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Risk and Failure in Tax Farming: De Bruijn & Cloots of Lisbon and the Portuguese Tobacco Monopoly, 1722–1727

Published online by Cambridge University Press:  07 May 2019

Abstract

By examining how a Dutch firm in Lisbon operated two Portuguese tobacco tax farms from 1722 to 1727 and failed subsequently, this article brings together, on the one hand, research on the relationship between state and business groups through a monopolistic rent provided by the empire and, on the other hand, a growing literature discussing institutional and economic variables, as well as human agency, in business failure in early modern Europe. The article aims to achieve two goals. The first is to shed light on the perspective of the Dutch tax farmers, highlighting why they chose to incur the risks of managing a nationwide sales monopoly and the business model they implemented to maximize profits and mitigate risks, while the second is to examine the general and specific reasons behind their ultimate downfall. It concludes that, despite the organizational innovations they introduced and that led them to exploit interconnected businesses, the Dutch partners were unable to overcome the negative effects of conjunctural and contingent factors that temporarily squeezed the domestic consumption of tobacco.

Type
Articles
Copyright
Copyright © 2019 Research Institute for History, Leiden University 

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Footnotes

*

Susana Münch Miranda is research fellow at GHES/CSG – ISEG/ULisboa. Her current research interests comprise Colonial governance (Iberian empires), fiscal history, and business history.

References

Bibliography

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Biblioteca Nacional de Portugal, LisbonGoogle Scholar
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Ordenações filipinas, vols. 4–5. Lisbon: Fundação Calouste Gulbenkian, 1985.Google Scholar
Regimento da Junta da Administração do Tabaco. Lisbon: Na Officina de Domingos Gonçalves, 1741.Google Scholar
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Alden, Dauril. “Vicissitudes of Trade in the Portuguese Atlantic Empire during the First Half of the Eighteenth Century: A Review Article”. The Americas 32:2 (1975): 282291.Google Scholar
Almeida, Fortunato de. História de Portugal, vol. 5. Coimbra: F. de Almeida, 1927.Google Scholar
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Antunes, Cátia, Miranda, Susana Münch, and Salvado, João Paulo. “The Resources of Others: Dutch Exploitation of European Expansion and Empires, 1570–1800.” Tijdschrift voor Geschiedenis 131:3 (2018): 501–21.Google Scholar
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Costa, Leonor Freire, Lains, Pedro, and Miranda, Susana Münch. An Economic History of Portugal, 1143–2010. Cambridge: Cambridge University Press, 2016.Google Scholar
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Ekelund, Robert B., and Tollison, Robert D.. Politicized Economies: Monarchy, Monopoly and Mercantilism. College Station: Texas A&M University Press. 1997.Google Scholar
Fisher, Stephen. “Lisbon as a Port Town in the Eighteenth Century.” In I porti come impresa económica: Atti della “Diciannovesima Settimana di studi,” 2–6 maggio 1987, edited by Cavaciocchi, Simonetta, 703–31. Neuilly Sur Seine: Le Monnier, 1988.Google Scholar
Furtado, Júnia. Homens de negócio: a interiorização da metrópole e do comércio nas Minas setecentistas. São Paulo: Hucitec, 1999.Google Scholar
Gauci, Perry. The Politics of Trade: The Overseas Merchant in State and Society, 1660–1720. Oxford: Oxford University Press, 2001.Google Scholar
Hanson, Carl A.Monopoly and Contraband in the Portuguese Tobacco Trade, 1624–1702.” Luso-Brazilian Review 19:2 (1982): 149–68.Google Scholar
Hespanha, António Manuel. As vésperas do Leviathan: instituições e poder político. Portugal (século XVII). Coimbra: Almedina, 1994.Google Scholar
Ianeva, Svetla. “Financing the State? Tax-Farming as a Source of Individual Wealth in the Nineteenth Century.” Oriens 37 (2009): 209–24.Google Scholar
Johnson, Noel, and Koyama, Mark. “Tax Farming and the Origins of State Capacity in England and France.” Explorations in Economic History 51 (2014): 120.Google Scholar
Labourdette, Jean-François. La nation française à Lisbonne de 1669 a 1790: entre colbertisme et libéralisme. Paris: Fondation Calouste Gulbenkian, 1988.Google Scholar
Lugar, Catherine. “The Portuguese Tobacco Trade and Tobacco Growers in Bahia in the Late Colonial Period.” In Essays Concerning the Socioeconomic History of Brazil and Portuguese India, edited by Alden, Dauril and Dean, Warren, 2670. Gainesville: University Press of Florida, 1977.Google Scholar
Macedo, Jorge Borges de. Problemas de história da indústria portuguesa no século XVIII. 2nd ed. Lisbon: Querco, 1982.Google Scholar
Madureira, Nuno. Mercado e privilégios. A indústria portuguesa entre 1750 e 1834. Lisbon: Editorial Estampa, 1997.Google Scholar
Mathias, Peter. “Risk, Credit and Kinship in Early Modern Enterprise.” In The Early Modern Atlantic Economy, edited by McCusker, John and Morgan, Kenneth, 1535. Cambridge: Cambridge University Press, 2000.Google Scholar
Nardi, Jean Baptiste. O fumo brasileiro no período colonial: lavoura, comércio e administração. São Paulo: Editora Brasiliense, 1996.Google Scholar
Nardi, Jean Baptiste. “Retrato de uma indústria no Antigo Regime: o estanco real do tabaco em Portugal, 1675–1830.” Arquivos do Centro Cultural Português 28 (1990): 321–39.Google Scholar
Paesie, Ruud. Voor zilver en Zeeuws belang: De rampzalige Zuidzee-expeditie van de Middelburgse Commercie Compagnie, 1724–1727. Zutphen: Walburg Pers, 2012.Google Scholar
Pamuk, Şevket. “Changes in Factor Markets in the Ottoman Empire, 1500–1800.” Continuity and Change 24:1 (2009): 107–36.Google Scholar
Parmentier, Jan. De holle compagnie. Smokkel en legale handel onder Zuidnederlandse vlag in Bengalen, ca. 1720–1744. Hilversum: Verloren, 1992.Google Scholar
Pedreira, Jorge. Estrutura industrial e mercado colonial: Portugal e Brasil, 1780–1830. Lisbon: Difel, 1994.Google Scholar
Pedreira, Jorge, “To Have and to Have Not. The Economic Consequences of Empire: Portugal, 1415–1822.” Revista de História Económica 16:1 (1998): 93122.Google Scholar
Pedreira, Jorge. Os homens de negócio da praça de Lisboa de Pombal ao Vintismo, 1755–1822: diferenciação, reprodução e identificação de um grupo social. PhD diss., Universidade Nova de Lisboa, 1995.Google Scholar
Pedreira, Jorge. “Tratos e contratos: actividades, interesses e orientações dos investimentos dos negociantes da praça de Lisboa (1755–1822).” Análise Social 31:136–137 (1996): 355–79.Google Scholar
Pereira, Pedro Teixeira. “Os Pedrossem—uma família de elite no Porto setecentista.” Douro: Estudos e Documentos 8:15 (2003): 103–39.Google Scholar
Pijning, Ernst. “A New Interpretation of Contraband Trade.” Hispanic American Historical Review 81:3 (2001): 733–8.Google Scholar
Price, Jacob. “Tobacco Use and Tobacco Taxation: A Battle of Interests in Early Modern Europe.” In Consuming Habits: Drugs in History and Anthropology, edited by Goodman, Jordan, Lovejoy, Paul E., and Sherratt, Andrew, 165–85. London: Routledge, 1995.Google Scholar
Price, Jacob. “Transaction Costs: A Note on Merchant Credit and the Organization of Private Trade.” In The Rise of Merchant Empires: Long-Distance Trade in the Early Modern World, 1350–1750, edited by Tracy, James, 276–97. Cambridge: Cambridge University Press, 1990.Google Scholar
Gordillo, Rodríguez, Manuel, José. “El abastecimiento de tabaco del Brasil a las Reales Fábricas de Sevilla en el primer tercio del siglo XVIII.” In XIV Coloquio de Historia Canario-Americana, de Gran Canaria, Las Palmas, 18711887.Google Scholar
Safley, Thomas, ed. The History of Bankruptcy: Economic, Social and Cultural Implications in Early Modern Europe. London: Routledge, 2013.Google Scholar
Salvado, João Paulo. “O estanco do tabaco em Portugal: contrato-geral e consórcios mercantis, 1702–1755.” In Política y hacienda del tabaco en los impérios ibéricos, siglos XVII-XIX, edited by Luxán, Santiago de, 133–53. Madrid: Centro de Estudios Políticos y Constitucionales, 2014.Google Scholar
Salvado, João Paulo. “Uma revolução de escala? O impacte do estanco no comércio de tabaco brasileiro (Lisboa, primeira metade do século XVIII).” In El tabaco y la esclavitud en la rearticulación imperial ibérica, (S. XV-XX), edited by Luxán, Santiago de and Rego, João Figueirôa. Évora: CIDEHUS-Universidade de Évora, 2018.Google Scholar
São Payo, Luiz de Mello Vaz de. “Uma linhagem cosmopolita do Porto.” In Congresso internacional de las ciencias genealógicas y heraldica, vol. 3, 91127. Madrid: Ediciones Hidalguia, 1983.Google Scholar
Schwartz, Stewart. “Colonial Brazil, Plantations and Peripheries, c. 1580–c. 1750.” In The Cambridge History of Latin America. Colonial Latin America, edited by Bethell, Leslie, vol. 2, 423–99. Cambridge: Cambridge University Press, 1984.Google Scholar
Shaw, Lucy M. E. The Anglo-Portuguese Alliance and the English Merchants in Portugal, 1654–1810. Manchester: Ashgate, 1998.Google Scholar
Stein d'Altenstein, Isidore de. Annuaire de la noblesse de Belgique, vol. 16. Brussels: August Decq, 1862.Google Scholar
Torres Sánchez, Rafael. “The Failure of the Spanish Crown's Fiscal Monopoly over Tobacco in Catalonia during the 18th Century.” Journal of European Economic History 34:3 (2005): 721–60.Google Scholar
White, Eugene. “From Privatized to Government-Administered Tax Collection: Tax Farming in Eighteenth-Century France.” The Economic History Review 57:4 (2004): 636–63.Google Scholar
Zahedieh, Nuala. The Capital and the Colonies: London and the Atlantic economy, 1660–1700. Cambridge: Cambridge University Press, 2009.Google Scholar
Arquivo Distrital de LisboaGoogle Scholar
- Registos Paroquiais de Lisboa, Freguesia de S. Cristóvão, Casamentos, book 1.Google Scholar
Arquivo Nacional da Torre do Tombo, LisbonGoogle Scholar
- Junta da Administração do Tabaco:Google Scholar
- Books 2, 6–7, 13, 17, 20, 57, 85, 193, 199, 208, 232.Google Scholar
- Bundles 9, 11–14, 30, 52.Google Scholar
Biblioteca Nacional de Portugal, LisbonGoogle Scholar
- Book 235.Google Scholar
Collecção chronologica de leis extravagantes, vol. 1. Coimbra: Na Real Imprensa da Universidade, 1819.Google Scholar
Colecção dos tratados, convenções, contratos e atos públicos celebrados entre a coroa de Portugal e as mais potencias desde 1640 até ao presente, vol. 1. Edited by Ferreira Borges de Castro, J.. Lisbon: Imprensa Nacional, 1856.Google Scholar
Lisanti, Luís, ed. Negócios coloniais: uma correspondência comercial do século XVIII. 5 vols. São Paulo: Ministério da Fazenda, 1973.Google Scholar
Ordenações filipinas, vols. 4–5. Lisbon: Fundação Calouste Gulbenkian, 1985.Google Scholar
Regimento da Junta da Administração do Tabaco. Lisbon: Na Officina de Domingos Gonçalves, 1741.Google Scholar
Silva, J. J. de Andrade e. Collecção chronologica da legislação portugueza, 1657–1674. Lisbon, 1856.Google Scholar
Alden, Dauril. “Vicissitudes of Trade in the Portuguese Atlantic Empire during the First Half of the Eighteenth Century: A Review Article”. The Americas 32:2 (1975): 282291.Google Scholar
Almeida, Fortunato de. História de Portugal, vol. 5. Coimbra: F. de Almeida, 1927.Google Scholar
Antunes, Cátia. Globalisation in the Early Modern Period: The Economic Relationship between Amsterdam and Lisbon, 1640–1705. Amsterdam: Aksant, 2004.Google Scholar
Antunes, Cátia, Miranda, Susana Münch, and Salvado, João Paulo. “The Resources of Others: Dutch Exploitation of European Expansion and Empires, 1570–1800.” Tijdschrift voor Geschiedenis 131:3 (2018): 501–21.Google Scholar
Bonney, Richard, ed. Economic Systems and State Finance. Oxford: Clarendon Press, 2002.Google Scholar
Bonney, Richard, ed. The Rise of the Fiscal State in Europe, c. 1200–1815. Oxford: Oxford University Press, 1999.Google Scholar
Boxer, Charles. “Brazilian Gold and British Traders in the First Half of the Eighteenth Century.” The Hispanic American Historical Review 49:3 (1969): 454–72.Google Scholar
Cordes, Albrecht, and Beerbühl, Margrit Schulte, eds. Dealing with Economic Failure: Between Norm and Practice (15th to 21st Century). Frankfurt: Peter Lang, 2016.Google Scholar
Costa, Leonor Freire, and Salvado, João Paulo. “Consumo, inovação organizacional e fiscalidade do tabaco em Portugal, 1701–1803.” In El tabaco y la esclavitud en la rearticulación imperial ibérica, (S. XV-XX), ed. de Luxán, Santiago and Figueirôa-Rego, João, Évora, CIDEHUS-Universidade de Évora, 2018.Google Scholar
Costa, Leonor Freire, Rocha, Maria Manuela, and de Sousa, Rita Martins. O ouro do Brasil. Lisbon: Imprensa Nacional-Casa da Moeda, 2013.Google Scholar
Costa, Leonor Freire, Rocha, Maria Manuela, and Araújo, Tanya. “Social Capital and Economic Performance: Trust and Distrust in Eighteenth-Century Gold Shipments from Brazil.” European Review of Economic History 15 (2010): 127.Google Scholar
Costa, Leonor Freire, Lains, Pedro, and Miranda, Susana Münch. An Economic History of Portugal, 1143–2010. Cambridge: Cambridge University Press, 2016.Google Scholar
Costa, Leonor Freire. “Os primórdios do tabaco brasileiro: monopólios e expansão do mercado (1600–1700).” In Política y hacienda del tabaco en los impérios ibéricos (siglos XVII-XIX), edited by Luxán, Santiago de, 2145. Madrid: Centro de Estudios Políticos y Constitucionales, 2014.Google Scholar
Costa, Leonor Freire. O transporte no Atlântico e a Companhia Geral do Comércio do Brasil, 1580–1663. 2 vols. Lisbon: Comissão Nacional para as Comemorações dos Descobrimentos Portugueses, 2002.Google Scholar
Crespo Solana, Ana. El comércio marítimo entre Amsterdam y Cádiz, 1713–1778. Madrid: Banco de España, 2000.Google Scholar
Crespo Solana, Ana. “A Network-Based Merchant Empire: Dutch Trade in the Hispanic Atlantic, 1680–1740.” In Dutch Atlantic Connections, 1680–1800: Linking Empires, Bridging Borders, edited by Oostindie, Gert and Roitman, Jessica V., 139–58. Leiden: Brill, 2014.Google Scholar
Donovan, William M. Commercial Enterprise and Luso-Brazilian Society during the Brazilian Gold Rush: The Mercantile House of Francisco Pinheiro and the Lisbon to Brazil Trade, 1695–1750. PhD diss., Johns Hopkins University (Baltimore), 1990.Google Scholar
Ekelund, Robert B., and Tollison, Robert D.. Politicized Economies: Monarchy, Monopoly and Mercantilism. College Station: Texas A&M University Press. 1997.Google Scholar
Fisher, Stephen. “Lisbon as a Port Town in the Eighteenth Century.” In I porti come impresa económica: Atti della “Diciannovesima Settimana di studi,” 2–6 maggio 1987, edited by Cavaciocchi, Simonetta, 703–31. Neuilly Sur Seine: Le Monnier, 1988.Google Scholar
Furtado, Júnia. Homens de negócio: a interiorização da metrópole e do comércio nas Minas setecentistas. São Paulo: Hucitec, 1999.Google Scholar
Gauci, Perry. The Politics of Trade: The Overseas Merchant in State and Society, 1660–1720. Oxford: Oxford University Press, 2001.Google Scholar
Hanson, Carl A.Monopoly and Contraband in the Portuguese Tobacco Trade, 1624–1702.” Luso-Brazilian Review 19:2 (1982): 149–68.Google Scholar
Hespanha, António Manuel. As vésperas do Leviathan: instituições e poder político. Portugal (século XVII). Coimbra: Almedina, 1994.Google Scholar
Ianeva, Svetla. “Financing the State? Tax-Farming as a Source of Individual Wealth in the Nineteenth Century.” Oriens 37 (2009): 209–24.Google Scholar
Johnson, Noel, and Koyama, Mark. “Tax Farming and the Origins of State Capacity in England and France.” Explorations in Economic History 51 (2014): 120.Google Scholar
Labourdette, Jean-François. La nation française à Lisbonne de 1669 a 1790: entre colbertisme et libéralisme. Paris: Fondation Calouste Gulbenkian, 1988.Google Scholar
Lugar, Catherine. “The Portuguese Tobacco Trade and Tobacco Growers in Bahia in the Late Colonial Period.” In Essays Concerning the Socioeconomic History of Brazil and Portuguese India, edited by Alden, Dauril and Dean, Warren, 2670. Gainesville: University Press of Florida, 1977.Google Scholar
Macedo, Jorge Borges de. Problemas de história da indústria portuguesa no século XVIII. 2nd ed. Lisbon: Querco, 1982.Google Scholar
Madureira, Nuno. Mercado e privilégios. A indústria portuguesa entre 1750 e 1834. Lisbon: Editorial Estampa, 1997.Google Scholar
Mathias, Peter. “Risk, Credit and Kinship in Early Modern Enterprise.” In The Early Modern Atlantic Economy, edited by McCusker, John and Morgan, Kenneth, 1535. Cambridge: Cambridge University Press, 2000.Google Scholar
Nardi, Jean Baptiste. O fumo brasileiro no período colonial: lavoura, comércio e administração. São Paulo: Editora Brasiliense, 1996.Google Scholar
Nardi, Jean Baptiste. “Retrato de uma indústria no Antigo Regime: o estanco real do tabaco em Portugal, 1675–1830.” Arquivos do Centro Cultural Português 28 (1990): 321–39.Google Scholar
Paesie, Ruud. Voor zilver en Zeeuws belang: De rampzalige Zuidzee-expeditie van de Middelburgse Commercie Compagnie, 1724–1727. Zutphen: Walburg Pers, 2012.Google Scholar
Pamuk, Şevket. “Changes in Factor Markets in the Ottoman Empire, 1500–1800.” Continuity and Change 24:1 (2009): 107–36.Google Scholar
Parmentier, Jan. De holle compagnie. Smokkel en legale handel onder Zuidnederlandse vlag in Bengalen, ca. 1720–1744. Hilversum: Verloren, 1992.Google Scholar
Pedreira, Jorge. Estrutura industrial e mercado colonial: Portugal e Brasil, 1780–1830. Lisbon: Difel, 1994.Google Scholar
Pedreira, Jorge, “To Have and to Have Not. The Economic Consequences of Empire: Portugal, 1415–1822.” Revista de História Económica 16:1 (1998): 93122.Google Scholar
Pedreira, Jorge. Os homens de negócio da praça de Lisboa de Pombal ao Vintismo, 1755–1822: diferenciação, reprodução e identificação de um grupo social. PhD diss., Universidade Nova de Lisboa, 1995.Google Scholar
Pedreira, Jorge. “Tratos e contratos: actividades, interesses e orientações dos investimentos dos negociantes da praça de Lisboa (1755–1822).” Análise Social 31:136–137 (1996): 355–79.Google Scholar
Pereira, Pedro Teixeira. “Os Pedrossem—uma família de elite no Porto setecentista.” Douro: Estudos e Documentos 8:15 (2003): 103–39.Google Scholar
Pijning, Ernst. “A New Interpretation of Contraband Trade.” Hispanic American Historical Review 81:3 (2001): 733–8.Google Scholar
Price, Jacob. “Tobacco Use and Tobacco Taxation: A Battle of Interests in Early Modern Europe.” In Consuming Habits: Drugs in History and Anthropology, edited by Goodman, Jordan, Lovejoy, Paul E., and Sherratt, Andrew, 165–85. London: Routledge, 1995.Google Scholar
Price, Jacob. “Transaction Costs: A Note on Merchant Credit and the Organization of Private Trade.” In The Rise of Merchant Empires: Long-Distance Trade in the Early Modern World, 1350–1750, edited by Tracy, James, 276–97. Cambridge: Cambridge University Press, 1990.Google Scholar
Gordillo, Rodríguez, Manuel, José. “El abastecimiento de tabaco del Brasil a las Reales Fábricas de Sevilla en el primer tercio del siglo XVIII.” In XIV Coloquio de Historia Canario-Americana, de Gran Canaria, Las Palmas, 18711887.Google Scholar
Safley, Thomas, ed. The History of Bankruptcy: Economic, Social and Cultural Implications in Early Modern Europe. London: Routledge, 2013.Google Scholar
Salvado, João Paulo. “O estanco do tabaco em Portugal: contrato-geral e consórcios mercantis, 1702–1755.” In Política y hacienda del tabaco en los impérios ibéricos, siglos XVII-XIX, edited by Luxán, Santiago de, 133–53. Madrid: Centro de Estudios Políticos y Constitucionales, 2014.Google Scholar
Salvado, João Paulo. “Uma revolução de escala? O impacte do estanco no comércio de tabaco brasileiro (Lisboa, primeira metade do século XVIII).” In El tabaco y la esclavitud en la rearticulación imperial ibérica, (S. XV-XX), edited by Luxán, Santiago de and Rego, João Figueirôa. Évora: CIDEHUS-Universidade de Évora, 2018.Google Scholar
São Payo, Luiz de Mello Vaz de. “Uma linhagem cosmopolita do Porto.” In Congresso internacional de las ciencias genealógicas y heraldica, vol. 3, 91127. Madrid: Ediciones Hidalguia, 1983.Google Scholar
Schwartz, Stewart. “Colonial Brazil, Plantations and Peripheries, c. 1580–c. 1750.” In The Cambridge History of Latin America. Colonial Latin America, edited by Bethell, Leslie, vol. 2, 423–99. Cambridge: Cambridge University Press, 1984.Google Scholar
Shaw, Lucy M. E. The Anglo-Portuguese Alliance and the English Merchants in Portugal, 1654–1810. Manchester: Ashgate, 1998.Google Scholar
Stein d'Altenstein, Isidore de. Annuaire de la noblesse de Belgique, vol. 16. Brussels: August Decq, 1862.Google Scholar
Torres Sánchez, Rafael. “The Failure of the Spanish Crown's Fiscal Monopoly over Tobacco in Catalonia during the 18th Century.” Journal of European Economic History 34:3 (2005): 721–60.Google Scholar
White, Eugene. “From Privatized to Government-Administered Tax Collection: Tax Farming in Eighteenth-Century France.” The Economic History Review 57:4 (2004): 636–63.Google Scholar
Zahedieh, Nuala. The Capital and the Colonies: London and the Atlantic economy, 1660–1700. Cambridge: Cambridge University Press, 2009.Google Scholar