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The East India Company: Introduction
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Which nickname did the British East India company get?
In 1497, the Portuguese explorer, Vasco Da Gama finds the way around the Cape of Good Hope to Asia. Europeans no longer need to take the route across The Mediterranean and past the Arabian peninsula. Thanks to Da Gama, Portugal dominates the trade with Asia. But now, at the end of the 16th century, The Netherlands as well as England want a bigger piece of the cake. So they both start companies to trade with East India.
But what does East India mean? The eastern part of India? No. East India in these days means everything east of Africa all the way to China. The Dutch East India Company is founded in 1602.
The Netherlands - that is, the Dutch send their first expedition here in 1595. The Portuguese have already been here for four years. But the Netherlands sends many more ships; and now in the 17th century their merchant fleet becomes the biggest in the world. The goods they bring home with them are spices, porcelain and fabrics: cotton and silk in amazing patterns. In Europe everyone is used to wearing heavy, rough woolen clothes, so these lighter, colourful materials become popular.
It's not easy trading in East India. Even though a good profit can be made selling the goods that are bought here back home in Europe, it's difficult to sell European goods in East India. So to be able to trade at all, you need to carry with you a cargo full of gold and coins. Not only is this heavy, it's dangerous too -- there are many pirates on the ocean. But the Dutch East India Company creates new local markets here in Asia.
In this way the company gets money and doesn't need to rely on coins from home. Now let's go back to the very first of the Dutch expeditions. This is the Spice Islands, The Moluccas. As the name says these islands are known for their spices. Especially nutmeg and cloves.
The Spanish and Portuguese merchants had been warring over these Islands; but now the Dutch quickly take over here. And this annoys the English. To be able to compete for the Spice Islands, a hundred merchants in London join with a group of nobles to form a trading company. In the year 1600 they are given monopoly on all British trade with East India from the Queen. The company's complete name is The Honourable East India Company.
But soon it gets the nickname: The John Company. Why is it called that? No one knows but it may have to do with the word: Honourable. 'Honourable' is a title that means that something is righteous, and it's shortened to "Hon". So... "Hon" became... John.
The Dutch East India Company is powerful; so the Brits need to give up on the spice islands. Instead they establish here. In India. The British East India Company does so well that King Charles I wants to become a partner in the company. But no!
They don't want him to. So he tries to start a company of his own. But civil war breaks out in Britain. The king is imprisoned and executed. His company is closed down.
This is Oliver Cromwell. The man who leads the uprising against the king. After the Civil War he assumes power and for the first time in a long time there's no king or queen on the throne. The monarchy is abolished! But...
That doesn't last very long. Richard Cromwell succeeds his father. But the army doesn't like him - there is chaos! One general attempts a coup and appoints himself the leader. To end this time of unrest Parliament decides that it's time to bring back the monarchy.
Charles II becomes king. In the disorder, The Honourable East India Company seizes its chance: securing permission to increase its control in India - to mint its own money and to have its own army. The British company's power increases while the Dutch company's decreases. This is the beginning of The British East India Company's journey to political power in the greater part of India.