ENGLISH EAST INDIA COMPANY (1600-1717)
English too had become impatient to participate in the profitable Asian Trade.
1599: A company to trade with the East was formed under the auspices of a group of merchants known as - the Merchant Adventurers. The company popularly came to be known as the East India Company (or EIC, nickname- John Company).
A Glance of English East India Company:
1600: The English Company:
- The company was granted a royal charter by Queen Elizabeth giving it to the exclusive privilege of trading east of the Cape of Good Hopes for a period of 15 years.
- In the beginning, the English company concentrated on the spice trade.
- The initial voyages of the Company were made to the Spice Islands in Indonesia.
- Soon the English discovered the importance of Indian goods especially textiles as a barter (trading) commodity for the spice trade.
- Surat (Gujarat) was established as the trade transit point & the company ships were docked there.
- The company now planned to open a factory at Surat & Captain Hawkins was sent.
- He was sent as a representative of the English Company to the Court of Jahangir to obtain permission to open a factory - at Surat (Gujarat).
- He was the first Englishman to set foot on Indian soil.
- He could speak the Turkish language & he came in a ship named - 'Hector'.
- 1609: He arrived at Surat & from there went to the Court of Jahangir at Agra.
- He obtained permission to open factories on the west coast but the Company not satisfied as to wanted permission for the whole of the country.
- He was sent by King James I as an ambassador to the court of Jahangir.
- Roe was successful in obtaining royal Farman permitting the British to trade and establish factories in all parts of the Mughal Empire.
- Soon the English began to feel insecure in absence of fortified settlements & made an attempt to fortify Surat but the Mughal frustrated the attempt & imprisoned the English.
- The English then decided to shift their focus to South India to avoid direct confrontation with the Mughals.
- Conditions in South India were more favorable to English as they did not have to face a strong Indian government there.
Madras:
- Sultan of Golconda issues a golden Farman in favor of the English, permitting them to trade freely from the ports of Golconda on an annual payment of 500 pagodas.
- He was able to join obtain Madras on lease from the Raja of Chandragiri & shifted the center of their activity to Madras.
- The Raja allowed the English to fortify Madras, to administer it & to coin the money on the condition that the English will pay him half the customs revenue of the port.
- The English set up a factory & built a small fort around it called 'Fort St. George'.
Bengal:
- At Hugli, the first English factory in Bengal was set up upon receiving permission from Sultan Shuja (second son of Emperor Shah Jahan), the Subahdar of Bengal.
- All establishment of the Company in Bengal, Bihar, Orissa, & Coromandel Coast were brought under the control of Fort St. George.
- He established a factory at Sutanuti which was fortified in 1696 and is called Fort William.
- The English Company obtained from Subahdar of Bengal Azim-us-Shan, the zamindari (right to collect revenue) of the villages of Sutanuti, Kalikata, and Gobindpur on payment of Rs.1,200. to the previous proprietors.
- The Bengal factories were placed under Fort William.
- Soon the Kalikata village grew into a city known as- Calcutta.
Bombay:
- King Charles II received Bombay as dowry on marrying a Portuguese princess.
- The Crown transferred it to the Company on an annual rent of 10 pounds and it was soon fortified in the wake of threats from the raising Maratha Power.
- Bombay quickly replaced Surat as the principal depot of the Company on the West coast.
- Farrukhsiyar granted the English Company valuable trading privileges under the Farman of 1717 described as the Magna Carta of the Company.
- The Farman was granted because earlier in 1714, William Hamilton, a surgeon in the British East India Company had successfully cured Farrukhsiyar of a disease (swelling in the groin).
- After successful treatment, Farrukhsiyar finally arranged his marriage to the daughter of Raja Ajit Singh of Jodhpur, which had been delayed by the illness.
- The Farman was instrumental in increasing the Company's stronghold in Bengal which later colonized Bengal followed by the rest of India.
- The British were allowed duty-free trade in Bengal in lieu of an annual payment of Rs.30,000.
- Exemption from payment of all dues at Surat in lieu of a one-time settlement of Rs.10,000.
- The Campany retained its old privilege of exemption from payment of all dues at Hyderabad & for Madras was required to pay only the existing rent.
- The Company was allowed to rent more territory around Calcutta.
- The Company was allowed to use its own currency (minted at Bombay) throughout India.
- The Company was also granted the right to issue passes or dastaks for the movement of such goods.
- The Company's' servants were also permitted to trade but were not covered under this Farman.
- This Farman became a perpetual source of conflict between the Company & the Nawab of Bengal.
- The strong Nawab of Bengal Murshid Quli Khan & Alivardi Khan- objected to the English interpretation of the Farman of 1717.
- They exercised strict control over the English traders & prevented them from misusing the Dastaks.
- Despite strong political control by native rulers, the commercial affairs of the Company flourished.
- Madra, Bombay, Calcutta - became the nuclei of commercial activities.