Although the natives made a crude kind of coarse woolens prior to the time of the Conquest, the manufacturing of woolen goods did not begin in New Spain until the early fifteen forties. At that time the first viceroy, Antonio de Mendoza, laid the base of this industry in the new colony. Mendoza considered such an enterprise essential to lasting prosperity. He imported the merino, or fine wool, breed of sheep from Castile, and did everything possible to foster their growth. The viceroy had wide powers over local administration, and all matters pertaining to wool manufacturing were under his jurisdiction. Legislation regarding wool mills emanated from the crown; it was reissued by the viceroy; and its immediate execution was a cabildo function.
Licenses to establish textile mills could be granted only by the King through the mediation of the viceroy and audiencia. “None shall be founded in any way, nor for any cause, nor in any place, without my express license, or that of the viceroys …”