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Venezuelan “Libranzas”, 1788-1807: From Economic Nostrum to Fiscal Imperative

Published online by Cambridge University Press:  11 December 2015

Jacques A. Barbier
Jacques A. Barbier*
Affiliation:
University of Ottawa, Ottawa, Ontario, Canada
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Extract

It is generally accepted that the Bourbon Reforms were designed to reestablish Peninsular vigor through colonial renewal. What is often unappreciated is that this pristinely simple goal obscures an underlying tangle. The essential thrust was to recolonize the Indies, and to this end economic life was reordered so as to accentuate the New World's role as supplier of precious and exotic products and as consumer of Spanish manufactures. Equally important, however, was the fiscal dimension. The crown wished to generate enough revenues to be able to bear the increasing burden of colonial defense, but beyond this it also wanted the overseas dominions to aid the mother country in defraying European expenses judged essential to a great power.

Type
Research Article
Information
The Americas , Volume 37 , Issue 4 , April 1981 , pp. 457 - 478
Copyright
Copyright © Academy of American Franciscan History 1981

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References

1 For a systematic exposition of such views see Lynch, John, The Spanish American Revolutions, 1808–1826 (New York, 1973), 1–24.Google Scholar Research for the present article was funded by the Social Sciences and Humanities Research Council of Canada.

2 The fiscal “responsibilities” of the colonies to the metropole are clearly expressed in Decretos del Rey uniendo a las cinco secretarías de estado y del despacho de España los negocios respectivos a cada departamento en las Indias (Madrid, 1790). See AGI, Indif., leg. 662. These orders are dated April 25, 1790.

3 This tendency to measure the “success” of the reforms by contrasting the gap between intentions and execution is, paradoxically, well exemplified in Brading, D.A., Miners and Merchants in Bourbon Mexico, 1763–1810 (Cambridge, 1971), 69–92.Google Scholar

4 Hussey, Roland D., The Caracas Company, 1728–1784 (Cambridge, Mass., 1934), 278.CrossRefGoogle Scholar

5 Venezuela, like Mexico, was excluded from the reglamento de comercio libre of 1778. When it was applied in 1780, tonnage restrictions were retained and these were not finally abolished until 1789.

6 The standard economic history for the Spanish period, Farias’, Eduardo Arcila, Economia colonial de Venezuela (second ed.: 2 vols.; Caracas, 1973),Google Scholar provides a good overview.

7 Guillelmi to Valdés, Dec. 31, 1788, no. 189, in AGI, Caracas, leg. 111. He reported that net revenues were expended as follows (in pesos fuertes):

8 See Barbier, Jacques A., “Towards a New Chronology for Bourbon Colonialism: the Depositaria de Indias of Cadiz, 1722–1789”, forthcoming, Ibero-Amerikanisches Archiv.Google Scholar

9 With the support of the Social Sciences and Humanities Research Council of Canada, this author and Professor Herbert Klein are colaborating on a study of peninsular public finances in the Eighteenth Century. An early fruit of this work is “Public Finance and Revolutionary War: the Spanish Tesorería Mayor, 1784–1807” forthcoming, Journal of Economic History, June, 1981.

10 Gálvez ‡to officials of his ministry], May 24, 1787, in AGI, Indif., leg. 1747. Note that the Cuban estanco was exempted from the resultant order on account of its special tie to the peninsular Ministry of Finances.

11 Minuta, R. O. circular, July 20, 1787, and “Resulta de una conferencia suscitada por el S. Valdés en la Suprema Junta de Estado”, (circa 1789), in AGI, Indif., leg. 1747.

12 Arcila Farias, II, 42; Saavedra to Gálvez, April 25, 1787, no. 723, in AGI, Indif., leg. 483; and Saavedra to Valdés, Nov. 23, 1787, nos. 60 and 61, in AGI, Caracas, leg. 501. His policy was approved by R.O. of March 19, 1788 — see Guillelmi to Valdés, June 10, 1788, no. 12. in AGI, Caracas, leg. 111. For Saavedra see Cantos, Angel López, Don Francisco de Saavedra, segundo intendente de Caracas (Sevilla, 1973).Google Scholar

13 See “Estado de las ganancias que ha producido el comercio de tabaco de Caracas vendido en Amsterdam …”, in AGI, Caracas, leg. 769, which gives the following proceeds (in reales de vellón):

14 Minuta of R.O. of June 1, 1790 to Treasurer General Montes, in AGI, Caracas, leg. 744.

15 Guillelmi to Valdes, April 30, 1789, no. 245, and Oct. 18, 1789, no. 362, in AGI, Caracas, leg. 114; also Fernández de León to Lerena, Nov. 22, 1791, no. 40, in AGI, Caracas, leg. 504. Although some Venezuelan provincial coinage was struck, it was recalled because of resembling the standard Mexican issue too closely. With the advent of comercio libre de negros the goods Venezuelans could exchange with foreign colonies became more diversified, reducing yearly coinage imports from this source to about 300,000 pesos fuertes yearly in the early 1790’s.

16 Directors of the Philippines Company to Valdés, Jan. 24, 1788; and minuta of R. O. of Feb. 24, 1788, to Intendant of Caracas, both in AGI. Caracas, leg. 773.

17 See AGI, Contaduría, leg. 647A, for early libranzas. José Avalos had used bills of exchange expedited from the Netherlands West Indies, and in 178S Saavedra used the device from Caracas — see AGI, Indiferente, leg 2333 for both incidents. Minuta of R.O. of Jan. 11, 1785, to Governor of Philippines, in AGI, Indif., leg. 1622; Directors of the Philippines Company to Valdés, Aug. 4,1787, and minuta of R.O. of Aug. 13,1787, to Intendant of the Philippines, both in AGI, Filipinas, leg. 986. For the involvement of the Cincos Gremios Mayores in the Philippines see Spinola, María Lourdes Diaz-Trechuelos, La Real Compañía de Filipinas (Seville, 1965), 18–19.Google Scholar The earliest libranza issued by the Manila factors which I was able to find was sent to Spain on December 22,1788 — see Marquina to Valdés, no. 32, in AGI, Filipinas, leg. 787. They continued to be issued until mid-year of 1799, by which time the governor of the Philippines began to retain remissible funds as advances on the Mexican situado which was in arrears. See Aguilar to Soler, August 6, 1799, nos. 71 and 72, in AGI, Filipines, leg. 794.

18 All through the first wave of libranzas tobacco continued to be sent to Europe. See, for example, Guillelmi to Valdés, Dec. 7, 1789, no. 380, in AGI, Caracas, leg. 114, and Fernández de León to Gardoqui, April 6, 1796, no. 945, in AGI, Caracas, leg. 507. Similarly, in the period that the Philippines Company monopolized the libranzas trade, small sums continued to be sent to Spain in cash. See Guillelmi to Valdés: June 14,1789, no. 270, in AGI, Caracas, leg. 114; and April 3,1790, no. 466, in AGI, Caracas, leg. 115.

19 Guillelmi to Valdés: Oct. 20, 1788, no. 122, in AGI, Caracas, leg. III; June 14,1789, no. 276, in AGI, Caracas, leg. 114; April 30, 1790, no. 488, in AGI, Caracas, leg. 115. The Company ultimately complained about its situation to Valdés who abruptly rejected its contentions. See Directors of the Philippines Company to Valdés, Aug. 23,1789, and the reply of Aug. 24,1789, both in AGI, Caracas, leg. 772.

20 For R.O. of February 21, 1791, see Arcila Farias, II, 44.

21 Saavedra’s request for 2,000,000 pesos worth of provincial coinage was predicated on the belief that this sum would be enough to simultaneously purchase annual crops and retire existing plata macuquina. The scenario in the text is, of course, merely theoretical. It does not consider balance of payments with other New World territories.

22 Alcalde to Lerena, July 13, 1791, no. 38, in AGI, Caracas, leg. 484. For assemblies of June 22 and 27, 1791, see actas in AGI, Caracas, leg. 775.

23 Fernández de León to Lerena: Oct. 15 and Nov. 22, 1791, nos. 12, 39, and 44, in AGI, Caracas, leg. 504. Between November 22,1791, and August 11,1792, at least 165,100 pesos were sent to Spain in cash — see Fernández de León to Lerena: Nov. 22, 1791; Feb. 22 and 27, April 20, and Aug. 11, 1792; nos. 36,69, 81, 132, and 210; all in AGI, Caracas, leg. 504. 150,000 pesos of this sum was from tobacco revenues.

24 José Basco y Vargas to Gálvez, June 17, 1787, no. 1019, in AGI, Ultramar, leg. 636. For the changes in policy direction in this period see Barbier, Jacques A., “The Culmination of the Bourbon Reforms, 1787–1792,” Hispanic American Historical Review, 57:1 (February, 1977), 51–68.CrossRefGoogle Scholar

25 Directors of the Philippines Company: to Valdés, March 15, 1788; and to Gardoqui, June 30, 1791 ; Consulado of Cadiz to Lerena, Sept. 3,1790, extracto of the Ministry of Finances thereon, and dictámenes of the three Directores de Comercio y de Real Hacienda. All of the above in AGI, Caracas, leg 769. See also acuerdo of Supremo Consejo de Estado: Oct. 5,1792, in AGI, Ultramar, leg. 636; and Oct. 26, 1792, in AHN, Estado, libro 5, p. 82v.

24 Fernández de León to Gardoqui: Jan. 20, 1793, no. 300, in AGI, Caracas, leg. 503; also Nov. 1, 1795, no. 879; March 4,1796, no. 929; and Sept. 7,1796, no. 1033 — all in AGI, Caracas, leg. 507. See also extracto of Ministry of Finances on letter of Fernández de León of July 31, 1793, in AGI, Caracas, leg. 769.

27 For the activities of the Havana Company see AGI, Ultramar, leg 886. See also Consulado of Cadiz to Gardoqui, Oct. 5,1792, in AGI, Consulados, libro 85; and minuta of R.O. of July 9,1793, to the Intendant of Caracas, in AGI, Ultramar, leg. 725.

28 See “Razón de las Reales Ordenes expedidas por el Exmo. Señor Superintendente General de Real Hacienda para la entrega de caudales en [Caracas],” in AGI, Indif., leg. 1705, and minuta of R.O. of May 21, 1793, in AGI, Caracas, leg. 799. Also Fernández de León to Gardoqui, June 23, 1793, no. 155, in AGI, Caracas 504. The sum allowed the Philippines Company was increased on March 25, 1793, to 200,000 pesos fuertes, but like those of other agraciados their agents only requested funds as and when the need arose.

29 Extracto of Ministry of Finances on letter of Alcalde of July 13,1791, which led to the minuta of R.O. of Sept. 4, 1792, which institutionalized the trade by decreeing that Caracas was to satisfy the agraciados, and remit any surplus in cash. Both are in AGI, Caracas, leg. 775.

30 Minuta of R.O. of Oct. 22, 1793, in AGI, Caracas, leg. 775. See also petition to H.M. of July 5, 1793, in the same location, and Fernández de León to Gardoqui, March 13, 1794, in Caracas, leg. 506. In a minuta of R.O. of Dec. 28, 1793, the intendant was authorized to give pesos corrientes in return for libranzas for an equal number of pesos fuertes. It does not seem, however, that these terms could be applied. See AGI, Caracas, leg. 799.

31 For trade with foreigners, see López de Quintana to Gardoqui, March 31 and June 30, 1795, nos. 715,803, and 804, in AGI, Caracas, leg. 514. For convoys, see Fernández de León to Gardoqui, June 25,1794, nos. 560 and 561, in AGI, Caracas, leg. 506; and López de Quintana to Gardoqui, May 15, 1795, no. 768, in AGI, Caracas, leg. 514.

32 Fernández de León to Gardoqui: Nov. 12, 1794, no. 633, in AGI, Caracas, leg. 506; and Nov. 1, 1795, no. 880, in AGI, Caracas, leg. 507. Also López de Quintana to Gardoqui, May 15, 1795, no. 766, in AGI, Indif., leg. 1705. The crown was still awarding funds in Venezuela as of June 25,1795, but by August 26, of that year was turning down requests on grounds of fiscal stringency in Caracas — see Fernández de León to Gardoqui, August 21, 1795, in AGI, Indif., leg. 1705, and extracto of Ministry of Finances on letter of Pedro de la Rea of July 15, 1795, in AGI, Indif., leg. 2318. Also Fernández de León: to Gardoqui, Feb. 27, 1796, no. 927, in AGI, Caracas, leg. 507; and to Várela, May 6, 1797, no. 1103, in AGI, Caracas, leg. 508.

33 Fernández de León: to Gardoqui, Dec. 22,1796, no. 1066, in AGI, Caracas, leg. 507, and April 21, 1797, no. 1099, in AGI, Caracas, leg. 508; to Saavedra, April 14, 1798, no. 1227, and March 31, 1798, no. 1205, both in AGI, Caracas, leg. 508; and to Soler, Nov. 3,1799, no. 1427, in AGI, Caracas, leg. 516. In a liquidation of the Robinson contract Intendant Arce reported that the Venezuelan government had sold 40,000 quintals of tobacco with an estimated cost of 528,810 pesos, for cash and goods for a value of 801,454 pesos, of which 42,000 pesos had been paid in Madrid and another 33,000 pesos were outstanding. See Arce to Soler, May 10, 1803, no. 22, in AGI, Caracas, leg. 516.

34 Fernández de León to Soler, Dec. 14, 1799, no. 1432, in AGI, Caracas, leg. 509; and minuta of R.O. of Feb. 13, 1800, to Captain General of Venezuela, in AGI, Indif., leg. 2467 (note that an R.O. Reservado of this date modified the latter somewhat).

35 Fernándezde León to Soler: July 13, 1801, no. 1597; Aug. 7, 1801, no. 1618; Oct. 16, 1801, no. 1640 — all in AGI, Caracas, leg. 512. For the real giro see Reglamento e instrucción del real giro.... (Madrid, 1802), in AGS, DGT, inv. 23, leg. 9. The crown’s acceptance of Venezuela’s opening of its ports to neutral ships is absolutely clear. For a general picture of the relationship between trade and finance under Charles IV see Jacques A. Barbier, “Trade and Treasury: the Colonial Policy of Charles IV”, paper presented at the Annual Meeting of the American Historical Association, San Francisco, 1978. Also “Peninsular Finance and Colonial Trade: the Dilemma of Charles IVs Spain”, forthcoming, Journal of Latin American Studies, 12:1 (May, 1980), 21–37.

36 Minuta of R.O. of Dec. 19, 1794, to Juez de Arribadas of Santander, in AGI, Indif., leg. 2438. The real giro in effect took the place of those agreements negotiated during the first wave of libranzas which specified prepayment — see minuta of R.O. of May 21,1793, to Intendant of Caracas, in AGI, Caracas, leg. 799; and Aguilar to Gardoqui, July 22, 1794, no. 48, in AGI, Filipinas, leg. 794.

37 Fernández de León to Soler: Jan. 29, 1802, no. 1644; and Feb. 21, 1802, no. 1053 — both in AGI, Caracas, leg. 513. López de Quintana to Soler: July 14, 1802, no. 1740; and Dec. 24, 1802, no. 1805 — both in AGI, Caracas, leg. 515. Arce to Soler, April 24, 1804, no. 223, in AGI, Caracas, leg. 518.

38 Minuta of R.O. of September IS, 1802, to Intendant of Caracas, in AGI, Caracas, leg. 802. Fernández de León to Soler: May 28, 1802, no. 1712; and June 17, 1802, no. 1727 — both in AGI, Caracas, leg. 513. Arce to Soler; July 14, 1803, nos. 70 and 72, in AGI, Caracas, leg. 516.

39 Arce to Soler: April 24,1804, no. 228, in AGI, Caracas, leg. 518; Oct. 5,1804, no. 329, and Nov. 29,1804, nos. 381 and 383, in AGI, Caracas, leg. 519; Feb. 2, 1805, no. 406, and Nov. 18,1805, no. 7 reservada, in AGI, Caracas, leg. 486.

40 Minuta of R.O. of Jan. 16, 1806 to Intendant of Caracas, in AGI, Caracas, leg. 804. See also nota of mesa of Oct. 9, 1805, and resolution of minister of Oct. 14, of that year, in AGI, Indif. leg. 1705.