Page:Vol 4 History of Mexico by H H Bancroft.djvu/45

Rh government equal to the interest on the capital rep resented, while the purchasers were obliged to con tribute to the royal treasury by the payment of taxes.

Throughout New Spain the accumulation and investments of the funds of these institutions had become enormous. There was scarcely a land owner, great or small, whose estate was not hypothecated to one or another of the benevolent institutions. The loan once effected, restitution of the capital was not demanded as long as the interest was punctually paid; nor did the debtors ever prepare for such an event, although most of the mortgages had lapsed. The sudden demand for the payment of these sums carried consternation throughout the country, and brought ruin on many proprietors. For all to raise money on short notice was impossible; so the sale of the property had to be forced not alone what belonged directly to the church, but that of the farmer, the merchant, the miner, and the mechanic. Thereby all industries suffered, while in the end the crown was no gainer, since the ruin of property holders cut down the revenue.

The execution of the decree was intrusted to a junta presided over by the viceroy, and composed of the principal civil and ecclesiastic authorities, and of special commissioners appointed by the crown. In order to stimulate the zeal of these functionaries, and to make the sequestration more productive, they were allowed a percentage of the sales. Such an incentive with such men as Iturrigaray left little hope