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The Organization of the Voc the organization of the voc The organization of the VOC F.S. Gaastra Translation by Rosemary Robson-McKillop, BA (Hons) European markets. In Asia or Indië, as the whole Sydney trading area of the Company was known at that time, the VOC managed to accumulate the capital Of all the trading companies of the seventeenth required to build up a trade network between and eighteenth centuries, the Dutch United East its various establishments. This intra-Asian trade India Company (Verenigde Oostindische Compagnie provided a rich source of income for the Company or VOC), which was created in 1602, was during the seventeenth and eighteenth centuries. indubitably the most successful. Soon after its Between about 1635 and 1690 this income was incorporation the VOC succeeded in firmly greater than the expenditure; consequently the forcing back the Portuguese, who had established Asian business of the VOC ran at a profit and their commercial empire in Asia a century earlier, the enterprise in the Dutch Republic also profited and pretty well eliminating them as competitors from this. Furthermore, after 1639 the Dutch in the trade between Europe and Asia. The Company was the only European trader with principal competitor of the VOC, the English access to Japan. During the seventeenth century East India Company (EIC), which had been this commercial connection proved extremely founded in London in 1600, initially lacked the profitable and offered the Company a chance to financial capacity, the organizational ability buy up silver cheaply. All European merchants and governmental support to offer the Dutch in Asia needed silver to buy textiles in India and Company any real threat. It was only at the end pepper in the Indonesian Archipelago. Because of the seventeenth century that the EIC developed of its ‘Japanese connection’ the VOC was able to into a potent rival worthy of its steel, which would make do with a fairly limited export of silver from cut the ground from under the feet of the VOC Europe throughout the seventeenth century. in various regions in the course of the eighteenth At the end of the seventeenth century, there century. None the less, until the end of its was an enormous expansion in trade and shipping existence as a trading company in 1800, the VOC between Europe and Asia. Textiles from India, remained the largest of the Asiatic companies.1 coffee from Arabia and later also from Java, and A number of factors which had a bearing on tea from China captured the European market. the rapid growth of the Dutch Company can be This growth in trade was a general phenomenon; singled out. To begin with, the capital affluence other European companies also profited from it available in the Dutch Republic provided the and the VOC gradually had to cede its unique VOC with a substantial head start. By means position. The monopoly on fine spices faded into of this the VOC was able to finance the costly relatively limited importance. The income from military operations which were necessary to the intra-Asia trade no longer compensated for win it the world monopoly on fine spices. The the rising expenditure which mounted, at least in conquest of the Banda Archipelago in 1622 gave part, in response to the rising administrative costs. the Company the monopoly on nutmeg and The upshot was that year after year throughout mace. It took longer to achieve the monopoly in the eighteenth century the Asian business of the cloves. By extirpating the clove trees on various VOC made a loss. Moreover, the trade with Japan islands in the Moluccas, the VOC succeeded almost dried up; after 1700 this became pretty in concentrating the cultivation of this crop in insignificant. The profits from the sale of Asian Ambon. The capture of Makassar in 1667 meant wares at home were still sufficient to cover the that the last harbour where European and Asian expense of the extensive fitting out of ships for merchants could purchase ‘contraband’ – that is Asia and to cover the annually recurring losses in to say traded outside the VOC – cloves had fallen Asia, but the financial reserves were shrinking. into the hands of the Company. The monopoly on As a result of these structural changes the VOC the trade in cinnamon was obtained by ousting the leaned increasingly on sales returns in the Dutch Portuguese from Ceylon. This took place in two Republic. in truth, the financing of the business stages: between 1637 and 1642 and from 1654 to relied on these sales returns and this put the 1658. Company in a vulnerable position: in the period The operations of the VOC were not just after the outbreak of the Fourth Anglo-Dutch War confined to the transport of Asian products to the in 1780, when no return fleets sailed home and 13 nat-arch_vrw.indd 13 31-7-2007 16:40:23 the organization of the voc no auctions of any significance could be held, in the bewindhebbers (directors) sponsored successive one fell swoop the Company found itself deprived expeditions. Each time the ships returned from of its credit and plunged deeply into debt. After Asia, the investors, who included not only the this war, the Company was immersed in problems board but also other shareholders/stockholders on such a scale it was only able to remain afloat or participanten, earned back the capital they had with Government support. The invasion of subscribed, naturally augmented by a share in the French and the collapse of the first Dutch the profit. These companies competed fiercely Republic sealed the fate of the VOC. At the with each other, which put pressure on the profit beginning of 1796, shortly after the founding of margins. The dwindling returns threatened to the Batavian Republic, the Board of Directors had frighten off investors and to endanger the future of to resign and the management was handed over the trade with Asia. to a Comité tot de zaken van de Oost-Indische handel en The directors were by no means blind to this bezittingen (Committee for Affairs relating to East development and co-operation was rapidly sought India Trade and Possessions). The VOC had at a local level. In 1600 the Amsterdam companies been nationalized. On 1 January 1800, the VOC amalgamated into one Geünieerde Amsterdamse charter, the legal foundation of the enterprise, Oostindische Compagnie (Unified Amsterdam East was revoked. Although the state of war in Europe India Company), which was granted a monopoly permitted no drastic changes in course as far as on the trade from Amsterdam to Asia by the shipping and trade to Asia were concerned, it Amsterdam burgomasters. Concerted action was spelled the end of the Company. also taken in Zeeland. But co-operation did not The total figures for the two centuries of extend beyond this. The people in Zeeland, for the Company’s operations, for trade turnover, instance, had little stomach for a fusion with shipping and personnel, are impressive. Despite companies in Holland; they were afraid that the dwindling returns, the business was on a Amsterdam would wield too much power in much larger scale in the eighteenth century than one united company. Moreover, new companies it had been in the seventeenth. For instance, in were being established in other cities – Hoorn, total the VOC fitted out some 4,700 ships, nearly Enkhuizen and Delft. Therefore it seemed as if 1,700 in the seventeenth century and a good this mutual rivalry was to continue on well into 3,000 in the eighteenth. Between 1602 and 1700, the seventeenth century. 317,000 people sailed from Europe on these ships, The eventual unification into one company while between 1700 and 1795 this total reached did not happen spontaneously; it was enforced 655,000. Trade figures confirm the growth of the by the Government. The Dutch Republic was at business after 1700. The expenditure on equipage, war with the King of Spain and Portugal. The that is to say shipbuilding and outfitting as well existing companies, now mainly referred to as the as the money and goods which were sent to Asia, voorcompagnieën (pre-companies, proto-companies), reached the sum of 370 million guilders between were unable to play any role in this conflict with 1640 and 1700, and 1,608 million guilders in the Spain and Portugal. One united Company could years 1700-1795. In these periods, the purchase be a powerful military and economic weapon in prices of the return goods shipped home from Asia the struggle. The States of Holland under the reached 205 and 667 million guilders respectively; guidance of Johan van Oldenbarneveldt and, in the sales prices of these return wares were 577 their footsteps, the States-General paved the way million guilders in the first period and fl. 1,633 in for a fusion. Eventually, after the intervention the second.2 of the stadtholder, Prince Maurits, the Zeelanders were no longer able to keep themselves aloof. On 20 March 1602 the States-General granted the The Founding of the VOC – the Charter charter by which the Generale Vereenichde Geoctroyeerde Compagnie (General United Chartered Company) The VOC was created in 1602 from a fusion was created.4 The charter (octrooi) was valid for of six small companies. Directly after the eerste twenty-one years. Rivalry was now out of the schipvaart (first fleet) of 1595-1597, which had question: the charter decreed that no body except been organized by the Compagnie van Verre the VOC could send ships from The Netherlands of Amsterdam, had demonstrated the latent to or conduct trade in the area east of the Cape of possibilities of Asian trade, companies were set up Good Hope and west of the Straits of Magellan.
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