From Prosperity to Decay, 1659–1690

Abstract

The conquest of Negapatam in 1658 symbolized in a spectacular fashion the Company’s triumph in the face of manifold problems encountered during the first half century of its career on the coast. The victory over the French at San Thome sixteen years later indicated a further accession of military might and political power. During the intervening years the volume of trade was also maintained on a level hardly lower than that of the preceding period, and the comparatively peaceful conditions in the greater part of Coromandel offered a welcome change from the wars and anarchy of earlier years. Yet all was not well with the Dutch position on the coast. A rapid expansion of English and Asian trade undermined the superior position which the Dutch had secured after hard struggles. Financial difficulties and a preposterous monetary policy adopted by the Golconda government hampered normal commercial operations, while the heavy expenses of an unprofitable factory developed into a serious predicament.