Spain strictly controlled the trade through the Casa de Contratación based in Seville. By law, the colonies could trade only with the one designated port in the mother country.[6] Maritime archaeology has shown that the quantity of goods transported was usually much higher than that recorded at the Archivo General de Indias. Spanish merchants and Spaniards acting as fronts (cargadores) for foreign merchants resorted to contraband to transport their cargoes untaxed.[7] The Crown of Spain taxed the wares and precious metals of private merchants at a rate of 20%, a tax known as the quinto real (royal fifth).[8]
This monopsony lasted for over two centuries, in which Spain became the richest country in Europe.[9] The Habsburgs used the wealth to fight wars in the 16th and 17th centuries against the Ottoman Empire and with most of the major European powers. Due to inflation in the 17th century, the flow of precious metals from the Indies gradually damaged and depressed the Spanish economy.[10] Spain also lost any financial support from Europeans bankers by 1690.[11]
The exports' economic importance also declined with the drop of production of the American precious metals mines, such as Potosí.[12]
Numbering just 17 ships in 1550, the fleets expanded to more than 50 much larger vessels by the end of the century. By the second half of the 17th century, that number had dwindled less than half of its peak, with many of its remaining ships old and in poor repair.[13] As economic conditions gradually recovered from the last decades of the 17th century, the fleet operations slowly expanded again, once again becoming prominent during the reign of the Bourbons in the 18th century.[14]
Despite the general perception that many Spanish galleons were captured by English or Dutch privateers, few fleets were actually lost to enemies in the course of the flota's long career. Only Piet Hein managed to capture the fleet in 1628 and bring the whole cargo safely to the Dutch Republic.[17] In 1656 and 1657 Robert Blake destroyed the fleet, but the Spaniards saved most of the silver on board and the English admiral only managed to capture a galleon.[18] The 1702 treasure fleet was destroyed in the Battle of Vigo Bay when surprised at port, but the Spanish sailors had already unloaded most of its cargo.[19] None of this attacks took place in open seas. In the case of the Manila galleons, only four were ever captured by British warships: The Santa Anna by Thomas Cavendish in 1589, the Encarnación in 1709, the Covadonga by George Anson in 1743 and the Santísima Trinidad in 1762. Two other British attempts were foiled by the Rosario in 1704 and the Begonia in 1709.[20] These losses and those due to hurricanes were heavy economic blows when they occurred. The treasure fleets, however, must be counted as among the most successful naval operations in history.[21] Morover, from a commercial point of view, some key components of today's world economic system were made possible by the success of the Spanish treasure fleets.[22]
Wrecks of Spanish treasure ships, whether sunk in naval combat or by storms (those of 1622, 1715 and 1733 being among the worst), are a prime target for modern treasure hunters. Many, such as the Nuestra Señora de Atocha, have been salvaged.[23]
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