CHAPTER V. 1589–1607.

In 1594, Philip the Second finding himself straitened for means to carry on the European wars in which he was engaged, recurred to the unfortunate and unjust system of forced loans to increase his revenue. He did not confine himself in this odious compulsory tax to the old world which was most concerned in the result of his wars, but instructed Velasco to impose a tribute of four reales or fifty cents upon Indians, in addition to the sum they already paid his majesty. Velasco reluctantly undertook the unwelcome task; but anxious to lighten the burden upon the natives as much as possible, and, at the same time, to foster the raising of poultry and cattle among these people, he compounded the whole tax of a dollar which they were obliged to pay, for seven reales, or eighty-seven and a half cents and one fowl, which, at that time, was valued at a single real, or twelve and a half cents. This, it will be perceived, was amiably designed by the viceroy, but became immediately the subject of gross abuse. The Indians are slowly moved either to new modes of cultivation or to new objects of care, even of the most domestic and useful character. Instead of devoting themselves to the raising of poultry with the industrious thrift that would have saved one-eighth of their taxation or twelve and a half per cent, they allowed the time to pass without providing the required bird in their homesteads, so that when the tax gatherer arrived they were forced to buy the fowl instead of selling it. This of course raised the price, and the consequence was that the Indian was obliged often to pay two or three reales more than the original amount of the whole taxation of one dollar! It is related that one of the oidores who had taken eight hundred fowls, reserved two hundred for the consumption of his house, and through an agent sold the rest at three reales, or thirty-seven and a half cents each, by which he contrived to make a profit of two hundred per cent. Various efforts were made to remedy this shameful abuse or to revoke the decree, but the system was found to be too profitable among the officials, to be abandoned without a severe struggle. We are unable to discover that the viceroy, in this instance, used his authority to restore the Indians to their original rights.