Commercial Credit in New Spain in the Late 18th Century
Commercial Credit in New Spain in the Late 18th Century
- Guillermina del Valle PavónGuillermina del Valle PavónInstituto de Investigaciones Dr. José Ma. Luis Mora
Summary
The large-scale merchants of Mexico City controlled the main trade circuits within and outside of New Spain, thanks to the dominance they exercised over currency in circulation, commercial credit, and financial credit. This was possible due to the control they held over silver and their ability to construct dense networks of credit in the viceroyalty, as well as in Cadiz, Manila, and many other commercial enclaves of the Spanish Empire. These commercial actors were the largest buyers of silver, financed mining production, dominated trade, and engaged in other productive activities. In order to have more money in circulation to conduct their business, they secured loans for considerable sums from other merchants, were the main recipients of loans granted by religious corporations, and received interest payments on loans made to financiers. To maintain liquidity, they limited the disbursement of capital they had accumulated by bartering merchandise, making payments in kind, buying in installments, and making payments by means of “libranzas,” a kind of promissory note or payment order.
Subjects
- History of Mexico
