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The Dutch East India Company might be best known today for introducing tea to Europe—and for the later Boston brouhaha (emphasis on brew) that resulted—but for the Netherlands in the 1600s, it was proof that a corporation could help build an empire.

And it was a huge success. So huge, in fact, that the Republic of the United Netherlands doubled down. On this day in 1621, the Dutch West India Company received a charter and a monopoly over Dutch trade and colonization in the Atlantic, including parts of North America, the Caribbean, and West Africa.

The very first line of the new charter shows how central trade and exploration had become to the Dutch: “the welfare of their inhabitants depends principally on navigation and trade.”

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The new company was intended to compete with Spain, Britain, and Portugal, and so it was given vast powers. It could mint coins, oversee the slave trade, establish colonies, and negotiate treaties. It essentially functioned as a floating extension of the Dutch government.

The company soon established its first foothold at Fort Nassau in what would later become New York. Troops, farmers, and fur traders set up shop in 1624, and the first 30 families of Dutch settlers arrived. A ship sent the following year brought livestock, farm implements, and more settlers, and the scattered settlements were consolidated on Manhattan Island, which the colony’s governor “bought” from the local Indigenous tribe for a pittance. The foundations of what would become New York City had been laid.

Fun Fact

The Dutch word bouwerij translates to “farm” and survives in several place names in New York City.

In 1630 the Dutch West India Company made a successful run at territory in Brazil, challenging Portugal. The prosperity that followed was brief but intense, making the company one of the most powerful in the Atlantic, and the company rode this wave to establish other settlements, notably in Saint Martin (1631), Curaçao (1634), and Aruba (1636).

But the hold on Brazil required a financial investment that the Dutch West India Company couldn’t sustain, and in 1654 it handed the territory back to Portugal. The Dutch West India Company limped along in gradual decline before being dissolved in 1794.

But the charter granted on this day helped shape the Atlantic world, leaving Dutch fingerprints on New York City and Dutch flags flying across the Caribbean.

By the Numbers
  • 24 years: Term of the first charter
  • 500: Otter skins returned to the Netherlands by the first cargo ship from the North American settlement
  • 1664: Year the Dutch ceded their claims to New Netherland to the British
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