Joint Venture Companies
Title Sheet from West Indian Atlas showing the exotic and far reaching extent of joint venture power and control, http://everythingfurniture.artselect.com/perl/frChooseSize?artID=26611&t=cg461-c4594&customerID=59544840-1401957999
The joint venture company began in the 16th century and was one of the forms of investing that had a major impact on the creation of businesses, trade, capital, and eventually the acquisition of land. Joint venture companies created wealth for England, for businesses, and investors. The shareholders in these companies provided for the financing of important government and non-government projects.
The joint venture companies that were formed for trade and exploration were given a government charter to handle all trade in a particular region. The company was responsible for arranging the ships to carry goods for trade, to protect the traders and goods, to limit amounts traded, to stand behind the credit of the traders. The company created trade, imports and exports, business and money for investors. Within a short time, numbers of these companies developed: like the Eastland Company (1579) which covered Scandinavia, Poland, and the Baltic; the Muscovy Company (1555) which handled Russia: the Levant Company (1581) which handled the Turkish Empire: the East India Company (1600) which handled India. Eventually, other traders, “ free traders” convinced the English government to allow other trading, outside of these companies to occur. However, these companies were the key to opening up and expanding trade in areas around the world. “By 1750 English merchants had established themselves in most European ports.”[1]
The joint stock companies also set the way for colonization. Companies were formed to establish trading centers and colonies. This happened with Virginia in 1606, Bermuda in 1611, Guiana in 1619, New England in 1620, Nova Scotia in 1621, for example. The companies provided the way to finance and organize settlements.
The companies furthered the interests of England wherever they were and provided for the creation and expansion of the empire. The East India Company is a prime example. It began with a government charter with a monopoly on trade to the East and Southeast Asia and India for fifteen years. At first, the company was in search of importing spices but then expanded to cotton, silk, indigo, and saltpeter. The company had to provide the people to carry out the trade and the people to protect them. Gradually, the company became involved in politics and in1757 conquered Bengal, becoming the ruler of 30,000,000 people and then went on to conquer other regions of India. The East India Company really brought India to England which eventually took over its government in 1858 and added it to its empire. [2]