The French Company of the Eastern Indies
With the initiative of Colbert under Louis XIV, the French Company of the Eastern Indies is born with
a capital of 8,8 million Pounds.
- Creation in 1664
- Foundation of Lorient in 1666
- Surate becomes the principal center of the French trade in India in 1667
- Foundation of Pondichery by François Martin in 1674
- Reorganization after the death of Colbert (1683) in 1685
- End of the monopoly in 1698
- the Company is ruined in 1708
- Creation of the Company of the Eastern Indies of Saint-Malo with
obligation to discharge the goods in Lorient and to pay 10% taxes there.
- Creation of the perpetual Company of the Indies by associating the company
from Saint-Malo and the Western Company in 1719
- New reorganization in 1721
- Following the war of Septs Years, still a reorganization in 1764
- End of the company and its monopoly in 1790
The Company was created to limit the capital flight due to the trade of spices and fabrics
that other European countries had already started . It had a monopoly on the trade but also on
the territories themselves.
To encourage the sailors who embarked for the Indies, the Company had recourse to the " port-licences "
( stocks options before the hour) which made it possible to take part in the commercial deals. There was an illegal method
called " pacotille " which consisted in clandestinely embarking goods for their own account.
The company maintained the diplomatic relations with the local indian sovereigns . It had an army
to protect its cargoes and justice administered on its territory, on the subjects as well European as local.
The county-town of the trading-posts located in INDIA is Pondichery created in 1673. On the spot, French used
the locals under the authority of the Broker, most known being Ananda Ranga Pillai under the direction
of Dupleix (Governor between 1741-1754).