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enterprise or commerce?
mercantilism
!
Before the invention of the
steam engine global commerce
consisted mainly in the exchange of commodities between the Temperate zone and
the Tropics.
The commodities desired were
mostly articles of
luxurious consumption - sugar,
tea, coffee,
indigo,
opium,
cotton,
silk and the
spices.
When Eliza
Lucas Pinckney and her enslaved Africans were able to cultivate new strains of
indigo near Charleston it became the second most important cash crop in the
colony (after rice) before the
American Revolution.
It comprised more than one-third of all
exports in value.
Individual countries produced sufficient food for
local consumption.
As all manufactured products were wrought by
hand each country could supply its own needs.
Trade over land is restricted by the
logistics of distance but that distance shrank when shipping goods over
water.
Commerce enriched the
countries surrounding the Mediterranean which carried on trade and
made the merchants
wealthy.
The
Phoenicians possessed a
monopoly on trade for two thousand
years.
Egypt's share of the trade traffic from
central Africa built its
great wealth.
In the age
of Solomon, the Jews possessed the Eastern end of the trade traffic for a
generation and considered it the
chief glory of Solomon's reign.
The power of the
Assyrian Empire was largely
based upon the possession of the Eastern end of this commerce.
The
conquests of the Assyrian
Empire along the Mediterranean broke up the old line of the trade by way of
the Red Sea.
620 BC To obtain possession of this commerce was
the aim of the conquests of Nebuchadnezzar of the Chaldean
Dynasty who freed the Babylonians from
Assyrian rule, conquered
Judah and Jeruselam, and
built the Hanging Gardens of
Babylon.
Nebuchadnezzar carried the
trade commerce through Babylon,
and up the Euphrates,
across Syria and
Asia Minor, and gave the
Western end of the traffic to the Lydians and the
Ionian Greeks.
The
possession of the Western end of the trade commerce awakened the
slumbering Greek culture which then
flowered.
The hostility of the Greeks to
Persia originated in the fact
Persia gave the trade commerce back to the Phoenicians, who restored the Red
Sea route.
After the
Christian Era, the
Venetians took possession of the
trade commerce and it made them the great merchant princes of the Middle
Ages.
1488 For 69 years the
Portuguese have been attempting to find a route from the Atlantic to the Indian
Ocean.
This year Bartolomeu Dias sails around the Cape Good Hope giving
the Far East trade commerce into the hands of the Portugese Navigator's
Guild who closely
guard their topographic knowledge for a century.
Then the
Dutch, the French and the English organized trading companies competing with
each other for the possession of the East India trade.
Dutch, French and
English vessels operated with a Portugese navigator.
global sea trade
1600
Royal Charter granted to "George, Earl of Cumberland, and 215
Knights, Aldermen, and Burgesses" to trade with the East Indies.
The
charter awarded the newly formed incorporation
a monopoly on trade
with all countries east of the Cape of Good Hope and west of the Straits of
Magellan for a period of fifteen years.
Anybody who traded in breach of the
charter without a corporate license
was liable to forfeiture of ships and cargo (half
to the Crown and half to the licensor), as well as
imprisonment at the "royal
pleasure". (Pirates!)
The incorporation opens a factory in Bantam on the first voyage and
imports of pepper from Java become an important
part of trade for 20 years.
Pepper as a Natural Sinus Infection Remedy
The
factory at Bantam survives until the Anglo-Dutch Treaty of 1824 when all the
British colonies in the East Indies are handed over to the Dutch in return for
recognition of British primacy over the Malay Peninsula.
The company
benefits from imperial patronage expanding its commercial trading operations
eclipsing the Portuguese Estado da Índia, which had established bases in
Goa, Chittagong, and Bombay, which
Portugal later ceded to
England as part of the dowry of Catherine de Braganza.
1602 Dutch trading amalgamates into the United
East Indies Company.
1612 United
East Indies Company introduces the first joint stock
venture.
Investment in shares may be traded on an exchange.
Wealthy merchants and aristocrats own the shares.
English
traders frequently engage in hostilities with their Dutch and Portuguese
competition in the Indian Ocean.
The British East India corporation
achieves a major victory over the Portuguese in the Battle of Swally held at
Suvali of Surat.
The Britsh East India launches multiple joint attacks
with the Dutch United East India on Portuguese and Spanish ships off the coast
of China, which secures ports in China.
The Britsh East India
corporation establishes trading posts in Surat (1619), Madras (1639), Bombay
(1668), and Calcutta
(1690).
1694 Under pressure from
ambitious tradesmen the charter is revoked.
Any English firm can now
trade with India, unless specifically prohibited.
1697
The admission of Solomon Dormido to membership in the English
Royal Exchange leads to a suspension of
the law excluding Jews.
They purchase enough seats that the
"Jews' Walk" is allotted to them.
As the law had been abrogated for
the Jews, a similar suspension as regards the
taking of the oath is adopted;
and in consequence the Exchange is soon
overrun with doubtful
characters.
"The Lord Mayor and the Aldermen have been busy this
week in receiving petitions from a great number of persons, who put in to be
Exchange brokers: they are to be 100 in number, 80 of whom are to be Englishmen
and the rest foreigners and Jews, each of whom is to carry a medal in his
pocket with his name on it, the King's effigy on one side and the city arms on
the other, and they are to show it on the making of any
bargains."
Abuses grew so rapidly that public clamor resulted in a
reorganization of the Exchange and its laws.
1698
A new "parallel" East India incorporation (officially titled the
English incorporation Trading to the East Indies) is floated under a
state-backed indemnity of £2 million.
The powerful stockholders of
the old incorporation quickly subscribe a sum of £315,000 in the new
concern, and dominate the new body.
The two companies wrestle with each
other for some time, both in England and in India, for a dominant share of the
trade.
1708 The companies merge by a tripartite indenture
involving both companies and the state.
Under this arrangement, the
merged incorporation lends the Treasury a sum of £3,200,000, in return
for exclusive privileges for the next three years, after which the situation is
to be reviewed.
Twelve 'Jew brokers' licensed to operate in the City of London on the
Jew's Walk tendered the British Treasury £3,200,000 in return for
an exclusive grant of trading privileges with all countries of the Indian and
Pacific Oceans, between Cape Horn and Cape Good Hope for the newly chartered
amalgamated joint stock incorporation - the United Company of Merchants of
England Trading to the East Indies.
{"Benjamin Levy,
who may be reckoned the father of the congregation, left behind him three
children: Menahem, Abigail, and Elias. The first-named, the son of his former
marriage, was eighteen years of age at the time of his father's death, and
inherited a comfortable fortune. As he was still a minor he could not take over
his father's place and medal as one of the twelve licensed Jew Brokers, which
passed to one Aaron Alvares. When Menahem came of age in 1707, he tried in vain
to persuade his father's kinsman and associate Moses Hart (who had been
admitted to 'Change in 1704, in succession to David de Faro) to retire in his
favor, and went so far as to assert that he had paid him £1,000 on this
understanding. The case gave rise to prolonged litigation and an enquiry
by the Court of Aldermen, with the result that Moses was exonerated. In the
following year Menahem Levy died, unmarried (October 14th, 1708). " - History
of the Great Synagogue Chapter XII THE NEW GREAT SYNAGOGUE,
1790}
1715 United Company of Merchants of England
Trading to the East Indies opens a trading station in Canton importing
opium and
tobacco into China.
The British want silk.
The Chinese will only take silver
bullion in trade for silk.
British silver reserves become
depleted.
British restore silver
reserves by only excepting silver in exchange for opium.
1756
Great Britain dispossesses France of colonial possessions in the
Seven Year War, from 1756 to 1763.
The Seven Year War, a
global conflict fought between 1756 and 1763, involves every European great
power of the time while spanning five continents.
Its effects
reverberate through Europe, the Americas, West Africa, India and the
Philippines.
The conflict splits Europe into two coalitions, led by the
Kingdom of Great Britain (including Prussia, Portugal, Hanover, and minor
German states) against the Kingdom of France (including the
Austrian-led Holy Roman
Empire, the Russian Empire, Bourbon
Spain, and Sweden).
Superior nautical skill gives British vessels so
great an advantage in naval combat that Britain gains maritime
supremacy.
Spain loses control of Florida to Great Britain, but
receives from the French the Île d'Orléans and former French
holdings west of the Mississippi River.
1757 The Battle of Plassey is a decisive
victory of the East India Company over the Nawab of Bengal.
This
effectively brings French power in India to an end, making way for British
hegemony and eventual control of the subcontinent.
1764 The Trading Company
exercises imperial sway in Bengal over a territory containing a population of
40 million yielding larger revenue streams than those of the Austrian empire -
the greatest European
power.
The Trading Company, the wealthiest corporation in the
world, rules a territorial empire.
The success of the Trading Company in
India rested on trickery, wrong,
extortion,
theft,
robbery and
murder.
With the
Mughal empire in the last stages
of decay the Trading Company constantly shifts its ground
as expediency requires,
sometimes treating the Princes of
India as independent states, and sometimes, as dependencies.
The East India Company
provides mercenaries to a
native prince, to enable him to conquer another -
selling favors on every
side.
When the opportunity comes,
the East India Company devoures treasures and territories of friends and foes
alike raping India in the
process.
This set
the stage for
corporations of the future giving them the ability to follow in the
footsteps of the greatest criminal empire the world ever saw.
History
presents no career of conquest, in which fraud, deceit and rapine were so well
used as in the conquest of India by the East India Company.
The East
India Company continued its occupation of India until the Sepoy mutiny at which
time the Company got the Crown involved.
1774 James Watt improves the design of the
Newcomen engine perfecting the
steam engine which
replaces natural power sources of wind and water.
The steam engine is
set to work on the newly invented power loom, the spinning Jenny and
the cotton gin, and in transportation.
At this time Great Britain is the only country in Europe which has
coal and
iron for steam purposes.
The power of steam opens up a new
commercial era.
Commerce and industry blossom.
1788 Constitution of the United States
of America is ratified.
The Contract Clause guarantees the
inviolability of sales and financing contracts to encouraged an inflow of
foreign capital by reducing the risk of loss to foreign merchants trading with
and investing in the former colonies.
1800
Moses Haim
Montefiore and Nathan Mayer
Rothschild enter the counting house in the City of London, and became
two of the twelve "Jew brokers" licensed by the
City of London.
Moses Haim Montefiore marries Judith Cohen daughter of Levi Barent
Cohen.
Judith's sister Henriette Cohen marries Nathan Mayer
Rothschild.
1835 "We are to teach
false history,
false astronomy,
false medicine, because
we find them in coöperation
with a false religion." -
Minute
by the Hon'ble T. B. Macaulay, 2nd February 1835 |
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