CHAP. II. 1613. coast of India their endeavours were frustrated by the in- BOOK I. fluence of the Portuguese. A fleet which sailed in 1611 had better success. Attacked at Swally, a place at no great distance from Surat, by a large Portuguese armament, it made a successful defence; and, notwithstanding the intrigues and efforts of the Portuguese, obtained a favourable reception at Surat. The English now succeeded in forming a commercial arrangement. They obtained permission to establish factories at Surat, Ahmedabad, Cambaya, and Goga, which were pointed out, by the agents of the Company, as the best situations; and agreeing to pay a duty of 3 per cent., received assurance, that this should be the only exaction to which their merchandise should be subject; that protection should be afforded to their factories; and that their property, even in the case of the death of their agents, should be secured till the arrival of another fleet. A firmaun or decree of the Emperor, conferring these privileges, was received on the 11th of January, 1613; and authorised the first establishment of the English on the continent of India, at that time the seat of one of the most extensive and splendid monarchies on the surface of the globe.2 CHAPTER II. From the Change of the Company into a Joint-Stock Com- HT 1 The action, or rather series of actions, with the Portuguese, was fought BOOK I. of a certain number of individuals, who contributed to it as CHAP. II. they pleased, and managed it for their own account, subject only to the general regulations of the Company. 1613.16. Whether this was more adapted or not, to the nature of commerce, and the interests of the nation, it was less favourable to the power and consequence of a Governor and Directors, than trading on a joint-stock, which threw into their hands the entire management and power of the whole concern. Accordingly, they exerted themselves to decry the former method, and, in 1612, were enabled to come to a resolution, that in future, the trade should be carried on by a joint-stock only.1 It still appears to have been out of their power to establish a general fund, fixed in amount, and divided into regular shares; the capital was still raised by a sort of arbitrary subscription, some individuals, whose names stood as members of the Company, advancing nothing, others largely. They now, however, subscribed, not each for a particular adventure, with an association of his own choosing, but all into the hands of the Governor and Directors, who were to employ the aggregate as one fund or capital for the benefit of those by whom it was advanced. On these terms 429,000l. was raised, which the Directors thought proper to divide for the purpose of four separate adventures or voyages, to be undertaken in as many successive years. The voyages were regulated, and composed as follows: The purchase, repair, and equipment of the vessels amounted to 272,5447., being the remainder of the stock. The profit of these voyages was far from setting the management of a court of Directors, as compared with that of individuals taking charge of their own affairs, in a favourable light. The average of the profits on the eight voyages which preceded, leaving out of the account the small adventure of what is called the Company's fourth 1 Bruce, i. 165. voyage, wholly unfortunate, was 171 per cent. The average of the profit on the four voyages in question, was only 87 per cent.1 As the power of the Portuguese in the East carried the usual consequences of power along with it, among other things, an overbearing and insolent spirit, they had already embroiled themselves with the Mogul government: an event favourable to the English, who were thus joined with that government in a common cause. At the same time the splendid achievements of the English, against an enemy whom the governments of India were ill able to resist, raised high their reputation for prowess in war. A Portuguese fleet burned the towns of Baroach and Goga: and a powerful armament arrived at Swally with the Portuguese Viceroy, in January, 1614; which attacked the English; but was defeated, with a loss of 350 men. To improve these favourable circumstances, an agent of the Company repaired to the Mogul court, where he was well received, and obtained a royal firmaun for a general and perpetual trade; and in the same year took place the celebrated royal embassy of Sir Thomas Roe. The character of an ambassador, and the respect attached to it by the discernment of more enlightened nations, were but little understood at the court of the Mogul. On that occasion the choice of the English Ambassador was happy: Sir Thomas was a man of discernment, and temper, and made the most of the circumstances in which he was placed; though he soon discovered that it was bad policy by which he had been sent. He obtained redress of some of the grievances of which the English merchants complained; and concluded, though with difficulty, a sort of treaty, in which liberty was promised them of trading and establishing factories in any part of the Mogul dominions; Surat, Bengal, and Sindy being particularly named.2 Besides his other services, Sir Thomas bestowed advice upon the Company. "At my first arrival," says he, "I understood a fort was very necessary; but experience teaches me we are refused it to our own advantage. If the Emperor would offer me ten, I would not accept of one." 1 Bruce, i. 166. 2 Bruce, i. 171, etc. Sir Thomas Roe's Journal and Letters. Churchill, i. 770-809. BOOK I. CHAP. II. 1613-16. BOOK I. He then states his reasons: first, he adduces evidence that CHAP. II. it would be of no service to their trade: "secondly, the charge," he says, "is greater than the trade can bear; for 1613-16. to maintain a garrison will eat out your profit; a war and traffic are incompatible. By my consent you shall never engage yourselves but at sea, where you are like to gain as often as to lose. The Portugueses, notwithstanding their many rich residences, are beggared by keeping of soldiers; and yet their garrisons are but mean. They never made advantage of the Indies since they defended them: observe this well. It has also been the error of the Dutch, who seek plantations here by the sword. They turn a wonderful stock; they prole in all places; they possess some of the best yet their dead pays consume all the gain. Let this be received as a rule, that if you will profit, seek it at sea, and in quiet trade; for, without controversies, it is an error to affect garrisons and land wars in India. "It is not a number of ports, residences, and factories that will profit you. They will increase charge, but not recompense it. The conveniency of one, with respect to your sails, and to the commodity of investments, and the well employing of your servants, is all you need." Sir Thomas had lived to the present day, he might have urged the trade with China as proof, by experiment, of the proposition he advanced. If "The settling your traffic here will not need so much help at court as you suppose. A little countenance and the discretion of your factors will, with easy charge, return you most profit; but you must alter your stock. Let not your servants deceive you; cloth, lead, teeth, quicksilver, are dead commodities, and will never drive this trade; you must succour it by change. "An ambassador lives not in fit honour here. A meaner agent would, among these proud Moors, better effect your business. My quality, often, for ceremonies, either begets you enemies, or suffers unworthily. Half my charge shall corrupt all this court to be your slaves. The best way to do your business in it is to find some Mogul, that you may entertain for 1000 rupees a year, as your solicitor at court. He must be authorised by the king, and then he will serve you better than ten ambassadors. Under him you must allow 500 rupees for another at your port, to follow the Governor and customers, and to advertise his chief at court. These two will effect all; for your other smaller residencies are not subject to much inconveniency." The permission to the Company's servants to trade privately on their own account, which afterwards produced so many inconveniences, was, it seems, even at this early period, a source of abuse. "Concerning this, it is my opinion," says Sir Thomas, "that you absolutely prohibit it, and execute forfeitures, for your business will be the better done. All your loss is not in the goods brought home; I see here the inconveniences you think not of: I know this is harsh to all men, and seems hard. Men profess they come not for bare wages. But you will take away this plea, if you give great wages to their content; and then you know what you part from: but then you must make good choice of your servants, and use fewer." Sir Thomas tells the Company that he was very industrious to injure the Dutch. "The Dutch," he says, "are arrived at Surat from the Red Sea, with some money and southern commodities. I have done my best to disgrace them; but could not turn them out without further danger. Your comfort is, here are goods enough for both." If so, why seek to turn them out? One of the objects at which the adventurers from England most eagerly aspired, was a share in the traffic of the Spice Islands. The spices, from their novelty, were at that time a favourite object of consumption to those, the supply of whose wants is so naturally but thoughtlessly regarded by the dealer as peculiarly profitable, the rich and the great and the commerce, brilliant as compared with that of other nations, which the enterprise and diligence of the Dutch now carried on with the East, almost entirely consisted of those commodities. The English, by their connexion with Sumatra and Java, had their full share in the article of pepper; but were excluded from cinnamon, cloves, nutmegs, and all the finer spices. Agents were now 1 Churchill, i. 106-108. He gives another account of his endeavours to injure the Dutch, in the following words: "The 10th, 11th, and 12th, I spent in giving the prince advice that a Dutch ship lay before Surat, and would not declare upon what design it came, till a fleet arrived; which was expected with the first fit season. This I improved to fill their heads with jealousies of the designs of the Dutch, and the dangers that might arise from them; which was well taken: and, being demanded, I gave my advice to prevent coming to a rupture with them, and yet exclude them the trade of India."-Ibid. 774. BOOK I. CHAP. II. 1613-16. |