IV. Trade and Commerce: the Period of Restrictions
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Hardly had wealth been created by the commerce of the first years after the conquest, when the policy of restriction found its strong supporters in the merchants of Cadiz and Seville, who, accustomed to monopolize the trade with America, looked with jealous eyes upon the rapidly growing prosperity of Manila, the new center of trade. The cotton and silk cloths from China were underselling in Mexico those coming from Spain and Peru, and a good deal of the silver was going, not to Spain, but to the East; hence, the long drawn-out rivalry between Manila, on the one hand, and Cadiz, and Seville, on the other, with America as a third party, also working for her own interest. This commercial activity was the phenomenon which dominated the Philippines for over two centuries, and had such marked influence upon its whole economic development.
Restrictions.
The galleon trade continued during the rest of the eighteenth century, until 1811 when the last galleon sailed from Manila, and 1815, when the final return voyage was made. The next period in the history of Philippine commerce is characterized by the opening of the country to foreign influence.
Effects of the galleon trade
Notes in this chapter
Note 1 · “Number 96. Distinctions in products from the islands, and their qualities with respect to those of España. “All these products that are traNote 2 · Ibid., pp. 98–104.Note 3 · Ibid., pp. 115–116.Note 4 · Ibid., pp. 120.Note 5 · Ibid., pp. 186–197.Note 6 · Ibid., p. 158.Note 7 · Ibid.Note 8 · Recopilación de Leyes, Lib. IX, Tit. XXXV, Ley VI. In Bl. and Rb., Vol. 17, pp. 30–31. Jan. 11, 1593.Note 9 · Ibid., Ley XV.—Bl. and Rb., Vol. 17, pp. 31–32. Jan. 11, 1593.Note 10 · Ibid., Ley XXXIV.—Bl.and Rb., Vol. 17, p. 32. Jan. 11, 1593.Note 11 · Ibid., Ley LXVIII.—Bl. and Rb., Vol. 17, p. 33. Jan. 11, 1593.Note 12 · La Libertad de Comercio, p. 49.Note 13 · Recopilación, Lib IX, Tit. XXXV, Leyes LXXIV, LXXV, and LXXVI.—Bl. and Rb., Vol. 17, pp. 42–44.Note 14 · Pedro Quiroga.Note 15 · Recopilación, ibid., Ley LXXVIII.—Bl. and Rb., Vol. 17, pp. 44–45.Note 16 · As to the effect of these restrictions Azcarraga says: “* * * thus, at the end of that century, there was nothing but poverty and discontentNote 17 · Extracto Historial, Antonio Alvarez de Abreu.—Bl. and Rb., Vol. 44, p. 231.Note 18 · Ibid., p. 236.Note 19 · Ibid., p. 232.Note 20 · Ibid., pp. 256–258. Also Azcarraga, La Libertad, pp. 58–59.Note 21 · Royal decree of October 27, 1720, enforcing that of 1718, provides further that: “The values of the lading which the said ships are to carryNote 22 · Ibid., p. 306.Note 23 · Extracto Historial, Antonio Alvarez de Abreu.—Bl. and Rb., Vol. 45, pp. 57–59.Note 24 · For a detailed list of the goods sent to Mexico, and as to what was done with them there, see Informatory Memorial addressed to the King, JuNote 25 · “The basis of it was, and is, the funds called “Obras Pías” (Pious Works). These are funds under various denominations, whose origin was theNote 26 · Zuñiga, Estadismo de las Islas Filipinas. Historia General de Filipinas, José Montero y Vidal, Chapter XXVIII.Note 27 · It is represented that the seamen are allowed to carry each 30 pesos’ worth of goods as a private investment, in order to encourage SpaniardNote 28 · Azcarraga, La Libertad, pp. 81–95.Note 29 · “This trade and commerce is so great and profitable, and easy to control—for it only lasts three months in the year, from the time of the arNote 30 · ”... This I say, then, Sire, that it is a most pitiable thing that there is not a man in all these Philippine Islands—Spaniard, or of any otNote 31 · Azcarraga: La Libertad, p. 68.Note 32 · “By this system for two centuries the South American market for manufactures was reserved exclusively for Spain, but the protection did not Note 33 · “Trade between America and the Far East all passed for a time through the port of Manila. This commerce was greatly desired by the Spanish cNote 34 · ”* * * All thrifty activity was regarded as despicable. No trader had a seat in the Cortes of Aragon. As late as 1781 the Academy of Madrid Note 35 · Before giving the various decrees passed from time to time to regulate this commerce, it is advisable to discuss the arguments advanced by tNote 36 · The continued protests of the Spanish merchants finally led to the prohibition of the shipment from New Spain to Perú or Tierra-Firme of ChiNote 37 · “Fortunately,” says Azcarraga,12 “that tyrannical provision, meeting with the opposition of the private interests, which it so greatly injurNote 38 · The rest of the seventeenth century found Manila still engaged in a great commercial controversy with the merchants of Spain; the endless nuNote 39 · Further petition from Manila resulted in the decreeing in 1702 that in the Philippine Islands two ships should be built, each of 500 toneladNote 40 · Induced by protests by Cadiz and Seville based on the ground that the galleons carried more cargo than allowed, and that the great abundanceNote 41 · More petitions came from Manila, and, finally, a royal decree of June 17, 1724, repealed that of 1720, and allowed once more the importationNote 42 · Before, however, going into the next period let us see who were entitled to participate in the galleon trade. The right to ship was known asNote 43 · What were the effects of the Manila-Acapulco trade upon the economic growth of the Philippines? There are two answers to this question. On tNote 44 · On the other hand, the galleon trade absorbed too much of the attention of the Spaniards,29 and caused the neglect of Philippine extractive Note 45 · Not everything, however, is to be attributed to the influence of the galleon trade; a good deal of the neglect of the country’s natural resoNote 46 · Towards the close of the eighteenth century there were events which indicated the coming of greater liberty. Direct communication was establ