430 



C A R A C C A S. 



Spain, or its possessions, w'nile the residue went off 



,~- / in a contraband trade, which, as it was favoured by 



.uinmercc. the situatioil of the COU ntry, and the interests of the 

 people, no efforts of government could prevent. At 

 length, some merchants of Biscay proposed to the 

 kin"-, in 1728, to destroy, at their own expence, the 

 trade of foreigners with the province of Venezuela, 

 on condition that they should be permitted to sup. 

 ply the country, and export its produce to the me- 

 tropolis. To this proposal his majesty acceded, 

 though not without imposing conditions, which seem- 

 ed calculated to deprive the company of almost all 

 the advantages which they expected from the grant. 

 The justice, moderation, and activity of this compa- 

 ny, while they conciliated the favour of the colonists, 

 afforded complete satisfaction to the court, from 

 which they obtained the privilege of an exclusive 

 commerce. Though this privilege does not appear 

 to have been abused, it excited in Venezuela a gene- 

 ral dissatisfaction, which was ready to break out in- 

 to rebellion, when an expedient was adopted to re- 

 move the suspicions, to which the hideous form of a 

 monopoly had very naturally given rise. It was 

 agreed, in 1750, that an assembly should be formed 

 of an equal number of members of the company, and 

 cultivators belonging to the country, in which the 

 governor-general of the province of Venezuela should 

 preside. By this assembly the price of cacao to the 

 company was to be decided ; no variation of which 

 was, in any case, to be permitted, without the for- 

 mal assent of the assembly. Such of the planters 

 as were not satisfied with the established price, were 

 allowed to send a sixth part of their cacao to Spain, 

 on their own account, and in the vessels of the com- 

 pany. Notwithstanding the restrictions with which 

 this company was hampered, its success was so great, 

 and its influence on the cultivation of the province 

 so beneficial, that, in less than thirty years, the quan- 

 tity of cacao exported annually rose from 65,000 

 quintals to 110,659; and Venezuela acquired an air 

 of prosperity unknown in any other Spanish colony. 

 Tn time, however, the company so far forgot the 

 principles of honour and moderation, as to employ 

 its wealth in tampering with the assembly, destined 

 to curb its cupidity, and even to engage with the 

 Dutch in the contraband trade, which it had solemn- 

 ly pledged itself to destroy. Such irregularities ne- 

 cessarily occasioned its dissolution ; and by a decree 

 of the Spanish government, of the 12th October 

 1778, the commerce with Caraccas was declared free 

 to all natives of Spain, and, in effect, to all the Spa- 

 nish colonies. The import and export duties under- 

 went at the same time such a reform, as seemed cal- 

 culated to combine the advantages accruing to the 

 revenue from the proceeds of the custom-house, with 

 the necessary protection to national industry and com- 

 mercial enterprize, and the supply of Spanish Ame- 

 rica. Articles exported to the colonies are divided 

 into three classes. The Jirst class includes articles 

 of the growth or manufacture of Spain, which are 

 called free articles, because the duties to which they 

 are subjected are comparatively trifling, though they 

 exceed nine and a half per cent., both on their lea- 

 ving Spain, and on their entry into America. The 

 3 



second class, named articles of contribution, are those Caracca-;. 

 which, though of foreign production, have received ^~*~Y~* m '' 

 in Spain a degree of workmanship, sufficient to change Commer<:v ' 

 or to improve their form. The duties on these ar- 

 ticles amount to about twelve and a half per cent. 

 The third class comprehends all articles imported from 

 foreign countries to Spain, and ultimately sent to Ame- 

 rica. The duty on such articles, on their entry into 

 Spain, is fifteen per cent. ; on their departure for 

 America, seven per cent. ; at their arrival, seven per 

 cent. ; besides other moderate duties, which raise the 

 price of all foreign merchandize, imported from the 

 mother country, about forty three per cent. With 

 the exception of cacao, colonial productions pay but 

 trifling duties on leaving America and on entering 

 Spain, and are totally exempt from duty on their 

 exportation for foreign markets. The trade to Ca- 

 raccas is far from being lucrative to the Spanish mer- 

 chants. Cargoes delivered in America acquire, by 

 a common calculation, a value of thirty per cent, 

 above their price in Spain ; and a merchant thinks 

 himself fortunate, when he can sell the whole of his 

 commodities at thirty-three and a third per cent, 

 above first cost, having thus a neat profit of only 

 three and a third per cent. Even this profit, scanty 

 as it is, may be regarded as in a great measure ficti- 

 tious ; for it is doubtful, if it cover the losses to 

 which the merchant is exposed, by the credit which 

 he is obliged to give. 



In the year 1796, immediately before Spain de- 

 clared war against Great Britain, the importations 

 from Spain to Caraccas amounted, in value, to 

 3,118, 811 dollars, the importation duties on which 

 were 281,328 dollars. The exports to Spain, in 

 the same yeai, were estimated at 2,098,316 dol- 

 lars, the duties on which amounted to 138,052 dol- 

 lars. Since that period trade has rapidly declined, 

 owing partly no doubt to the war, but much more 

 to the indolence and pride of the inhabitants, among 

 whom commerce is considered as degrading to peo- 

 ple of rank ; to the injudicious restrictions imposed 

 by government ; and to the carelessness of those em- 

 ployed by the court to detect and remedy abuses. 



Almost the whole commerce of this country is 

 now carried on by European Spaniards, chiefly Ca- 

 talonians, and by Islenos, or islanders from the Ca- 

 naries. A spirit of union, and a strong provincial 

 dialect, binds the Catalonians together, and gives 

 them a considerable advantage in all commercial trans- 

 actions. When a cargo arrives, one or two Catalo- 

 nians conclude the bargain, when all the rest, who 

 have any interest in it, appear for their share in the di- 

 vision. The indolent natives, far from being jealous 

 of this appropriation of their commerce by strangers, 

 are accustomed to boast that their rich and abundant 

 productions, while they exempt them from the ne- 

 cessity of going to Europe, draw Europeans to 

 their country, and convert them into their servants. 

 " In this manner," says Mr Semple, " reason the 

 Chinese, vain of their supposed superiority over all 

 mankind. And in this manner might argue the sa- 

 vages of the South Seas, who behold Europeans vi- 

 siting them, but who never visit Europe." 



Though in Caraccas, as in all the provinces of Revenue. 



