During the colonial period, Spain pursued a mercantilist economic policy in its American colonies, seeking to maximize its economic benefits and minimize the outflow of wealth from the colonies. The Spanish mercantilist administration in colonial Spanish America was characterized by several key features.
First, the Spanish government maintained a strict monopoly over trade with the colonies. Spanish merchants were the only ones allowed to trade with the colonies, and they had to operate through a system of licenses and permits issued by the Spanish crown.
Second, the Spanish government implemented a system of "encomienda" and "mita," which required indigenous people to work in mines and on plantations. This system was meant to ensure a steady supply of labor for the Spanish colonists and to extract valuable resources from the colonies.
Third, the Spanish government established a system of royal monopolies over key products, such as tobacco and cocoa. These monopolies allowed the Spanish crown to control the prices of these products and to extract a large share of the profits.
Fourth, the Spanish government implemented a complex system of taxation and tribute, which further drained resources from the colonies. Taxes were levied on a wide range of goods and services, including food, clothing, and housing.
Fifth, the Spanish government closely regulated the production and sale of goods in the colonies. Production was limited to certain goods, such as textiles and agricultural products, which were meant to meet the needs of the Spanish empire.
Overall, the Spanish mercantilist administration in colonial Spanish America was designed to extract as much wealth as possible from the colonies and to maintain strict control over the colonial economy. While this system generated significant wealth for the Spanish empire, it also contributed to widespread poverty and exploitation in the colonies, and ultimately contributed to the collapse of Spanish colonial rule in the Americas.