5.2 A glorious golden age

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5. As rich as a king

5.2 A glorious Golden Age

Age of explorers and reformers (1500-1600)

Age of Regents and Monarchs (1600-1700)

Typical Aspects

• Worldwide business contacts, capitalism and the start of a world economy
  
• The place of the Dutch Republic in political sense and the economic and cultural development it experienced
  
• The aspiration of monarchs to gain absolute power
  
• The scientific revolution

Learning goals

You can explain why Amsterdam became the centre of trade in the 16th and 17th centuries.

How does the Republic become rich? (1)

• 1568-1648: 80 years war (Dutch Revolt)

• In principle, war is bad for trade, but the war was mainly fought in the Southern Netherlands (current Belgium)

• The port of Antwerp was closed: trading ships diverted to Amsterdam

How does the Republic become rich (2)

• The Netherlands does not have a lot of products/raw materials

• They have a lot of dairy products

• Solution: Staple City

• Amsterdam will become one large marketplace for European manufacturers

Products are stored in the warehouses and are sold when there is a shortage. This way the merchants can sell the products for a higher price.

Stapelmarkt

A ship sailing from Amsterdam to the countries around the Baltic Sea is loaded with:

1. Cheese, textiles and fish
2. Wine and oil
3. Spices
4. Grain and wood

A ship sailing from the countries surrounding the Baltic Sea to Amsterdam is loaded with:

1. Cheese, textiles and fish
2. Wine and oil
3. spices
4. Grain and wood

1609: Exchange bank

In this bank foreign currency can be exchanged for florin.

Rich!

• Due to the Exchange Bank and the Staple City, Amsterdam flourishes.
• People come to earn money. Where?         Stock Exchange 
•  At the stock exchange market people can invest in companies
• The city becomes wealthier an grows!

A place where tradesman come together to trade

Explain what Staple City means

How did Amsterdam become the Centre of Trade in the 16th and 17th century?

Homework!

Make 5.2 exercise 1, 2 and 3

5. As rich as a king

5.2.2 The Dutch East India Company

Age of explorers and reformers (1500-1600)

Age of Regents and Monarchs (1600-1700)

Typical Aspects

• Worldwide business contacts, capitalism and the start of a world economy
  
• The place of the Dutch Republic in political sense and the economic and cultural development it experienced
  
• The aspiration of monarchs to gain absolute power
  
• The scientific revolution

Learning goals

You can explain what made the Dutch East India Company and the Dutch West India Company part of the world economy.

You can explain what the relationship is between slave trade and slave labour on a plantation.

What do you know
about the VOC?

What do you know
about the WIC?

Spices

• Long route and lots of middlemen:  peperduur.

De verschillende handelsroutes vanuit Azië

Europese landen willen zelf winst maken

• The Portuguese discover the route to Asia

• The Portuguese keep this Carreira da India strictly secret

The Dutch want this as well!

• Spionage!

• Jan Huygen van Linschoten travels along and describes the journey in his Itinerario

The Itinerario, orVoyage ofte schipvaert, naer Oost ofte Portugaels Indien (...etc etc.), was more than just a map.

It contained many drawings of strange coasts, animals, people and their rituals. The Dutch were amazed.

First Dutch people in Asia

• Cornelis de Houtman was the first Dutchman to arrive in the East Indies in 1596

• The Dutch have a route to Cape the Good Hope!

New problem!

• More and more Dutch companies (companies) are sailing to the Indies.

• This creates a lot of competition between Dutch people

• As a result, the price of spices drops rapidly, and so does the profit

Dutch East India Company (1602)

• The Dutch government (States General) intervenes

• Companies must merge into one company

• This prevents competition and the profits can also be used in the war against Spain

They receive full monopoly over the trade in Asian waters. They also receive the authority to wage war and sign treaties in name of the Republic.

Monopoly: Market situation where there is only one supplier of a certain product

Jan Pieterszoon Coen

Privateering and slave trade

• A company like the VOC was needed for trade with Western countries as well.
  
  
• 1621: Dutch West-India Company
  
  
• monopoly on trade with North and South America.
  
  
• Privateering was also allowed > hijacking Spanish and Portuguese ships > capturing the Silver Fleet.

In what year was the VOC founded?

1. 1601
2. 1602
3. 1701
4. 1702

In what year was the WIC founded?

1. 1601
2. 1602
3. 1621
4. 1721