ABSTRACT
The establishment of the absolute power of the Spanish crown made easy the adoption of the fundamental provision of Spain's American policy, namely, that Spanish America should be regarded and treated as directly subject to the king, and not to be controlled by the functionaries hitherto existing for the government of Spain. As a consequence of this fundamental fact of Spanish policy, the king was the most conspicuous functionary who exercised authority both in Spain and the Indies. The Company of Guipuzcoa was granted the privilege of trading with the province of Caracas from the port of San Sebastian. This was the only exception in the policy of exclusiveness till 1765. Then came a change through which other Spanish ports were opened to the American trade; and finally, in 1782, Spanish subjects or members of the colony of New Orleans were permitted to take cargoes from French ports, and return to these ports the wares of Louisiana and Western Florida.
