The Manila correspondencia and the institutional underpinnings of the trans-Pacific silver trade in the long eighteenth century

Building on a newly compiled database of all extant respondentia contracts from Manila’s notarial protocols between 1736 and 1800, this article examines the overlooked role that the Manila correspondencia played as the crucial private-order institutional mechanism financing Manila’s long-distance silver trade. This instrument organized the structure of long-distance capital flows stretching out from Manila across its intra-Asian and trans-Pacific commercial lines, allowing investors to make claims on future returns and apportion risks in the absence of an adequate public-order institutional framework for high volumes of exchange. Combining the respondentia dataset with account books for institutional lenders (the obras pías), we argue that the Manila correspondencia’s contractual elements offered a specific solution to the Fundamental Problem of Exchange between Asia and the Americas. The contract’s flexibility proved ideal for Manila’s diverse combination of individual and institutional investors to participate in the profits of cross-cultural trade, while offering security and guarantees.