Before Pizarro strangled and decapitated Atahualpa, he got from him a ransom of "gold and silver weighing more than 20,000 marks in fine silver and 1,326,000 escudos in the finest gold." Then Pizarro advanced on Cuzco. His soldiers thought they were entering the city of the Caesars, so dazzling was the capital of the empire, but they proceeded without delay to sack the Temple of the Sun. "Struggling and fighting among each other, each trying to get his hands on the lion's share, the
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soldiers in their coats of mail trampled on jewels and images and pounded the gold utensils with hammers to reduce them to a more portable size. . . They tossed all the temple's gold into a melting pot to turn it into bars: the laminae that covered the walls, the marvelous representations of trees, birds, and other objects in the garden."10
Today in the enormous bare plaza at the center of Mexico City the Catholic cathedral rises on the ruins of Tenochtitlan's greatest temple and the government palace occupies the site where Cuauhtemoc, the Aztec chief martyred by Cortes, had his residence. Tenochtitlan was razed. In Peru, Cuzco suffered the same fate, but the conquistadors could not completely destroy its massive walls and this testimony in stone to the Inca's colossal architecture can still be seen in the bases of the colonial buildings.
THE SILVER CYCLE: THE SPLENDORS OF POTOSI
They say that even the horses were shod with silver in the great days of the city of Potosi, The church altars and the wings of cherubim in processions for the Corpus Christi celebration in 1658, were made of silver: the streets from the cathedral to the church of Recoletos were completely resurfaced with silver bars. In Potosi, silver built temples and palaces, monasteries and gambling dens; it prompted tragedies and fiestas, led to the spilling of blood and wine, fired avarice, and unleashed extravagance and adventure. The sword and the cross marched together in the conquest and plunder of Latin America, and captains and ascetics, knights and evangelists, soldiers and monks came together in Potosi to help themselves to its silver. Molded into cones and ingots, the viscera of the Cerro Rico-- the rich hill-- substantially fed the development of Europe. "Worth a Peru" was the highest possible praise of a person or a thing after Pizarro took Cuzco, but once the Cerro had been discovered Don Quixote de la Mancha changed the words: "Worth a Potosi," he says to Sancho.
This jugular vein of the viceroyalty, America's fountain of silver, had 120,000
inhabitants by the census of 1573. Only twenty-eight years had passed since the city sprouted out of the Andean wilderness and already, as if by magic, it had the same population as London and more than Seville, Madrid, Rome, or Paris. A new census
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in 1650 gave Potosi a population of 160,000. It was one of the world's biggest and richest cities, ten times bigger than Boston-- at a time when New York had not even begun to call itself by that name. Potosi's history did not begin with the Spaniards. Before the conquest the Inca Huayna Capaj had heard his vassals talk of the Sumaj Orko, the beautiful hill, and he was finally able to see it when, having fallen ill, he had himself taken to the thermal springs of Tarapaya. From the straw-hut village of Cantumarca the Inca's eyes contemplated for the first time that perfect cone which rises proud1y between the mountain peaks. He was awestruck by its reddish hues, slender form, and giant size, as people have continued to be through ensuing centuries. But the Inca suspected that it must conceal precious stones and rich metals in its bowels, and he wanted to add new decorations to the Temple of the Sun in Cuzco. The gold and silver that the Incas took from the mines of Colque Porco and Andacaba did not leave the kingdom: they were not used commercially but for the adoration of the gods. Indian miners had hardly dug their flints into the beautiful Cerro's veins of silver when a deep, hollow voice struck them to the ground. Emerging as loud as thunder from the depths of the wilderness, the voice said in Quechua: "This is not for you; God is keeping these riches for those who come from afar." The Indians fled in terror and the Inca, before departing from the Cerro, changed its name. It became "Potojsi," which means to thunder, burst, explode.
"Those who come from afar" took little time in coming, although Huayna Capaj was dead by the time the captains of the conquest made their way in. In 1545 the Indian Huallpa, running in pursuit of an escaped llama, had to pass the night on the Cerro, It was intensely cold and he lit a fire. By its light he saw a white and shining vein-- pure silver. The Spanish avalanche was unleashed.
Wealth flowed like water. The Holy Roman Emperor, Charles V, showed his gratitude by bestowing on Potosi the title of Imperial City and a shield with the inscription: "I am rich Potosi, treasure of the world, king of the mountains, envy of kings." Only eleven years after Hualipa's discovery the newborn Imperial City celebrated the coronation of Philip II with twenty-four days of festivities costing 8 million pesos duros. The Cerro was the most potent of magnets. Hard as life was at its base, at an altitude of nearly 14,000 feet the place was flooded with treasure
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hunters who took the bitter cold as if it were a tax on living there. Suddenly a rich and disorderly society burst forth beside the silver, and Potosi became "the nerve center of the kingdom," in the words of Viceroy Antonio de Mendoza.
By the beginning of the seventeenth century it had thirty-six magnificently decorated churches, thirty-six gambling houses, and fourteen dance academies.
Salons, theaters, and fiesta stage-settings had the finest tapestries, curtains, heraldic emblazonry, and wrought gold and silver; multicolored damasks and cloths of gold and silver hung from the balconies of houses. Silks and fabrics came from Granada, Flanders, and Calabria; hats from Paris and London; diamonds from Ceylon; precious stones from India; pearls from Panama; stockings from Naples; crystal from Venice; carpets from Persia; perfumes from Arabia; porcelain from China. The ladies sparkled with diamonds, rubies, and pearls; the gentlemen sported the finest embroidered fabrics from Holland.
Bullfights were followed by tilting contests, and love and pride inspired frequent medieval-style duels with emerald-studded, gaudily plumed helmets, gold filigree saddles and stirrups, Toledo swords, and richly caparisoned Chilean ponies.
In 1579 the royal judge Matienzo complained: "There is never a shortage of novelty, scandal, and wantonness." Potosi had at the time 800 professional gamblers and 120 famous prostitutes, whose resplendent salons were thronged with wealthy miners. In 1608 Potosi celebrated the feast of the Holy Sacrament with six days of plays and six nights of masked balls, eight days of bullfights and three of fiestas, two of tournaments and other dissipations.
SPAIN OWNED THE COW, OTHERS DRANK THE MILK
Between 1545 and 1558 the prolific silver mines of Potosi, in what is now Bolivia, and of Zacatecas and Guanajuato in Mexico, were discovered, and the mercury amalgam process, which made possible the exploitation of the lowest-grade silver, began to be used. The "silver rush" quickly eclipsed gold mining.
In the mid-seventeenth century silver constituted more than 99 percent of mineral exports from Spanish America. Latin America was a huge mine, with Potosi as its chief center. Some excessively enthusiastic Bolivian writers insist that in three
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centuries Spain got enough metal from Potosi to make a silver bridge from the tip of the Cerro to the door of the royal palace across the ocean. This is certainly fanciful, but even the reality stretches one's imagination to the limit: the flow of silver achieved gigantic dimensions. The large-scale clandestine export of Latin American silver as contraband to the Philippines, to China, and to Spain itself is not taken into account by Earl Hamilton, who nevertheless cites, in his well-known work on the subject, astounding figures based on data from the Casa de Contratacion in Seville.11 Between 1503 and 1660, 185,000
kilograms of gold and 16,000,000 of silver arrived at the Spanish port of Sanlukar de Barrameda, Silver shipped to Spain in little more than a century and a half exceeded three times the total European reserves-- and it must be remembered that these official figures are not complete.
The metal
s taken from the new colonial dominions not only stimulated Europe's economic development; one may say that they made it possible. Even the effect of the Persian treasure seized and poured into the Hellenic world by Alexander the Great cannot be compared with Latin America's formidable contribution to the progress of other regions. Not, however, to that of Spain, although Spain owned the sources of Latin American silver. As it used to be said in the seventeenth century, "Spain is like a mouth that receives the food, chews it, and passes it on to the other organs, retaining no more than a fleeting taste of the particles that happen to stick in its teeth."12 The Spaniards owned the cow, but others drank the milk. The kingdom's creditors, mostly foreigners, systematically emptied the "Green Strongroom" of Seville's Casa de Contratacion, which was supposed to guard, under three keys in three different hands, the treasure flowing from Latin America.
The Crown was mortgaged. It owed nearly all of the silver shipments, before they arrived, to German, Genoese, Flemish, and Spanish bankers. The same fate befell most of the duty collected in Spain itself: in 1543, 65 percent of all the royal revenues went to paying annuities on debts. Only in a minimal way did Latin American silver enter the Spanish economy; although formally registered in Seville, it ended in the hands of the Fuggers, the powerful bankers who had advanced to the Pope the funds needed to finish St. Peter's, and of other big moneylenders of the period, such as the Welsers, the Shetzes, and the Grimaldis. The silver
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also went to paying for the export of non-Spanish merchandise to the New World.
The rich empire had a poor metropolis, although the illusion of prosperity blew increasingly large bubbles into the air. The Crown kept opening up new war fronts, while on Spanish soil the aristocracy devoted itself to extravagance, and priests and warriors, nobles and beggars, multiplied as dizzily as living costs and interest rates. Industry died with the birth of great sterile latifundia, and Spain's sick economy could not stand up to the impact of the rising demand for food and merchandise that was the inevitable result of colonial expansion. The big rise in public expenditures and the choking pressure of the overseas possessions' consumer needs accelerated trade deficits and set off galloping inflation. Jean-Baptiste Colbert, French minister of marine under Louis XIV, wrote, "The more business a state does with the Spaniards, the more silver it has." There was a sharp European struggle for the Spanish trade, which brought with it the market and the silver of Latin America. A late-seventeenth-century French document tells us that Spain controlled only 5
percent of the trade with "its" overseas colonial possessions, despite the juridical mirage of its monopoly: almost a third of the total was in Dutch and Flemish hands, a quarter belonged to the French, the Genoese controlled over one-fifth, the English one-tenth, and the Germans somewhat less. Latin America was a European business.
Charles V, heir to the Holy Roman emperors by purchased election, man of jutting chin and idiot gaze, spent only sixteen of his reign's forty years in Spain.
Having accupied the throne without knowing a word of Spanish, he governed with a retinue of rapacious Flemings whom he authorized to take out of Spain muletrain-loads of gold and jewels, and whom he showered with bishoprics, bureaucratic titles, and even the first license to ship slaves to the Latin American colonies. Intent on hounding Satan all across Europe, he drained Latin America of its treasure for his religious wars. The Hapsburg dynasty did not collapse with his death; Spain had to suffer them for nearly two centuries.
The great leader of the Counter-Reformation was his son, Philip II. From his huge palace-monastery, Escorial, on the slopes of the Sierra de Guadarrama, Philip spread the grim operations of the Inquisition across the world and launched his armies against the centers of heresy. Calvinism had taken hold in Holland, England, and France, and the Turks
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embodied the peril of a return to the faith of Allah. Spreading the true faith was a costly business: the few gold and silver objects, marvels of Latin American art, that arrived unmelted-down from Mexico and Peru were quickly taken from the Casa de Contratacion in Seville and thrown into the crucibles.
At the same time heretics, or those suspected of heresy, were roasted in the Inquisition's purifying flames, Torquemada burned books, and the Devil's tail peeped out from every crevice. The war against Protestantism was also the war against ascendant capitalism in Europe. The "perpetuation of the Crusades,"
writes J.H. Elliott, "meant the perpetuation of the archaic social organization of a nation of Crusaders." The metals of Latin America-- the delirium and downfall of Spain-- provided a means to fight against the nascent forces of the modern economy. Charles V had already defeated the Castilian bourgeoisie in the uprisings of the Comuneros, which had become a social revolution against the nobility, its property and privileges. The uprisings were crushed following the betrayal of the city of Burgos, which would be Francisco Franco's capital four centuries later. With the last rebel fires extinguished, Charles returned to Spain accompanied by 4,000 German soldiers. At the same time, the highly radical insurrection of weavers, spinners, and artisans, who had taken power in the city of Valencia and had extended it through the whole district, was drowned in blood.
Defense of the Catholic faith turned out to be a mask for the struggle against history. The expulsion of the Jews in the time of Ferdinand and Isabella had deprived Spain of many able artisans and of indispensable capital. The expulsion of the Arabs in 1609 is considered less important, although no fewer than 275,000 Moors were put over the border, disastrously effecting the economy of Valencia and ruining the fertile Aragonese lands south of the Ebro.
Previously, Philip II had thrown out thousands of Flemish artisans guilty or suspected of Protestantism. England welcomed them and they made a solid contribution to that country's manufactures.
It is clear that the enormous distances and the difficulty of communication .were not the main obstacles to Spain's industrial progress.
Spanish capitalists became no more than rentiers through the purchase of titles to Crown debts, and did not invest their capital in industrial development. The economic surplus went into unproductive channels: 25
the old wealthy class, the senores of gallows and knife, the owners of land and titles of nobility, built palaces and accumulated jewels; the new rich, speculators and merchants, bought land and titles. Neither the one nor the other paid taxes worth mentioning, nor could they be imprisoned for debt. Anyone devoting himself to industrial activity automatically lost his membership in the gentleman's club.
Successive commercial treaties, signed after Spain's military defeats in Europe, gave concessions that stimulated maritime trade between the port of Cadiz, where Latin America's metals were landed, and French, English, Dutch, and Hanseatic ports. Every year from 800 to 1,000 ships unloaded in Spain the products of other countries' industries. They reloaded with Latin American silver and Spanish wool that went to foreign looms, whence it would be returned already woven by the expanding European industry. The Cadiz monopolists merely forwarded foreign industrial products, which were then shipped to the New World: if Spanish manufactures could not even supply the home market, how could they satisfy the needs of the colonies?
The laces of Lille and Arras, Dutch fabrics, Brussels tapestries, Florentine brocades, Venetian crystal, Milanese arms, and French wines and cloths swamped the Spanish market, at the expense of local production, to satisfy the ostentation and consumer demands of ever more numerous and powerful parasites in ever poorer countries. Industry died in the egg, and the Hapsburgs did their best to speed its demise. The process reached its height in the mid-sixteenth century when importation of foreign textiles was authorized and all export of Castilian fabrics was banned except to Latin America. In contrast, as Jorge Abelardo Ramos has noted, were the policies of Henry VIII and Elizabeth I in England, when in that ascendant nation they banned the export of gold and silver, monopolized letters of credit, stopped wool exports, and ousted the North Sea merchants of the Hanseati
c League from British ports.
Meanwhile, the Italian republics were protecting their industry and external commerce through tariffs, privileges, and rigorous prohibitions: craftsmen could not leave the country under pain of death.
Everything went to rack and ruin, Of 16,000 looms in Seville on Charles V's death in 1558, only 400 remained when Philip II died forty years later. The 7 million sheep in Andalusian flocks were reduced to 2 million. In Don Quixote de Ia Mancha-- which was banned for a long 26
time in Latin America-- Cervantes drew a portrait of the society of his time. A mid-sixteenth-century decree stopped the importation of foreign books and barred students from taking courses outside Spain; the Salamanca student body was reduced by half in a few decades; there were 9,000 convents and the clergy multiplied almost as fast as the cloak-and-sword nobility; 160,000 foreigners monopolized foreign trade; and the squanderings of the aristocracy condemned Spain to economic impotence. Around 1630, 150-odd dukes, marquises, counts, and viscounts garnered 5 million ducats in annual rents, adding ever more frills to their fancy titles. The Duke of Medinaceli had 700 servants and the Duke of Osuna, to score off the Tsar of Russia, dressed his 300 in leather cloaks.( The species is not yet extinct, I opened a Madrid magazine at the end of 1969 and read of the death of Dona Teresa Beltran de Lis y Pidal Gorouaki y Chico, Duchess of Albuquerque and Marchionesa of the Atcanices and Balbases. She is mourned by the widower Duke of de Guzman Albuquerque, Don Beltran Alonso Osorio y Diez de Rivera Martos y Figueroa, Marquis of the Alcanices, of the Balbases, of Cadreita, of Cuellar, of Cullera, of Montaos, Count of Fuensaldana, of Grajal, of Huelma, of Ledesma, of La Torre, of Villanueva de Canedo, of Villahumbrosa, thrice Grandee of Spain.) The seventeenth century was the time of the picaro, the rogue, and of hunger and epidemics. Spain had countless beggars, but this did not discourage an influx of foreign beggars from every corner of Europe. By 1700 there were 625,000 hidalgos, knights of the battlefield, although the country was emptying: its population had dwindled by half in somewhat more than two centuries, and was equal to that of England, which had doubled in the same period. The Hapsburg regime finally ended in 1700 amid total bankruptcy. Chronic unemployment, idle latifundios, chaotic currency, ruined industry, lost war, empty coffers, central authority ignored in the provinces: the Spain that Philip V faced was "hardly less defunct than its dead master."13
Open Veins of Latin America Page 4
