All of the conquered land was turned into colonies. Spain set up the Council of Indies to pass laws concerning these colonies. For each area, though, a viceroy (representative to rule in the king's name) was appointed. It was Spain that closely controlled all economical activities, especially trade. Silver and gold were the most valuable commodities traded from the colonies to Spain. The colonists exported all of the raw materials to Spain, and they were only allowed to purchase manufactured goods from Spain. The Catholic Church worked closely with the government to convert the natives. Not only were natives forced to convert, but there was also a strict encomienda system. This enabled the Spanish the right to demand labor and/or tribute from the natives. The settlers used it to force the natives to work under deplorable conditions. Bartolome de Las Casas was a priest who saw the inhumanities of this system and forced the Spanish king to pass New Laws of the Indies, which forbade enslavement and abuse of natives. However, Spain was too far away to strictly enforce these rules. Most of the natives became peons, which were workers forced to labor to pay off a debt.
Colony
A group of people of one nationality or ethnic group living in a foreign city or country