Hernán Cortés and the first moratorium in Mexico.

 Hernán Cortés was not the first Spaniard to step into what is now Mexico. Others did it before, some of them remained stranded, and the rest went back to Cuba and informed about a great amount of gold. The governor of Cuba commanded Cortés to explore the new territory, rescue the stranders and collect gold, but nothing regarding conquering.[1]

Along with Cortés, other soldiers joined the Spanish armada, with their own effects (weapons, horses, medicines), usually bought at an increased price and on credit with usury interest rates. The soldiers' creditors and sellers relied on the promised gold that the soldiers could collect in the new land.

Once Cortés arrived in Mexico, he disobeyed the Cuban governor's orders, founded a new municipality called Veracruz, and received from it, on behalf and representation of the King of Spain, the authorization to conquer Mexico.

When the Mexican empire fell, Cortés carried out the collection of gold. The collected amount was not what was expected. The soldiers could not pay back their creditors and were heavily indebted. They were indebted even with doctors, who performed healings on credit.[2] A crisis among the soldier started. Some of them believed that Cortés hid the gold for himself.

Hence, Cortés issued an order providing that two judges would reduce the price of the goods and services sold on credit and that if the soldiers could not pay it on time, they would be entitled to a moratorium of two years.[3]

 


[1] Riva Palacio, V. (1976). México a través de los siglos (13th ed., Vol. 1). Editorial Cumbre.

[2] Diaz del Castillo, B. (2017). Historia verdadera de la conquista de la Nueva España. Porrúa.

[3] Riva Palacio, V. (1976). México a través de los siglos (13th ed., Vol. 2). Editorial Cumbre.

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