108 



COMMERCE. 



the provinces of the crown of Castille, the severest penalties 

 were enadted to oblige the homeward-bound vessels to pro- 

 ceed dire6tly to Seville. By this restri6lion the efFe6t of the 

 general permission was annulled. 



The system of the galleons was chosen as the most secure 

 for the supply of the above provinces, and, by the scale of 

 prices drawn up by the commercial deputies of Spain and 

 Peru, established the just value of the merchandizes and ef- 

 fe£ts. The loss of Jamaica in the middle of the seventeenth 

 century, augmented very considerably the contraband trade.. 

 The pillage of Panama, in 1670, by the Englishman, John 

 Morgan, which rendered it necessary to with-hold the capitals, 

 and to delay the remittances until notice should be sent of the 

 arrival of the ships at Carthagena; together with the privilege 

 granted to a company of English merchants in 17 13, in con- 

 formity to a preliminary article of the treaty of Utrecht, to 

 supply Peru with negroes for the space of thirty years, op- 

 pressed to such a degree, by the competition which was set 

 up, these celebrated marts, that after the oneholden in 1737, 

 it was impossible to continue the above system for a longer 

 time. 



In its stead was substituted the commerce by Cape Horn,, 

 in detached ships, without any regulation either as to their 

 number, or the time of their sailing, the permission to em- 

 ploy them in this trade being a special favour, subje61:, how- 

 ever, to an infinity of delays, and of perplexing formalities, 

 established on the pretext of preventing smuggling, which, 

 combined with the very high rate of tonnage, impeded the 

 success of every enterprize. 



At length came the new regulation of a free trade. It was 



promul- 



