=206. Restriction of trade to appointed fleets.=—Ships could not sail
to America as might suit the convenience of merchants, but had to sail
from a given port (Seville or Cadiz), at a given time, to a given port
in America (Porto Bello near the modern Colon, or Vera Cruz). The
government by this restriction made it easier to protect the ships at
sea, and to collect taxes from their cargoes, but it bound the arms of
merchants so fast with its official red tape that they were weak and
helpless. In theory two fleets left Spain each year, one for Central
America and one for South America; in fact there were years together,
especially in the eighteenth century, when fleets did not sail, and
when the colonial possessions might have been entirely non-existent so
far as regarded benefit to the mother-country.
=207. Restriction of the market by the discouragement of
emigration.=—On arrival in America a cargo was sold sometimes for a
tremendous advance over cost. Sometimes, however, and more and more
frequently as time went on, a fleet would find on arrival that there
was no market for its goods, and they would be sacrificed or brought
back to Spain unsold. A special reason for this will appear later,
when we refer to the growth of smuggling. One general cause, however,
for the weakness of Spanish colonial commerce must be noticed in this
place. In contrast to the English, who stimulated emigration and
so built up a market for their wares in the colonies, the Spanish
kings kept emigration under a system of regulation which was almost
inconceivably strict. Colonists were discouraged from settling in the
New World not only by the difficulty of getting permission to go out,
but also by the poor chances for making a living when they arrived.
They were strictly forbidden to engage in any industry which could
threaten to compete with a Spanish industry; they were tied down to
residence in some particular province; and they were prevented from
developing the resources about them by restrictions which applied not
only to trade with the mother-country but also to intercolonial trade.
Trade with the Philippines, for instance, was closely restricted or
even prohibited. Districts in the southern part of South America were
subject to similar burdensome restrictions. A settler on the La Plata
might have to get his European wares by a trip across the Continent to
Lima, then up the west coast, and across the isthmus to Porto Bello.
When the privilege of receiving two ships a year was granted to Buenos
Ayres a customs frontier was established in the interior to prevent
goods from reaching Peru by this route.
Public-domain text, read in full here on John Shaqi.
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