9^ 



INTRODUCTION. 



ten years, laden with European merchandise, to the 

 fair of Porto Bello. They were also permitted to es- 

 tablish factories at Panama, Carthagena, Vera Cruz, 

 and Buenos Ayres. This and other advantages en- 

 abled the British to engross nearly the whole trade 

 of South America, while the galleons served for little 

 else than to brina; home the royal treasures. The ef- 

 fects of these privileges became so evidently injurious 

 to Spain, that they gave rise to continual bickerings 

 and disputes, which terminated in the war between 

 her and Great Britain in 17^9, putting an end to the 

 Assiento trade. 



Spain having the trade once more in her own hands 

 endeavored to remedy the defects of the ancient sys- 

 tem, by granting licenses to vessels which were called 

 register ships, so as to provide a more regular supply 

 during the interval of the galleons and flotilla. For 

 this permission, the council of the Indies exacted a 

 very high premium. It had the effect of lessening the 

 extraordinary profits of the interloper, although it by 

 no means put a stop to the contraband. But as an 

 extension of the regular trade it had a beneficial effect 

 on the Spanish colonies. The advantages which also 

 resulted to the crown by the augmentation of its re- 

 venues, was such as to occasion the galleons and flo- 

 tilla to be entirely laid aside. 



Another very important change took place in the 

 year 1764, in the establishment of packet-boats to run 

 every month to the Havanna, Porto Rico and La 

 Plata, with permission also to carry out a half cargo 

 of goods for those different American markets. Here- 

 tofore Spain had always been the last to receive in- 

 formation from her colonies; and this generally through 



