Page 37 - Export Porcelain and Globakization- GOOD READ

ships brought about 31 tons of silver to Canton (worth £276,333). The peak of the
physical transport of silver to Canton took place in the years after the British
Commutation act passed in 1784, which drastically reduced the British import duty on
tea, and lead therefore to a sharp expansion of tea imports. The 1789-1790 season
only required a shipment of 80 tons of silver transported by approximately 20 EIC
ships landing at Whampoa Island. One could call this the “silver for tea” trade period,
but of course, also the “silver for porcelain” period. However, even though 1789 was
the peak for silver exports by the EIC, the overall pattern had already started to
change. The EIC silver exports from Europe to Canton after 1757 reduced drastically
and came to a standstill in the years from 1772 to 1784 and again after 1806. How
could this happen? if we bear in mind that during that period thousands of tons of tea
was exported by the EIC and also several million pieces of porcelain. Answering this
question leads us to the second Eurasian trading pattern, which is based on intra-Asian
trade or so-called “country trade”.
The Portuguese Estado da India invented this pattern in the 16th century and the
Dutch perfected the idea. Getting the necessary resources for buying desired goods
not by using silver but by getting involved in intra-Asian trade is the main
characteristic. It started with the silk for silver trade between Macao and Hirado,
when Portuguese traders sold Chinese silk in Japan to get silver, which then could be
used to buy other Chinese goods, South East Asian spices or Indian cotton. Another
example was the sandalwood for gold trade between the Portuguese trading post
Timor and Macao. The VOC imitated this approach and even inherited the silk for
silver trade organizing it between Taiwan and Japan. Jan Pieterszoon Coen, the
Governor-General of the Dutch Indies described it very well (see letter quoted in
chapter 2): “And all of it can be done without any money from the Netherlands and
with ships alone”. It reduces trade deficits, transport risks and the dependence on the
European home base. The extent of country trade is a good indicator for the
incorporation of Europeans into the Asian networks. Only three countries reached this
kind of integration which requires at least two strong footholds in Asia: Portugal in
the 16th century with its base in Goa and the satellite in Macao, and the VOC in the
17th century with its Asian headquarters in Batavia, several other possessions and
factories in South East Asia, on Taiwan, Dejima Island in Japan and trading posts in
India. They used Japanese silver, nutmeg from Banda, cloves from Ternate, pepper
from Sumatra and sandalwood from Timor to buy products in demand for Europe.
This is perfectly reflected in the statistics of the VOC. The proportion of silver exports
from Europe to Asia were much lower than in the case of the EIC or the other East
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Asian companies. Much could be financed from intra-Asian revenues . However, the
situation changed in the course of the 18th century when the further expansion of
importing Chinese commodities had to be paid for with an increasing proportion of
silver exports.
The EIC was, during the 17th century, mainly concentrated in India with three
presidencies in Bombay, Madras and Calcutta. The incorporation of the EIC into the
South East Asian spice trade ended in 1682 when Banten was captured by the VOC
troops. The EIC could only control a small trading post in Bencoolen, Sumatra for a
limited intra-Asian cotton-pepper trade. When the Canton tea and porcelain trade
started the EIC didn’t have much to offer. Indian cotton was produced for the
European market. Therefore, England had to follow the traditional trading pattern by
shipping silver to Asia. However, the situation changed with the conquest of Bengal in
1757 after the battle of Plessey. The colonial power of the EIC in Bengal included the
right of taxation of Indian citizens and businesses. The silver generated in India could
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