 The Capital Markets of the Manila TradeJuan José Rivas Moreno ()
Chapter Chapter 3 in The Capital Market of Manila and the Pacific Trade, 1668-1838, 2024, pp 91-131 from Palgrave Macmillan Abstract: Abstract The large volumes of coined silver reaching Manila every year and the difficulty of developing a local export-oriented economy due to the high demand for the peso worked together to limit the investment options of merchants in the city. However, it similarly facilitated the emergence of a capital market focused on financing the trade of the city. This financial market arose using the infrastructure provided by religious associations such as brotherhoodsbrotherhoods and lay confraternitieslay confraternities, and used endowment funds known as obras píasobras pías as the primary vehicle to structure investments. This institutional framework enabled for the expansion of capital supply, allowed individuals unrelated to the trade to pool their savings and transform them into working capitalcapitalworking for trade finance, and in the process, linked the provision of public goods in the city to the performance of the trade, making the city of Manila a stakeholder in merchants’ commercial operations. Keywords: Financial markets; Trade finance; Lay confraternities; Legacy funds (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palscp:978-3-031-71810-6_3 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-71810-6_3 Access Statistics for this chapter More chapters in Palgrave Studies in Economic History from Palgrave Macmillan |
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