por What were the economic activities of New Spain?
The economic activities of New Spain They were characterized by being subordinated to the requirements and needs of the Spanish Crown, which received enormous wealth from this viceroyalty. Mining, agriculture, commerce and industry stood out.
Various economic activities were developed that allowed the subsistence of those who lived in the area, but the emphasis was always on preventing a very evident development, to avoid giving power and autonomy to the colonies, and thus keep them as working peoples subject to Spain.
Main economic activities in New Spain
The main economic activities were mining, agriculture, livestock, trade and industry. The characteristics of each one will be detailed below:
1. Mining
Mining was an important economic activity because, from it, other activities arose that also played a key role in the development of the region’s economy.
Also, at that time, the amount of precious metals was what determined how rich and powerful a region was.
Between the years 1546 and 1548, large silver deposits were discovered in New Spain, especially in the Zacatecas area, which would later become the third largest silver generator in Mexico and the fifth worldwide.
Mining was a lucrative activity for several reasons. Labor was very cheap, since it was about indigenous people, who were practically slaves, or independent workers who accepted extremely low payments.
In the mining industry, there was what was called the “real quinto”, which was a tax that the miners’ union had to pay to the Spanish Crown (generally it was 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 close to the mines to supply the newly created mining cities.
Agriculture was seen as an inferior activity, not dignified for the Spanish, the mestizos or the Creoles.
These acted as owners, but did not participate directly in the process, but had black foremen who worked the land.
Among the products that were produced in New Spain, corn, cocoa, and beans, among others, stand out. The Spaniards introduced several new species in the area, whose cultivation prospered, such as oats, wheat, rice, coffee, bananas, sugar cane and different fruit trees, among other foods.
3. Livestock
Livestock also became more necessary thanks to the development of the mining industry, because it became necessary to have animal power for transportation and other tasks.
Beef and pork also covered the food demand of the inhabitants of New Spain.
Horses were introduced from Spain, which at first served as transportation for the nobles and later, as they reproduced rapidly and their prices fell, a means of transportation for almost all the inhabitants of New Spain. Among other animals there were also pigs, sheep, goats, chickens and cows, and also mules and donkeys for the work of loading.
The difficulty that livestock production brought 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 these original peoples.
There were some products that were prohibited in New Spain, because they wanted to avoid the emergence of a producer that would compete with the products that were produced in Spain. For this reason, the cultivation of vines or olives were restricted.
4. Trade
As for internal trade, many merchants moved regularly along the roads that reached the mining towns.
In these areas, local markets were also created, which fostered the economic growth of the mining centers, and also promoted internal trade.
Commercialization within New Spain had a monopoly through the Consulate of Merchants of Mexico City, an organization made up of the most important wholesale merchants, which bought all the products that arrived from Spain and from the eastern market.
As for foreign trade, in 1503 the Seville Trading House was created, through which everything related to trade between Spain and its colonies was controlled.
This entity granted permits, supervised merchandise, charged high taxes and imposed strong regulations, which created a commercial monopoly that gave rise to piracy and smuggling.
As part of the existing commercial monopoly, New Spain was prohibited from trading with ports other than Cádiz and Seville, both in Spain, and with the ports of Panama, Cartagena de Indias, and Veracruz, in America.
The only ones who had the right to have the privilege of commercialization were Spaniards and naturalized foreigners.
Manufactured 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, gunpowder, paper, silk and mercury stood out.
The idea was that New Spain would export the raw material to Spain, and then Spain would export the already manufactured products to New Spain, which slowed down the development of industry in the Spanish colony.
5. Industry
Industrial development had many obstacles. It was not convenient for Spain to have industry develop widely in its colonies, because this gave them power.
So, there were many prohibitions, such as the manufacture of silk, wine, olive oil, among other items. However, there were two industries that managed to develop: the so-called artisan workshop and the textile industry.
In the artisan workshops, various products were produced, such as furniture, toys and shoes, among others. Free men who had certain privileges worked in these workshops.
On the other hand, the textile industry was developed in factories called obrajes, which offered really demeaning and very harsh working conditions. Free men, blacks and Indians could work, and fabrics, hats and blankets were manufactured there, among other products.
6. Manufacture of liquors
In Mexico, the maguey or agave was cultivated ancestrally. With this plant they produced many things, such as a type of paper, but they also made fermented drinks, such as pulque and tequila. Pulque is a traditional pre-Hispanic drink, and tequila is a distillate from agave. The latter was marketed at the end of the 18th century by authorized French industrialists.
References
Viceroyalty of New Spain (2000). Retrieved from encyclopedia.com.
Dominguez, H. and Carrillo, R. (2010). Economic activities and social organization in New Spain. Retrieved from portalacademico.cch.unam.mx.
Hoyt, D. (1998). The economy of New Spain: Mexico’s Colonial era. Recovered from mexconnect.com.
Salvucci, R. (2017). The Economic History of Mexico. Retrieved from eh.net.