CONFUSION DE CONFUSIONES BY JOSEPH DE LA VEGA 1688 L SCENE OF "CONFUSION" The Interior of the Stock Exchange at Amsterdam as It Looked in the Seventeenth Century A pointing by job Berck,heyde (idjo-ifigj) Reproduced through the courtesy oj the Rijlymuseum, Amsterdam This building, situated on the River Amstel, was opened in 1611. Trading was carried on in the open inner court which was surrounded by a portico supported by forty-one col umns. CONFUSION DE CONFUSIONES BY JOSEPH DE LA VEGA 1688 Portions Descriptive of the Amsterdam Stock Exchange Selected and Translated by Professor Hermann Kellenbenz Hochschule fur Wirtschafts- und Sozialwissenschaften BAKER LIBRARY HARVARD GRADUATE SCHOOL OF BUSINESS ADMINISTRATION BOSTON, MASSACHUSETTS © COPYRIGHT, 1957 BY THE PRESIDENT AND FELLOWS OF HARVARD COLLEGE Publication Number 13 of The Kress Library of Business and Economics Editor: Barry E. Supple PREVIOUS TITLES IN THE KRESS LIBRARY SERIES OF PUBLICATIONS No. 1: The Kress Library of Business and Economics, by John M. Keynes, Ab bott P. Usher, and Arthur H. Cole. No. 2: The Vanderblue Memorial Collection of Smithiana, by Charles J. Bul lock. Hewing to the Line: Supplement No. 3: The Pioneer Period of European Railroads, by Arthur L. Dunham. No. 4: An Essay on the Proper Method for Forming the Man of Business, 1716, by Thomas Watts. Introduction by Arthur H. Cole. Out of print No. 5: England's Climbing-Boys, A History of the Long Struggle to Abolish Child Labor in Chimney-Sweeping, by George L. Phillips. Out of print. No. 6: The Great Mirror of Folly (Het Groote Tafcreel der Dwaasheid), An Economic-Bibliographical Study, by Arthur H. Cole. No. 7: Du Pont de Nemours on the Dangers of Inflation: An Address by Pierre Samuel Du Pont, 1790. Translated by Edmond E. Lincoln. No. 8: The Handicrafts of France As Recorded in the Descriptions des Arts et Metiers, 1761-1788, by Arthur H. Cole and George B. Watts. No. 9: An Essay of Drapery, 1635, by William Scott Introductory essay by Sylvia L. Thrupp. No. 10: The Humanitarians and the Ten Hour Movement in England, by Ray mond G. Cowherd. No. 11: The Marchants Aviso, /5S9, by John Browne. Edited by Patrick McGrath. No. 12: The Historical Development of Economic and Business Literature, by Arthur H. Cole. Nos. 1-10: $1.00; nos. 11-12: $2.00. PRINTED AT THE HARVARD UNIVERSITY PRINTING OFFICE CAMBRIDGE, MASSACHUSETTS, U.S.A. FOREWORD A few words will suffice to justify the preparation of an introduction to English readers of Joseph de la Vega's Confusion de Confusiones. His book is the first that describes the practices of any stock exchange; it makes evident a high development of practices, with puts, calls, pools, and manipulations; and it appeared as early as the seventeenth century. Not inappropriately the stock exchange described is that of Amsterdam, a city which at the date of the volume's publication — 1688 — was still the leading financial center of the world. The book, to be sure, is hardly a systematic account of the institution; the author pursued moral, philosophical, and rhetorical objectives, and, while saying a lot that seems now to be of little value, manages somehow to leave unsaid a great deal that would be of interest for us. Nevertheless, it represents, even in its peculiar form, a really important source of information about the stock exchange, and indeed about the Dutch business world of that period. Today the original work is known to survive in only a half-dozen copies. The Kress Library is fortunate to possess one of these — the only one known to exist in the United States. Perhaps because of its literary flavor and because of the paucity of copies that had survived, the book remained unknown to modern scholars interested in business and economic history until Ehrenberg called attention to it in an essay in 1892. Subsequently, but a good many years later, German and Dutch translations were executed in 1919 and 1939, respectively. The latter version is particularly valuable. It contains a reproduction of the original Spanish text, and it includes a long historical introduction by Dr. M. F. J. Smith who not only had the benefit of the research performed earlier by the German translator, Otto Pringsheim, but had ready access to all Dutch materials on seventeenth-century business experience in the Netherlands. To translate the whole text of the book into English, however, did not appear appropriate. The diffuseness of the author and the profusion of his rhetorical excursions — which not only would make the material tedious to the modern reader but also would raise particular difficulties in the translation of numerous passages — seemed to dictate some simplification. In the end, only those sections were translated which give to the volume continuing im portance for business and economic historians, namely, the portions concerned pretty directly with the affairs of the stock exchange. The task of preparing the translation into English proved much more difficult than I had anticipated at the start. In addition to the several languages VI FOREWORD directly or indirectly involved, there was the matter of European stock-ex change practices, and the rendering of the description of these activities into the American idiom. The Library was very fortunate in being able to call upon the accumulated skills and learning of two scholars, both of whom chanced to have had German training: Dr. Fritz Redlich of the Research Center in Entrepreneurial History at Harvard, and Professor Hermann Kellen- benz, then at the University of Wurzburg. These two combined talents went far to cover all requirements. Dr. Redlich brought a knowledge of modern European financial operations plus an extensive competence in European eco nomic history, and Professor Kellenbenz contributed a familiarity with all the languages needed to handle the original text and the two translations with their introductory essays, and a specific knowledge of Dutch business life in the early seventeenth century derived in the preparation of his recent book, Unter- nehmerkrdjte im Hamburger Portugal- und Spanienhandel, 1590-1625. To some extent other scholars also were drafted, chiefly because Dr. Kellenbenz lived at a considerable distance from Cambridge, and because Dr. Redlich and I were both lacking in ability to handle either Spanish or Dutch. Happily we were able to call upon Professor Stanley J. Stein of Princeton and Dr. Richard M. Westebbe of Washington, both of whom chanced to be in Cambridge at a critical period. In the end I thought it necessary to go outside the academic world for help. Mr. Carey J. Chamberlin, a Boston investment banker with a scholarly bias, was good enough to read through the penultimate product to see if it were comprehensible to members of the modern American financial fraternity, and if we had in fact employed the proper American financial jargon. He found several places that needed alteration. To all these gentlemen the Kress Library is greatly indebted. They all performed beyond the strict call of duty under any reasonable interpretation, and they all contributed to the final success. We are particularly beholden to Dr. Redlich and Professor Kellenbenz. Although I am formally retired from the librarianship at the Harvard Busi ness School and no longer directly responsible for the literary output of the Kress Library, I am happy indeed to be able to help in preparing this brochure for the printer. In reality I am merely responding to a "reasonable duty": the work on this translation was begun in my administration and I failed to it bring to a completion before the date of my official retirement. I am pleased indeed that my successor at the Baker Library, Mr. Donald T. Clark, has dis played a keen interest in bringing out this study. Arthur H. Cole Research Center in Entrepreneurial History, Harvard University. ' INTRODUCTION Whoever comes to know Joseph Penso de la Vega's Confusion de Confusiones will recognize at once that he is concerned with a literary oddity. Here is a book written in Spanish by a Portuguese Jew, published in Amsterdam, cast in dialogue form, embellished from start to finish with biblical, historical, and mythological allusions, and yet concerned primarily with the business of the stock exchange and issued as early as 1688. Such a volume obviously requires a good deal of explaining. I Let us begin by identifying the ethnic group to which the author belonged. This was the Sephardic community of Amsterdam, the term "Sephards" being given to those Jews whose ancestors had lived on the Iberian peninsula — in contrast to the term "Ashkenasim," which was used to designate Jews of central or eastern Euro pean origin. During the fifteenth century great pressure was exerted by the Church authorities in Spain and Portugal to induce the Jews (and equally the Moors) resident there to accept Christianity. Some did, but many merely went through the necessary motions and secredy retained their earlier faith. When in 1492 the un converted Jews (and Moors) were expelled from Spain, many fled to Portugal; but in 1536 the Portuguese also introduced the Inquisition, and the recent immigrants had to look elsewhere for asylum. Many of the purely nominal Chrisdans, the "Christianos nuevos," as they were called in Spain, joined their more stiff-backed brethren in these pilgrimages. It is probably also true, relative to the second migra tion, that some of the Jews in Spain and Portugal were attracted to the cities of northern Europe by the economic opportunities there offered to their entrepreneurial skills. At all events, the de la Vega family seems to have been numbered among the "new Christians." An earlier generation had moved to Portugal; then, perhaps after 1536, it returned to Spain; and finally, a hundred years later, about 1630, it migrated to the Low Countries.