The Impact of the Discovery and Colonization of America on Spain
The Discovery and Colonization of America and its Impact on Spain
The Discovery of America
The discovery and conquest of America was a Castilian endeavor aimed at finding an alternative route to the East Indies. Christopher Columbus, likely a Genoese sailor and adventurer, intended to reach the Indies by sailing west, based on the idea that the Earth was spherical. It wasn’t until the fall of Granada that the Catholic Monarchs accepted Columbus’ proposal. They signed an agreement with him, the Capitulations of Santa Fe (April 17, 1492), granting him the titles of Admiral, Viceroy, and Governor of the discovered lands, along with one-tenth of the wealth obtained.
Columbus set sail from Palos on August 3, 1492, and on October 12, he reached the Antilles, landing on the island of Guanahani, which he named San Salvador. After discovering Cuba and Hispaniola, he returned to the peninsula. Columbus made three more voyages between 1493 and 1504. It seems he died believing he had reached the western coasts of Asia. However, other sailors who embarked on subsequent voyages explored the coasts of South America, including the Florentine Amerigo Vespucci, who asserted that these lands did not belong to Asia. A German cartographer named the continent America in 1507.
After Columbus’ first voyage, the Castilian monarchy’s rights to the discovered lands and any future discoveries were recognized. These rights extended west of an imaginary line located one hundred leagues west of the Azores and Cape Verde, as per the papal arbitration of Alexander VI and the Treaty of Alcaçovas (1479) between Castile and Portugal. However, the Portuguese were dissatisfied with these developments, and the Catholic Monarchs, interested in maintaining good relations with their neighboring kingdom, reached a new agreement by signing the Treaty of Tordesillas (1494). This treaty moved the dividing line 370 leagues west of the Cape Verde islands, allowing Portugal to occupy Brazil. From then on, the systematic exploration and colonization of the continent began.
Conquest and Colonization
During the reign of Charles I, the exploration and colonization of the Americas proceeded. The conquest was carried out by private expeditions in which the conquistadors signed capitulations with the Crown, outlining the objectives and the division of spoils. Notable was the conquest of the Aztec Empire in Mexico by Hernán Cortés between 1519 and 1521. Cortés exploited the discontent of the peoples conquered by the Aztec empire to gain control and establish an effective administration, while also sending out several expeditions that allowed him to expand the territory. The other major achievement of the period was the conquest of the Inca Empire in Peru, explored and ultimately subdued by Pizarro and Almagro between 1531 and 1533.
These conquests were followed by large expeditions that expanded knowledge and occupation of new territories. The lands of Chile were explored by Diego de Almagro and Pedro de Valdivia, Pedro de Mendoza founded Buenos Aires in 1535, Orellana explored the Amazon, and Hernando de Soto explored the Mississippi, among others. In just ten years, almost all of America had been explored, from California to the Río de la Plata.
Initially, the conquistadors focused on extracting as much gold as possible. However, the fertile lands of the continent attracted settlers eager to establish themselves in America. These settlers, primarily from Andalusia, Extremadura, and the Basque Country, received land grants and were assigned groups of indigenous people (encomienda) theoretically to be evangelized and educated. In practice, however, these indigenous people were forced into hard labor. The mines were royal property, and the Crown granted their operation to individuals in exchange for the delivery of one-fifth of all the ore extracted.
In both cases, labor was based on the exploitation of the indigenous population. The Crown’s provisions to prevent abuse of the indigenous population were systematically violated, despite the ongoing denunciations of Bartolomé de las Casas regarding the exploitation they endured. Population scarcity also led to a significant trade in enslaved people from Africa, initially controlled by the Portuguese and later by the Dutch.
Impact of America on Spain
From the beginning of the discovery, the potential of the new territories for commercial exploitation was evident. The conquest of America enabled an exchange of agricultural products previously unknown on either side of the Atlantic. Corn, potatoes, cocoa, tobacco, and peanuts were the most significant contributions from America, although gold and silver were the greatest riches extracted.
The new territories represented a substantial source of income for Castile, and especially for the Crown, which controlled trade and reserved one-fifth of all imported products. However, the Spanish Crown’s high indebtedness incurred to finance the expansion and subsequent maintenance of the empire meant that much of this treasure was spent as quickly as it was acquired.
During the first half of the 16th century, there was significant economic growth in the Iberian Peninsula, partly due to the colonization of America. Settlers demanded all sorts of products, which increased production, trade, and port activity. On the other hand, the arrival of precious metals from America drove up prices, particularly in southern cities and ports where the fleets arrived laden with gold and silver. While, in theory, gold and silver could not be obtained in the peninsular kingdoms, this prohibition was not enforced. Precious metals were smuggled in, and European goods were purchased with them. The Crown also began to repay loans (mainly to support wars in Europe) that European bankers had made using American silver. Gradually, a circuit was established whereby silver flowed from Castile to Europe. The rapid increase in the amount of metal in circulation, both in Spain and Europe, coupled with a slower growth in the range of products, fueled a sustained rise in prices, leading to a phenomenon known as the Price Revolution.
From a demographic perspective, it is estimated that only around 150,000 Spaniards emigrated to America throughout the century. Although this number was not insignificant, and the emigrants were mostly young men, it affected both the population of the mainland and that of America.