Despite the royal charter allowing trade, England still found itself plagued by foreign ships in her own waters. The Dutch, having the most powerful navy of the time, had harassed British ships for decades by disrupting trade and were generally considered to be the leading European trading power. Control of Europe’s waters meant control of the bountiful trade routes that passed through them and this had been a priority for Cromwell as well as Charles II. Cromwell had begun to expand Britain’s navy in hopes of better protecting Britain’s overseas colonies in the middle of the century, tightening up it’s ranks and building purpose-made warships that could hold their own against other European countries. The Dutch had actually started selling off their well-armed navy after the grueling wars against the Spanish Habsburgs on the European mainland had vastly reduced their funds. More importantly, the introduction of a series of Trade & Navigation Acts between 1651 and 1696 made it increasingly difficult for European countries to bypass Britain and her taxes on the way to the colonised lands of the New World. Strict “English Only” rules were imposed on any ships trading with British colonies meaning that the ship’s owners, over three quarters of a ship’s crew, and even the ships themselves had to be made in England. The introduction, but more importantly the strict enforcement of these laws heralded the beginning of the British Empire’s power monopoly as well as providing a key source of revenue. No one could do business with Britain or her expanding colonies without bureaucratic approval or the necessary bonds, both of which would cost you.
These Navigation Acts unsurprisingly did not sit well with the Dutch Republic but faced with an increasingly powerful British navy and a succession of revolts by their Spanish subjects, their trading powers began to dwindle. Over a series of three Anglo-Dutch wars from 1652-1674, the British defeated the Dutch republic and captured important new-world colonies like New Amsterdam, better known by its British name of New York.
Bolstered by the notion of commonwealth introduced in the first half of the century and this increasing power over other European countries, Britain’s national conscience in the years following the restoration in 1660 had become more orientated toward a sense of national wealth and colonial commerce. With this came an increased demand for the riches of Britain’s colonies, for which manpower was needed. Colston family friend Prince Rupert’s newly discovered trade links in the Gambia had yielded not just gold and ivory, but cheap manpower too and with the Dutch defeated at sea, the path for exploiting this new trade was wide open.
However, the Company of Royal Adventurers was not always a success. It’s failings and accrued debts eventually led to its absorption into the newly chartered Royal Africa Company in 1672. That year also saw royal finances in such a dire condition that Charles II halted all repayments of crown owed-debt, leaving many London bankers who had sunk their money into Royally-backed companies destitute. With the RAC looking for new funding outside of the crown, the reliance fell heavily on private investors, not just for cash but for direction. In 1672 buying £400 worth of shares in the RAC could mean your appointment as a “company assistant” and while sounding meagre, these assistants were in effect company executives. They sat on boards to decide how the company was run, what it traded and how much it would pay for goods. The ruinous events of 1672 removed many of these assistants as their fortunes disappeared over night, whisked away into the bowels of crown debt never to be repaid. This opened up new opportunities for assistants wanting to gain more sway within the company or new investors altogether (perhaps from the recently failed Company of Royal Adventurers) as more shares became available and new directions were set. The year of 1672 saw the RAC granted a legal monopoly on specifically the West African slave trade with executive powers being granted to ensure its security.
By this time the Colston family, being traditionally royalist, had been trading with the RAC for some time and been fortunate enough to not lose any fortunes in their vested royal interests. This was a time before banking and most scrupulous merchants would be investing their fortunes themselves. Edward’s father had been selling goods to the RAC for profit, recorded in 1674 as earning £3,000 for the sale of cloth to be used in the purchase of enslaved Africans. His brother Thomas as previously mentioned sold glass beads to the RAC, beads that were only used in the purchase of Africans. In the late 1670’s Edward himself is reported to have sold in excess of £60,000 worth of textiles requested by West African tribes to the RAC, for the procurement of human slaves. At the “conventional price” in the 1670’s of £3 a slave, that is enough to promote the removal of over 20,000 Africans from their homeland. This large-scale dealing was a normality for Edward Colston, who by the 1680’s had been elected to Bristol’s Society of Merchant Venturers himself after his father’s passing in 1681. At that time he is described as a “mere merchant”, a term that held the opposite connotation of today, being employed for “large-scale dealers in overseas commerce”. The scale of his operations and fortunes only increased after his father’s death, with he and his brother receiving 40 ships as well as large estates in his will. The sudden illness and subsequent death of his brother Thomas left Edward as the sole male heir to the Colston fortune and he soon put it to work. In the 1680s he sat as a shareholding assistant on the company’s committee for shipping, encouraging the renting of ships by the RAC rather than outright procurement. As the new owner of a 40-strong fleet, this proved incredibly profitable for Colston. Freight charges alone could amass over £1,000 per ship, with a live slave fetching £5 at the end of the voyage. The only limit to your ambition as a merchant in slaves was how many of them you were willing to cram into the hull of a ship. It led to horrifically cramped conditions with any slaves that died, or suffered injuries being cast overboard into the churning waves of the Atlantic ocean, worthless to merchants like Edward Colston.
By the 1680’s the Royal Africa Company had ceased to be Royal in all but name. While senior positions were held by royals, the running of the company fell to the businessmen such as Colston. With limited interference from the crown it had become a vehicle for the company’s assistants to enrich themselves by introducing restrictions on trade and concocting levies that filled their pockets and consolidated their power. In 1675, only 7% of the RACs investors held over £1,000 worth of the 200 available stock options each. At £100 a share (equivalent to £11,445 in 2017) this was a sizable amount of control by a small number of influencers. By 1688 this had been consolidated into upwards of £2,000 worth of shares (£100 = $12,000 by 1690), each held by just 2% of shareholders. This level of business-savvy – or machiavellian approach to business depending on how you see it – is not something we associate with people of the 1600’s, instead this is the type of thinking only modern companies and their employees can partake in. In reality vast sums of money were changing hands all the time and those that found themselves in positions of power generally tried to enrich themselves while they were there. The table below goes some way to showing how much money was flowing through London at this time, with less than 1% of merchants trading over £217,000 worth of goods. In today’s money this equates to nearly £25 million.
The likelihood is that these high value trade items were black Africans, especially as they were traded with the plantations of the West Indies. The monetary figures in that table represent just a fraction of the 74,085 human lives documented as tradable commodities by the RAC, earmarked for the West Indies. As Britain expanded her colonies, the demand for slaves needed increased and with this so did the fortunes of those involved. But with the financially liberating laws following the civil war being overturned after the restoration of king Charles II, these wealthy merchants needed a new way to protect their wealth from royal taxes and other leeches.
The plucky British victories in the Anglo-Dutch wars had proven Britain the ruler of the waves and opened up new colonies and supply lines. But while the British had defeated the Dutch at sea, they were still lacking their financial clout and intuition. Britain had been trying to get ahead of the money game for some time with the advanced workings of Italian accountants pulling the country forward, Lombardy Street being so named as it was the center of Italian financial business in London. However the swing towards nationalism and jingoism brought on by the Navigation Acts caused many to start viewing anyone other than Englishmen with suspicion. By this time Charles II had passed away, leaving his brother James II to rule. The new King was an outspoken Catholic unlike his predecessor and this had caused some consternation among Parliament. A series of unwise decisions by James II; the forced implementation of religious decrees and the prosecution of Anglican leaders, led to a rise in public unrest. This unrest meant the crown were unwilling to grant parliament any new powers, especially concerning money. This meant that English merchants had to look elsewhere for support in order to build themselves into a financial power. Even looking towards a not-so-distant enemy.
The Dutch were well-known for their financial system. Market-orientated and stable, it was a good starting point for the British merchants who wanted to base their new system around their increasing colonial trade. So, in the mid 1680’s a group of City of London merchants began to draw up a set of demands and decrees that would govern the financial state of Britain as they saw fit. However with the Catholic James II unlikely to give parliament any concessions, the merchants needed a new monarch to approach.
William of Orange, a protestant married to James II’s own daughter, had recently become stadtholder of the Dutch republic and had been in secret contact with the City of London for some time. He was well aware of the growing discontent in Britain towards James IIs overly religious method of ruling and as a prodestant, stood in direct opposition to the increasingly forceful Catholic crown. In 1687 he penned an open letter to the British people urging against the increasingly Catholic rule of James II. Judging the public’s reaction, the merchants called for William to invade Britain along with his wife Mary and in 1688, they did just that. James II, after a series of bumbling battles vacated the British throne, leaving it open for the reign of William and Mary.
But before they were jointly crowned, they first were presented with the Bill of Rights, which included the Declaration of Right that severely limited the powers of the crown while protecting the new “companies” being formed by leading merchants. This all important document that the City of London had been draughting would pave the way for joint stock companies and lead Britain into the future.