Dutch Republic

Until the 16th century, the Low Countries—corresponding roughly to the present-day Netherlands, Belgium, and Luxembourg—consisted of a number of duchies, counties, and prince-bishoprics, almost all of which were under the supremacy of the Holy Roman Empire, with the exception of the County of Flanders, most of which was under the Kingdom of France.

Most of the Low Countries had come under the rule of the House of Burgundy and subsequently the House of Habsburg. In 1549, Holy Roman Emperor Charles V issued the Pragmatic Sanction, which further unified the Seventeen Provinces under his rule. In 1568, the Netherlands, led by William I of Orange, together with Philip de Montmorency, Count of Hoorn, and Lamoral, Count of Egmont revolted against Charles's successor, Philip II of Spain, because of high taxes, persecution of Protestants by the government, and Philip's efforts to modernize and centralize the devolved-medieval government structures of the provinces. This was the start of the Eighty Years' War. During the initial phase of the war, the revolt was largely unsuccessful. Spain regained control over most of the rebelling provinces. This period is known as the "Spanish Fury" due to the high number of massacres, instances of mass looting, and total destruction of multiple cities, in particular Antwerp between 1572 and 1579.

In 1579, a number of the northern provinces of the Low Countries signed the Union of Utrecht, in which they promised to support each other in their defence against the Army of Flanders. This was followed in 1581 by the Act of Abjuration, the declaration of independence of the provinces from Philip II. Dutch colonialism began at this point, as the Netherlands was able to capture a number of Portuguese and Spanish colonies, particularly in the Asia-Pacific region. After the assassination of William of Orange on 10 July 1584, both Henry III of France and Elizabeth I of England declined offers of sovereignty. However, the latter agreed to turn the United Provinces into a protectorate of England (Treaty of Nonsuch, 1585), and sent the Earl of Leicester as governor-general. This was unsuccessful, and with the instruction of 12 April 1588, the United Provinces became a republic. The Union of Utrecht is regarded as the foundation of the Republic of the Seven United Provinces, which was not recognized by Spain until the Peace of Westphalia in 1648.

An important factor in the growth of the Netherlands as an economic power was the influx of groups seeking religious toleration of the Dutch Republic. In particular, it became the destination of Portuguese and Spanish Jews fleeing the Inquisitions in Iberia in the sixteenth and seventeenth centuries. and later, poorer German Jews. The Portuguese Jewish community had many wealthy merchants who, both lived openly as Jews and participated in the thriving economy on a par with wealthy Dutch merchants. The Netherlands became home to many other notable refugees, including Protestants from Antwerp and Flanders, which remained under Spanish Catholic rule; French Huguenots; and English Dissenters, including the Pilgrim Fathers. Many immigrants came to the cities of Holland in the 17th and 18th century from the Protestant parts of Germany and elsewhere. The number of first-generation immigrants from outside the Netherlands in Amsterdam was nearly 50% in the 17th and 18th centuries. Amsterdam, which was a hub of the Atlantic world, had a population primarily of immigrants and others not considered Dutch, if one includes second and third generation immigrants. There were also migrants from the Dutch countryside. People in most parts of Europe were poor and many were unemployed. But in Amsterdam there was always work. Religious toleration was important, because a continuous influx of immigrants was necessary for the economy. Travellers visiting Amsterdam reported their surprise at the lack of control over the influx.

The era of explosive economic growth is roughly coterminous with the period of social and cultural bloom that has been called the Dutch Golden Age, and that actually formed the material basis for that cultural era. Amsterdam became the hub of world trade, the center into which staples and luxuries flowed for sorting, processing, and distribution, and then reexported around Europe and the world.

During 1585 through 1622 there was the rapid accumulation of trade capital, often brought in by refugee merchants from Antwerp and other ports. The money was typically invested in high-risk ventures like pioneering expeditions to the East Indies to engage in the spice trade. These ventures were soon consolidated in the Dutch East India Company (VOC). There were similar ventures in different fields however, like the trade on Russia and the Levant. The profits of these ventures were ploughed back in the financing of new trade, which led to its exponential growth.

Rapid industrialization led to the rapid growth of the nonagricultural labor force and the increase in real wages during the same time. In the half-century between 1570 and 1620 this labor supply increased 3 percent per annum, a truly phenomenal growth. Despite this, nominal wages were repeatedly increased, outstripping price increases. In consequence, real wages for unskilled laborers were 62 percent higher in 1615–1619 than in 1575–1579.

By the mid-1660s Amsterdam had reached the optimum population (about 200,000) for the level of trade, commerce and agriculture then available to support it. The city contributed the largest quota in taxes to the States of Holland which in turn contributed over half the quota to the States General. Amsterdam was also one of the most reliable in settling tax demands and therefore was able to use the threat to withhold such payments to good effect.

Amsterdam was governed by a body of regents, a large, but closed, oligarchy with control over all aspects of the city's life, and a dominant voice in the foreign affairs of Holland. Only men with sufficient wealth and a long enough residence within the city could join the ruling class. The first step for an ambitious and wealthy merchant family was to arrange a marriage with a long-established regent family. In the 1670s one such union, that of the Trip family (the Amsterdam branch of the Swedish arms makers) with the son of Burgomaster Valckenier, extended the influence and patronage available to the latter and strengthened his dominance of the council. The oligarchy in Amsterdam thus gained strength from its breadth and openness. In the smaller towns family interest could unite members on policy decisions but contraction through intermarriage could lead to the degeneration of the quality of the members.

In Amsterdam the network was so large that members of the same family could be related to opposing factions and pursue widely separated interests. The young men who had risen to positions of authority in the 1670s and 1680s consolidated their hold on office well into the 1690s and even the new century.

Amsterdam's regents provided good services to residents. They spent heavily on the water-ways and other essential infrastructure, as well as municipal almshouses for the elderly, hospitals and churches.

Amsterdam's wealth was generated by its commerce, which was in turn sustained by the judicious encouragement of entrepreneurs whatever their origin. This open door policy has been interpreted as proof of a tolerant ruling class. But tolerance was practiced for the convenience of the city. Therefore, the wealthy Sephardic Jews from Portugal were welcomed and accorded all privileges except those of citizenship, but the poor Ashkenazi Jews from Eastern Europe were far more carefully vetted and those who became dependent on the city were encouraged to move on. Similarly, provision for the housing of Huguenot immigrants was made in 1681 when Louis XIV's religious policy was beginning to drive these Protestants out of France; no encouragement was given to the dispossessed Dutch from the countryside or other towns of Holland. The regents encouraged immigrants to build churches and provided sites or buildings for churches and temples for all except the most radical sects and the Catholics by the 1670s (although even the Catholics could practice quietly in a chapel within the Beguinhof).

During the wars a tension had arisen between the Orange-Nassau leaders and the patrician merchants. The former—the Orangists—were soldiers and centralizers who seldom spoke of compromise with the enemy and looked for military solutions. They included many rural gentry as well as ordinary folk attached to the banner of the House of Orange. The latter group were the Republicans, led by the Grand Pensionary (a sort of prime minister) and the regents stood for localism, municipal rights, commerce, and peace. In 1650, the stadtholder William II, Prince of Orange suddenly died; his son was a baby and the Orangists were leaderless. The regents seized the opportunity: there would be no new stadtholder in Holland for 22 years. Johan de Witt, a brilliant politician and diplomat, emerged as the dominant figure. Princes of Orange became the stadtholder and an almost hereditary ruler in 1672 and 1748. The Dutch Republic of the United Provinces was a true republic from 1650 to 1672 and 1702–1748. These periods are called the First Stadtholderless Period and Second Stadtholderless Period.

The Dutch and English were major rivals in world trade and naval power. Halfway through the 17th century the Dutch States Navy was the rival of the English Royal Navy as the most powerful navy in the world. The Republic fought a series of three naval wars against England from 1652 to 1674.

In 1651, the Parliament of England introduced the Navigation Act, which restricted Dutch trade with English colonies. An incident at sea concerning the Act resulted in the First Anglo-Dutch War, which lasted from 1652 to 1654, ending in the Treaty of Westminster (1654), which left the Navigation Act in effect.

After the Stuart Restoration in 1660, Charles II tried to serve his dynastic interests by attempting to make Prince William III of Orange, his nephew, stadtholder of the Republic, using some military pressure. King Charles thought a naval war would weaken the Dutch traders and strengthen the English economy and empire, so the Second Anglo-Dutch War was launched in 1665. At first many Dutch ships were captured and the English scored great victories. England had the naval advantage with larger numbers of more powerful "ships of the line" which were well suited to the naval tactics of the era. Holmes's Bonfire was a raid on the Vlie estuary in the Netherlands, executed by the English Fleet during the Second Anglo-Dutch War on 19 and 20 August 1666. The attack, named after the commander of the landing force, Rear-Admiral Robert Holmes, was successful in destroying by fire a large Dutch merchant fleet of 140 ships. During the same action, the town of West-Terschelling was burnt down, which caused outrage in the Dutch Republic.

However, the Raid on the Medway, in June 1667, ended the war with a Dutch victory. The Dutch recovered their trade, while the English economy was seriously hurt and its treasury nearly bankrupt. The English would also soon recover.

The year 1672 is known in the Netherlands as the "Disaster Year" (Rampjaar). England declared war on the Republic, (the Third Anglo-Dutch War), followed by France, Münster and Cologne, which had all signed alliances against the Republic. France, Cologne and Münster invaded the Republic. Johan de Witt and his brother Cornelis, who had accomplished a diplomatic balancing act for a long time, were now the obvious scapegoats. They were lynched, and a new stadtholder, William III, was appointed.

An Anglo-French attempt to land on the Dutch shore was barely repelled in three desperate naval battles under command of Admiral Michiel de Ruyter.

During the Dutch Golden Age in the late-16th and 17th centuries, the Dutch Republic dominated world trade, conquering a vast colonial empire and operating the largest fleet of merchantmen of any nation. When Southern Europe was experiencing poor harvests, the Dutch very profitably exported surplus grain from Poland. The County of Holland was the wealthiest and most urbanized region in the world. In 1650 the urban population of the Dutch Republic as a percentage of total population was 31.7 percent, while that of the Spanish Netherlands was 20.8 percent, of Portugal 16.6 percent, and of Italy 14 percent. In 1675 the urban population density of Holland alone was 61 percent, compared to the rest of the Dutch Republic, where 27 percent lived in urban areas.

The free trade spirit of the time was augmented by the development of a modern, effective stock market in the Low Countries. The Netherlands has the oldest stock exchange in the world, founded in 1602 by the Dutch East India Company, while Rotterdam has the oldest bourse in the Netherlands. The Dutch East-India Company exchange went public in six different cities. Later, a court ruled that the company had to reside legally in a single city, so Amsterdam is recognized as the oldest such institution based on modern trading principles. While the banking system evolved in the Low Countries, it was quickly incorporated by the well-connected English, stimulating English economic output.

The republic was a confederation of seven provinces, which had their own governments and were very independent, and a number of so-called Generality Lands. The latter were governed directly by the States General, the federal government. The States General were seated in The Hague and consisted of representatives of each of the seven provinces. The provinces of the republic were, in official feudal order:

Duchy of Guelders (corresponding to the modern province of Gelderland)

County of Holland (corresponding to the modern provinces of North Holland and South Holland)

County of Zeeland (corresponding to the modern province of Zeeland)

Lordship of Utrecht (corresponding to the modern province of Utrecht)

Lordship of Overijssel (corresponding to the modern province of Overijssel)

Lordship of Frisia (corresponding to the modern province of Friesland)

Lordship of Groningen (corresponding to the modern province of Groningen)

There was an eighth province, the County of Drenthe (corresponding to the modern province of Drenthe), but this area was so poor that it was exempt from paying federal taxes, and as a consequence, it was denied representation in the States General, which is why the official name of the state was the "Seven United Netherlands" and not the "Eight United Netherlands".

Each province was governed by the Provincial States, their main executive official (though not the official head of state) being a raadpensionaris or landsadvocaat. In times of war, the stadtholder, who commanded the army, would have more power than the raadpensionaris. In theory, the stadtholders were freely appointed by and subordinate to the states of each province. However, in practice the princes of Orange of the House of Orange-Nassau, beginning with William the Silent, were always chosen as stadtholders of most of the provinces.

Zeeland and usually Utrecht had the same stadtholder as Holland. There was a constant power struggle between the Orangists, who supported the stadtholders and specifically the princes of Orange, and the Republicans, who supported the States General and hoped to replace the semi-hereditary nature of the stadtholdership with a true republican structure.

After the Peace of Westphalia, several border territories were assigned to the United Provinces. They were federally governed Generality Lands. These were Staats-Brabant, Staats-Vlaanderen, Staats-Overmaas, and (after the Treaty of Utrecht) Staats-Opper-Gelre. The States General of the United Provinces were in control of the Dutch East India Company and the Dutch West India Company, but some shipping expeditions were initiated by some of the provinces, mostly Holland and Zeeland.

The framers of the United States Constitution were influenced by the Constitution of the Republic of the United Provinces, as Federalist No. 20, by James Madison, shows. The United States did not intend to emulate the United Provinces; Madison describes the Dutch confederacy as exhibiting "Imbecility in the government; discord among the provinces; foreign influence and indignities; a precarious existence in peace, and peculiar calamities from war." However, the 1776 American Declaration of Independence is similar to the 1581 Act of Abjuration, essentially the declaration of independence of the United Provinces, although there is no evidence of direct influence.

In the Union of Utrecht of 20 January 1579, Holland and Zeeland were granted the right to accept only one religion (in practice, Calvinism). Every other province had the freedom to regulate the religious question as it wished, although the Union stated every person should be free in the choice of personal religion and that no person should be prosecuted based on religious choice. William of Orange had been a strong supporter of public and personal freedom of religion and hoped to unite Protestants and Catholics in the new union, and, for him, the Union was a defeat. In practice, Catholic services in all provinces were quickly forbidden, and the Dutch Reformed Church became the "public" or "privileged" church in the republic.

During the republic, any person who wished to hold public office had to conform to the Reformed Church and take an oath to this effect. The extent to which different religions or denominations were persecuted depended much on the time period and regional or city leaders. In the beginning, this was especially focused on Roman Catholics, being the religion of the enemy. In 17th-century Leiden, for instance, people opening their homes to services could be fined 200 guilders (a year's wage for a skilled tradesman) and banned from the city. Throughout this, however, personal freedom of religion existed and was one factor—along with economic reasons—in causing large immigration of religious refugees from other parts of Europe.

In the first years of the republic, controversy arose within the Reformed Church, mainly around the subject of predestination. This has become known as the struggle between Arminianism and Gomarism, or between Remonstrants and Contra-Remonstrants. In 1618, the Synod of Dort tackled this issue, which led to the banning of the Remonstrant faith.

Beginning in the 18th century, the situation changed from more or less active persecution of religious services to a state of restricted toleration of other religions, as long as their services took place secretly in private churches.

Long-term rivalry between the two main factions in Dutch society, the Staatsgezinden (Republicans, Dutch States Party) and the Prinsgezinden (Royalists or Orangists), sapped the strength and unity of the country. Johan de Witt and the Republicans did reign supreme for a time at the middle of the 17th century (the First Stadtholderless Period) until his overthrow and murder in 1672. Subsequently, William III of Orange became stadtholder. After a 22-year stadtholderless era, the Orangists regained power, and his first problem was to survive the Franco-Dutch War (with the derivative Third Anglo-Dutch War), when France, England, Münster, and Cologne united against his country.

Wars to contain the expansionist policies of France in various coalitions after the Glorious Revolution burdened the republic with huge debts, although little of the fighting after 1673 took place on Dutch territory. The necessity to maintain a vast army against France meant that less money could be spent on the navy, weakening the republic's economy. After William III's death in 1702 the Second Stadtholderless Period was inaugurated. Despite having contributed much in the War of the Spanish Succession, the Dutch Republic gained little from the peace talks in Utrecht (1713). However, the Dutch had over a period of forty years successfully defended their positions in the Southern Netherlands and their troops were central in the alliances which had halted French territorial expansion in Europe until 1792. The end of the War of the Austrian Succession in 1748, and Austria becoming allies with France against Prussia, marked the end of the republic as a major military power.

Fierce competition for trade and colonies, especially from France and England, furthered the economic downturn of the country. The three Anglo-Dutch Wars and the rise of mercantilism had a negative effect on Dutch shipping and commerce.