 Spain : to exploit mineral resources and convert Indians to
Catholicism. The acquisition of gold and silver were the primary objectives of the Spanish government. Huge grants of land and
Indians residing on the land were given to prominent Spaniards, who then had a labor source to exploit at will. Mining required labor and the Native Americans were forced to provide the labor. The New
World also provided an outlet for impoverished, landless Spaniards, thereby relieving pressure at home. Spanish rulers justified their actions by bringing Christianity to the native populations. The majority of Spaniards who came to the New World were single men.
Thus, an extremely high level of intermarriage occurred. Between
1500 and 1650, 200 tons of gold and 16,000 tons of silver were shipped back to Spain. This tremendous wealth stimulated horrendous inflation which hurt the common people and funded long debilitating wars. Spain did not develop its own industries, but rather purchased products from other Europeans countries. Spanish gold ultimately financed the Industrial Revolution.
 England : to get in on the land grab and keep up with Spain and
France and for the joint-stock companies to realize a profit via agriculture and trade. Colonists also provided a market for English goods. Like Spain, England was also able to relieve population pressure and social unrest by encouraging the impoverished masses to seek their fortunes across the sea. Relationships with native populations were fine as long as the Indians did not interfere with the expansion of the colonists. Unfortunately, as the colonial population increased so did aggression toward the native populations. Little intermarriage occurred between the English and the Indians, since many families came to the New World together and many single women came alone as indentured servants.
 France : to establish trade, particularly in furs, and to convert the
Indians to Christianity. The fur trade was dependent upon close cooperation and a good relationship with the Indians. Forest runners
(coureurs de bois) paddled deep into the continent. French expansion was hindered by an indifferent monarchy which gave limited and sporadic support to royal officials stationed in New France. In addition, the harsh environment offered little incentive to peasants or

artisans looking for a new home. This led to under-population, especially in the Canadian territories. Considerably more French men came to the New World than women. Thus, there was a lot of intermarriage with native women.
 The most profound consequence of European exploration and colonization of the New World was the annihilation of the Indians.
Within the first 50 years of European contact with Indians, Smallpox and Measles decreased the population of the Native Americans from
25 million to 2 million.
 The Spanish and French come to the New World to make a fortune, and the English come to make a home.

Social Hierarchy in Latin America
1.
Peninsulars : Spaniards born in Spain
2.
Criollos/Creoles : Spaniards born in America
3.
Mestizos : people of Spanish and Indian heritage
4.
Mulattos : people of African and European heritage
Encomienda System
 Land grants were given to conquistadors and other Spaniards.
 Indians on the land supplied the landowner with labor and tribute.
Repartimiento
 All adult Indian males had to serve a required amount of time each year at Spanish mines, ranches, or public works projects.
Haciendas
 Large commercial agricultural estates.
 Indians received low wages and usually were in a situation of debt servitude.
Mercantile System
 Colonies were a source of raw materials and a captive market for exports from the mother country.
 Precious metals and food from L.A. were exchanged for manufactured goods from Spain (who got the goods from other countries).
 Trade was strictly regulated by the Flota System, wherein Spain shipped in and out of L.A. twice a year with fleets of 50+ ships.
Structured Political Hierarchy
 Two Viceroys: Mexico City and Lima
 Government positions were sold to the highest bidder.
 Officials would collect taxes and skim off a portion for themselves.
The Church was a powerful institution in Latin America.