Booklet 2 - 1603-1714 Flashcards
1
Q
The East Indies
A
- When English merchants moved out of Europe, Spice Islands became their objective
- Spices were so attractive because transport costs were high, spices had a high value relative to their weight, they could not be produced in Europe and were used to mask the taste of preserved meat
- These spices could them be re-exported to the rest for Europe at a high price
- Importing a new commodity was too risky for an individual, so granting a monopoly was the easiest way for a monarch to encourage a trade or industry and was also a way to reward courtiers who did not get salaries
- This was seen as abuse of power and monopolies to individuals were prohibited in 1624, however corporations could still receive them and they continued to be the basis for British trade outside of Europe in the 17th century
2
Q
The East India Company
A
- East India Company formed 1600 from members of the Levantine Company
- Dutch launched their EIC two years later with £500,000 in capital, when English company tried to trade with the Spice Islands, the Dutch opposed it fiercely
- EIC base in Amboyna was overrun by the Dutch and ten employees were massacred
- 1605, began trading at Surat (India), which was convenient for trade with Persia and for diplomatic contact with the Moghul capital at Agra
- Company built up a substantial trade in pepper, which was not as valuable as nutmeg and cloves from the spice islands, but still commanded a good price in Europe
- Traded in silver bullion, Company showed that northern Europe was paying 4-5 times as much silver bullion for the exported pepper
- Moghul Empire (covered 2/3 of India at the time), and EIC remained on good terms, in return for protection of their factories in Agra, the EIC armed its ships heavily to displace the Portuguese, who had control of the Indian Ocean
- 1630, trade slumped due to a famine in Gujarat and Charles I allowed the Courteen family trading rights in India
- Company’s most important bases at Surat (est 1611) and Madras (1642) kept going even when EIC stock sunk to 60% of its original price, which allowed continuity with India
- During this time however, India was not at the centre of English trade, trading posts were being closed down and people began to lose interest, America appeared to be the place for enterprise
