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Defining Documents in World History: The 17th Century (1601-1700)

Charter of the Dutch West India Company

Date: June 3, 1621

Authors: Lords of the States-General

Genre: Charter

Summary Overview

The Charter of the Dutch West India Company, issued by the States-General of the Dutch Republic in 1621, was modeled after the charter that created the Dutch East India Company in 1602. The document created a trading monopoly that would contribute to the mercantile power of the republic by waging economic warfare against Spain, under whose domination the Low Countries had long lived, and of Portugal. To this end, the charter authorized the company to encroach on Spanish and Portuguese colonies in the West Indies (the island groups in the Caribbean), in South America, and along the west coast of Africa. The charter not only granted monopoly trading rights to the company in the Americas, Africa, and the Atlantic but also promised military and financial support from the States-General.

The company had significant success against the Portuguese in Brazil in the 1630s and 1640s, particularly after Dutch seaman Piet Heyn captured a Spanish treasure fleet laden with gold off the coast of Cuba in 1628. In the decades that followed, the company was stretched too thin, and with its resources depleted and erosion of its competitive edge, it was dissolved in 1794.

Defining Moment

The early decades of the seventeenth century represented a high point in Dutch history and culture. The Low Countries had long been under the domination of the Spanish, but with the formation of the Dutch Republic in 1581, the Dutch developed a swagger based on their wealth, their commercial prowess, their shipping, and the agile diplomacy. The Dutch also enjoyed a cultural efflorescence. The age produced Baruch Spinoza, a pre-eminent philosopher who made his living as a lens grinder. Antonie van Leeuwenhoek introduced scientists to the wonders of microscopic life, while Christiaan Huygens opened up the heavens by improving the telescope (a Dutch invention); he also discovered the rings of Saturn and developed the wave theory of light. In the visual arts, Frans Hals, Johannes Vermeer, and Rembrandt van Rijn created canvases that continue to be admired by many in the world’s museums. In finance, the Bank of Amsterdam, founded in 1609, minted gold coins of fixed weight and purity (in contrast to the unreliable coinage of other states), making Dutch florins the standard of value accepted throughout Europe. Amsterdam would function as the financial capital of Europe until the French Revolution.

It was through shipping and international commerce, however, that the Dutch were able to flex their muscles in western Europe and the Atlantic. It is estimated that by 1600, the Dutch had as many as ten thousand ships, and in the century that followed they owned the bulk of the shipping in northern Europe. Further, they owned vineyards in France. They had whaling vessels in the Arctic. They sailed around Cape Horn at the bottom tip of South America and entered the Pacific, where ultimately the Dutch East India Company, formed in 1602, would hold sway. They became the sole link between Japan and the West. In 1612 they formed a settlement on Manhattan Island; a letter written in 1626 by trader Peter Schagen, the liaison between the Dutch West India Company and the Dutch government, provides the first written reference to the Dutch purchase of the island of Manhattan from the Lenape Indians (famously, for goods valued at 60 guilders, or about $24, although the details surrounding this transaction are uncertain). It was in this cultural, political, and economic context that the Dutch West India Company was chartered in 1621.

Author Biographies

The Charter of the Dutch West India Company was a government document with a corporate author, in this case, the States-General, the body of delegates that represented the United Provinces of the Netherlands, also known by a number of alternative names, including the Dutch Republic and the Republic of the Seven United Netherlands. The States-General was created in the fifteenth century by the dukes of Burgundy, who ruled the region at the time. After the Netherlands revolted against Spain 1568, the States-General continued to function as the nation’s governing body.

The Swaanendael Colony along the Delaware. By Johannes Vingboons. [Public domain], via Wikimedia Commons.

DD17_Charter_of_Dutch_West_Indies.jpg

The formation of the republic was an outcome of the 1579 Union of Utrecht, a treaty by which the northern Dutch provinces agreed to come to each other’s aid in the event of hostilities by Spain. The Dutch Republic, formed in 1581 when the provinces formally declared independence from Spain, united seven provinces into a single polity. These were the Duchy of Guelders, the County of Holland, the County of Zeeland, the Lordship of Utrecht, the Lordship of Overijssel, the Lordship of Frisia, and the Lordship of Groningen and Ommelanden. The States-General were granted authority over foreign and military affairs—and thus had the authority to issue the Charter of the Dutch West India Company. Each province, however, remained independent, for any major decision of the States-General had to be unanimous.

Historical Document

Charter of the Dutch West India Company

June 3, 1621

The States-General of the United Netherlands, to all who shall see these Presents, or hear them read, Greeting.

Be it known, that we knowing the prosperity of these countries, and the welfare of their inhabitants depends principally on navigation and trade, which in all former times by the said Countries were carried on happily, and with a great blessing to all countries and kingdoms; and desiring that the aforesaid inhabitants should not only be preserved in their former navigation, traffic, and trade, but also that their trade may be encreased as much as possible in special conformity to the treaties, alliances, leagues and covenants for traffic and navigation formerly made with other princes, republics and people, which we give them to understand must be in. all parts punctually kept and adhered to: And we find by experience, that without the common help, assistance, and interposition of a General Company, the people designed from hence for those parts cannot be profitably protected and maintained in their great risque from pirates, extortion and otherwise, which will happen in so very long a voyage. We have, therefore, and for several other important reasons and considerations as thereunto moving, with mature deliberation of counsel, and for highly necessary causes, found it good, that the navigation, trade, and commerce, in the parts of the West-Indies, and Africa, and other places hereafter described, should not henceforth be carried on any otherwise than by the common united strength of the merchants and inhabitants of these countries; and for that end there shall be erected one General Company, which we out of special regard to their common well-being, and to keep and preserve the inhabitants of those places in good trade and welfare, will maintain and strengthen with our Help, Favour and assistance as far as the present state and condition of this Country will admit: and moreover furnish them with a proper Charter, and with the following Priveleges and Exemptions, to wit.

  • I. That for the Term of four and twenty Years, none of the Natives or Inhabitants of these countries shall be permitted to sail to or from the said lands, or to traffic on the coast and countries of Africa from the Tropic of Cancer to the Cape of Good Hope, nor in the countries of America, or the West-Indies, beginning at the fourth end of Terra Nova, by the streights of Magellan, La Maire, or any other streights and passages situated thereabouts to the straights of Anian, as well on the north sea as the south sea, nor on any islands situated on the one side or the other, or between both; nor in the western or southern countries reaching, lying, and between both the meridians, from the Cape of Good Hope, in the East, to the east end of New Guinea, in the West, inclusive, but in the Name of this United Company of these United Netherlands. And whoever shall presume without the consent of this Company, to sail or to traffic in any of the Places within the aforesaid Limits granted to this Company, he shall forfeit the ships and the goods which shall be found for sale upon the aforesaid coasts and lands; the which being actually seized by the aforesaid Company, shall be by them kept for their own Benefit and Behoof. And in case such ships or goods shall be sold either in other countries or havens they may touch at, the owners and partners must be fined for the value of those ships and goods: Except only, that they who before the date of this charter, shall have sailed or been sent out of these or any other countries, to any of the aforesaid coasts, shall be able to continue their trade for the sale of their goods, and cosine back again, or otherwise, until the expiration of this charter, if they have had any before, and not longer: Provided, that after the first of July sixteen hundred and twenty one, the day and time of this charters commencing, no person shall be able to send any ships or goods to the places comprehended in this charter, although that before the date hereof, this Company was not finally incorporated: But shall provide therein as is becoming, against those who knowingly by fraud endeavour to frustrate our intention herein for the public good: Provided that the salt trade at Ponte del Re may be continued according to the conditions and instructions by us already given, or that may be given respecting it, any thing in this charter to the contrary notwithstanding.

  • II. That, moreover, the aforesaid Company may, in our name and authority, within the limits herein before prescribed, make contracts, engagements and alliances with the limits herein before prescribed, make contracts, engagements and alliances with the princes and natives of the countries comprehended therein, and also build any forts and fortifications there, to appoint and discharge Governors, people for war, and officers of justice, and other public officers, for the preservation of the places, keeping good order, police and justice, and in like manner for the promoting of trade; and again, others in their place to put, as they from the situation of their affairs shall see fit: Moreover, they must advance the peopling of those fruitful and unsettled parts, and do all that the service of those countries, and the profit and increase of trade shall require: and the Company shall successively communicate and transmit to us such contracts and alliances as they shall have made with the aforesaid princes and nations; and likewise the situation of the fortresses, fortifications, and settlements by them taken.

  • III.Saving, that they having chosen a governor in chief, and prepared instructions for him, they shall be approved, and a commission given by us, And that further, such governor in chief, as well as other deputy governors, commanders, and officers, shall be held to take an oath of allegiance to us and also to the Company.

  • IV. And if the aforesaid Company in and of the aforesaid places shall be cheated under the appearance of friendship, or badly treated, or shall suffer loss in trusting their money or Goods, without having restitution, or receiving payment for them, they may use the best methods in their power, according to the situation of their affairs, to obtain satisfaction.

  • V. And if it should be necessary for the establishment, security and defence of this trade, to take any troops with them, we will, according to the constitution of this country, and the situation of affairs furnish the said Company with such troops, provided they be paid and supported by the Company.

  • VI. Which troops, besides the oath already taken to us and to his excellency, shall swear to obey the commands of the said Company, and to endeavour to promote their interest to the utmost of their ability.

  • VII. That the provosts of the Company on shore may apprehend any of the military, that have inlisted in the service of the aforesaid company, and may confine them on board the ships in whatever city, place, or jurisdiction they may be found; provided, the provosts first inform the officers and magistrates of the cities and places where this happens.

  • VIII. That we will not take any ships, ordnance, or ammunition belonging to the company, for the use of this country, without the consent of the said company.

  • IX. We have moreover incorporated this company, and favoured them with privileges, and we give them a charter besides this, that they may pass freely with all their ships and goods without paying any toll to the United Provinces; and that they themselves may use their liberty in the same manner as the free inhabitants of the cities of this country enjoy their freedom, notwithstanding any person who is not free may be a member of this company.

  • X. That all the goods of this company during the eight next ensuing years, be carried out of this country to the parts of the West Indies and Africa, and other places comprehended within the aforesaid limits, and those which they shall bring into this country, shall be from outward and home convoys; provided, that if at the expiration of the aforesaid eight years, the state and situation of these Countries will not admit of this Freedom’s continuing for a longer time, the said goods, and the merchandises coming from the places mentioned in this Charter, and exported again out of these countries, and the outward convoys and licenses, during the whole time of this Charter, shall not be rated higher by us than they have formerly been rated, unless we should be again engaged in a war, in which case, all the aforesaid goods and merchandises will not be rated higher by us than they were in the last list in time of war.

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  • XXXVIII. And if it happens (which we by no means expect) that any person will, in any manner, hurt or hinder the navigation, business, trade, or traffic of this Company, contrary to the common right, and the contents of the aforesaid treaties, leagues, and covenants, they shall defend it against them, and regulate it by the instructions we have given concerning it.

  • XXXIX. We have moreover promised and do promise, that we will defend this Company against every person in free navigation and traffic, and assist them with a million of guilders, to be paid in five years, whereof the first two hundred thousand guilders shall be paid them when the first payment shall be made by the members; Provided that we, with half the aforesaid million of guilders, shall receive and bear profit and risque in the same manner as the other members of this Company shall.

  • XI. And if by a violent and continued interruption of the aforesaid navigation and traffic, the business within the limits of their Company shall be brought to an open war, we will, if the situation of this country will in any wise admit of it, give them for their assistance sixteen ships of war, the least one hundred and fifty lasts burthen; with four good well sailing yachts, the least, forty lasts burthen, which shall be properly mounted and provided in all respects, both with brass and other cannon, and a proper quantity of ammunition, together with double suits of running and standing rigging, sails, cables, anchors, and other things thereto belonging, such as are proper to be provided and used in all great expeditions; upon condition, that they shall be manned, victualled, and supported at the expense of the Company, and that the Company shall be obliged to add thereto sixteen like ships of war, and four yachts, mounted and provided as above, to be used in like manner for the defence of trade and all exploits of war: Provided that all the ships of war and merchant-men (that shall be with those provided and manned as aforesaid) shall be under an admiral appointed by us according to the previous advise of the aforesaid General Company, and shall obey our commands, together with the resolutions of the Company, if it shall be necessary, in the same manner as in time of war; so notwithstanding that the merchantmen shall not unnecessarily hazard their lading.

  • XLI. And if it should happen that this country should be remarkably eased of its burthens, and that this Company should be laid under the grievous burthen of a war, we have further promised, and do promise, to encrease the aforesaid subsidy in such a manner as the situation of these countries will admit, and the affairs of the Company shall require.

  • XLII. We have moreover ordained, that in case of a war, all the prizes which shall be taken from enemies and pirates within the aforesaid limits, by the Company or their assistants; also the goods which shall be seized by virtue of our proclamation, after deducting all expenses and the damage which the Company shall suffer in taking each prize, together with the just part of his excellency the admiral, agreeable to our resolution of the first of April sixteen hundred and two; and the tenth part for the officers, sailors and soldiers, who have taken the prize, shall await the disposal of the managers of the aforesaid Company; Provided that the account of them shall be kept separate and apart from the account of trade and commerce; and that the nett proceeds of the said prizes shall be employed in fitting our ships, paying the troops, fortifications, garrisons, and like matters of war and defence by sea and land; but there shall be no distribution unless the said nett proceeds shall amount to so much that a notable share may be distributed without weakening the said defence, and after paying the expenses of the war, which shall be done separate and apart from the distributions on account of Trade: And the distribution shall be made one-tenth part for the use of the United Netherlands, and the remainder for the members of this Company, in exact proportion to the capital they have advanced.

  • XLIII. Provided nevertheless, that all the prizes and goods, taken by virtue of our proclamation, shall be brought in, and the right laid before the judicature of the counsellors of the admirality for the part to which they are brought, that they may take cognizance of them, and determine the legality or illegality of the said prizes: the process of the administration of the goods brought in by the Company remaining nevertheless pending, and that under a proper inventory; and saving a revision of what may be done by the sentence of the admirality, agreeable to the instruction given the admiralty in that behalf. Provided that the vendue-masters and other officers of the Admiralty shall not have or pretend to any right to the prizes taken by this Company, and shall not be employed respecting them.

  • XIV. The managers of this Company shall solemnly promise and swear, that they will act well and faithfully in their administration, and make good and just accounts of their trade: That they in all things will consult the greatest profit of the Company, and as much as possible prevent their meeting with losses: That they will not give the principal members any greater advantage in the payments or distribution of money than the least: That they, in getting in and receiving outstanding debts, will not favour one more than another: that they for their own account will take, and, during the continuance of their administration, will continue to take such sum of money as by their charter is allotted to them; and moreover, that they will, as far as concerns them, to the utmost of their power, observe and keep, and cause to be observed and kept, all and every the particulars and articles herein contained.

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Given under our Great Seal, and the Signature and Seal of our Recorder, at the Hague, on the third day of the month of June, in the year sixteen hundred and twenty one.

Was countersigned

J. MAGNUS, Secr.

Underneath was written,

The ordinance of the High and Mighty Lords the States General.

It was subscribed,

C. AERSSEN.

And has a Seal pendant, of red Wax, and a string of white silk.

Source: O’Callaghan, E. B. History of New Netherland; Or, New York under the Dutch. D. Appleton, 1846.

Glossary

burthen: obsolete spelling of “burden”

guilder: a unit of Dutch currency

last: a unit of weight, mass, volume, and number, usually referring to standardized quantities of a ship’s cargo, depending on the commodity

presents: in law, a word that signifies the writing in which it appears; the present instrument

risque: obsolete spelling of “risk”

Terra Nova: today, Newfoundland

vendue-master: one authorized to sell property by “vendue”: an auctioneer

yacht: in seventeenth-century Holland, jaght or jacht; added to the word schip, or “ship,” it referred to a “ship for chasing.”

Document Analysis

The Charter of the Dutch West India Company can be thought of as combination of a business document and a piece of legislation. It is written in relatively dry, bureaucratic language, and many of its provisions deal with the particulars of the company’s business practices and its relationship with the Dutch government. It includes provisions, for example, that specify the number of directors and their terms of office. It was in essence the by-laws of the company

The core of the charter is contained in paragraph I, which outlines the justification for the formation of the company and its fundamental goals. One is to increase the wealth and prosperity of the citizens of the nation. Another is to promote trade and international commerce. Further, the charter is designed to specify how the Dutch Republic will protect is economic interests abroad from the ravages of pirates and aggression from other nations. The belief is that by uniting the nation’s trading interests in the West Indies, Africa, and other points in the Atlantic, profits can be increased to the benefit of all: “for that end there shall be erected one General Company, which we out of special regard to their common well-being, and to keep and preserve the inhabitants of those places in good trade and welfare, will maintain and strengthen with our Help, Favour and assistance.” The paragraph further specifies that the company shall have a monopoly on trade in the areas specified in the charter.

Paragraphs II–IV deal with administrative matters. The charter grants the company the authority to enter into “contracts, engagements and alliances” with “princes and natives,” to build fortifications, appoint public officials, engage in police activities, and the like. Governors, commanders, and officers are required to take an oath of allegiance to the Dutch government. The company is authorized to use any means necessary if it is cheated or “badly treated.”

Beginning with paragraph V, the charter takes up military matters; the company was formed in large part to neutralize the Spanish and the Portuguese, and it was anticipated that the company’s ships and colonies would meet with armed resistance, as well as the threat of piracy. Accordingly, the charter authorizes the company to take troops and requires the troops to promote the interests of the company. The company is authorized to jail any member of the military if it finds it necessary to do so. The charter indicates that the government will not requisition any of the company’s ships or weaponry without the company’s consent.

Paragraphs IX and X deal with the issue of tolls and taxes. The charter grants the company freedom to ply its trade in transporting goods to and from its colonies without having to pay tolls. This freedom is to continue for a period of eight years, and goods will not be valued for tax purposes at increased rates, unless the country is at war.

Beginning with paragraph XXXVIII, the charter takes up matters having to do with interference with the company’s trade, specifically piracy and attacks on ships by foreign powers. The States-General pledge to come to the assistance of the company if anyone should “hurt or hinder the navigation, business, trade, or traffic of this Company, contrary to the common right.” This pledge includes an assurance of financial assistance to the company up to a million guilders. Further, if any interference with the operations of the company should lead to open war, the States-General pledge to provide warships along with necessary equipment and provisions, including weaponry and ammunition. Also pledged are subsidies to aid the company in times of conflict. The charter goes on to specify rules governing the seizure of prizes and booty from pirates and hostile powers and how the monies obtained are to be used: “the nett proceeds of the said prizes shall be employed in fitting our ships, paying the troops, fortifications, garrisons, and like matters of war and defence by sea and land.” The charter specifies the legal provisions pertaining to such prizes, in particular, the need for the admiralty to determine their legality or illegality.

Finally, paragraph XLIV enjoins the managers of the West India Company to carry out their duties faithfully and in an honest manner. They are to keep accurate accounts and do all that is possible to prevent losses; they will not show favoritism in the distribution of profits or in the discharge of debts; they will take only the monies allotted to them by the charter; and they will do all they can to ensure that the provisions of the charter are observed.

Essential Themes

Two major themes emerge from the Charter of the Dutch East India Company. One has to do with the nation’s efforts to increase its mercantile capabilities. For many decades, the people of the Lowland provinces had lived under the yoke of Spanish rule. The Dutch, however, were outcompeting their neighbors in trade, putting them in a position to rebel from the Spanish and become a world power in their own right. They accomplished this aim, however, not through military adventurism but through commerce, shipping, and a sound currency, one that became the standard of value throughout Europe. The Protestant Dutch middle class achieved this success by sustaining an ethic of hard work, probity, lack of ostentation, self-denial, and religious toleration, and while these values often led to bubbling self-satisfaction, they also enabled the nation to prosper. The formation of the West India Company, with its emphasis on trade that is conducted efficiently, honestly, and in a spirit of cooperation (putting aside the matter of the slave trade), contributed to the nation’s prosperity in the same way that the Dutch East India Company had done for nearly two decades—though it should be noted that the West India Company was formed in part because some Dutch merchants were growing to resent the monopoly enjoyed of the older company.

A second theme has to do with the Dutch determination to protect its economic interests at sea and in its colonies and ports abroad. Although the Dutch were not thought of as a major military power, the nation nevertheless had the wherewithal to resist its enemies and to deal with piracy at sea. Accordingly, the charter authorizes the company to provide its own military force—in effect, mercenaries—but also pledges to provide the company with ships, arms, and provisions in the event of hostilities. And should those hostilities lead to open warfare, the charter even promises significant financial aid. In sum, the Charter of the Dutch West India Company announced to the civilized world that the Dutch were a forced to be reckoned with.

—Michael J. O’Neal, PhD

Bibliography and Further Reading

1 

Klooster, Wim. The Dutch Moment: War, Trade, and Settlement in the Seventeenth-Century Atlantic. Cornell University Press, 2016.

2 

Prak, Maarten. The Dutch Republic in the Seventeenth Century: The Golden Age. Translated by Diane Webb. Cambridge University Press, 2005.

3 

Schama, Simon. The Embarrassment of Riches: An Interpretation of Dutch Culture in the Golden Age. Vintage, 1997.

4 

Westermann, Mariët. A Worldly Art: The Dutch Republic, 1585–1718. Yale University Press, 2007.

Website

5 

“Dutch West India Company (1621)” (video). Indiana Public Broadcasting Stations, https://indiana.pbslearningmedia.org/resource/nys09.soc.k-6.statloc.dwic/dutch-west-india-company-1621/#.WQCcPfnyvIU.

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"Charter Of The Dutch West India Company." Defining Documents in World History: The 17th Century (1601-1700), edited by David Simonelli, Salem Press, 2017. Salem Online, online.salempress.com/articleDetails.do?articleName=DD17C_0054.
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Charter of the Dutch West India Company. Defining Documents in World History: The 17th Century (1601-1700), In D. Simonelli (Ed.), Salem Press, 2017. Salem Online, online.salempress.com/articleDetails.do?articleName=DD17C_0054.
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