Versión español

Miguel Enríquez

Smuggling was the main way to make a living in Puerto Rico for more than two centuries. The island could trade only with Spain, and only with the ports of Seville (and later Cadiz) from the port of San Juan. It was completely illegal to do business with foreign countries or any of the other of the islands of the West Indies, whether Spanish or foreign. For the inhabitants of Puerto Rico, there was no contradiction at all between being loyal to Spain, on the one hand, and trafficking with her enemies, on the other. It was a question of survival and the reasons were many. The geographical proximity of Puerto Rico to the Lesser Antilles, the increase in trade in the area, and the great need for trade contacts – given the isolation from Spain and Puerto Rico's depressed economic situation –in large measure explain the development of smuggling in Puerto Rico.

At the beginning of the 17^th century, Puerto Rico was in a very bad economic and social state after a century of foreign attacks that had culminated with the Dutch attack led by Balduino Enrico in 1625. Sugar production had declined from 250 tons in the mid 16^th century to just 38 tons at the beginning of the 17^th. The country was also virtually depopulated as a result of the emigration that began in the mid 16^th century.

The difficult economic situation of the country coincided with greater isolation from Spain. As a result of the fleet system implemented by Spain in the mid 16^th century for reasons of security, the number of Spanish ships that stopped in Puerto Rico decreased. There were constant complaints by the colonists about the irregularity of trading contacts between the two countries, and there were periods, such as that between 1651 and 1662, when no ships at all passed by. The lack of contact can be explained, too, because the Spanish authorities saw Puerto Rico at that time as a military post, with only limited potential for trade.

However, Spain's mercantilist policy – maintaining a monopoly of trade with its colonies – continued over the greater part of the 17^th century. While Spain was in decline, its principal rivals – England, France, Holland, and later Denmark (at the end of the 17^th century) – began to populate the Lesser Antilles on a permanent basis. The key points for trade with foreigners in the West Indies were Curacao for Holland, Jamaica for England, and Martinique for France, all key future bases for illicit trade. Contrary to the experience of Spain with its colonies, the other Western European countries experienced economic growth in their colonies, particularly in the production of sugar. These new neighbors had a lively interest in trading with the Spanish colonies, and they made a number of efforts in the 17^th century to establish a legitimate trade relationship with the Spanish colonies. But Spain refused. Unable to establish legal trading ties, these new neighbors became the principal illicit contacts for the Puerto Ricans, who could sell their agricultural products and hides for slaves, manufactured products, and European food and drink. In general, the foreigners offered more, and more varied, products, and at a better price, than the legitimate Spanish traders, since there were no taxes to pay.

The Effort to Stop the Smuggling

Spain's efforts to eliminate smuggling varied, from minor restrictions to offensive measures such as the corsairs of the 18^th century, and later to greater freedom for trade under the Bourbon reforms in that century. In general, it proved impossible to eradicate smuggling in Puerto Rico.

One of the first restrictive measures Spain took, in 1602, was to ban the production of ginger, a product that, together with hides, was among the greatest stimuli to smuggling. Just as they did with most t Spanish restrictions, the colonists ignored the order and continued to plant ginger until market forces caused the price and profitability of the product to decline in mid-century.

An attempt was made to reduce smuggling by establishing legal supply routes. An example of this strategy was the contract with the Genovese traders Domingo Grillo and Ambrosio Lomelin to carry slaves to the New World. Another example was the agreement of 1713, which permitted the English to import slaves as a result of the Peace of Utrecht. As in the case of other initiatives over two centuries, the limited opening permitted by the legitimate trading channels could never compete with the dynamism of smuggling, and often the legitimate channels were used to carry illegal goods to Puerto Rico under the mantle of legal contracts.

One of the most creative measures the Spanish took to end smuggling was to issue letters of marque, first to Spaniards and then to criollos, at the end of the 17^th century. In theory, these allowed for interception of ships carrying trade goods, seizing the merchandise for the crown, and keeping a part of the profits. In fact, the practice was a great opportunity for ambitious individuals to get rich, especially government officials.

The best example of the magnificent opportunity that letters of marque offered to the criollos is the case of the mulatto Miguel Henríquez. Through his activities, he became the richest man in Puerto Rico, with the greatest political power at the beginning of the 18^th century. Ironically, the practice of issuing letters of marque came to be a way of controlling, not eliminating, smuggling. Proof of this is the figure of Governor Matías de Abadía, who was appointed in 1731. While he fervently attacked smuggling by the British, he made use of the letters of marque to enrich himself personally from illegal trade with the French, the Dutch, and the Danes. The use of letters of marque became a strategy that was counterproductive for Spain, for in generating so many conflicts during the century, it worsened relations with England.