The East India Company Flashcards
how did the Scottish East India company form?
those who opposed the monopoly succeeded setting up the company
monopoly rights were sometimes questioned
when and how were the United Company of Merchants of England trading to the East Indies formed?
formed in 1709
leaders of the old trading company were able to force the union of the old and new India companies
when was the charter first given? what did it include?
Queen Elizabeth I signed the charter in 1600
gave the EIC the right to trade with the Indian sub-continent and China
what did James I and Charles II give the company?
in 1609 James I gave the company permanent rights to ship goods from the Indies to Europe
in 1670 Charles II gave the company greater independence- right to print money, create its own laws and have an army to protect its interests
what did the company’s trade consist of?
tea, silk, spices, cotton, opium and dyes
by 1720, 15% of England’s imports came from India and by 1763, the company’s annual income exceeded £1 million
what were the privileges of the company?
allowed to take bullion out of the country despite this running against the grain of mercantilism- the goods produced in Britain were not popular in on the sub-continent
administrative organisation- it had 24 directors who monitored the day to day running of the company, were in a position to make decisions quickly which was vital for a company intending to trade on a global scale
record keeping system- recorded its successes and failures to understand its markets
the historian Bowen contends that it…
‘could also be described as a loose collection of individuals who operated under a flag of convenience and exhibited very little allegiance to any higher form of authority or interest’
how were the merchants paid?
relatively low wages and were permitted to trade privately to increase their income
limited control due to distance
where were the major trading posts?
Bombay, Calcutta and Madras
what was set out to protect the bases?
stable currency, courts and militia- enusred that trade was carried out
what was built in Calcutta that shows stability?
Fort William- showed that its intentions were to stay permanently
by the mid-1700s, how many men were in Madras?
70 EIC men and 300 soldiers
how were they able to trade profitably?
needed to negotiate with local powers, European traders required permission from the Moghul Emperor to trade in their lands.
what was a firmum?
the permission granted to trade
traders needed a firmum to establish trading bases and factories
what else did the firmum grant?
it integrated the British into the social and financial systems of India, gave them additional legitimacy as they became a recognised part of the economy
factories and bases were not enough to be described as empire
