“New Spain’s Century of Depression”

From Imperial Spain: 1469-1716, by J. H. Elliott (Penguin, 2002), 2nd ed., Kindle Loc. 4988-5028:

The imperialism of Philip II’s reign had been based on a Spanish-Atlantic economy, in that it was financed out of the resources of America and of a Castile which itself received regular injections of silver from the silver-mines of the New World. During the last decade of the sixteenth century American silver was still reaching Spain in very large quantities, and the port of Seville had an undeniable air of prosperity; but the comforting appearances masked the beginning of a radical change in the structure of the entire Spanish-Atlantic system.

This change was, in part, a direct result of Spain’s war with the Protestant powers of the north. In the first two decades after the outbreak of the Netherlands revolt, the Dutch had continued to trade with the Iberian peninsula. Spain was dependent on northern and eastern Europe for its supplies of grain, timber, and naval stores, a large proportion of which were transported in Dutch vessels. Irked by Spain’s continuing dependence on the Dutch, and anxious to strike a blow at the Dutch economy, Philip II placed an embargo on Dutch ships in Spanish and Portuguese ports in 1585, and again in 1595. The Dutch appreciated as well as Philip II that any interference with their peninsular trade threatened them with disaster. They needed Spanish silver and colonial produce, just as they also needed the salt of Setúbal for their herring industry. Faced with embargoes on their peninsular trade, they therefore reacted in the only possible way, by going direct to the producing areas for the goods they needed – to the Caribbean and Spanish America. From 1594 they were making regular voyages to the Caribbean; in 1599 they seized the salt island of Araya. This intrusion of the Dutch into the Caribbean disrupted the pearl fisheries of Santa Margarita and dislocated the system of maritime communications between Spain’s colonial possessions. For the first time, Spain found itself heavily on the defensive in the western hemisphere, its overseas monopoly threatened by increasingly audacious Dutch and English attacks.

The presence of northern interlopers in the American seas was a serious danger to the Spanish commercial system; but potentially even more serious was the simultaneous transformation in the character of the American economy. During the 1590s the boom conditions of the preceding decades came to an end. The principal reason for the change of economic climate is to be found in a demographic catastrophe. While the white and the mixed population of the New World had continued to grow, the Indian population of Mexico, scourged by terrible epidemics in 1545–6 and again in 1576–9, had shrunk from some 11,000,000 at the time of the conquest in 1519 to little more than 2,000,000 by the end of the century; and it is probable that a similar fate overtook the native population of Peru. The labour force on which the settlers depended was therefore dramatically reduced. In the absence of any significant technological advance, a contracting labour force meant a contracting economy. The great building projects were abruptly halted; it became increasingly difficult to find labour for the mines, especially as the negroes imported to replace the Indians proved to be vulnerable to the same diseases as those which had wiped out the native population; and the problem of feeding the cities could only be met by a drastic agrarian reorganization, which entailed the creation of vast latifundios where Indian labour could be more effectively exploited than in the dwindling Indian villages.

The century that followed the great Indian epidemic of 1576–9 has been called ‘New Spain’s century of depression’ – a century of economic contraction, during the course of which the New World closed in on itself. During this century it had less to offer Europe: less silver, as it became increasingly expensive to work the mines, and fewer opportunities for the emigrants – the 800 or more men and women who were still arriving in the 1590s in each flota from Seville. At the same time, it also came to require less of Europe – or at least of Spain. European luxury products found themselves competing with the products of the Far East carried to America in the Manila galleon. But much more serious from the point of view of Spain was the establishment in its American possessions of an economy dangerously similar to its own. Mexico had developed a coarse cloth industry, and Peru was now producing grain, wine, and oil. These were exactly the products which had bulked so large in the cargoes from Seville during the preceding decades. In fact, the staple Spanish exports to America were ceasing to be indispensable to the settlers, and in 1597 Spanish merchants found it impossible to dispose of all their goods: the American market, the source of Andalusia’s prosperity, was for the first time overstocked.

From the 1590s, therefore, the economies of Spain and of its American possessions began to move apart, while Dutch and English interlopers were squeezing themselves into a widening gap. It was true that Seville still retained its official monopoly of New World trade, and that Sevillan commerce with America reached an all-time record in 1608, to be followed by a further twelve years in which trade figures, while fluctuating, remained at a high level. But, as an index to national prosperity, the figures are deprived of much of their significance by the fact that the cargoes were increasingly of foreign provenance. The goods which Spain produced were not wanted by America; and the goods that America wanted were not produced by Spain.

Spanish Fears of Religious Encirclement, 1568–69

From Imperial Spain: 1469-1716, by J. H. Elliott (Penguin, 2002), 2nd ed., Kindle Loc. 4015-4044:

In the Netherlands, in France, the forces of international Protestantism were on the march. That it was an international conspiracy, Philip had no doubt, for each passing year showed more conclusively that the Dutch rebels were not alone. Behind them were the Huguenots, and the Breton seamen who were now waging war on Spanish shipping in the gulf of Gascony, and who were to cut Spain’s maritime communications with Flanders in the winter of 1568–9. Behind them, too, were English privateers like Sir John Hawkins, whose raid into the Spanish Caribbean in 1568 brought Spain and England a step nearer to open war.

Already by 1568 it was clear that the struggle was spreading – spreading in particular to the sea, where the Protestants were at their strongest and where Spain was still weak. The war between Spain and international Protestantism was essentially a naval war, fought in the Bay of Biscay, the English Channel, and even, increasingly, in the hitherto exclusive preserve of the Spanish Atlantic. Spain’s American possessions could no longer be regarded as safe. But for that matter it was questionable whether any part of the King’s dominions was now immune from attack. Indeed, Spain itself was threatened, both by pirate attacks on its coasts, and by armed incursions across its frontier with France.

The acute sensitivity of Philip to the dangers from heresy is suggested by his behaviour in the Principality of Catalonia. The Principality was undoubtedly one of the weaker sections of the Spanish bastions, both because of its exposed position on the French frontier, and because the extent of its privileges made it little amenable to royal control. It was well known that there were Huguenots among the bandit gangs that were constantly passing to and fro across the border, and there was every reason to suspect that heresy had found converts among that steady stream of Frenchmen which had for some years been crossing the Pyrenees into Catalonia in search of work. If heresy were to take root in Catalonia, the position would be extremely grave, since the Principality had all the makings of a second Netherlands: a strong tradition of independence, its own laws and privileges, and a hatred of Castile that was aćcentuated by linguistic and cultural differences. Consequently, as the pressure mounted against the Catalan frontier, the King’s fears grew. The viceroys were instructed to show the greatest vigilance in guarding the frontier, and in 1568 the situation appeared so alarming that severe new measures were decreed: a fresh prohibition on natives of the Crown of Aragon studying abroad; a harsher censorship in Catalonia; and a ban on all teaching by Frenchmen in Catalan schools. Then, in 1569, the Catalans refused to pay the new tax known as the excusado, which had just been authorized by Pius V. Convinced by their refusal that they were on the verge of going over to Protestantism, Philip ordered the Inquisition and the Viceroy to take action, and had the Diputats and a number of nobles arrested.

The King’s vigorous action against the Catalan authorities is an indication of his deep anxiety about the course of events. As he himself later realized, the action was unwarranted; there was no breath of heresy among the Catalan governing class. But the situation seemed sufficiently dangerous to make action essential. The Protestant peril was growing hourly, and it was growing at a moment when the danger from Islam seemed also to be mounting to a climax. For Catalonia was not the only region of Spain where revolt and heresy threatened. On Christmas night of that terrible year 1568 – the year of the danger in Catalonia, of the cutting of the sea-route through the Bay of Biscay, and of the arrest and death of Philip’s son and heir, Don Carlos, a band of Morisco outlaws lead by a certain Farax Abenfarax broke into the city of Granada, bringing with them the news that the Alpujarras had risen in revolt. Although the rebels failed to seize the city, their incursion signalized the outbreak of rebellion throughout the kingdom of Granada. Spain, which had surrounded itself with such strong defences against the advance of Protestantism, now found itself endangered from within; and the threat came not, as was expected, from the Protestants, but from its old enemies, the Moors.

Charles V, Holy Roman Spendthrift

From Imperial Spain: 1469-1716, by J. H. Elliott (Penguin, 2002), 2nd ed., Kindle Loc. 3427-3580:

From the moment of his Imperial election Charles V found himself saddled with enormous commitments. The struggle with France in the 1520s, the offensive and defensive operations against the Turks in the 1530s, and then, in the 1540s and 1550s, the hopeless task of quelling heresy and revolt in Germany, imposed a constant strain on the Imperial finances. Always desperately short of funds, Charles would turn from one of his dominions to another in the search for more money, and would negotiate on unfavourable terms with his German and Genoese bankers for loans to carry him over the moments of acute penury, at the expense of mortgaging more and more of his present and future sources of revenue. This hand-to-mouth existence had prompted, in the very first years of the reign, gloomy prophecies about the certainty of financial shipwreck, but, in fact, it was not until 1557, when Philip II had succeeded his father, that the expected bankruptcy materialized. Until then, Charles’s appeals to the generosity of his subjects and his constant recourse to loans from the bankers somehow managed to stave off the moment of disaster; but the price paid was a renunciation of any attempt to organize the Imperial finances on a rational basis and to plan a coherent economic programme for the various territories of the Empire.

The main cost of financing Charles’s imperialism was borne by different territories at different times, depending on their presumed fiscal capacity and on the facility with which money could be extracted from them. The territories concerned were primarily European, for the part played by the new American possessions in financing Habsburg policies during the first half of the sixteenth century was relatively very small. Until the 1550s the Crown’s revenues from America averaged only some 200,000–300,000 ducats a year, as compared with the 2,000,000 ducats a year of the later years of the reign of Philip II. This meant that the real entry of the New World into the Habsburg empire was delayed until the decade 1550–60, and that Charles V’s imperialism, unlike that of his son, was essentially a European-based imperialism. Among the European territories of Charles it was the Netherlands and Italy which bore the brunt of the Imperial expenditure during the first half of the reign. But as each in turn began to be squeezed dry Charles was compelled to look elsewhere for further sources of revenue, and by 1540 he was writing to his brother Ferdinand: ‘I cannot be sustained except by my kingdoms of Spain.’ Henceforth, the financial contributions of Spain – which meant essentially Castile – assumed a constantly increasing importance in relation to those of the Low Countries.

Within Spain there were several potential sources of revenue, both secular and ecclesiastical. The financial contribution of the Spanish Church to Habsburg imperialism in the sixteenth and seventeenth centuries still awaits an adequate study, but its importance would be difficult to overestimate. If the Lutheran princes of Europe were to gain great benefits from breaking with Rome and despoiling the Churches in their territories, the kings of Spain were to show that despoiling the Church was equally possible without going to the lengths of rupture with the Papacy, and that the long-term advantages of this method were at least as great, and probably greater. It was difficult for the Papacy to refuse new financial concessions when the, Faith was everywhere being endangered by the spread of heresy; and the Spanish Crown, by placing no restrictions on mortmain, could further the accumulation of property in the hands of the Church, where it was more readily available for taxation.

…

Charles V’s fantastically expensive foreign policies and his dependence on credit to finance them therefore had disastrous consequences for Castile. The country’s resources were mortgaged for an indefinite number of years ahead in order to meet the Emperor’s expenses, a large proportion of which had been incurred outside Spain. His reliance on credit contributed sharply to the prevailing inflationary trends. Above all, the lack of provision in the Crown’s financial policies – its inability to devise any coherent financial programme – meant that such resources as did exist were squandered, while the methods used to extract them might almost have been deliberately designed to stunt the economic growth of Castile. The reign of Charles V, in fact, saw three dangerous developments that were to be of incalculable importance for sixteenth- and seventeenth-century Spain. In the first place, it established the dominance of foreign bankers over the country’s sources of wealth. Secondly, it determined that Castile would bear the main weight of the fiscal burden within Spain. In the third place, it ensured that within Castile the brunt of the burden was borne by those classes which were least capable of bearing it.

Charles the Flemish King of Spain

From Imperial Spain: 1469-1716, by J. H. Elliott (Penguin, 2002), 2nd ed., Kindle Loc. 2489-2536:

The new King, a gawky, unprepossessing youth with an absurdly pronounced jaw, did not make a favourable impression on his first appearance in Spain. Apart from looking like an idiot, he suffered from the unforgivable defect of knowing no Castilian. In addition, he was totally ignorant of Spanish affairs, and was surrounded by an entourage of rapacious Flemings. It was natural to contrast him un-favourably with his brother Ferdinand, who enjoyed the supreme advantage of a Castilian upbringing – a background that seemed to Charles’s advisers to be so fraught with danger for the future that they shipped Ferdinand off to Flanders a few months after his brother’s arrival in Spain. His departure, which (as was intended) deprived the grandees of a potential figurehead and the populace of a symbol, merely increased the discontents of a disaffected nation.

The principal complaint of the Castilians was directed against the Flemings, who were alleged to be plundering the country so fortuitously inherited by their duke….

When the Cortes were held at Valladolid in January 1518 to swear allegiance to the new King and vote him a servicio, the procuradores seized the opportunity to protest against the exploitation of Castile by foreigners; and they found some outlet for their indignation in addressing Charles only as ‘su Alteza’, reserving the title of ‘Magestad’ exclusively for his mother, Juana….

News reached Charles as he was on the road to Barcelona at the end of January 1519 of the death of his grandfather Maximilian; five months later, after long intrigues and the expenditure of vast sums of money, he was elected Emperor in his grandfather’s place. Gattinara, a man whose broad imperial vision was inspired by a cosmopolitan background, an acquaintance with the political writings of Dante, and, most of all, by the humanist’s longings for a respublica christiana, showed himself fully prepared for the change. Charles was no longer to be styled ‘su Alteza’, but ‘S.C.C.R. Magestad’ (Sacra, Cesárea, Católica, Real Magestad). The Duke of Burgundy, King of Castile and León, King of Aragon and Count of Barcelona, had now added to his imposing list of titles the most impressive of all: Emperor-elect of the Holy Roman Empire.

Charles’s election as Emperor inevitably altered his relationship to his Spanish subjects. It did much to increase his prestige, opening up new and unexpected horizons, of which the Catalans – as a result of his residence among them at this moment – were probably the first to become aware. Charles himself was changing, and beginning at last to acquire a personality of his own; he seems to have established an easier relationship with his Catalan subjects than with the tightly suspicious Castilians; and Barcelona for a glorious six months revelled in its position as the capital of the Empire.

If a foreign ruler had obvious disadvantages, there might none the less be compensations, as yet barely glimpsed. It was the disadvantages, however, which most impressed the Castilians as Charles hurried back across Castile in January 1520 to embark for England and Germany. If the King of Castile were also to be Holy Roman Emperor, this was likely to lead to two serious consequences for Castile. It would involve long periods of royal absenteeism, and it would also involve a higher rate of taxation in order to finance the King’s increased expenditure. Already, at the news of Charles’s election, voices were raised in protest against his impending departure. The protests originated in the city of Toledo, which was to play the leading part in the troubles of the next two years, for reasons that are not yet fully clear. The city seems somehow to have exemplified, in heightened form, all the tensions and conflicts within Castile, offering an illuminating example of the constant interaction of local and national affairs.

The Financial Ascent of the Dutch VOC

From: The Ascent of Money: A Financial History of the World, by Niall Ferguson (Penguin, 2008), Kindle Loc. 1780-1831:

The campaign for a reform of what would now be called the VOC’s corporate governance duly bore fruit. In December 1622, when the Company’s charter was renewed, it was substantially modified. Directors would no longer be appointed for life but could serve for only three years at a time. The ‘chief participants’ (shareholders with as much equity as directors) were henceforth entitled to nominate ‘Nine Men’ from among themselves, whom the Seventeen Lords were obliged to consult on ‘great and important matters’, and who would be entitled to oversee the annual accounting of the six chambers and to nominate, jointly with the Seventeen Lords, future candidates for directorships. In addition, in March 1623, it was agreed that the Nine Men would be entitled to attend (but not to vote at) the meetings of the Seventeen Lords and to scrutinize the annual purchasing accounts. The chief participants were also empowered to appoint auditors (rekening-opnemers) to check the accounts submitted to the States-General. Shareholders were further mollified by the decision, in 1632, to set a standard 12.5 per cent dividend, twice the rate at which the Company was able to borrow money. The result of this policy was that virtually all of the Company’s net profits thereafter were distributed to the shareholders. Shareholders were also effectively guaranteed against dilution of their equity. Amazingly, the capital base remained essentially unchanged throughout the VOC’s existence. When capital expenditures were called for, the VOC raised money not by issuing new shares but by issuing debt in the form of bonds. Indeed, so good was the Company’s credit by the 1670s that it was able to act as an intermediary for a two-million-guilder loan by the States of Holland and Zeeland.

None of these arrangements would have been sustainable, of course, if the VOC had not become profitable in the mid seventeenth century. This was in substantial measure the achievement of Jan Pieterszoon Coen, a bellicose young man who had no illusions about the relationship between commerce and coercion. As Coen himself put it: ‘We cannot make war without trade, nor trade without war.’ He was ruthless in his treatment of competitors, executing British East India Company officials at Amboyna and effectively wiping out the indigenous Bandanese. A natural-born empire builder, Coen seized control of the small Javanese port of Jakarta in May 1619, renamed it Batavia and, aged just 30, duly became the first governor-general of the Dutch East Indies. He and his successor, Antonie van Diemen, systematically expanded Dutch power in the region, driving the British from the Banda Islands, the Spaniards from Ternate and Tidore, and the Portuguese from Malacca. By 1657 the Dutch controlled most of Ceylon (Sri Lanka); the following decade saw further expansion along the Malabar coast on the subcontinent and into the island of Celebes (Sulawesi). There were also thriving Dutch bases on the Coromandel coast. Fire-power and foreign trade sailed side by side on ships like the Batavia – a splendid replica of which can be seen today at Lelystad on the coast of Holland.

The commercial payoffs of this aggressive strategy were substantial. By the 1650s, the VOC had established an effective and highly lucrative monopoly on the export of cloves, mace and nutmeg (the production of pepper was too widely dispersed for it to be monopolized) and was becoming a major conduit for Indian textile exports from Coromandel. It was also acting as a hub for intra-Asian trade, exchanging Japanese silver and copper for Indian textiles and Chinese gold and silk. In turn, Indian textiles could be traded for pepper and spices from the Pacific islands, which could be used to purchase precious metals from the Middle East. Later, the Company provided financial services to other Europeans in Asia, not least Robert Clive, who transferred a large part of the fortune he had made from conquering Bengal back to London via Batavia and Amsterdam. As the world’s first big corporation, the VOC was able to combine economies of scale with reduced transaction costs and what economists call network externalities, the benefit of pooling information between multiple employees and agents. As was true of the English East India Company, the VOC’s biggest challenge was the principal-agent problem: the tendency of its men on the spot to trade on their own account, bungle transactions or simply defraud the company. This, however, was partially countered by an unusual compensation system, which linked remuneration to investments and sales, putting a priority on turnover rather than net profits. Business boomed. In the 1620s, fifty VOC ships had returned from Asia laden with goods; by the 1690s the number was 156. Between 1700 and 1750 the tonnage of Dutch shipping sailing back around the Cape doubled. As late as 1760 it was still roughly three times the amount of British shipping.

The economic and political ascent of the VOC can be traced in its share price. The Amsterdam stock market was certainly volatile, as investors reacted to rumours of war, peace and shipwrecks in a way vividly described by the Sephardic Jew Joseph Penso de la Vega in his aptly named book Confusión de Confusiones (1688). Yet the long-term trend was clearly upward for more than a century after the Company’s foundation. Between 1602 and 1733, VOC stock rose from par (100) to an all-time peak of 786, this despite the fact that from 1652 until the Glorious Revolution of 1688 the Company was being challenged by bellicose British competition. Such sustained capital appreciation, combined with the regular dividends and stable consumer prices, ensured that major shareholders like Dirck Bas became very wealthy indeed. As early as 1650, total dividend payments were already eight times the original investment, implying an annual rate of return of 27 per cent. The striking point, however, is that there was never such a thing as a Dutch East India Company bubble. Unlike the Dutch tulip futures bubble of 1636-7, the ascent of the VOC stock price was gradual, spread over more than a century, and, though its descent was more rapid, it still took more than sixty years to fall back down to 120 in December 1794. This rise and fall closely tracked the rise and fall of the Dutch Empire. The prices of shares in other monopoly trading companies, outwardly similar to the VOC, would behave very differently, soaring and slumping in the space of just a few months.

A Japanophile Dutch Banker’s Disillusionment, 1970s

From The Magatama Doodle: One Man’s Affair with Japan, 1950–2004, by Hans Brinckmann (Global Oriental, 2005), pp. 210-211:

My ‘Magatama Doodle’ metaphor was inspired by the whimsical linking of an observed physical habit (the doodling of comma-shapes on tabletops and chair arms) of certain functionaries, when confronted with a problem or pressed for an answer, to their assumed preference for evasion and procrastination. Japan’s leaders, I had always felt, were fully capable of taking decisions, and if they did not, that was because they chose not to.

I still believed this analysis to hold good for the corporate sector, but I no longer could credit the government and the bureaucracy with similar ability. After all, the cabinet members, from the prime minister on down, were beholden to their party colleagues waiting in the wings for their turn at government. And all politicians lived at the mercy of the business establishment, which financed their election campaigns. They were also constrained by the bureaucratic elite, which provided continuity and expertise for the government of the day. Some bureaucrats in turn were rumoured to be supplementing their income with donations from the major corporations, to whom they also looked for their eventual amakudari on their retirement from the civil service in their early fifties. Few senior civil servants could afford to retire at that age, so they were all interested in a second career as adviser or senior director at a major bank or corporation. The result of these cosy relationships was a woeful lack of discretionary power on the political level, and even a prime minister travelling overseas had to weigh every word and frequently backtrack on his public statements in the face of opposition at home.

I could now see that it was the stasis in Japan’s body politic that had bedevilled its relations with other countries, most of all the US, for decades. Earlier on I had, like probably almost every Japanese, habitually blamed the periodic strains in Japan-US ties largely on American impatience or intransigence. American leaders and negotiators, I was convinced, did not understand Japan, and their patronizing attitude only managed to infuriate their Japanese counterparts and thus stall progress in the talks. But without exculpating pushy American negotiators altogether I had come to suspect that the cause of the recurring tensions, especially in matters of trade and investment, lay mostly with the Japanese.

Through my Investment Committee at the American Chamber of Commerce and other sources I had heard stories about the ‘impossibility’ of dealing with Japanese negotiators on issues such as regulating the flow of car exports and improving access to Japan’s still heavily protected consumer market. The negotiators had no mandate and had to refer to Tokyo on every detail without in the end coming up with any kind of helpful response or compromise. The US side would be kept waiting interminably while their counterparts tried to placate them with pleas for understanding Japan’s slow-moving consensus system and promises of an eventual satisfactory outcome. More often than not, no such outcome ensued, and the Americans either had to back off with gritted teeth or threaten unilateral action to force an agreement. On several occasions the US Congress stepped in with mandated sanctions when negotiations stalled, to the consternation of the Japanese, whose own parliament had no such power.

All this would not have been so bad if the Japanese had put their cards on the table. But they seldom did. To the home audience they usually played the victim card, blaming the heavy-handed Americans for bullying them into concessions, and asking the public to accept these ‘sacrifices’ in the interest of preserving good relations with the American ally. In this way they not only shifted the blame for any unwelcome outcome to the Americans, but they also obfuscated the system’s structural inability to produce effective and timely decisions, actually turning this shortcoming into an advantage.

A Japan-trained Dutch Banker’s Impressions of Chicago, 1968

From The Magatama Doodle: One Man’s Affair with Japan, 1950–2004, by Hans Brinckmann (Global Oriental, 2005), pp. 184-185:

Seven years earlier, our first US visit was no confrontation. We were wide-eyed tourists then, basking in America’s sun and easy smiles without care or consequence. Even our brief stay in Illinois in 1965, a year after my bank’s takeover by the Chicago bank, was little more than a courtesy call made out of our safe and trusted Japanese home base.

But this time it was different. This protracted stay was intended to be confrontational. There were wise men in the head office suspecting their ‘man in Tokyo’ of alien sympathies. They were right, twice over.

First, there was my typical European prejudice against the might and swagger of America, its superficial, money-based way of life, its waste and hyperbole, even that questionable concept – the ‘pursuit of happiness’. This spoon-fed mindset was overlain by a less expressible, more internalized reserve about the United States, Japan-grown and stubborn. It was directed at the American mentality, the casual arrogance that is the birthright of the strong. It was a silent protest against the overweening, patronizing manners of so many Americans towards anyone and anything foreign, and especially Asian. Above all, it was a deep-seated resistance against the immodest American approach to life itself, its aggressive ‘conflict model’, its blatant emotionalism and lack of restraint, its materialism and physicality and holier-than-thou Christian orthodoxy.

Thus I arrived in Chicago heavily burdened with opinion but also willing to change my views ‘in the light of new experience’. Well, experience is what we got. From the first day I had to place my mental constructs on the back-burner. Actual, visceral life, took precedence. The accommodation the bank had arranged for us, a small, furnished apartment in Old Town, turned out to be an address of ill repute, teeming with prostitutes. Within our stingy rent allowance we found a better place, near the Ambassador East Hotel, with mostly decent tenants. But we had to decide how to deal with the neighbours across the hall, a friendly well-groomed woman with an attractive grown-up daughter for whom – Toyoko had to conclude to her astonishment – she was acting as a ‘discreet’ pimp.

The confrontation with American reality brought home to me the vast cultural gap that separated that society from the Japanese – and the Dutch. But the comparison was not necessarily negative. The office, for instance, far from being a nasty environment steeped in power-crazy adrenaline, was more like a large living-room filled with people exchanging easy banter while glancing at a document or two, or discussing golf scores with a customer on the phone. The informality was deceptive. While telling jokes or kidding around these well-educated bankers kept a beady eye on the boss’s door, to see who would go in next or to wait for an opportunity to slip in with a ‘hot deal’. I was amazed to see that in spite of their relaxed style of communication they did get their job done.

The looser structure was an immense relief from the tensions and social rules of Japan. What is more I soon discovered that the much-maligned ‘shallowness’ of American social relations was actually more like an open, unprejudiced kind of hospitality which we tight-arsed Europeans and fastidious Japanese would do well to try and emulate, to our benefit. Americans, I found, opened their doors first and then sorted out what they had let in. Europeans and Japanese, distrusting spontaneity, were forever trying to determine the suitability of others before deciding whether they wanted to get acquainted.

My lifelong latent resistance against America’s ways had collapsed inside a week. Not on fundamentals, but – let us say – on the attractions of their lifestyle. These Americans lived their lives instead of fretting about them. They had no time for wrenching soul searching or weighing up the relative merits of their civilization. They were victors, and victors are free of doubt.

Vietnam was supposed to have changed all this. But not here, not yet, in this heartland of assured capitalism, where seating a single black graduate from Northwestern University on my bank’s carpeted ‘platform’ for all to see, was deemed to constitute an adequate gesture to the irksome demands of the Civil Rights movement. The headlines of the Chicago Tribune copies scattered about the desks might be screaming indignantly about the seizure of the US Navy ship Pueblo by the North Koreans or about the Communist Tet offensive just launched by the Viet Cong, but loan requests had to be processed and the 17.37 back home to the comforts of Winnetka had to be caught.

The self-assuredness was astounding. Laced as it was with magnanimity and the decency of family concerns it was a far cry from the imperial hauteur of the British and French or the self-conscious pride of the Japanese. But it was daunting nonetheless. Paraded around Chicago as ‘our man in Japan’ I had to make frequent appearances at meetings, both inside the bank and on calls to important corporate customers, to shed light on the mystery that was Japan. I was expected to explain the peculiarities of the market and dispense hot tips on how to breach its protectionist shell.

My audience was eloquent, courteous and sceptical.

Wordcatcher Tales: Frikadel, Shippoku-dai, Zhuofu

From Edo Culture: Daily Life and Diversions in Urban Japan, 1600–1868, by Nishiyama Matsunosuke, trans. and ed. by Gerald Groemer (U. Hawai‘i Press, 1997), p. 146:

During the early years of the Edo period, Japan engaged in much trade with East Asian countries. As a result, a remarkable amount of foreign cuisine was imported. Unusual ingredients, previously seen but rarely in Japan, were introduced. Their use was at first limited to social or ceremonial events and special banquets, but in time they were consumed by a broad range of the population.

A number of new foods are recorded in contemporary writings: red-and-white hanpen (a cake of pounded fish); yaki-dōfu (broiled bean curd); sarasa-jiru (a soup made with fresh chrysanthemums); a Javanese dish called gōren (“goreng“) made with fried fish; and furugasuteru (“frikadel“), a dish apparently of Dutch provenance in which beef and cabbage were finely minced, combined with egg, seasoned with wine, covered with bread crumbs, and fried.

The spread of such cuisine brings to mind my own experiences as a child. My hometown was in the Kansai area, in a rural area around the city of Akō in Harima. Things may have changed now, but in my childhood we called a dining table a shippoku-dai. Usually everyone ate from individual boxlike trays, but local tradition required the use of a shippoku-dai when guests arrived. The word shippoku, which originates from the Chinese word zhuofu (tablecloth [桌布]), denotes a Chinese-style dining table. But what we called shippoku-dai was a purely Japanese-style table with no hint of Chinese influence. Shippoku cuisine, a Japanese version of Chinese food, is today a specialty of Nagasaki; this cuisine and the shippoku-dai were probably transmitted to Japan in much the same manner. Although shippoku cuisine did not spread to the rural areas, the shippoku-dai, by contrast, spread to every nook and cranny of the Japanese countryside. Many people of the Kansai area must have fond recollections of this kind of table.

Edo-period Sinophilia & Hollandophilia

From Edo Culture: Daily Life and Diversions in Urban Japan, 1600–1868, by Nishiyama Matsunosuke, trans. and ed. by Gerald Groemer (U. Hawai‘i Press, 1997), pp. 13-14:

There is yet another reason why Edo-period culture has not been properly appreciated: the influence of Chinese culture has not yet been properly understood. During the Edo period Chinese culture was highly venerated. Its deep and lasting influence was important, not just for Japanese Confucianism and Confucian scholarship, but for a whole range of other pursuits as well. The effect of Chinese poetry and literature, or of Ming and Qing dynasty art and scholarship, can hardly be overestimated. For example, the book Tianxia yitong zhi (Records of All the World) greatly influenced the fudoki (gazetteers) produced throughout Japan. This volume was published as Dai Min ittō-shi (Records of the Ming Dynasty) at the beginning of the Genroku era (1688–1704) by a warrior from the Wakayama domain. Similarly, the volumes Gai yu congkao (Gaiyō sōkō in Japanese) by ZhaoYi (1727–1814) were also profoundly influential. The respect for things Chinese lasted until the Sino-Japanese War (1894–1895), but thereafter the fact that Chinese culture had once been of great importance faded from memory.

Similarly, “Dutch learning” (that is, Western learning, rangaku) was also highly important during the Edo period. Over one hundred times throughout the Edo period, the chief of the Dutch settlement at Dejima in Nagasaki came to Edo to receive an audience and present gifts to the shogun. For some twenty or thirty days during the spring, the chief and his retinue stayed at the Nagasaki-ya, a lodge at Hongoku-chō. From around the middle of the Edo period, a number of cultured individuals made use of these few weeks to engage in unfettered cultural exchange widi the Dutch. Japanese were strictly forbidden to enter the Dutch outpost of Dejima in Nagasaki, but within Edo much free activity was possible. After the Meiji Restoration, however, the diplomatic relations maintained by the Tokugawa bakufu with the Dutch were overshadowed by the Meiji government’s policy of strengthening ties with England, France, Germany, and the United States. In turn, much that concerned rangaku was forgotten. Although cultural exchange with the Dutch was once of great significance, its conditions and historical role have only recently begun to receive scholarly attention. Such examples show that Edo-period culture demands reevaluation. The type of historical perspective suggested here should begin to make a correct appraisal possible.

“Indische” Indos and Theosophists in the Dutch East Indies

From: Being “Dutch” in the Indies: A History of Creolisation and Empire, 1500–1920, by Ulbe Bosma and Remco Raben, tr. by Wendie Shaffer (National U. Singapore Press, 2008), pp. 293-297:

The 20th century arrived in the Dutch East Indies accompanied by a chorus bewailing the growing number of children who had concubines as mothers. The prevailing tone was that many of these children did not merit the status of European. A commonly heard anecdote was that of the down-and-out soldier who, in exchange for a bottle of Dutch gin, acknowledged that he was the legitimate father of a child who had not a drop of Dutch blood. The newspaper Java-Bode reported the growing number of “degenerate Indos and complete hybrids” who were in fact natives but were entitled to call themselves European: “Without a doubt, such people must feel deeply dissatisfied with their lot.” These gloomy musings were, however, seldom based on more than anecdotal accounts and were certainly not founded upon systematic research. It was nothing new to hear of “immoral” goings-on in the army barracks, while concubinage and large families of pauperised (Indo-)Europeans were a familiar phenomenon. What was new were the growing complaints about the situation and the sombreness of their tone. Such attitudes became widespread at the end of the 19th century, when interest grew in matters such as genetic inheritance, Malthusian ideas about population control and the theme of ennobling the lower classes.

The fin de siècle Zeitgeist encouraged the notion of a moral decline of European society in the Indies. Colonial policy in the Indies had always tried to draw a clear distinction between European society and the natives. Until the close of the 19th century the emphasis had continually lain on reclaiming the stray sheep of the European flock and returning them to the fold of European culture and values. Bur now the idea arose that it might be better for them to remain in their native environment. This notion, born largely out of discussions on inheritance, race and degeneration, now buzzed on every side. The Java-Bode, which represented the conservative opinions of the more wealthy Batavian civil servants, used the word “hybrid” to highlight the problematic aspects of racial mixing. Understandably, this newspaper did not dispute the fact that there were large numbers of decent Indo-European families bringing up their children in a correct and seemly manner. But once the journalists got the bit between their teeth, they became carried away by polemics regarding degeneracy and childhood neglect. It only needed a tiny slip of the pen before they were fulminating about the stereotypical Indische family where the eternal ne’er-do-wells lazed around and never lifted a finger, convinced as they were from birth that to do manual work would debase them forever.

This caricature was not something new. A hundred years earlier, at the beginning of the 19th century, newcomers to the East Indies had written with shocked amazement about the lack of parental care, about the frequent beatings that children received, and about how their mothers carried on their peddling trades and spent their time playing cards instead of looking after their children. Around 1900 such commentaries became imbued with pseudo-scientific arguments on the topic of racial inferiority. Articles and reviews with scientific pretensions were published claiming to substantiate the stereotypical pictures of Indo-Europeans as people who were underhand, easily suspicious and quickly roused to anger. The widely held opinion in British colonies that when European populations became mixed with a native race they dissolved into native society also crept insidiously into Dutch (Indies) publications. Some suggested that several generations of mixed marriage resulted in infertility — although such an opinion would appear to be firmly disproved by the many large and flourishing Indo-European families. However, a conservative newspaper like Java-Bode could not be shaken from its conviction that social improvement — with all its biological connotations of crop or cattle improvement — was the same thing as opposing mixed marriages. In the Netherlands, newspapers were quite unabashed in stating that pauperism was the result of racial mixing. The word volbloed (pure-blood) began to appear in advertisements for domestic staff and personnel. Cynical remarks were heard to the effect that the elite corps of the Binnenlands Bestuur [Dept. of the Interior], in Dutch keurkorps, was turning into a coloured corps, Dutch kleurkorps. In short, with the arrival of the 20th century, the colonial discourse became strongly racialised.

It is tempting to think — although inaccurately — that Darwinism, then a fashionable ideology, was responsible for this racist thinking. Social Darwinism was widely accepted in Europe, but in the Indies it was the Spencerian theory of evolution that predominated. Herbert Spencer saw human ability as the product of social evolution, and not of biological selection. It proved a difficult task, however, to distinguish between inherited propensities and the effects of upbringing. The journalist Paul Daum, for instance, was a fervent Spencerian, yet in his novel published in 1890, titled “Ups” en “downs” in het Indische leven (“Ups” and “Downs” of Indische Life) — which recounts the downfall of the aristocratic planters’ family the Hoflands — he invokes heredity as a major element in the family’s decline. In his journalistic writing, however, he pleaded the cause of education as the driving force behind social advancement and the best possible cure for the ills assailing the European community in the Indies. City gardens, public parks, theatrical performances and concerts were surely more attractive ways of passing the time than cockfighting, tandakken (Javanese dancing) or Javanese wayang puppet theatres. Cultural paternalism of this nature encountered little opposition; indeed, it was applauded by the newspaper De Telefoon, which wrote in this context of “the improvement of destitute Europeans”.

All the complaints about the effects of mixing and the negative influences of an Indische lifestyle might almost make one forget that ever-growing numbers of Europeans in the Indies were now speaking Dutch, reading the paper, and writing letters to the editor on touchy topics. It was a recent development, for until well into the 19th century — even in wealthy families in the Indies — the lingua franca was not necessarily Dutch, but Malay. This appears, for instance, from a complaint made in 1887 by the education inspector about the poor level of Dutch among students at the HBS School, which was intended for children from the better circles. It was only in the closing years of the 19th century that Dutch began to be more widely used among Europeans. It first became the standard language at work and then moved into informal areas. In contrast to the much-quoted opinion of the education inspectors that in 1900 the majority of Indies-born European children at elementary school had a very poor command of Dutch, we find that at that time already 40 per cent of Europeans used Dutch in their everyday affairs.

The early 20th century also witnessed an alternative wave against the assumption that “Indische” meant “inferior”. While the terms “hybridity” and “Indische” when used in the colonial context both had negative overtones, the cultural avant-garde in the Netherlands and elsewhere in the Western world embraced the exotic. The artistic style of Jugendstil (art nouveau) made use of exotic shapes and designs. The artist Jan Toorop, born in Java in 1858, who was greatly celebrated in the Netherlands, exploited heavy symbolism borrowed from Javanese art and even transported this into his painted posters advertising salad dressing. For the colonial newcomers, belief in animism was superstitious, possibly even dangerous, nonsense, but in the Netherlands it was all the fashion to hold séances and make contact with the spirits of the dead. What might be described as an organic way of thinking, most powerfully expressed through the eclectic and unrestrained images of Jugendstil, flourished among the elite of the Netherlands. The urge to reconcile opposites also reached the colonies and was to have an influential role in the rejection of conventional European tastes and values One manifestation was the growth of the Theosophical Society (founded in 1875) which acquired a considerable following in the first decades ot the 20th century. Before this, the Freemasons had been the chief instigators of dialogue between the various cultures and faiths in the colony. In about 1908 the Theosophists took over. In the Indies their champion was Dirk van Hinloopen Labberton, who taught Javanese at the training institute for the Binnenlands Bestuur in Batavia, the Willem III School. This eloquent, indeed loquacious, man was inspired by the great British Theosophist Annie Besant (1847–1938), who had left England for British India in 1893, declared the Indians to be her brothers and sisters, and become a tireless advocate of home rule for India. Theosophy also appealed to nationalist intellectuals in the East Indies, who applauded its approach of an Eastern counter-current against the materialism of the West.

Thus the world of the East Indies became aware of two contrasting, indeed opposing, voices. Since the rise of the Soeria Soemirat movement, the Indo-Europeans had spoken out as a separate group, although their plea was to be accepted as Europeans. In contrast, the notion ot an Indische domain as a space where European and Asian cultural influences were equally valid steadily gained ground. The politically tense period linked with the growth of nationalism served to reveal the tensions between the concept of “Indo-Europeans” — people who constituted a category of class and race within the wider group of “Europeans — and “Indische”, a term that could be applied to everything connected with the Dutch East Indies. On the one hand, the expression “Indo-European (or Indo) was used to apply to Europeans who had a part-Asian ancestry as opposed to pure-blood white. At the same time, the word Indische was used in contrast to Hollands (Netherlandish) but never to demarcate Europeans from Indonesian, Chinese or other population groups living in the East Indies. The “closed” character of the term “Indo-European” and its opposite, the boundless connotations of the word “Indische”, have dominated the political evolution of the Indies. During those years of budding nationalism the political pendulum swung continually between the struggle to establish a movement representing the more general Indische interests, and a Union of Indo-Europeans. Two Dutch words crystallised the differences: beweging (movement) stood for new and open, while bond (union) implied the formation of a group to defend one’s own interests. Everything born out of the Indische movement was to be absorbed almost unnoticed into Indonesian nationalism, while the notion of a union or brotherhood gained definitive form in 1919 in the Indo-Europeesch Verbond (IEV) — the Indo-European Union.

This final excerpt from this book touches on most of the major themes raised in this fascinating look at the history of the Dutch and their local allies in their East Indian colonies.