12th century
Castile was a kingdom that faced south.
Daily accounts were counted in maravedís.
WORDS
The Accounts of a Kingdom Facing South and Beyond the Sea
In the second half of the twelfth century, Castile struck gold coins with inscriptions entirely in Arabic. From this south-facing kingdom would later emerge the tax system imposed on the silver of the New World.
Castile's Accounts in 3 Minutes
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Second half of the 12th century
The writing on the gold coins minted by the king was all in Arabic.
From 1350
King Pedro I introduced the silver real.
1 real = 3 maravedís
15th century
Permission to mint money was given out freely, and the number of mints grew.
150
The number of mints according to one chronicle.
1496
A marriage united the royal family with the house of the lord of the Low Countries.
The Age of the New World
For silver from the New World, the king's share was decided from the start.
1504
A 1/5 tax on mined gold and silver. It was called the 'quinto'.
1/5
From the first collections
Records also tell of those who didn't pay the 1/5.
2In numbers
1/5
The 'quinto,' a tax on gold and silver from the New World. Established by a royal decree in 1504.
150mints
The number of mints in the 15th century, according to one chronicle.
3What would you do?
You are a king across the sea. How do you get your share of silver without ever visiting the New World?
Pick one
Place a fixed-rate tax on the mined silver.
The king placed a 1/5 tax called the 'quinto' on mined gold and silver. From the very beginning, a portion of every silver bar was meant for the king's treasury.
Leave it to the people there and have them pay you later.
Leaving it to them is risky. Records show that Cortés, despite having a refinery and a seal, did not pay the 1/5 to the king.
The origin of this 1/5 tax goes back to an old arrangement in medieval Castile.
4Read more
Gold Coins of a South-Facing Kingdom
Castile, on the Iberian Peninsula, was a kingdom that faced south. Daily accounts were reckoned in maravedís, a name inherited from Almoravid gold coins. In the latter half of the twelfth century, King Alfonso VIII struck gold maravedís in Toledo, but their inscriptions were entirely in Arabic.
Although it would become the core of the future Spain, no single country called 'medieval Spain' existed at the time. For example, Aragon to the east modeled its gold on Italian coinage, and even after the two monarchs married, their crowns, parliaments, and mints all remained separate.
One Hundred and Fifty Mints
Castile's monetary system changed over time. Peter I, who reigned from 1350 to 1369, introduced the silver real and set one real as equal to three maravedís.
Later, during the reign of Henry IV in the fifteenth century, minting permits were issued indiscriminately. One chronicle states that the number of mints in this period was one hundred and fifty.
Ledgers Joined by Marriage
The shape of the country was also shifted by marriage. In 1496, Philip the Handsome, from the ruling house of the Low Countries, married the Castilian princess Joanna. The Iberian royal house and the ruling house of the Low Countries were thus united.
Castile would eventually come to possess the silver of the New World. This marriage placed the Low Countries and the future silver empire of Spain onto the ledgers of the same house. Philip died suddenly in 1506, but the knot that tied the two houses together did not come undone.
The Fifth from Across the Sea
A portion of the silver ingots born from the furnaces of the New World had a predetermined destination from the start: the royal coffers. The Spanish Crown imposed the 'quinto', a one-fifth tax, on all mined gold and silver, as well as on the spoils of war. The king across the sea continued to receive his share of the wealth without ever setting foot in the New World.
This tax rate of one-fifth was established by a royal decree in 1504. Its origins lay in an old arrangement dating back to medieval Castile. However, this system was unstable from its very first collection. The records of Cortés's trial state that although he possessed a refinery, a seal, and a mint, he did not pay the fifth to the king.
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