Trade commenced. A first consignment of hides and sugar was dispatched to Spain in 1551; but the merchants of Seville protested, and as a result their privileges won the day. It is a fact that the monstrous regulations which Spain had imposed upon her colonies forced the Argentines, for some considerable time to carry their exports across the continent to Callao, whence they were carried by sea to Panama; there they were again transported by land across the isthmus, and were shipped anew at Puerto Bello for Seville. Imports came by the same road. There were, however, exceptions to this rule: either by grace of provisional permits given by the King of Spain, or, more frequently, through the contraband trade. In 1617 the Province of Paraguay and the shores of the Plata were divided into three Provinces; Paraguay, Buenos Ayres (erected into a bishopric in 1630), and Tucuman, which were dependents of the viceroyalty of Peru. The captaincy of Chili also extended over both sides of the Andes. The Indians had to a great extent been divided among the colonists _en encomiendas_——that is to say, in a species of slavery; but other Indians, who were still free, were formidable enemies. Early in the seventeenth century the Jesuits instituted their first “reductions” in Paraguay, and organised in a community the Guarano Indians of the country. These “reductions,” ravaged by the Mamelukes of Brazil, were replaced by missions established on either bank of the Paraguay River, and on the Uruguay to the south of Yguassu. The order of Jesuits was suppressed in 1766. The principal towns of the Argentine of to-day were already established by the middle of the eighteenth century. At that period, so Savary informs us, “The city of Buenos Ayres contained about 4000 houses, all built of earth (adobe), but covered with tiles, with the exception of some fifty houses of brick. The inhabitants are rich, and owe their riches to the extensive trade which they carry on, both at home and abroad.” After the advent to the Spanish throne of the son-in-law of Louis XIV., France had the greater share of this trade; the King having conceded to a French company the monopoly of the Assiente——that is to say, of the trade in negroes, until by the Treaty of Utrecht France was forced to cede this monopoly to England. The two principal articles of export were at that time green hides for Europe and the Paraguayan _maté_ for Peru. On the northern bank of the Plata the Portuguese had founded the Colonia del Sacramento (1686), with a view to competing with the Spanish ports. The Spaniards seized this place once in 1724 and again in 1766; they founded Montevideo in 1726. The quarrel between the two colonies was only terminated by the Treaty of Madrid in 1750.