II
Reading edition
Customhouse red tape.The customs inspection, and the many formalities which the native minor officials exercised without any consideration appear all the more wearisome to the new arrival when contrasted with the easy routine of the English free ports of the east he has just quitted. The guarantee of a respectable merchant obtained for me, as a particular favor, permission to disembark after a detention of sixteen hours; but even then I was not allowed to take the smallest article of luggage on shore with me.
Shelter for shipping.During the south-west monsoon and the stormy season that accompanies the change of monsoons, the roadstead is unsafe. Larger vessels are then obliged to seek protection in the port of Cavite, seven miles further down the coast; but during the north-east monsoons they can safely anchor half a league from the coast. All ships under three hundred tons burden pass the breakwater and enter the Pasig, where, as far as the bridge, they lie in serried rows, extending from the shore to the middle of the stream, and bear witness by their numbers, as well as by the bustle and stir going on amongst them, to the activity of the home trade.
Silting up of river mouth.In every rain-monsoon, the Pasig river sweeps such a quantity of sediment against the breakwater that just its removal keeps, as it seems, the dredging machine stationed there entirely occupied.
Discouragements for foreign ships.As, however, the principal wants of the colony were imported from England and abroad, these were either kept back till an opportunity occurred of sending them in Spanish vessels, which charged nearly a treble freight (from £4 to £5 instead of from £1½, to £2 per ton), and which only made their appearance in British ports at rare intervals, or they were sent to Singapore and Hongkong, where they were transferred to Spanish ships. Tonnage dues were levied, moreover, upon ships in ballast, and upon others which merely touched at Manila without unloading or taking in fresh cargo; and, if a vessel under such circumstances landed even the smallest parcel, it was no longer rated as a ship in ballast, but charged on the higher scale. Vessels were therefore forced to enter the port entirely devoid of cargo, or carrying sufficient to cover the expense of the increased harbor dues; almost an impossibility for foreign ships, on account of the differential customs rates, which acted almost as a complete prohibition. The result was that foreign vessels came there only in ballast, or when summoned for some particular object.
Laws drove away trade.These inept excise laws, hampered with a hundred suspicious forms, frightened away the whole carrying trade from the port; and its commission merchants were frequently unable to dispose of the local produce. So trifling was the carrying trade that the total yearly average of the harbor dues, calculated from the returns of ten years, barely reached $10,000.
The 1869 reform.A proof that the Spanish Ultramar minister fully recognizes and appreciates these circumstances appears in his decree, of April 5, 1869, which is of the highest importance for the future of the colony. It probably would have been issued earlier had not the Spanish and colonial shipowners, pampered by the protective system, obstinately struggled against an innovation which impaired their former privileges and forced them to greater activity.
Bettered conditions.The most noteworthy points of the decree are the moderation of the differential duties, and their entire extinction at the expiration of two years; the abrogation of all export duties; and the consolidation of the more annoying port dues into one single charge.
Prohibition of China trading.The first amount was afterwards increased to $300,000, with a proportionate augmentation of the return freight; but the Spanish were forbidden to visit China, so that they were obliged to await the arrival of the junks. Finally, in 1720, Chinese goods were strictly prohibited throughout the whole of the Spanish possessions in both hemispheres. A decree of 1734 (amplified in 1769) once more permitted trade with China, and increased the maximum value of the annual freightage to Acapulco to $500,000 (silver) and that of the return trade to twice the amount.
Higher limit on suspension of galleon voyages.After the galleons to Acapulco, which had been maintained at the expense of the government treasury, had stopped their voyages, commerce with America was handled by merchants who were permitted in 1820, to export goods up to $750,000 annually from the Philippines and to visit San Blas, Guayaquil and Callao, besides Acapulco.
British occupation inspired new wants.This concession, however, was not sufficient to compensate Philippine commerce for the injuries it suffered through the separation of Mexico from Spain. The possession of Manila by the English, in 1762, made its inhabitants acquainted with many industrial products which the imports from China and India were unable to offer them. To satisfy these new cravings Spanish men-of-war were sent, towards the close of 1764, to the colony with products of Spanish industries, such as wine, provisions, hats, cloth, hardware, and fancy articles.
Manila oppositions to trade innovations.The Manila merchants, accustomed to a lucrative trade with Acapulco, strenuously resisted this innovation, although it was a considerable source of profit to them, for the Crown purchased the Indian and Chinese merchandise for its return freights from Manila at double their original value. In 1784, however, the last of these ships arrived.
Subterfuges of European traders.After the English invasion, European vessels were strictly forbidden to visit Manila; but as that city did not want to do without Indian merchandise, and could not import it in its own ships, it was brought there in English and French bottoms, which assumed a Turkish name, and were provided with an Indian sham-captain.
The “Philippine Company” monopoly.In 1785, the Compañía de Filipinas obtained a monopoly of the trade between Spain and the colony, but it was not allowed to interfere with the direct traffic between Acapulco and Manila. The desire was to acquire large quantities of colonial produce, silk, indigo, cinnamon, cotton, pepper, etc., in order to export it somewhat as was done later on by the system of culture in Java; but as it was unable to obtain compulsory labor, it entirely failed in its attempted artificial development of agriculture.
Losses by bad management.The Compañía suffered great losses through its erroneous system of operation, and the incapacity of its officials (it paid, for example, $13.50 for a picul of pepper which cost from three to four dollars in Sumatra).
Trade free but port charges discriminating. In 1820 the direct trade between the Philippines and Spain was thrown open without any limitations to the exports of colonial produce, on the condition that the value of the Indian and Chinese goods in each expedition should not exceed $50,000. Ever since 1834, when the privileges of the Compañía expired, free trade has been permitted in Manila; foreign ships, however, being charged double dues. Four new ports have been thrown open to general trade since 1855; and in 1869 the liberal tariff previously alluded to was issued.
Galleon story sidelight on colonial history. The oft-mentioned voyages of the galleons betwixt Manila and Acapulco hold such a prominent position in the history of the Philippines, and afford such an interesting glimpse into the old colonial system, that their principal characteristics deserve some description.
Chinese part in galleon trade. In the days of Morga, towards the close of the sixteenth century, from thirty to forty Chinese junks were in the habit of annually visiting Manila (generally in March); towards the end of June a galleon used to sail for Acapulco. The trade with the latter place, the active operations of which were limited to the three central months of the year, was so lucrative, easy, and safe, that the Spaniards scarcely cared to engage in any other undertakings.
Favoritism in allotment of cargo space. As the carrying power of the annual galleon was by no means proportioned to the demand for cargo room, the governor divided it as he deemed best; the favorites, however, to whom he assigned shares in the hold, seldom traded themselves, but parted with their concessions to the merchants.
Profit in trade.Everything in this trade was settled beforehand; the number, shape, size, and value of the bales, and even their selling price. As this was usually double the original cost, the permission to ship goods to a certain amount was equivalent, under ordinary circumstances, to the bestowal of a present of a like value. These permissions or licenses (boletas) were, at a later period, usually granted to pensioners and officers’ widows, and to officials, in lieu of an increase of salary; these favorites were forbidden, however, to make a direct use of them, for to trade with Acapulco was the sole right of those members of the Consulado (a kind of chamber of commerce) who could prove a long residence in the country and the possession of a capital of at least $8,000.
Length of voyage.Voyages in these low latitudes were, owing to the inconstancy of the winds, extremely troublesome, and often lasted five months and upwards. The fear of exposing the costly, cumbrous vessel to the powerful and sometimes stormy winds of the higher latitudes, appears to have been the cause of these sailing orders.
Galleon’s size and armament.A galleon was usually of from twelve hundred to fifteen hundred tons burden, and carried fifty or sixty guns. The latter, however, were pretty generally banished to the hold during the eastward voyage. When the ship’s bows were turned towards home, and there was no longer any press of space, the guns were remounted.