Capitalism in Amsterdam

Thesis: The Dutch Republic’s abundance of supplies and highly organized mercantile and financial organizations helped foster Amsterdam as the leader of capitalism at that time.
Ι. Dutch East India Company
A. Mercantile Empire
1. Personal army
a. The Company almost rules the South Seas and Indies.
b. They have soldiers to enforce their trade on other
countries
c. Grand Minister of State of the company is almost like a
sovereign prince
d. Series of forts around the South Seas; helps secure more
stores of supplies for trade
2. Rooting out former colonial empires
a. Controlling colonies formerly belonging to Spain and
Portugal
B. Great Power
1. Privileges given by the States General (ruling council of Dutch
Republic)
a. Gives the company great power to control its own affairs
b. Loose leash allows economy to flourish.
ΙΙ. Abundance and Control
A. Great Number of supplies
1. Spices
2. War Supplies
a. Great supply means lower prices, thus foreign merchants will
buy from Amsterdam
3. Lumber
a. Ships can be built at 20 percent cheaper rate than in
France and England b. France and Spain buy ships from Holland,
increasing their financial power
4. Marble
5. Wine, Dye
B. Controlling European Markets
1. Copper and Iron
a. Controls much of the marketing of copper and Iron in
Sweden
2. Iron works
a.Controls marketing of iron products from iron works on the
Rhine and other Dutch rivers
ΙΙΙ. Bank and Economic Control
A. Merchants’ Bank
1. Quality inspection
a. clerks inspect the value of gold and silver
2. Security
a. No threat of burglary, fire
b. Dutch parliament preserves the bank
3. Convenience
a. Interest in Bank
b. money always secure and given back punctually
c. No added fees
4. Organization
a. shut up the bank annually for fourteen days to check their
books to make sure they are correct.
B.Lumbert Bank
1. Benefits
a. no extraordinary extortion like in France and England
b. Gives out loans secured by collateral