The settlement of the Dutch at Curaçoa, in 1634, first roused the inhabitants of Caraccas to exert their minds in agricultural pursuits: cacao and hides were soon exported in sufficient quantities to answer the purposes of carrying on an exchange trade with the Dutch for such articles of European produce as were necessary to the colonists of Venezuela. This trade became so brisk, that the mother country thought it time to interfere; edicts were issued to suppress it, and two vessels were freighted from Spain with merchandise for the colony, for which enormous duties were charged: the Dutch accordingly commenced a contraband trade, and so greatly undersold the Spanish merchants, that they were left until 1700, in quiet possession of the traffic. From 1700 to 1730, the merchants of Spain endeavoured to revive their speculations, but the activity of the Hollanders was so great, that they were undersold in every article; at this period, the annual produce of the Caraccas in cacao alone was 65,000 quintals (of 1600 ounces to each quintal); the exports through the royal custom houses amounted to 21,000, so that the Dutch received the remaining 44,000 quintals in their smuggling vessels. The court of Madrid viewing this decrease of its revenues, resolved to put a stop to the intercourse of the foreigners by forcible methods, and confiscations of property, fines and punishments were inflicted on every person discovered engaging in commerce with the Dutch. Notwithstanding these measures, the contraband trade still continued, and the means taken not being found to answer the proposed end, it was at last suggested that a company should be created to monopolize the whole export and import trade of the captain-generalship. This was accordingly done, and such was the vigilance of the members of this company, that the unlawful trade was soon destroyed, and they succeeded by their constant supplies, and by purchasing every article which could be turned to account, in giving complete satisfaction to the colonies. In 1742, this mercantile body, known by the appellation of the Caraccas and Guipuscoa Company, obtained an exclusive grant of the monopoly of the trade; but in consequence of the discontent which this concession raised in the minds of the colonists, a board was appointed, composed of an equal number of members of the company and of planters, the governor-general being president; this board was to regulate the prices at which the planters and company should respectively exchange their merchandise, at the same time permitting the cacao growers to export one-sixth of their cacao to Spain, on their own account in the company's ships. To prevent all irregular supply, ten armed vessels were built, carrying 86 guns and 518 men, and 102 men were equipped on shore, to guard the harbours.