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Gold and silver from the colonies financed the military capability of Habsburg Spain in its long series of Africa n and Europe an wars. For a while after the incorporation of the Portuguese Empire in 1580 (lost in 1640 ) until the end of the 18th Century , the Spanish Empire was the largest by territory, even though Spain suffered declining and fluctuating military and economic fortunes from the 1640s . Confronted by the new experiences, difficulties and suffering created by empire-building Spanish thinkers formulated some of the first modern thoughts on Natural Law , Sovereignty , International Law , War , and Economics — and were to even question the legitimacy of Imperialism — in related schools of thought referred to collectively as the School Of Salamanca .