Short history of Amsterdam

and the Netherlands


  • The Early Days
  • The formation of a political union
  • The 80-Year War
  • 1602 - Foundation of Dutch East Indian Company (VOC)
  • The Golden Age
  • A Standstill
  • Social unrest/Occupation
  • Industrialization
  • WW II
  • The Holocaust
  • Hunger-Winter
  • Restoration/Marshall Aid
  • 'Cultural Revolution'
  • The early days

    Looking at the World map, it isn't easy to imagine that this insipid little country actually has played a significant role in world history.
    But it has. Thanks to its strategic geographic position the Netherlands have been able to dominate world trade through the centuries up to present times.

    Large rivers running through the Lowlands (Belgium, Luxembourg and the Netherlands together) mouth into the North Sea, which made it easy for main ports to develop and be a focus point of maritime trade. Obvious that many foreign rulers have laid their envious eyes on the Lowlands and its riches.
    Amsterdam has, through the centuries, always taken a special place in Dutch society. Due to its position in the province of North Holland the city developed into the major important center point for trade and politics.

    When did it all start?
    The Netherlands in the middle-ages were a collection, of often rivalling, autonomous duchies (Gelre and Brabant) and counties (Holland and Zeeland) together with the bishopric of Utrecht. This, in the middle ages, wasn't an exception as separate kingdoms, duchies, counties all rivalled over minor tracts of land since income of the rulers highly depended on the riches of the land. A central ruler seemed to be absent altogether. (Funny enough this kind of conglomeration of loosely connected states has existed in Germany untill well into the nineteenth century before Germany was unified as a single state).

    Amsterdam isn't sooner mentioned in recorded history than in the year 1275, when count Floris V granted permission to the people living near the dam in river Amstel to levy tolls. Amsterdam got its name from this very dam in river Amstel (Amstellodamus developed into Amsterdam). This dam was built in 1220 to avoid the floods from the ZuiderZee {South Sea} entering the inlands. The Zuiderzee, which remained a treacherous stretch of water with a mean temper, has been sealed off from the influences of the North Sea by the great 'Afsluitdijk', built by civil engineer Leeghwater in the thirties of the 20th century. Current day name of Zuiderzee is IJsselmeer, as it lost its status of being an bay. The term 'meer' indicates its status of being an artificial lake.

    The tolls were an important move in the struggle for control over the area, since traditionally these parts belonged to the bishopric Utrecht.
    Utrecht had the so-called Lords of Amstel to govern the 'Amstel-parts'. Now, these Lords had come up with an agenda of their own and desired to be in full control over the area without being subject to Utrecht. The Lords of Amstel are reputed to be the founders of the city. Floris V saw that an independent Amstelland wasn't very realistic. To win the people's support living near the Dam he granted them mentioned toll-rights. In this he succeeded and the Lords of Amstel were forced to acknowledge Floris V as their feudal lord. This, however, didn't last very long. In 1296 they murdered Floris V in the small village of Muiden (10 kilometers east from Amsterdam).

    This treacherous murder has lead to some local folklore in the village of Muiden and its direct vicinity:
    Apparently after the murder, the mermaid living in the waters near the harbour of Muiden Castle (thirteenth century, folks) had invoked a curse on Muiden and its people. At that time Muiden was an important sea port at the mouth of river Vecht, leading from, you guessed it right: the Bishopric Utrecht. Lore tells that the mermaid said that Muiden would never play an important role anymore as a sea port, which has proven quite true as it still inhabits no more than 4,000 people. The result of the murder meant that North-Holland belonged to Bishopric Utrecht once again.

    It wasn't until the year 1300 or 1306 that Amsterdam was acknowledged as city, which was finally granted by the Bishop of Utrecht. Because of his kinmenship with Willem III, count of Holland, the city fell to Holland definitively at his passing in 1317.

    Amsterdam grew rapidly. The first church was built in approximately 1300 (an important feat in those dark days, the core of which is today the 'Nieuwe Kerk'). Dikes (yes, even then) were constructed at the banks of river Amstel, and at the exact same location as today, the dam was built, hence the name Dam Square. Nowadays the Dam is mostly known for its monument, and the gathering spot it has been for the hippies in early seventies. Actually, the monument was erected to commemorate the victims of the Second World War. Conservative minds thought hippies sleeping on Dam square was a violation of this very remembrance. Sleeping there doesn't happen anymore as most hippies have found well-payed jobs in the corporate sector, but people still like to idle about at the square and breathe in the city's atmosphere.

    Amsterdam's main commodities were beer and herring. In 1323 it obtained exclusive rights for importing beer from Hamburg, and thus acquired an important monopoly in the Dutch beer trade.

    There is a Dutch proverb "Vechten tegen de bierkaai", which means "It's labour lost", but literally would mean: Fighting against the beer quay, referring to the spot of Amsterdam port that unloaded beer. Apparently there were struggles against the rises in the price of beer and riots were the result. Unfortunately the disgruntled customers were facing the burly dock-workers.

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    The formation of a political union

    Gradually tendencies in favour of a greater political union grew stronger.
    Amsterdam could see the benefits from it, and was a vivid supporter to the process.

    In the course of the 15th century Amsterdam became part of the large empire of Philip of Burgundy. His major goal was to unify all medieval kingdoms but found opposition in Holland from Jacoba of Bayern. Supporters to both factions battled for their respective causes.

    There is so much Dutch folklore: One of the traditional phrases to be yelled into an 'echo-well' goes: "What's the favorite food of Jacoba van Bayern?" The echo would answer with "Ayern" (Ayern is phonetically the plural of egg).

    In 1519 Amsterdam came under Spanish rule. Finally, in 1543, the Political Union of the Netherlands (roughly the Benelux = Belgium, Luxembourg and Holland) was founded by Charles V (the Holy Roman Emperor who also founded the Spanish Inquisition, which nobody expected), Philip of Burgundy's great great grand son. The Lowlands , as he called them, were part of his great Burgundian-Hapsburg Empire. The main point of the juvenile state was located in the southern parts, and Brussels became its capital.

    Because of its status as trade center, Amsterdam kept its dominant position in the Netherlands. The city imported lumber and corn (where had the beer lease gone?). Most of the imported goods came from the Baltic Sea countries, which gave Amsterdam merchants the opportunity to also import fur, cod and ore.
    For its ties with southern and northern countries Amsterdam was able to become a port of transshipment. A natural secondary to these activities was the development of a service sector.

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    The 80-Year War

    The Political Union of the Netherlands with Spain was cancelled by religious struggle.
    Philip II , son of Charles V, heir to the throne had become king of Spain. From his capital he tried to repress the Reformations taking place in the Netherlands (and other Western-European countries for that matter. Luther's legacy gained weight). In answer to this repression, the Dutch started to revolt. The Dutch were determined to keep their liberties and didn't want to have any business with religious prosecution (Spanish Inquisition), and the 80 Year War had started. Prince Willem of Orange became the leader of the revolters.

    That's why the royal family are called the "Oranjes" (of Orange), hence the loud colours worn by Dutch supporters at main sporting events.

    In 1572 Holland (the Western parts of the Netherlands) joined the revolt, but Amsterdam remained remained loyal to the Spanish crown. Yes, Amsterdam, city famed throughout the centuries for its liberal points of view were loyal to religious oppressors. So, take heed whenever somebody days the Dutch are so openminded and liberal. Most often this liberalism comes from pragmatic calculation (can 'we' benefit from it?) But still, can you imagine?

    The war needed a Haarlem (Harlem) defeat to turn chances in the course of the war. The aid of neighbouring city Amsterdam was needed to achieve this. In the end the Spanish were beaten and finally the Geuzenvloot, (Beggar's fleet) defeated Amsterdam. Amsterdam found itself isolated, and in 1578 it signed a peace treaty with the rest of the Netherlands. (see below)

    A couple of months later local government was replaced by supporters to the Prince.
    In 1579 the Netherlands fell apart in the Union of Utrecht (7 Provinces) and the Union of Atrecht (Belgium). The Union of Utrecht remained at war with Spain until, finally after 80 years, the Peace Treaty of Munster was signed.

    The end of the 80-year war, and most certainly the fall of Antwerp were among the causes of the beginning of economic prosperity for the Netherlands. How did this happen?
    This city, at the mouth of river Schelde (Scheldt), fell to the Spanish in 1585, which was a sound reason for the Dutch rebels to seal off the Schelde delta for trade by blockading Westerschelde bay, the only connection with the North Sea. Many Antwerp merchants and tycoons took that commercial blow rather pragmatically: they simply emigrated to the North Hollands. They found a ready made blooming economy waiting to be harvested. This was just the catalyst it needed.
    At first it were cities like Enkhuizen and Hoorn that rapidly developed. These cities had allied with the Prince of Orange (1572) and it appeared like they were going to be severe competitors of pro-Spain Amsterdam, which had to endure a blockade at that time. This recession forced Amsterdam to finally take the side of Orange, which happened in 1578. After this alignment the city regained its leading position. In the South West of Holland, cities like Delft, Rotterdam and Dordrecht were major ports. In Zeeland it were Vlissingen and Middelburg. These harbours traded with Portugal, England, France, Scandinavia and the Baltic region and ...Spain.

    Another fact: the Dutch truly were great tradesmen. As the war consumed many of the state's resources, the hostilities were cancelled every now and then in order to let the battling countries catch their financial breath. This was easier done for the Dutch as they traded weapons to their Spanish enemies. Why not? being at war with Spain didn't necessarily have to intervene with Dutch tradesman ship, did it? Besides, the Spanish were severely in need of weapons as the war with Holland didn't to work out very satisfactory. By trading weapons Holland was able to afford weapons to fight the Spanish in turn.

    The invention of improved windmills might very well have been the main foundation on which the Dutch economy was built. Wind power had proven itself to be a sound, and abundant, source of energy to drive sawmills, grain mills and mills to keep the lowlands from flooding.

    The 7 Provinces, the start of present Nederland, called themselves The Republic, but in fact they were a confederation of states. Prince Willem of Orange was the first Stadtholder of the Republic and held residence in The Hague. In truth he was the military leader of the entire Union. Amsterdam, thus, didn't become political center of the union, but since political influence in the Union equaled the financial contribution a city was prepared to donate, Amsterdam could be certain to have its interests taken care of. Power, as this clearly shows, can be bought.

    This so-called republic was not a democracy, but neither an absolute monarchy, like most surrounding countries. The heritage of Medieval custom and the importance of trade stimulated a certain degree of freedom and tolerance.

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    1602 - Foundation of Dutch East Indian Company (VOC)

    The Amsterdammers, always keen on trade, sailed with merchant's fleets across the seas to India, Japan, Ceylon and Indonesia. In a stretch of a mere couple of years Amsterdam was subject to a process that would lead to The Golden Age.

    At the end of the 15th century the Portuguese and Spanish undertook great discoveries to the Americas and Indies. Holland got involved in the trade in colonial waters, primarily to collect goods in Lisbon, and shift them to other ports. Medieval logistics, so to say.

    For centuries people had been aware of the riches in the East that were for the taking, as they put it. Since dawn of time (Marco Polo maybe, but he's the famous one. And the silk routes had existed centuries preceding his birth) trade from Asia had taken place across land following the famous 'silk routes', and in the middle-ages it were Venice and Genua that had played a major part in trade from the East (as well as importing the plague, not to forget).

    Approximately in 1500 the Portuguese managed to sail to Asia following the coast of Africa and rounding Cape Goede Hoop. From that time countries had found a way to go there themselves.
    To ensure their position in Asian trade the Portuguese built fortifications at strategic spots in among others Goa, Malacca and Macao. What made it more it more profitable to sail a very much longer way to Asia then taking the route across land like had been done for centuries? Simply because ships were able to transport much more goods at a time than complete caravans were able to do. So after that time most of pepper and spices reached Europe through Lisbon.

    After Portugal was conquered by the Spanish in 1580, the Dutch were eager, like vultures hovering over a dead corpse, to fill in the gap the Portuguese left in the East after their defeat by the Spanish. They saw the necessity, and opportunity for profit to go to the colonies themselves. Holland was at war with Spain since 1568, and when Antwerp was conquered North-West Europe had lost its main Distribution center, eventually this resulted in enormous raises in prices. This was a major stimulation to venture there themselves, although trade went on during the hostilities. Business was in that time, just as much as it is now, business.

    Another stimulation to undertake action was the immigration of Portuguese jews from Antwerp to Amsterdam after it was captured by the Spanish in 1585 (see above), (they had fled the Spanish from Lisbon to begin with). This meant a huge influx of financial resources, and so the financial capability to sail to the Indies.
    One could tell about heroism, and the hardships sailors had to endure on their way to the East. One could narrate about all the hazards like scurvy, typhoons, hunger, thirst, bad navigating and not to forget pirates.
    Extensive information on piracy can be found at Mark Bruyneel's Piracy Website.
    Despite the romanticism that surrounds long journeys across the seven seas it is a fact that 98% of all ships made it safely to Asia, and a similar amount made it safely back (which, from a business point of view is an important condition too). If you look upon things like a trade's man, the VOC would've never ventured into undertakings of innumerable risk. Not only that, the Dutch didn't (and don't) like to venture into very risky business.

    From Amsterdam the ships set sail for the Indies. In 1596 the Dutch first entered Bantan (West Java). These were a huge success (although the journey resulted in the loss of one ship and of a total crew of 249 only 87 survived), but it resulted in a 400% profit to the stockholders. Not to forget, Dutch traders had found their own way to the Indies, with a little help of Portuguese maps they copied. Inspired by these results the VOC (United East-Indian Company) was founded. In the time-stretch between 1598 and 1605 12 expeditions with a total of 65 ships were sent to the East. Commodities coming from the East were china, spices, cloth, tea, coffee, sugar, pewter, salpetre, pepper and tons of other goods.
    What then, caused this bad reputation? Apparently it were disaster journeys like that of the Batavia (1629) or the Amsterdam (1749) that 'highlighted' the enterprises of the VOC.

    More information about the Dutch East Indian Company (VOC)

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    The Golden Age

    The 17th century was an era of wealth and glory to Amsterdam. Which directly was the cause of the construction of the famous 'Grachtengordel' (the rings of canals). At the banks of the canals high houses were built. This was stimulated by the government as it was a symptom of power and wealth. Next to that, taxes on real estate, in those days, was based on the width of houses rather than their height or depth. As a result, the houses at the grachtengordel got a very slim appearance.

    Around 1700 the city inhabited about 200,000 people (compared to today's population: about 800,000).

    This golden age was also characterized by a flourishing degree of culture. It was in the period Rembrandt and his students worked on their now world famous paintings, while philosophers like Spinoza and Descartes trusted their thoughts to paper.

    Prosperity is vulnerable. Due to war with England a fleet was prevented from docking in Amsterdam and lead to near bankruptcy of the city.
    Unemployment and misfortune were the result. Because Amsterdam still was a major port for shifting goods from the Baltic, the city was forced to ally with Denmark in a war against Sweden and Norway.

    1672 was in this prospect the lowest point: the republic was involved in a war with France and England attacked the Netherlands as well, and nearly resulted in a Dutch defeat. (this particular year is in Dutch been referred to as the 'Calamity Year' (Rampjaar). Willem III of Orange took his chance by seizing power and set his mind to continuing the war with France. Amsterdam resisted to these money-consuming plans.

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    A Standstill

    At the end of the 17th century amsterdam reached the end of the explosive economic growth. This, however didn't lead to stability. The city had lost its position of main port for the staple-market, but developed itself into the financial heart of the world.

    After decades of prosperity the divide between the social classes had widened considerably. The regents enriched themselves by means of gross atrocities and severe policies at the cost of the lower classes.
    In between the extremes a new class had risen: the middle class. Members of this class were rather progressive and open to pick up new ideas from England and France. This class wanted to take part in politics.

    The streets were buzzing with new concepts like democracy and co-partnership. The civilians recognized in the House of Orange their natural alliances against the regent families.
    In 1747 they succeeded in granting Prince Willem IV royal status.

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    Social unrest/Occupation

    The call for reforms grew stronger and stronger, demanding an end to the corruption of the regent families. In 1748, this movement gained considerably in power. The tax-collector's revolt swept through the entire area of the 7 Provinces. Houses of tax-collectors ware systematically plundered and destroyed. Of course the revolt was brutally struck down and its leaders were hanged.

    It took a whole generation before the same ideas were adopted by the Patriots, with the difference that they also turned against the House of Orange and the ruling position of Holland and Amsterdam in the Republic. The city council was dismissed and their place taken by representatives of the people. The experiment of democracy had begun.

    The young democracy was faced with many problems. In 1795 the Republic was occupied by the French, who rename the 7 Provinces into the Bavarian Republic.
    The Republic got an absolute board in the person of Lodewijk Napoleon, the brother of the French emperor. He took residence in Amsterdam, which, thus became the capital of the country.

    With the fall of Napolean the French disappeared. In 1815 Willem I of Orange accepted the throne. Amsterdam remained, formally the capital, but the government took residence once more in The Hague, which it does until today.
    In 1839 Belgium became independent of Holland, and the Netherlands took their present day form.

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    Industrialization

    As in any city in those days, the invention of the steam engine and the following industrialization didn't prevent the population to be exploited and be kept utterly poor, so social unrest always lurked under the surface of daily life.

    The opening of Suez Canal and the unification of Germany gave new impulses to the economy of Amsterdam. Trade with colony Indonesia was liberalized and the first diamond 'harvests' reached Amsterdam, which resulted in blooming diamond industry. In present day Amsterdam is still an important diamond trading center.

    The opening of North-Sea channel got Amsterdam a direct connection to the North Sea, and Amsterdam joined in with the late 19th century's architecture of large stores, theaters, hotels and museums.

    After 1870, in a ring around the canals, some working class quarters were built. The houses were poorly built, and nowadays extensive reconstruction programs are issued to restore the quality of housing in those quarters.
    After this period, much more attention was paid to housing, and quality of houses grew considerably. It was in this period that most of the typical Amsterdam architecture was erected.

    In the World Crisis (the 1930s in the 20th century)a small airport was constructed and a forest was constructed by a huge force of job less people who by these means were able to get an addition to their social welfare. (the Amsterdam Forest. Both my grandfathers, job less in the thirties, participated in the construction of this artificial forest).

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    WW II

    At the 10th of May 1940 Germany invades the Netherlands and one of the darkest periods in its history began.
    The badly equipped Dutch army was no match for the Germans, but still it demanded too much of the patience of Hitler. After a mere five day battle, Hitler decided to bomb Rotterdam and take out the entire inner city. Devastation and many casualties were the result. The army capitulated and the occupation was a fact.

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    The Holocaust

    When the Nazis began the deportations of the Jewish Amsterdammers, they discovered they were accurately aided by the ever so helpful civil service of Amsterdam. This even accumulated in the foundation of the so called Jewish Council who, as a council consisting of jews, helped organizing razzias and deportations of Jewish citizens. In fact, they didn't have much choice. As they hadn't heard of the camps yet, they thought by collaborating with the German occupiers, actually were helping the Jewish population by keeping up a sound administrative system.

    The Holocaust has taken a heavy toll on Amsterdam. The first razzias were held at 22nd of February 1941 at Waterloo square.
    The Amsterdam population was quick to answer: at 25th and 26th of February they organized a, by the Amsterdam dock-workers organized, massively joined strike. This was an unprecedented event, non-jews coming up for their fellow Jewish citizens. Yet, the systematic deportations began to take form in July 1942. Jews were driven together in the Dutch Theatre Amsterdam and taken to Westerbork, a transfer camp at the Dutch-German border, in order to be transported to the concentration camps in Germany and Poland.

    Going into hiding was an attempt to escape extermination. For people taking people in hiding into their homes this was a big risk, for discovery was answered with execution, and their courage must never be forgotten. The most famous example has been Anne Frank, who wrote her famous diary, before she eventually was discovered after betrayal and taken away to be killed in Bergen-Belsen.

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    Hunger-Winter

    The failure of the Battle at Arnhem (A bridge too far) in September 1944 caused the Northern parts of the Netherlands to get isolated. In the following Winter the German occupiers systematically squeezed the Dutch dry in Amsterdam, which lead to starvation to many Amsterdammers. To be able to keep the fires burning, empty houses (ironically mostly Jewish houses) were plundered for fuel.

    Finally at the 5th of May 1945, Germany capitulated, and the liberation was celebrated two days later at Dam Square. The big memorial spire was erected to remembrance for those fallen in the war was erected there later: Dam National Monument.

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    Restoration/Marshall Aid

    After the war the main incentive of the Netherlands, and Amsterdam, was to restore the economy. Housing shortage had to be tackled in most of the Dutch cities, industry had to be innovated. Yet, the fifties and sixties were characterized by enormous economic growth, which again, lead to great prosperity.

    The eighties, like most other western countries were haunted by economic recession and a shift in the kind of products was severely needed. In the nineties this has resulted in a strongly developed services industry which in number employees outweighs manufacturing industry.

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    'Cultural Revolution'

    As the people in the fifties were mainly concerned with restoration of the country, and kept their minds at work and raising families, their offspring was able to harvest the prosperity they had sown.
    With Amsterdam in the lead, Dutch society was subject to many strong shifts in thought, role models, behavioral patterns etc. This, and the aftermath of the roaring Summer of 1968, lead to strong co-partnership through facets of Dutch society, industry, universities, schooling etc. Holland was quickly becoming nation of negotiators.

    Hippies adopted Amsterdam as their European capital and they came from all around to crash in the parks and at Dam Square. Since they were keen on use of drugs, and the sheer number of people using it, forced local government in Amsterdam to brook possession for personal use, while trade remained a phelony. This policy gradually has been accepted by entire Holland and nowadays leads to vivid discussions between policy-makers and local governments in England and Germany.

    Yet, this also is but one of the many reasons why Amsterdam through the centuries has remained a focus point in culture, trade, services and culture.

    And still is.

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    Sources used:
    1) I wish to thank the keepers of Gemeente Amsterdam, Afd. Communicatie , whom befalls copyright to some material used for constructing this page.
    2) The VOC pages of the Dutch Automobile Association (ANWB)