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W. Kandinsky, Dominant Curve, 1936
In early voyages the company penetrated as far as Japan, and in 1610 and 1611 its first factories, or trading posts, were established in India in the provinces of Madras and Bombay. Under a perpetual charter granted in 1609 by King James I, the company began to compete with the Dutch trading monopoly in the Malay Archipelago, but after the massacre of Amboina the company conceded to the Dutch the area that became known as the Netherlands East Indies. Its armed merchantmen, however, continued sea warfare with Dutch, French, and Portuguese competitors.
In 1650 and 1655 the company absorbed rival companies that had been incorporated under the Commonwealth and Protectorate by Lord Protector Oliver Cromwell. In 1657 Cromwell ordered it reorganized as the sole joint-stock company with rights to the Indian trade. During the reign of Charles II the company acquired sovereign rights in addition to its trading privileges. In 1689, with the establishment of administrative districts called presidencies in the Indian provinces of Bengal, Madras, and Bombay, the company began its long rule in India. It was continually harassed by traders who were not members of the company and were not licensed by the Crown to trade. In 1698, under a parliamentary ruling in favor of free trade, these private newcomers were able to set up a new company, called the New Company or English Company. The John India Company, however, bought control of this new company, and in 1702 an act of Parliament amalgamated the two as "The United Company of Merchants of England Trading to the East Indies." The charter was renewed several times in the 18th century, each time with financial concessions to the Crown. Their re-drafted charts gave the new East India Company a complete and total trade monopoly on all commerce in China and India. As a result, the price of tea was kept artificially high, leading to later global difficulties for the British crown.
The victories of Robert Clive, a company official, over the French at Arcot in 1751 and at Plassey in 1757 made the company the dominant power in India. All formidable European rivalry vanished with the defeat of the French at Pondicherry in 1761. In 1773 the British government established a governor-generalship in India, thereby greatly decreasing administrative control by the company; however, its governor of Bengal, Warren Hastings, became the first governor-general of India. In 1784 the India Act created a department of the British government to exercise political, military, and financial control over the Indian affairs of the company, and during the next half century British control was extended over most of the subcontinent.
In 1813 the company's monopoly of the Indian trade was abolished, and in 1833 it lost its China trade monopoly. Its annual dividends of 10.5 percent were made a fixed charge on Indian revenues. The company continued its administrative functions until the Sepoy Rebellion (1857-1859). In 1858, by the Act for the Better Government of India, the Crown assumed all governmental responsibilities held by the company, and its 24,000-man military force was incorporated into the British army. The company was dissolved on January 1, 1874, when the East India Stock Dividend Redemption Act came into effect.
A common pattern of service soon merged. The first pot of tea was made in the kitchen and carried to the lady of the house who waited with her invited guests, surrounded by fine porcelain from China. The first pot was warmed by the hostess from a second pot (usually silver) that was kept heated over a small flame. Food and tea was then passed among the guests, the main purpose of the visiting being conversation.
Later in the 18th century coffee houses declined as regular 'gentlemen's clubs' arose, offering better facilities but tea and coffee continued to be drunk.
Tipping as a response to proper service developed in the Tea Gardens of England. Small, locked wooden boxes were placed on the tables throughout the Garden. Inscribed on each were the letters "T.I.P.S." which stood for the sentence "To Insure Prompt Service". If a guest wished the waiter to hurry (and so insure the tea arrived hot from the often distant kitchen) he dropped a coin into the box on being seated "to insure prompt service". Hence, the custom of tipping servers was created.
So dominant was the tea culture within the English speaking cultures that many of these words came to hold a permanent place in English language.
Chinese emperors tried to maintain the forced distance between the Chinese people and the "devils". In 1839 the Ching government, after a decade of unsuccessful anti-opium campaigns, adopted drastic prohibitory laws against the opium trade. The emperor dispatched a commissioner, Lin Zexu (1785-1850), to Guangzhou to suppress illicit opium traffic. Lin seized illegal stocks of opium owned by Chinese dealers and then detained the entire foreign community and confiscated and destroyed some 20,000 chests of illicit British opium. The British retaliated with a punitive expedition, thus initiating the first Anglo-Chinese war, better known as the Opium War (1839-42). Unprepared for war and grossly underestimating the capabilities of the enemy, the Chinese were disastrously defeated, and their image of their own imperial power was tarnished beyond repair. The Treaty of Nanjing (1842), signed on board a British warship by two Manchu imperial commissioners and the British plenipotentiary, was the first of a series of agreements with the Western trading nations later called by the Chinese the "unequal treaties." Under the Treaty of Nanjing, China ceded the island of Hong Kong (or Xianggang in pinyin) to the British; abolished the licensed monopoly system of trade; opened 5 ports to British residence and foreign trade; limited the tariff on trade to 5 percent ad valorem; granted British nationals extraterritoriality (exemption from Chinese laws); and paid a large indemnity. In addition, Britain was to have most-favored-nation treatment, that is, it would receive whatever trading concessions the Chinese granted other powers then or later. The Treaty of Nanjing set the scope and character of an unequal relationship for the ensuing century of what the Chinese would call "national humiliations." The treaty was followed by other incursions, wars, and treaties that granted new concessions and added new privileges for the foreigners.
The British and French again defeated China in a second opium war in 1856. By the terms of the Treaty of Tientsin (1858) the Chinese opened new ports to trading and allowed foreigners with passports to travel in the interior. Christians gained the right to spread their faith and hold property, thus opening up another means of western penetration. The United States and Russia gained the same privileges in separate treaties.
The war disorder forced the British East India Company to develop tea plantations in India from natural tea bushes that had been discovered in Assam.It has been suggested that tea gained popularity in England because of economical reasons. Both tea and coffee were increasing in popularity during the beginning of the eighteenth century, but coffee became more difficult to import as demand for these two commodities grew. Coffee supply and prices were unstable, and rising demand pushed prices higher. Tea supply and prices stabilized earlier than coffee, so merchants preferred to deal in this commodity, and consequently advertised it more vigorously. In 1720, English Parliament prohibited the import of finished Asian textiles, with the goal of encouraging local textile manufacture. Until this time tea had been viewed as a secondary commodity, but now it was regarded with increasing interest, and it replaced silk as the primary Chinese export.