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    The territories that became part of the Spanish empire were called New Spain. It also included the Philippines, off the coast of southeast Asia.

    New Spain was governed as a viceroyalty, a province headed by a representative of the king or queen of Spain. Beginning in , its capital was Mexico City.

    During the colonial period, Spain claimed other territories in the New World in northern and western South America. Most of these holdings fell under the viceroyalty of Peru, which was administered separately from the viceroyalty of New Spain.

    Spain's mission to build an empire in the New World began with the expeditions of a Genoan seafarer named Christopher Columbus — , who convinced the Spanish royalty he could find a western route across the Atlantic Ocean to the Indies Asia.

    He sailed west in and six months later landed on islands in the Caribbean Sea. Columbus mistakenly concluded he had reached the Indies and brought news of his new route back to Spain.

    In , Amerigo Vespucci — , for whom the Americas were ultimately named, sailed far down the coast of South America. Vespucci proved what had long been suspected: Columbus had landed nowhere near Asia, but he had discovered an unknown continent—the New World.

    Spain was fast and effective in claiming its huge empire in the Americas. Its conquest of American natives happened within a few decades.

    Spanish conquistadors , or conquerors, destroyed the two most powerful civilizations of the New World, the Aztecs in present-day Mexico in and the Incas in Peru in After winning the battles, the conquistadors killed the leaders of each civilization and took over their leadership,.

    The Spanish sought wealth in the New World. They had found supplies of gold and silver but needed miners to extract the precious metals.

    They also established plantations, growing sugar and other crops, and needed farm workers. For labor, the new rulers initially relied on the encomienda system, a system of labor in which the Spanish government awarded individual conquistadors with the labor and goods of the native people of a region.

    Encomienda virtually enslaved the native people. Spain's arrival in the New World resulted in widespread death and depopulation for the native people of the Western Hemisphere.

    The conquistadors killed many Native Americans in raids and wars, and they also brought with them deadly epidemic diseases such as measles and smallpox.

    See Epidemics in the New World. In some tribes, the death rate reached 90 percent nine out of ten people died. This catastrophic death rate disorganized Native American cultures, wiping out political and religious leaders, family life, trade, farming practices, military defense, the arts, and other aspects of their social systems.

    The Spanish, still requiring laborers, began to import people kidnapped into slavery from Africa. The government of Spain profited greatly from its share of precious metals found in the New World.

    Historians estimate that between and Spain carried more than tons of gold and 16, tons of silver from New Spain to Europe.

    The extraction of gold during this period was about ten times more than that of all the rest of the world combined. Spain became one of the wealthiest and most powerful nations in the world.

    But in time, the imported metals caused economic inflation a major increase in general prices, while income or purchasing power remains the same in Spain.

    By the seventeenth century, the American metals were depleted and Spain's economy was in ruins. In New Spain, he appointed two separate audiencias courts that combined judicial, legislative, and administrative functions and then named a viceroy.

    The viceroy was the chief executive, but his powers were limited by the audi-encia. The government of New Spain drew on many Spanish traditions. Towns established cabildos town councils and were headed by local officials.

    In reality, there was considerable local self-government. Communication between Spain and the Indies was slow, and local royal officials were as likely to follow the desires of local rulers as they were to carry out the wishes of the Crown.

    However, twenty-first-century scholars have questioned this extreme portrait by looking at the limitations of viceregal power.

    With minimal resources to govern such a large territory, a viceroy could not arbitrarily impose his will. Academics have therefore studied how the government directed public rituals to symbolically establish the authority of the viceroy and the Spanish colonial state.

    The truth of the position probably lies between the two extremes. Beyond governance, some viceroys are also of consequence because they left behind important historical accounts.

    Antonio de Mendoza , — Luis de Velasco , — Barrios, Feliciano, ed. Berdan, Frances F. The Codex Mendoza. New York : Routledge, New Spain refers to Spanish possessions in the New World during the colonial period.

    The viceroyalty a province governed by a representative of the monarch of New Spain was governed from the capital at Mexico City beginning in The era of Spanish colonization began with the radical de-population of portions of the Western Hemisphere caused by the slaughter of the indigenous people by the Conquistadores and the mass deaths caused by epidemic disease, mostly measles and small pox.

    This traumatic de-population produced mortality rates as high as 90 percent. It was a catastrophe which disorganized the culture in ways which may only compare to the trauma of Middle Passage voyage below decks for the newly enslaved Africans.

    More than anything, the Spanish conquerors were intent on locating and removing precious metals — gold and silver — from the Aztec and Inca empires that they encountered.

    The mining of silver was accomplished by the enslaving of the native people, later supplemented by importing African slaves.

    This lust for gold and silver resulted in a ruinous inflation in Spain as the imported bullion suffused throughout the Spanish economy.

    The initial impact of the inflation was to raise the price of Spanish exports. This helped to destroy Spain's economy, especially its textile industry.

    Over several decades during the sixteenth century this inflation spread out to the rest of Europe. Since the economies of Europe were mostly experiencing healthy expansion, this somewhat milder wave of inflation did not have the same destructive impact on the rest of Europe as it did in Spain.

    Since the Spanish did not bring women with them they intermarried with the native peoples. The resulting mixture of parentage, plus the missionary efforts of the Catholic Church , produced a complex caste system and a creolized culture further complicated by the addition of African slaves to the population.

    The leaders of the Spanish forces of occupation sometimes installed themselves in almost feudal splendor based on the encomienda system of tribute in precious metal levied on the local villages.

    In a Mexican rebellion ended Spanish rule there and the colonial empire of New Spain was dissolved. By Spain had relinquished all its possessions in North America.

    During the colonial period Spain claimed other territories in the New World — in northern and western South America. Most of these holdings fell under the viceroyalty of Peru , which was administered separately from the viceroyalty of New Spain.

    Spain lost these possessions as well by the end of the s. Economic History. New Spain gale. Learn more about citation styles Citation styles Encyclopedia.

    New Spain The term New Spain refers to both a geographic space and a specific historical era. Jason L. New Spain, Viceroyalty of gale.

    Additional Bibliography Barrios, Feliciano, ed. John E. Encyclopedia of Latin American History and Culture. More From encyclopedia. About this article New Spain All Sources -.

    Updated About encyclopedia. Related Topics Spain. Spanish Empire. Spanish Exploration and Colonization.

    Spanish Borderlands. Empire in the Americas, Spanish. Spanish Participation in the American Revolution. New South.

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    New School University. New Sarum. New Romney. New River Gorge National River. New Spain and Spanish Colonization.

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    New Times Network Directory. Labor for the mines in the north of Mexico had a workforce of black slave labor and indigenous wage labor, not draft labor.

    With such diversity they did not have a common ethnic identity or language and rapidly assimilated to Hispanic culture.

    Although mining was difficult and dangerous, the wages were good, which is what drew the indigenous labor. The Viceroyalty of New Spain was the principal source of income for Spain in the eighteenth century, with the revival of mining under the Bourbon Reforms.

    The fast red dye cochineal was an important export in areas such as central Mexico and Oaxaca in terms of revenues to the crown and stimulation of the internal market of New Spain.

    Cacao and indigo were also important exports for the New Spain, but was used through rather the vice royalties rather than contact with European countries due to piracy, and smuggling.

    There were two major ports in New Spain, Veracruz the viceroyalty's principal port on the Atlantic , and Acapulco on the Pacific, terminus of the Manila Galleon.

    The ports were fundamental for overseas trade, stretching a trade route from Asia, through the Manila Galleon to the Spanish mainland.

    So then, the ships that set sail from Veracruz were generally loaded with merchandise from the East Indies originating from the commercial centers of the Philippines , plus the precious metals and natural resources of Mexico, Central America, and the Caribbean.

    However, these resources did not translate into development for the Metropolis mother country due to Spanish Roman Catholic Monarchy's frequent preoccupation with European wars enormous amounts of this wealth were spent hiring mercenaries to fight the Protestant Reformation , as well as the incessant decrease in overseas transportation caused by assaults from companies of British buccaneers , Dutch corsairs and pirates of various origin.

    These companies were initially financed by, at first, by the Amsterdam stock market , the first in history and whose origin is owed precisely to the need for funds to finance pirate expeditions, as later by the London market.

    The above is what some authors call the "historical process of the transfer of wealth from the south to the north. The Bourbon monarchy embarked upon a far-reaching program to revitalize the economy of its territories, both on the peninsula and its overseas possessions.

    The crown sought to enhance its control and administrative efficiency, and to decrease the power and privilege of the Roman Catholic Church vis-a-vis the state.

    The British capture and occupation of both Manila and Havana in , during the global conflict of the Seven Years' War , meant that the Spanish crown had to rethink its military strategy for defending its possessions.

    The Spanish crown had engaged with Britain for a number of years in low-intensity warfare, with ports and trade routes harassed by English privateers.

    Santiago de Cuba , St. Augustine Spanish Florida and Campeche and so with the loss of Havana and Manila, Spain realized it needed to take significant steps.

    The Bourbons created a standing army in New Spain, beginning in , and strengthened defensive infrastructure, such as forts.

    An important feature of the Bourbon Reforms was that they ended the significant amount of local control that was a characteristic of the bureaucracy under the Habsburgs, especially through the sale of offices.

    The Bourbons sought a return to the monarchical ideal of having those not directly connected with local elites as administrators, who in theory should be disinterested, staff the higher echelons of regional government.

    In practice this meant that there was a concerted effort to appoint mostly peninsulares , usually military men with long records of service as opposed to the Habsburg preference for prelates , who were willing to move around the global empire.

    The intendancies were one new office that could be staffed with peninsulares, but throughout the 18th century significant gains were made in the numbers of governors-captain generals, audiencia judges and bishops, in addition to other posts, who were Spanish-born.

    One of his early tasks was to implement the crown's decision to expel the Jesuits from all its territories, accomplished in Since the Jesuits had significant power, owning large, well managed haciendas, educating New Spain's elite young men, and as a religious order resistant to crown control, the Jesuits were a major target for the assertion of crown control.

    Croix closed the religious autos-de-fe of the Holy Office of the Inquisition to public viewing, signaling a shift in the crown's attitude toward religion.

    Other significant accomplishments under Croix's administration was the founding of the College of Surgery in , part of the crown's push to introduce institutional reforms that regulated professions.

    The crown was also interested in generating more income for its coffers and Croix instituted the royal lottery in Croix also initiated improvements in the capital and seat of the viceroyalty, increasing the size of its central park, the Alameda.

    Teodoro de Croix nephew of the former viceroy was appointed the first Commander General of the Provincias Internas, independent of the Viceroy of New Spain, to provide better administration for the northern frontier provinces.

    The crown also established a standing military, with the aim of defending its overseas territories. The Spanish Bourbons monarchs' prime innovation introduction of intendancies , an institution emulating that of Bourbon France.

    With broad powers over tax collection and the public treasury and with a mandate to help foster economic growth over their districts, intendants encroached on the traditional powers of viceroys, governors and local officials, such as the corregidores , which were phased out as intendancies were established.

    The Crown saw the intendants as a check on these other officers. Over time accommodations were made. For example, after a period of experimentation in which an independent intendant was assigned to Mexico City, the office was thereafter given to the same person who simultaneously held the post of viceroy.

    Nevertheless, the creation of scores of autonomous intendancies throughout the Viceroyalty, created a great deal of decentralization, and in the Captaincy General of Guatemala , in particular, the intendancy laid the groundwork for the future independent nations of the 19th century.

    Millions of pesos were given. The focus on the economy and the revenues it provided to the royal coffers was also extended to society at large.

    Economic associations were promoted, such as the Economic Society of Friends of the Country. Similar "Friends of the Country" economic societies were established throughout the Spanish world, including Cuba and Guatemala.

    The Bourbon Reforms were not a unified or entirely coherent program, but a series of crown initiatives designed to revitalize the economies of its overseas possessions and make administration more efficient and firmly under control of the crown.

    Record keeping improved and records were more centralized. The bureaucracy was staffed with well-qualified men, most of them peninsular-born Spaniards.

    The preference for them meant that there was resentment from American-born elite men and their families, who were excluded from holding office.

    The creation of a military meant that some American Spaniards became officers in local militias, but the ranks were filled with poor, mixed-race men, who resented service and avoided it if possible.

    The first century that saw the Bourbons on the Spanish throne coincided with series of global conflicts that pitted primarily France against Great Britain.

    Spain as an ally of Bourbon France was drawn into these conflicts. In fact part of the motivation for the Bourbon Reforms was the perceived need to prepare the empire administratively, economically and militarily for what was the next expected war.

    The Seven Years' War proved to be catalyst for most of the reforms in the overseas possessions, just like the War of the Spanish Succession had been for the reforms on the Peninsula.

    In , the Villasur expedition from Santa Fe met and attempted to parley with French - allied Pawnee in what is now Nebraska.

    Negotiations were unsuccessful, and a battle ensued; the Spanish were badly defeated, with only thirteen managing to return to New Mexico.

    Although this was a small engagement, it is significant in that it was the deepest penetration of the Spanish into the Great Plains , establishing the limit to Spanish expansion and influence there.

    The major action in the War of Jenkins' Ear was a major amphibious attack launched by the British under Admiral Edward Vernon in March against Cartagena de Indias , one of Spain's major gold-trading ports in the Caribbean today Colombia.

    Although this episode is largely forgotten, it ended in a decisive victory for Spain, who managed to prolong its control of the Caribbean and indeed secure the Spanish Main until the 19th century.

    Louisiana settlers, hoping to restore the territory to France, in the bloodless Rebellion of forced the Louisiana Governor Antonio de Ulloa to flee to Spain.

    The rebellion was crushed in by the next governor Alejandro O'Reilly , who executed five of the conspirators. The Louisiana territory was to be administered by superiors in Cuba with a governor on site in New Orleans.

    The 21 northern missions in present-day California U. Spain's long-held claims and navigation rights were strengthened and a settlement and fort were built in Nootka Sound , Alaska.

    Galvez's army consisted of Spanish regulars from throughout Latin America and a militia which consisted of mostly Acadians along with Creoles, Germans, and Native Americans.

    Galvez was angry that the operation had proceeded against his orders to cancel, and ordered the arrest and imprisonment of Francisco de Miranda , aide-de-camp of Juan Manuel Cajigal , the commander of the expedition.

    Miranda later ascribed this action on the part of Galvez to jealousy of Cajigal's success. These hopes ended when Spain was pressured into signing Pinckney's Treaty in New Spain claimed the entire west coast of North America and therefore considered the Russian fur trading activity in Alaska, which began in the middle to late 18th century, an encroachment and threat.

    Likewise, the exploration of the northwest coast by Captain James Cook of the British Navy and the subsequent fur trading activities by British ships was considered an encroachment on Spanish territory.

    To protect and strengthen its claim, New Spain sent a number of expeditions to the Pacific Northwest between and It was protected by an artillery land battery called Fort San Miguel.

    Santa Cruz de Nuca was the northernmost establishment of New Spain. It was the first European colony in what is now the province of British Columbia and the only Spanish settlement in what is now Canada.

    Santa Cruz de Nuca remained under the control of New Spain until , when it was abandoned under the terms of the third Nootka Convention.

    Its personnel, livestock, cannons, and ammunition were transferred to Nuca. The first Nootka Convention averted the war but left many specific issues unresolved.

    Both sides sought to define a northern boundary for New Spain. That treaty also ceded Spanish Florida to the United States.

    In the Declaration of Independence of the Mexican Empire , both Mexico and Central America declared their independence after three centuries of Spanish rule and formed the First Mexican Empire , although Central America quickly rejected the union.

    After priest Miguel Hidalgo y Costilla 's Grito de Dolores call for independence , the insurgent army began an eleven-year war.

    At first, the Criollo class fought against the rebels. The specter of liberalism that could undermine the authority and autonomy of the Roman Catholic Church made the Church hierarchy in New Spain view independence in a different light.

    In an independent nation, the Church anticipated retaining its power. Central America was originally planned to be part of the Mexican Empire; but it seceded peacefully in , forming the United Provinces of Central America under the Constitution of The Viceroyalty of New Spain united many regions and provinces of the Spanish Empire throughout half a world.

    In the Caribbean it included Cuba, Santo Domingo , most of the Venezuelan mainland and the other islands in the Caribbean controlled by the Spanish.

    The outpost at Nootka Sound, on Vancouver Island , was considered part of the province of California. The Viceroyalty was administered by a viceroy residing in Mexico City and appointed by the Spanish monarch , who had administrative oversight of all of these regions, although most matters were handled by the local governmental bodies, which ruled the various regions of the viceroyalty.

    First among these were the audiencias , which were primarily superior tribunals, but which also had administrative and legislative functions.

    Each of these was responsible to the Viceroy of New Spain in administrative matters though not in judicial ones , but they also answered directly to the Council of the Indies.

    Audiencia districts further incorporated the older, smaller divisions known as governorates gobernaciones , roughly equivalent to provinces , which had been originally established by conquistador-governors known as adelantados.

    Provinces which were under military threat were grouped into captaincies general , such as the Captaincies General of the Philippines established and Guatemala established in mentioned above, which were joint military and political commands with a certain level of autonomy.

    The viceroy was captain-general of those provinces that remained directly under his command. At the local level there were over two hundred districts, in both Indian and Spanish areas, which were headed by either a corregidor also known as an alcalde mayor or a cabildo town council , both of which had judicial and administrative powers.

    In the late 18th century the Bourbon dynasty began phasing out the corregidores and introduced intendants , whose broad fiscal powers cut into the authority of the viceroys, governors and cabildos.

    Despite their late creation, these intendancies so affected the formation of regional identity that they became the basis for the nations of Central America and the first Mexican states after independence.

    The Captaincy Generals were the second-level administrative divisions and these were relatively autonomous. With dates of creation:. As part of the sweeping eighteenth-century administrative and economic changes known as the Bourbon Reforms , the Spanish crown created new administrative units called intendancies.

    The intendencies aimed at strengthening Crown control over the viceroyalty and measures aimed to break the monopoly that local elites had in the municipal government in order to improve the economy of the empire, and other reforms including the improvement of the public participation in communal affairs, distribution of undeveloped lands to the Indians and Spaniards, end the corruption practices of the mayors, it also sought to favor handicrafts and encourage trade and mining, and establish a system of territorial division similar to the model created by the government of France , already adopted in Spain.

    These acted together with the general captaincies and the viceroyalties, they never changed the traditional administrative divisions, intendancies found strong resistance by the viceroyalties, general captaincies also found great rejection in the Iberian peninsula when it was adopted , royal audiencias and ecclesiastical hierarchs for its important intervention in economic issues, by its centralist politics and by its opposition to cede very much of their functions to the intendants, to whom they bound them with a crown absolutism; in this context there was the outbreak of the Revolution of Independence of the English colonies in North America , which forced to protest the central points of the reformist program in the Spanish Americas, because due to the war with England in which Spain participated, it was not convenient to apply for the moment drastic measures that would put at risk the financial support of the Spanish-American subsidies; all this prevented its full application.

    In turn, many of the intendancy boundaries became Mexican state boundaries after independence. The high courts, or audiencias , were established in major areas of Spanish settlement.

    In New Spain the high court was established in , prior to the establishment of the viceroyalty. The First Audiencia was dissolved and the Second Audiencia established.

    In the colonial period, basic patterns of regional development emerged and strengthened. The North was outside the area of complex indigenous populations, inhabited primarily by nomadic and hostile northern indigenous groups.

    With the discovery of silver in the north, the Spanish sought to conquer or pacify those peoples in order to exploit the mines and develop enterprises to supply them.

    Nonetheless, much of northern New Spain had sparse indigenous population and attracted few Europeans. The Spanish crown and later the Republic of Mexico did not effectively exert sovereignty over the region, leaving it vulnerable to the expansionism of the United States in the nineteenth century.

    Regional characteristics of colonial Mexico have been the focus of considerable study within the vast scholarship on centers and peripheries.

    The picture is far more complex, however; while the capital is enormously important as the center of power of various kinds institutional, economic, social , the provinces played a significant role in colonial Mexico.

    Regions provinces developed and thrived to the extent that they were sites of economic production and tied into networks of trade.

    Mexico City was the center of the Central region, and the hub of New Spain. The development of Mexico City itself is extremely important to the development of New Spain as a whole.

    It was the seat of the Viceroyalty of New Spain, the Archdiocese of the Catholic Church, the Holy Office of the Inquisition , the merchants' guild consulado , and home of the most elite families in the Kingdom of New Spain.

    Mexico City was the single-most populous city, not just in New Spain, but for many years the entire Western Hemisphere, with a high concentration of mixed-race castas.

    Significant regional development grew along the main transportation route from the capital east to the port of Veracruz.

    Alexander von Humboldt called this area "Mesa de Anahuac", which can be defined as the adjacent valleys of Puebla, Mexico, and Toluca, enclosed by high mountains, along with their connections to the Gulf Coast port of Veracruz and the Pacific port of Acapulco , where over half the population of New Spain lived.

    This challenge persisted during the post-independence years until the late nineteenth-century construction of railroads. In the colonial era and up until the railroads were built in key areas, mule trains were the main mode of transporting goods.

    Mules were used because unpaved roads and mountainous terrain could not generally accommodate carts. In the late eighteenth century the crown devoted some resources to the study and remedy the problem of poor roads.

    The Camino Real royal road between the port of Veracruz and the capital had some short sections paved and bridges constructed.

    The construction was done despite protests from some Indian villages when the infrastructure improvements, which sometimes included rerouting the road through communal lands.

    The Spanish crown finally decided that road improvement was in the interests of the state for military purposes, as well as for fomenting commerce, agriculture, and industry, but the lack of state involvement in the development of physical infrastructure was to have lasting effects constraining development until the late nineteenth century.

    Although the crown had ambitious plans for both the Toluca and Veracruz portions of the king's highway, actual improvements were limited to a localized network.

    Veracruz was the first Spanish settlement founded in what became New Spain, and it endured as the only viable Gulf Coast port, the gateway for Spain to New Spain.

    The difficult topography around the port affected local development and New Spain as a whole. Going from the port to the central plateau entailed a daunting meter climb from the narrow tropical coastal plain in just over a hundred kilometers.

    The narrow, slippery road in the mountain mists was treacherous for mule trains, and in some cases mules were hoisted by ropes.

    Many tumbled with their cargo to their deaths. Although New Spain produced considerable sugar and wheat, these were consumed exclusively in the colony even though there was demand elsewhere.

    Philadelphia, not New Spain, supplied Cuba with wheat. The Caribbean port of Veracruz was small, with its hot, pestilential climate not a draw for permanent settlers: its population never topped 10, European diseases immediately affected the multiethnic Indian populations in the Veracruz area and for that reason Spaniards imported black slaves as either an alternative to indigenous labor or its complete replacement in the event of a repetition of the Caribbean die-off.

    A few Spaniards acquired prime agricultural lands left vacant by the indigenous demographic disaster. Portions of the province could support sugar cultivation and as early as the s sugar production was underway.

    New Spain's first viceroy, Don Antonio de Mendoza established an hacienda on lands taken from Orizaba.

    Indians resisted cultivating sugarcane themselves, preferring to tend their subsistence crops. As in the Caribbean, black slave labor became crucial to the development of sugar estates.

    During the period — when Spain and Portugal were ruled by the same monarch and Portuguese slave traders had access to Spanish markets, African slaves were imported in large numbers to New Spain and many of them remained in the region of Veracruz.

    In the crown created a monopoly on tobacco, which directly affected agriculture and manufacturing in the Veracruz region.

    Tobacco was a valuable, high-demand product. Men, women, and even children smoked, something commented on by foreign travelers and depicted in eighteenth-century casta paintings.

    It also established a small number of manufactories of finished products, and licensed distribution outlets estanquillos. In during the Bourbon Reforms Veracruz became an intendancy , a new administrative unit.

    Founded in as a Spanish settlement, Puebla de los Angeles quickly rose to the status of Mexico's second-most important city. Its location on the main route between the viceregal capital and the port of Veracruz, in a fertile basin with a dense indigenous population, largely not held in encomienda, made Puebla a destination for many later arriving Spaniards.

    If there had been significant mineral wealth in Puebla, it could have been even more prominent a center for New Spain, but its first century established its importance.

    In it became the capital of an intendancy of the same name. It became the seat of the richest diocese in New Spain in its first century, with the seat of the first diocese, formerly in Tlaxcala, moved there in Merchants, manufacturers, and artisans were important to the city's economic fortunes, but its early prosperity was followed by stagnation and decline in the seventeenth and eighteenth centuries.

    The foundation of the town of Puebla was a pragmatic social experiment to settle Spanish immigrants without encomiendas to pursue farming and industry.

    It was located in a fertile basin on a temperate plateau in the nexus of the key trade triangle of Veracruz—Mexico City—Antequera Oaxaca.

    Although there were no encomiendas in Puebla itself, encomenderos with nearby labor grants settled in Puebla. And despite its foundation as a Spanish city, sixteenth-century Puebla had Indians resident in the central core.

    Puebla's Spanish town council cabildo had considerable autonomy and was not dominated by encomenderos.

    The administrative structure of Puebla "may be seen as a subtle expression of royal absolutism, the granting of extensive privileges to a town of commoners, amounting almost to republican self-government, in order to curtail the potential authority of encomenderos and the religious orders, as well as to counterbalance the power of the viceregal capital.

    Puebla built a significant manufacturing sector, mainly in textile production in workshops obrajes , supplying New Spain and markets as far away as Guatemala and Peru.

    Transatlantic ties between a particular Spanish town, Brihuega , and Puebla demonstrate the close connection between the two settlements.

    The take-off for Puebla's manufacturing sector did not simply coincide with immigration from Brihuega but was crucial to "shaping and driving Puebla's economic development, especially in the manufacturing sector.

    Although obrajes in Brihuega were small-scale enterprises, quite a number of them in Puebla employed up to workers. Supplies of wool, water for fulling mills, and labor free indigenous, incarcerated Indians, black slaves were available.

    Although much of Puebla's textile output was rough cloth, it also produced higher quality dyed cloth with cochineal from Oaxaca and indigo from Guatemala.

    In , Puebla became an intendancy as part of the new administrative structuring of the Bourbon Reforms. Mexico City dominated the Valley of Mexico, but the valley continued to have dense indigenous populations challenged by growing, increasingly dense Spanish settlement.

    The Valley of Mexico had many former Indian city-states that became Indian towns in the colonial era. These towns continued to be ruled by indigenous elites under the Spanish crown, with an indigenous governor and a town councils.

    The capital was provisioned by the indigenous towns, and its labor was available for enterprises that ultimately created a colonial economy.

    The gradual drying up of the central lake system created more dry land for farming, but the sixteenth-century population declines allowed Spaniards to expand their acquisition of land.

    One region that retained strong Indian land holding was the southern fresh water area, with important suppliers of fresh produce to the capital.

    The area was characterized by intensely cultivated chinampas, man-made extensions of cultivable land into the lake system.

    These chinampa towns retained a strong indigenous character, and Indians continued to hold the majority of that land, despite its closeness to the Spanish capital.

    A key example is Xochimilco. Texcoco in the pre-conquest period was one of the three members of the Aztec Triple Alliance and the cultural center of the empire.

    It fell on hard times in the colonial period as an economic backwater. Spaniards with any ambition or connections would be lured by the closeness of Mexico City, so that the Spanish presence was minimal and marginal.

    Tlaxcala, the major ally of the Spanish against the Aztecs of Tenochtitlan, also became something of a backwater, but like Puebla it did not come under the control of Spanish encomenderos.

    No elite Spaniards settled there, but like many other Indian towns in the Valley of Mexico, it had an assortment of small-scale merchants, artisans, farmers and ranchers, and textile workshops obrajes.

    Since portions of northern New Spain became part of the United States' Southwest region , there has been considerable scholarship on the Spanish borderlands in the north.

    The motor of the Spanish colonial economy was the extraction of silver. The region farther north of the main mining zones attracted few Spanish settlers.

    Where there were settled indigenous populations , such as in the present-day state of New Mexico and in coastal regions of Baja and Alta California , indigenous culture retained considerable integrity.

    The region did not have indigenous populations that practiced subsistence agriculture. From diverse cultural backgrounds and with no sustaining indigenous communities, these indios were quickly hispanized, but largely remained at the bottom of the economic hierarchy.

    Land owners lent workers money, which could be seen as a perpetual indebtedness, but it can be seen not as coercing Indians to stay but a way estate owners sweetened their terms of employment, beyond their basic wage labor.

    However, where labor was more abundant or market conditions depressed, estate owners paid lower wages. As with hacendados, renters produced for the commercial market.

    Many renters retained ties to the estates, diversifying their household's sources of income and level of economic security.

    Areas of northern Mexico were incorporated into the United States in the mid-nineteenth century, following Texas independence and the Mexican—American War —48 and generally known as the "Spanish Borderlands.

    The Presidios forts , pueblos civilian towns and the misiones missions were the three major agencies employed by the Spanish crown to extend its borders and consolidate its colonial holdings in these territories.

    The town of Albuquerque present day Albuquerque, New Mexico was founded in From , Jesuits established eighteen missions throughout the Baja California Peninsula.

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