It was a disconcerting fact, indeed, that although Spain and Portugal had divided the world between them, the thrifty Dutch seemed to reap the major profits of their discoveries. Within half a century Antwerp had risen to be the chief entrepôt and financial clearing-house of western Europe. English wool was marketed there, and there English loans were floated. There Portuguese spice cargoes, purchased while still at sea, were brought to be exchanged at high prices for the gold and silver that found its way into the hands of Spain's creditors in Germany, Italy, and France. A wealthy people were these Dutch subjects of Philip II; subjects, yet half free, escaping his control. It was intolerable that the Netherlands, infested with heresy, drawing their wealth from the enemies of Spain, and from Spain itself, should not contribute their share to the service of the empire.
To control the Netherlands and to divert the profits of Dutch trade into the Spanish treasury was thus an essential part of Philip's policy. When the Duke of Alva left for Brussels in 1567 he promised to make the Netherlands self-supporting and to extort from them an annual revenue of two million ducats. But the methods of Alva were destined to failure. He was a better master of war than of finance, and by ruining Dutch trade he killed the goose that laid the golden egg. The Southern Netherlands were finally conciliated by a more skillful policy than any known to Alva; but the city of Antwerp never recovered from the ruin which Philip's unpaid soldiers inflicted upon it in 1576, and when the war was over, the commercial and industrial activities which had made it prosperous were to be found in Amsterdam in the independent Netherlands, and in London across the Channel.
Yet if the Netherlands escaped the direct control of Philip, their wealth might be appropriated at its source. The Portuguese were still intrenched in the East, and Dutch prosperity was in no small part founded on privileges granted at Lisbon. Philip's opportunity came in 1580 when a disputed succession to the throne opened the way to intervention and the rapid conquest of Portugal. At a stroke the Portuguese dominions in Africa and the East Indies were added to Spain's American possessions. Throughout Europe Philip was thought to have played a winning card; for the most desired sources of the world's wealth were at the disposal of the Catholic king if he could but police the sea. But so complete a monopoly was not to be endured by his rivals; and France, Holland, and England, as a necessary prelude to their colonizing activities in the New World and in the Old, gathered their forces to dispute the maritime supremacy of Spain.
II
It was well understood that the power of Philip II depended upon his American treasure, and his treasure upon his control of the sea. "The Emperor can carry on war against me only by means of the riches which he draws from the West Indies," cried Francis I when Verrazano brought home some treasure taken from Spanish ships in Western waters. And Francis Bacon expressed the belief of the age when he wrote that "money is the principal part of the greatness of Spain; for by that they maintain their veteran army. But in this part, of all others, is most to be considered the ticklish and brittle state of the greatness of Spain. Their greatness consisteth in their treasure, their treasure in the Indies, and their Indies (if it be well weighed) are indeed but an accession to such as are masters of the sea."
It was not for France to contest the maritime supremacy of Spain in the sixteenth century. The wars of Francis I and Charles V bred a swarm of corsairs who harassed Spanish trade and penetrated even to the West Indies; but before 1559 the resources of the French Government were mainly devoted to resisting the Hapsburgs in Europe, and after 1563 the country was distracted by civil war. The Mediterranean proved, indeed, an attractive field for French commercial expansion. The common enmity of French and Turk toward the Hapsburg found expression in the commercial treaty of 1536 between Solyman and Francis I, and in the following half-century the "political and commercial influence of France became predominant in the Moslem states." But in Western waters the activity of France was slight. Without the naval strength to resist Spain, she could not afford to offend Portugal, who was her effective ally. Francis I interdicted expeditions to Brazil because the Portuguese King protested, and Coligny's Huguenot colony in Florida was destroyed by the Spaniard Menendez in 1565. Breton fishermen plied their trade off the Grand Banks; but in this century the only French expedition having permanent results for colonization was undertaken in 1534 and 1535 by Jacques Cartier, who sailed up the St. Lawrence as far as Montreal, and in the name of Francis I took possession of the country which was to be known as New France.
The Dutch did yeoman service against the navy of Philip during the war of independence, but the task of breaking the maritime power of Spain fell mainly to England in the age of Elizabeth. Cabot's notable voyage was without immediate result. Neither the frugal Henry VII, who gave "£10 to him that found the new isle," nor his extravagant son, who was engaged in separating England from Rome and in enriching the treasury with the spoils of the monasteries, coveted the colonies of Spain or greatly feared her power in Europe. But Elizabeth, seated on the throne by precarious tenure, confronted at home and abroad by the rising fanaticism of the Catholic reaction, found the ambition of Philip a menace to national independence. And she knew well that Spain must be met in the Netherlands and on the sea. Yet the task which confronted her was one for which the naval resources of the state were inadequate, and the politic and popular queen turned to the nation for assistance in the hour of need.
And not in vain! For year by year the national opposition to Spain gathered force. Products seeking markets and capital seeking investment were increasing, while opportunities for profit abroad were diminishing. Merchant and capitalist were everywhere confronted by the monopoly of Spain and Portugal, and thus the maritime and commercial supremacy of the queen's chief enemy was at once a national menace and a private grievance. English Protestants, driven into exile in the days of "Bloody Mary," returned in the time of Elizabeth, bringing back the spirit of Geneva, and imbued with an uncompromising hatred of Papists which was fanned to white heat by the Jesuit plots, supposed to be inspired by Philip himself, against the queen's life. The rising opposition to Spain thus took on the character of a crusade: for statesmen it was a question of independence; for merchants a question of profits; for the people a question of religion. And so it happened that in time of peace the ships of Spain were regarded as fair prize. When piracy wore the cloak of virtue there were many to venture; and the queen was ready to reward the buccaneer for the crimes that made him a popular hero. Cautious in her purposes, devious in her methods, too frugal and too poor to embark on great undertakings or open hostility, Elizabeth encouraged every secret enterprise and every private adventure which had for its object the enrichment of her subjects at the expense of the common enemy.
John Hawkins will ever be memorable as the man who first openly contested the double monopoly of Spain and Portugal, and taught English merchants "how arms might signally help the expansion of trade." Descended from seafaring ancestors, his own apprenticeship was served in voyages to the African coast. Negroes were plentiful there, and laborers scarce in the West Indies. Well considering that the slave trade would insure the salvation of the benighted heathen and redound to the profit of thrifty planters, the devout Hawkins set about serving God and mammon for the advancement of his own fortunes and the glory of England. With capital supplied by City merchants, three vessels were equipped; and in 1562 Hawkins sailed for Sierra Leone, where he procured by force or purchase three hundred negroes, who were exchanged with no great difficulty at Hispaniola for a rich cargo of merchandise. An enterprise which netted sixty per cent profit was not to be abandoned, and in 1564 a second voyage was made, with greater profit still. But the third voyage, in 1567, came to grief at San Juan de Ulloa, where Hawkins fell in with the Spanish plate fleet. The fleet might have been plundered, but the naïve Hawkins, relying in vain upon the pledged word of the Spaniards, was treacherously attacked and his ships mostly destroyed, while he himself barely escaped with his life.
Accompanying Hawkins on this voyage, and escaping with him from San Juan de Ulloa, was "a certain Englishman, called Francis Drake." Reared in a Protestant family which had felt the effects of the reaction under Queen Mary, he had an instinctive hatred of the Roman Church, and his experience at San Juan de Ulloa inspired him at the age of twenty with a lifelong animosity toward all Spaniards. Renouncing the semi-peaceful methods of Hawkins, Drake devoted his life to open privateering, never doubting that in plundering Spanish ships he was discharging a private debt and a public obligation. And of all the gentlemen adventurers who made plunder respectable and raised piracy to the level of a fine art, he was the greatest. He carried himself in the "pirate's profession with a courtesy, magnanimity, and unfailing humanity, that gave to his story the glamour of romance." No other name struck such fear into Spanish hearts, or so raised in English ones the spirit of adventure and of contempt for the queen's enemies. He is known in Spanish annals as "the Dragon," and before he died the maritime power of Spain had passed its zenith.