Trade
VOC Logo

Letter T rade Batavia served as a transit port for the products and goods the VOC traded in. This port was on the North coast of Java, near the Strait of Sunda. It was one of the main merchant routes between East and West Asia. The High Government was seated in Java as well. Some further smaller offices were established along the main Asian merchant routes The VOC did not possess enough means of change to buy the spices they had come to get, because there was little demand for the goods they brought from Europe or the goods were too expensive. That is why, for example, silver was taken to China in exchange for silk and this silk was traded in exchange for gold and copper. The gold and copper were shipped to India to buy textile products. Finally these products were shipped to the Molucca Islands and exchanged for spices such as cloves, nutmeg and mace.

One of the card giving the Dutch the right to trade with Japan
One of the card giving the Dutch the right to trade with Japan

This was obviously a very complicated system, but it worked because in the end everybody got what they wanted. It was a great privilege for the Dutch to trade in Japan, for they were the only ones allowed to do that. In exchange, however, a group of Dutch VOC traders had to settle on a small island and were not allowed to leave. They were under strict Japanese supervision and were only in touch with coolies, interpreters and prostitutes. They did not mind this, however, because the profits from the trade with Japan were very high. The VOC had the exclusive right to the trade in mace and nutmeg on the Banda Islands. When the VOC found out that the Bandans did not stick to the agreement and also traded with other countries, the islands were partly massacred and the remaining Bandans fled to the mountains and starved. In this way the VOC put a stop to smuggling.

Dutch trading post on Deshima (Japan)
Dutch trading post on Deshima (Japan)
On the islands the VOC built Fort Hollandia and started nutmeg plantations run and worked by slaves and colonists. The entire crop was sold to the VOC at a fixed price. As cloves were only found in a few places and there was a large demand for them, the people were encouraged to start growing cloves. The people of Ambon, Ceram and the othe Moluccan islands promised only to supply to the VOC, but they, too, started supplying other countries. Then the clove production was concentrated on Ambon as this was the only island the VOC controlled. With strong measures the Portuguese, Spanish and the English a.o. were forced back. After a long battle the VOC eventually got a very important monopoly position in the clove trade, supplying the entire European market. The Dutch also obtained a monopoly in the cinnamon trade and had a large share in the pepper trade
Spices
Spices