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Speaker 1: Welcome to Stuff You Missed in History Class from how

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Speaker 1: Stuff Works dot com. Hello and welcome to the podcast.

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Speaker 1: I'm editor Candid Keener, joined by staff writer jam Graph.

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Speaker 1: Hello Candice, I have a new last name, yes, but

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Speaker 1: the content is all the same on the inside, Sarah,

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Speaker 1: don't you're a different person to me. I'm smiling a

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Speaker 1: lot more. Have a wonderful, heavy but same same history

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Speaker 1: buff as always, and today we actually have a very

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Speaker 1: seemingly dry but quite juicy topic for you guys. That's right.

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Speaker 1: Today we're talking about the East India Company, and we

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Speaker 1: should clarify that there are actually a couple of East

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Speaker 1: India companies and when people, when historians talk about the

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Speaker 1: East India Company, they usually refer to the British, which

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Speaker 1: is what we're gonna focus on. But we're gonna we're

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Speaker 1: gonna talk about the other ones as well. Yeah. So

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Speaker 1: if you like t and you love opium, this is

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Speaker 1: the episode for you. Yeah. I think you can see

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Speaker 1: that for sure. To give you some background, Uh, what's

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Speaker 1: really important is that a back back, a few years

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Speaker 1: after Columbus discovered the America's the Portuguese explorer Vasco da

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Speaker 1: Gama actually discovered a water route to the East Indies

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Speaker 1: on the other side of the world. So this made

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Speaker 1: it so much easier to travel. It's faster to travel

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Speaker 1: to the East Indies, which had so much, so many

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Speaker 1: commodities that Europe was after, especially spices, and we ever

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Speaker 1: had British food. I mean, it's not it's not. It's

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Speaker 1: pretty blandish, listener, but that's exactly why Europe was so

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Speaker 1: so after the East India Indies. It was it had

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Speaker 1: so many good spices, and we all know how good

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Speaker 1: they can be. So Queen Elizabeth, a very enterprising woman,

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Speaker 1: thought I really want a piece of that pie, and

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Speaker 1: she came up with a very innovative way in which

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Speaker 1: she could raise enough money in addition to what was

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Speaker 1: available in the Royal Treasury to get a bunch of

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Speaker 1: ships together to go and make a successful trade route

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Speaker 1: for England. That's right, and it's interesting to note that

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Speaker 1: the Dutch charter got a head start on England at

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Speaker 1: this time, even though they didn't have their official charter yet.

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Speaker 1: They were doing really well over in the East Indies.

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Speaker 1: Like I said, they didn't have an official charter and

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Speaker 1: this was causing a lot of problems back home for them.

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Speaker 1: Because individual companies would compete each other and flood the

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Speaker 1: market with spices, and so the profits would drop and

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Speaker 1: they wouldn't have enough to fund their more more sea ventures, etcetera.

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Speaker 1: And so England actually took a really smart move, you know,

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Speaker 1: when when the London merchants got together and asked Queen

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Speaker 1: was before a charter, and so she granted it to

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Speaker 1: them on December thirty one, six hundred a very grand

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Speaker 1: day because this charter, you know, which seemed to be

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Speaker 1: an anocuous piece of paper that allowed people to trade more,

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Speaker 1: successfully turned England into this major world superpower, and it

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Speaker 1: started a few precedents. And UM our colleague Josh Clark

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Speaker 1: writes a great article about UM how the East India

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Speaker 1: Company changed the world, and in it he talks about

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Speaker 1: how this company was basically the first joint stock corporation

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Speaker 1: and what that means. Basically, if you're not you know

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Speaker 1: into the business jargon, is that investors are given a

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Speaker 1: share of ownership in the company and if the company

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Speaker 1: should go under, you're guaranteed not to lose anymore than

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Speaker 1: what you put in the company. That's right. It was

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Speaker 1: the first limited liability corporation exactly and here in the

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Speaker 1: United States we abbreviate that as ll C. Over in

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Speaker 1: England it's lt D. And it's good news because, especially

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Speaker 1: in times like these, if a company goes under, you're

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Speaker 1: guaranteed that you won't be responsible for any outstanding debts

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Speaker 1: that the company has occurred. So very very smart move on,

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Speaker 1: Elizabeth's behalf. That's right. And they had this charter, and

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Speaker 1: the Dutch learned from it. They made their own charter

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Speaker 1: a couple of years later, and so England was still

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Speaker 1: catching up with the Dutch for for decades to come.

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Speaker 1: They would fight each other over over on the other

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Speaker 1: side of the world. It's interesting to note it took

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Speaker 1: about a year to go back and forth to the

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Speaker 1: from the East Indies to Europe. So just to clarify

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Speaker 1: the route you're talking about, are you talking about, say,

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Speaker 1: laying down both sides of Africa and through the Cape

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Speaker 1: of Good Hope, right, Yes, that's right. Thank you for

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Speaker 1: clarifying that. And so because it took so long for

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Speaker 1: this transportation, they couldn't whenever they had a dispute, they

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Speaker 1: couldn't very well come back to their to their original

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Speaker 1: countries and then come back. It would just take much

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Speaker 1: too long, and so these companies had their own military resources.

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Speaker 1: They would fight each other. They would fight even local

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Speaker 1: areas if the local governor there was just being uncooperative

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Speaker 1: and they didn't want to deal with it. So they

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Speaker 1: were catching up with the Dutch for a long time.

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Speaker 1: There was this interesting book called Splendid Exchange by William Bernstein,

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Speaker 1: and I love his description of the East India Company

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Speaker 1: because he calls it the obnoxious kid brother of being

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Speaker 1: Dutch East India Company, because the Dutch had basically better ships,

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Speaker 1: better technology, more ships, and the English were just catching

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Speaker 1: up for so long. It was sort of a case

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Speaker 1: of anything you can do, I can do better. Yeah,

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Speaker 1: I took it to the extreme, yeah exactly. And so

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Speaker 1: the Dutch sort of had control over the Spice Islands

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Speaker 1: that was their territory, and the and Uh they were

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Speaker 1: elbowing the Wish two more unprofitable, not as nice ports,

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Speaker 1: and so the English would have made their way to

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Speaker 1: India instead. In India they were able to capitalize on

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Speaker 1: their claws and textiles and not to mention their opium.

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Speaker 1: And what was rather irresponsible of the East India Company

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Speaker 1: is that they would force the people and the lands

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Speaker 1: that they controlled to purchase their commodities only from them.

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Speaker 1: So they would essentially take hold of all the commodities,

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Speaker 1: whether it was tea and the American colonies or opium

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Speaker 1: and the Indian colonies, and they would use that to

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Speaker 1: to leverage their their power essentially, like we all know

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Speaker 1: the story of the Boston Tea Party in Jane and

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Speaker 1: I have done a podcast about it as well. In short,

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Speaker 1: the East India Company had a bunch of surplus t

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Speaker 1: that I needed to unload, and the prime target market

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Speaker 1: where the American colonists, so they made it much much

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Speaker 1: more attractive to vide tea from the e I. C.

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Speaker 1: Than from any other purveyor of the tea. And the

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Speaker 1: colonists did not like being whole where to buy their

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Speaker 1: stuff from. That's right. One historian put it that the

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Speaker 1: columnists dumped the t in in the ocean because of

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Speaker 1: the East India Company was dumping the t on them.

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Speaker 1: You know, they had their surplus and they they didn't

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Speaker 1: want to force down their throats. Basically, well, that's that

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Speaker 1: the colonies are founded on this idea of freedom. So

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Speaker 1: who is England to come in and say you have

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Speaker 1: to buy from us? Which is essentially what they were doing. Yeah,

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Speaker 1: and either way you look at it, it did lead

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Speaker 1: to the American Revolution, like it was a contributing factor

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Speaker 1: one of the major events that you know, we're taught

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Speaker 1: in history class. This helped lead to the war and

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Speaker 1: you know it helped form the United States today, and

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Speaker 1: so it's a huge influence at the East India Company

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Speaker 1: had over the world events. To think that a business

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Speaker 1: essentially have started a war like that is it's a

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Speaker 1: really powerful thought. And it's not just in the American

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Speaker 1: colonies that the e I C provoked this kind of uprising.

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Speaker 1: You know, we said before that they were trying to

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Speaker 1: control all the opium exports over in India and it

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Speaker 1: led to a very similar revolution there. That's right. And

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Speaker 1: to give you some background on at India was a

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Speaker 1: very fragmented territory. It wasn't unified by any means. When um,

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Speaker 1: the East India Company came in. The East India Company

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Speaker 1: businessmen basically had to make individual deals with all the

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Speaker 1: local rulers at that time in India, and some were

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Speaker 1: more cooperative than others. So they made individual contracts, like

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Speaker 1: I said, and they got at first their textiles in

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Speaker 1: their claws. They they they made a lot of money

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Speaker 1: from uh that commodity, but this became less profitable and

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Speaker 1: they had to shift over to the spices in India.

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Speaker 1: And they were mostly after China to get Chinese porcelain,

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Speaker 1: silk and tea, and so you have this multiple trade

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Speaker 1: system going on. So the Chinese were getting less and

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Speaker 1: less interested in the textiles, but they were getting more

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Speaker 1: and more interested in opium. Who would end so opium

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Speaker 1: became a major a major point in the East India

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Speaker 1: Company's trade between India and China. And like Candice alluded

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Speaker 1: to before, no Indian was able to grow opium in

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Speaker 1: India without selling it to the East India Company, and

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Speaker 1: so they sold it to China. And basically China had

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Speaker 1: a lot of problems with this. They didn't want to

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Speaker 1: deal with this anymore. The Chinese authorities, we should say,

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Speaker 1: and at least in my history class, the way they

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Speaker 1: painted it to me was that opium was a highly addictive,

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Speaker 1: dangerous drug and the East India Company was was very

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Speaker 1: irresponsible in taking advantage of this. And actually Bernstein, the

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Speaker 1: history and I mentioned before, he actually said that it's

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Speaker 1: not wasn't quite like that. Only about one percent of

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Speaker 1: the Chinese UH smoked opium disession extent that they got addicted,

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Speaker 1: which is still bad. I mean, opium was a problem

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Speaker 1: at the time, but also one of the issues was

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Speaker 1: that the Chinese authorities did they did have a moral

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Speaker 1: issue with with the opium trade, but it was mostly

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Speaker 1: about the economy and economic issues involved in opium. About

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Speaker 1: eighteen o six, the value of opium coming into China

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Speaker 1: exceeded the value of te going out, and so this

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Speaker 1: was a problem. The country was starting to hemorrhage UH

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Speaker 1: silver and so this is what eventually builded up into

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Speaker 1: two Opium Wars. But another problem that was occurring during

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Speaker 1: this time was that the British troops essentially we're creating

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Speaker 1: private armies from the local Indian populations. And so can

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Speaker 1: you imagine that this foreign corporation comes into your country,

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Speaker 1: demands that all the farmers around you saw their crafts

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Speaker 1: only to them, and furthermore, taps you for service in

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Speaker 1: a private army. It just it didn't seem right, and

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Speaker 1: so there was an uprising, that's right, and it's called

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Speaker 1: the Seapoy Rebellion, and sea Boy was the name of

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Speaker 1: one of these Indian soldiers. Who fought for the East

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Speaker 1: India Company. But the Seapoint rebellion back in seven it

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Speaker 1: wasn't exactly successful. Um. It was India's really sort of

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Speaker 1: first major effort to get their independence from Great Britain,

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Speaker 1: but it didn't really work because the British Army was

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Speaker 1: able to overtake them. Not surprisingly, they were outnumbered. So

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Speaker 1: India was an English colony really until about ninety seven

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Speaker 1: became a republic. That's right, And I guess that story

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Speaker 1: deserves a podcast and it's owned because it's you know,

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Speaker 1: Gandhi and everything. There's so much to talk about in

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Speaker 1: that arena. But we should also go back and mentioned

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Speaker 1: that this is around the same time as the two

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Speaker 1: Opium Wars, which were both uh failures on on China's part,

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Speaker 1: and so they both just ended up in expanding the

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Speaker 1: trading rights for the East India Company in China. So

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Speaker 1: it's a tough situation, it really was. And it's sort

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Speaker 1: of a side note to all of this. And this

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Speaker 1: is really a matter more of of personal interest because

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Speaker 1: last night, when I was reading about the East India Company,

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Speaker 1: my husband to Dowart, decided, oh, you have to talk

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Speaker 1: about I p A and Um, being sort of a

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Speaker 1: beer aficionado, India Pale and he was like, well, you

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Speaker 1: know what about the role of I p a in

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Speaker 1: in India? And I didn't really know much about it,

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Speaker 1: So just you know, as a treat for all of

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Speaker 1: you out there, you know, for those of you like opium,

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Speaker 1: you got yours, and now all of your beer lovers

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Speaker 1: are going to get yours. Essentially, the British were very,

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Speaker 1: very used to drinking a all. It was something that

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Speaker 1: was part of their culture. It was something they expected.

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Speaker 1: It was sort of like I don't know, Southerners like

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Speaker 1: to drink their sweet tape, people like water. Well, they

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Speaker 1: expected their beer. But the problem with the trade route

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Speaker 1: from England to India is that it was so long

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Speaker 1: and the weather changed so drastically from the site of

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Speaker 1: the creation to the side of the unloading that they

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Speaker 1: had to figure out a way to make beer differently

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Speaker 1: so that it would make it on the trip. It'd

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Speaker 1: be like driving to the grocery store to get a

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Speaker 1: gallon of milk and then taking a three hour trip

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Speaker 1: home not having a cooler in your car by the

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Speaker 1: time you get there, it's not gonna be good for drinking.

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Speaker 1: So Um, a town called Burton on Trent had water

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Speaker 1: that had a really high concentration of gypsum or calcium sulfate,

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Speaker 1: and this actually helped change the quality of the beer.

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Speaker 1: In addition to adding extra hops to would make it

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Speaker 1: really bitter and sort of fruity tasting, but it made

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Speaker 1: it stronger and had more preservative quality so that they

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Speaker 1: can mature more quickly and stay more stable. And so

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Speaker 1: the traders in India, as well as members of the

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Speaker 1: navy and the army there could drink it and be

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Speaker 1: happy because they had their beer. And I actually I

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Speaker 1: got this information from the Meantime Brewing Company, which is

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Speaker 1: a great website if you're curious about the history of beer.

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Speaker 1: But I learned there that I p A is considered

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Speaker 1: a running beer, and running beer means that you can

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Speaker 1: drink it immediately. It doesn't have to sit around and

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Speaker 1: mature like Ale does. You know you see in movies

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Speaker 1: Ale is containing those really big oak barrels where it's

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Speaker 1: you know, I guess aging and getting more delicious with time.

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Speaker 1: But it was incredibly popular and the colonists, you know,

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Speaker 1: drink it up. I think there were a lot at

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Speaker 1: something like a gallon a day, and maybe even more

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Speaker 1: after i PA became more successful and you can still

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Speaker 1: get your IPA today, So who knew you'd be learning

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Speaker 1: so much about beer today. But you know, we care

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Speaker 1: about you guys, so that's that. And if you want

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Speaker 1: to know even more about other subjects or there's something

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Speaker 1: that tickles your fancy that you want to hear Jen

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Speaker 1: and me discuss email us at history podcast at how

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Speaker 1: stuff works dot com. That's right. And if we don't

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Speaker 1: do a podcast on it, we could write a blog

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Speaker 1: on it. And if you haven't seen it yet, you

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Speaker 1: should go to about our blog stuff you miss in

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Speaker 1: history class on how stuff works dot com and you

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Speaker 1: and Jane every week day. You're gonna love it. And

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Speaker 1: if you want to learn even more about the East

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Speaker 1: India Company or beer or Clean Elizabeth, be sure to

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