The Demythification of Gold in the Spanish Enlightenment: Money, Commerce, and Markets

During the first decades of the eighteenth century the philosophy of the so-called novatores [innovators] spread throughout Spain, influenced by Francis Bacon’s empiricism. In this context, politicians began to describe and quantify Spain’s commercial relationships with foreign nations as well as the internal circulation of merchandise. Based on this new knowledge, they proposed reforms that impacted the traditional social fabric and immediately provoked resistance from more privileged groups. Enlightenment and economic criticism became aspects of the same evolution in thinking. Discussions focused on questions about the genuine riches of the country and on the best methods of improving industry and commerce. Very soon after, the function of gold started to be seen properly in context leading to its replacement by other types of payment that would facilitate the circulation of merchandise. This process led to the consideration of the advantages and disadvantages of the introduction of paper money.