Revision of the Subsidy System In another effort to aid the province, the king and the Council of the Indies made significant changes in the subsidy system, the first since 1578. Aware of the governor’s economic problems, in March, 1702, Philip V ordered the annual situado paid from the sales taxes (alcabalas) of Puebla de los Angeles, a city situated southeast of Mexico City on the road to Vera Cruz. Administration of the subsidy was taken out of the viceroy’s hands and given to the Bishop of Puebla, who received authority to release the money and to buy the supplies requested annually by the Florida situadista. Under the new order at least half of every subsidy had to be paid in specie. To prevent delays in delivery of the situado, the agent was instructed to spend no more than six months in Puebla carrying out his duties. [Note: Cedula 3/8/1702] The bishop also had to remit annual 25% of the subsidy in specie over and above the total amount of each situado in order to retire the large debt owing Florida from past subsidies, an amount exceeding 400,000 pesos. [Note: king to royal officials of Mexico 1/13/1702] Several advantages apparently accrued to Florida as a result of the change. Since the annual income from the Puebla sales taxes was almost 140,000 pesos and the Florida subsidy was only 80,000 pesos, there was now a reliable, steady source of income for the subsidy. [Note: Consejo 8/29/1710] Prices were purportedly lower in Puebla than in Mexico City, and the journey to Vera Cruz was shorter and less costly than from the viceregal capital. For the king and the Council there may also have been hope that a religious official would administer the subsidy more equitably and more efficiently than the viceroy had done in the past. Finally established in 1707, the new system seemed at least a partial improvement over the old method. Ships carrying the subsidy from Puebla regularly entered the Saint Augustine harbor after 1707, bringing the Floridians their yearly quota of money and food. In ten years (to 1716), 912,290 pesos in specie and supplies left New Spain for Florida, an average of 91,229 pesos a year. [Note: gov of Cuba to king 1/20/1719] The payments added to the regular subsidy to retire the old debt also helped relieve the governor of his obligations to Cuban merchants, and despite Queen Anne’s War, economic conditions in Florida improved considerably. At the same time the viceroy’s debt diminished greatly. In 1703 (according to the governor) it was 456,959 pesos. By 1709 it amounted to 273,479 pesos [Note: royal officials of FL 8/17/1712] and had fallen to 211,290 pesos by 1714, evidence that the new system of repayment was operating efficiently. [Note: gov to king 4/24/1714] Reappearance of the Old Abuses Initially, Floridians were optimistic that the new method of securing the subsidy would end their economic woes, but it was not long before the old abuses reappeared. Although the Bishop of Puebla was more conscientious than the viceroy in releasing money and supplies, delivery was still irregular, and foodstuffs failed to improve in quality. Governor Corcoles reported in 1710... (Tepaske GSF)