Castilian and Portuguese merchants in collaboration (1580-1590). Has the Hispanic Monarchy favored Iberian commercial partnerships?

The Iberian Union allowed the existence of formal mechanisms of government authority in Portugal. In what concerns the Iberian trade dynamics, including the colonial circuits, the Habsburgs legislated according to those that would be the most politically convenient circumstances, making an impact on Iberian affairs. Over the last decade, historical literature has highlighted the transnational nature of Early Modern business partnerships. On the other hand, Iberian scholars have put forward many case studies that show formal or informal Portuguese participations in the Spanish Indies affairs. However, the inverse situation as not been considered yet. What was the role played by Castilian merchants in the Portuguese colonial trade? This paper aims to present data about the collaboration between Portuguese and Castilian merchants within the European and the overseas trade dynamics, approaching the Iberian Union as an event that favored these business partnerships. It also debates the formal or informal nature of these relationships. Were they promoted by the State’s policies or, alternatively, were they devised as a means to bypass the Crown’s monopolistic policies? For this propose, we will analyze Portuguese notarial records from the period between 1580 and 1590.

The marriage of João de Alarcão and Margarida Soares and the creation of a transnational Portuguese-Spanish nobility

The main aim of this chapter is to analyze the social and political effects of dynastic marriages between the Portuguese and Castilian-Aragonese crowns on the configuration of transnational, aristocratic families during the sixteenth and seventeenth centuries. To illustrate these questions we have chosen to follow the Soares de Alarcão family (known in Spain as Suárez de Alarcón) and the paths it took between the royal houses of Portugal and Castile for seven generations. The working hypothesis of the chapter is that the identity of the Iberian nobility during this era was characterized by a shared noble culture rather than by any particular features derived from the family’s land of origin. That assumption allows us to discuss whether the use of a particular language or culture indicates ties or political loyalties based on criteria of nationality, or, at the very least, place of birth. Therefore, this essay discusses the miscegenation of Iberian nobilities derived from dynastic marriages. It articulates the structural characteristics of this group and its political impact with the individual trajectories and historical contexts in which they developed. While these topics can be of interest for the comprehension of Portuguese early modern history, they can also help us to reflect more broadly on processes of identity construction.

Trans-national cooperation: an asset in the Portuguese overseas trade. Foreigners operating in the Portuguese overseas trade, 1580-1590

This paper aims to discuss the role of foreign merchants, operating from Portugal, in the Portuguese overseas trade, during the first ten years of Iberian Union. The focus is not in products or routes, but in the mechanisms of association of such merchants. Iberian Union created a legal framework which prohibited the interference and trade of Portuguese agents in the Spanish Empire and vice-versa. Due to the imperialist wars of the Habsburgs, the Portuguese Empire also suffered from Dutch and English rivalry both in the Indic and in the Atlantic and also from the embargos of Dutch and English products and ships in Iberian ports. In such conjuncture, how did merchants related with each other? What was the impact of the political union of the Portuguese and Spanish crowns in trading associations? The used data sources are the notarial contracts of Lisbon for the same period. The paper highlights the role of Castilian merchants in the Portuguese trade, but it also stresses that Iberian partnerships have prevailed before 1580. The role of other merchants, such as Flemish/Dutch, Germans, Italians and French, is also considered. The paper discusses how and why did these merchants join in trans-national partnerships and what was their role in the Portuguese trade network at the time.

Early Modern Trading Networks in Europe. Cooperation and the case of Simon Ruiz.

In the early modern period, trade became a truly global phenomenon. The logistics, financial and organizational complexity associated with it increased in order to connect distant geographies and merchants from different backgrounds. How did these merchants prevent their partners from dishonesty in a time where formal institutions and legislation did not traverse these different worlds? This book studies the mechanisms and criteria of cooperation in early modern trading networks. It uses an interdisciplinary approach, through the case study of a Castilian long-distance merchant of the sixteenth century, Simon Ruiz, who traded within the limits of the Portuguese and Spanish overseas empires. Early Modern Trading Networks in Europe discusses the importance of reciprocity mechanisms, trust and reputation in the context of early modern business relations, using network analysis methodology, combining quantitative data with qualitative information. It considers how cooperation and prevention could simultaneously create a business relationship, and describes the mechanisms of control, policing and punishment used to avoid opportunism and deception among a group of business partners. Using bills of exchange and correspondence from Simon Ruiz’s private archive, it charts the evolution of this business network through time, debating which criteria should be included or excluded from business networks, as well as the emergence of standards. This book intends to put forward a new approach to early modern trade which focuses on individuals interacting in self-organized structures, rather than on states or empires. It shows how indirect reciprocity was much more frequent than direct reciprocity among early modern merchants and how informal norms, like ostracism or signaling, helped to prevent defection and deception in an effective way.

The Evolution of Norms in Trade and Financial Networks in the First Global Age: the case of Simon Ruiz's network

In the 16th century, merchants and bankers gained a social influence and political relevance, due to their capacity of ‘faire travailler l’argent des autres’ (Benassar 1972:50). For the success of their activity, they built evolving networks with cooperative partners. These networks were much more than the sum of all partners. In the case study of the Castilian merchant Simon Ruiz, the network functioned in an unique way and independent from any formal institutional control. Its functioning varied in how different partners were associated and the particular characteristics and contents of these social ties. Being a self-organized network, since the formal institutions of trade regulation and the Crown control didn’t influence the network functioning, the Simon Ruiz network was deeply embedded in the economic and financial performance of the Hispanic Empires, in two different ways. The first, purely commercial. The monopolistic regime which was applied by the two crowns in the trade of certain colonial goods was insufficient to the costs of imperial maintenance. In such manner, particulars tried to rent a contract of exploration of trade, paying an annual sum to the crown, as in the Portuguese trade. Some of these agents also moved along Simon Ruiz’s network. But others were involved in relations with the imperial crowns on a second way, the finance. Maintaining Empires implied a lot of human, technical but also financial means, and most of the times Kings were forced to recur to these merchants, as we will demonstrate. What were the implications of these collaborative relations in both parts? The main goal of this paper is to comprehend the evolution of informal norms within Simon Ruiz’s network and how they influenced cooperative behavior of the agents, particularly analyzing mechanisms of sanctioning, control, punishment and reward, as well as their consequences in different dimensions: future interactions, social repercussions and in agent’s economic health and activity. The research is based in the bills of exchange and commercial correspondence of the private archive of Simon Ruiz, located in the Provincial Archive of Valladollid, Spain.