Ancient history

Internal Trade in Colonial America

Colonial trade was not only transatlantic, there was also internal trade although for a long time researchers, dazzled by the metal sent to the metropolis, neglected commercial activity inside the continent .

In America there were trade flows, not only local but also regional and intercolonial, aimed at supplying cities and mining centers. The engine of these flows was the need of the local and regional oligarchies to have enough money to pay for European imports and meet other expenses. Communication between cities and production centers with their local and regional markets gave rise to intense economic activity linked to internal trade. The breeding and sale of mules and the manufacture of carts and other means of transport mobilized resources and generated work. To keep the trade routes operational, a network of posts and inns was built to allow the muleteers, carriers, merchants, messengers and few travelers to rest during their journeys, since the poor condition of the roads made communication difficult.
Despite the prohibitions, intercolonial trade it was a fact in the inland seas of the Empire, such as the Caribbean and the Pacific. The regional economies' need for silver to pay for European products drove the movement of goods and long-distance trade within the continent. In this way, the Yerba mate from Paraguay It reached the markets of the Rio de la Plata (Santa Fe and Buenos Aires), Chile, Upper and Lower Peru and even Quito. Given the existence of internal customs and the high cost of freight, only certain products passed through these circuits. The interregional plots took advantage of the maritime routes, due to the lesser impact of their freight. A very frequented circuit was that of the Caribbean, whose centers were Veracruz and Havana, and communicated to colonies as disparate as Mexico, Venezuela, Panama or Cuba. Cocoa from Maracaibo and Caracas began to be regularly exported to Mexico in 1622. Another important business was the redistribution of leftovers , the European manufactures that the merchants of the fleets had not been able to sell and that the Cuban merchants began to re-export to other colonies, despite the fact that in 1598 their traffic between the Caribbean islands had been prohibited.
The Pacific, or the South Sea, was another area of ​​great movement with its two sub-circuits, the Mexican and the Peruvian , being Panama its dividing point. Contacts between El Callao, Guayaquil and Acapulco with Central America were frequent. Acapulco distributed the oriental products that arrived in the Manila Galleon. In 1591 the Crown prohibited trade between Mexico and Peru , a measure reiterated in 1631 and 1634, to prevent Peruvian silver from flowing through Acapulco to the Philippines and the East instead of regularly to the metropolis. Despite the prohibitions, the trade was maintained and the reiteration of the orders only confirms its non-compliance. The intense maritime traffic of the South Pacific was affected by pirates, who forced the routes to withdraw, especially those that transported silver from Potosí to Lima. Potosí metal was sent by mule to the port of Arica , from where they embarked to El Callao. From there the Navy of the South Sea sent it to Panama. Subsequently, it was decided to carry out all the transport on the back of a mule, from the deposits of Upper Peru to Lima , despite the higher cost and duration of the journey, given the considerable gain in safety.
Finally, there was the local trade, which connected the goods with the largest possible number of consumers, and the cities with the surrounding territories that supplied them with fresh products (meat, dairy products and vegetables). In the cities of certain importance there were markets where these products were commercialized, and around them sellers and buyers revolved, officials of the municipalities in charge of collecting the rates and taking care that the weights and measures respected the law, security guards, inspectors, judges, etc. . There were also slaughterhouses on the outskirts of the cities where the cattle sent to the markets were slaughtered. It was common for the indigenous people to have their own markets. Finally, it is worth mentioning the capital that moved the retail trade, since not only the merchandise sold throughout the year must be considered, but also the urban real estate market. Thus, numerous stores were constantly being sold or rented, especially in urban centers, with the properties near the main square being the most valued.