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Studying the history of business is a fascinating exercise. The origins of many of the finance and business products that we utilize today were perfected during centuries past in countries sprinkled far and wide around the world. One of the most important, inventive and skilled business cultures was created in the Netherlands during the 17th century.
As the world was discovered, mapped and colonized by the early Spanish and Portuguese explorers, new trade routes were pioneered and many high value products came to market in Europe as demand for exotic imports exploded. This boom in international trade required a corresponding expansion of novel financing mechanisms to fund this commerce.
The first great merchant traders were the Portuguese. They used Lisbon as their trade center. However, their trade apparatus was primitive even for the age. The principal imports and the most valuable products of 1600's trade were East Asian spices and silks. Because the Portuguese were inefficient in distribution and in financing methods the Italians, Spanish and Dutch were all interested in circumventing Portuguese merchants and overtaking their trade relationships.
