From early in the Caribbean phase the crown had established the Casa de Contratación, or board of trade, in Sevilla, apparently originally intended to operate the entire overseas enterprise on an Italian model. In fact, it soon became a customs and emigration office, involved also in the organization of Atlantic convoys. Direction of the governmental aspect of overseas life went to a royal council constituted much like others, the Council of the Indies (as the Spaniards continued to call America), which issued decrees, heard appeals, and above all made appointments to high offices. Distances were such that almost everything governmental depended on the officials actually in America.
During the conquest and immediately thereafter, royal government was nominal in the sense that the governor was invariably merely the leader of the conquering expedition. But in the central areas, with the rivalries and wars among the conquerors and continued strong Spanish immigration, the royal government was soon able to install its own institutional network, with the support of many local Spaniards. As stated earlier, before 1550 both Mexico and Peru had a viceroy and an audiencia, based in the respective capitals, and some secondary audiencias followed; there were substantial treasury offices as well, for the crown’s most urgent interest in the new areas was getting silver revenue. A host of lawyers and notaries assembled in the capitals around these nuclei and their branches in the secondary Spanish cities. The viceroys brought with them retinues including an element of high nobility. Marriage alliances and business deals soon brought the officials into connection with the more important encomenderos.
Church organizations, which in the Spanish scheme of things were part of the overall governmental framework (the crown appointed bishops and many other high officials of the church), also came into the central areas in force on the heels of the conquest. Few clerics of any kind were with the actual conquering expeditions, but soon parties of friars arrived. They were followed by bishops and cathedral chapters, established first in the capitals and then in secondary cities; the culmination of the process was the seating of archbishops in Lima and Mexico City. Both the friars and the priests began to penetrate the countryside, operating through the encomiendas, with the ideal (long unrealized) of having one cleric for each encomienda. Like the governmental officials, ecclesiastics were closely connected with the civil society; some were appointed in the first place because of family connections, and many tried to marry female relatives to encomenderos.
These institutions were an important part of the general scheme, but they depended on local Hispanic civil society and reflected its relative strength or weakness. Governmental and ecclesiastical hierarchies were as urban-oriented as all other aspects of Spanish society; they were based in the cities, above all the largest cities, where one could find not only the largest concentrations of personnel but all those of high rank. The religious orders were a partial exception, rotating their members frequently; nevertheless, the most famous figures spent the bulk of their lives in larger centres. As for the government, it hardly existed outside the cities; the local magistrates who gradually came to be appointed in the Indian areas were mainly laymen, often unsuccessful candidates for encomiendas.
In the aftermath of the conquests, as they became integrated into the local situation, some ecclesiastics began to criticize Spanish institutions, especially the encomienda. However, the various representatives of the church were not entirely unified. The secular clergy said little; among the orders, the pragmatic Franciscans wanted a higher moral tone and better treatment of the Indians but were prepared to work through the encomienda; the more doctrinaire Dominicans, of whom Bartolomé de las Casas was the most famous and most persistent, spoke for the total abolition of the encomienda, with the clergy to be in charge of the Indians. At the same time, the Spanish royal government was seeking to find ways to increase its authority and in alliance with the Dominicans passed antiencomienda legislation. Resistance among the settlers and conquerors was fierce (the greatest of the Peruvian civil wars was in direct reaction to the strongest legislation, the New Laws of 1542). But in combination with other factors (of which indigenous population loss and the presence in the central areas of many non-encomenderos were the most essential), in the course of the 16th century the encomienda lost its labour monopoly and had its tribute in kind curtailed, while many encomiendas without legal successors reverted to direct crown administration.
The conquerors and early settlers produced a large number of histories describing and praising their exploits. The ecclesiastics, as they came in, began to write similar documents about their own activities, but they also went much further. Some, with the Franciscans most prominent, showed a strong interest in the study of indigenous history, language, and culture; others, especially the Dominicans, wrote in a more polemical spirit; and sometimes the two currents converged. The arts of literacy were much prized by the upper levels of the Spanish population, and universities, mainly for professional training, were soon established in the viceregal capitals. Trunk lines
Not only were the central areas different from the fringes in early Latin America, but important distinctions existed within the central areas themselves. In some ways the centre was more a line than a region—that is, a line from Atlantic port to capital to mines, along which European people and products flowed in and silver flowed out. For Mexico, the line went from Veracruz to Mexico City and on to Zacatecas and other mines of the north. In the more complex Peruvian scheme, the line went from the Isthmus of Panama to Lima and on to Potosí. It was along these routes that the Spanish and African populations concentrated, that social, economic, and governmental institutions were first created, then gelled and thickened, and that cultural and social change proceeded most quickly. Postconquest indigenous society
Although the majority of the indigenous population continued to live in their traditional units across the countryside, their lives were nonetheless profoundly affected by the conquest and its aftermath. The most obvious development was drastic demographic loss; in a process marked by periodic large epidemics, the population declined through the 16th century and on into the 17th century to a small fraction (impossible to determine with precision) of its precontact size. Only in hot, low-lying areas, such as the Peruvian and Mexican coastal regions, however, were losses as disastrous as those of the Caribbean islands. The peoples of the temperate highlands, however much they may have diminished in numbers, survived in the sense of retaining their local units, their language, much of their cultural heritage, and the essence of their social organization.
The Nahuas of central Mexico are the people whose postconquest experience is best understood because of the voluminous records they produced in their own language. These records reveal that the Nahuas were not overly concerned with the Spaniards or the conquest, which seemed to them at first much like earlier conquests; they remained preoccupied to a large extent with their internal rivalries. The local state, the altepetl, with its rotating constituent parts, remained viable as a functioning autonomous unit and as bearer of all major Spanish structural innovations, not only the encomienda but also the parish and the indigenous municipality. The Nahuas accepted Christianity and built large churches for themselves, but those churches had the same function as preconquest temples, acting as the symbolic centre of the altepetl, and the saints installed in them had the same function as preconquest ethnic gods. The status and duties of the commoners remained distinct from those of the nobles, who manned the local Hispanic-style government of the altepetl as they had filled offices in preconquest times.