Note 39 — Chapter V · THE SEMI-JUDICIAL AND ADMINISTRATIVE FUNCTIONS OF THE AUDIENCIA.

Theoretically, the juez de difuntos, acting through the oficiales reales, sent such money as he had collected to the Casa de Contratación of Seville, or, after June 18, 1790, the date of the extinction of that body, to the juez de arribadas in Cádiz.39 Thence it was distributed among the heirs in various parts of Spain, or, in case no heirs were found, it was to remain in a fund by itself, until otherwise appropriated or disposed of by the crown. The money was sent at the risk of the heirs, eighteen per cent of the gross amount being deducted to pay the costs of transfer.40 In actual practice, however, the funds derived from the Philippines were retained at Manila, itemized accounts of them being forwarded to Acapulco, the proper amount being deducted there from the annual subsidy.41 This rendered unnecessary the actual transfer of money. The juez de difuntos in Mexico received the funds from the Philippines, together with reports and accounts relating thereto, and remitted them to Spain. There occurred many instances in which this magistrate in Mexico found mistakes in the reports rendered by his subordinate in Manila. A great deal of criticism was made from time to time, of alleged irregularities in the administration of these funds in the Philippines; in fact, successive royal cédulas repeatedly charged the Philippine officials with maladministration.42 The general superintendent of finance, Aparici, in a report to the Council, stated on July 19, 1797, that these funds had never been properly accounted for, and that glaring defects—even dishonesty, had always existed.43 These faults, he alleged, were owing to the fact that the funds were not directly administered, but were paid into the treasury of Mexico, and that because of this roundabout method direct control could not be exercised. Although this high official pointed out these defects and made recommendations for the betterment of the service, no change was made, and the funds continued to be remitted to Mexico until 1815, when the suspension of the regular galleon eliminated the possibility of this practice.44