coffers of 
Spain. The mines were not operated by the crown, but by individual 
enterprise, the crown receiving a share of the proceeds, and alloting a 
certain number of Indians to the mine-owners as laborers. These 
Indians did all the work of the mine without the aid of machinery, and 
with very little assistance from horse-power. Their industry enriched 
Spain and her colonies to a degree unexampled in the previous 
experience of mankind. 
* * * 
Silver and gold, however, did not bring lasting prosperity. Already in 
the early part of the seventeenth century Spain showed signs of decay. 
Her manufactures and commerce began to decline; men could not be 
recruited to keep up her fleets and armies, and even agriculture felt the 
blight of national degeneracy. The great emigration to the colonies 
drained off the energetic element of the population and the immense 
riches which the colonies showered upon Spain intoxicated the people 
and led them to desert the accustomed paths of industry. 
Nineteen-twentieths of the commodities exported to the Spanish 
colonies were foreign fabrics, paid for by the products of the mines, so 
that the gold and silver no sooner entered Spain than they passed away
into the hands of foreigners, and the country was left without sufficient 
of the precious metals for a circulating medium. 
Although wholly unable to supply the wants of her colonies Spain did 
not relax in the smallest degree the rigor of her colonial system, the 
controlling principle of which was that the whole commerce of the 
colonies should be a monopoly in the hands of the crown. The 
regulation of this commerce was entrusted to the Board of Trade, 
established at Seville. 
This board granted a license to any vessel bound to America, and 
inspected its cargo. The entire commerce with the colonies centred in 
Seville, and continued there until 1720. It was carried on in a uniform 
manner for more than two centuries. A fleet with a strong convoy sailed 
annually for America. The fleet consisted of two divisions, one 
destined for Carthagena and Porto Bello, the other for Vera Cruz. At 
those points all the trade and treasure of Spanish America from 
California to the Straits of Magellan, was concentrated, the products of 
Peru and Chili being conveyed annually by sea to Panama, and from 
thence across the isthmus to Porto Bello, part of the way on mules, and 
part of the way down the Chagres river. The storehouses of Porto Bello, 
now a decayed and miserable town, retaining no shadow of former 
greatness, were filled with merchandise, and its streets thronged with 
opulent merchants drawn from distant provinces. Upon the arrival of 
the fleet a fair was opened, continuing for forty days, during which the 
most extensive commercial transactions took place, and the rich 
cargoes of the galleons were all marketed, and the specie and staples of 
the colonies received in payment to be conveyed to Spain. The same 
exchange occurred at Vera Cruz, and both squadrons having taken in 
their return cargoes, rendezvoused at Havana, and sailed from thence to 
Europe. Such was the stinted, fettered and restricted commerce which 
subsisted between Spain and her possessions in America for more than 
two centuries and a half, and such were the swaddling clothes which 
bound the youthful limbs of the Spanish colonies, retarding their 
growth and keeping them in a condition of abject dependence. The 
effect was most injurious to Spain as well as to the colonies. The naval 
superiority of the English and Dutch enabled them in time of war to cut
off intercourse between Spain and America, and thereby deprive 
Spanish-Americans of the necessaries as well as the luxuries for which 
they depended upon Spain, and an extensive smuggling trade grew up 
which no efforts on the part of the authorities could repress. Monopoly 
was starved out through the very rigor exerted to make it exclusive, and 
the markets were so glutted with contraband goods that the galleons 
could scarcely dispose of their cargoes. 
The restrictions upon the domestic intercourse and commerce of the 
Spanish colonies were, if possible, more grievous and pernicious in 
their consequences than those upon traffic with Europe. Inter-colonial 
commerce was prohibited under the severest penalties, the crown 
insisting that all trade should be carried on through Spain and made 
tributary to the oppressive duties exacted by the government. While 
Spain received a considerable revenue from her colonies, 
notwithstanding the contraband trade, the expenses of the system were 
very great, and absorbed much of the revenue. Corruption was 
widespread, and colonial officers looked upon their positions chiefly 
with a view to their own enrichment. They had no patriotic interest in 
the welfare of the colonies, and conducted themselves like a garrison 
quartered upon the inhabitants. Although salaries were high the 
expenses of living were great,    
    
		
	
	
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