The persistent policy of Spain in the government of her South American possessions was to conserve trade exclusively for Spanish ships and Spanish merchants; and for this purpose several restrictions were imposed upon unauthorised foreign traders.

Nevertheless the inhabitants of these colonies urgently required more goods than were imported under such excessive limitations, and wanted to get them much cheaper than was possible while monopoly and heavy taxation prevailed.
There was, consequently, a tempting inducement to skippers who were sufficiently bold to take risks, to ship goods for Chili and Peru, and run them in at some place along the immense coast-line, evading the lazy eyes of perfunctory Spanish officials, or securing their corrupt connivance by bribes.

Contraband trade was, in fact, extensively practised, and plenty of people in the Spanish colonies throve on it.

As a modern historian writes: "The vast extent of the border of Spain's possessions made it impossible for her to guard it efficiently.

Smuggling could therefore be carried on with impunity, and the high prices which had been given to European wares in America by the system of restriction, constituted a sufficient inducement to lead the merchants of other nations to engage in contraband trade."* The profits from success were great; but the consequences of detection were disastrous.