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One of the books on Henry Morgan, it said Spain had galleons just filled with paperwork for its bureaucracy from the The Spanish Main.
A beggar had to have a license and this would be sent to Spain for confirmation.
Maybe the author was exaggerating to make a point but it always stuck.
It seems to be rather common among European countries. There's just so much authoritarian red-tape getting in the way of even the smallest request.
It's like just a few people hold on to all the power, and use it to oppress the masses.