The South American Republics, Part 1 of 2Dawson, Thomas Cleland
History
The South American Republics, Part 1 of 2
Dawson, Thomas Cleland
South America -- History
The home government enacted laws of incredible severity in trying to
enforce this policy. In 1599 the governor of Buenos Aires was instructed
to forbid all importation and exportation under penalty of death and
forfeiture of property. The shipping of hides and horsehair to Spain
would seem to be harmless enough, but the Spanish government dreaded
that gold and silver might be smuggled out in the packages. The
government would lose its royal fifth and the precious metals might be
sent to Spain's rivals and enemies in Europe. According to the economic
ideas then accepted, gold and silver alone constituted wealth, and every
ounce mined in America which did not reach Spain's coffers was
considered irretrievably lost. To prevent clandestine shipments of the
precious metals all commercial intercourse from the coast to the
interior was made illegal, and no goods whatever were permitted to pass
along the road between Buenos Aires and Cordoba.
In the very nature of things such laws were unenforcible. Even the
governors sent out for the special purpose of repressing evasions
recommended modifications. But the Cadiz monopolists were stubborn and
their influence with the Court was all-powerful. The laws remained on
the statute books only to be constantly disregarded. No human power
could keep people who lived on the seashore, and who had hides, wool,
and horsehair to sell, from exchanging them for clothing and tools.
Perforce Buenos Aires became a community of smugglers. English and Dutch
ships surreptitiously landed their cargoes of manufactures and took
their pay in hides or in silver dollars that had escaped the Spanish
soldiers on the road down from Potosi.
Rio and Santos, in Brazil, became intermediate warehouses for the
commerce of the Plate. The officials in Buenos Aires itself connived at
evasions, and the very governors made great fortunes in partnership with
smugglers. The guards along the interior routes shut their eyes when the
mule trains passed, and the goods of Flanders and France reached
Cordoba, Santiago, Potosi, and even Lima, by way of Buenos Aires, and
were sold at prices with which the Cadiz monopolists could not compete.
Silver came surreptitiously from Chile and Bolivia to pay for these
goods. The net result was that trade followed its natural and easiest
route, although there was a fearful waste of energy in the process. The
bribe-taking official, the idle soldier at the road station, the
smuggler handling his goods in small boats and risking his life at
night, and the numerous middle men absorbed what might have been
legitimate profit to the seller or to the consumer. Commerce was half
strangled, and with it the industries of the Spanish colonies. Civil
government itself suffered, for a community whose daily occupation it
was to break one law could not be expected to have much respect for
other laws, nor for the bribe-taking rulers and mulish legislators.
Public-domain text, read in full here on John Shaqi.
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