MERCANTILE HIERARCHIES IN THE PORTUGUESE ATLANTIC: AGENCY RELATIONS IN TRADE BETWEEN PORTUGAL AND BRAZIL, 1780 TO 1807

Abstract

The article seeks to demonstrate the existence of mercantile hierarchies in the trade between Portugal and Brazil in the last quarter of the eighteenth century. It necessarily proposes an alternative view to horizontal interpretations among the actors engaged in such a circuit, suggesting, on the contrary, a more vertical view of commercial relations. From the analysis of more than ninety company charters, which were underwritten in Lisbon notary’s offices, it was found that most of the capital needed to deal with the Pernambuco captaincy came from merchants residing in Lisbon. Moreover, the contracts were clearly benefiting the metropolitans by stipulating several rules that limited the leeway of the partners resident in Pernambuco. It is concluded, therefore, that there was a centralization of capital in the hands of the metropolitan partners and that the Lisboners stipulated the main market rules that the colonials should follow.

Keywords
Colonial trade; mercantile hierarchies; mercantile companies; Pernambuco; principal-agent problem