They are persuading your Majesty that the trade of these kingdoms with España is decreasing. I, Sire, feel differently, and am persuaded that never were the profits resulting from it greater; nor am I less certain that such result must necessarily follow, in this manner.
It was known in the beginning that neither wine nor olive oil was produced in Nueva España, but these were brought from Castilla. Inspired by the example of the profits made by some persons, all--especially the inhabitants of Andalucía--began to plant vineyards and olive-orchards. He who had esteemed any kind of trade a degradation twenty years before, now, with the incentive of sending away his crops, shipped greater cargoes than would a whole fair of merchants. Consequently, the ocean trade increased, in a short time, from at most fifty or one hundred casks of wine and a few more jars of olive-oil--carried by one or two vessels, unauthorized and without register--to cargoes which fill thirty or forty vessels, that sail annually in a trading fleet. The vessel in which this is received is earthen, and of limited capacity; and what was slowly filling it continued to increase. Now this vessel is full to the brim, but still they obstinately continue to pour in more. Is it not evident that what is more than enough to fill it must overflow, and be the same as lost?
Thus was the land conquered in Perú. True reports were published concerning its so great abundance of wealth--that it was considered easier and cheaper to arm men and shoe horses with silver than with iron; and that for one quire of paper ten pesos of gold were paid, for one cloth cloak one hundred pesos, and for one horse three or four thousand pesos. At this report, various kinds of merchandise were brought, and had a continual good outlet and sale; and they were taken in the necessary quantity. Years passed, and the treasure--which was too plentiful, because it was in possession of people who had no use for it--came into the hands of those who finally saw it disseminated through the world--and for this reason the share of each part is less. The account that should be taken of reason and common sense is forgotten, and men persuade themselves blindly that, since they get a thousand for five hundred, with one million they must make two: And as if they could expect the same profit from supplying necessity and from adding to abundance, they multiply their trading-fleets and double their investments. Is it not evident that if their shipments are in excess, their profits must fall short, and that the ratio between the two cannot be equal to what it was before? Let the records of the customs duties belonging to your Majesty be examined, where those who profit and those who lose pay on account of what they produce; and they will tell how not only the commerce has not declined, but also that rather, through its having increased so greatly, the danger of losing the invested money results.