Publication: International Advances in Economic Research
Publication Date: 01-FEB-07
Delivery: Immediate Online Access
Author: del Mar Lopez Perez, Maria
Article Excerpt
Abstract
This paper analyses the progressive unification of the domestic market during the eighteenth century by three means. First, the intensification of commercial trade, due to the increase of authorized fairs and street markets; secondly, the performance of some others which lack official authorization; and finally, the growth of the funds provided by the taxes associated to these events. It shows that the increase in production at the end of this century provided proper circumstances for demographic growth, and that both generated an increase in the demand for and the number of mercantile exchanges. This analysis is focused on the way these factors also affected the characteristics of the domestic market of Galicia and a comparative analysis with this effect in the rest of Spain. (JEL N10)
Keywords: domestic market, economic history, fair, markets, eighteenth century
Introduction
At the end of the Ancient Regime, trade in Spain was characterised by the incipient strengthening of commercial flux. From the middle of the eighteenth century, the intensification of commercial activities, far from being a national activity, made possible the commercialization of many different regions. The same process happened in Galicia at the end of the century, although, this region had peculiar characteristics that differentiated it from the rest of Castile.
Due to the approval by the Council of Castile of most of the requests to organise fairs and markets, an increasing number of fairs and markets were held. The analysis of the taxes collected in such fairs and markets highlights their importance during this century. In order to do this, it is necessary to examine the Relaciones de Valores, Gastos y Liquido (1) registered by the Administradores de Rentas (custom-house officers).
During the late eighteenth century, some legal changes were introduced in order to promote and facilitate commercialization within the region through the creation of new centres for commercial exchange. This measure was able to aid in the approval of requests proposed to the Council of Castile, but it was also the sign of a tendency that had already been established in Spanish society.
In the kingdom of Galicia in particular, many of the fairs were originally meetings of locals that became customary with the passing of years. They did not always have royal permission. These fairs were arranged illegally and led to new state legislation in order to identify and incorporate them into the usual tax collection systems. Furthermore, some fairs gained their legitimacy after signing an agreement with the Council of Castile.
In order to analyse these fairs, it is necessary to study the archives of towns and villages submitted to the Council of Castile. These files include the reports of intendants or corregidores (crown representatives), the report of the Council prosecutor and the resolution signed by the King.
Finally, this research shows the conflicts that arose from the pretensions of collecting taxes at the fairs. In short, it demonstrated the clash of interests between local authorities--usually jurisdictional lords--and State authorities in their wish to control the income generated by such fairs.
Income Derived from Royal Taxes Collected at the Fairs in Galicia in the Second Half of the Eighteenth Century
The main taxes collected at fairs and markets where those that taxed the circulation and sale of goods, known as alcabalas, (2) cientos, (3) and millones. (4) These were the taxes collected by the Royal Treasury in towns and villages which were not granted exemption or where these taxes were non-transferable to individuals.
There was other income derived from these events, such as the money acquired as the result of people's interest in a fair or market. It consisted of the payment of a certain amount to the Royal Treasury. This tax, called media annata, was intended to tax the different towns of Castile based on their capacity to hold fairs or to renovate them during the second half of the eighteenth century [Ripia and Gallard, 1795, V, pp. 314-356]. The villages of Ares, Recuenco and Sigueiro, were subjected to payment during the 1960s. The same happened in 1789 with the parishes of San Salvador and San Esteban de Boudino and Son; and again in 1798, with Padron.
From the collected data, it can be inferred that, in general, income derived from the collection of alcabalas and cientos at the fairs increased in the second half of the eighteenth century. Some fairs maintained their activity during this century and centralized trade in their regions, as they were located in places that tried to maintain a certain economic and commercial dynamism.
The fairs of the province of Santiago maintained their level of income in the second half of the century, at least until 1785. In the same way, its market increased its earnings by 102.96% between 1765 and 1785 (Table A1). The fair of La Portela and Pazo del Monte, belonging to the Cambados Administration in this province, maintained a steady growth: more than 12% between 1765 and 1770 (Table A2). It changed its administration to the Royal Treasury in 1785, without implying any change in the tendency, so growth was maintained, 4.36% more than in 1770.
The rest of the fairs in Galicia that increased their retributions were those of Padron, Santa Maria de Urdilde, la Merced (La Puebla), Ferrol, and Grana (Betanzos), together with the markets of La Guarda (Tables A3, A4, A5, A6 and A7). Several events took place in each town or village,...
NOTE: All illustrations and photos have been removed from this article.
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