Note 89 — PART I

The basis of it was, and is, the funds called “Obras Pias”89 (Pious Works). These are funds under various denominations, whose origin was the piety of well-meaning Spaniards, who dying rich have bequeathed large sums for the purpose of lending to deserving traders to commence or continue their career with. The administration of these is confided to various religious and charitable institutions, or to civil associations—the trustees forming a board, at which the sums to be lent, &c. are determined. Their statutes differ in many unessential points;90 but their general tenour is the same, viz. that sums not exceeding two thirds of the fund shall be lent on respondentia at certain rates of interest, which are fixed according to the risk of the voyages; and these, when repaid, shall be added, principal and interest, to the original fund. The interests are 25 per cent. to Acapulco, 15 to Bengal, and so in proportion. The total of the capitals of these establishments (there are 12 or 14 of them), amounted to about three millions and a half of dollars in 1820, of which about two millions are due to the funds on various risks, principally those of New Spain: of this the major part is considered as lost by those best qualified to judge of the subject.