Casa de Contratacion

The Casa de Contratación (Spanish pronunciation: [ˈkasa ðe kontɾataˈθjon], "House of Trade") was a government agency of the Spanish Empire, existing from the 16th to the 18th centuries, which attempted to control all Spanish exploration and colonization. Its official name was La Casa y Audiencia de Indias; it was established in the port city of Seville, Castile (Corona de Castilla).

Unlike the later East India Companies, chartered companies established by the Dutch, English, and others, the Casa collected all colonial taxes and duties, approved all voyages of exploration and trade, maintained secret information on trade routes and new discoveries, licensed captains, and administered commercial law. In theory, no Spaniard could sail anywhere without the approval of the Casa. However, smuggling often took place in different parts of the vast Spanish Empire.

The Casa de Contratación was founded by Queen Isabella I of Castile in 1503, eleven years after the discovery of the Americas in 1492. The Casa was the Spanish counterpart of the Portuguese organization, the Casa da Índia, or House of Índia of Lisbon, established in 1434 and destroyed by the 1755 Lisbon earthquake.

Dr. Sancho de Matienzo became the first treasurer, Jimeno de Bribiesca the first contador, and Francisco Pinelo the first factor. They soon controlled the economic development of Hispaniola.

A 20 per cent tax, the Quinto Real (Royal Fifth) was levied by the Casa on all precious metals entering Spain. The other taxes could run as high as 40% to provide naval protection for the trading ships or as low as 10 per cent during financial turmoil to encourage investment and economic growth in the colony. Each ship was required to employ a clerk to keep detailed logs of all goods carried and all transactions.

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