1. Colonial Economies and Governments

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

3. Silver
The major discoveries were made between 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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