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Indigenous attacks on caravans continued and San Miguel became an important military and commercial site.To quell these attacks as well as rebellions against Spanish colonization.
The viceroy in Mexico City granted lands and cattle to a number of Spanish to have them settle the area.Hidalgo took a standard bearing an image of the Virgin of Guadalupe from here to use as a symbol.While there was no other military action in the area, economically the town waned as agriculture suffered and the population declined.It was refounded both as a mission and as a military outpost.The new site was just northwest of the old one at a place with two fresh water springs (called Batan and Izcuinapan) and with terrain better suited for defense.The Spanish called it San Miguel el Grande and sometimes San Miguel de los Chichimecas.
A Franciscan friar, Juan de San Miguel, was a Spanish missionary who successfully - and finally - converted the fierce and indomitable natives with benevolence and the Christ and cross.
Both were involved in a conspiracy against the colonial government in Mexico City, along with Miguel Hidalgo y Costilla and Josefa Ortiz de Domínguez.
When this conspiracy was discovered, the warning to Hidalgo and Allende passed through this town and onto Dolores (Hidalgo) just to the north.
He also gave indigenous groups limited self rule and excused them from taxation.
Eventually, major roads would connect the town with the mining communities in San Luis Potosí as well as Zacatecas and the rest of the state of Guanajuato. The town's apogee came during the transition period between Baroque and Neoclassical architecture and many of the mansions and churches have both influences.
This prompted Hidalgo's "Grito de Dolores" assembling the insurgent army on 15 and 16 September 1810.