Pennisular Finance and Colonial Trade: the Dilemma of Charles IV's Spain

Abstract

Charles IV's rule over the Spanish empire has often been decried as neglectful and reactionary. In a recent article, however, I argued that such descriptions were not accurate, maintaining that the early years of the reign pushed forward many institutional innovations and showed a marked concern for colonial affairs. This is not to say, of course, that the death of Charles III produced no change; but the critical facts were that economic policy-making continued to be based on the colonial compact and that the crown remained as committed to providing economic benefits to Spanish agriculture and manufacturing as to securing relief for the Peninsular treasury.1 Although 1788–9 may properly be characterized as a moment of truth for Spain, one which brought to the surface conflicting interests and ideologies, the Peninsula's transformation by the Bourbon Reforms was not so deep nor the government's circumstances so dire as to upset the political balance.