Note 18 — III. Trade and Commerce at the Time of Discovery and Conquest

It was the goods that were imported into Manila by the Oriental traders, especially the Chinese, that formed the bulk of the commerce between the Philippines and New Spain. The only products of Philippine industry dealt with in the so-called galleon trade were gold, cotton cloth, mendriñaque, and cakes of white and yellow wax.18 By buying from the Oriental traders their merchandise, and sending them to Mexico, the Spaniards in the Philippines made fabulous profits. It is due to this trade that those engaged in it amassed great wealth in a short time, and Manila became a great distributing center of the East.19 The prosperity of Manila during the first years after the conquest is attributed to the fact that commerce was then unrestrained.20 To the same cause was due the settlement of many Chinese and Japanese and other Orientals in the country.21 To say, however, that the later restrictions upon commerce killed off all prosperity, would not be justified.22