ABSTRACT
In early modern Europe, warfare in the seventeenth century had become increasingly naval, and the decision of governments to invest in large and permanent warfleets imposed a huge additional burden on top of the already draining military expenditure. Spain, seen through the eyes of its enemies, evoked images of fabulous wealth, a cornucopia of precious metals fed from Castile's possessions in the Indies. Financial exhaustion on all sides contributed to the ending of the long war with England in 1604, and to the truce of 1609-21 with the Dutch. Heated exchanges between the Councils of War and Finance persisted throughout the seventeenth century. Rivalry was heightened by competition for scarce resources. With warfare intensifying after the outbreak of hostilities with France in 1635, the shortage of ships became acute, threatening Spain's hegemony in Europe and the Indies.
