ABSTRACT
The general declining state of the Dutch East India Company (VOC), the futility of much of its commercial and political policies, and the unprofitability of some of its trade had been noted since the beginning of the eighteenth century by many of its officials in the east. A detailed and precise statement of this continuing decline was made in 1741 by Baron van Imhoff, the designated governor-general, before his departure to Batavia to assume that office. 1 Imhoff noted three general causes for the unsatisfactory position of the company. Firstly it had grown too large for its good health both in territory and in its commercial enterprises and was not in a position to manage these enterprises exclusively. Secondly there had been a general worsening of terms and conditions of eastern trade. This situation was caused both by the confusion of the company’s extended trading network as well as by the entry of more and more competitors in the field, especially from the early years of the eighteenth century. Prices had risen and Asian traders and producers supplying the Europe/Asia trade were in a more advantageous position. In the context of rising prices and lessening profits, large organizations such as the VOC, with vast capital outlay and fixed capital costs were the worst affected. Thirdly the company was not as well served as before by officers who could attack these evils and bring about necessary remedies. Imhoff went on to suggest a number of radical measures to rehabilitate and revitalize the company.
