and by the very keenness
of their competition threatened each other's enterprises with ruin. In
these circumstances the States-General and the Estates of Holland
determined, under the leadership of Oldenbarneveldt, to take a step
which was to be fraught with very important consequences. The rival
companies were urged to form themselves into a single corporation to
which exclusive rights would be given for trading in the East-Indies.
Such a proposal was in direct contradiction to that principle of free
trade which had hitherto been dear to the Netherlanders, and there was
much opposition, and many obstacles had to be overcome owing to the
jealousies of the various provinces, towns and bodies of merchants who
were interested. But at length the patience and statesmanship of
Oldenbarneveldt overcame all difficulties, and on March 20,1601, a
charter was issued creating the United East-India Company and giving it
a monopoly of the East-India trade (for 21 years) with all lands east of
the Cape of Good Hope and west of the Straits of Magellan. The executive
control was vested in a College known as the Seventeen. Extensive
sovereign privileges were conferred upon the company and exercised by
the Seventeen in the name of the States-General. They might make
treaties with native rulers and potentates, erect forts for the
protection of their factories, appoint governors and officials with
administrative and judicial functions, and enlist troops, but these
officials and troops were required to take an oath of allegiance to the
States-General. The States-General themselves became "participants" by
investing the 25,000 pounds, which the company had paid them for the
grant of the charter. The capital speedily reached the amount of six and
a half million guilders.

The warlike operations of the year 1599 were uneventful and in the main
defensive, except on the eastern frontier where the Spanish forces under
the command of the Admiral of Aragon, Mendoza, captured Wesel and
Rheinberg. The new rulers of the Netherlands, Albert and Isabel, did
not make their entry into Brussels until the end of 1599; and almost
before they had had time to organise the new government and gain firm
possession of the reins of power in the Belgic provinces, they found
themselves confronted with a serious danger. The seaport of Dunkirk had
for many years been a nest of pirates, who preyed upon Dutch commerce
in the narrow seas. The States-General, urged on by O