Pious Funds across the Pacific (1668–1823): Charitable Bequests or Credit Source?
“Mercy,” preached Fray Casimiro Díaz, “is the legitimate daughter of compassion. And the indigent exclaims, the widows, orphans, and destitute women broadcast, even the religious communities acclaim, that mercy is the distinctive virtue of this Holy Board, for your pious gifts reach all of them.” The Augustinian friar was addressing the guardians and members of Manila's Hermandad de la Misericordia (Confraternity of Mercy) in a mass that commemorated the anniversary of its foundation in mid September of 1743. At first glance, the occasion would not deserve much attention, another sermon praising the alms-giving labor of a confraternity. Spanish America swelled with similar institutions devoted to administering alms and endowments to sponsor prayers and charity. Yet, the Manila Misericordia was different. Church corporations in the Americas invested donations in low-interest annuities in perpetuity attached to property. Charity donors in Manila had found a better way to maximize pious gifts: by creating legacies to be invested in maritime trade loans at high interests.