Note: this is a very old article, but I have two motivations for including it in this class. First, it's a window on a very different part of the colonial experience, and some of you may enjoy a class discussion about this. Second, it gives us a chance to meditate on history as a field. I sometimes read these older books to observe how different themes and approaches to history cycle in and out of fashion. Comments?
Questions:
1) Look at the World Map in your RP and trace a shipping route for something traded between Cuba and Mexico in the first half of the Spanish colonial period. (Draw a rough picture and comment). (section 1)
2) What sort of power did the Casa de Contratación have? (section 1)
3) Why was Spanish commercial policy with the colonies like a mother saying to her famished child, "Take no other milk but mine," when she has no milk to give?
4) Describe the convoy system that was in place between 1561-1748. Why was it established and how much trade took place during the period in which it was in force? (See section 2, but also relevant information in other parts of this reading).
5) At the top of section three, a Chilean historian blames Spanish commercial policy for Chile's problems? What is the argument behind this blame? Do you agree?
6) Look at the short list of prices for goods in colonial Chile included in section 3. Does the list suggest anything about the type of goods imported into Chile?
7) What route did Spanish trade goods take to reach Argentina? (section 3)
8) Crow blames both the Spanish and the pirates (English, French, and Dutch) for Spain's inability to reach its full potential. What error or "sin" does each side commit?
9) In section 7 (concluding section), find the figures for Spanish ship losses in the travel between Spain and the New World.
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VOCABULARY:
Armada = The famous Spanish navy which sailed against England in 1588. Its superiority came partly from the recent inclusion of Portugal (and its navy) into the Spanish kingdom.
Cromwell = Oliver Cromwell, a British military/ political leader... If you had been a college student in the 1940s, no explanation would be necessary!
Phillip II = King of Spain 1556-98. (Became King of Portugal also in 1588.)
Patagonia and
Rio Plate - refer to geography in southern South America - Rio Plate is the river in Argentina (Buenos Aires founded here). Patagonia is the southern tip of the continent (Chile and Argentine territory - indigenous tribes still live here also). See Map (Dec. 22 post)
Please post a comment below if there are other vocabulary words/references in the article that should be in this section!
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section 1
Crow, John A. "Trade Monopoly and Pirates" in
The Epic of Latin America. 3rd ed., expanded and updated. (Berkley: University of California Press, 1980). p. 176-90. (First edition was published in 1946).
The underlying idea back of Spanish regulations controlling trade with the colonies was to insure the greatest possible profits for the home country. Spain was like a prospector for gold who suddenly strikes it rich and then makes every effort to keep others away from his stake. In order to safeguard her colonial "gold mine" she established a commercial monopoly: only Spaniards could trade with the colonies, goods must be carried in a convoy. The colonies were not only prohibited from trading with other European nations but were not allowed to trade among themselves. For many years goods sent from one colony to another had to go first to Spain and were transshipped from there.
On the surface it sounded like an airtight system. Every ounce of colonial gold and silver would reach Spain, and Spain, in turn, would furnish all the imports which the colonies needed. England, Holland, and France had all established similar monopolies. The main difference was that while these countries had strong productive industries which could supply the wants of their colonists at reasonable prices, Spain had a rapidly weakening industrial system, a declining navy, and a disintegrating merchant marine. Her commercial policy, therefore, was like a mother saying to her famished child: "Take no other milk but mine." when she had no milk to give. (22) Nevertheless, many millions of dollars in trade passed across the ocean before this truth became evident.
From its center at Seville the Spanish
Casa de Contratacion, of House of Trade, established in 1503, directed all this colonial commerce. It not only served as a clearinghouse through which all trade was channeled, but it had virtually dictatorial powers over all cargoes, customs, posts, permits, papers, and personnel having to do with ships sailing for or arriving from the New World. Each vessel carried an official scribe of notary whose duty it was to keep a complete record of everything that happened on the trip, and in each port the House of Trade had its official representatives to recheck the cargo and report on its disposal. It also had charge of emigration and of the exports of seeds, plants, and animals, and was a sort of general storehouse and market which provided these essentials of colonial life. It had the further responsibility of compiling and keeping a complete file on the economic geography of all sections of the New World. Every discoverer, conquistador, or explorer was obliged to send in a report on the terrain, climate, peoples, and products of the regions which came under his inspection. The House maintained its own bureau of navigation, and among its first chief pilots were Amerigo Vespucci and Sebastian Cabot. Every employee of the organization was under severe restrictions and was not permitted to engage in trade. . .
In 1524, when the House of Trade found itself swamped with more work than it could possible do, the Council of the Indies was established to direct the political, judicial, and military affairs of the colonies and to act as an advisory body in regard to all civil and ecclesiastical appointments. These dual bureaucracies functioned side by side throughout the colonial period. While
Philip II was King (1556-98) he tried to be a virtual one-man dictator of this council, and, living as he did among suffocating piles of papers,
el rey papelero, or “the king of paper-work,” nearly succeeded in his purpose.
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section 2 At first single ships or small groups of vessels were permitted to carry on colonial trade, but they were restricted to sailing from the ports of Seville or Cádiz (in Spain), and on their return all had to unload and pass inspection at Seville. When the wealth of incoming cargoes had increased to such an extent that those boats were attacked by corsairs or by Spain’s enemies, they were forced to travel in convoy. This system lasted from 1561 to 1748, and two such convoys were supposed to leave Spain every year. However, their departure was frequently delayed for many months until a sufficient number had assembled, or because warships to escort them were not at the time available, or because the country was at war. Even when none of these conditions prevailed, Spain finally became so destitute of both goods and ships that sailings were irregular. On the average a fleet of from forty to seventy vessels left Spain about once in every year and a half, but the average is misleading because sometimes many years passed without a single sailing.
Their route was as follows: on leaving Seville or Cádiz they all headed for the city of Santo Domingo (Havana later became the port of arrival...) There the fleet divided into two sections, one going to Vera Cruz, Mexico, the other to Cartagena in Colombia and thence to
Portobello, Panama. The first section was to take care of all the Mexican and most of the Central American trade, while the second was supposed to do the same for the entire South American continent. After many years of this, monopoly restrictions were relaxed, but the harm had already been done and contraband trade was widespread throughout the colonies.
When merchandise had passed through all these hands, plus a long and hazardous trip across the Atlantic, plus a dozen different kinds of taxes, it was no wonder that the charges were exorbitant. The merchants of the fleet, having no competition, agreed beforehand on prices which would give them a return of two or three hundred per cent or even more on their investment. It was the first large-scale application of the vicious trust or cartel system against which the unorganized purchaser is powerless. Only a still bigger cartel, which would at best remedy the situation temporarily, or direct government action, could launch a frontal attack against such an arrangement. Damaging blows could be dealt by contraband trade, however, and these blows eventually (after two hundred years) destroyed the monopoly.
As early as 1624 the royal inspector placed in Panama reported that legally registered goods to the value of 1,446,346 pesos had passed through but that an estimated 7,597,559 pseos’ worth had been smuggled without paying any duty. Another authority estimated that for every 1000 tons of merchandise which entered Peru through legitimate trade channels, 7500 tons came in via contraband. perhaps the estimate is excessive, but beyond any doubt one half of all imports were smuggled in, and in some years the percentage of contraband goods was as height as eighty or ninety per cent. During most of the eighteenth century, after the backbone of the monopoly had been pretty well broken, an average of only forty ships a year came to America from Spain, but there were about three hundred ships from other nations.
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section 3 The fact that exorbitant prices were collected by the merchants of the fleet at
Portobello was not the half of it. This was only the beginning. These same merchants banded together to buy native products at costs which were ridiculously low. The same double-barreled punch which soon laid low the Iberian Peninsula also kept the colonies in a state of relative poverty for over two centuries. For example, says a historian of Chile, in that country prices looked like this:
a
fanega of wheat (1.6 bushels) cost two pesos
a cow cost two pesos
a package of paper cost over 100 pesos
a sword cost 300 pesos
a cloth cape cost 500 pesos
“Under such circumstances the colony was condemned to poverty” (Galdames, Luis.
A History of Chile).
It is easy to see that this practice would leave few people indeed in a position to purchase European products, and few individual workers in any frame of mind to exert themselves in the production of native goods. But the effect went farther than that. It meant that those few who, through their wealth, were able to buy would become more and more demanding of the Indians under them in order that they themselves might continue to live in some luxury. This constant driving and milking away of every possible cent of profit resulted in an exploited laboring class which was rarely able to achieve more than a bare subsistence. Built upon this tradition, Latin America is still a land of poverty and riches where the middle class, our own great bulwark of democracy, is only in its infancy.
Under the monopoly Chile, Argentina, and Uruguay, which were the greatest distance from
Portobello, had to pay considerably higher prices than Mexico or Peru, which were near the points of debarkation. The route to Argentina was as follows. On leaving
Portobello merchandise had to be carried by mule train overland to the Pacific side of the Isthmus of panama. here it was loaded into ships again and sent down to Callao, the port for Lima, separated from the inland Peruvian capital by only a few miles. From Callao it was reshipped to Argentina by mule train all the way over the Andes and across the continent, finally arriving at Buenos Aires or some other Argentine city.
An intermediate fair for Bolivian and Argentine merchants was held at Potosí, Bolivia, the great silver center which for many years was the most populous town in the entire Western Hemisphere, and here again further costs were tagged on. An Argentine historian says: “In Potosí, prices were four times as high as in Lima; while in Tucumán [northern Argentina] prices were twice as high as in Potosí.” This meant that the region of Argentina, Chile and Uruguay came to depend almost exclusively on contraband trade, a fact that affected their whole society to its very core.
The Spanish mercantile policy also restricted the free exchange of products among the colonies themselves, and, in order to safeguard further the monopoly of the mother country, it was prohibited to produce goods in the New World which might compete with the península. For example, grapes were not to be grown n the colonies and wine was not to be made there. However, as these restrictions were nonsensical and impossible to enforce they were gradually either lifted or disregarded until they became dead letters.
Fleets, trading companies, caravans, and monopolies were institutions which served well enough “for the beginnings of trade, and for the lower stages of civilization; but Spain tried to perpetuate them in her colonies.” While other countries outstripped her in navigation, shipbuilding, and in the art of commerce, she doggedly persisted in the old manner of life. It was partly due to the psychology of the race which loved tradition and hated change; it was also a sort of religious reflex because Spain knew that a free importation of goods would also mean free entrance for Protestant and heretical ideas. This artificial adherence to the lower stages of economics meant that while the tiny island of Mauritius enjoyed a trade of 36,266 tons with England in a single year, the Spanish fleet, at its very height never carried more than 27,500 tons, which represented the total legal trade of all Spanish America. It would not be fair to dismiss the subject at this point, however, without showing that the other maritime nations of Europe practically forced Spain to follow the tightrope path of monopoly and isolation.
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section 4 The insignificant West Indies islands of Tortuga, San Cristóbal, and the larger ones of Jamaica and Santo Domingo were, at one time, alive with nests of corsairs or buccaneers from England, France, and Holland who lay in wait at these central vantage points to pounce on the rich gold and silver fleets of Spain and Portugal. For nearly two hundred years the corsairs made life miserable for the Spanish galleons. They were one of the primary causes for the peninsula’s poverty and decay after 1588, when British sea dogs swept the Invincible Armada from the coasts of England and delivered the deathblow to Spanish supremacy of the seas.
Francis Drake, born in 1540, led the way. He was a sort of pioneer or precursor, and was one of the principal reasons why
Philip II finally assembled the
Armada. In the 1560s Drake and his kinsman, John Hawkins, engaged in the slave trade with the West Indies. The Spaniards were angered at these intrusions on their colonies and attacked the English ships so vigorously that all were sunk except Drake’s own vessel and one other. After taking a lesson in caution the hard way the Englishman came back with a vengeance. In 1569-70 he slipped into the Indies, spied on their ship movements and the size and location of their forts and garrisons, and in 1572, with only two vessels and seventy-four men, he headed for Panama. There he attacked and looted the trade center Nombre de Dios, port of arrival for Spanish ships in panama before it was displaced by
Portobello, in 1584. After this successful venture he captured a ship in the harbor of Cartagena, then fell on
Portobello, sacked it thoroughly, crossed the Isthmus, and seized three mule trains bearing thirty tons of silver. After his return to England with this loot Drake became a national hero and was made an admiral.
Soon afterward Queen Elizabeth secretly gave him permission to raid the Spanish colonies on the Pacific, but this was denied officially, for England and Spain were not then at war. Drake left England in 1577, with a Portuguese pilot, and was the first foreigner to sail through the Strait of Magellan. He had started out with five ships, but by this time four of them had already been lost, two in the
River Plate, one in the stormy
Patagonian seas, and the fourth, not being able to find the commander after the storm, had returned to England.
Drake continued up the west coast of South America in his flagship, the Golden Hind. His first stop was at the Chilean port of Valparaiso, then only a small village, which he attacked and plundered. He captured a ship which was standing in the harbor ready to sail for Peru and took its cargo of gold, hides, and tallow, then he thoroughly ransacked all the warehouses and put out to sea again. At Callao he made another attack, cut all the ships loose from their moorings, but did not feel strong enough to take a chance against the Spanish forces which he knew would be dispatched immediately from Lima.
From Peru he sailed northwest and, in his search for the northeastern passage back to England, went all the way up the west coast of the United States... In 1580 he reached England safely; the whole country went wild with celebration, and Queen Elizabeth, finding her official friendship for Spain unsuccessful anyway, came aboard the Golden Hine in person, knighted Drake, and received a treasure worth more than five million dollars.
Five years later, with a much larger fleet of nineteen vessels, the Englishman attacked Spain directly, plundered the port of Vigo and the town of Santo Domingo and Cartagena and forced the Spaniards to pay a huge ransom for the deliverance of the latter city. Spain began to prepare her revenge on a grand scale, and, getting wind of it, Drake decided not to await the attack which was certain to come.
He entered the harbor of Cádiz (Spain) with thirty English ships and destroyed the entire fleet which the Spaniards were assembling. This was in 1587, and in the following year, when
Philip did send his huge
Armada against England, Drake served as vice-admiral of the English fleet which, with considerable help from the stormy weather, dispersed the one hundred and thirty vessels which were the pride of the Spanish navy, and ended for all time Spanish dominion of the seas. Only about half of the ships of the Armada ever got back to the peninsula. The year after this Drake invaded Portugal and tried to capture Lisbon, but was forced to retire.
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section 5 Drake, who died of dysentery off
Portobello, was only the first of a long line of sea hawks called at various times corsairs, buccaneers, pirates, freebooters, or filibusters, and to the Spanish generally known as “those heretical dogs.” Drake did not stand alone among the corsairs of the sixteenth century; he was only the best known and a sort of justification for all the others. The French had begun their forays against the Spanish at about the same time, and several of their freebooters had looted settlements in the Hispanic New World, frequently putting all their prisoners to death. In 1625 a Frenchman and an Englishman colonized the little island of San Cristóbal near Santo Domingo. Several Frenchmen passed over to the larger island, and here they hunted down the wild cattle which had escaped from the Spaniards settled on the opposite extremity.
These men made a living by selling the hides of the animals they killed to Dutch smugglers, and they depended mostly on the beef for their subsistence. These buccaneers and others of the same breed established a firm hold on the western side of Santo Domingo and were able to challenge Spanish supremacy in the Indies. The present-day country of Haiti... is the final result.
Perhaps the bloodiest pirate of all was the Fenchman known as L’Ollonais, or L’Olonnoois, because of his birth in Sables d’Olonne. His real name was Jacques Jean David Nau. Beginning his activities as a buccaneer in 1650, this nefarious Frenchman coursed along Spanish American shores for over twenty years, tracing his path in fire and blood until his death at the hands of the Indians of Panama in 1671. . .
The Dutch were not far behind. In the early 1600s they made life miserable for the Spanish and Portuguese trade fleets, and in 1624 they established themselves firmly in Brazil, capturing and occupying the cities of Bahia, Pernambuco, Olinda, and making a desperate attempt to colonize the entire northern Brazilian coast. They were finally driven out in 1654. The English preserved a certain secrecy about their piratical expeditions and, unless a state of open warfare existed, officially washed their hands of them. The Dutch, whose independence (from Spain) had never been recognized, had no such reasons for concealment, and their rich merchants and commercial companies openly made their plans for looting and colonization. As Portugal was under Spanish rule from 1588 to 1640, and as the Portuguese colonies were not well defended at the time, these Dutchmen first fell on the Portuguese possessions in the Orient and, meeting with considerable success, then decided to attack Brazil. They also came to the United States, where their colony of New Amsterdam was founded under the noses of the English in 1614.
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section 6 The English, for their part, went about singeing the beard of the Spanish King with organized persistence after the year 1655. In that year Jamaica fell into their hands, giving them a base from which to operate. Their original plans had been more ambitious still. Oliver Cromwell sent a flotilla of sixty vessels and ten thousand men into the Antilles under the command of Admiral Penn (the father of the colonizer of Pennsylvania). it was the purpose of these forces to take over a large portion of the Spanish colonial empire. They attacked Santo Domingo but were decisively beaten off, then they proceeded on to Jamaica, which they occupied –that is, they occupied the shore line, for many Spaniards escaped into the interior. In order to get rid of them the newly arrived English offered the native buccaneers a set reward for the head of any Spaniard brought in to them, and in this fashion Jamaica soon came entirely under their control.
Only four years previously (1651)
Cromwell had passed the famous Navigation Act, making the use of English ships a requirement for all British trade. This kept the British merchant marine built up to capacity at all times, and, now that it had a new center from which to operate, the attacks upon Spanish shipping became more frequent and deadly.
... After Henry Morgan had ransacked the Caribbean shores and obliterated Panama it would seem that few wealthy Spanish coastal cities could have remained. But there was still one great prize which had never been touched, and in 1683 a group of combined filibusters, mostly French and Dutch, delivered a devastating attack against it. This was the rich Mexican port of Vera Cruz. After occupying the town and locking the massed inhabitants up in the churches, where many suffocated or were trampled to death, they began to pile up their booty in the central plaza. There were twenty-five thousand pounds of wrought silver, enough silver coin to give each of the common soldiers six hundred pesos and the leaders many times that amount, worth many thousands of dollars, fifteen hundred slaves, and many other items. When the fleet sailed Vera Cruz was picked clean as a bone. Fourteen years later, in 1697, another group of filibusters captured the city of Cartagena, pride of Colombia, and escaped with ten million pesos, eighty pieces of artillery, and countless other articles of value.
Those pirates of the Spanish Main, of course, did not always come out on top. In 1741 the English Admiral Vernon attacked Cartagena with fifty-one men-of-war and over twenty eight thousand men, but the city was in a state of complete readiness this time behind its thick walls. Vernon, with vastly superior man-power, was so certain of success that he had already had medals stuck in his honor on which appeared the figure of the Spanish governor in a kneeling position delivering his sword into the admiral’s hands. The legend read:
The Spanish Pride Pulled Down by Admiral Vernon. ... Vernon had stated as his reason for making the attack “the necessity of Great Britain undertaking the emancipation of the Spanish establishments in America, in order to open their markets to the merchants of London.” ...
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section 7 As a rule, however, the hit-and-run tactics observed by the corsairs gave them the advantage, and especially so since they took great pains to swoop down on centers not expecting an attack or which were poorly defended. There was not a coastal fortress of city in the Spanish or Portuguese colonies which did not at one time or another feel the weight of their destructive blows. The lure of rich gold and silver sleets was one which never ended, and many an insignificant island off the Latin American coasts is stills aid to conceal millions of dollars’ worth of buried treasure. Although these corsairs alone did not break the back of Spain or Portugal, they were one of the strongest forces holding back the development of their colonies.
Exactly how much booty the pirates carried away can only be guessed. However, in the reign of Charles V a total of 2421 vessels left Spain for the New World and only 1748 returned. The difference of 673 was either taken by the corsairs or lost in storms. Then, even after the convoy system was established (1561), the Dutch alone captured around 550 Spanish ships within a period of only thirteen years (1623-36). What the European wars had left undone, these pirates accomplished thoroughly, that is, the utter destruction of Spanish sea power...