English merchants in Lisbon were in a privileged position with exemptions from local tax and regulations. Stephens was signed on for seven years apprenticeship, but his uncle's business failed and he was taken as a partner on by a successful merchant, George Medley. At this time Carvalho e Melo was starting his rise to power and began getting into disputes with the English merchants. Then, in 1755, an earthquake destroyed Lisbon and much of the English commercial activity. Carvalho e Melo, however, enhanced his power by taking control of the situation.