Final answer:
Spain's hesitance to agree with the U.S. in 1816 showed its fear of losing its New World Empire against the backdrop of Latin American revolutions and the desire to hold onto its territories, despite the earlier Treaty of San Lorenzo.
Step-by-step explanation:
The failure of Pinckney's Treaty of 1795 revealed that by 1816, Spain was struggling to maintain its New World Empire due to its reluctance to make concessions and its preoccupation with expanding its territory rather than addressing the concerns of the United States. The Treaty of San Lorenzo, as it was formally known, was an effort by Spain to address border disputes and navigation rights before Great Britain and the United States could potentially weaken Spanish claims in the Americas.
Nevertheless, the political factionalism within the U.S. continued unabated, and Spain's actions in 1816 demonstrated its ongoing fears of losing influence in the New World, especially in light of the revolutions happening in Latin America.