The Economic activities of New Spain Were characterized by being contingent to the requirements and needs of the Spanish peninsula.
A number of economic activities were carried out which allowed subsistence of those living in the area, but the emphasis was always on preventing a very obvious development, in order to avoid granting power and autonomy to the colonies, and thus maintaining them as working peoples dependent on Spain.
Old House of Contract in Seville, administration of the economic activities of the Indies
You may be interested Political Organization of New Spain: 7 Features .
Main economic activities during the New Spain
The main economic activities were mining, agriculture, livestock, trade and industry. The characteristics of each will be detailed below:
1- Mining
Mining was a Important economic activity Because, from it, other activities emerged that also played a major role in the development of the region's economy.
Moreover, at that time the quantity of precious metals was what determined how rich and powerful a person and a country were.
Between 1546 and 1548 large deposits of silver were discovered in New Spain, especially in the Zacatecas area, which would later become the third silver generator in Mexico and the fifth in the world.
Mining was a lucrative activity for several reasons. The labor was very cheap, for they were Indians, who were practically slaves, or independent workers who accepted extremely low payments.
In the mining industry there was what was called the"real fifth", which was a tax payable by the miners' guild to the Spanish crown (generally 20% of the product).
2- Agriculture
Agriculture became the main activity, because it was essential to generate the livelihood of the inhabitants of New Spain and livestock.
The development of mining also generated the growth of agriculture, because it was necessary to have crops near the mines to supply the newly created mining towns.
Agriculture was seen as an inferior activity, not worthy for Spaniards, mestizos or Creoles .
These were owned but did not directly participate in the process, but had black foremen who worked the land.
Among the products produced in New Spain include corn and beans, among others. The Spanish introduced several new species in the area, whose planting flourished, such as oats, wheat, rice, coffee, bananas, cocoa and different fruit trees, among other foods.
Livestock
Livestock was also made more necessary by the development of the mining industry, because it was necessary to have animal strength for transportation and other tasks.
Beef and pork also covered the food demand of the inhabitants of New Spain.
From Spain the horses were introduced, which served in principle as transport of the nobles and then, by reproducing quickly and lowering their price, in the middle of displacement for almost all the inhabitants of New Spain. Among others animals There were also pigs, sheep, goats, chickens and cows, and also mules and asses for the work of loading.
The difficulty of livestock production had to do with the little space available for its development. The ranchers ended up invading indigenous lands, which was detrimental to the crops of this native people.
There were some products that were banned in New Spain, because it was wanted to avoid generating a producer that competed with the products that were produced in Spain. For this, the cultivation of foods like the vine or the olive were restricted.
4- Trade
As for domestic trade, many traders regularly moved along the roads that reached the mining towns.
In these zones, local markets were also created, which encouraged the economic growth of the mining centers and also fostered domestic trade.
The marketing within New Spain had a monopoly through the Consulate of Merchants of Mexico City, an organization formed by the major wholesale merchants, who bought all the products that arrived from Spain and from the Eastern market.
As far as foreign trade was concerned, in 1503 the House of Contract of Seville was created, through which everything related to the commerce of Spain with its colonies was controlled.
This entity granted permits, supervised goods, collected high taxes and imposed strong regulations; This generated a commercial monopoly that gave rise to the emergence of piracy and contraband.
As part of the existing commercial monopoly, it was prohibited for New Spain to trade with other ports other than Cadiz and Seville, both located in Spain; And the ports of Panama, Cartagena de Indias and Veracruz, in America.
The only ones entitled to the marketing privilege were naturalized Spaniards and foreigners.
New products were exported to New Spain, with the intention of not promoting the manufacturing industry in the region and thus avoiding the possibility of commercial competition.
Among the products of the exchange between Spain and New Spain stand out gunpowder, paper, silk and mercury.
The idea was that New Spain would export raw materials to Spain, and then Spain would export the products already manufactured to Spain, which would hinder the development of industry in the Spanish colony.
5- Industry
Industrial development had many obstacles. Spain was not suited to the development of industry in its colonies, because this gave them power.
Then, there were many prohibitions like the manufacture of silk, of wines, of olive oil, among other items.
However, there were two industries that managed to develop: the so-called craft workshop and the textile industry.
In the craft workshops were produced various products, such as furniture, toys and shoes, among others. In these workshops were free men who had certain privileges.
On the other hand, the textile industry was developed in factories called obrajes, which offered really harsh working conditions.
Free men, blacks and Indians could work, and there fabrics, hats and blankets were made, among other products.
References
- Gale Encyclopedia of U.S. Economic History. "New Spain, Viceroyalty Of"(2000) in Encyclopedia. Retrieved on July 31, 2017 from Encyclopedia: encyclopedia.com.
- Domínguez, H. and Carrillo, R."Economic activities and social organization in New Spain"(January 2010) at Universidad Nacional Autónoma de México. Retrieved on July 31, 2017 from Universidad Nacional Autónoma de México: portalacademico.cch.unam.mx.
- "History of Mexico 1"at the National Autonomous University of Mexico. Retrieved on July 31, 2017 from Universidad Nacional Autónoma de México: portalacademico.cch.unam.mx.
- Hoyt, D."The Economy of New Spain: Mexico's Colonial Era"(1 November 1998) at Mexconnect. Recovered on July 31, 2017 from Mexconnect: mexconnect.com.
- Salvucci, R."The Economic History of Mexico"in Economic History Association. Retrieved on July 31, 2017 from the Economic History Association: eh.net.
- "Economy of New Spain"in Global Security. Retrieved on 31 July 2017 from Global Security: globalsecurity.org.