The Buccaneers in the West Indies in the XVII Century | Page 4

second principle was the mercantile doctrine which, considering as wealth itself the precious metals which are but its symbol, laid down that money ought, by every means possible, to be imported and hoarded, never exported.[4] This latter theory, the fallacy of which has long been established, resulted in the endeavour of the Spanish Hapsburgs to conserve the wealth of the country, not by the encouragement of industry, but by the increase and complexity of imposts. The former doctrine, adopted by a non-producing country which was in no position to fulfil its part in the colonial compact, led to the most disastrous consequences.
While the Spanish Crown was aiming to concentrate and monopolize its colonial commerce, the prosperity of Spain itself was slowly sapped by reason of these mistaken economic theories. Owing to the lack of workmen, the increase of imposts, and the prejudice against the mechanic arts, industry was being ruined; while the increased depopulation of the realm, the mainmort of ecclesiastical lands, the majorats of the nobility and the privileges of the Mesta, brought agriculture rapidly into decay. The Spaniards, consequently, could not export the products of their manufacture to the colonies, when they did not have enough to supply their own needs. To make up for this deficiency their merchants were driven to have recourse to foreigners, to whom they lent their names in order to elude a law which forbade commerce between the colonies and traders of other nations. In return for the manufactured articles of the English, Dutch and French, and of the great commercial cities like Genoa and Hamburg, they were obliged to give their own raw materials and the products of the Indies--wool, silks, wines and dried fruits, cochineal, dye-woods, indigo and leather, and finally, indeed, ingots of gold and silver. The trade in Spain thus in time became a mere passive machine. Already in 1545 it had been found impossible to furnish in less than six years the goods demanded by the merchants of Spanish America. At the end of the seventeenth century, foreigners were supplying five-sixths of the manufactures consumed in Spain itself, and engrossed nine-tenths of that American trade which the Spaniards had sought so carefully to monopolize.[5]
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