The Development of the West Indies, 1492-1519.
Gold mining was important in Española for a time, but the mines were soon exhausted. In all the islands cotton, sugar, and cattle raising soon acquired some proportions, but the native population rapidly decreased, negro slaves were expensive, and rich profits attracted the settlers to the mainland; consequently, after the first quarter century the islands declined in prosperity and Porto Rico was for a time actually abandoned.
BEGINNINGS OF COLONIAL ADMINISTRATION AND POLICY
The Casa de Contratación.—For ten years Fonseca remained at the head of American affairs, being in effect colonial minister. In 1503 the Casa de Contratación or House of Trade was established at Seville, to direct commerce, navigation, and all related matters of the Indies. In charge of the Casa was a board of officials, including factors, treasurer, auditor, and notary. They maintained a warehouse for receiving all goods and treasure going to or from the islands. They were required to keep informed of the needs of the Indies, assemble and forward supplies, organize trading expeditions, and instruct and license pilots. Later on a professorship of cosmography was established for the purpose of instructing pilots, who were required to keep diaries of their voyages. This provision resulted in the accumulation of a vast amount of historical and geographical information in the government archives, much of which is still extant.
The Council of the Indies.—Spanish America was a possession of the sovereigns of Castile, as heirs of Queen Isabella, under whose patronage America had been discovered. At first, legislative and political matters relating to the Indies had been considered by the sovereigns in consultation with Fonseca and other personal advisors, but to supervise these matters a new board was gradually formed. In 1517 it was formally organized, among the members being Fonseca and Peter Martyr, the historian. In 1524 the board was reorganized as the Council of the Indies. This body was the supreme legislative and judicial authority, under the king, of Spanish-America. The Casa de Contratación was subordinate to the Council, which likewise supervised all civil and ecclesiastical appointments in the colonies. Usually some of the members of the Council had served in the Indies.
The governors-general and the audiencia.—Ovando ruled in Española until 1509, when Diego Columbus, son of Christopher, after a struggle for his hereditary rights, was made admiral and governor-general of the Indies. Complaint against Diego's administration led to the establishment at Santo Domingo of a superior court with appeals from the decisions of the governor-general. This was the germ of the Audiencia of Santo Domingo, which, for a time, was the administrative head of the greater part of the Indies. By decree of September 14, 1524, the Audiencia was formally established, with a president, four judges, a fiscal, a deputy grand-chancellor, and other officers.