edit was necessary for the raising of loans, have been
to some extent fictitious. For the enterprise, which began as a trading
concern, speedily developed into the creation of an empire overseas, and
this meant an immense expenditure.

The Malay Archipelago was the chief scene of early activity, and more
especially the Moluccas. Treaties were made with the native chiefs; and
factories defended by forts were established at Tidor, Ternate,
Amboina, Banda and other places. The victories of Cornelis Matelief
established that supremacy of the Dutch arms in these eastern waters
which they were to maintain for many years. With the conclusion of the
truce the necessity of placing the general control of so many scattered
forts and trading posts in the hands of one supreme official led, in
1609, to the appointment of a governor-general by the Seventeen with the
assent of the States-General. The governor-general held office for five
years, and he was assisted by a council, the first member of which,
under the title of director-general, was in reality minister of
commerce. Under him were at first seven (afterwards eight) local
governors. These functionaries, though exercising considerable powers in
their respective districts, were in all matters of high policy entirely
subordinate to the governor-general. The first holders of the office
were all men who had risen to that position by proving themselves to
possess energy and enterprise, and being compelled by the distance from
home to act promptly on their own initiative, were practically endowed
with autocratic authority. In consequence of this the Dutch empire in
the East became in their hands rapidly extended and consolidated, to the
exclusion of all competitors. This meant not only that the Portuguese
and Spaniards were ousted from their formerly dominant position in the
Orient, but that a collision with the English was inevitable.

The first governor-general, Pieter Both, had made Java the centre of
administration and had established factories and posts at Bantam,
Jacatra and Djapara, not without arousing considerable hostility among
the local rulers, jealous of the presence of the intruders. This
hostility was fostered and encouraged by the English, whose vessels had
also visited Java and had erected a trading-post close to that of the
Dutch at Jacatra. Already the spice islands had been the scene of
hostile encounters between the representatives of the two nations, and
had le