Currencies of Puerto Rico - Early Licenses Issued By The Spanish Crown

Early Licenses Issued By The Spanish Crown

After Juan Ponce de León began the colonization process of Puerto Rico, the archipelago became a strategic military location, used by Spain to protect its colonies and possessions in America. Vessels used it as a main point for resupplying before attempting long voyages and trading became a key part of economy. However, when the mines and rivers in the main island of Puerto Rico, then known as San Juan Bautista, were depleted Puerto Rico began suffering from shortage of gold and its income was reduced drastically, precipitating a recession. Beginning in the 16th century, the Spanish Crown was forced to issue a monetary support decree to the archipelago known as situado, which was supplied by the Royal banks in Central America, particularly Mexico. However, this aid failed to arrive often, contributing to the economical instability. This was exacerbated by other factors, including the costs of running an efficient military and a lack of commercial prosperity. Natural conditions and disasters also contributed, multiplying the costs of maintaining fortresses while hurricanes damaged haciendas, destroying crops and shortening the amount of laborers.

Municipalities suffered most, being forced to implement taxes, including the alcaba del viento (lit. "wind tax"), which was imposed on foreign suppliers. However, these taxes barely helped, this was because each one had to receive a Royal certification, a bureaucratic procedure which usually lasted several years. Once they reached an established deadline, the process would have to be repeated, taking an extended amount of time. From January 1, 1636, to December 15, 1637, Philip IV of Spain imposed an obligatory payment to the treasuries in Puerto Rico. The debt was to be paid with currency symbolized by legalized papers bearing a Royal seal. Researchers believe that the use of these documents had an impact in the production of banknotes in Puerto Rico. In due time, these documents would be short in supply upon their arrival, in such cases the government officials would stamp the current date into old papers. Pedro Tomás de Cordova and Humberto Burzio claim in their research that Puerto Rico was the first place in America to print 8-real, establishing 1766 as the date for this achievement. Thus, putting Puerto Rico ahead by two decades before Cuba (1781), Hispaniola (1782) and even Spain (1783). Both researchers divided the first two types of banknotes issued, the two varieties were classified as "issued" and "printed". Although both were manufactured using the same method, those referred to as "printed" bore stamps listing numbers and letters. In 1767, the Spanish Crown approved subsequent issues, conditioning that they should be collected once situado shipped. When this was lacking, paper money was used in a widespread manner throughout the main island. These requirements were met when possible, an example of this was in 1769, when 88,000 banknotes were reclaimed by the authorities.