The “new debt” – 1796-1803. The diffusion of a new financial policy

Abstract

This article presents the results of research on the primary sources regarding the arrangement of the first two loans by the royal administration in Portugal, which incorporated new features inspired by the European financial policies of the late 18th century. At that time and in the early 19th century the Portuguese “public” debt took on a new character, now resorting to bond issues. This “new debt” reflected the fiscal innovation of taxing the revenues and consumption expenditures of the upper classes. As the creation of a new bank was unsuccessful, an independent administration was put into place instead, tasked with establishing the financial credibility of the State. The undertaking met with favor among enlightened politicians.