In 1713 England acquired the asiento contract to supply Spain's American
colonies with 4,800 slaves annually and assigned the privilege to the South Sea
Company. In compensation for expected losses in the slave trade, the Company
was permitted to carry on an extensive trade in merchandise which competed with
the traditional outlets for British trade to America. This need to rely on
foreign contractors to supply slaves to the American colonies offered a threat
to Spain's trading monopoly it was further eroded by the presence of British
merchants residing at strategic ports throughout America trading in large
quantities of contraband slaves and merchandise in addition to Company trade.
Although the Spanish government took numerous steps to impede the Company's
trade including the seizure of all Company property during the wars of 1718, 1727
and 1739 they were never able to convince the Company to relinquish the asiento
for an agreed compensation. When the Company finally ceased trading at the
beginning of the War of Jenkins' Ear, it was mainly because of dwindling
returns and a new political environment in England. Although the treaty of
Aix-la-Chapelle which ended the war, provided for the Company to continue
trading for another four years, it was in no position to resume the trade.
Company agents had all returned to England at the beginning of the war and after
a severe financial loss the directors concentrated on obtaining compensation.
In 1750 the asiento contract was terminated and the South Sea Company paid
£100,000 to cover their losses in the trade
