century almost to our own times. For the greater fecurity of the valuable cargoes fent to America, as well as for the more eafy prevention of fraud, the commerce of Spain, with its colonies, is carried on by fleets which fail under ftrong convoys. Thefe fleets confifting of two fquadrons, one diftinguished by the name of Galeons, the other by that of the Flota, are equipped annually. Formerly they took their departure from Seville; but as the port of Cadiz has been found more commodious, they have failed from it fince the year 1720, Carried on by the Galeons. The Galeons deftined to fupply Tierra Firmè, and the kingdoms of Peru and Chili, with almoft every article of luxury, or neceffary confump tion, that an opulent people can demand, touch firft at Carthagena, and then at Porto bello. To the former, the merchants of Santa Martha, Caraccas, the New Kingdom of Granada, and feveral other provinces, refort. The latter is the great mart for the rich commerce of Peru and Chili. At the feafon when the Galeons are expected, the product of all the mines in these two kingdoms, together with their other vaJuable commodities, is tranfported by fea to Panama. From thence, as foon as the appearance of the fleet from Europe is announced, they are conveyed across the ifthmus, partly on mules, and partly down the river Chagre to to Porto bello. This paltry village, whofe climate, from the pernicious union of exceffive heat, continual moisture, and the putrid exhalations arifing from a rank foil, is more fatal to life than any perhaps in the known world, is immediatelly filled with people. From being the refidence of a few negroes and mulattoes, and of a miferable garrifon relieved every three months, its ftreets are crowded with opulent merchants from every corner of Peru, and the adjacent provinces. A fair is opened, the wealth of America is exchanged for the manufactures of Europe; and, during its prefcribed term of forty days, the richeft traffick on the face of the earth is begun and finifhed, with that fimplicity of transaction and unbounded confidence, which accompany extenfive commerce. z) and the Flota. The Flota holds its courfe to Vera Cruz. The treasures and commodities of New Spain, and the depending provinces, which were depofited at Puebla de los Angelos in expectation of its arrival, are carried thither, and the commercial operations of Vera Cruz, conducted in the fame manner with thofe of Porto bello, inferior to them only in importance and value. Both fleets, as foon as they have completed their cargoes from America, rendezvous at the Havanna, and return in company to Europe. 2) See NOTE LXIV. ROBERTSON Vol. III. Y are Bad effects of this arrangement. The trade of Spain with her colonies, while thus fettered and restricted, came neceffarily to be conducted with the fame fpirit, and upon the fame principles, as that of an exclufive company. Being confined to a fingle port, it was of course thrown into a few hands, and almoft the whole of it was gradually engroffed by a small number of wealthy houfes, formerly in Seville, and now in Cadiz. These by combinations, which they can eafily form, may altogether prevent that competition which preferves commodities at their natural price; and by acting in concert, to which they are prompted by their mutual intereft, they may raise or lower the value of them at pleafure. In confequence of this, the price of European goods in America is always high, and often exorbitant. A hundred, two hundred, and even three hundred per cent, are profits not uncommon in the commerce of Spain with her colonies. a) From the fame ingroffing fpirit it frequently happens, that traders of the fecond order, whofe warehouses do not contain a complete affortment of commodities for the American market, cannot purchafe from the more opulent merchants, fuch goods as they want, at a lower price than that for which they are fold in the colonies. With the fame vigilant a) B. Ulloa Retabliff. part. ii. p. 191. jealousy that an exclufive company guards against the intrufion of the free trader, thofe overgrown monopolifts endeavour to check the progrefs of every one whofe encroachments they dread. b) This reftraint of the American commerce to one port, not only affects its domestick ftate, but limits its foreign operations. A monopolift may acquire more, and certainly will hazard lefs, by a confined trade which yields exorbitant profit, than by an extensive commerce in which he receives only a moderate return of gain. It is often his intereft not to enlarge, but to circumfcribe the fphere of his activity; and, instead of calling forth more vigorous exertions of commercial industry, it may be the object of his attention to check and fet bounds to them. By fome fuch maxim, the mercantile policy of Spain feems to have regulated its intercourfe with America. Inftead of furnishing the colonies with European goods in fuch quantity as might render both the price and the profit moderate; the merchants of Seville and Cadiz feem to have fupplied them with a fparing hand, that the eagerness of competition, amongst customers obliged to purchase in a fcanty market, might enable their factors to difpofe of their cargoes with exorbitant gain. About the middle of the laft century, when the Y 2 b) Smith's Inquiry, ii. 171. Campomanes, Educ. Popul. i. 438. exclufive trade to America from Seville was in its moft flourishing state, the burden of the two united fquadrons of the Galeons and Flota, did not exceed twenty-feven thoufand five hundred tons. c) The fupply which fuch a fleet could carry, muft have been very inadequate to the demands of thofe populous and extenfive colonies, which depended upon it for all the luxuries, and many of the neceffaries of life. Remedies propofed. Spain early became fenfible of her declenfion from her former profperity, and many refpectable and virtuous citizens employed their thoughts in devifing methods for reviving the decaying induftry and commerce of their country. From the violence of the remedies propofed, we may judge how defperate and fatal the malady appeared. Some, confounding a violation of police with criminality against the ftate, contended, that in order to check illicit commerce, every perfon convicted of carrying it on, fhould be punifhed with death, and confifcation of all his effects. d) Others, forgetting the diftinction between civil offences and acts of impiety, infifted, that contraband trade fhould be ranked among the crimes referved for c) Campomanes, Educ. Popul. i. 435. ii. 110. |