C3207 Easy-to-understand (2/2)

The truth was extremely cruel. So the colony that he was in charge of turned out to be such a situation. According to one company, for example, it was a company that was about to go bankrupt.

In this era, European domination of the colonies was still very barbaric, backward, and cruel. Apart from the fact that Britain was interested in making a limited amount of investment in the colonies, the majority of the remaining European domination of the colonies was predominated by looting.

Especially the early colonists of Spain, the Portugal, the Netherlands and so on, they made a fortune by using trafficking in human beings and plundering resources as their main economic means.

After occupying the Philippines, the Spaniard had set her eyes on those resources that could be directly turned into wealth. Gold, silver, minerals, spices, rubber, precious stones … Especially non-renewable resources.

They plunder these resources and then transport them to Europe for sale, while collecting taxes on ships traded by sea and on the people of the colonies.

In the beginning, this primitive method of governance was still very effective. However, over the course of three hundred years, even the richest colony would not be able to withstand this kind of plundering.

The mines in the Philippines were drying up, and the production of gold and silver was increasing by the year!

There was also less business tax in Yuanyang, because there was a better market that could replace them, and the Chinese race had already appeared!

Non-renewable resources and trade taxes all fell sharply. They used to be 51% of the colonial government's income, but now they're down to 37%.

Worse still, the colonial administration was spending more and more on administration, the institutions were becoming more and more bulky, and there were too many people who were idle.

The worse the economy became, the worse the social order would become. This was inevitable!

And then the police would have to increase the number of policemen and soldiers, and that would be a huge expense!

This was how the financial crisis came about. Spending money like water was making less and less money, and the Spanish regular army could not even afford a rifle.

Xiang Ying sighed and took a small sip of the red wine, ”Dear Queen, now do you understand the seriousness of the problem? I'm telling you that a real Philippine is trying to show you that what we're saying is not a lie, but what really happened! ”

”The island you're ruling is really poor at the moment. The financial crisis is on the verge of bankruptcy!”

Just as the Queen was shocked, the female Attendant Su Shan retorted, ”What you said might be true, but under three hundred years of rule, the population of the Philippines has grown countless of times!”

”How much has the civil tax increased? What about renewable resources? Rubber fields, spice farms, grain industry... Isn't that enough to cover the deficit? ”

”Hehe, Mr. Xiang, your eloquence is really quite good. However, a wise Queen isn't so easily deceived!”

Hahaha … Xiang Ying laughed heartily, ”That's right, I will soon come to the most important question!”