Foreign Traders in South America and the Financing of the Independence Wars, 1820-1830

Abstract

Studying commerce and traders from a global perspective allows us to analyze the material and cultural exchanges that took place beyond national borders, which are often obscured by traditional historical perspectives centered on the nation. This wide terrain is explored here by addressing — and visualizing — the interrelations between the South American ports of Lima, Valparaíso and Buenos Aires, from the vantage point of independent Peru. To do so, we study the links among foreign merchants who were rooted or closely connected to such ports in the context of the South American wars of independence. War placed Peru in a disastrous economic situation, a circumstance that foreign merchants exploited by becoming the main lenders to the new State, which struggled to cover the expenses of the army to sustain the war. These businessmen created a mercantile network that bridged the boundaries of the recently created nation-states and testified to their great business skills as it broke the economic system of commercial control that had prevailed during three hundred years. Research in Peruvian Governmental, Notary, and Customs documentation unveils their ability to act as agents, negotiate loans and purchases, and take advantage of the wartime crisis to become the main providers of weaponry and military supplies and acquire a privileged position. Since South America was not prepared to reach its independence in the early 19th century without an army, without money, or without weaponry, the nascent states’ economic and financial dependence on foreign traders that started during these times was in a sense inevitable.