Thursday, January 20, 2011
Monopoly of Trade by British India
One of the strangest part of the history of the British Empire involves that commercial venture generally known as the East India Company, though its original name when founded by royal charter on the very last day of 1600 was the Governor and Company of Merchants of London.
The company developed a lobby in the English Parliament.The former associates of the company deregulating act was passed in 1698, a new "parallel" East India Company was floated under a state backed indemnity of 2 million pound. The powerful stockholders of the old company quickly subscribed a sum of 315,000 pound in the new concern and by 1708 the merged company lent to the treasury a sum of 3,200,000 pound in return for exclusive privileges for the next three years, after which the situation was to be reviewed.The amalgamated company became the United Company of Merchants of England Trading to the East Indies.By 1720, 15% of British imports were from India. The license of the company was prolonged until 1766 by yet another act in 1730.
At this time Britain and France became at daggers drawn.