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108 the provinces of the crown of Castille, the severest penalties were enabled to oblige the homeward-bound vessels to proceed directly to Seville. By this restriction the effect of the general permission was annulled.

The system of the galleons was chosen as the most secure for the supply of the above provinces, and, by the scale of prices drawn up by the commercial deputies of Spain and Peru, established the just value of the merchandizes and effects. The loss of Jamaica in the middle of the seventeenth century, augmented very considerably the contraband trade. The pillage of Panama, in 1670, by the Englishman, John Morgan, which rendered it necessary to with-hold the capitals, and to delay the remittances until notice should be sent of the arrival of the ships at Carthagena; together with the privilege granted to a company of English merchants in 1713, in conformity to a preliminary article of the treaty of Utrecht, to supply Peru with negroes for the space of thirty years, oppressed to such a degree, by the competition which was set up, these celebrated marts, that after the oneholden in 1737, it was impossible to continue the above system for a longer time. In its stead was substituted the commerce by Cape Horn, in detached ships, without any regulation either as to their number, or the time of their sailing, the permission to employ them in this trade being a special favour, subject, however, to an infinity of delays, and of perplexing formalities, established on the pretext of preventing smuggling, which, combined with the very high rate of tonnage, impeded the success of every enterprize. At length came the new regulation of a free trade. It was