nThe
Spanish maintained Indian institutions that served their goals.
•In Mexico and Peru the traditional nobility, under Spanish
authority, presided over taxation and
labor demands.
nEnslavement of Indians, except in warfare, was prohibited by
the mid-16th century,
however, in place of slavery the government awarded encomiendas (land grants) to conquerors who used their Indians as a
source of labor and taxes.
nThe
harshness of encomiendas contributed to Indian population decline.
nFrom the 1540s the crown, not wanting a new American
nobility to develop, began to modify
the system.
nMost new
landowning nobles disappeared by the 1620s.
nThe
state continued to extract labor and taxes from Indians.
nThey
worked in mines and other state projects.
nMany Indians, to escape forced labor, fled their villages to
work for wages from landowners
or urban employers.