hilip II.'s time a vast portion of the real estate of
the country was held by the Church in mortmain; that forty-nine noble
families owned all the rest; that all great estates were held in tail;
and that the property of the aristocracy and the clergy was completely
exempt from taxation. Thus the accumulation and the diffusion of capital
were alike prevented; and the few possessors of property wasted it
in unproductive expenditure. Hence the fundamental error of Spanish
political economy, that wealth is represented solely by the precious
metals; an error which well enough explains the total failure, in spite
of her magnificent opportunities, of Spain's attempts to colonize the
New World. Such was the frightful condition of Spanish society under
Philip II.; and as if this state of things were not bad enough, the next
king, Philip III., at the instigation of the clergy, decided to drive
into banishment the only class of productive labourers yet remaining in
the country. In 1610, this stupendous crime and blunder--unparalleled
even in Spanish history--was perpetrated. The entire Moorish population
were expelled from their homes and driven into the deserts of Africa.
For the awful consequences of this mad action no remedy was possible. No
system of native industry could be created on demand, to take the place
of that which had been thus wantonly crushed forever. From this epoch
dates the social ruin of Spain. In less than a century her people were
riotous with famine; and every sequestered glen and mountain pathway
throughout the country had become a lurking-place for robbers. Whoever
would duly realize to what a lamentable condition this beautiful
peninsula had in the seventeenth century been reduced, let him study
the immortal pages of Lesage. He will learn afresh the lesson, not yet
sufficiently regarded in the discussion of social problems, that the
laws of nature cannot be violated without entailing a penalty fearful
in proportion to the extent of the violation. But let him carefully
remember also that the Spaniards are not and never have been a
despicable people. If Spain has produced one of the lowest characters
in history, she has also produced one of the highest. That man was every
inch a Spaniard who, maimed, diseased, and poor, broken down by long
captivity, and harassed by malignant persecution, lived nevertheless
a life of grandeur and beauty fit to be a pattern for coming
generations,--the author of a book which
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