Port · Portugal

Lisbon

Lisbon, on the River Tagus, was the capital of Portugal and its empire. Around 1715, under King João V, gold from Brazil arrived there in armed fleets, and much of it flowed on to England to pay for English cloth under the Methuen Treaty of 1703. Lisbon also imported salt cod and grain, financed part of the slave trade from Angola to Brazil, and was a seat of the Inquisition.

What was Lisbon like around 1715?

Lisbon sits where the River Tagus widens into a great harbour before meeting the Atlantic. It was the capital of Portugal and of an empire that reached from Brazil to Angola and India.

King João V came to the throne in 1706. Portugal made peace with France in 1713 and with Spain in 1715. Gold, and later diamonds, from Brazil gave the king so much money of his own that he stopped calling the Cortes, Portugal’s parliament. He spent lavishly on churches, palaces and his court. In 1716 he had Lisbon’s archbishop made a patriarch, a very senior church rank, and in 1720 he founded a Royal Academy of History.

Portugal and England were old friends. Their alliance dates from a treaty of 1373, and the British government still calls it the oldest diplomatic alliance in the world.

How did Brazilian gold reach Lisbon?

In the 1690s prospectors found gold in the rivers of Brazil’s interior, in the region later called Minas Gerais, “General Mines”. A gold rush followed from about 1693 to 1695. The crown claimed a fifth of all gold, a tax called the royal fifth.

The gold travelled to the coast and sailed for Portugal in the Brazil fleets, convoys of merchant ships from Rio de Janeiro, Salvador da Bahia and Pernambuco, guarded by royal warships. They also carried Brazilian sugar and tobacco. The fleets landed at Lisbon and at Porto. From 1720 gold arriving in Lisbon had to be registered at the city’s Mint, and almost all of it was turned into coins there. Portugal kept this convoy system until 1765.

Why did so much of Brazil’s gold end up in England?

On 27 December 1703 the English envoy John Methuen signed a trade treaty with Portugal. England lowered its taxes on Portuguese wine, and Portugal opened its markets to English woollen cloth. Wine for woollens became the backbone of trade between the two countries. Portugal’s own cloth industry suffered.

England sold Portugal far more than it bought, and the difference was paid in Brazilian gold. Historians estimate that somewhere between half and three-quarters of the gold reaching the Tagus left again, mostly for England, some of it smuggled. Small mail ships called packet boats carried much of it to Falmouth in Cornwall. London’s mint turned more than a million pounds’ worth of Portuguese gold into English coins between 1710 and 1714, and in 1713 a man in Exeter said almost all the money there was Portuguese gold.

What was the British Factory in Lisbon?

English merchants had lived in Lisbon since at least the early 1600s. A treaty of 1654 gave them special privileges, and they organised themselves as the Factory. Here the word meant a merchants’ association, not a workshop. It lasted until 1810.

The treaty of 1703 made the years that followed a golden age for these merchants. In the early 1720s, by one historian’s count, about six hundred English ships a year called at Lisbon. They brought cloth, cod and grain and loaded wine, Brazilian goods and gold. Only after 1755 did Portugal’s chief minister, later the Marquês de Pombal, set out to curb their privileges.

Why did Lisbon buy salt cod and grain?

Portugal had not grown enough grain to feed itself since the Middle Ages, and it imported wheat, often from England. Selling grain became an important business for the British merchants of the Factory. Shipments of flour and wheat from the American colonies grew later, becoming large only from the late 1730s.

Salt cod, called bacalhau in Portuguese, was an everyday food. Around this time Portugal bought 150,000 quintals (a quintal was roughly a hundredweight) or more of salt fish a year from the English fishery at Newfoundland. During the war of 1702 to 1713, when Spain was closed to English traders, Portugal was the only market still buying English cod.

Rice from Carolina came later. From 1704 English law forced colonial rice to travel through England first, and sales to Portugal and Spain nearly stopped. Only after a law of 1730 allowed rice to sail straight to southern Europe did Portugal become a big buyer.

What part did Lisbon play in the slave trade?

Brazil received more enslaved Africans than any other place in the Americas: about 4.9 million people over nearly four centuries, according to the SlaveVoyages database. Many were taken from Angola, a Portuguese colony, through the port of Luanda. The gold rush made demand even greater, as enslaved people were forced to work the mines as well as the sugar plantations. In 1701 the crown tried to limit how many could be sent to the mines, but miners bought more illegally with untaxed gold.

Much of this trade ran directly between Brazil and Angola, and Brazilian ships carried many of the captives. Historians disagree about how much Lisbon controlled it. Some argue that Lisbon merchants held the royal contracts, lent the money and supplied most of the cloth, guns and other goods used to buy captives in Angola. Others stress the role of merchants in Brazil. Either way, Brazilian gold, sugar and tobacco bought with this forced labour flowed back to Lisbon.

What did the Inquisition do in Lisbon?

The Inquisition was a church court that tried people for religious crimes. In Portugal its main targets were New Christians, descendants of Jews who had been forced to convert, accused of secretly practising Judaism. From 1708 dozens of New Christians in Rio de Janeiro were arrested and shipped to Lisbon for trial. They were sentenced at autos-da-fé, public ceremonies of judgement, in 1709, 1711, 1713 and 1716, and lost their property. At Lisbon autos in 1726, 1729 and 1730 some prisoners were burned to death.

One of those caught up in the Rio arrests was Mariana Pequena, a woman from Angola who had been enslaved and taken to Brazil, and won her freedom there. The Lisbon Inquisition condemned her in 1711. Many New Christians fled instead: about 1,500 refugees from Portugal joined the Jewish community in London between 1700 and 1730.

What happened to Lisbon later?

On the morning of 1 November 1755, All Saints’ Day, a huge earthquake struck. A tsunami swept the waterfront and fires burned for about six days. Estimates of the dead in Lisbon range from about 40,000 to 60,000. Much of the city that João V knew was lost and had to be rebuilt. The Brazil fleets ended in 1765.

Legend or fact?

Legend says: The Methuen Treaty started England’s trade with Portugal.

Records show: English merchants had traded in Lisbon since the early 1600s and held treaty privileges from 1654. The 1703 treaty cut taxes on Portuguese wine and opened Portugal to English woollens.

Legend says: Brazil’s gold made Portugal rich for good.

Records show: It made the crown very rich, but much of it flowed on to England and northern Europe to pay for imports.

Legend says: Lisbon was the great market for Carolina rice from the start.

Records show: From 1704 to 1730 colonial rice had to pass through England and sales to Portugal nearly stopped. Direct trade began after 1730.

Legend says: Bacalhau was always caught by Portuguese fishermen.

Records show: Around 1715 much of Portugal’s salt cod came from the English fishery at Newfoundland.

Legend says: The Lisbon visitors see today is the city of 1715.

Records show: The 1755 earthquake, tsunami and fires destroyed much of the old city. The riverside centre was rebuilt afterwards.

Sources

  1. Portugal: The 18th century, Encyclopaedia Britannica. Methuen Treaty of 27 December 1703; João V’s royal fifth and rule without the Cortes; the patriarchate of 1716; English merchants’ commanding position; Pombal after 1755.
  2. Methuen Treaty, Encyclopaedia Britannica. Lower English duties on Portuguese wine in return for English woollens, and the effect on Portuguese cloth making.
  3. John V, king of Portugal, Encyclopaedia Britannica. Reign 1706–1750, Brazilian gold and diamonds, peace with France 1713 and Spain 1715, the Royal Academy of History, church spending.
  4. Lisbon: History, Encyclopaedia Britannica. English and other foreign merchants in Lisbon; the British Factory and its end in 1810.
  5. Lisbon earthquake of 1755, Encyclopaedia Britannica. Date, tsunami, fires and the higher estimate of deaths.
  6. Brazilian Gold and the Lisbon Mint House (1720–1807), Rita Martins de Sousa, e-Journal of Portuguese History 6:1 (2008). Gold fleets from Rio, Bahia and Pernambuco; registration and coining at the Lisbon Mint from 1720; drain of gold to Britain; end of the fleets in 1765.
  7. Brazilian Gold and the Commercial Sector in Oporto, 1710–1750, A. J. R. Russell-Wood, Portuguese Literary & Cultural Studies 23/24 (2012). Gold found in the 1690s; fleets to Lisbon and Porto; gold leaving Portugal mainly for England; royal spending.
  8. Anglo-Portuguese Trade and Monetary Transmission During the Eighteenth Century, Nuno Palma (working paper) (2012). Estimates of the share of gold sent to England; Falmouth packets; Portuguese gold at the London mint 1710–1714 and in Exeter in 1713; English ships at Lisbon in the 1720s.
  9. Brazil: Five Centuries of Change, 2.1 Gold Discovered, Brown University Library. The gold rush of 1693–1695, the royal fifth, and the 1701 limit on enslaved Africans sent to the mines.
  10. Fish and Flour for Gold, 1600–1800: Southern Europe in the Colonial Balance of Payments, James G. Lydon, Library Company of Philadelphia (2008). Rice enumerated in 1704 and sales to Iberia nearly ceasing until 1730; colonial grain to southern Europe large only from the late 1730s; the lower estimate of 1755 deaths.
  11. An Act for granting liberty to carry rice from Carolina in America (3 Geo. II), Act of Parliament, 1730 (Gilder Lehrman Collection catalogue) (1730). Direct shipment of Carolina rice to Europe south of Cape Finisterre.
  12. The English Fishery and Trade in the 18th Century, Heritage Newfoundland and Labrador (Memorial University). Portugal’s purchases of Newfoundland salt fish and its role as the only market during the 1702–1713 war.
  13. The British Factory and the corn trade in eighteenth-century Portugal, L. M. E. Shaw, British Historical Society of Portugal (1994). Portugal’s need for imported grain from England and the corn trade of the British merchants.
  14. Bankers for the slave trade, Carlos Fioravanti, Pesquisa FAPESP (on research by Maximiliano Menz) (2015). Luanda as Angola’s main slave port; the debate over Lisbon’s financing of the trade; Brazilian goods sent to Lisbon.
  15. Truco: Brasil foi o local que mais recebeu escravos nas Américas, Patrícia Figueiredo, Agência Pública (citing SlaveVoyages) (2018). About 4.86 million enslaved Africans landed in Brazil, 1501–1900.
  16. Some eighteenth-century refugees from Brazil, Edgar Samuel, Jewish Historical Studies 43 (2011). Arrests of New Christians in Rio from 1708, Lisbon autos-da-fé, burnings in 1726–1730, refugees to London.
  17. Mariana Pequena, a black Angolan jew in early eighteenth-century Rio de Janeiro, Kalle Kananoja, European University Institute working paper (2013). Mariana Pequena’s life and her condemnation by the Lisbon Inquisition in 1711.
  18. The Anglo-Portuguese Alliance and the English Merchants in Portugal, 1654–1810, L. M. E. Shaw (Ashgate) (1998). The 1654 treaty and the privileges of English merchants in Portugal.
  19. Armadas do Brasil, Infopédia (Porto Editora). Royal armadas escorting the Brazil fleets; the fleets abolished in 1765.
  20. Minas Gerais, Encyclopaedia Britannica. The mining region of Brazil’s gold rush and the meaning of its name.
  21. UK and Portugal celebrate the world’s longest diplomatic alliance, UK Government (2023). The 1373 treaty and the alliance as the oldest still in force.

Written for Silver & Sails. Facts last checked against these sources on 12 October 2026. Found a mistake? Tell us.