BOOK I.

CHAP. 1.

where the Captain, delivering his letters and presents, and meeting with a favourable reception, left some agents, the first rudiments of the Company's 1603-13. factories; and returned to England, where he arrived, in September, 1603, with a handsome profit to his owners on the capital of the voyage.'

In the course of ten years from 1603 to 1613, eight other voyages were fitted out, on similar terms. The first, in 1603, under the command of Captain Middleton, consisted of the ships which had but just returned from the preceding voyage; and the capital subscribed was 60,450l.; of which, 48,1481. was laid out in the preparation and provision of the ships; 11,1607. in bullion, and 1,1427. in goods. The second, in 1606, consisted of three ships commanded by Captain Keeling, with a capital of 53,500l.; of which 28,6207. was for the equipment of the fleet, 17,600l. was in bullion, and 7,2807. in goods. The third, in 1607, consisted of two ships, 33,000l. capital; 14,6007. of which was for the ships, 15,000l. in bullion, and 3,4007. in goods. The fourth voyage, in 1608, had but one ship; 13,7007. subscription; expense of equipment, 6,000l.; bullion, 6,000l.; goods, 1,700. The fifth, in 1609, had three ships, larger than in any former voyage; capital subscribed, 82,000l.; cost of shipping, 32,000.; the investment, 28,500l. bullion, and 21,500l. goods. The sixth voyage, in 1610, had four ships; and subscription, 71,5817.; divided into 42,300l. for shipping, 19,2001. bullion, 10,0817. goods. The seventh, in 1611, of four vessels, had

' Harris, i. 875. Anderson, ut supra, ii. 217, 218. Bruce's Annals, i. 151, 152.

CHAP. I.

BOOK I. 76,3751. subscription, expended 48,7001. on the fleet, had 17,6751. in bullion, and 10,000l. in goods. 1603-13. The eighth, in 1612, had one ship, and subscription, 7,2007.; divided into 5,300l. for the vessel, 1,2501. bullion, and 6501. in goods. All these voyages, with one exception, that in 1607, of which both the vessels were lost, were prosperous: the clear profits, hardly ever below 100 per cent., being in general more than 200 on the capital of the voyage.1

years

The in which these voyages were performed were not without other incidents of considerable importance. In 1604, the Company were alarmed by a license in violation of their charter, granted to Sir Edward Michelborne and others, to trade to "Cathaia, China, Japan, Corea, and Cambaya, &c." This injury was compensated in 1609, when the facility and indiscretion of King James encouraged the Company to aim at a removal of those restrictions which the more cautious policy of Elizabeth had imposed. They obtained a renewal of their charter, confirming all their preceding privileges, and constituting them a body corporate, not for fifteen years, or any other limited time, but for ever; still, however, providing that, on experience of injury to the nation, their exclusive privileges should, after three years' notice, cease and expire.

The earliest of the Company's voyages were exclusively directed to the islands in the Indian Ocean, as Sumatra, Java, and Amboyna, the returns being raw silk, fine calicoes, indigo, cloves, and mace. In 1608, the factors at Bantam and in the Moluccas

Bruce's Annals, i. 152–163.

CHAP. 1.

reported that the cloths and calicoes imported from BOOK I. the continent of India were in great request in the islands; and recommended the opening of a trade at 1603-13. Surat and Cambaya, to supply them with those commodities, which might be exchanged, with extraordinary profit, for the spices and other productions of the islands. To profit by these advantages, the fleet which sailed under the orders of Sir Henry Middleton, in 1609, was directed to steer for the western coast of the Asiatic continent, where they made several attempts to establish a commercial intercourse. At Aden and Mocha they were opposed by the Turks; who surprised one of the ships, and made the Captain and seventy men prisoners. On the coast of India their endeavours were frustrated by the influence 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

The action, or rather series of actions, with the Portuguese, was fought between the twenty-second of October and the twenty-seventh of November, 1612. The English force consisted of two vessels, the Dragon and Osiander; the former a large, the latter a small vessel: the Dragon was commanded by Captain Best. The Portuguese squadron consisted of four galleons, of which the largest carried thirty-eight guns, and a number of small vessels, without cannon, but intended to assist in boarding. In the several encounters which took place, the Portuguese were defeated, with considerable loss of men, and injury to the vessels, and ultimately left Captain Best to remain unmolested at Swally, and renew the intercourse with the factory at Surat. The event of the fight raised the reputation of the English in the opinion of the natives, and contributed to accelerate the delivery of the confirmation of the articles of a treaty previously adjusted between Captain Best and the governor of Ahmedabad. The confirmation was presented in form, in December, 1612, but a more solemn confirmation of it, in the shape of an imperial firmaun, does not seem to have been received till January, 1613. Orme's Fragments, 332.--W.

СНАР. 2.

BOOK I. efforts of the Portuguese, obtained a favourable reception at Surat. The English now succeeded in 1613. 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.'

CHAPTER II.

From the Change of the Company into a JointStock Company, in 1612, till the Formation of the third Joint-Stock in 1631-2.

HITHERTO the voyages of the East India traders had been conducted on the terms rather of a regulated than a joint-stock company; each adventure being the property of a certain number of individuals, who contributed to it as they pleased, and managed it for

Bruce's Annals, i. 164.

BOOK I.

CHAP. 2.

their own account, subject only to the general regulations of the Company. Whether this was more adapted or not, to the nature of commerce, and the 1613-16. 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.

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: