The basic aim of this chapter is to provide an evaluation of the imperial response to the introduction of ‘free trade’ in 1778 by means of a detailed, quantitative examination of American exports to Spain in the period up to 1796, within the context of a qualitative discussion of the development of the American economy prior to the introduction of neutral trade in 1797. It considers, first, the volume of American trade with Spain in the period 1778–96, as measured by the registered values of American cargoes landed in Spanish ports; second, the distribution of imports from America between the 14 Spanish ports which received ships from the empire in this period; third, the composition of imports in terms of commodities; and fourth, the relative importance of distinct regions in America as suppliers of the commodities shipped to the mother country. This last-mentioned section also provides an opportunity for a general discussion of the impact of ‘free trade’ upon industrial production in America, and of the relationship between mining production and commercial growth in the last quarter of the eighteenth century. The chapter concludes with a brief general survey of the development of the mining industry in the Bourbon era as a whole.

VALUES OF IMPORTS INTO SPAIN FROM AMERICA

In 1794, as part of a comprehensive assessment of Spain's international trading position, Diego de Gardoqui reminded the Council of State of the fundamental importance of trade with America in enabling the country to balance its commercial books. In the period 1781–92, he reported, trade within Europe (primarily with France, England, Holland, Germany, Italy and Portugal) had caused Spain an average annual deficit of 404 million reales (20 million pesos), half of it attributable to the import of goods for re-export to America. However, the favourable balance generated by imperial trade had proved adequate not only to eliminate this deficit but also to provide an overall trading surplus of 184 million reales a year.