INTRODUCTION. 



93 



those nations who were engaged in the contraband, 

 and who contrived to be regularly informed of the 

 state of the American markets. 



A step of much greater magnitude towards the dis- 

 enthralraent of the American commerce^ was taken in 

 the year following. Tlie trade was laid open to all 

 the provinces of Spain to the windward islands. In 

 the year ±77% another innovation took place in the 

 system which regulated the mutual intercourse of the 

 colonies; the injudicious interdiction which had before 

 existed was removed. These rapid ameliorations, 

 finally, under the administration of Galves, led the 

 way to what has been called the decree of free trade, 

 which was passed in the year 1778- By this decree, 

 seven of the principal Spanish ports were freely per- 

 mitted to engage in trade with Buenos Ayres and the 

 ports of the South Sea. These measures had an in- 

 stantaneous and wonderful effect on the prosperity of 

 South America. When we consider the commercial 

 policy with which Spain sat out, this may be re- 

 garded as a vast revolution, though the work of ages; 

 and yet thete was still much wanting to attain the 

 same point with the English and French. In spite 

 of all these alleviations, the system was in itself still 

 wretched, the restrictions remaining were so nume- 

 rous, the laws in their details were still so unfavor- 

 able to trade, that a mass of evils continued unredress- 

 ed. The duties in general amounted to an average 

 of thirty per cent, and the regulations of the custom 

 house were exceedingly vexatious. In general the 

 interloper was said to have an advantage over the 

 regular trader of nearly sixty per cent. Smug- 



