no ships whatever, coasters or ocean carriers, could enter and unload at Buenos Aires. Her imports from Spain must first go to the Isthmus, be disembarked, and then transported across the mule-paths to the Pacific. Thence the goods had to go in coasters to Callao, in Peru, where they were again disembarked, transported up the Andean passes along the Bolivian plateau, and finally down into the Argentine plain. Under such conditions in the southern provinces European manufactures could only be sold at fabulous prices.
On the other hand, such a system made exports impossible, except those of precious metals and valuable drugs. Hides, hair, wool, agricultural products, would not stand the cost of such long transport by land and sea. The Spanish authorities seem deliberately to have come to the conclusion that America should be confined to producing gold and silver, and they ruthlessly strangled all other industries. The Plate settlements especially suffered from the ruinous consequences of this system. Having no mines of precious metals, they were considered worthless; their interests were ignored, and their complaints given no attention. The mere existence of Buenos Aires was a source of anxiety to the monopolists and to the Spanish government. They feared that the English or Dutch might take possession of the mouth of the Plate and thence send expeditions to intercept gold and silver shipments along the overland routes. More immediate and real was the danger of the establishment of a contraband trade which would deprive the Cadiz merchants of their enormous profits on goods sent by the Isthmian route.
The home government enacted laws of incredible severity in trying to enforce this policy. In 1599 the governor of Buenos Aires was instructed to forbid all importation and exportation under penalty of death and forfeiture of property. The shipping of hides and horsehair to Spain would seem to be harmless enough, but the Spanish government dreaded that gold and silver might be smuggled out in the packages. The government would lose its royal fifth and the precious metals might be sent to Spain's rivals and enemies in Europe. According to the economic ideas then accepted, gold and silver alone constituted wealth, and every ounce mined in America which did not reach Spain's coffers was considered irretrievably lost. To prevent clandestine shipments of the precious metals all commercial intercourse from the coast to the interior was made illegal, and no goods whatever were permitted to pass along the road between Buenos Aires and Cordoba.
In the very nature of things such laws were unenforcible. Even the governors sent out for the special purpose of repressing evasions recommended modifications. But the Cadiz monopolists were stubborn and their influence with the Court was all-powerful. The laws remained on the statute books only to be constantly disregarded. No human power could keep people who lived on the seashore, and who had hides, wool, and horsehair to sell, from exchanging them for clothing and tools. Perforce Buenos Aires became a community of smugglers. English and Dutch ships surreptitiously landed their cargoes of manufactures and took their pay in hides or in silver dollars that had escaped the Spanish soldiers on the road down from Potosí.
Rio and Santos, in Brazil, became intermediate warehouses for the commerce of the Plate. The officials in Buenos Aires itself connived at evasions, and the very governors made great fortunes in partnership with smugglers. The guards along the interior routes shut their eyes when the mule trains passed, and the goods of Flanders and France reached Cordoba, Santiago, Potosí, and even Lima, by way of Buenos Aires, and were sold at prices with which the Cadiz monopolists could not compete. Silver came surreptitiously from Chile and Bolivia to pay for these goods. The net result was that trade followed its natural and easiest route, although there was a fearful waste of energy in the process. The bribe-taking official, the idle soldier at the road station, the smuggler handling his goods in small boats and risking his life at night, and the numerous middle men absorbed what might have been legitimate profit to the seller or to the consumer. Commerce was half strangled, and with it the industries of the Spanish colonies. Civil government itself suffered, for a community whose daily occupation it was to break one law could not be expected to have much respect for other laws, nor for the bribe-taking rulers and mulish legislators.
Nevertheless, against these outrageously unreasonable regulations the colonists for centuries made no armed protest. They never questioned the abstract right of the Crown to forbid them to sell what the labour of their hands had produced. They evaded but did not contest. Centuries of this sort of thing ingrained into South Americans the belief that industrial and commercial activity exists only by sufferance of the government. The right to sell, to buy, to exercise a profession or a trade, depended on the permission of the government. The people saw the executives taxing industry at their pleasure, and suppressing its very beginnings, until such a procedure came to seem a matter of course. Commercial spirit was constantly hampered and business skill deprived of its rewards. The evil effects of such a policy can be seen at every step of the development of the Spanish-American countries. It is no wonder that office-holding became the most popular of avocations. The farmer, the stock-raiser, and the merchant seemed to be allowed to exist only to pay the Spanish functionary, instead of the government's existing for the benefit of the producing community. To this day, service with the government is more esteemed than commercial pursuits. The national ideals are only slowly becoming industrial.
The King of Castile was absolute sovereign and sole proprietor of America. The continent was an appanage of his crown; it did not form an integral part of Spain; America and Spain were connected solely through their common allegiance to him. The King governed America directly, assisted not by his regular ministers, but by a body of personal advisers called the Council of the Indies. His representatives in South America were the Viceroys of Mexico and Peru. The latter's jurisdiction extended over all South America. Certain great territorial divisions had been made Captaincies-General, and though theoretically subordinate to the Viceroy, they were in effect independent of him. In the great capital cities sat bodies of high judicial and executive officials known as Audiencias. Among their functions was that of exercising the powers of the Viceroy during his absence. Charcas, the capital of the mining region of Bolivia, was the seat of an Audiencia, and since this city had no resident Viceroy or Captain-General its Audiencia was the real supreme authority over the Argentine and all the territory east of the Cordillera, from Lake Titicaca to the Straits.
Viceroyalties and Captaincies-General were divided into provinces, each of which was ruled by a royal governor. When the Spaniards permanently occupied a new region their first step was to found a city and organise a municipal government. Like the Romans, they knew no other unit of political structure. The governing body was called a Cabildo and consisted of from six to twelve members who held office for life. It conducted the ordinary judicial and civil administration through officers selected by itself and from its own members. Though the governor was ex-officio president of this body, and although its members had bought their places, they were not mere figureheads to register his will. Limited though their functions were, they represented the time-honoured governmental form into which Spaniards had always crystallised, and the Creoles could not be prevented from obtaining a preponderant influence in them. Throughout colonial times they represented local and Creole interests and operated continually as a check to the aggression of the military governors.
The territorial jurisdiction of a municipality was usually ill-defined. Indeed, as a rule, in the days of settlement it extended in every direction until the claim of another city was encountered, and the terms "city" and "province," were, therefore, usually synonymous. As population grew denser new cities were founded which as municipalities were independent of the capital town, but they were not necessarily separated from the original province. The Cabildo of the capital of a province bore a peculiar relation to the royal governor, and often tried to exercise a control over the affairs of the whole province, deeming themselves his associates and the sharers of the functions he exercised, outside of its own boundaries, as well as within them. This assumption was favoured by the fact that no general body representing all the cities of a province existed, nor any constitutional machinery by which they could act in common.
Spanish-Americans have known only two forms of government, which have everywhere and always co-existed, though they seem inconsistent. First, there is an executive—the limits of his power ill-defined, and often imposing his will by force, in essence arbitrary and personal, and feared rather
