Spanish Colonial Administration and Economy in America

Spanish Colonial Institutions

Central Administration in Spain

The Council of the Indies consisted of scholars, religious figures, and individuals knowledgeable about the affairs of the colonies. It created royal decrees, served as the high court, and appointed officials.

The House of Trade controlled trade traffic between America and Spain, granted permission to travel to America, and managed the commercial monopoly.

Government Agencies in Latin America

The Viceroyalties were representations of the king in America. Four came into existence: New Spain, New Granada, Peru, and the Rio de la Plata.

The Governments were territories pacified under the command of the President of the Royal Court.

The Captain-General governed territories not yet pacified, led by a military commander (for example, Chile). The Hearings (Audiencias) served as the court of justice in the colony.

The Councils (Cabildos) were bodies representing the people, consisting of 2 mayors and 6 aldermen.

Labor and the Encomienda System

The Commandery (Encomienda) was a group of Indians delivered by the governor to an encomendero to work in exchange for care and instruction in the Christian faith.

• The Rates (Tasas) were laws that regulated indigenous labor and sought to avoid the abuse of the colonists.

Colonial Economic Activities

• Livestock: From the 17th century, it produced leather, tallow, dried meat, and fat for domestic consumption and export to Peru.
• Agriculture: Wheat became the main export product starting in the 18th century.
• Mining: Gold and silver were under development. Copper, used to make cannons and bells, was exported to Spain and Peru.
• Industry: While undeveloped, craft workshops for blacksmithing, woodworking, pottery, tanneries, and textile mills existed. Finance included ceramics, farm products, and fabrics.
• Trade: Limited by the colonial monopoly.

The War of Arauco and Border Relations

• The great concern of the rulers was to incorporate the territories south of the Bio-Bio, a task not successfully achieved.
• The War of Arauco developed during this time, with periods of high intensity and periods of peace where, for example, fighting occurred only between spring and summer.
• It initiated the process of forced Mestizaje due to border relations, marked by exchanges of all kinds between the Spanish and Mapuche.

Actions Taken During the War of Arauco

• Creation of the Real Situado: Money provided by the Crown to pay troops and supplies.
• Creation of a standing army: Replaced neighbor militias with professional soldiers.
• Emergence of parliaments: Meetings between the Spanish and Mapuche to dialogue and establish peace for a period of time.