Note (return) — Chapter I

In the colonies the most striking feature of Spanish economic policy was its wastefulness. After the conquest of the New World, it was to the interest of the Spaniards to gradually wean the native Indians from barbarism by teaching them the arts and sciences of Europe, to encourage such industries as were favoured by the soil, and to furnish the growing colonies with those articles which they could not produce themselves, and of which they stood in need. Only thus could they justify their monopoly of the markets of Spanish America. The same test, indeed, may be applied to every other nation which adopted the exclusivist system. Queen Isabella wished to carry out this policy, introduced into the newly-discovered islands wheat, the olive and the vine, and acclimatized many of the European domestic animals.6 Her efforts, unfortunately, were not seconded by her successors, nor by the Spaniards who went to the Indies. In time the government itself, as well as the colonist, came to be concerned, not so much with the agricultural products of the Indies, but with the return of the precious metals. Natives were made to work the mines, while many regions adapted to agriculture, Guiana, Caracas and Buenos Ayres, were neglected, and the peopling of the colonies by Europeans was slow. The emperor, Charles V., did little to stem this tendency, but drifted along with the tide. Immigration was restricted to keep the colonies free from the contamination of heresy and of foreigners. The Spanish population was concentrated in cities, and the country divided into great estates granted by the crown to the families of the conquistadores or to favourites at court. The immense areas of Peru, Buenos Ayres and Mexico were submitted to the most unjust and arbitrary regulations, with no object but to stifle growing industry and put them in absolute dependence upon the metropolis. It was forbidden to exercise the trades of dyer, fuller, weaver, shoemaker or hatter, and the natives were compelled to buy of the Spaniards even the stuffs they wore on their backs. Another ordinance prohibited the cultivation of the vine and the olive except in Peru and Chili, and even these provinces might not send their oil and wine to Panama, Gautemala or any other place which could be supplied from Spain.7 To maintain the commercial monopoly, legitimate ports of entry in Spanish America were made few and far apart—for Mexico, Vera Cruz, for New Granada, the town of Cartagena. The islands and most of the other provinces were supplied by uncertain "vaisseaux de registre," while Peru and Chili, finding all direct commerce by the Pacific or South Sea interdicted, were obliged to resort to the fever-ridden town of Porto Bello, where the mortality was enormous and the prices increased tenfold.