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Ferdinand and Isabella Economy (Attempts at fixing the economy (Passed…
Ferdinand and Isabella Economy
Industry and the Importance of Sheep
Mesta saw significant growth- sheepowners guild who drove their flocks across Castile following royally approved sheep paths in search for the best grazing
Catholic monarchs confirmed and extended their privileges reserving the best land for grazing which held back the production of arable crops- Spain couldn't feed itself in following century
Wool production boomed- with cities of old Castile such as Toledo benefiting as their principal industry was the production of cloth
Crown and Mesta's relationship strong- from 1500 president of Mesta member of royal council- monarchs used influence to maximise revenues from Servicio y montazgo, the tax paid by the guild
New rules for Mesta in 1511 increased royal privileges even further but forbidden to graze its sheep on land used as cornfields, vineyards, fruit tress, hay fields or other animals pastures
Misguided effort to protect domestic manufacturers- monarchs allowed guilds to restrict introduction of new production techniques- caused Spanish industry to fall further behind the rest of Europe- same true with other industries such as silverware, silk, leather and arms
Impact of Empire in the Americas
1492- Columbus claimed New World for Spain
New World started to yield some of its riches, and by the end of the reign, the first shipments of gold and silver, though quite small quantities were arriving in Spain
Another economic benefit was export of trade to the New World- initially settlers had very few resources they needed to settle and farm their colonies
Monarchs established Casa Del Contratacion (house of commerce) at Seville in 1504 to regulate trade between the New World and Spain
casa del Contratacion led to a century of immense expansion and prosperity of Seville which became one of Europe's foremost cities
Society, Population Growth and Poverty
Upward pressure on population recovering from the population of the Black Death- Growth did not slow down in Spain till the late 16th century
During Ferdinand and Isabella's reign population growth had not yet resulted in serious pressure on food supply
Castile sometimes able to export grain although Aragon generally forced to import food- crown tried to encourage peasants to grow more and bring land under cultivation
1480- Cortes of Toledo- announced all peasants would be able to change their lords, effectively creating free peasantry
1486- issued sentence of Guandalupe allowing peasants to sell their produce freely
Measures should have fostered arable production but food supply remained tenuous held back by a shortage of suitable land and vulnerable to bad weather and a poor harvest
Population growth and inflation from imported silver eroded wages of ordinary workers and pushed up the cost of living- led to social problems like begging, crime and mortality crisis
Crown and church did intervene in times of crisis, fixing food prices and purchasing grain abroad for distribution in Spain
Attempts at fixing the economy
Passed numerous ordinances to try regulate trade, promote economic welfare of their kingdom and people and reduce the barriers between the Spanish Kingdoms
128 economic measures enacted in Castile
Gold and silver exports banned
Navigation laws- restricted right of foreign merchant ships to carry goods to and from Spain and promoted Spanish ship building and shipping
Guilds instructed to maintain local roads and bridges to improve internal trade
Guilds instructed to maintain local roads and bridges to improve internal trade
Chambers of Commerce, set up in major towns and cities to encourage and regulate local trade
Foreign merchants were encouraged to settle and trade in Spain by 10 years of exemption from taxes
Ports such as Barcelona, greatest port in either Kingdom began to decline due to its exclusion from the Americas trade, together with the piracy in the Mediterranean and foreign competition from Italian cities like Genoa