value small volume
Luxury goods

6. What did Companies need from Europe
Monopolies/ an assured market for their goods

7. Monopolies
Charter form their respective monarch or Parliament giving them the right to sell a certain product in their respective country, in this case being the sale of all goods from the trade from the area between the Cape of Good Hope and Cape Horn.

8. What did the Europeans need in Europe
Monopolies
Capital / an assured market for their goods

9. Limitations in Asia
Europeans never in production, always the traders in
Asian middleman, necessary to obtain goods
Deals with indigenous rulers
During the 18th century, mostly at the end we see a development of Europeans towards production, industrial revolution in Europe and the organisation of European plantations in Asia

10. European Companies Dutch East India Company (VOC)
English East India Company (EIC)
French East India Company (CIO)
Danish East India Company
Swedish East India Company
Ostende East India Company
Prussian East India Company

11. Companies
Dutch East India Company (Vereenigde Oost-Indische Compagnie, VOC)
Combining 6 different pre-companies by the state

13. Companies
Dutch East India Company (Vereenigde Oost-Indische Compagnie, VOC)
Combining 6 different pre-companies by the state
First joint-stock company with Capital, Shareholders and Stock market (Amsterdam)

15. Companies
Dutch East India Company (Vereenigde Oost-Indische Compagnie, VOC)
Combining 6 different pre-companies by the state
First joint-stock company with Capital, Shareholders and Stock market (Amsterdam)
Debts incurred during the fourth Anglo-Dutch war ( ) and the wars after 1796 meant bankruptcy as the state stepped in to take over.

17. Companies English East India Company (EIC) 1600-1858
Chartered again in 1650, then chartered with amalgamation of the Old and New EICs in 1709
Developed into modern form of joint-stock company in the last quarter of 17th century

18. Companies English East India Company (EIC) 1600-1858
Plassey (1757) meant the slow transformation from company towards government
After 1813 the EIC was only left with a monopoly on the China trade, became more focussed on the government of India

20. Companies Compagnie des Indes Orientales (1664-1761) Formed by Colbert
Went through different forms, not very stable and influenced by politics
Politically was the rival of the EIC in the 18th century, but after initial success lost out

22. Companies Dansk Østindisk Kompagni (1616-1729) First Charter 1616-1650
Second Charter
Asiatik Kompagni
First Charter
Second Charter (only monopoly on China Trade)

24. Companies Ostende Company (1715-1727)
Dissolved because of political pressure of the
English and Dutch on the Habsburg Emperor
Swedish Company ( )
First Charter ( )
Second Charter ( )
Third Charter ( )
Fourth Charter ( )

26. Profitability
The English and Dutch East India companies were the most diversified companies and were profitable and successful over a long period (both almost for 2 centuries)
The French Company was mostly a vehicle of French political designs with only modest success in Asia both in trade and in politics
The Danish, Swedish, Ostend and Prussian companies were small specialised and very profitable companies, but volatile to political pressure and change and thus had only short periods of success

27. Luxury Goods
Spices (17th century)
New products (18th century)

28. Spices (17th century)
Pepper
Nutmeg and mace
Cloves
Cinnamon

29. Pepper

31. Nutmeg and mace

32. Cloves

34. Cinnamon

36. Profits (17th century) All Companies struggling
Except the VOC, which is highly profitable
Between , annual profits of 2 million guilders – profits 18 of annual revenues- 6% annual return on invested capital

38. New products (18th Century)
Tea
Coffee
Textiles
Procelain

39. Thee

40. Porcelain

41. Coffee

42. Textiles

44. Profits (18th Century)
The Dutch East India Company is less profitable as it has to compete with the other companies for the new goods while its more financially and geographically rooted in the spice trade
The other Companies become profitable as they specialise in upcoming products, although competition is hard

45. Financing trade
Export of Silver

46. Export of Silver
Table 1 Average annual value of treasure exported by the English and the Dutch east India Companies to Asia, (in million florins rounded off to the nearest thousand; £1=f.12= Rs 8)
Years English East India Company Dutch East India Company
n/a
n/a
n/a
n/a
n/a
n/a
Source: Om Prakash, ‘Precious-metal flows in India, Early Modern Period’, in: Dennis Flynn, Arturo Giraldez and Richard von Glahn, Global Connections and Monetary History, (Aldershot 2003), 152, table 6.1.

47. Export of Silver (EIC)
Figure 1. East India Company exports of silver,
Source: H.V. Bowen, the business of Empire: The East India Company and Imperial Britain, (Cambridge 2006), 225, figure 8.1.

48. Export of Silver (VOC)

49. Financing trade
Export of Silver
Intra-Asian trade

50. Intra-Asian trade Limiting exports of silver:
Profit from intra-Asian trade
Asian products better barter than silver

52. English Private trade

53. Organising Intra-Asian trade
Monopoly
Private trade
Asian traders: Chinese to Batavia

54. Financing trade
Export of Silver
Intra-Asian trade
Money transfers

55. Money transfers

56. Financing trade Export of Silver Intra-Asian trade Money transfers
Colonisation

57. Colonisation VOC (17th Cen): conquest of the spice islands
EIC (18th Cen): conquest of India

58. Colonisation
Trading posts
Political Influence
Conquest

60. Colonial expansion
Income from taxation
Control over trade

61. The Decline of the Companies
Costs were rising, both commercial and political costs and surpassed the means of companies
The Napoleonic wars cut all European countries off from Asia and made them go bankrupt
As trade was replaced by government, a company seemed unfit to govern
Industrial revolution made most colonies suppliers of raw materials in stead of producers of luxury goods

62. Conclusions