This is a nice little study of Spanish trade with its American colonies, especially Peru, in the 18th century. The author has read and analyzed a great number of letters and other correspondence seized from Spanish vessels and he uses this material to analyze principal-agent problems and other trust-related questions that traders had to solve. It’s an interesting subject with a unique source material and the book is an entertaining read for anyone interested in economic history, especially the microeconomic decisions of individual actors. It seems counterintuitive that relations of trust could be established across distances requiring several months’ travel one way. The author describes quite clearly how it could be done, but also the pitfalls of these insecure arrangements.

The book goes into quite a lot of detail and makes no explicit general argument concerning the requirements of trust. I would personally have preferred a little bit more background on the role of the Spanish state behind these trade arrangements, even though free trade wasn’t an important priority for states in the 18th-century. The chapters on confidentiality (reputation, family, friends) and risk and competition (the uncertainties of the market, selling on credit) are still very informative despite the narrow source material. All in all this is an absorbing and very well-written book.