Honourable Company: A History of The English East India Company

by John Keay

  The Honourable Company

  John Keay

  For Alexander and Anna

  Table of Contents

  Cover Page

  Title Page

  Preface

  PART ONE A QUIET TRADE 1600-1640

  CHAPTER ONE Islands of Spicerie

  CHAPTER TWO This Frothy Nation

  CHAPTER THREE Pleasant and Fruitfull Lands

  CHAPTER FOUR Jarres and Brabbles

  CHAPTER FIVE The Keye of All India

  PART TWO FLUCTUATING FORTUNES 1640-1710

  CHAPTER SIX These Frowning Times

  CHAPTER SEVEN A Seat of Power and Trade

  CHAPTER EIGHT Fierce Engageings

  CHAPTER NINE Renegades and Rivals

  CHAPTER TEN Eastern Approaches

  PART THREE A TERRITORIAL POWER 1710-1760

  CHAPTER ELEVEN The Dark Age

  CHAPTER TWELVE Outposts of Effrontery

  CHAPTER THIRTEEN One Man’s Pirate

  CHAPTER FOURTEEN The Germ of an Army

  CHAPTER FIFTEEN The Famous Two Hundred Days

  PART FOUR A PARTING OF THE WAYS 1760-1820

  CHAPTER SIXTEEN Looking Eastward to the Sea

  CHAPTER SEVENTEEN The Transfer of Power

  CHAPTER EIGHTEEN Too Loyal, Too Faithful

  CHAPTER NINETEEN Tea Trade Versus Free Trade

  CHAPTER TWENTY Epilogue

  Bibliography

  Index

  Acknowledgement and Author’s Note

  About the Author

  Praise

  By the same author

  Copyright

  About the Publisher

  Preface

  A hundred years ago the high-minded rulers of British India regarded merchants as a lesser breed in the hierarchy of imperial pedigree. To ‘gentlemen in trade’, as to servants, ladies, natives, dogs, the brass-studded doors of Bombay’s and Calcutta’s more exclusive clubs were closed. Like social climbers raising the ladder behind them, the paragons of the Raj preferred to forget that but for the ‘gentlemen in trade’ of the East India Company there would have been no British India.

  The Honourable Company was remembered, if at all, only as an anomalous administrative service; and that was indeed what it had become in the early nineteenth century. But before that, for all of 200 years, its endeavours were seen as having been primarily commercial, often inglorious, and almost never ‘honourable’. Venal and disreputable, its servants were believed to have betrayed their race by begetting a half-caste tribe of Anglo-Indians, and their nation by corrupt government and extortionate trade.

  From those 200 years just a few carefully selected incidents and personalities sufficed by way of introduction to the subsequent 150 years of glorious British dominion. Occasionally greater attention might be paid to the Company’s last decades as an all-conquering force in Indian politics, but still the perspective remained the same: the Company was seen purely as the forerunner to the Raj.

  Closer acquaintance reveals a different story. The career of ‘the Grandest Society of Merchants in the Universe’ spans as much geography as it does history. To follow its multifarious activities involves imposing a chronology extending from the reign of Elizabeth to that of Victoria upon a map extending from southern Africa to north-west America. Heavy are the demands this makes on both writer and reader. (And hence perhaps the dearth of narrative histories of the Company in this post-imperial age.) But the conclusion is inescapable. The East India Company was as much about the East as about India. Its Pacific legacies would be as lasting as those in the Indian Ocean; its most successful commercial venture was in China, not India.

  Freed of its subservient function as the unworthy stock on which the mighty Raj would be grafted, the Company stands forth as a robust association of adventurers engaged in hazarding all in a series of preposterous gambles. Some paid off; many did not but are no less memorable for it. Bizarre locations, exotic produce, and recalcitrant personalities combine to induce a sense of romance which, however repugnant to the scholar, is in no way contrived. It was thanks to the incorrigible pioneering of the Company’s servants that the British Empire acquired its peculiarly diffuse character. But for the Company there would have been not only no British India but also no global British Empire.

  PART ONE

  A QUIET TRADE

  1600-1640

  CHAPTER ONE

  Islands of Spicerie

  THE VOYAGES OF JAMES LANCASTER

  Every overseas empire had to begin somewhere. A flag had to be raised, territory claimed, and settlement attempted. In the dimly perceived conduct of a small band of bedraggled pioneers, stiff with scurvy and with sand in their hose, it may be difficult to determine to what extent these various criteria were met. There might, for instance, be a case for locating the genesis of the British Empire in the West Indies, Virginia, or New England. But there is a less obvious and much stronger candidate. The seed from which grew the most extensive empire the world has ever seen was sown on Pulo Run in the Banda Islands at the eastern end of the Indonesian archipelago. As the island of Runnymede is to British constitutional history, so the island of Run is to British imperial history.

  How in 1603 Run’s first English visitors ever lit upon such an absurdly remote destination is cause for wonder. To locate the island a map of no ordinary dimensions is needed. For to show Pulo Run at anything like scale and also include, say, Darwin and Jakarta means pasting together a sheet of room size – and still Run is just an elongated speck. On the ground it measures two miles by half a mile, takes an hour to walk round and a day for a really exhaustive exploration. This reveals a modest population, no buildings of note, and no source of fresh water. There are, though, a lot of trees amongst which the botanist will recognize Myristica fragrans. Dark of foliage, willow-size, and carefully tended, it is more commonly known as the nutmeg tree.

  For the nutmegs (i.e. the kernels inside the stones of the tree’s peach-like fruit) and for the mace (the membrane which surrounds the stone) those first visitors in 1603 would willingly have sailed round the world several times. Nowhere else on the globe did the trees flourish and so nowhere else was their fruit so cheap. In the minuscule Banda Islands of Run, Ai, Lonthor and Neira ten pounds of nutmeg cost less than half a penny and ten pounds of mace less than five pence. Yet in Europe the same quantities could be sold for respectively £1.60 and £16, a tidy appreciation of approximately 32,000 per cent. Not without pride would James I come to be styled ‘King of England, Scotland, Ireland, France, Puloway [Pulo Ai] and Puloroon [Pulo Run]’. The last named, thought one of its visitors, could be as valuable to His Majesty as Scotland.

  True, the island never quite lived up to expectations. Indeed it would become a fraught and expensive liability. But as it happened, the importance of Run for the East India Company and so for the British Empire lay not in its scented groves of nutmeg but in one particular nutmeg seedling.

  A peculiarity of the Banda islands at the beginning of the seventeenth century was that thanks to their isolation they owed allegiance to no one. Moreover, the Bandanese recognized no supreme sultan of their own. Instead authority rested with village councils presided over by orang kaya or headmen. In the best tradition of south-east Asian adat (consensus), each village or island was in fact a self-governing and fairly democratic republic. They could withhold or dispose of their sovereignty as they saw fit; and whereas the inhabitants of neighbouring Neira and Lonthor had already been bullied into accepting a large measure of Dutch control, those of outlying Ai and Run had managed to preserve their independence intact.
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  By 1616 Run and Ai valued their contacts with the English and, when menaced by the Dutch, voted to pledge their allegiance to the men who flew the cross of St George. They did this by swearing an oath and by presenting their new suzerains with a nutmeg seedling rooted in a ball of Run’s yellowish soil. As well as the symbolism, it was an act of profound trust. Seedlings were closely guarded, and destroyed rather than surrendered. Who knew what effect the naturalization elsewhere of a misappropriated seedling might have on the Bandanese monopoly?

  The recipients of this gratifying presentation were, like all the other doubleted Englishmen who had so far reached Run, employees of the East India Company. But therein lay a problem. For in this, its infancy, the Company was not empowered to hold overseas territories. Its royal charter made no mention of them, only of trading rights and maritime conduct. It was therefore on behalf of the Crown that Run’s allegiance had to be accepted. And when, after an epic blockade of the island lasting four years, the Company would eventually decide that it had had enough of Run, it was in fact the British sovereign who stood out in favour of his exotic windfall and of his Bandanese subjects.

  Even Oliver Cromwell was to have a soft spot for Run, and at his instigation arrangements would be made for re-establishing a permanent colony there. Solid Presbyterian settlers were recruited; goats, hens, hoes, and psalters were piled aboard the good ship London; and it was only at the very last minute that renewed hostilities with the Dutch led to the ship being redirected to St Helena in the south Atlantic. More important, though, it was with Run in mind that the Protector issued the Company with a new charter which included the authority to hold, fortify and settle overseas territories. Thanks to the orang kaya of Run, first St Helena, soon after Bombay, then Calcutta, Bengal, India, and the East would come under British sway.

  But there Run’s celebrity would end. Ironically it was in the same year that the East India Company took over Bombay that Charles II relinquished his rights to Run. Sixty years of Dutch pressure had finally paid off. By the treaty of Breda the British Crown would cede all rights in the Bandas, receiving by way of compensation a place on the north American seaboard called New Amsterdam together with its own spiceless island of Manhattan. It may have seemed like a good swop but the little nutmeg of Run had arguably more relevance to future empire than did the Big Apple.

  ii

  Of those first Elizabethan Englishmen who in 1603 trooped, sea weary and surf soaked, on to Run’s scorching sands we know only from the protest registered by a Dutch admiral who happened to be on the Banda island of Neira at the time. The Dutch had reached the Bandas two years earlier and, but for their sensational success there and elsewhere in the East Indies, it must be doubtful whether London’s merchants would ever have entered the ‘spice race’ or subscribed to an East India Company. But then the Dutch were only emulating the Portuguese who had been trading with the Indies for nearly a century; and although it was the Portuguese who had discovered the sea route round the Cape of Good Hope, even they had not invented the spice trade.

  Since at least Roman times the traffic in exotic condiments from east to west had sustained the most extensive and profitable trading network the world had yet seen. The buds of the dainty clove tree, the berries of the ivy-like pepper vine, and of course the kernel and membrane of the nutmeg had been ideal cargoes. Dried, husked and bagged, they were light in weight, high in value, and easily broken into loads. Shipped to the Asian mainland in junks, prabus and dhows, they were repacked as camel and donkey loads for the long overland journey to the Levant, and then reshipped across the Mediterranean to the European markets.

  In the process their value appreciated phenomenally. What were basic culinary ingredients in south Asia had become exotic luxuries by the time they reached the Mediterranean and the Atlantic. They were the precious metals of the vegetable kingdom and their pungency seemed to enhance their rarity by conferring a whiff of distinction on every household that could afford them. In brines and marinades nutmeg proved a vital preservative; in stews and ragouts pepper masked the smell of ill-cured meat and improved its flavour; and the clove, as well as its culinary uses, was credited with amazing medicinal properties. Like later tea, coffee, and even tobacco, it was as expensive health foods that spices gradually entered everyday diet. As the supply increased, the merchants’ profit margins would fall, but in the sixteenth century it was still calculated that if only one sixth of a cargo reached its destination its owner would still be in profit.

  Control of this lucrative trade rested traditionally with the Chinese and Malays in the East, with the Indians and Arabs in its middle reaches, and with the Levantines and Venetians in the West. But around the year 1500 other interested parties had appeared on the scene. It was to reroute the spice trade to the greater advantage of Christendom and their own considerable profit that European seafarers from Spain and Portugal first ventured on to the world’s oceans. Improvements in marine design, in navigational instruments, cartography and gunnery soon gave the newcomers an edge over their Asian rivals. They could sail further, faster, and for longer. They had less need to hug the coastline and, since the spice-producing islands lay on the opposite side of the world, they had a choice of sailing east or west.

  But what their charts failed to show was that other lands lay in the way. Hence the search for the Spice Islands threw up the discovery of America, of the Pacific archipelagos, of sub-Saharan Africa, and of the Indian and south-east Asian coastlines. Knowledge of, and eventually dominion over these ‘new worlds’ would follow. Yet such incidental discoveries could not immediately deflect the European parvenus from their main objective. Trade, not conquest or colonization, was the priority. In 1511, only twenty-three years after first rounding the Cape of Good Hope, the Portuguese had reached Java; and in 1543, twenty-three years after discovering the Magellan strait near Cape Horn, a Spanish fleet from Mexico had laid claim to the islands soon christened the Philippines. Somewhere in the gap remaining between these two global pincer movements lay the Spice Islands.

  The perversity of nature in lavishing her most valued products on islands so small and impossibly remote prompted wonder and fable. To what Milton called the ‘islands of spicerie’ an air of mystery clung. When Christopher Columbus had cast about for a sponsor for his projected voyage over the western horizon, he made much of the idea that if he did not find the spice-rich Indies he had a good chance of finding the lost continent of Atlantis. Neither was a geographical certainty; both owed much to the imagination.

  Even today, with better and more comprehensive maps, it is hard to put a finger on the exact spot. ‘Spice Islands’ was as much a description as a proper name, and mostly it was reserved for islands which had no other claim on the map-maker’s attention. Thus somewhere as important as Sri Lanka, although always the main producer of cinnamon bark, did not qualify and neither did the main pepper-producing areas of Sumatra and of India’s Malabar coast.

  The real spice islands were less obvious and more mysterious, and lay much further to the east between Sulawesi (Celebes), New Guinea, and the Philippines. This, the Moluccan triangle, is also the epicentre of Indonesia’s volcanic ‘Ring of Fire’. On average there is an eruption every five years and deposits of volcanic soil are as crucial to the location of spice groves as the humid sea-breezes. In seventeenth-century drawings Tidore and Ternate, the main clove-producing islands, figure as smoking volcanoes rising sheer from the ocean, the only vegetation being a fringe of coconut palms at their base. Horticulturally they look most unpromising. Yet this is in fact a fairly accurate depiction. The cones rise a mile into the sky and only the narrowest of margins between the encircling ocean and the funnel of fire is available for clove gardens. Likewise the Banda Islands are dominated by the great central volcano of Gunung Api which periodically showers the nutmeg groves with rich volcanic dust. If the production of spices required such an elemental setting, it was no wonder they were a rarity.

  The first spice race, won
by the Portuguese, was confirmed by the terms of a Papal bull which drew a sort of international date-line between the advancing fleets of Spain and Portugal. With a chain of heavily fortified bases stretching from Hormuz in the Persian Gulf to Goa in India, then Malacca near the modern Singapore, and finally Ambon in the central Moluccas, the Portuguese made good their claim to control of the entire spice route. Barring occasional interference from the Spanish in the Philippines, they enjoyed as near a monopoly of the oceanic spice trade as they cared to enforce for most of the sixteenth century.

  Other European rivals simply failed to materialize. As yet the Dutch were still enduring the birth pangs of nationhood; and the English, who with the loss of Calais and the break with Rome were at last looking away from Europe, were nevertheless looking in the wrong direction. Observing how, although the Portuguese sailed into the sunrise and the Spanish into the sunset, both had successfully found a path to the Spice Islands, Englishmen had concluded that they too could expect to discover their own corridor to the East. The fact that that same Papal bull gave the Iberian powers a monopoly over their respective routes which might be enforced by any available means was also good reason for Tudor seafarers to find their own route. Like their Spanish and Portuguese rivals, the English were familiar with the latest advances in marine technology and were dimly aware that being located on the European periphery should no longer be a disadvantage. In what was to be the age of the Atlantic powers, the English were not behindhand; only five years after Columbus, John Cabot in an English vessel had been the first to reach the American mainland. But they were unlucky. Portuguese endeavour had been handsomely rewarded by the discovery of a ‘south-east passage’ round the Cape of Good Hope; thereafter the Indies had been plain sailing. Similarly a ‘south-west passage’ round the Horn had awaited the Spanish. But where were their northern equivalents?