Abstract
The powerful military expansion which took place in France following the outbreak of the Revolution in 1789 had disastrous consequences for Portugal. As members of the first coalition of the European powers against France during the wars of the French Revolution, Portugal and Spain had become involved in the campaign of 1793; but Portugal had been unable to follow Spain’s example in suing for peace two years later. To have done so would inevitably have meant a break with England, and this was something no Portuguese government could afford. Since the beginning of the eighteenth century the country had been largely dependent upon England in the economic sphere, and the French Revolutionary Wars had increased that dependence. If the English navy, with its supremacy, were to cut off Portugal’s vital imports from the colonies or, worse still, occupy her overseas territories, she would be helpless.
We have selected this measure as the means to introduce the reestablishment of our House with eclat, by manifesting the most conciliatory disposition and unequivocal proof of our attachment to the interest of the country. Henry Hope, in a letter to P. C. Labouchère, 3rd August 1802.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Chapter Fourteen Page 383
H.Schäfer, Geschichte von Portugal, v (Gotha, 1854), 610-616. H.V.Livermore, A New History of Portugal (Cambridge, 1966), 245-246.
Page 384
C.R. Boxer, The Portuguese Seaborne Empire (London, 1969), 157. Schäfer, Geschichte von Portugal, V, 192, 193, 194.
Letter of 15th March 1765 from Barend Wessely, Copenhagen, to Hope & Co., Amsterdam.
Page 385
Letter of 22nd April 1777 from Thomas Mayne & Co., Lisbon, to Hope & Co., Amsterdam.
Letter of 1st April 1777 from Lewis Cantofer, Lisbon, to Hope & Co., Amsterdam. Cantofer estimated that the 60,000 carats about which he wrote would fetch cf 2,710,000 in Amsterdam. The carat prices which he maintained were identical to those maintained by Hope in 1800. The prices for small and large stones differed greatly, the former being calculated at cf 28 per carat and stones of between 40 and 79 grains at cf 100 per carat. A carat, which consists of four grains, may be put at about 0.2 grams. Robert Paisley & Co. of Lisbon, whom Cantofer introduced in an accompanying letter, felt that the estimated yield was too high. In Mayne’s view, it was not necessary to take more than 40,000 carats annually, although a contract for larger quantities was to be preferred. Hope expressed the view that the Amsterdam market could absorb 50-60,000 carats annually. The newly appointed Inspector of the Treasury, the Marquis of Angeja, had informed Mayne of an offer by Cantofer to take 80,000 carats annually-20,000 above the figure which he had indicated to Hope. Just who was guilty of an untruth is not clear from the correspondence, but it may be assumed that Cantofer planned to sell the 20,000 carats behind Hope’s back. As will emerge, a considerable quantity of diamonds reached Amsterdam by way of London.
The contract was awarded to Paulo Jorge and Joao Ferreira of Lisbon, who, it was reported, proposed to appoint Van Brienen & Co. as their agents in Amsterdam. Letters of 10th and 17th April 1787 from Lewis Stephens, Lisbon, to Hope & Co., Amsterdam.
Infra, Appendix E-1. The grootboeken contain the names of the following London diamonds merchants: Aaron Goldsmid, Salomon Berend Gompertz, Benjamin and Abraham Goldsmid, Aaron and Salomon Norden, P.&S.Salomons & Co., Levy Cohen, Meyer Asser & Co., Asser Asser, Ruben Harmsz. Kijzer and Eleasar Philip Salomons.
Page 386
The names of Joseph and Mordechai van Embden first appeared in the grootboek of 1785 (folio 263), and that of Hartog Eleasar Cohen in the grootboek of 1788 (folio 297).
Infra, Appendix E-11.
Letter of 19th June 1798 from H.A.Insinger, Amsterdam, to P.C.Labouchère, Hamburg.
Letter of 1st April 1800 from Hope & Co., London, to J.P.Quintella, Lisbon, VII, 171-172.
Letter of 1st April 1800 from Hope & Co., London, to J.P.Quintella, Lisbon, VII, 174. The specification of the diamonds deposited with the bank reads as follows
Page 387
Letter of 27th May 1800 from Hope &Co., London, to J.P.Quintella, Lisbon, VII, 181.
Letter of March 1801 from J.Williams Hope, London, to Sampayo, Lisbon. John Williams Hope said that it would take three to six years to market the quantity offered. On the basis of the sales figures for previous years (20-30,000 carats annually), this indicates that between 100,000 and 120,000 carats were offered. Following the agreement negotiated with the Portuguese government by Labouchère in 1802, this stock did indeed come into the Company’s hands.
Letters of 7th and 14th November 1801 from John Stanley, Lisbon, to F.Baring & Co., London.
Page 388
Letter of 14th November 1801: enclosure to letter of the same date from Bandeira.
Letter of 27th February 1802 from P.C.Labouchère, Lisbon, to Hope & Co., London. Labouchère maintained that the two houses had become involved in the Portuguese affair in order to gratify the wish of the British minister Addington, but in the light of the previous history this was, to say the least of it, a one-sided interpretation.
Letter of 7th December 1801 from J.Williams Hope, London, to P.C.Labouchère, Paris. In a letter of 5th December, John Williams Hope informed Labouchère that the Portuguese government had asked for a loan of twice the original sum. While he considered this excessive, he was interested in cotton and sugar from the point of view of the re-establishment of the house in Amsterdam.
Letter of 8th December 1801 from J.Willems Hope, London, to P.C.Labouchère, Paris.
Page 389
Letter of 9th December 1801 from H.Hope, London, to Sir F.Baring, London.
It is also conceivable that Sir Francis Baring foresaw difficulty in placing this loan in England. As Hope had already pointed out, foreign loans were not popular there.
Letters of 15th and 29th December 1801 from J.Williams Hope, London to P.C. Labouchère, … In Nantes, family matters awaited Labouchère’s attention. In the margin against the passage concerning the chartering of a vessel there are notes: in pencil the word ‘no,’ and in ink the instruction ‘I positively forbid, no hurry.’ In all probability these remarks reveal concern on the part of Henry Hope, who did not wish to expose Labouchère to risks.
Letters of 21st and 23rd January 1802 from P.C.Labouchère, Madrid to J.Williams Hope, London. Letter of 23rd February 1802 from R.Voûte, Amsterdam, to Henry Hope, London. Letter of 20th January 1802 from J.Stanley, Lisbon, to Sir F.Baring, London.
Page 390
Letters of 5th, 18th, 25th and 26th January 1802 from J.Williams Hope, Bath, to P.C.Labouchère, Lisbon.
There were indeed others with an eye to the main chance. These were the house of Stephens in Lisbon and a partner in the firm of Wed. Croese & Co., of Amsterdam, both of whom attempted to thwart Labouchère’s plan, but were forced to give up for lack of adequate funds. The partner concerned was probably H.Croese, who at that time was residing in Madrid in connexion with the Spanish ‘conversion loans’ (supra, 283-284). According to Labouchère, Croese was out to blacken the name of Hope & Co. Letter of 17th February 1802 from P.C.Labouchère, Lisbon, to Hope & Co., London.
1st February 1802: the discussions which had taken place during the preceding days had been embodied in this ‘Overture.’
This offer contained an element of’ sales talk.’ The price of the bonds to which Labouchère referred was governed not only by the rate of interest which they bore, but also by the punctuality with which interest and principal instalments were paid. The prospects for the Portuguese bonds were decidedly favourable.
Page 391
If we add to this the 100,000 pounds sterling already advanced to De Souza Coutinho, we arrive at a total of 700,000 pounds sterling-the sum mentioned by John Williams Hope.
Hope & Co. made a further attempt to secure the stock of 55,722½ carats which had already been handed over to the French government, but they lost to two Jewish diamond merchants from London. Letters of 9th March 1802 from Hope & Co., Amsterdam, to H.A.Insinger & Co., Amsterdam, and of 16th March 1802 from J.Williams Hope, London, to P.C.Labouchère, Lisbon.
Page 392
In his correspondence with Hope and Baring, Labouchère continued to work on a price of 90, even after the signing of the contract. He evidently viewed the price of 92 referred to in the contract as a sham concession. Letters of 4th and 6th February 1802 from P.C.Labouchère, Lisbon, to Sir F. Baring, London. 8th February 1802: Contract between Don Rodrigo de Souza Coutinho, Minister of Finance, and P.C.Labouchère, representing Baring & Co. and Hope & Co.
Labouchère described this issue as ‘a mere nothing’ in his correspondence with Hope & Co. Letter of 17th February 1802 from P.C.Labouchère, Lisbon, to Hope & Co., London.
Letter of 17th February 1802 from P.C.Labouchère, Lisbon, to Hope & Co., London.
Page 394
Letters of 26th February 1802 from P.C.Labouchère, Lisbon, to Hope & Co., London, and of 6th and 27th April 1802 from R. Voûte, The Hague, to J.Williams Hope, London.
Letter of 10th May 1802 from P.C.Labouchère, Paris, to R. de Souza Coutinho, Lisbon. Current Account Book relating to the Portuguese loan, 1802–1803. During Labouchère’s discussions with Talleyrand, he was informed that France no longer required the funds in Lisbon, and that these should be transferred to Paris. Any exchange losses arising from the transfer were for Portuguese account. On 14th May 1802, Labouchère paid to Citizen Estève, Trésorier du Gouvernement, the three million livres demanded (Current Account Book, Portuguese loan, 1802–1803). This sum was furnished by Perregaux and Baguenault, who drew on Hope for the purpose. In all, the Company paid 20 million livres to Estève; the balance of 5 million livres (2 million crusados) had been paid by the Portuguese government in 1801.
The actual sum made available to the Portuguese government was 90 % of cf 13,000,000 less commission at 5 % = cf 11,050,000. Acting on instructions issued by the prince regent on 16th February 1802, Bandeira had already drawn on Barings for cf 2,400,000. Letter of 30th March 1802 from R.Voûte, The Hague, to Hope & Co., London.
Letter of 19th March 1802 from J.Williams Hope, London, to H.A.Insinger & Co., Amsterdam.
Sales in 1802 totalled 33,0693/16 carats, which fetched cf 821,390.4.0. In 1803 the totals were 36,2289/16 carats and cf 936,383.0.8 respectively. In addition to these stocks, which came direct from Lisbon, Hope & Co. had managed to lay hands on 33,000 carats out of a parcel of 55,000 carats which the Portuguese government had surrendered to France. As explained in note 2 on page 391, these had come into the possession of two London diamond merchants. Upon reflection, these merchants, S.Salomons and L. de Symons, decided to sell the stones in Amsterdam and to employ Hope & Co. for this purpose. In June/July 1802, they received from the Company an advance of 40,000 pounds sterling on the sale.
Page 395
Letter of 9th March 1802 from R.Voûte, The Hague, to Hope & Co., London.
Letter of 30th March 1802 from R. Voûte, The Hague, to Hope & Co., London. Under the State Regulations of 1801, the Minister of Finance had been replaced by a Treasurer General and a Council of Finances.
Letters of 6th and 11th April 1802 from R.Voûte, The Hague, to Hope & Co., London. Henry Philip Hope had arrived in the Batavian Republic in March, and had been followed in June by Thomas Hope. Neither, however, was an active partner in the firm.
Page 396
Letter of 26th July 1802 from R.Voûte, Middagten, to Hope & Co., London.
Letter of 25th August 1802 from R.Voûte, Middagten, to Hope & Co., London. At a subsequent meeting with a deputation from the Staatsbewind, Bonaparte made some adverse comments concerning Spoors. Colenbrander, Bataafsche Republiek, 280.
Page 397
Extract from Het Register der Resolutien van Thesaurier-General en Raden van Finantieën der Bataafsche Republiek, dated Wednesday, 14th July 1802, No. 4.
Letter of 26th July 1802 from R.Voûte, Middagten, to Hope & Co., London.
Letter of 21st July 1802 from R.Voûte, Middagten, to P.C.Labouchère, ‘c/o 30 or 31, au Doelen du Gaarnalenmarkt,’ Amsterdam.
Letter of 21st July. 1802 from P.C.Labouchère, Amsterdam, to Van Son(?), The Hague.
Page 398
Letter of 3rd August 1802 from M.H.Van Son, The Hague, to P.C. Labouchère, (?). Letter of 18th August 1802 from R.Voûte, Middagten, to Hope & Co., London.
While in Paris, Labouchère had also discussed the Portuguese affair with Schimmelpenninck, the Batavian envoy to France, who was greatly in favour with Bonaparte. Schimmelpenninck attributed the hesitant attitude on the part of the Staatsbewind to Hope’s offer to pay ¼% tax on the loan, which, he said, had aroused suspicions of ulterior motives. The envoy promised to put in a good word for Hope & Co. in The Hague, but this had no effect. It was said of Schimmelpenninck that he had told his Portuguese counterpart that Portugal could have done better with another house, and that permission for the loan would then certainly have been forthcoming. Following the rejection of the request, Sir Francis Baring wrote to Talleyrand, asking him to instruct the new French envoy to the Batavian Republic, De Sémonville, to make a further appeal for the approval of the loan. Letter of 25th August 1802 from R.Voûte, Middagten, to Hope & Co., London.
This was a misstatement. As we have already seen, the proposal to transfer the loan to Amsterdam emanated from Sir Francis Baring.
Page 399
Letter of 3rd August 1802 from Henry Hope, London, to P.C.Labouchère, Paris.
Mr.Th.L.Ingram, Archivist of Baring Brothers & Co. kindly allowed us to read a volume concerning the Portuguese loan which he has written and which is based on discoveries made by him in the Northbrook Papers, which are kept at the Company’s offices in London. This reveals that Sir Francis Baring desired a far-reaching merger, and indeed continued to hope for such a development right up to the enactment of the new deed of partnership in October 1802. Voûte had earlier referred to Sir Francis’s plan for one of his sons to become a partner in Hope & Co. Letters of 4th and 22nd May 1802 from R.Voûte, Middagten, to J.W.Hope, London.
Page 400
Letter of 21st February 1803 from H. Hope, London, to J.Williams Hope
Letter of 17th September 1802 from Hope & Co., London, to P. Taay, Amsterdam.
Letter of 6th November 1802 from Henry Hope, London, to J.Williams Hope, Norwich.
Letter of 4th September 1802 from R.Voûte, Middagten, to Hope & Co., London.
Letter of 13th September 1802 from R. Voûte, The Hague, to Hope & Co., London.
Letter of 29th September 1802 from R.Voûte, Middagten, to J.Williams Hope, London.
Page 402
Letter of 7th December 1802 from F. Baring, London, to J.Williams Hope, Amsterdam. Concerning Andries Pels & Sons: Supra, 5, 11, 13, 21.
Letter of 30th December 1802 from P.C.Labouchère, Amsterdam, to R.Voûte, The Hague.
Letter of 29th/30th December 1802 from R.Voûte, The Hague, to J.Williams Hope, Hope, Amsterdam. On 1st December 1802, Voûte had taken his seat on a committee set up to study the nature and shape of the trade with the Asiatic colonies and the administration of these. D.C.A. van Hogendorp, ed., Mémoires du Général Dirk van Hogendorp (The Hague, 1887), 131-132, 138.
The advertisement also appeared in London on 14th January 1803.
Page 403
Sir Francis Baring’s reply to a letter from J.Stanley, Lisbon, dated 1st February 1803.
Letter of 24th December 1802 from Hottinguer, Paris, to P.C.Labouchère, Amsterdam. Letter of 27th December 1802 from P.B.Babut, Paris, to P.C.Labouchère, Amsterdam.
To reach the total of 5,000 it was necessary to include the 610 bonds which belonged to the ‘Concern’ and had been redeemed at the end of 1802. Henry Hope had purchased his 3,000 bonds at 90 %, and later 418 more at 95 %. All the other bonds were sold at these rates. Voûte took 200, Insinger 50, A.P.Labouchère 20, S.P.Labouchère 23, W.G.Coesvelt 220 (of which he obtained 120 through Barings), Quintella 125, Bandeira 165 and J.M. de Souza 150. Labouchère himself took 19.
Controlling the sales in this manner also enabled the rate to be kept up. In fact, we are concerned here with receipts which could be exchanged for bonds at a convenient moment. During his stay in Lisbon in 1802, Labouchère had devised a plan for manipulating the market in such a manner that the bond price would gradually climb to the desired figure of 95. But the subsequent phase envisaged by him-‘throwing open’ the market at that level-was not realized. Letter of 17th February 1802 from P.C.Labouchère, Lisbon, to Hope & Co., London.’
Insinger took a further 25, Taay received 7, W.G.Coesvelt a further 43, and Bandeira, Quintella and J.M. de Souza each acquired an additional 100. 6 The available details of the distribution of the bonds cover the period up to the end of 1805. Infra, Appendix E-IV.
Page 404
Letters of 5th March 1803 from J.Stanley, Lisbon, and J.P.Quintella and J.F.Bandeira, Lisbon, to P.C.Labouchère, Amsterdam. Letter of 18th March 1803 from J. Stanley, Lisbon, to P.C.Labouchère, Amsterdam. Also the royal instruction dated 7th March 1803, transmitted by Don Rodrigo de Souza Coutinho and enclosed with the letter of 12th March 1803 from J.P.Quintella and J.F.Bandeira to Hope & Co., Amsterdam.
Letter of 1st April 1803 from Sir F.Baring, London, to Hope & Co., Amsterdam.
Letters of 29th March and 5th April 1803 from P.C.Labouchère, Amsterdam, to Sir F.Baring, London.
Extract from a letter of 22nd September 1802 from the Viceroy of Brazil to Don Rodrigo de Souza Coutinho, quoted in a letter of 5th April 1803 from J.Stanley, Lisbon, to P.C.Labouchère, Amsterdam.
Letter of 24th July 1802 from J.Stanley, Lisbon, to Sir F.Baring, London; ‘Portugal Concern,’ 31.
Page 405
The ‘Amazone’ carried 75,000 carats, and thus 90,000 carats in all reached England. At the auction of the seized diamonds. Hope’s agent only managed to secure 1,200 carats, because his limits were too low. Other buyers included the house of Couderc in Amsterdam. Letters of 23rd, 26th, 30th and 31st August 1803 from Sir Francis Baring, London, to Hope & Co., Amsterdam.
Letter of 25th August 1803 from Sir Francis Baring, London, to Don J.M. de Souza, Paris.
Letter of 13th October 1803 from J.M. de Souza, Paris, to Hope & Co., Amsterdam.
Page 406
Schäfer, Geschichte von Portugal, v, 620-621. In letter book VI, 558: an effusive valedictory letter to Don Rodrigo de Souza Coutinho (which was not despatched). The letter which was sent, and which was couched in much calmer terms, will be found in A 11, 2.
Letter of 13th December 1803 from F. Baring & Co., London, to J.F.Bandeira, Lisbon. Letter of 26th January 1804 from Hope & Co., Amsterdam, to Don Louis de Vasconcellas, Lisbon.
Letter of 20th January 1804 to F.Baring & Co., London, A 11, 72.
Letter of 22nd January 1804 from F.Baring & Co., London, to Hope & Co., Amsterdam. This letter may have reached Labouchère before he wrote to Don Louis; if so, this would explain his change of mind.
Letter of 29th June 1804 from Baguenault & Co., Paris, to P.C.Labouchère, Amsterdam.
Page 407
Letter of 18th May 1804 from Baguenault & Co., Paris, to Hope & Co., Amsterdam. Baguenault’s interest in this matter was professional, for the payments in Paris were routed via the house which bore his name.
The first indication of this appears in a letter of 26th March 1804 to J.Stanley, Lisbon, A11, 161. Cf. ‘Kasboek 1804–1806,’ VI-ba-62.
‘Kasboek 1804–1806,’ VI-ba-62, 18-49.
Letter of 28th February 1805 to Francis Baring & Co., London, A 11, 561.
Page 408
Letter of 21 st October 1803 to John Stanley, Lisbon, VI, 581.
Letter of 28th October 1803 to John Stanley, Lisbon, VI, 586.
Letter of 28th October 1803 to John Stanley, Lisbon, VI, 586.
Letter of 13th February 1804 to John Stanley, Lisbon, A 11, 94. Letter of 13th February 1804 to J.F.Bandeira, Lisbon, A 11, 95.
Page 409
Letters of 21st and 24th May 1804 to J.F.Bandeira, Lisbon, 208 et seq. Bandeira was not obliged to take more than two million pounds annually. The royal storehouse in Lisbon contained 600,000 pounds, and supplies in 1804 were expected to total 1,700,000 pounds. Labouchère took the view that if such a quantity were to materialize in 1804, imports in the ensuing year would have to be limited to 1-1.2 million pounds if a fall in prices was to be avoided.
Letter of 28th February 1805 to F. Baring & Co., London, A 11, 561.
Letter of 13th February 1804 to J.F.Bandeira, Lisbon, A 11, 96.
‘Diversen Documenten laast 1700-begin 1800,’ 511-513.
Page 410
Letter of 13th April 1804 to Voûte Bros., en ville, A11, 184. Barings participated in the brazilwood concern to the same extent as in Account F.R. and the entire Portuguese affair, namely one-quarter. The ratio of 5:2 in favour of Hope, to which reference was made on page 389, was thus subsequently altered.
There are no reports concerning the contract between Bandeira and Hope, but the settlement accounts show clearly that the Company acted simply as agents for Bandeira and that they paid him promptly for the quantities contracted with Voûte, having of course deducted insurance premiums, commission, etc. The quantities and prices are shown in Appendix E-v.
Letter of 13th June 1804 from Baguenault & Co., Paris, to P.C.Labouchère, Amsterdam.
Letter of 18th June 1804 to Talleyrand, Paris, A11, 230.
Letter of 18th June 1804 to J.M. de Souza, Paris, A 11, 231.
Letter of 29th June 1804 from Baguenault & Co., Paris, to P.C.Labouchère, Amsterdam.
Hope & Co. were not concerned with these payments, for which Bandeira employed the house of Rougemont. When this house went bankrupt, in February 1803, the Portuguese government lost 450,000 livres. When it became clear that this loss would not have been sustained if De Souza had adhered to his instructions concerning the payments, he was held responsible for the consequences. His conduct in this matter set a pattern which was later to be emulated by the Spanish agent, Izquierdo.
Page 411
Letters of 25th June and 6th September 1804 from Baguenault & Co., Paris, to P.C.Labouchère, Amsterdam. Accounts relating to the Portuguese Loan, 1804–1806, 1-2. Talleyrand’s distrust of De Souza was so intense that he sent a personal representative to attend a meeting between Baguenault and De Souza.
Letter of 29th June 1804 from Baguenault & Co., Paris, to P.C.Labouchère, Amsterdam.
Letter of 5th July 1804 to Baguenault & Co., Paris, A 11, 259.
Letter of 13th July 1804 from Baguenault & Co., Paris, to P.C.Labouchère, Amsterdam. The plan provided for the undertaking to be signed by Bandeira, and it is probable that this occurred. The payments were not made at strict monthly intervals, but on 29th June, 6th July, 22nd August and 5th November 1804; 26th January, 12th March, 9th April, 21st May, 13th July, 20th September, 12th October and 24th December 1805; and 25th February, 27th May, 1st and 6th August 1806. According to another source, Hope & Co. were obliged to advance monies for the last two instalments. Fugier, Napoléon et l’Espagne, 11, 65.
Letter of 17th August 1804 from Baguenault & Co., Paris, to P.C.Labouchère, Amsterdam. The Portuguese Court unjustly accused Hope and Baguenault of failing to make payment direct to the French Treasury. In fact, the houses followed the practice adopted in 1802 and 1803.
Letter of 6th September 1804 from Baguenault & Co., Paris, to P.C.Labouchère, Amsterdam.
The fact that De Souza’s wife, the former Countess de Flahaut, had been one of Talleyrand’s mistresses evidently did not save him. Nouvelle Biographie Générale, XLIV, 275.
’state of the Loan, as stated to the Minister,’ 31st December 1803.
Letter of 2nd February 1804 to J.Stanley, Lisbon, A 11, 85, 103.
Page 412
Letter of 9th March 1804 to J.P.Quintella, Lisbon, A 11, 128.
Letter of 10th May 1804 to Don Louis de Vasconcellas, Lisbon, A 11, 195 et seq.
Letter of 12th June 1804 J.P.Quintella, Lisbon, to P.C.Labouchère, Amsterdam.
Letter of 8th October 1804 to J. Stanley, Lisbon, A 11, 413. Letter of 10th January 1805 to Don Louis de Vasconcellas, A 11, 526 et seq.
Page 413
Letter of 13th November from R. Voûte, Utrecht, to P.C.Labouchère, Amsterdam. Schäfer, Geschichte von Portugal, v, 627.
Ibid., 629.
Letters of 15th January, 9th June, 11th August and 8th December 1808 to the Baron de Quintella and Jacinto Fernandes da Costa Bandeira, Lisbon, VII, 281, 390, 467, 564. On 8th December the Company wrote acknowledging receipt of the letters of 8th and 13th October. Letters of 14th January, 8th April, 9th June, 11th August and 8th December 1808 to J.Stanley, Lisbon, VII, 267, 344, 391, 466, 563. The letter of 8th April was carried by G. J.Ouvrard, who visited Lisbon on business. Ouvrard had promised to take Stanley under his wing. Stanley wrote on 4th May 1808 to say that General Junot had recognized his naturalization and that of his son.
Page 414
Schäfer, Geschichte von Portugal, v, 664.
Letter of 24th January 1809 to the Département des Finances, Lisbon, A xxVII, 13. Letter of 24th January 1809 to J.F. da Costa Bandeira, Lisbon, A xxVII, 2. Letter of 24th January 1809 to Baron de Quintella, Lisbon, A xxVII, 7. Hope drew on Bandeira and Quintella to the extent of their credit balances, which totalled cf 343,861.15.0 and cf 28,769.0.0. respectively. These balances remained frozen until the drafts were met.
Letter of 20th January 1810 to the Baron de Quintella and J.F. da Costa Bandeira, Lisbon, A xxVII, 206-207.
Schäfer, Geschichte von Portugal, v, 702, 703. Under the terms of a trade treaty dated 19th February 1810, the English paid only half the import duty levied on traders of other nationalities.
Page 415
Letter of 25th September 1809 from Baring Bros., London, to G.Kieckhoefer, Rio de Janeiro. Kieckhoefer saw in this measure the hand of the government in Brazil.
Letter of 20th January 1810 to the Département des Finances, Lisbon, A xxVII, 260. Letter of 20th January 1810 to the Contractants de la Ferme Royale, Lisbon, A xxVII, 264. Letter of 20th January 1810 to J.F. da Costa Bandeira, Lisbon, A xxVII, 271. Letter of 20th January 1810 to Baron de Quintella, Lisbon, A xxVII, 275. The method employed at the end of 1808 was thus followed here. This time, a sum of cf 127,409.6.0. was drawn on the tobacco lessees.
Letter of 6th August 1809 from Baring, London, to J.Williams Hope, Harley Street, London.
Page 416
Letter of April 1808 from G. Kieckhoefer, Hamburg, to Hope & Co., Amsterdam.
Letter of 17th May 1808 to Matthiessen & Sillem, Hamburg, VII, 377. Letter of 12th July 1808 to Baring Bros., London, VII, 435. Hope envisaged a 10-year investment with interest at 4 % per annum, the capital being repaid in five equal instalments commencing at the end of the sixth year.
Letter of 20th February 1809 from G.Kieckhoefer, Falmouth, to Hope & Co., Amsterdam. Kieckhoefer wanted to export Silesian linen to Brazil. This could only be done via England, where the linen was subject to a heavy tax imposed under the Orders in Council, the British answer to Napoleon’s Continental System. The Portuguese envoy promised to support the measures taken by Kieckhoefer to obtain exemption from the tax.
Letter of 30th April 1809 from G.Kieckhoefer, Rio de Janeiro, to Hope & Co., Amsterdam. Letter of 3rd June 1809 from G.Kieckhoefer, Rio de Janeiro, to J.Williams Hope, East Sheen, Surrey.
Page 417
Letter of 14th August 1809 from A.Baring, London, to J.Williams Hope, London.
Letter of 6th September 1809 from P.C.Labouchère, Paris, to Hope & Co., Amsterdam.
Letters of 14th and 22nd September 1809 from P.C.Labouchère, Paris, to Hope & Co., Amsterdam.
Letter of 6th October 1809 from F.Baring, Stratton Park, Winchester, to Don Dom. de Souza Coutinho, London.
Letter of 6th October 1809 from F. Baring, Stratton Park, Winchester, to J.Williams Hope, East Sheen, Surrey.
Page 418
Letter of 11th October 1809 from A.Baring, Bishopsgate, London, to J.Williams Hope, East Sheen, Surrey. Baring’s calculations agree with the proceeds of the diamonds sold in 1808, after the deduction of commission at 4 %, del credere, etc. The average price obtained during 1809, however, works out at cf 26.50, which, at a rate of exchange of cf 9.6-9.8 to the pound sterling, was still less than the three pounds which Don Domingo demanded.
Letter of 6th October 1809 from F.Baring, Stratton Park, Winchester, to Don Domingo de Souza Coutinho, London.
Letter of 17th October 1809 from A.Baring, London, to Don Domingo de Souza Coutinho, London.
Letter of 20th October 1809 from Don Domingo de Souza Coutinho, London, to Sir F.Baring, London.
Letters of 20th and 21st October 1809 from A.Baring, London, to J.Williams Hope, London. Don Domingo persisted in addressing his letters to Sir Francis even though the replies came from Alexander Baring.
Letter of 3rd November 1809 from A.Baring, Carshalton, to J.Williams Hope, East Sheen, Surrey.
According to Kieckhoefer, this house bought between 22,000 and 25,000 carats at three pounds sterling per carat.
Letter of 9th January 1810 from J.Williams Hope, London, to Lord Liverpool, London.
Letters of 2nd and 13th January 181 o from A.Baring, London, to Don Dom. de Souza Coutinho, London.
Page 419
Letter of 13th January 1810 from G.Kieckhoefer, Rio de Janeiro, to J.Williams Hope, London. Don Domingo’s authority to negotiate with Baring and Hope was vested in him by a decree issued by the prince regent on 16th December 1809. Letter of 8th June 1810 from B.I.Targini, Rio de Janeiro, to Baring and Hope, London.
Letter of 7th May 1810 from G.Kieckhoefer, Rio de Janeiro, to A.Baring, London.
Letter of 25th September 1809 from A.Baring, Banchurch, to J.Williams Hope, London.
Page 420
Letter of 29th May 1810 from G. Kieckhoefer, Rio de Janeiro, to A.Baring, London
Letter of 2nd June 1810 from G.Kieckhoefer, Rio de Janeiro, to A.Baring, London.
Letter of 8th June 1810 from G.Kieckhoefer, Rio de Janeiro, to A. Baring, London.
Labouchère, ‘Un financier diplomate,’ 427.
Page 421
Letter of 24th April 1810 from A.Baring, London, to J.Williams Hope, London.
Letter of April 1810 from Sir Francis Baring, London, to Don Domingo de Souza Coutinho, London. It is not clear from the text whether Sir Francis was thinking also of the repayment of the loan from the British government, though it is probable that he was.
Letter of 6th August 1810 from Don Domingo de Souza Coutinho, London, to A.Baring, London.
Letter of 4th July 1810 from John Stanley Jevons, Lisbon, to A.Baring, London.
Letter of 17th March 1810 from Baron de Quintella, Lisbon, to Hope & Co., Amsterdam.
Page 422
Letter of May 1810 from P.C.Labouchère, …, to the Count of Montalivet, Paris.
Letter of 14th August 1810 from A.Baring, London, to Don Domingo de Souza Coutinho, London. 14th August 1810: Proposal to Don Domingo de Souza Coutinho concerning the Portuguese Loan.
Schäfer, Geschichte von Portugal, v, 668-677.
Letter of 15th October 1810 from A.Baring, London, to P.C.Labouchère, …
Page 423
‘Portugal Concern,’ 39 et seq. J.E.Lucena and M.S. de Paiva, Portuguese government agents in London, acted as witnesses. It is probable that the payment of the 30,000 pounds sterling was made through them. Barings did not participate in the advance of 50,000 pounds sterling. This house had had no part in the advancing of funds at the end of 1808 and 1809. In contrast to Henry Hope & Co., Barings had no financial interest in the loan. When the diamonds were sold, however, they resumed their one-fourth share.
Letter of 14th December 1810 from A.Baring, London, to P.C.Labouchère, …
1,607 bonds were to remain unredeemed on 31st December 1811, from which date they bore interest at 5 %.
Letter of 26th December 1810 to The Prince Arch-Treasurer etc., A xxVII, 539.
Page 424
Letter of 27th December 1810 from P.C.Labouchère, Amsterdam, to D.Parish, Paris.
Letters of 13th, 14th, 15th and 18th February 1811 from D.Parish, Paris, to P.C.Labouchère, Antwerp. Labouchère, ‘Un financier diplomate,’ 435-447. Letter of 11th March 1811 from Jean François le Bras, Morlaix, to Hope & Co., Amsterdam.
Labouchère, ‘Un financier diplomate,’ 453-454.
Letter of 2nd May 1811 from P.C.Labouchère, Paris, to The Duke of Gaeta, Paris.
Page 425
Letter of 20th June 1811 from P.C.Labouchère, Amsterdam, to John Hope, London. Hope had approached the Lieutenant General at the end of 1810 with a request that supplementary duty be waived in the case of the diamonds. Letter of 26th December 1810 to The Prince Arch-Treasurer, etc., A xxVII, 539. Letter of 12th July 1811 from the Count of Montalivet, Paris, to W.G.Coesvelt, Amsterdam. Letter of 26th August 1811 from Baring Bros. & Co., London, to Hope & Co., Amsterdam.
‘Compte de Vente d’une boîte de diamants bruts du Brésil, vendu d’ordre de Son Excellence Monsr. le Chevalier de Souza Coutinho et pour compte de la Couronne de Portugal’ and ‘Invoice of a parcel of Brazil diamonds, purchased on joint account with Mrs.Hope & Co. of Amsterdam and delivered to W.G.Coesvelt Esq.’ Both documents show that the parcel totalled 24,220 carats gross. From this, however, 29 carats had to be deducted for false stones and a further 121 carats (½%) for reduced weight, a sort of tare. The remaining 24,070 carats were sold at 47 shillings per carat, yielding 56,564.10 pounds sterling gross. After the deduction of brokerage, sorting costs, etc., a nett balance of 54,528.8 pounds remained. Insinger’s account shows that this house settled with Hope for 24,0891/16 carats which fetched cf 569,086.11.8 nett, indicating an average price of just over cf 23.50 per carat. At a rate of exchange of cf 10, the two houses thus made a profit of about cf 24,000 on the deal. Grootboek 1812: 77.
Letter of 18th October 1811 from Hope & Co., Amsterdam, to Baring Bros., London. Letter of 10th January 1812 from Insinger & Co., Amsterdam, to Baring Bros. & Co., London. Letter of 10th January 1812 from Hope & Co., Amsterdam, to Baring Bros. & Co., London.
Any lengthy interruption in supplies produced a reduction in the number of cleavers and polishers. To offset the drain, Hope had taken timely steps to subsidize the training of diamond polishers. In the grootboek for 1805, the Account relating to the Portuguese Crown contains the following entries: 31st July, ‘Paid to Keyzer for 7 apprentice diamond polishers at f 150: f 1,050;’ 31st August, ‘Ditto for three apprentices: f 450;’ 30th September, ‘Ditto for 4 apprentices: f 600;’ 31 st December, ‘Ditto for 2 apprentices: f 300.’ The export of diamonds to Turkey had also ceased.
Page 426
Letter of 8th January 1812 to the Département des Finances, Lisbon, A XXVIII, 6. Letter of 8th January 1812 to Baring Bros. & Co., London, A XXVIII, 8. Hope drew on Baring for the sum paid in Amsterdam.
Letter of 21st January 1812 from P.C.Labouchère, Paris, to Hope & Co., Amsterdam. In Paris he visited the Ministers of Home Affairs, Finance and Police.
Letter of 8th March 1812 from P.C.Labouchère, Paris, to John Hope, London.
Letter of 28th August 1812 from Baring Bros. & Co., London, to Hope & Co., Amsterdam. Don Domingo’s successor proved to be opposed to the export of diamonds to Holland, and under the terms of the contract of 13th December 1810 the decision rested with him. Baring thereupon disposed of the stones to Goldsmith. The proceeds, 53,400 pounds sterling, were handed to the envoy, ‘Mrs.Baring not having received any money for that object.’ The size of the parcel will have been of the order of 22-23,000 carats.
Letter of 29th October 1812 from P.C.Labouchère, Amsterdam, to John Hope, London.
Letter of 23rd February 1813 from H.J.Swarth, Amsterdam, to John Hope, London.
Letter of 20th October 1812 from John Hope, London, to D.Berck, Amsterdam, A v, 151.
Letter of 14th October 1813 from Baring Bros. & Co., London, to Hope & Co., Amsterdam.
Page 427
Letter of 24th November 1815 from Baring Bros. & Co., London, to Hope & Co., Amsterdam.
The first parcel was of 19,751 5/8 carats and fetched cf 540,597.17.0nett; the second, of 19,898 1/4 carats, fetched cf 587,669.17.0 nett. The mean price per carat for the first parcel was just over cf 29.50. Grootboek 1815: 249; grootboek 1816: 220. The loan sum was reduced by cf 1,055,208.8.0 at the end of 1816. Grootboek 1816: 215.
The exact quantity was 19,767 carats, which fetched cf 562,562.7.0, an average of just under cf 28.50 per carat. Grootboek 1817: 271.
At the end of 1819, settlement was made in respect of 25,863 7/8 carats. These fetched cf 825,851.12.0., an average of cf 30.50 per carat. Grootboek 1819: 274. This was the nett figure after the deduction of various expenses. The market price was approximately one guilder per carat higher.
Letter of 8th January 1819 to the Département des Finances, Lisbon, A XXIX, 462. Confirmation of this will be found in H.Heertje, De Diamantbewerkers van Amsterdam (Amsterdam, 1936), 25.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 1974 Martinus Nijhoff, The Hague, Netherlands
About this chapter
Cite this chapter
Buist, M.G. (1974). The Portuguese Diamond Loan. In: At Spes non Fracta. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-8858-6_14
Download citation
DOI: https://doi.org/10.1007/978-94-011-8858-6_14
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-011-8201-0
Online ISBN: 978-94-011-8858-6
eBook Packages: Springer Book Archive