The Spanish monarchy as a contractor state in the eighteenth century: Interaction of political power with the market

Abstract

The concept of the contractor state has been formulated to underline the existence of a necessary relation between state and private markets in the eighteenth century. Although all states acted as contractors in this period, it is necessary to clarify the relationship between the rulers and the market. Significant differences can be observed between parliamentary governments, which were comfortable with this situation, and the absolute monarchies, which constantly tried to interfere. The Spanish monarchy belongs to the second type, as this article tries to prove. This is a study about such a situation’s relevance and consequences with regard to the provision of uniforms for the army in particular, and for Spanish economic growth in general.

Keywords:

• Fiscal-military state
• contractor state
• national economies
• economic growth
• public finances
• private market
• provision business
• army and navy
• economic history
• Europe pre-1913

Notes

1. Brewer, The Sinews of Power; Bonney, The Rise of the Fiscal State; Storrs, The Fiscal-Military State; Torres Sánchez, Constructing a Fiscal Military; Yun et al., The Rise of Fiscal States.

2. Bannerman, Merchants and the Military; Glete, War and the State; Conway and Torres, The Spending of the States; Parrott, The Business of War; Fynn-Paul et al., “Introduction”; González Enciso, War, Power and the Economy.

3. Harding, The Emergence; Knight and Wilcox, Sustaining the Fleet; Morris, The Foundations; Grahma and Walsh, The British Fiscal-Military.

4. Hart, The Dutch Wars; Brandon, War, Capital.

5. See references in Plouviez, “The French Navy”; Pourchasse, “Military entrepreneurs”; González Enciso, “War contracting”, all in this issue.

6. Developed extensively in Torres Sánchez et al., “Introduction”, in this issue.

7. Harding and Solbes, The Contractor State; Bowen et al., “Forum”.

8. Brandon, “The Dutch Republic”: 242-248; Conway et al. “Eighteenth-Century Britain”: 248-253; Félix and Pourchasse, “France and the Contractor”: 257-265; González Enciso et al. “XVIIIth Century Spain”: 253-257; Dedieu, “Les groupes financiers”, 87-104.

9. Thompson and Beltrán, Guerra y decadencia.

10. Rogers, The Military Revolution; Parrott, “¿Revolución militar?”; Torres Sánchez et al., “Introduction”, in this issue.

11. Bertrand et al., Haciendas locales; Dubet and Solbes Ferri, La construcción.

12. Torres Sánchez, “Administración o asiento”, 165.

13. Acemoglu et al., “The Rise of Europe”, focuses on highlighting the opportunities generated by Atlantic trade, which led to institutional changes that encouraged economic development.

14. Torres Sánchez, Constructing a Fiscal Military.

15. Torres Sánchez, Military Entrepreneurs.

16. Bannerman, Merchants and the Military; Parrott, The Business of War.

17. Acemoglu et al., “The Rise of Europe”, 572.

18. Solbes Ferri, “Campillo y Ensenada”, 201–34.

19. Torres Sánchez, “Los Cinco Gremios Mayores”, 407–432; Torres Sánchez, “Administración o asiento”, 159–199; González Enciso, “War contracting and Artillery”, in this issue; Solbes Ferri, “Contracting and Accounting”, 273–293; Solbes Ferri, “Campillo y Ensenada”, 201–234.

20. González Enciso et al., “Eighteen-century Spain”, 253–257.

21. Archivo General de Simancas (henceforth AGS), Dirección General del Tesoro (henceforth DGT), Inventario (henceforth Invº) 16, guión 24, legajos (henceforth legs.) 1, 2 and 3; AGS, DGT, Invº 25, guión 1, leg. 17; AGS, Secretaría y Superintendencia de Hacienda (henceforth SSH), leg. 721.

22. Dubet, “Tesorería Mayor”; Dubet, La Hacienda Real; Torres Sánchez, La llave; Solbes Ferri, “La Hacienda Real”, 141–180.

23. Jurado Sánchez, El gasto de la Hacienda, 171–172.

24. Solbes Ferri, “Contracting and Accounting”, 274–277 and 281–283.

25. Kamen, La guerra de Sucesión, 223-267.

26. González Enciso, Estado e industria; Torró Gil, La Reial Fàbrica.

27. Torres Sánchez et al., “Introduction”, 16–19.

28. The Marquis of Iturbieta, Matías de Valparda, Mateo López de Sedano, Sebastián de Eguiluz or José Cebrián, among many others. AGS, DGT, Invº 16, guión 24, leg. 1; Solbes Ferri, “Mecanismos financieros”, 450–454.

29. Solbes Ferri, “Secretarías, asentistas y militares”.

30. El Pardo, 19/03/1743. Planta y reglas que por punto general deben observarse en la Tesorería Mayor (Archivo Histórico Nacional, Ministerio de Hacienda – Fondo Contemporáneo, libro 8015, ff. 22–34).

31. Capella y Matilla Tascón, Los Cinco gremios.

32. AGS, DGT, Invº 16, guión 24, leg. 1. Solbes Ferri, “Campillo y Ensenada”, 221–231.

33. AGS, DGT, Invº 25, guión 1, leg. 17. Solbes Ferri, “Campillo y Ensenada”, 231–232.

34. AGS, DGT, Invº 16, guión 24, leg. 1.

35. Buen Retiro, 10/12/1753. Instrucción para los tesoreros de Exército y Provincia, depositarios y pagadores, cuyas cuentas están mandadas comprehender en la del Thesorero General (AGS, SSH, leg. 271; Archivo General de Indias, Arribadas, leg. 524).

36. Solbes Ferri, “Mecanismos financieros”.

37. AGS, DGT, Invº 25, Guión 1, leg. 17, contrato de Juan Roca y cía. AGS, SSH, 721-1, folº 26–33, contrato de Manuel de Iruegas.

38. González Enciso, Estado e industria, 225.

39. AGS, DGT, Invº 16, Guión 24, leg. 49.

40. Solbes Ferri, “Administrative and Accounting”, 357–384.

41. AGS, DGT, Invº 25, guión 1, leg.17.

42. AGS, SSH, leg. 721-2.

43. Tedde de Lorca, El Banco.

44. AGS, DGT Invº 16, guión 24, leg. 3.

45. AGS, DGT, Invº 25, guión 1, leg. 17.

46. Archivo Histórico Nacional, Ministerio de Hacienda – Fondo Contemporáneo, libro 8014, nº 709. Torres Sánchez, “Los Cinco Gremios Mayores”, 407–411.

47. Gaspar Sainz, Felipe Escanero and Tomás Rey. AGS, DGT, Invº 16, guión 24, leg. 3.