Colonial Economies and Governments

Introduction Spanish America was 80% agrarian But if you ask Spain, it would say it was mining Silver came before gold in Spanish America

Silver The major discoveries were made between 1545-1565 in Mexico and Peru Potosi – in upper Peru – now Bolivia, was the largest of all Silver was “the blood and sweat of Indians” Most mining techniques were European in origin

The Spanish found Huancavelica in Peru – a mountain of mercury All the soil of the Americas belonged to Spain, but the manufacturing of the silver belonged to individuals who gave 1/5 to the crown

New Ways of Living Wherever sedentary populations lived, traditional farming and crops were used Populations of natives dwindled, and the colonists began looking to own their own land Families owned rural estates called Haciendas They became the basis of wealth and power for the local aristocracy in many regions

Industry and Commerce In Ecuador, New Spain, and Peru – sheep raising led to small textile sweatshops America became self-sufficient… only looking to Europe for luxury goods Spain allowed only the Spanish to trade with America They created a consulado – guilds that controlled the imports

The Spanish also set up convoys to prevent theft and piracy They used galleons – only one was taken – by the Dutch in 1627 Much of the wealth that went to Spain did not stay there, it was sent elsewhere to pay war debts etc. The seemingly endless supply of silver kept people lending to Spain, all the while Spain was going bankrupt

Ruling in the Americas Spain controlled its American Empire through a carefully regulated bureaucratic system Treaty of Tordesillas – Divided American Territory by Hemisphere – Spain West, Portuguese East Replaced the contradictory law code into a new one – Recopilacion – 1681

The king ruled through the Council of the Indies Spain had 2 viceroyalites in the 16th century – one in Mexico City and one in Lima The clergy formed another branch of govt. They carried out wide conversions, built schools, published and distributed books, stimulated art through the construction of church buildings