The trade of the Dutch Company has thus been brought to the period, when its monopoly was proposed to be almost exclusively confined to Java and the Eastern Islands, including Japan. The causes which operated to destroy the Dutch influence on the continent of India, are too well known to require any particular description.
The Dutch had long maintained a decisive superiority, as well on the continent of Asia, as among the Indian islands, until the active exertions of their competitors in trade succeeded in undermining and overturning their monopoly; and as it was natural their weak side should suffer first, it was on the continent, where their establishments were far removed from the chief seat of government, and where they had not been able to insure to themselves those exclusive privileges from the princes of the country which they had exacted from the weaker princes of the Eastern Islands, that other nations, chiefly the French and English, first endeavoured to introduce themselves.
After reciprocal jealousies had for some time prevented both nations from making any considerable progress, a successful war at last turned the scale entirely in favour of the English, whose influence, from that period, has been paramount in continental India, and the Dutch East India Company was no longer able to enforce its system of exclusive trade there.
Without inquiring into the practicability of realizing the flattering estimate made out by the Indian Commissioners, or the policy which dictated a still more rigorous monopoly of the produce of the Eastern Islands, it ought to be remarked, although it seems never to have been adverted to by the Commissioners, whose calculations and plans were exclusively of a commercial nature, that the original situation of the Company as a mere mercantile body, looking out for trade and not dominion, had undergone a material alteration, by the acquisition it had made from the middle of the last century of considerable territorial possessions, especially on the island of Java.
To use the words of one of the most enlightened men who now adorns his country, and is prepared to give energy to a better state of things[8], "these territorial acquisitions became to the Company a source of new relations. In consequence of them, new rights were acquired and obligations of a novel kind were contracted, as well with regard to the territories themselves as the population upon them. The nature of these rights and duties might have been deemed worth inquiry; and as all these territorial acquisitions were made by a delegated authority derived from the government at home, it was further worthy of investigation how far the government itself was entitled to a direct share in the acquisitions made, and how far it was bound to controul and superintend the exercise of those duties which were newly contracted. A consideration of these points would have led to the important question, how far, on a renewal of the Company's charter, it would be requisite to alter and modify its conditions according to existing circumstances, and especially how far it would have been expedient, in future, to leave the Company the exclusive trade, and at the same time the uncontrolled sovereignty over the same country."