Staying Afloat: Risk and Uncertainty in Spanish Atlantic World Trade, 1760-1820 (Social Science History)

Early modern, long-distance trade was fraught with risk and uncertainty, driving merchants to seek means (that is, institutions) to reduce them. In the traditional historiography on Spanish colonial trade, the role of risk is largely ignored. Instead, the guild merchants are depicted as anti-competitive monopolists who manipulated markets and exploited colonial consumers. Jeremy Baskes argues that much of the commercial behavior interpreted by modern historians as predatory was instead designed to reduce the uncertainty and risk of the Atlantic world trade.This book discusses topics from the development and use of maritime insurance in eighteenth-century Spain to the commercial strategies of Spanish merchants; the traditionally misunderstood effects of the 1778 promulgation of "comercio libre," and the financial chaos and bankruptcies that ensued; the economic rationale for the Spanish flotillas; and the impact of war and privateering on commerce and business decisions. By elevating risk to the center of focus, this multifaceted study makes a number of revisionist contributions to the late colonial economic history of the Spanish empire. Early Modern, Long-distance Trade Was Fraught With Risk And Uncertainty, Driving Merchants To Seek Means To Reduce Them. In The Traditional Historiography On Spanish Colonial Trade, The Role Of Risk Is Largely Ignored. Instead, The Guild (consulado) Merchants Are Depicted As Anti-competitive Monopolists Who Manipulated Markets And Exploited Colonial Consumers. This Book Argues That Much Of The Commercial Behaviour Interpreted By Modern Historians As Predatory Was Instead Designed To Reduce The Uncertainty And Risk Of Atlantic World Trade. Introduction : Risk And Uncertainty -- Staying Informed : The Risks Of Poor Information In Atlantic World Trade -- The Institutions Of Trade And The Reduction Of Market Risk : The Convoy System -- Comercio Libre And The Rise Of Commercial Risk -- The Rising Demand For Credit And The Escalation Of Risk In The Post-1778 Era -- Trade In War And Peace -- Underwriting Risk : The Structure And Organization Of Insurance Partnerships In Late Eighteenth-century Cadiz -- Insuring Against Risk : Analysis Of Insurance Policies And The Perception Of Risk In Atlantic World Trade -- War And Commercial Crisis : The Profitability Of The Cadiz Insurance Industry In The 1790s -- Conclusion : Staying Afloat. Jeremy Baskes. Includes Bibliographical References (pages 283-379) And Index. Early modern, long-distance trade was fraught with risk and uncertainty, driving merchants to seek means (that is, institutions) to reduce them. In the traditional historiography on Spanish colonial trade, the role of risk is largely ignored. Instead, the guild merchants are depicted as anti-competitive monopolists who manipulated markets and exploited colonial consumers. Jeremy Baskes argues that much of the commercial behavior interpreted by modern historians as predatory was instead designed to reduce the uncertainty and risk of Atlantic world trade. This book discusses topics from the development and use of maritime insurance in eighteenth- century Spain to the commercial strategies of Spanish merchants; the traditionally misunderstood effects of the 1778 promulgation of "comercio libre, " and the financial chaos and bankruptcies that ensued; the economic rationale for the Spanish flotillas; and the impact of war and privateering on commerce and business decisions. By elevating risk to the center of focus, this multifaceted study makes a number of revisionist contributions to the late colonial economic history of the Spanish empire -- Provided by Publisher This book examines the enormous riskiness of transatlantic trade in 18th century Spain and argues that many of the long-condemned commercial practices were vital accommodations to pervasive risk and uncertainty.