Speculator Against The Dutch East India Company
Isaac Le Maire has also tried to use his knowledge of the VOC to cross the company financially. In 1609 he and eight others founded a secret company with the purpose to trade in VOC shares. Le Maire owned nearly one quarter of its shares. This so-called "Grote Compagnie" sold short shares of the VOC, that is, without actually owning them. By the time these shares were to be delivered, there was an interest in keeping the share price as low as possible. Le Maire probably expected that the competition by the still to be created French East India Company, would ensure the share price of the VOC to drop significantly. However, the French company was shelved. Rumours were spread to depress the prices, anyway. Such activities were detrimental to the (existing) VOC shareholders, who sometimes were forced to sell their shares at a low price. In particular, in 1609 the share price fell significantly, and the VOC imputed this to the machinations of Le Maire.
The VOC attempted via the States-General of the Netherlands to impose restrictions on free trade in VOC shares, which the company of Le Maire fiercely resisted. They claimed, the price drop was the result of the bad course of actions of the VOC. But the States-General decided in 1610 to prohibit the sale of shares not in possession. During 1610 and 1611 the stock price of the VOC increased. The company of Le Maire suffered big losses because many shares had to be delivered at a lower price than the market. They were therefore compelled to deliver shares at a loss. Several members of his company went bankrupt and Le Maire had also suffered significant losses, but he could still meet his obligations. This fiasco led him to withdraw from Amsterdam.
Read more about this topic: Isaac Le Maire
Famous quotes containing the words speculator, dutch, east, india and/or company:
“Beautiful credit! The foundation of modern society. Who shall say that this is not the golden age of mutual trust, of unlimited reliance upon human promises? That is a peculiar condition of society which enables a whole nation to instantly recognize point and meaning in the familiar newspaper anecdote, which puts into the mouth of a distinguished speculator in lands and mines this remark:MI wasnt worth a cent two years ago, and now I owe two millions of dollars.”
—Mark Twain [Samuel Langhorne Clemens] (18351910)
“Tis probable Religion after this
Came next in order; which they could not miss.
How could the Dutch but be converted, when
The Apostles were so many fishermen?
Besides the waters of themselves did rise,
And, as their land, so them did re-baptize.”
—Andrew Marvell (16211678)
“We might as easily reprove the east wind, or the frost, as a political party, whose members, for the most part, could give no account of their position, but stand for the defence of those interests in which they find themselves.”
—Ralph Waldo Emerson (18031882)
“But nothing in India is identifiable, the mere asking of a question causes it to disappear or to merge in something else.”
—E.M. (Edward Morgan)
“We do not mind our not arriving anywhere nearly so much as our not having any company on the way.”
—Frank Moore Colby (18651925)