of Belgium." All this was very perturbing to the Dutch
government, who were most anxious lest an Austrian attempt at reconquest
might lead to a European conflict close to their borders. The death of
Joseph on February 24, 1790, caused the danger to disappear. His
brother, Leopold II, at once offered to re-establish ancient privileges,
and succeeded by tact and moderation in restoring Austrian rule under
the old conditions. That this result was brought about without any
intervention of foreign powers was in no small measure due to a
conference at the Hague, in which Van de Spiegel conducted negotiations
with the representatives of Prussia, England and Austria for a
settlement of the Belgian question without disturbance of the peace.

The council-pensionary found the finances of the country in a state of
great confusion. One of his first cares was a re-assessment of the
provincial quotas, some of which were greatly in arrears and inadequate
in amount, thus throwing a disproportionate burden upon Holland. It was
a difficult task, but successfully carried out. The affairs of the East
and West India Companies next demanded his serious attention. Both of
them were practically bankrupt.

The East India Company had, during the 18th century, been gradually on
the decline. Its object was to extract wealth from Java and its other
eastern possessions; and, by holding the monopoly of trade and
compelling the natives to hand over to the Company's officials a
proportion of the produce of the land at a price fixed by the Company
far below its real value (_contingent-en leverantie-stelsel_), the
country was drained of its resources and the inhabitants impoverished
simply to increase the shareholder's dividends. This was bad enough, but
it was made worse by the type of men whom the directors, all of whom
belonged to the patrician regent-families, sent out to fill the posts of
governor-general and the subordinate governorships. For many decades
these officials had been chosen, not for their proved experience or for
their knowledge of the East or of the Indian trade, but because of
family connection; and the nominees went forth with the intention of
enriching themselves as quickly as possible. This led to all sorts of
abuses, and the profits of the Company from all these causes kept
diminishing. But, in order to keep up their credit, the Board of XVII
continued to pay large dividends out of capital, with the inevitable
result that the Com