goods there, that they found their way into all the Spanish provinces. This trade being carried on directly, threatened the destruction of the trade with Spain, and it was therefore prohibited.

By the treaty of Utrecht, Great Britain obtained a concession which secured to her a foothold for commercial purposes in the Spanish colonies in America. Philip V. transferred to Britain, with the consent of France, the privilege or contract which the latter had enjoyed, of supplying the Spanish colonies with negroes, and the more dangerous right of sending annually one ship of five hundred tons to the fair at Porto Bello. This led to the establishment of British factories at Carthagena, Panama, Vera Cruz, Buenos Ayres, and other places. The residence of the agents and merchants of a rival power in the most important towns, drew aside the veil which had hitherto concealed from the world the interior condition of the Spanish colonies, and excited a spirit of commercial cupidity, which led to an extensive contraband trade. This, at first, was carried on principally from Jamaica, and other British colonies. As might have been foreseen, the privilege granted to the British was at once abused, and greatly extended. Instead of a ship of five, one of nine hundred tons was sent to Porto Bello; and this was accompanied with several smaller vessels, which moored in some neighbouring creek, and clandestinely conveyed their cargoes to the principal ship. The inspectors of the fair, blinded by presents, remained ignorant of these frauds. From the intrinsic defects of the Spanish colonial system, and the weakness of granting the privileges spoken of to the most enterprising commercial nation in the world, the commerce carried on in the galleons, so long the pride of Spain, and even the envy of other nations, was almost annihilated before the middle of the eighteenth century.

Alarmed at the extent and pernicious consequences of the contraband trade, Spain stationed ships of war along the coast most exposed to this illicit traffic, to suppress it. These were called Guarda Costas; they checked the smuggling trade to a considerable degree, which led to complaints on the part of Great Britain, and finally to war, on the claim of some outrages committed by the Guarda Costas. Spain, however, obtained a release from the Assiento, or privilege granted to England, and was once more at liberty to manage her commerce with her colonies in her own way, without restraint. The contraband trade, however, continued; the Dutch and French engaged in it, as well as the English; and to such an extent was it carried, that sometimes when the galleons arrived the markets were glutted, and their cargoes could scarcely be disposed of. The galleons were prevented from sailing by wars, and often retarded by various accidents, and this occasioned a new regulation, by which commerce

with the colonies was carried on by register ships, fitted out during the intervals of the sailing of the fleets. The advantages of this commerce were so apparent, that in the year 1748 the galleons were no longer employed, and the trade with Peru and Chili was prosecuted in a direct route, round Cape Horn, in single ships. Still the register ships were all obliged to take their departure from Cadiz, and to return to that port.

The Dutch, from the vicinity of their settlement at Curracoa to Caraccas, having engrossed a considerable part of the cocoa trade of that province, Spain, in 1728, granted to a company of merchants an exclusive monopoly of the trade with Caraccas and Cumana; and both the parent state and the colonies derived great benefit from the commercial enterprise of this company.

From the want of more frequent intercourse between Spain and her colonies, it often happened that important events, which occurred in the latter, were known for some time by foreign nations before intelligence of them had reached Spain. To remedy this evil, in 1764 a system of packets was established, to be despatched on the first day of every month, to Havana; from whence letters were sent to Vera Cruz, Porto Bello, and so transmitted throughout the Spanish settlements. The packet-boats also sailed, once a month, to Buenos Ayres, to accommodate the settlements east of the Andes. Objects of commerce connected themselves with this arrangement; the packets were vessels of considerable burden, and carried out goods, and brought back a return cargo in the productions of the colonies.

The way being in some degree prepared, the following year, 1765, Charles III. abrogated the restrictions on the trade to Cuba, and other islands to the windward, leaving it open to all his subjects, with no other restrictions but that of their sailing to particular ports in each island. The beneficial effects, both to Old Spain and the colonies, resulting from a relaxation of the ancient laws, being sensibly felt, one relaxation proved the necessity of another, and in 1778 the monopoly was still further done away; and the colonial trade, which had been confined to Cadiz and Seville for two and a half centuries, was permitted to be carried on in fourteen other Spanish seaports, which produced a most important and favourable change, both to the colonies and the revenue of Spain.

The restrictions upon the internal intercourse and commerce of the Spanish colonies were, if possible, more grievous and pernicious in their consequences than those on the intercourse with Spain. From their first settlement all intercourse was prohibited, under the severest penalties, between the different provinces in the South Sea. Peru, Chili, New Spain, New Granada, and Guatemala, were cruelly inhibited from all commerce, and from VOL. I.

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all intercourse whatsoever with each other, which would so obviously have promoted their mutual comfort, prosperity, and advancement. At length, in 1774, Charles III. removed this severe and infamous restriction, and opened a free trade between these provinces.

In noticing the commerce of the Spanish colonies, that from Manilla requires our attention. Philip II. established a colony on the Philippine islands. The armament was fitted out from New Spain, and the station selected for a town was called Manilla, on the island of Luconia. This settlement soon engaged in active commercial intercourse with China, which occasioned a number of the Chinese to emigrate to the colony, for the purposes of commerce, and the prospects of gain. They not only supplied the colony with the manufactures of the East, but introduced such quantities as enabled it to open a trade with America. At first this trade, which was attended by the longest course of navigation of any in the world, was confined to Callao, on the coast of Peru, but subsequently it was transferred to Acapulco, on the western coast of New Spain. It finally acquired regularity and system, and became an important branch of the commerce of the Spanish colonies. It supplied them with the merchandise of China and the East Indies, in exchange for their precious metals, and the produce of America. A single galleon, of from twelve to fifteen hundred tons, sailed from Manilla about the first of July, with the southwest monsoon, and generally arrived at Acapulco in three months, with a cargo that often amounted to two millions of dollars, although by law it was limited to half a million. In February or March she returned, and, taking advantage of the trade winds, accomplished the voyage in fifty or sixty days. And, at a later period, a galleon has also been despatched from Manilla to Lima, a longer and more difficult voyage, as it must first discover the coast of Mexico, and then steer southward to Peru, a navigation extremely difficult and tedious. What is most remarkable, this commerce was suffered to be carried on, in direct contravention of the fundamental principle of the colonial system of Spain, which held the colonies entirely dependent on the mother country. It seems to have grown up gradually, until it became so important, and so great a part of the population became interested in it, that it could not be suppressed.

Spain received a considerable revenue from her colonies, notwithstanding the extensive contraband trade which, at some periods, even in time of peace, amounted to one-third of the whole commerce of the colonies, and other frauds practised on the revenue. The revenue consisted of three branches; the first, that which was paid to the king, as lord-paramount, or sovereign of the country; the second, what accrued to him as head of the

The

church; and the third, imposts, or duties on commerce. first comprised the customary, or share, received by the crown, of the product of the mines, called the right of seigniory, and the tribute paid by the Indians, called the duty of vassalage. As head of the church, and administrator of its funds, the king received various spiritual revenues, the first fruits, spoils, and the receipts from the sale of the bull of Crusado. This bull was promulged by the pope every second year, containing an absolution from past offences, and granting certain immunities, such as eating prohibited food during lent, and the like. The monks, employed in distributing these bulls, extolled their virtues with all that zeal and eloquence which interest usually inspires, and which was always found wonderfully efficacious. The ignorant were led to regard it as essential to their salvation at the rate set on it by government, and by such fraudulent means a universal tax was levied on the credulity and bigotry of a whole nation. The morals of the people were thus bartered away by the government, which ought to have been their guardian and protector, for a mess of pottage, a paltry tax. The duties on merchandise were numerous and oppressive, and clogged and embarrassed every commercial transaction, from the wholesale merchant to the petty retail vender. Great discrimination was made between the duties on the manufactures of Spain, and those on the productions of foreign countries. In the latter part of the eighteenth century the revenue raised by Spain in America was estimated at a million and a half sterling. This, however, was only the direct revenue, raised in the colonies, and did not include the duties levied in Old Spain, on all the exports to her colonies, and some other branches of revenue.

If the revenue was great, the expenses of the colonial government were equally so, and were wholly defrayed by the crown. The Spanish colonial system was not confined to civil government, but embraced commerce, religion, finance, and a military establishment; all of which were under the authority and management of the crown. It was also complex, in an extreme degree, in each department; consequently was encumbered with such a number and variety of offices, tribunals, and boards, as not only occasioned an enormous expense, but rendered it unwieldy, tardy in its movements, and almost unmanageable. Its weight was also increased by the external parade and pomp which it maintained. Every thing was on a large scale; the expenses of living were great, all salaries were high, and most of the officers of the government received, by perquisites, and in the various ways which human ingenuity could devise, several times as much as their salaries. The viceroys maintained horse and foot guards, a train of household attendants, and all the pomp and dig

nity of a regal establishment. They enjoyed a salary of thirty thousand dollars in the latter part of the eighteenth century; but this was a small part of their income;-by monopolizing certain branches of commerce, the disposal of all the lucrative offices, by presents, and by innumerable frauds and abuses of power, they usually, after continuing in office a few years, returned to Spain with a princely fortune. It is asserted that a viceroy, at one festival, the anniversary of his birth-day, received fifty thousand dollars in presents.

CHAPTER V.

Administration of Don Joseph Galvez-Buenos Ayres-fourth viceroyalty created-establishment of Intendancies-civil divisions of the country-Gen. Beresford and Sir Home Popham -attack on Buenos Ayres-view of the government-its differ ent offices-its corruption and oppression-conspiracy of Leonfrauds practised upon the Indians-Tupac Amaru heads an insurrection is defeated-civil commotion in New Granadafirst attempts to revolutionize the province-Miranda's expedition-loyalty of the Spanish creoles.

THE more enlarged views of policy, which led to the relaxation of the ancient laws, and the adoption of more equitable and just commercial regulations, called attention to the internal condition of the Spanish colonies, and occasioned various salutary reformations and improvements. The colonial system, founded on false and inequitable principles, defective and oppressive in itself, was rendered more insupportable from the abuses and corruption which every where had crept into the administration. Not only a correction of abuses, but a reformation of the system, was successfully attempted in the latter part of the eighteenth century, during the enlightened administration of Don Joseph Galvez. Having spent seven years in America, as inspectorgeneral of New Spain, and visited most of the remote provinces, he was elevated, on his return to Spain, to the head of the department for Indian, or, more properly, American affairs. He commenced his administration, which forms a memorable epoch