1. The Spanish Colonial System • 1493—Pope Alexander VI set the line of demarcation to benefit Spain • Treaty of Tordesillas (1494)—divided the world in half between Spain and Portugal • Portugal negotiated new line to claim Brazil • Spain primary presence in Americas

2. The Treaty of Tordesillas, 1494 & The Pope’s Line of Demarcation

3. The Spanish Colonial System

4. Administering the Colonies • The monarch and government was based in Madrid • Administrators for the Council of the Indies in Seville acted in the interest of Spain, not the Spanish-Americans they governed

5. During the 16th and 17th centuries, Spain’s New world was divided into two viceroyalties: New Spain (Mexico) and Peru • By 1780 in order to establish a more direct control of their colonies, Spain introduced more royal officials and viceroyalties.

6. Viceroyalties • Royal governors (viceroys) were advised chief executives and carried out the laws issued by the Council of the Indies • Viceroyalties were divided into audiencias (judicial councils) and corregidores (municipal courts) • Most of the officials of Spain’s New World empire were persons born in Spain (peninsulares) • All power flowed from Spain • Local initiative or self-government scarcely existed

7. All power flowed from the top of the crown to the bottom

8. Trade Regulation • Only one port authorized for use in American trade--Cadiz • Casa de Contración (House of Trade) regulated all trade with New World from Seville, Spain • functioned to serve Spanish commercial interests (precious-metal mines) • Flota system tried to ensure Spanish economic supremacy • Once a year Spanish fleet, protected by Spanish navy, would transport merchandise to ports in America • Once goods were unloaded, ships were loaded with gold and silver then sailed back to Spain

9. Treasuresfrom the Americas!

10. Problems with flota system • System worked imperfectly • Spanish colonies within the American Empire could not trade directly with each other OR not allowed to build their own shipping • Foreign merchants could not breach Spanish monopoly • Spanish colonists did not always receive the best price from Spainsmuggling and illegal trade was common • Increased gold and silver flowing into Europe from Spanish colonies resulted in a price revolution known as inflation

11. Colonial Reform under the Spanish Bourbon Monarchs • Crown of Spain switches from the Spanish Habsburgs with Bourbons of France • Philip V (r. 1700–1714) and successors tried to revive decaying trade monopoly and suppress smuggling • Tried to implement French administrative skills to reassert the imperial trade monopoly that Spain once possessed • Created new viceroyalty of New Granada to strengthen royal government

12. Charles III (r. 1759–1788): most important imperial reformer • Favored hand-picked royal representatives (intendants) over local councils to enforce tax collection and end bureaucratic corruption • improved imperial economy by allowing more Spanish cities to trade with America • Ended the monopoly of trade held by Seville and Cadiz • Opened more ports in South America and Caribbean • 1776, organized a fourth viceroyalty of Rio de la Plata

13. The Colonial Class System Peninsulares Creoles Mestizos Mulattos Native Indians Black Slaves

14. Class System • Peninsulares—persons born in Spain and enter the New World and fill government positions • Creoles—persons of European descent born in the New World; second-class subjects • Mestizos—persons of mixed European and native Indian birth • Mulattos—persons of mixed European and African birth • Native Indians—indigenous peoples of land • Black Slaves—Africans transported by ocean