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 began to raise the prices of commodities in Spain, far above the level current in other countries. This made Spain a bad seller and a profitable market. In spite of all the laws against export of treasure the merchants managed to exchange their wares of foreign manufacture for Spanish bullion, and to transport it beyond the border. The trade with the Spanish colonies stimulated competition. The legislation of 1552 encouraged import and discouraged export in the interests of the inhabitants of Spain. The industries that had flourished began once more to shrink; the influx of treasure, with the appearance of wealth which it brought to so many, discouraged exertion, always distasteful to the Spaniards, and by the end of the reign of Charles V the period of industrial activity was already in its decline. This was not due to the severity of taxation-having regard to the rise of prices the taxes of Spain probably became lighter during the period-but to the natural action of the circumstances upon the national temperament, aided by bad laws and a misconceived economic policy. But the worst results of these forces and methods fall outside our period.

The returns from the colonies enriched the government and individuals rather than the nation. The fifth share of the treasury in all treasure imported and other profits from colonial trade brought the revenue from this source in 1551 to 400, 000 and in 1556 to 700, 000 ducats. The whole treasure of the Indian fleet was seized for the first time in 1535 by way of loan; and the evil precedent was followed in later years, until forbidden by a law of Philip in 1567.

In the government of the Indies Charles took a lively interest, and his belief in their future was not to be shaken. His relations with his great adventurers were not always happy. Cortes ended his days in a maze of litigation. Fernando Pizarro was imprisoned in 1539 for a long period. Francisco was killed by the insurgents, against whom the home government gave him insufficient support. Gonzalo Pizarro was executed for rebellion in 1548. But the difficulties of controlling these autocratic soldiers at a distance of 4000 miles accounts for many misunderstandings; and the natural tendency to local despotism and virtual independence required constant supervision and suggested suspicion. In regard to the treatment of the natives and the question of the encomiendas Charles' policy was humane; though his measures were only in part successful. He leant a ready ear to the representations of Las Casas, and supported the missionaries against the colonists. On the whole his colonial policy achieved its objects; the natives were preserved from extermination or universal slavery; while the provinces of Mexico, Peru, Bolivia, Northern Chili, with Venezuela, New Granada, and Central America were in his reign reduced to order and tolerable government. The spice trade with the Moluccas he endeavoured at one time to secure for the Spaniards; but in 1529 he was content to leave the monopoly to the Portuguese in return for an ample money compensation.