Richa d Ha ding
Se gio Solbes Fe i
(Coo ds.)
The Con ac o S a e and
I s Implica ions, 1659-1815
CONTRACTOR STATE GROUP (CSG)
In e na ional Cong ess
Las Palmas de G an Cana ia
16 h-18 h No embe 2011
The ela ionship be ween p i a e en e p ise and he s a e has been one o he mas e
na a i es o Eu opean his o y. Whe he i is an examina ion o he eme gence o he
mode n s a e, he economic de elopmen o Eu ope, he dis ibu ion and exe cise o
powe among i s eli es o he conduc o wa be ween s a es, he links be ween s a es
exe cising powe o e de ined e i o ial uni s and he p oduc ion o weal h wi hin
hose uni s a e undamen al o an unde s anding o e en s. In he las qua e o he
wen ie h cen u y his o ians’ in e es in hese links in ensi ied and e lec ed a simila
in e es among poli ical scien is s and economis s in he de elopmen o he mode n
s a e sys em. Posi i is assump ions abou economic sys ems and poli ical a ionali y
a e inc easingly challenged by wo ld e en s and he de elopmen o heo y. Two wo ld
wa s had called a ionali y in o ques ion, while he ajec o y o e en s in Wes e n and
Eas e n Eu ope unde mined a ai h in bo h Anglo-Saxon economic excep ionalism
o communis de e minism.
The mode n s udy o s a e o ma ion has come a long way since he 1970s and has
depended hea ily on his o ical analyses o diffe en s a es and hei pa hs o ‘mode ni y’.
A majo con ibu ion o he deba e came in 1989 wi h John B ewe ’s concep o he
Fiscal-Mili a y S a e as an iden i iable s age in he eme gence o he B i ish s a e
be ween 1688-1783 (B ewe , 1989). He u ned he adi ional libe al idea o B i ish
poli ical and economic de elopmen on i s head. Ins ead o highligh ing he ela i e
weakness o he B i ish s a e, which p o ided he poli ical space o p i a e en e p ise
o lou ish and in luence policy, he no ed he s eng h o he s a e bu eauc acy in being
able o mobilise esou ces and deploy hem o mee he ends o s a e policy, which in
his pe iod o Eu opean compe i ion we e almos exclusi ely mili a y. This close
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Richa d Ha ding and Se gio Solbes Fe i
(edi o s)
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connec ion be ween iscal s eng h and mili a y esou ces p oduced a mili a y o ce
ou o all p opo ion o popula ion and domes ic na u al esou ces.
The elegance o B ewe ’s explana ion o B i ish de elopmen p o oked a majo
esponse among schola s in e es ed in es ing his p oposi ion wi h mo e de ailed s udies
o B i ish his o y and hose who wished o es i agains he expe ience o o he
s a es. The esul s ha e been e y ui ul. B ewe ’s o iginal hesis has been e ined by
some, es a ed o e amed by o he s. I emains a con es ed, bu use ul concep o
shape esea ch and deba e.
Pa o he p ocess o engaging wi h B ewe ’s hesis is a long- e m p ojec s a ed
in 2004 by a g oup o schola s om Spain. They assembled an in e na ional g oup o
his o ians in e es ed in a ious aspec s o he Fiscal-Mili a y S a e and i s ela ionship
o economic and mili a y de elopmen . The Con ac o S a e G oup (CSG) is now
an in e na ional esea ching eam wi h he objec i e o s udying he p ocess o g ow h
and de elopmen o na ion s a es. This p esen collec ion o essays is he esul o hei
ou h con e ence which ook place a he Uni e si y o Las Palmas de G an Cana ia
(Spain) be ween 16 h and 18 h No embe 2011.
F om he i s con e ence o he g oup, i was clea ha while a g ea deal o a en ion
had been paid o how s a es aise money o wa , much less was known abou how
hey spen ha money, how he economic-poli ical sys ems wi hin which he spending
occu ed esponded and, consequen ly, wha impac his had upon mili a y success.
The i s collec ion o essays shed ligh on all hese ma e s (Bowen and González
Enciso, 2006). By he ime he second collec ion o essays was published i was ime o
e lec on he concep o he Fiscal Mili a y S a e and, as P o esso To es’ in oduc-
ion made clea , e-connec i o he key issues o economic de elopmen and iscal lex-
ibili y; hemes ha echoed h oughou ha olume (To es Sánchez, 2008: especially
pp. 13-44). Recen ly, he hi d publica ion o he CSG has been published in which
e lec ed on he spending o he s a es, he diffe en ways o using na ional weal h
and i s economic consequences (Conway and To es Sánchez, 2010).
This ou h olume, he esul s o he con e ence held a Las Palmas, is like i s p ed-
ecesso s in ha i e lec s he s a e o he deba e a he p esen momen . The main
objec i e was, in his case, o analyse s a e ac i i y as a con ac o and he impac his
had on s imula ing he p oduc i e ac i i y in each coun y. None o he olumes ha e
ied o cons uc a igidly con ined compa a i e his o y, bu ins ead o b ing o wa d
exempla s o issues acing his o ians in e es ed in he de elopmen o he Fiscal-Mili a y
S a e. The i le o he con e ence —‘The Con ac o S a e and I s Implica ions’— and
Richa d Ha ding and Se gio Solbes Fe i
8
i s p oceedings indica es one impo an ea u e o ha cu en deba e. O e he yea s,
he e m Fiscal-Mili a y s a e has los i s p ecision. The lowes common denomina o
o i s de ini ion — ha o a s a e whose p ima y unc ion is wa a e being esou ced
p incipally ia a s a e bu eauc acy— is capable o applica ion o almos any s a e in
Wes e n and Cen al Eu ope be ween 1500 and 1815 as well as some s a es ou side
Eu ope. While his deba e con inues and he e m con inues o e ol e, he idea ha
i can be use ully used o explain a dis inc , le alone necessa y, phase in s a e o ma ion
emains illuso y. Fo schola s o eigh een h cen u y Eu ope i emains ex emely
impo an concep , bu one whose explana o y powe s a e cu en ly limi ed.
The e m ‘Con ac o S a e’ was used, ollowing he example o he i le o he 2010
monog aph by Roge Knigh and Ma in Willcox on he wo k o he B i ish Na y’s
ic ualing se ice, be ween 1793-1815 (Knigh and Willcox, 2010). In his wo k hey
highligh he ac ha he p i a e con ac o s we e he p ima y supplie s, no jus o
ic uals, bu o almos all he esou ces, including wa ships, o he Royal Na y du ing
his pe iod. The s a e was p ima ily a pu chase and consume ( i s ie and second
ie ) o he esou ces p o ided by p i a e con ac o s, no a p oduce . This has been
well known o his o ians, in ha i was he common way o waging wa since he
decline o eudal obliga ions and he changes in mili a y echnology made specialis
skills essen ial o he conduc o wa in he la e pa o he Middle Ages. Also, he
difficul ies wi h hese con ac o s ha e been a he cen e o he s a e o ma ion deba e
since i s incep ion (Pa o , 2010: 74-95). The con ac o ne e disappea ed, bu as
ecen schola ship has conceded, he ocus on he cen alising s a e, absolu ism, and
coe cion has led o a neglec o collabo a ion, co-ope a ion and accommoda ion. As
hese las elemen s ha e come back in o in e p e a ions o he ea ly mode n s a e, so i
seems impo an o e-examine he con ac o -s a e ela ionship. I makes us inco po a e
mo e explici ly he comme cial in as uc u es wi hin which hese s a es in e -ac ed.
The ac ha i poses as many p oblems as i esol es is e iden om Pa ick O’B ien’s
essay. P o esso O’B ien’s decades o wo k on he compa a i e iscal pe o mance o
ea ly mode n s a es has, wi h John B ewe ’s concep o he Fiscal-Mili a y S a e, been
he one o p ima y ounda ions o his se ies o con e ences and publica ions. He eminds
us o he need o ind a means o making judgemen s abou compa a i e iscal bases,
bo h quan i a i ely and in e ms o he ac o s ha unde pinned policy de elopmen .
He delibe a ely emphasises he Eu asian con ex , a he han he Wes e n Eu opean
expe ience. The conduc o wa is a common denomina o among he Eu opean cases,
bu as Tamaki Toshiaki poin s ou , he cul u al-poli ical impe a i e o exploi ing wa
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o wa io adi ions o p ese e a egime can be a majo in luence on policy despi e
i s absence in eali y. Wi hou impe ial expansion, economic de elopmen had o
come om domes ic e o m unde he Tokugawa shoguna e be ween 1716-45.
Whe e e con ac o s and s a e pe o mance mee , con empo a y poli ical he o ic
almos uni e sally highligh s co up sys ems, p o i ee ing and sub-s anda d quali y.
De ailed esea ch on speci ic examples o hese ela ionships has p oduced mo e nuanced
conclusions. Gene alisa ions a e no ye possible, a less, as Knigh and Willcox accep
in hei con ibu ion o his olume, is i possible o sugges ha ‘Con ac o S a e’ is
a igh concep ha will ha e analy ical o ce. Only ime will ell, bu in he mean ime,
he idea o ocusing on con ac ual ela ions and hei implica ions o mili a y success,
he eby deepening he da a we ha e, is one ha uni es mos o he schola s ep esen ed
by his olume.
Con ac s do no exis in he abs ac , bu a e esponses o a speci ic need, which
bo h clien and con ac o belie e can be ul illed wi h an ag eed p ice and quali y o
se ice. Fo he clien , in his case he s a e, he con ac is pa o cons uc ing he
supply chain o esou ces owa ds he ou come o an effec i e mili a y o ce. These
we e no simple con ac s. They in ol ed he p o ision o la ge quan i ies o goods,
o e long dis ances, o p olonged pe iods. They we e ag eed in wa ime o deli e y in
wa -zones. P ice luc ua ions could be signi ican and needs could change d ama ically.
They in ol ed he p o ision o goods ha we e paid o by he s a e ( i s ie consume ),
ecei ed by an a my o na y adminis a ion (second ie consume ) and dis ibu ed
o inal consump ion by a soldie o a sailo ( hi d ie consume ). Be ween he con ac
and he needs o he a ious consume s many expec a ions and assump ions could be
inad e en ly buil in. The poli ical powe o he consume s on he con ac a ied
conside ably o e ime and place. Simila ly, he ‘ups eam’ supply chain was equally
complex.
The pape s in his olume shed ligh on a ange o dimensions o he supply chain
and con ac managemen . One o he mos difficul p oblems o his o ians dealing
wi h his subjec is he imbalance o he su i ing e idence. To unde s and a supply
chain i is essen ial o unde s and he pa ies who made and execu ed he con ac s.
Un o una ely, ou knowledge is a bes unbalanced. In some s a es, o example
Tokugawa Japan, cen al adminis a i e eco ds a e almos en i ely absen . In mos
o he s a es unde conside a ion in his olume, s a e pape s ela ing o con ac s ha e
su i ed in almos all cases a be e han hose o he con ac o s hemsel es. Fo
he mos pa hese con ac o s emain shadowy cha ac e s. I is o en easy o iden i y
Richa d Ha ding and Se gio Solbes Fe i
10
he con ac o s, bu a less simple o unde s and how hei businesses ope a ed.
Ne e heless, in some cases co espondence does su i e, o en in he s a e a chi es,
which sheds ligh on hei iew and ac ions. Fo example, Joel Felix is able o gi e a
balanced shape o he con ac ing sys em o mili a y supply o he F ench A my du ing
he wa s o 1741-48 and 1756-63, wi h e e ence o co espondence om he di ec o o
he Muni ionnai es géne aux des i es de Fland es e d’Allemagne Jacques Ma que de
Bou ga de. Knigh and Willcox ha e been able o make ex ensi e use o co espondence
wi hin he Vic ualling Boa d pape s o cons uc a pic u e how he Boa d’s ela ions
wi h con ac o s changed o e he pe iod o wa be ween 1793-1815. Ma g i
Schul e-Bee bühl’s a icle on Ge man me chan s who b oke Napoleon’s con inen al
blockade o acili a e ade be ween B i ain and he Con inen is ano he example o
he alue o me chan eco ds in unde s anding economic wa a e.
Ano he g oup who ha e la gely been igno ed a e he commissa ies. They we e o mally
pa o he s a e adminis a i e s uc u e, managed he dis ibu ion o supplies and
some imes we e con ac o s in hei own igh , bu had less pe manence o con inui y
han hose officials who se ed in he me opoli an offices. These men expe ienced a
i s hand he quali y o he ou pu om con ac s, bu like he con ac o s hemsel es,
hey we e e y o en he bu o discon en om he soldie s o adminis a o s. The
con empo a y accoun s o hei ac i i ies a e colou ed by his hos ili y and hei own
co espondence is consequen ly o en de ensi e o sel -jus i ica o y. Ne e heless, as
S ephen Conway’s pape on he supply o he B i ish o ces in No h Ge many 1758-
63 has shown, hey can p o ide aluable e idence o how con ac s wo ked and he
obs acles in he way o smoo h execu ion. While he issue o su i ing e idence
bede ils mos o he essays in his collec ion, he e is enough o encou age u he
s udy o supply chains. A he hea o any supply ela ionship is he us which he
pu chase mus pu in he supplie . This in luenced many decisions by s a e adminis a o s
as o whe he he s a e should p oduce o i sel o pu chase p oduc s om he ma ke .
Whiche e decision is made, he e has o be con idence in cos , quali y and he eliabili y
o bo h p oduc and p oduce . The g ea e he le els o us he e is, he g ea e will
be he lexibili y on he pa s o s a e and con ac o o adjus as condi ions change.
Howe e , decisions o change a con ac o mo e o s a e p oduc ion we e elian on
good in o ma ion abou he ma ke and he po en ial supplie s, effec i e moni o ing
and isk managemen . As his collec ion shows, so much o his in o ma ion was missing
a he poin o decision and an unde s anding o changing ma ke s had o be buil -up
du ing he execu ion o a con ac . The Spanish s a e’s eac ion o his p oblem is
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11
aced in h ee essays. Agus ín González Enciso clea ly demons a es a numbe o hese
issues in ela ion o he supply o cannon o he Spanish Na y. Domes ic p oduc ion
o cannon was ne e adequa e o an expanding na y so con ac s had o be placed
wi h F ench, B i ish and Swedish manu ac u e s. Some eliance had o be placed on
domes ic p oduc ion, bu he s abili y o p i a e manu ac u e was doub ul and i was
decided o ake he ac o y in o s a e con ol. Howe e , despi e all ha was done o
secu e he quali y and quan i y o cannons om o eign and domes ic sou ces, a majo
p oblem was unmasked when a mass p oo ing o he guns in 1772 e ealed massi e
ailu es. Despi e an explici commi men o he me can ilis doc ine, he Spanish
s a e p o ed unable o s imula e domes ic p oduc ion o manage o eign supply. Ra ael
To es demons a es ha simila p oblems bese he supply hemp, igging and sailclo h.
The di ec in e en ion o he s a e as a p oduce in a agile ma ke caused majo
dis up ion o he p i a e p oduce s o sailclo h. I seems he s a e was no powe ul
enough o manage con ac s effec i ely wi hin an in e na ional ma ke , and ye oo
s ong when in e ening o domes ic p oduc ion.
As his sugges s, lexibili y was a key p oblem in s a e-con ac o ela ions. La ge
scale, effec i e and efficien supply depended on being able o manage people anging
om weal hy domes ic and o eign inancie s, o eign me chan s and in e media ies,
domes ic c a smen o small scale a me s. S a es we e no necessa ily good a dealing
wi h his ange. Howe e , as Se gio Solbes’s pape on he supply o wa d obe o he
Spanish A my du ing he eigh een h cen u y shows, he e we e aspec s o supply
which could be lexible and con olled, mo ing o and om monopoly in he supply
and be ween cen alisa ion and decen alisa ion in he budge s. He emphasizes he
diffe en decisions on his ma e be ween he diffe en eigns —and he diffe en
go e nmen al machine y i equi ed, a i ing a he conclusion ha he e is no a
consis en policy o con ac ing he wa d obe in Spain du ing he eigh een h cen u y.
This was no unique o he Spanish s a e. Pie ick Pou chasse shows ha he supply
o na al s o es om he Bal ic o he F ench na y suffe ed om he limi ed di ec
engagemen wi h he Bal ic ma ke . Despi e a h i ing ade o he Bal ic, he e we e
ew F ench me chan s esiden in he Bal ic and Scandina ian owns. A one le el
F ench ading in e es s we e se ed ex emely well by Du ch ca ie s and middlemen,
bu he cos was ha F ance’s mos pe sis en enemy du ing he cen u y, G ea B i ain,
was able o build up a huge ad an age by di ec ading links o hese po s and,
effec i ely, con ol he supply na al s o es o F ance. The con as be ween he F ench
and B i ish comme cial ne wo ks in No he n Eu ope is e iden and i is difficul no
Richa d Ha ding and Se gio Solbes Fe i
12
o conclude ha he s eng h and lexibili y o hose ne wo ks had a signi ican impac
on he F anco-B i ish na al balance in wa .
I is possible ha he Anglo-F ench comme cial s uc u es in Bal ic and Scandina ian
ma ke gi es a hin o some hing ha de ines a ‘Con ac o S a e’. The ocus he e is
less on he s a e adminis a i e sys em ha enables effec i e iscal policies o be u ned
in o ax e enues and hen in o he weapons o wa , and mo e on he s a e’s abili y o
wo k wi h a sophis ica ed supply chain, bo h domes ic and in e na ional. The ocus
o he ‘Fiscal-Mili a y S a e’ is on con ol o esou ces by di ec s a e con ol. The
‘Con ac o S a e’ seeks o con ol esou ces by he indi ec in luence o comme cial
in e es . O cou se, his implies an effec i e adminis a ion ha unde s ands he supply
chain, bu i also implies a ne wo k o supplie s who a e capable o unde s anding
and mee ing he changing needs o he s a e. These supplie s migh make la ge p o i s
in imes o wa , bu ha e go o be lexible enough o su i e he e enchmen s o
peace. Fo he s a e, he indi ec in luence on comme cial in e es is jus ano he policy
wi h he same aim as any Fiscal-Mili a y S a e policy: he effec i e mobilisa ion o
esou ces o mee he mili a y objec i es o he s a e.
The essays in his olume conce ning B i ain and he Uni ed P o inces sugges ha
his idea migh be wo h some u he in es iga ion. B i ain seemed o be ope a ing in
an en i onmen in which supply chain managemen was much easie han in Spain
o F ance. The si ua ion was a om pe ec , bu , as Knigh and Willcox indica e,
ha ing accep ed ha he Royal Na y would depend subs an ially on p i a e con ac o s,
a g ea deal o effo was pu in o moni o ing and con olling he con ac s. By he
beginning o he wa in 1793 he e was enough us in he eliabili y o con ac o s
o commi he s a e o he p ocess on a la ge scale and a en ion was ocused on making
adjus men s in pe o mance demands as he wa expanded in scale, scope and cos s.
The e was aud and ailu e, bu no on a scale ha signi ican ly hinde ed ope a ions.
This eliance on he ma ke was no new. As Richa d Ha ding’s essay shows, he
B i ish s a e had expanded i s na y o mee he demands o wa be ween 1739 and
1748 by engaging he p i a e shipbuilde s. B i ain had elied upon p i a e wa ship
building h oughou mos o he se en een h cen u y, bu u ned o p oduc ion in i s
own ya ds a he end o he cen u y and in o he i s decades o he eigh een h cen u y.
The decision o buy comple ed essels om me chan shipbuilde s and con ac o
bespoke wa ships was a p agma ic esponse o he need o expand a balanced lee
apidly. The decision elied on he us he s a e eposed in he shipbuilde s’ abili y
o ul il he demands o he con ac . Only one con ac had o be aken o e by a
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