Spanish silver and fiscal brittleness

Estimated annual silver flows reached about 32 million pesos in 1600, and one galleon might carry as much as 2 million. The crown immediately claimed one-fifth through the quinto real and collected other taxes as well. Much of the wealth quickly left Spain to fund armies and buy foreign goods, so easy money discouraged domestic investment. Spain appeared rich while the bullion arrived, yet its fiscal structure became brittle when the flow was interrupted. Intercepting a convoy hurt the royal treasury and the military system built around continuing inflows.