y into the Pacific and reached the Philippines. In 1521 Cortez
completed the conquest of Mexico. Pizarro in 1532 added Peru, and shortly
afterwards Chile to the Spanish Empire.

From the gold mines of Chile and the silver mines of Peru a wealth of
bullion hitherto undreamed of poured into the treasuries of Spain. But no
treasuries, however full, could meet the demands of Phillip II. His
fanatical ambition had thought to dominate Europe and root out the newly
reformed religion which had already established itself in the greater
part of the north and west, and nowhere more firmly than among his
subjects in the Netherlands and among the English. England for years he
had seemed to hold in the hollow of his hand. The Dutch, at the beginning
of their great struggle for freedom, appeared even to themselves to be
embarking upon a hopeless task. Yet from their desperate struggle England
and Holland rose up two mighty nations full of genius for commerce and
for war, while Spain had already advanced far along that path of decline
which led rapidly to the extinction of her preeminence in Europe and the
loss of her colonies beyond the seas.

By the daring genius of Drake and the great English seamen of the age of
Elizabeth the field of operations was transferred from the Channel to the
American coast. The sack of Spanish towns and the spoil of treasure ships
enriched the adventurers, whose methods were closely akin to piracy, and
who rarely paused to ask whether the two countries were formally at war.
"No peace beyond the line" was a rule of action that scarcely served to
cloak successful piracy. In Spanish eyes it was, not without reason,
wholly unjustifiable.

The colonial policy of Spain was calculated to raise up everywhere a host
of enemies. In her mistaken anxiety to keep all the wealth of her
colonies to herself she prohibited the rest of the world from engaging in
trade with them. Only with her might they buy and sell. The result was
that a great smuggling trade sprang up. No watchfulness could defeat the
daring and ingenuity of the English, Dutch, and French sailors who
frequented the Caribbean Sea. No threats could prevent the colonists from
attempting to buy and sell in the market that paid them best. The
ferocious vengeance of the Spaniards, which in some cases almost
exterminated the population of their own colonies, converted the traders
into the Buccaneers, an association of sailors of all nations who
established th