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Official hearings were held in 1602 to decide the fate of St. Augustine
- keep it, move it or abandon it? The decision was to keep the colony
where it was, as a haven for shipwreck victims and a strategic military
position against the ever-increasing threat of pirates preying on
the Spanish treasure fleets. The arrival of the energetic Governor
Mendez de Canzo inspired several urban improvements, including the
formal establishment of a plaza and market, a hospital, a horse-drawn
grist mill and a new block of residence lots on the south end of
the town.
Nevertheless, throughout much of the seventeenth century St. Augustine
was even more isolated, impoverished and neglected by the Spanish
crown than it has been in the previous century. Wars in Europe,
threats from other European powers to Spain's American holdings,
and the loss of several treasure fleets through piracy and disasters
made St. Augustine very low on the fiscal priorities of the Spanish
crown.
The situado (government subsidy of food, goods and money paid from
the Mexican treasury) fluctuated from year to year, and sometimes
was interrupted by pirates and shipwrecks. Most of the economic
activity in Florida took place outside of St. Augustine, on the
Franciscan mission frontier and the large farms and cattle ranches
in central and west Florida owned by prominent Spanish and criollo
families. The benefits of these endeavors rarely reached the residents
of St. Augustine, however, since most of the trade in the goods
from these estates was done illicitly with Havana via the Gulf of
Mexico.
Mission Indian uprisings, severe epidemics, pirate attacks and
the increasing threat of English occupation to the north also beset
the beleaguered inhabitants of the town. Life in St. Augustine was
still marked by sharp social and material divisions - government
officials for example suffered less than the enlisted soldiers,
farmers and their families. But in the atmosphere of isolation and
neglect, most people turned increasingly to a way of life that was
adapted to local Florida conditions.
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