The flourishing Brazilian settlement of Santa Catharina was easily reduced, and, leaving it garrisoned, the fleet and army went on to the Plate. Colonia surrendered without resistance, and the army prepared to march northward and drive the Portuguese from all the coast as far north as Santa Catharina. Hardly was the advance begun, when news was received that peace between Spain and Portugal had been signed. The latter retained eastern Rio Grande, and Santa Catharina was restored, while Spain's title to Uruguay and the Missions was recognised.
Zeballos returned to Buenos Aires and actively engaged in the military and civil organisation of the new Viceroyalty. A fresh set of special regulations had been prepared in Spain, creating an elaborate hierarchy of executives. The chief provincial governors, now called "intendentes," were subject to the orders of the Viceroy in military matters, but as to taxation they were directly responsible to the Crown. They were entrusted with the paying of governmental employees, which gave them great influence with the Cabildos and functionaries.
The intention of the Spanish government was manifestly to enforce close relationship and greater subjection to the central authority at Madrid. In practice, however, the financial independence of the provincial governors stimulated the feeling of local independence, increased the influence of the Cabildos, and paved the way for the revolution.
Since 1765 the rest of South America had enjoyed the privilege of free commerce from the mother country. Now, the same rule was applied to Buenos Aires, and trade with Spain quickly attained respectable dimensions. In the five years from 1792 to 1796 more than one hundred ships made the voyage to Spain, and exports ran up to five million dollars annually. Buenos Aires became the entrepôt of the wine and brandy of Cuyo; the poncho and hides of Tucuman; the tobacco, woods, and matte tea of Paraguay; the gold and silver of Upper Peru; the copper of Chile; and even the sugar, cacao, and rice of Lower Peru. By the end of the century the population of the city was forty thousand. Thirty thousand more lived in the immediate vicinity; Montevideo had seven thousand, and the outlying settlements of Uruguay twenty-five thousand inhabitants. The civilised population of the Buenos Aires intendencia was about one hundred and seventy thousand, and in population and in wealth it had become easily the first among the eight great districts of the Viceroyalty.
