Page:Vol 3 History of Mexico by H H Bancroft.djvu/649

Rh the decadence of manufacturing industries in Spain, owing to the immense influx into the Peninsula of the precious metals. The riches poured into the mother country made labor almost unnecessary; hence a general decline in all kinds of industry, and Spain had to resort to foreign markets, not only to supply home consumption but also the demands of her colonies. Merchandise thus procured could only be exported to the American settlements at rates increased by additional duties and merchants' profits. The moral effect of such a system upon the community is obvious. Contraband trade—and the consequent corruption of officials—was carried on in the Spanish colonies to a degree unequalled in any age or country, and organized troops of bandits in time infested the internal lines of traffic.

In order to ensure the carrying-out of the restrictions imposed upon transatlantic commerce the casa de contratacion was established at Seville, with supreme power in all commercial matters, subordinate only to the council of Indies. Commercial courts called consulados were also established in the colonies, the duties of which were to decide all questions and disputes relating to mercantile affairs, to supervise and administer in all matters affecting trade, such as the repair of ports and highways, and promote and protect commerce.