Spanish Colonial System: Governance, Economy, and Conflict in America

The Arauco War: Dynamics and Impact

War Strategies and Outcomes

The dynamics of the Arauco War involved several phases:

• Permanent Border Offensive (17th Century): Under Governor Alonso de Ribera, the Spanish maintained a defensive line along the Biobío River, supported by numerous forts.
• Defensive War: Incursions beyond the Biobío were suspended. Priests were sent behind the line to spread the Gospel.

Exploitation and Indigenous Resistance

A significant aspect was the War for Profit, which involved the capture of indigenous people for forced labor, leading to economic gain. This system often included abuses and mistreatment of indigenous populations, which fueled their anger and desire for revenge, escalating conflicts.

Spanish Colonial Governance: Metropolitan and American Authorities

Metropolitan (Peninsular) Authorities

• The Council of the Indies

  This body advised the King on American affairs. Its functions included designating authorities for America in political, judicial, military, and ecclesiastical matters through royal patronage. It served as the highest court of justice for America and evaluated the performance of officials in the American territories. It could also issue Royal Charters.

• The Casa de Contratación (House of Trade)

  Responsible for the commercial monopoly, this body was subordinate to the Council of the Indies. It controlled overseas navigation, regulating commercial fleets and galleons.

American Authorities

• The Viceroy

  The direct representative of the King in the colonies.

• The Governor

  The maximum authority of a governorship, presiding over the Royal Audiencia (if present) and implementing royal decrees.

• The Corregidor

  Appointed by the Governor, fulfilling civil and judicial functions.

• The Intendancies

  Established in 1786 as part of the Bourbon Reforms, these aimed for greater administrative control and autonomy. Their functions included administrative, military, and judicial oversight. Notable intendancies were in Santiago and Concepción.

• The Real Audiencia (Royal Audience)

  Oversaw compliance with laws for the protection of indigenous people and safeguarded royal interests.

• Royal Officials

  Responsible for collecting taxes for the King. They did not depend on the Governor.

Colonial Economic System and Taxation

Key Economic Doctrines

• Mercantilism

  An economic doctrine that promotes trade, manufacturing, and the accumulation of precious metals. Countries adhering to this doctrine typically imposed commercial monopolies.

• The Fleet System

  Commercial fleets, protected by warships, were released once annually to conduct trade.

Principal Colonial Taxes and Revenues

• Royal Fifth (Quinto Real)

  20% of the proceeds from gold mines or placers.

• Alcabala (Sales Tax)

  A sales tax applied to the value of transferred real or personal property.

• Almorifazgo (Customs Duty)

  A customs duty on imported or exported merchandise.

• Tithe (Diezmo)

  The tenth part of agricultural and livestock production paid to the Church for its sustenance.

• Anata and Media Anata

  Taxes on the salaries of public officials.

• Derramas (Forced Contributions)

  Special and forced taxes levied in very specific cases, often for high-profile public needs.

• Tobacco Monopoly (Estanco del Tabaco)

  A government monopoly on the sale of certain products, such as tobacco.

Trade, Society, and Smuggling in Colonial Chile

Land Grants and Trade Monopoly

Land grants (mercedes de tierras) were given or purchased as securities by third parties. The Spanish maintained a trade monopoly, which led to the presence of pioneers, pirates, and colonial privateers.

Social Structure and Illicit Trade

Colonial society was stratified by class. Smuggling between Chile and France: Spain used French ships to communicate with America. These ships carried cheap merchandise, leading to intense smuggling. By the second decade of the 18th century, the Chilean market became saturated, and the amount of circulating currency in Chile decreased.

The Bourbon Reforms and Their Impact

Administrative Changes

• Creation of Intendancies.

Economic Reforms

• Transfer of the Casa de Contratación from Seville to Cádiz.

Other Significant Changes

• Expulsion of the Jesuits.
• Creation of local currency.

Cultural and Educational Developments

• Foundation of the Royal University of San Felipe (1747).
• Establishment of the Royal Academy of San Luis (1797).