Silk, corn, wine, and oil were furnished in profusion from these favoured regions, not that the inhabitants might enjoy life, and, by accumulating wealth, increase the stock of human comforts and contribute to intellectual and scientific advancement, but in order that the proprietor of the soil might feed those eternal armies ever swarming from the south to scatter desolation over the plains of France, Burgundy, Flanders, and Holland, and to make the crown of Spain and the office of the Holy Inquisition supreme over the world. From Naples and Sicily were derived in great plenty the best materials and conveniences for ship-building and marine equipment. The galleys and the galley-slaves furnished by these subject realms formed the principal part of the royal navy. From distant regions, a commerce which in Philip's days had become oceanic supplied the crown with as much revenue as could be expected in a period of gross ignorance as to the causes of the true grandeur and the true wealth of nations. Especially from the mines of Mexico came an annual average of ten or twelve millions of precious metals, of which the king took twenty-five per cent. for himself.

It would be difficult and almost superfluous to indicate the various resources placed in the hands of this one personage, who thus controlled so large a portion of the earth. All that breathed or grew belonged to him, and most steadily was the stream of blood and treasure poured through the sieve of his perpetual war. His system was essentially a gigantic and perpetual levy of contributions in kind, and it is only in this vague and unsatisfactory manner that the revenues of his empire can be stated. A despot really keeps no accounts, nor need to do so, for he is responsible to no man for the way in which he husbands or squanders his own. Moreover, the science of statistics had not a beginning of existence in those days, and the most common facts can hardly be obtained, even by approximation. The usual standard of value, the commodity which we call money—gold or silver—is well known to be at best a fallacious guide for estimating the comparative wealth—of individuals or of nations at widely different epochs. The dollar of Philip's day was essentially the same bit of silver that it is in our time in Spain, Naples, Rome, or America, but even should an elaborate calculation be made as to the quantity of beef, or bread or broadcloth to be obtained for that bit of silver in this or that place in the middle of the sixteenth century, the result, as compared with prices now prevalent, would show many remarkable discrepancies. Thus a bushel of wheat at Antwerp during Philip's reign might cost a quarter of a dollar, in average years, and there have been seasons in our own time when two bushels of wheat could have been bought for a quarter of a dollar in Illinois. Yet if, notwithstanding this, we should allow a tenfold value in exchange to the dollar of Philip's day, we should be surprised at the meagreness of his revenues, of his expenditures, and of the debts which at the close of his career brought him to bankruptcy; were the sums estimated in coin.

Thus his income was estimated by careful contemporary statesmen at what seemed to them the prodigious annual amount of sixteen millions of dollars. He carried on a vast war without interruption during the whole of his forty-three years' reign against the most wealthy and military nations of Christendom not recognising his authority, and in so doing he is said to have expended a sum total of seven hundred millions of dollars—a statement which made men's hair stand on their heads. Yet the American republic, during its civil war to repress the insurrection of the slaveholders, has spent nominally as large a sum as this every year; and the British Empire in time of profound peace spends half as much annually. And even if we should allow sixteen millions to have represented the value of a hundred and sixty millions—a purely arbitrary supposition—as compared with our times, what are a hundred and sixty, millions of dollars, or thirty-three millions of pounds sterling—as the whole net revenue of the greatest empire that had ever existed in the world, when compared with the accumulated treasures over which civilized and industrious countries can now dispose? Thus the power of levying men and materials in kind constituted the chief part of the royal power, and, in truth, very little revenue in money was obtained from Milan or Naples, or from any of the outlying European possessions of the crown.

Eight millions a year were estimated as the revenue from the eight kingdoms incorporated under the general name of Castile, while not more than six hundred thousand came from the three kingdoms which constituted Arragon. The chief sources of money receipts were a tax of ten per cent. upon sales, paid by the seller, called Alcavala, and the Almoxarifalgo or tariff upon both imports and exports. Besides these imposts he obtained about eight hundred thousand dollars a year by selling to his subjects the privilege of eating eggs upon fast-days, according to the permission granted him by the pope, in the bull called the Cruzada. He received another annual million from the Sussidio and the Excusado. The first was a permission originally given by the popes to levy six hundred thousand dollars a year upon ecclesiastical property for equipment of a hundred war-galleys against the Saracens, but which had more recently established itself as a regular tax to pay for naval hostilities against Dutch and English heretics—a still more malignant species of unbelievers in the orthodox eyes of the period. The Excusado was the right accorded to the king always to select from the Church possessions a single benefice and to appropriate its fruit—a levy commuted generally for four hundred thousand dollars a year. Besides these regular sources of income, large but irregular amounts of money were picked up by his Majesty in small sums, through monks sent about the country simply as beggars, under no special license, to collect alms from rich and poor for sustaining the war against the infidels of England and Holland. A certain Jesuit, father Sicily by name, had been industrious enough at one period in preaching this crusade to accumulate more than a million and a half, so that a facetious courtier advised his sovereign to style himself thenceforth king, not of the two, but of the three Sicilies, in honour of the industrious priest.

It is worthy of remark that at different periods during Philip's reign, and especially towards its close, the whole of his regular revenue was pledged to pay the interest, on his debts, save only the Sussidio and the Cruzada. Thus the master of the greatest empire of the earth had at times no income at his disposal except the alma he could solicit from his poorest subjects to maintain his warfare against foreign miscreants, the levy on the Church for war-galleys; and the proceeds of his permission to eat meat on Fridays. This sounds like an epigram, but it is a plain, incontestable fact.

Thus the revenues of his foreign dominions being nearly consumed by their necessary expenses, the measure of his positive wealth was to be found in the riches of Spain. But Spain at that day was not an opulent country. It was impossible that it should be rich, for nearly every law, according to which the prosperity of a country becomes progressive; was habitually violated. It is difficult to state even by approximation the amount of its population, but the kingdoms united under the crown of Castile were estimated by contemporaries to contain eight millions, while the kingdom of Portugal, together with those annexed to Arragon and the other provinces of the realm, must have numbered half as many. Here was a populous nation in a favoured land, but the foundation of all wealth was sapped by a perverted moral sentiment.

Labour was esteemed dishonourable. The Spaniard, from highest to lowest, was proud, ignorant, and lazy. For a people endowed by nature with many noble qualities—courage, temperance, frugality, endurance, quickness of perception; a high sense of honour, a reverence for law—the course of the national history had proved as ingeniously bad a system of general education as could well be invented.

The eternal contests, century after century, upon the soil of Spain between the crescent and the cross, and the remembrance of the ancient days in which Oriental valour and genius had almost extirpated Germanic institutions and Christian faith from the peninsula, had inspired one great portion of the masses with a hatred, amounting almost to insanity, towards every form of religion except the Church of Rome, towards every race of mankind except the Goths and Vandals. Innate reverence for established authority had expanded into an intensity of religious emotion and into a fanaticism of loyalty which caused the anointed monarch leading true believers against infidels to be accepted as a god. The highest industrial and scientific civilization that had been exhibited upon Spanish territory was that of Moors and Jews. When in the course of time those races had been subjugated, massacred, or driven into exile, not only was Spain deprived of its highest intellectual culture and its most productive labour, but intelligence, science, and industry were accounted degrading, because the mark of inferior and detested peoples.

The sentiment of self-esteem, always a national characteristic, assumed an almost ludicrous shape. Not a ragged Biscayan muleteer, not a swineherd of Estremadura, that did not imagine himself a nobleman because he was not of African descent. Not a half-starved, ignorant brigand, gaining his living on the highways and byways by pilfering or assassination, that did not kneel on the church pavement and listen to orisons in an ancient tongue, of which he understood not a syllable, with a sentiment of Christian self-complacency to which Godfrey of Bouillon might have been a stranger. Especially those born towards the northern frontier, and therefore farthest removed from Moorish contamination, were proudest of the purity of their race. To be an Asturian or a Gallician, however bronzed by sun and wind, was to be furnished with positive proof against suspicion of Moorish blood; but the sentiment was universal throughout the peninsula.

It followed as a matter of course that labour of any kind was an impeachment against this gentility of descent. To work was the province of Moors, Jews, and other heretics; of the Marani or accursed, miscreants and descendants of miscreants; of the Sanbeniti or infamous, wretches whose ancestors had been convicted by the Holy Inquisition of listening, however secretly, to the Holy Scriptures as expounded by other lips than those of Roman priests. And it is a remarkable illustration of this degradation of labour and of its results, that in the reign of Philip twenty-five thousand individuals of these dishonoured and comparatively industrious classes, then computed at four millions in number in the Castilian kingdoms alone, had united in a society which made a formal offer to the king to pay him two thousand dollars a head if the name and privileges of hidalgo could be conferred upon them. Thus an inconsiderable number of this vilest and most abject of the population—oppressed by taxation which was levied exclusively upon the low, and from which not only the great nobles but mechanics and other hidalgos were, exempt—had been able to earn and to lay by enough to offer the monarch fifty millions of dollars to purchase themselves out of semi-slavery into manhood, and yet found their offer rejected by an almost insolvent king. Nothing could exceed the idleness and the frivolity of the upper classes, as depicted by contemporary and not unfriendly observers. The nobles were as idle and as ignorant as their inferiors. They were not given to tournays nor to the delights of the chase and table, but were fond of brilliant festivities, dancing, gambling, masquerading, love-making, and pompous exhibitions of equipage, furniture, and dress. These diversions—together with the baiting of bulls and the burning of Protestants—made up their simple round of pleasures. When they went to the wars they scorned all positions but that of general, whether by land or sea, and as war is a trade which requires an apprenticeship; it is unnecessary to observe that these grandees were rarely able to command, having never learned to obey. The poorer Spaniards were most honourably employed perhaps—so far as their own mental development was concerned—when they were sent with pike and arquebus to fight heretics in France and Flanders. They became brave and indomitable soldiers when exported to the seat of war, and thus afforded proof—by strenuously doing the hardest physical work that human beings can be called upon to perform, campaigning year after year amid the ineffable deprivations, dangers, and sufferings which are the soldier's lot—that it was from no want of industry or capacity that the lower masses of Spaniards in that age were the idle, listless, dice-playing, begging, filching vagabonds into which cruel history and horrible institutions had converted them at home.