History of Amsterdam (part 3)Seven provincesA definite break-up of the Netherlands came in 1579, with positive consequenses for Amsterdam. The provinces clustered in two "Unions", of Utrecht and Atrecht. The seven provinces in the Union of Utrecht continued the war with Spain until 1648 when the peace-treaty "Peace of Munster" was signed. This ended the eighty years war.The seven provinces - the basis for the modern Netherlands - were known as "the Republic". Together they formed a loose state. William of Orange was given the title of "Stadhouder". In broad terms this made him a semi-hereditary president/commander-in-chief, with wide powers in time of war but subject to a mass of checks and balances in peace time (a construction, reflecting the Dutch relish for compromise and consensus). The Dutch Republic was neither a democracy as we know it, nor the sort of absolute monarchy which reigned in most neighboring countries. Rights and privileges awarded to the city in the middle ages, added to a flair for wheeling and dealing in business and ensured a degree of freedom and tolerance. AdventurersMerchant adventurers from Amsterdam sailed the seas to the far-off Indies or "spice-islands" (today Indonesia). Big risks brought bigger rewards. Soon a process had been launched that would boom into the "Golden Age".Towards the end of the 15th century, the great maritime powers of Portugal and Spain undertook epic voyages of discovery to the Americas and the Indies. Holland soon became involved in trading exotic imports from these regions, initially by collection cargoes in Lisbon for sale and distribution to wider markets. The situation changed in 1580 when Spain annexed Portugal. The northern Netherlanders now had to make the trip to the Indies themselves. Meanwhile many rich merchants from the southern Netherlands had moved to Amsterdam after Antwerp fell to the Spanish. Their arrival gave the city's business community an extra boost. Among the new arrivals were Portuguese jews. They had fled their home country for Antwerp and now were refugees once again. Economic successThe very firs trading voyage to the Indies from Amsterdam were a phenomenal success, yielding shareholders an awesome 400% profit. Anxious to share these riches, ships were dispatched prom every port in the country. In 1609 all these fragmented efforts were clustered in the Dutch East Indies Company. Amsterdam provided more than half the capital. Other investors included ordinary people, alongside the wealthy merchant classes. Amsterdam was prevented from having half the seats on the board, for fear of over-domination. All the sam, the city was still a powerful force within the organization.
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