Public credit activity in Lisbon (1775-1830)

Abstract

This article studies the credit facilities that the people of Lisbon used during the last quarter of the eighteenth century and the first three decades of the nineteenth century. The author explains the extent, and characteristics, of the mechanisms employed. A loose concept of credit is used, covering practices that range widely from commercial credit to lending money, and include: deferments in the payment of salaries, services, or rents for houses and land; bills of exchange and venture bills; and using inter-generation credit - in this case the calculation of inheritances was delayed, or use was made of financial transfers and goods moved before the older person died. The article is divided into two parts. Firstly, the author emphasises the considerable use that the inhabitants of Lisbon made of these various kinds of credit, and identifies the social and occupational groups that were prominent in making most use of such facilities. The second part of the article looks at one particular form of credit - individuals lending money to other individuals. The author emphasises the diffuse character of credit transactions of this kind, and shows that a very small number of lenders were responsible for many of the loans. The different motives for making loans are analysed, as are the diverse motives for seeking them. The conclusion is that there were two types of loan. In one kind, relatives, friends, and acquaintances were striving to support each other. The motive for other type of loan was clearly the generation of income. The people involved in the latter activity were mainly merchants, high court judges, lawyers, religious institutions, or clergymen acting on their own behalf.