Exploitation of the Indians
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.
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