Ostend Company
Encyclopedia
The Imperial Ostend Company was an Austrian private trading company
established in 1717 to trade with the East
and West Indies. For a few years it provided strong competition to the traditional colonial trading companies. It was eventually closed down in 1731 following British pressure as part of the Treaty of Vienna
creating an alliance between the two states
.
, British
and French
East India Companies led the merchants and shipowners of Ostend
in the Austrian Netherlands to desire to establish direct commercial relations with the Indies. The trade from Ostend
to Mocha
, India
, Bengal
and China
started in 1715. Some private merchants from Antwerp, Ghent
and Ostend were granted charters for the East India trade by the Habsburg
government of the Austrian Netherlands, which had recently gained control of the territory from Spain. Between 1715 and 1723, 34 ships sailed from Ostend to China, the Malabar
or Coromandel Coast
, Surat
, Bengal or Mocha
. Those expeditions were financed by different international syndicates composed of Flemish
, English, Dutch and French merchants and bankers.
, in December 1722. The capital of the company was fixed at 6 million guilders, composed of 6,000 shares of 1,000 guilders each. It was mainly supplied by the moneyed inhabitants of Antwerp and Ghent. The directors were chosen out of the rich and skilled merchants or bankers who had been involved in the private expeditions. The company also possessed two factories
: Cabelon on the Coromandel Coast
and Banquibazar in Bengal
.
Between 1724 and 1732, 21 company vessels were sent out, mainly to Canton in China and to Bengal. Thanks to the rise in tea
prices, high profits were made in the China trade.
This was a thorn in the side of the older rival companies, such as the Dutch VOC
, the English EIC and the French CFT
. They refused to acknowledge the Austrian emperor's right to found an East India company in the Southern Netherlands and considered the Ostenders interlopers. International political pressure was put on the emperor, and he finally capitulated, particularly not wanting to offend the British who had become allies of the Austrians, and who raised the most vocal opposition to the new company.
ordered the definitive abolition. The flourishing Ostend Company had been sacrificed to the interests of the Austrian dynasty. Between 1728 and 1731 a small number of illegal expeditions was organized under borrowed flags, but the very last ships sailing for the company were the two "permission-vessels" that left in 1732 and were a concession made in the second treaty of Vienna.
In the 1770s Austria considered re-establishing a colonial trading company, the Antwerp Company based on the model of the Ostend Company and taking advantage of the ongoing war between Britain and France to take over much of their international trade.
Trading company
Trading companies are businesses working with different kinds of products which are sold for consumer, business or government purposes. Trading companies buy a specialized range of products, maintain a stock or a shop, and deliver products to customers....
established in 1717 to trade with the East
East Indies
East Indies is a term used by Europeans from the 16th century onwards to identify what is now known as Indian subcontinent or South Asia, Southeastern Asia, and the islands of Oceania, including the Malay Archipelago and the Philippines...
and West Indies. For a few years it provided strong competition to the traditional colonial trading companies. It was eventually closed down in 1731 following British pressure as part of the Treaty of Vienna
Treaty of Vienna (1731)
The Treaty of Vienna was first signed on 16 March 1731 by Count Finzendorf and the Earl of Chesterfield. This treaty marked the collapse of the Anglo-French Alliance , the beginning of the Anglo-Austrian Alliance and the birth of the legend of the natural enmity between the Kingdom of France and...
creating an alliance between the two states
Anglo-Austrian Alliance
The Anglo-Austrian Alliance connected the Kingdom of Great Britain and the Habsburg monarchy during the first half of the 18th century. It was largely the work of the British statesman Duke of Newcastle, who considered an alliance with Austria crucial to prevent the further expansion of French...
.
Background
The success of the DutchDutch East India Company
The Dutch East India Company was a chartered company established in 1602, when the States-General of the Netherlands granted it a 21-year monopoly to carry out colonial activities in Asia...
, British
British East India Company
The East India Company was an early English joint-stock company that was formed initially for pursuing trade with the East Indies, but that ended up trading mainly with the Indian subcontinent and China...
and French
French East India Company
The French East India Company was a commercial enterprise, founded in 1664 to compete with the British and Dutch East India companies in colonial India....
East India Companies led the merchants and shipowners of Ostend
Ostend
Ostend is a Belgian city and municipality located in the Flemish province of West Flanders. It comprises the boroughs of Mariakerke , Stene and Zandvoorde, and the city of Ostend proper – the largest on the Belgian coast....
in the Austrian Netherlands to desire to establish direct commercial relations with the Indies. The trade from Ostend
Ostend
Ostend is a Belgian city and municipality located in the Flemish province of West Flanders. It comprises the boroughs of Mariakerke , Stene and Zandvoorde, and the city of Ostend proper – the largest on the Belgian coast....
to Mocha
Mocha, Yemen
Mocha or Mokha is a port city on the Red Sea coast of Yemen. Until it was eclipsed in the 19th century by Aden and Hodeida, Mocha was the principal port for Yemen's capital Sana'a.-Overview:...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, Bengal
Bengal
Bengal is a historical and geographical region in the northeast region of the Indian Subcontinent at the apex of the Bay of Bengal. Today, it is mainly divided between the sovereign land of People's Republic of Bangladesh and the Indian state of West Bengal, although some regions of the previous...
and China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
started in 1715. Some private merchants from Antwerp, Ghent
Ghent
Ghent is a city and a municipality located in the Flemish region of Belgium. It is the capital and biggest city of the East Flanders province. The city started as a settlement at the confluence of the Rivers Scheldt and Lys and in the Middle Ages became one of the largest and richest cities of...
and Ostend were granted charters for the East India trade by the Habsburg
Habsburg
The House of Habsburg , also found as Hapsburg, and also known as House of Austria is one of the most important royal houses of Europe and is best known for being an origin of all of the formally elected Holy Roman Emperors between 1438 and 1740, as well as rulers of the Austrian Empire and...
government of the Austrian Netherlands, which had recently gained control of the territory from Spain. Between 1715 and 1723, 34 ships sailed from Ostend to China, the Malabar
Malabar Coast
The Malabar Coast is a long and narrow coastline on the south-western shore line of the mainland Indian subcontinent. Geographically, it comprises the wettest regions of southern India, as the Western Ghats intercept the moisture-laden monsoon rains, especially on their westward-facing mountain...
or Coromandel Coast
Coromandel Coast
The Coromandel Coast is the name given to the southeastern coast of the Indian Subcontinent between Cape Comorin and False Divi Point...
, Surat
Surat
Surat , also known as Suryapur, is the commercial capital city of the Indian state of Gujarat. Surat is India's Eighth most populous city and Ninth-most populous urban agglomeration. It is also administrative capital of Surat district and one of the fastest growing cities in India. The city proper...
, Bengal or Mocha
Mocha, Yemen
Mocha or Mokha is a port city on the Red Sea coast of Yemen. Until it was eclipsed in the 19th century by Aden and Hodeida, Mocha was the principal port for Yemen's capital Sana'a.-Overview:...
. Those expeditions were financed by different international syndicates composed of Flemish
Flemish people
The Flemings or Flemish are the Dutch-speaking inhabitants of Belgium, where they are mostly found in the northern region of Flanders. They are one of two principal cultural-linguistic groups in Belgium, the other being the French-speaking Walloons...
, English, Dutch and French merchants and bankers.
Establishment
The mutual rivalry among the syndicates weighed heavily upon the profits and this resulted in the foundation of the Ostend East-India Company, chartered by the Austrian ruler Charles VI, Holy Roman EmperorCharles VI, Holy Roman Emperor
Charles VI was the penultimate Habsburg sovereign of the Habsburg Empire. He succeeded his elder brother, Joseph I, as Holy Roman Emperor, King of Bohemia , Hungary and Croatia , Archduke of Austria, etc., in 1711...
, in December 1722. The capital of the company was fixed at 6 million guilders, composed of 6,000 shares of 1,000 guilders each. It was mainly supplied by the moneyed inhabitants of Antwerp and Ghent. The directors were chosen out of the rich and skilled merchants or bankers who had been involved in the private expeditions. The company also possessed two factories
Factory (trading post)
Factory was the English term for the trading posts system originally established by Europeans in foreign territories, first within different states of medieval Europe, and later in their colonial possessions...
: Cabelon on the Coromandel Coast
Coromandel Coast
The Coromandel Coast is the name given to the southeastern coast of the Indian Subcontinent between Cape Comorin and False Divi Point...
and Banquibazar in Bengal
Bengal
Bengal is a historical and geographical region in the northeast region of the Indian Subcontinent at the apex of the Bay of Bengal. Today, it is mainly divided between the sovereign land of People's Republic of Bangladesh and the Indian state of West Bengal, although some regions of the previous...
.
Between 1724 and 1732, 21 company vessels were sent out, mainly to Canton in China and to Bengal. Thanks to the rise in tea
Tea
Tea is an aromatic beverage prepared by adding cured leaves of the Camellia sinensis plant to hot water. The term also refers to the plant itself. After water, tea is the most widely consumed beverage in the world...
prices, high profits were made in the China trade.
This was a thorn in the side of the older rival companies, such as the Dutch VOC
Dutch East India Company
The Dutch East India Company was a chartered company established in 1602, when the States-General of the Netherlands granted it a 21-year monopoly to carry out colonial activities in Asia...
, the English EIC and the French CFT
French East India Company
The French East India Company was a commercial enterprise, founded in 1664 to compete with the British and Dutch East India companies in colonial India....
. They refused to acknowledge the Austrian emperor's right to found an East India company in the Southern Netherlands and considered the Ostenders interlopers. International political pressure was put on the emperor, and he finally capitulated, particularly not wanting to offend the British who had become allies of the Austrians, and who raised the most vocal opposition to the new company.
Suspension
In May 1727 the charter of the company was suspended for seven years and in March 1731 the second treaty of ViennaTreaty of Vienna (1731)
The Treaty of Vienna was first signed on 16 March 1731 by Count Finzendorf and the Earl of Chesterfield. This treaty marked the collapse of the Anglo-French Alliance , the beginning of the Anglo-Austrian Alliance and the birth of the legend of the natural enmity between the Kingdom of France and...
ordered the definitive abolition. The flourishing Ostend Company had been sacrificed to the interests of the Austrian dynasty. Between 1728 and 1731 a small number of illegal expeditions was organized under borrowed flags, but the very last ships sailing for the company were the two "permission-vessels" that left in 1732 and were a concession made in the second treaty of Vienna.
In the 1770s Austria considered re-establishing a colonial trading company, the Antwerp Company based on the model of the Ostend Company and taking advantage of the ongoing war between Britain and France to take over much of their international trade.