An irrelevant measure? The lowering of the rate of the censos in the Crown of Aragon (1750): previous debates and impact on the ecclesiastical economies

Abstract

In 1750, Fernando VI lowered the usury rate in the Crown of Aragon from five to three per cent. The matter has received uneven historiographical attention: whereas the debates that preceded the reduction, which lasted more than four decades, have been almost ignored, the consequences of this lower cap on the annuities have been discussed at length. In fact, the preceding debates were far more important than what has traditionally been asserted, whilst the effects of the measure were less catastrophic than what certain actors expected and some authors have stated. Using new archival evidence, this article examines the debate about the convenience of reducing the usury rate, which involved the Aragonese ecclesiastical lobby and the Bourbon ministers. The fears of Felipe V and some of his closest advisors that the censo-based credit system would collapse if the usury limit was lowered delayed the adoption of the measure for several decades. However, the consequences were not as dramatic as some predicted. Credit markets were fragmentary and followed very diverse dynamics, so the impact of the reduction was uneven. Nevertheless, the interest rate of the annuities continued to be crucial in the debates and policies of the Spanish monarchy, especially those that affected the Church.