Volume 44 — COMMERCE OF THE PHILIPPINES WITH NUEVA ESPAÑA

PERIOD III

18. On receiving this information, despatches were sent on June 5, 1697, to the viceroy and Audiencia of Mexico and to the governor and Audiencia of Philipinas, informing them that the said arrangement had been revoked and annulled, since it was contrary to what had been commanded by laws, decrees, and royal orders, and for many other serious and just reasons. Both of these governments were commanded to cause the publication of the revocation and annulment of the above arrangement, and were ordered to take especial care in the administration and careful collection of the duties which the merchandise in that traffic ought to contribute—most strictly observing the regulation that no more goods should go from those islands than amounted to 250,000 pesos, nor should more than 500,000 be allowed to go back as proceeds. Moreover, this commerce must be strictly confined to citizens born in Philipinas, and prohibited to those of Nueva España; for any goods which should be found belonging to the latter must be considered as confiscated, and those which should come outside registration, if they belonged to those islanders, must pay double duties. The declarations [manifestaciones] of these goods must be made within the limit of six hours, or at most of twelve, which was fixed as the utmost allowance of time. It was most strictly commanded that for the future they should no longer allow the declarations of [registered] merchandise which until then had been permitted, that the ships in that commerce should not exceed a burden of four hundred toneladas each, and that they must be the two which sailed each year to the port of Acapulco.

19. These orders having been received and published in Philipinas, the city and the merchants of Manila set forth the difficulties which were arising from the mode in which their trade was carried on. They entreated: first, that there should be only one ship in that trade, having a capacity of 1,200 toneladas, and not two, as had been decided; second, that the amount of 250,000 pesos, stated in the permission which had been granted them, should be increased; third, that in return should be brought back the entire amount which the merchandise should produce in Acapulco and the kingdom of Nueva España, and that it should not remain limited to the 500,000 pesos to which it had been restricted. They offered, for the regular voyage of each year, to make a contribution to the treasury [servir con] of 100,000 pesos, on account of the duties; and they asked that, when it should appear that these dues had been paid, neither the royal officials of Acapulco nor any other officials should meddle with the registration of the goods that were landed at the arrival of the ship, nor with the embarkation of the silver on its return voyage, but that both these should go free.

20. In order that the distribution of the lading-space which was made in these islands should be equitable, the decision was confirmed which in 1699 had been made by the governor of the islands at that time, commanding, in regard to the statement that this distribution was not made among the citizens, whose qualifications [for this] belonged exclusively to that city, that the municipality alone, without the intervention of any other official, must send the list of the citizens to the committee which met for this purpose; and that the said distribution should be made among the persons included in the above list of citizens, without that government or the Audiencia being allowed to have any discretionary power in this matter.

22. That in the Philipinas Islands two ships should be built, each of 500 toneladas burden, which should transport the goods permitted to that trade; that the citizens should be authorized to convey in these to Nueva España the amount of 300,000 pesos in their products and other commodities, and on the return to Philipinas to carry 600,000 pesos in silver, allowing 100 per cent gain minus the duties and expenses. Among other things which they were commanded to watch over for the regulation and observance of the said commerce are the following:

23. That the city of Manila should itself make the distribution for the lading of the two ships, without the intervention of any official.

24. That the merchants and those interested in the trade should present within a specified time-limit the commodities, invoices, and articles which they were to send to Nueva España; that these should be placed in the royal storehouses, and the estimate of their value be made. This must be done by the agreement of two persons of experience, deputed by the city and the trade, with royal officials and the fiscal of the Audiencia of Manila, and the fiscal must superintend the entire valuation. If any merchant should feel aggrieved in the enumeration he should go before the committee [of distribution], in order that his just rights might be guarded; and if the committee did not take care of this, he should have right of appeal to the Audiencia.

25. That he who had no goods to lade should not be allowed to give up his right in favor of a third person, but it should accrue to the rest, a new distribution of that part being made.

26. That the registration be made by the royal officials, with the assistance of the fiscal; that the goods shipped and their valuation should be carefully ascertained; and that the decisions of the officials, or a copy of them, be sent to Acapulco for the use of officials there.

27. That in Acapulco must be ascertained the quantity of silver which should be shipped on the return voyage, and, if the goods sold should perchance exceed the 600,000 pesos, they [i.e., the Manila owners] should not be allowed to take away the excess in silver, but [must take it] in goods.

28. That if the sale of the goods shall not fill this amount of 600,000 pesos of the permission, the merchants of Nueva España cannot under any pretext, no matter how just, make up the deficiency, or place in the ship the remaining amount of silver, for this was perpetually prohibited by his Majesty from the time when these orders were issued; and whatever might be done in contravention of these should be punished with special severity. For it had been learned that under this pretext those born in Nueva España or resident there were steadily introducing their trade into Philipinas, thus causing most serious losses to the royal treasury, and bringing that commerce to the state which was acknowledged, with great detriment to the trade of España. In regard to this matter the viceroy was charged to devote himself with the utmost activity to the strictest fulfilment of this order, without overlooking the slightest thing.

30. That thenceforth should likewise be prohibited the acceptance of declarations of goods [manifestaciones], nor should they for any reason be accepted, even if his Majesty should lose the double duties that belong to them, since on no account would he allow them to be tolerated.

32. That in the enumeration of the traders should be included the Spaniards born in the country, and the military men stationed in the port of Cavite; and these might engage in that traffic—excluding, however, ecclesiastical ministers, whether secular or regular, and those who were foreigners to those Philipinas Islands.

33. That the master of each ship must make a book containing the freight list, and present it with the aforesaid documents at Acapulco to the castellan who governs that port and the royal officials, for the discharge of cargo. At the same time he must carry a duplicate of all these documents, to be sent to the viceroy as soon as they arrived, in order that he might examine them and communicate with the tribunal of accounts, in which a copy of it must be made to send to the Council.

34. As soon as the ships should anchor in Acapulco the castellan and royal officials of that port should station the guards necessary to avoid the concealment of goods or their clandestine introduction, causing the ship to be lightened and its cargo landed with the utmost promptness, and collecting the established duties or securing them by the goods themselves, according to the usage up to that time.

35. That when the goods had been landed and the amounts registered had been ascertained, the ships should be inspected; and whatever else was found therein should be regarded as confiscated, without allowing therein any claim or remonstrance. Half of the goods confiscated should be applied to the royal treasury, and the rest in two parts to the judge and the informer—excepting in the case when the value of confiscated goods should reach 50,000 pesos; for then the viceroy and the royal court of Mexico must allot to the judge and the informer such quantity as should be proper, leaving to the decision of the judges other penalties in accordance with the guilt of the offenders.

36. His Majesty having agreed to the proposals made by the Council, they issued on August 12, 1702, despatches in accordance therewith, to the governments of Nueva España and Philipinas, informing them of the regulation herein explained, and commanding them both to observe it strictly and inviolably. In consequence of this, the governor of Philipinas, in letters of June 21, 1705, and May 24, 1708 (in which he acknowledged the receipt of the despatch sent to him), reported that he had carried the decree into execution, and had made it known to the merchants in the city of Manila, who had offered to make good the burdens of expense which would ensue if the two ships of 500 toneladas each were immediately built according to this command—in view of the fact that there were two galleons and one patache in the ports there; of these one might serve eight years, and the other a little less, and the patache four. For this reason the governor had commanded that the building of the two ships should be suspended until those which were then in use should be worn out.

37. That also it had been regarded as impracticable that the valuation of the cloth and wares which were to be traded should be made through the actual examination of the bales and their other goods, and that this should be carried out in the royal storehouses—considering that the crowded condition of those buildings, and the risk of thefts, fires, and other accidents, did not permit this method to be practiced, as was commanded by the decree that has been cited.

38. That to this was added that, as the Chinese do not gather at the fair [at Manila] until the end of May in each year, and the ships sail from those islands toward the end of the following June, the royal officials were unable in so short a time as one month to attend to the aforesaid examination, and to undertake the despatch and registration of the ships, on account of the great amount of work that they had to do in this. For these reasons it had been decided that, in the invoices that were brought forward, an itemized account should be given of the stuffs, their quantity, quality, numbers and marks, and the names of the consignees; and that the consignors should furnish samples of each article; and some bales here and there could be opened to ascertain if there were any fraud and punish it. And that, the aforesaid city and merchants having agreed to and accepted all the rest that was contained in the above despatch, the galleons had accordingly sailed for Nueva España in the years 1705 and 1706.

39. The Council, being informed of this memorial, agreed that the strictest orders should be repeated (as was done by decrees of December 12, 1712) for the exact observance and punctual fulfilment of those given on August 12, 1702, excepting that which concerned the opening of the bundles in the royal storehouses for the valuations. It was permitted that these should be made by means of invoices, which each one must present, swearing that the goods were his and that the bales contained no more than was set down on the invoices. The Council also decided that the traffic and commerce of those islands should be continued by the two ships already in existence, until they should become unseaworthy; in that case they must be laid aside, and the building of the two ships of 500 toneladas burden each should be undertaken, according to their former decision.

PERIOD IV

Of the demonstration which was made in the year 1712, when the Duke de Linares was viceroy, of the illegalities in the trade permitted to Filipinas, and the difficulty of preventing them.

41. On May 27, 1710, a despatch was sent through the private correspondence office [via reservada], addressed to the Duke de Linares, viceroy of Mexico, directing him, on account of the pressing necessities of war, to grant indult of the penalties for the illegalities (specifying those which had been committed in notable transgression of the law) with which the Filipinas commerce had been and was still carried on—not only in the commodities which were shipped, but in the silver which was sent back for them—neglecting the rules and orders that had been given for that commerce. In consequence of this, by order of the viceroy, an investigation was made in Mexico by an auditor in the year 1712, of both the shipment and the returns; and as a result of this was shown the great illegality with which the stuffs from China had been traded. It appeared that the goods that came without registration were allowed to enter on the declaration of them; that, contrary to the permission, all or the greater part of the merchandise in this commerce belonged to citizens of Mexico, Puebla and other parts of that kingdom, and not to the native citizens of the islands; that while the permission limited the returns to only 600,000 pesos, the amount thus permitted had been exceeded in some years by two millions, and in every year by a considerable amount; and that no investigation had been made of the chests carried by the mariners of those ships, to see whether they contained more than 30 pesos’ worth of goods.

42. Although with this investigation and the accompanying report of the auditor who made it (which he sent to the viceroy), and the opinion given by the fiscal of the Audiencia when he saw it, that court was of the opinion that the indult should be granted to the traders of Mexico who proved to be guilty, that body of traders refused such benefit, supposing that against its individuals such guilt would not be proved as to require compurgation [by the grace] of the indult; and the viceroy Linares, in a letter of August 4, 1714, in giving account of these investigations, made the following statement:

43. “By the last trading-fleet [flota] I informed your Majesty of the progress of the investigations which had been begun in regard to the commerce of Philipinas, and of the measures which I had taken with the merchants of this city in regard to the indult. They assured me that, as they were included in the offense, and the access to his Majesty’s clemency was so open, they would avail themselves of this favor, in order not to suffer another investigation or expose themselves to an experience of the severity of the penalty, since it was easier to take refuge in the sovereign asylum of your Majesty in the indult. But as the opinions of men differ, and their fears are wont to range themselves on the side of their advantage, the notorious nature of the offense was not enough to convince them, or the prohibition of the law to persuade them, on account of their persisting in the belief that [this very] tolerance sufficed to keep them from incurring [the penalties of] guilt; and that the fact that the ships came [to trade] without conforming to the orders of your Majesty afforded to the [Mexican] traders a certain indult for not making any change in the custom [regarding it]—alleging that the tolerance [of the government] was a matter of convenience, and insisting that they had not traded directly in the islands. With this the merchants resolved in a special conference, convened for this purpose by the consulate, that they would not avail themselves of the indult, leaving in my hands the liberty to proceed against all of them, hearing them in [the courts of] justice.

“Having learned of this decision, and being certain that many of the merchants were refusing the contribution as a body, and covering the indults as individuals, in order to secure greater advantage to themselves, I directed the auditor who had had charge of this investigation to summon them—each so separately and independently of the others that even the knowledge of this proceeding could not be imparted to them; and beginning with those who were distinguished by either wealth or position, whose opinion might be either a guide or a check to the others, in order that, these having once accepted the indult, their submission and connivance might facilitate the acquiescence of the others.

“I was influenced to this opinion by the difficulty of proceeding against all of them; for, as they number almost five hundred, and among them are the most prominent merchants, any procedure against them would cause a great sensation in the community, even though the cause should justify it, especially [if it occurred] at the despatch of the trading-fleet. [Also I was influenced by other considerations,] knowing by experience the losses that the merchants suffer through the irregular condition of the trade and the failure of the mineral products to make these good; their valuing more highly the actual balance in their favor from some investments which give prompt returns than their hopes from others which [various] causes might naturally retard; [the desirability of] gaining the tranquillity of the commonwealth by the voluntary contribution of its individuals; and by this means rendering more worthy of their regard the royal clemency of your Majesty, and pledging them to gratitude at receiving as a kindness the indult which menaced them as a penalty.

“Those who probably are included in this infraction of the law may be reduced to three classes of persons: those whose wealth supplies them with funds for trading, and who therefore risk these for heavy investments, without fearing lest they be ruined or left without funds for other purposes; others of the middle class [as merchants], who under the protection of the preceding class expose to risk a part of what they possess, and content themselves with moderate gains, because their means do not allow them to make greater outlay; and still others (and the most numerous), who are very poor and are unable to hazard any money, but who go to the port of Acapulco and there purchase what they can for the comfort of their families and their own petty affairs—and these are the majority [of the transgressors], among whom are many who are [now] absent, dead, or bankrupt.

“Your Majesty has given notice, in your royal decree of May 27, 1710, that frauds in the commerce consist in the excess of the shipments [over the amount permitted], and in what relates to the money which is transported by the ships of Philipinas to each of those countries, and that this irregularity depends on the judges who at Acapulco receive and despatch the ships. Although I must acquiesce in these judgments, and, no matter how much care the viceroys take to confer these powers on officials of zeal, intelligence, and energy, it is possible for self-interest to corrupt them, I also grant that it is difficult to ascertain their transgressions—because, as there is but the one official before whom the declarations of the goods and the registrations of the silver are made, it is very possible that he may have an interest in one or the other of these—either recording a smaller quantity of goods, in order that there may be smaller duties; or not registering the silver, which he can allow to be shipped outside the amount permitted. But as in both cases there is no one to make objection besides the very parties who are interested—and it suits these to be silent, because their profit depends on that—nor is there a witness to state what occurs, nor document to prove it, the transaction goes on, under a system of confidence to which neither proof nor even suspicion can be opposed.

“In some accounts, I have learned, certain sums have been credited to your Majesty, under the title ‘Amounts in excess of the permission,’ which is ten per cent of the excess over the 600,000 pesos which your Majesty allows to be transported; but whether these items are punctually credited or not, or whether under cover of these other and larger sums were received which were profitable to the judge, it is not easy to ascertain. I take abundant precautions to prevent these things from being done, but if they are done, or are hidden, I cannot prevent it; and I go on, sincerely believing that the minister [in whose charge this matter is], of whose fidelity I have had experience in other directions, will exercise that faithfulness in this also.

“For the future, your Majesty commands that the merchants refrain from transgressing in what is prohibited; but the very nature of the subject leaves some openings that cannot be repaired, through which the greed for gain thrusts itself, not only among the officials but in the merchants; and thus the most sagacious understanding does not perceive or suspect them, and thus does not correct them. I will specify some cases to your Majesty which will make this point clear.

“Your Majesty commands in law 12 on ‘Navigation and commerce of Philipinas,’ in the compilation of laws of the Indias: ‘That those who desire to go to Philipinas must give bonds, for their residing in the islands for at least eight years; and the viceroy shall allow them to carry with them their wealth in money, besides the amount of the general permission.’ In virtue of this law, cunning has discovered two safe and sure ways for perpetuating the commerce of this kingdom with those islands: the first, in the permission [here given] for carrying the money; the second, in [the assumption of] citizenship. For experience has shown that, on pretext of [maintaining] confidence and friendly relations, the merchants here send out one or more persons, the profits of them all being contracted for with these persons; the latter ask permission from the government, and display 50,000 to 70,000 pesos as their own, which actually are amounts entrusted to them by many persons. Under this supposition, they go over to Manila with the title of citizens, trade with that money, and regularly ship, as their own, the goods consigned to the citizens here [in Mexico], to whom belonged the money [carried by these agents]; and by remittances of silver and shipments of goods they continue to perpetuate that commerce—in such manner that, if efforts are made to learn who is the shipper, it is [always ostensibly] a citizen of Manila, in whom it is taken for granted that there is no fraud; and if the names of the consignees are ascertained, answer is made that they are his agents. But the latter are not agents, but owners, and the former are not owners, but agents; and in this way the order of things is reversed, by changing their names and the titles to property, and the profits remaining in the hands of those who are under prohibition.

“From this difficulty, authorized by the permission of the law, follow others. For, granting that these agents, even though they have actual residence in Manila, stay there not with the intention of becoming permanent settlers, but of living there only during the agencies which are patronized by the citizens of this kingdom, and that in virtue of the royal orders of your Majesty they are reputed as citizens: it [yet] follows that to them, as citizens, is assigned lading space in the ships, in accordance with the law, and with the royal decree of the year 1702; and thus they have the greatest facility for continuing in their trading, because no hindrance is offered to their shipments. They stand in the way of those who are really citizens and natives of those islands, whose remonstrances occasioned your Majesty’s prohibition; but as this interference goes on under the shelter of so plausible a reason, the latter have no way in which to oppose it, nor can they avoid suffering from it; and what [the authorities] there decide to belong to the parties interested is, strictly speaking, what has been entrusted to them by the citizens of Mexico.

“From this result two other and irreparable losses to the commerce of Manila. The first is, that for the 300,000 pesos of the permission there is a million of pesos to be invested [therein]; and [these agents], in order to make the most of their remittances [from Mexico], and to secure larger profits on their commissions, pay for goods at excessive prices, and are preferred in the sales. This is what cannot be done with their own money by the real citizens of those islands, because they have not [sufficient] capital remaining to permit adequate gains with high-priced stuffs and enormous costs [for transportation]—especially when these [citizens] regularly sell [their goods] at Acapulco (whither they go exposed to loss of their capital), in order to have the relief of bringing back their wealth in the same vessel with themselves; and the others [i.e., the agents of Mexicans] ship to Mexico their goods, the owners of which store them away in order that time may give them value, for they do not need to sell these goods at once in order to continue the remittances of money [to Filipinas]. Thus, the former must necessarily lose, or at least not gain; and the latter must gain, or at least not lose.

“The second [injury to commerce]: although no more than the 300,000 pesos of the permission, in goods valued in the islands, can be shipped, experience has shown us that much larger amounts come thence; and the reason is, because the register contains the appraisements of the goods so exceedingly low that it is impossible, unless fraud intervene, that they could be purchased at first hand at those prices—but with the trick that all the reduction of price thus made on the goods is squeezed besides into the [amount of the] permission, and the real account comes separately to the owners. As a result, the greater part of the space on the ship is occupied by those agents, although with the pretense that they produce but small amounts; and all this springs from that original root of allowing citizenship, and the transportation of their silver, to persons who, without the intention of becoming settlers, continue there so long as it brings them profit. The fear of this abuse has led to an investigation at Acapulco, to learn whether the valuation of the stuffs is the actual value of them at Manila; and as the witnesses are necessarily from that city they frankly say that it is so, and enormous quantities of goods come thence under the pretext of the 300,000 pesos permitted.

“These considerations and the fulfilment of my obligation constrain me to inform your Majesty that although I have applied all my energy and watchfulness in order that what was decided by your Majesty should be put into practice, causing the royal decree of the year 1702 to be proclaimed in Mexico and Acapulco, and allowing two years of liberty in order that the transaction of this commerce with those islands may cease, the perversity and selfishness of the merchants is able to pervert the rule which is seen therein—in public giving out that they are conforming to the tenor of that decree, and in private and secret hiding under [their system of] confidence the prohibited transactions, which cause, besides the royal displeasure of your Majesty, serious injury to the commercial interests of Spain. For when there is abundance of the goods from Manila—which on account of their cheapness are more suitable for the common people—the value of those from Europe is impaired; and from this results the stoppage of the trading-fleets, the lack of purchasers, and the lowering of prices, because the people do not consider the European goods necessary for their supply [of clothing]. I know very well that in the islands a change is expected from regulating the commerce, as has been experienced this year, when the [Manila] ship came in ballast—the merchants perhaps fearing the threatened punishment of the confiscation of their goods (as I set forth to your Majesty in a separate report). From this will result the forced expenditure of the royal situado and the inefficiency of the royal exchequer; but as it is certain that those islands cannot maintain themselves with the situado alone, and that they need the traffic in their goods in order to obtain a balance of profits and to meet their obligations, they will have to continue in their shipments, conforming themselves to the [terms of the] permission, if they do not wish to experience the penalty of law in punishment for their frauds.

“This year of 1714 is the last one designated and determined by me for closing and finishing the mutual relations of both commercial bodies, taking into consideration, however, the capital belonging to Nueva España in the islands, and that the penalty ought not to be anticipated, considering the publicity of the prohibition; and, as nothing is coming this year, it will be necessary to abrogate it in the following one. All this I place before your Majesty, in order that in regard to what is contained therein you may be pleased to apply suitable measures.”

In view of this letter from Viceroy Linares, and of other documents, whose contents do not concern this writing, it was agreed by the Council (after having listened to the fiscal), by a decree of the second of March, 1715, that this collection of papers [Expediente] should be kept until the commissary of Philipinas (who, it was learned, was coming to the court) should arrive; and that in the meanwhile all the previous documents which the Council might possess in regard to this commerce should be collected together.

PERIOD V

Of the information given by the commercial interests of España, in regard to the injuries arising from the Philipinas trade; and orders given by his Majesty in the year 1718 prohibiting the [trade in] the silk fabrics from China.

45. As the result of the memorial sent to the king by the consulate and commerce of Nueva España (which his Majesty was pleased to refer to the Council), in which they described the backward condition in which their trade was, and stated the arguments why the trading-fleets annually sent to that kingdom [from España] should not be continued, the Council agreed that the consulate and commerce of Sevilla should give a report upon their opinion of this memorial, calling together for this purpose in a general conference all the shippers and merchants who were in that city; and that their discussions, proposals, and joint opinions should be exactly copied, with the individual opinions which were offered, and the whole sent to the Council.

46. The body of traders having assembled in Sevilla on January 27, 1714, in order to comply with the order of the Council, and the importance of this matter having been discussed at length in the conference, it was unanimously agreed that the injury arising from the notable, frequent, and large importation of foreign goods which had been made throughout America had been very pernicious to the commerce of Sevilla; and that it was impossible that that commerce should return to its former condition if those importations were not checked—which they had entreated his Majesty to do in repeated remonstrances, which they now made again, trusting that the earnest and truthful utterances of vassals so faithful as they could not be displeasing to the royal ears.

47. [They further declared] that the injury caused by the large amount of freight which was earned into Nueva España by the ships from China, rivaled, if it did not exceed, that from the other importations. For, although the merchants of Mexico did not touch on this point in their memorial, the silence in which they kept back this subject (although it was a more odious source of damage) readily explained what interests were concerned in tolerating and continuing those ships, at the same time when the latter had so injured and driven out the commerce of España that no words were sufficient to explain the grief and resentment [of the Sevillans] over the great losses which had been caused to it. For although the ships which were bringing in the cloth and other goods (a matter to which the consulate of Mexico attached much weight) were ruining the commerce of España, in those important lines of linen goods, and others which they were bringing in, [nevertheless] the knowledge, suspicion, or information of what they were could perhaps make the [resultant] damage to the Spanish commerce less serious, such knowledge causing the refusal to injure that commerce; but that could not be guarded against in the ships from China, for their cargo was composed of all the silks and other goods generally which could be traded in by the merchants of España, of those which are manufactured in these kingdoms; and, whatever might be lost in that region on the part of the commerce of España by reason of foreign importations, it lost everything through those from China.

48. That, his Majesty having granted to the island of Luzòn (in which was located the city of Manila) and to the other islands around it only this, that every year there should go to the port of Acapulco one ship to obtain the situado for the maintenance of the fortified posts, conveying only what pertained to white and colored cotton stuffs, pepper, porcelain, raw silk, and other similar commodities which are produced by the islands which obey [the king of España], and with the prohibition of every kind of woven silk stuffs as contraband—for which reason the latter have always been burned on account of the notion of their being made in China and Japòn (which are countries governed by idolaters, Mahometans, and heretics, who are not under the dominion of this crown)—the abuse of this permission had reached such a state that the ship came with a lading of eleven or twelve thousand bales from China and Japòn, so dexterously packed by those infidels that the largest bale which the commerce of España was shipping to the Indias did not include the volume or the value that was enclosed in a bale of those silks, which was less than a vara deep. Moreover, they put therein imitations of all the satins, velvets, ribbons, mantles, hose, and every kind of silks, which were manufactured in España; [and these were] so showy and beautiful that, not only for this reason but on account of the very moderate prices at which they were sold throughout Nueva España, no other kind of silks were used than those of China. The result of this was that all the silk factories in España (which were paying so enormous duties to the royal treasury) had been broken up and destroyed; and the fortunes of those who were trading in the Indias were ruined by the great losses which they had encountered, since the Spanish commerce was deprived of a line of goods so important and rich as is that of the silk, in all its kinds of fabrics.

50. That the damage which this illegal trade occasioned to the royal treasury and to the Spanish trade enabled one to judge of the great amount of property which those ships transported, of the treasures which they carried, of the loss which they caused to the commerce of España, and of the amount which they did not contribute [to the royal revenues]—augmenting by this means the power and wealth of those infidels, who are enemies to the Christian faith and to the crown. For this reason, and because the consulate and commerce of Sevilla firmly believed that this was the greatest loss and the greatest source and cause of the ruin of the trading-fleets, and that which most urgently called for relief with the most prompt and energetic measures: they concluded by entreating his Majesty that he would deign to give orders that the permission given to Philipinas be strictly observed, under the most severe penalties, commanding that its limits be restricted within the limits of its first concession, for this purpose despatching the most rigorous orders; and that the trading-fleets should go punctually and frequently, each year. On this point they expatiated at length, and it is omitted because it does not belong to this subject.

51. In view of this information and of the proceedings in the Council (of which there is no account in the Expediente) it is found that by decree of January 8, 1718, his Majesty stated to the Council that, having been informed of the quantity of stuffs, silken fabrics, and other merchandise which the ship from Philipinas brought, by which the greater part of the silver of Nueva España was carried out of that country, he had decided to prohibit absolutely the trade in the aforesaid commodities. He declared that the only trade which could be carried on was in linen goods, porcelain, wax, cinnamon, cloves, and other products which are not carried from España, to such an amount of these kinds of goods as the Marqués de Valero should notify to the governor of Philipinas, which must be transported by one of the ships which for the last five years had arrived at Acapulco [from the islands]. His Majesty furnished with this a copy of the order to this purpose which he had given to the Marqués de Valero, the tenor of which is as follows: [Here follows a copy of the decree, dated at Madrid on January 8, 1718.]

53. By another decree of June 20, in the same year, 1718, his Majesty sent to the Council, for its information and guidance in the matters which belonged to it, a copy of another decree (which was issued to the Council of Castilla), prohibiting the importation and use of the fabrics from China and other parts of Assia, since this was to the injury of the manufactures and commerce of España; its tenor is as follows: [A copy of this decree is also given].

PERIOD VI

Of what occurred from the year 1718, in which the commerce of silken fabrics was prohibited, up to the year 1722, in which the merchants of Philipinas protested.

55. The Marqués de Valero, then viceroy of Mexico, in a letter of March 12, 1719—accompanied by a duplicate of another letter dated June 20, 1718, in which he acknowledged the receipt of the despatches in the private correspondence, dated January 8 of that same year, which prohibited all silks in the ship from Philipinas—considered the inconveniences which would result from that commerce being reduced to linen goods, porcelain, wax, pepper, cinnamon, and cloves, excluding stuffs, and raw silk and [silken] fabrics. For, he said, if this prohibition should be put in practice, the result would be the decay of religion, and the risk that it would be neglected, and its extension would be endangered and even exposed to ruin although this matter had cost his Majesty so much solicitude in promoting and assisting the missions for preaching the faith. [He declared] that the Spanish families who were there would abandon the settlements, for they could not maintain themselves in those islands without the trade in the aforesaid commodities, since that in the merchandise allowed to them had no profit, on account of its low price and the little demand for it. That the natives of Nueva España were also included in the prohibition, since their usual material for clothing was the stuffs from China, on account of the moderate prices of these, and because they could not use the cloth from España, since it was more expensive—unless, if they are deprived of the former, it will follow that they consume the latter; for if their need and poverty would permit it they would use the Spanish cloth, since all value it more on account of its greater durability and better quality. That the arrival of the trading-fleets was welcomed by the rich merchants, but that most of the people in the kingdom were much more eager to see the ship from China; and, if its arrival were delayed, one did not fail to notice many expressions of regret. That the royal treasury was notoriously injured; for, with the duties which the silk merchandise yielded, the situado was forwarded to Philipinas and the Marianas Islands, and in default of those duties it would be necessary to make the remittance from the funds in the treasury of Mexico. That would cause arrears in paying the fixed charges which the treasury had to carry, and could hardly meet with all its income, and the royal treasury would also be injured by the loss of the ten per cent which was paid by the silver sent in return for merchandise; and, besides, the few commodities which were carried would not yield enough to cover the cost of the navigation.

56. The fiscal—to whom it was ordered to send these representations, that he might examine them and compare them with the Expediente—made his reply on January 10, in the year 1720, reaffirming the motives which had prevailed, since the discovery and conquest of those islands, in permitting to them the commerce with Nueva España, so far as it was necessary to their preservation. [He also stated] the infractions of law which had changed the amount permitted—250,000 pesos of principal, and 500,000 for the returns (which “Period i” mentions)—and what was ordained by the royal decree of August 12, 1702, for the regulation of the management and continuance of this commerce; and declarations made by his Majesty in regard to unsettled points which arose, in the meeting of the Council in 1712, from which despatches were sent on December 12, of that year (which are mentioned in “Period iii”); and the fact that the abuses with which the merchants of Peru had carried on commerce with Nueva España had made it necessary that in the year 1631 that trade should be entirely prohibited. He was of the following opinion: that the permission to trade ought to be continued to the citizens of Philipinas, for the damages to the commerce of España would be avoided if that of Philipinas did not exceed the 300,000 pesos which were allowed to it.

57. That if this commerce should perish, trade and intercourse in those distant provinces would cease; and if they were cut off from communication with Nueva España they would remain exposed to seeking for commerce with the adjoining nations, and in imminent danger of trading away at the same time their own rights and customs, and of going to perdition—the Catholic faith being extinguished entirely or in part, the propagation and maintenance of which was and always had been the chief care of his Majesty.

59. That the government should not disregard the consideration brought forward by Señor Valero, of the damage which ensued to the poor vassals of Nueva España from depriving them of the privilege of supplying themselves at less cost with the fabrics from Philipinas; for if they cannot obtain these, and the poor are unable to meet the expenses of the Spanish merchandise on account of its high price, they would be exposed to the wretchedness of destitution. In conclusion, he said that advice should be given to his Majesty that the remonstrance of Señor Marqués de Valero was just; and that deference should be paid to it, by suspending the operation of the above-mentioned decrees and warning all the officials in those regions that they must conform without any variation to the orders given in the decree of the year 1702—with various provisions which he proposed, one of which was the total prohibition of the commerce in case the conditions of that decree were violated.

60. Having considered this reply of the fiscal, it was agreed by an act dated February 1, 1720, to advise his Majesty in accordance with all the preceding recommendations; and the Council was of opinion that it should reiterate the enforcement of [the commands in] the despatches of August 12, 1702, and December 13, 1712, with a strict stipulation that the ship could not be allowed to sail if the value of the 300,000 pesos of the permission were invested in silks only.

61. While this opinion was in the royal hands, an order from his Majesty came down to the Council dated September 5, 1720, in which—influenced by a memorial which had been presented by Don Manuel Lopez Pintado in the name of the consulate and commerce of Cadiz; and by a letter from Marqués de Valero just then received, dated March 8, in the same year—his Majesty commanded that the Council should inform him of their opinions in regard to the prohibition of stuffs and silks from China in the Philipinas ship, after first listening to the memorial from the commerce of Cadiz.

62. The Marqués de Valero in the letter here cited of March 8, 1720, urging what he had set forth in previous letters in regard to the difficulty which he encountered in carrying out the decrees which prohibited the commerce in silken fabrics, also spoke of the new distress in which the islands were, on account of the plague of locusts, failure in their harvest of rice, and the scandalous proceedings of Governor Bustamante. The viceroy said that it seemed to him better for the service of God, and that of his Majesty, to delay the regulations which changed the method in which that commerce had been conducted, until his Majesty should make such decision as pleased him in regard to the viceroy’s previous memorials; and he said in conclusion that he had also found it desirable to make this suspension of the decrees because the emperor of China had hindered his vassals for the last two years from trading with the islands—which had resulted in the galleon of that year carrying but few silk goods. Consequently, the greatest scarcity of that merchandise had been experienced, for, even before the arrival of the ship, a libra of silk spun [beneficiada] and dyed was worth 26 to 28 pesos.

64. He stated that it was a mistake to assume that the permission was only for the products belonging to the native citizens of Philipinas, because the laws which permitted this commerce did not contain such limitation, and continual usage had excluded it; for always the islands had traded in silken fabrics without hindrance, for with the products of the country it would be impossible to carry on an annual commerce to the amount of 300,000 pesos.

65. That the absolute prohibition of that commerce which the consulate proposed in its memorial (it is not in the Expediente), following the precedent of prohibiting the commerce of Peru with Nueva España, ought not to be considered. For the latter prohibition left both those kingdoms free to trade with Castilla, by which the lack of commerce between them was made endurable; but this result could not occur with Philipinas if the commerce of Nueva España were prohibited to them, since there remained no other of which they could avail themselves.

66. That, if the products of the natives of those islands were sufficient to make up the annual [amount of] trade to the extent of 300,000 pesos, it would be just and reasonable that the commerce in silken fabrics be prohibited to them; but as the aforesaid viceroy positively stated that those products were not sufficient for that purpose, it would not be right to deprive them of this privilege without further knowledge of the subject. The conclusion of the fiscal was, that orders should be given to observe the royal decree of August 12, 1702; and that the viceroy and Audiencia of Mexico, and the governor, Audiencia, archbishop, and royal officials of Manila, should send in information very clear and detailed on the question whether the products of the country could fill up the amount, [of exports] assigned to that commerce.

67. The Council, in view of all that is mentioned in this “Period vi,” and of a summary of the context of the letters of the Marqués de Valero, and of the replies of the fiscal, were of opinion, in their session of September 23, 1720, that his Majesty should be pleased to command a repetition of the orders given for the fulfilment of the regulations issued on August 12, 1702, and September 13, 1712—with a strict stipulation that the Philipinas ship should not sail with an investment which should exceed 300,000 pesos, and that to be in the commodities which were specified [therein], with exclusion of every kind of silken fabrics; and with other measures and statements which are contained in the despatches that were issued for the enforcement of those decrees, dated October 27, following, of which mention will be made.

68. At this session it pleased his Majesty to make the following decision: “I agree entirely with what the Council proposes; and the corresponding orders shall be immediately given, with the most punctual and strict charge to the officials whom this concerns (and especially the viceroy of Nueva España) that all the above orders shall be carried out promptly, without any objection or alteration—with the warning that, if any neglect or delay in fulfilling this decision is experienced, proceedings shall be brought against them as disobedient to my orders. And in order that those officials, as also private persons in Nueva España and Philipinas, may be fully informed of this determination, a decree shall be drawn up with the utmost clearness and precision, which shall include the whole of this business. This decree shall serve as an ordinance, in which, without reference to others, shall be expressly stated what every person must observe in this commerce, and the penalties which transgressors will incur, in accordance with what the Council proposes, to the end that, by placing an authentic copy of it at the heads of the registers on the ships from Philipinas and making it public, no one can allege ignorance. The Council shall pay especial attention to the manner in which proceedings shall be taken in this matter, not only in Nueva España but in Philipinas, in order to secure the punishment of those who disobey my orders, and of those who shall delay their execution.”

69. In consequence of this decision the royal ordinance which was mentioned in it was drawn up, with date of October 27, 1720. It was addressed to the viceroy Marqués de Valero, and the Audiencia of Mexico; the royal officials of Acapulco; the governor, Audiencia, and fiscal of Philipinas; and the archbishop of Manila; and copies of it were given to the consulates and merchants of Cadiz and Manila, at their request, in order that they might print it. Its tenor is as follows:

PERIOD VII

Of what was done in Manila on receiving the decree of October 27, 1720. Recourse to the Council by their deputies. Reply from the commerce of Andalucia, and what was decided in regard to this matter in the year 1724.

71. On August 2, 1722, the governor, Marqués de Torre-Campo, received at Manila the ordinance despatched on October 27, 1720, of which the preceding “Period” speaks. Having caused this decree to be published by a proclamation in that city, record of it was made in the offices, and it was communicated to the municipal council in open session. The cabildo protested against it, promising to obey, but resolving to set forth to the governor in the first place, and afterward to his Majesty, the damages and troubles which would result from its execution to religion, to the royal treasury, and to the greater welfare of those islands, from their not continuing to enjoy the permission to trade in fabrics of silk, which they had possessed for more than one hundred and forty years. They would therefore be obliged to entreat that his Majesty give them permission to retire, with their families, to the lands and domains of his Majesty which they should consider most suitable.

72. In a long memorial presented to the governor was set forth in detail the motives on which they based this action; and when orders had been given that the fiscal of that Audiencia should examine it, although he recognized that their statements were correct, and that the islands could not maintain themselves on the system of commerce which had been laid down, he demanded that orders should be given to fulfil the cited royal decree, and that the city and merchants should appeal to his Majesty who, there was reason to expect, would take care of his vassals there, and of the interests, both spiritual and temporal, which were concerned in it—and the governor gave orders to that effect. Although the city and the merchants by a second memorial insisted upon a suspension of the above regulation, demanding that, in case there was no room for it and for continuing their trade in silks and stuffs as heretofore, at least he should declare that they were not obliged to invest their funds in the commodities which were prescribed to them, as it would occasion their total ruin (and they demonstrated this): nevertheless, the governor, bearing in mind that the damages to his Majesty would be no less, if the galleon for that year should go empty, commanded that, in accordance with the amount permitted by the cited regulation, they should make the distribution of the [permits to ship] merchandise as his Majesty had commanded. The city and the merchants, with the hope that his Majesty would give attention to the urgent representations that would be made by the commissaries whom it had been agreed to despatch to the court, agreed to continue the commerce meanwhile conformably to the despatch of 1720—sacrificing out of respect to his Majesty, and in order to maintain the religion established in those islands, their own wealth, which necessarily must be ruined and lost in a commerce so useless and unfortunate as that to which they were reduced; since the bulky commodities, on account of their abundance and poor manufacture, would not allow them to gain ten per cent, since the risks extended to fifty per cent.

73. The city of Manila, in order to render commendable and frame in more formal manner its appeal from the aforesaid decree of October 27, 1720, which it must bring before the royal person—not only for the continuation of the traffic in the silken fabrics, but also for the increase of its permission from the three hundred thousand pesos which it was enjoying to five hundred thousand—came before the Audiencia and presented before it the arguments and reasons in favor of both these requests. After explaining the losses that would arise from the desolation and depopulation to which the islands would come (which the Audiencia took into consideration in its memorial, as will be noted) the city added that when in Manila there were only 230 citizens (which was in the years 1636–37) returns of 500,000 pesos were permitted to them; but since in the year 1722 the city had 882 citizens, and there was an increase in the charitable foundations, which placed 150,000 pesos at risk on each galleon, the necessity was evident of increasing the permission to 500,000 pesos—350,000 pesos for the citizens, and 150,000 for the charitable foundations. This increase in the number of citizens made necessary the expansion of the permission, from the very fact that in the year 1702, in which there were only 400 citizens, his Majesty had permitted 300,000 pesos of investments, and 600,000 pesos in returns.

75. The Audiencia of Manila in a letter of November 9, 1722, taking into consideration another which they had written on August 6, 1713, in which they set forth the losses which that commerce had suffered—in [the wreck of] their galleons, the unsuccessful fairs of Acapulco, and the excessive pecuniary extortions that they had suffered in Acapulco on account of the royal duties and in other ways—to the end that new measures might be taken by his Majesty for the rigorous reëstablishment of the commerce of those islands, describe (influenced by the urgent representations made by the city and by previous information obtained by each auditor) the affliction which has been caused by the new decree of October 27, 1720. They declared that they judged necessary for the maintenance of these islands and the propagation of the holy gospel, not only the permission for the silk and the stuffs prohibited by the cited despatch, but also the increase of the permission from 300,000 to 500,000 pesos. The Audiencia affirmed that the Spaniards could not exist without this commerce, because the culture of the fields was in the hands of the natives and the management of the guilds [gremios] in those of the Sangleys and their mestizos; that the salaries and pay with which the military officers, soldiers, and civil officials were recompensed did not reach half the annual expense of their families, in consideration of which it was commanded to include then the distribution of the lading of the galleons; and that, while the permitted amount was 300,000 pesos, and the number of citizens so great, the investment of each one, even if all were alike in wealth and services, did not amount to 400 pesos, the profit on which was not enough for the proper support of a man who was not actually poor, and on this account they could not increase their wealth. When the Europeans see that it is useless to transport goods to those regions where there is not, outside of commerce, any motive which would induce them to remain, or which would bring other new traders, those who consider the matter have reason to fear that in a few years the capitals of those who live there will be consumed, and that others will refuse to enter into the same experience; then Philipinas will be left to the Indians and Sangleys, the gospel ministers without the guards of Spaniards for their protection, the military posts without garrisons, the natives without any control, and everything on the blink of a deplorable ruin.

76. That with the commodities which were allowed by the said royal decree, the lading of the annual galleon could not reach the gross amount of the 300,000 pesos of the commission. From this it resulted that that amount was diminished and the traders exposed to evident loss in Nueva España, on account of the abundance of those very articles of merchandise; and that would result in cutting off the proceeds of the many and large charitable funds, founded on the merchandise risked in those galleons, for the support of clergymen, hospitals, convents, divine worship, dowries to orphan girls, and many other alms—which, even though they were no more than those which were administered by the brotherhood of La Misericordia, and by the tertiary Order of St. Francis, were of the greatest importance, and their failure a most notable affliction to all the islands.

77. That by the exclusion of the stuffs and silks, which were the principal articles of commerce of the islands with China, all that commerce [i.e., with Nueva España] would come to an end, since all the rest was of so little value that it could not, without the substantial aid of the silks, allow any profit. From this would result another great difficulty in the propagation of the holy gospel, that if the Chinese do not come to the trade they will lose the opportunity for conversion which so many have attained, attracted by familiar intercourse with the Spaniards, with the occasion of this commerce, and there would be great difficulty in introducing the gospel ministers into those dominions; and these are motives which have always engaged the chief attention of his Majesty, to judge by the laws. The Audiencia concluded by expressing the opinion that the prohibition of the silks should be removed, and an increase be granted in the permission to 500,000 pesos, with the number of piezas which the city was proposing—this regulation being made in proportion to the number of citizens, in order that the islands might maintain themselves, and thus obviate the serious inconveniences that were experienced; and, as for the duties which the city proposed, this question was referred to the decision of the Council.

I

The necessary dependence which the maintenance of these islands has on the commerce, in order that the Spaniards may maintain themselves in them; and the benefit from the charitable funds, in which are annually expended 75,000 pesos—which sum proceeds from the trading of the 150,000 pesos which are carried in the annual galleon on account of the said charitable funds.

II

III

That for the maintenance of these islands, the support of the Spaniards, and the success of the charitable funds, it is necessary that the amount permitted be increased to 500,000 pesos and a million of returns, with the inclusion of the fabrics from China.

IV

The regulation of the lading, in order to avoid infractions of the law [is necessary]; as also that the dubious and burdensome obligation of making sworn declarations be laid aside, and that the quality and number of the commodities which are transported must appear in the registers.

80. [The treasury officials at Manila also write, seconding the proposal to despatch one large galleon; and they add that the royal exchequer of the islands will be ruined if the decree of 1720 is enforced, “for the commerce would cease, and consequently the royal duties which it was producing.”]

81. The archbishop of Manila, the dean and cabildo of that church, and the provincial of the Society [of Jesus], in their letters of November 6, 7, and 8 of the same year, support the entreaty of the city; they deprecate the ruin (both spiritual and temporal) of the islands, and express the same opinion as that of the Audiencia and the fiscal, as will be seen by their letters, which follow below.

82. The provincials of St. Dominic, St. Francis, and St. Augustine (both calced and discalced), in their memorials of the same year expatiate on the necessity and advantage of changing the aforesaid decree of 1720, and granting likewise to the islands the increase of the permitted trade which they solicit; and they reproduce in detail what the other prelates and ministers say.

83. [The letter of the archbishop (Fray Francisco de la Cuesta) states that he has been urged to write it by the city and merchants of Manila, and the bureau of the Misericordia; and he begins, very naturally, by arguing that the religious interests of the Philippines and of China depend upon the maintenance of the commerce of the islands. He refers to the opposition made to it by the merchants of Andalusia, which he thinks has no good foundation, since their trade with the other European nations drains from España more money than does that of Filipinas from Nueva España—this last being their ground of complaint against the Manila trade; but even if the Sangleys and other heathen carry away silver from Manila, “they have not harmed the [Spanish] crown, and are friendly to the [Christian] religion; while it is certain that the European nations, even if they are not all opposed to religion, at least have been at various times hostile to the crown, and that the amount annually transported by the said nations to Great China and other heathen kingdoms exceeds four millions [of pesos].... And although the argument [of the Andalusians]—that the fabrics from China cause injury, at the expense of those which are transported from Cadiz—would have some weight if all the fabrics in which the Andalusians trade were manufactured in España, since they are not made there the above argument has very little value.” The Spaniards in Filipinas regret that so grievous burdens and restrictions are laid upon them through the influence of the Andalusians, and especially that the result of these must be very detrimental to the charitable funds which so greatly depend upon the Acapulco trade. Two-thirds of these, or 100,000 pesos, belong to the Misericordia alone, whose educational, religious, and charitable labors are so important to the public welfare and the maintenance of the Spanish colony in Filipinas; the remaining 50,000 pesos belong to other institutions. The archbishop therefore urges the king to accede to the requests of the Manila merchants.]

84. [The dean and cabildo of the Manila cathedral also support the merchants; they fear lest the income of the church will suffer from the impaired condition to which the decree of 1720 threatens to bring the Filipinas colony. They adduce similar arguments to those contained in the preceding letters, all taking for granted that the prohibition of Chinese silks means the ruin of the Acapulco trade. Incidentally this letter states the following facts of interest: “The poverty of the soldiers is such that they always go about as mendicants and in need; for as they receive no more pay than that of two pesos and a fanega of rice—which is given every month to the soldiers, but to the convicts who serve [forzados] in the troops only the rations—if they could not find refuge in the aid given by the citizens, the alms from the charitable funds, and the broken food at the convent doors, and in what the more industrious can earn by doing errands, they would certainly perish.” The prebends of the cathedral find their salaries—which range from 500 to 200 pesos yearly, besides the dean’s 600—pitiably small and inadequate, and they must even resort to the charitable funds and to the gifts of friends to eke out their incomes. The same difficulties beset the parish ministers; but worst of all is the condition of the poor clerics who receive no pay, who have no income save occasional offerings for masses and the alms of benevolent persons.]

86. All the papers and reports which have been mentioned in this “Period vii” having been received in the Council, and the deputies from Philipinas, Don Francisco Diaz Romero and Don Antonio de Echandía—who deposited their credentials and letters in the office of the secretary—having presented themselves in it, they set forth their claims and stated, in a printed memorial (which they handed in on June 14, 1723) the injuries which the islands were receiving from the practice of the decree of October 27, 1720. They entreated that its execution be suspended, and orders given that the commerce be continued with the yearly galleon in the same manner, so far as the lading was concerned, as was in use at the time when the aforesaid despatch was received there [at Manila]. The memorial, in eight leaves, is as follows:

88. The Council, on June 14, 1723, agreed that this memorial should go to the fiscal with all those that came before, with the letters of the Audiencia, officials, and prelates which had been laid before the Council on the twelfth of the same month.

89. The consulate of Cadiz, by a memorial presented in the Council on the twenty-first of the same month and year-being informed of the petition from Manila requesting that changes be made in the decree issued on October 27, 1720—asked the Council to order that the argument recently brought forward by Manila in regard to this be communicated to them; this having been referred to the fiscal, he was of opinion that the aforesaid document should be communicated to the consulate, as had been done in the year 1720 by order of his Majesty; and the Council agreed to this by a decree of July 12, 1723.

95–96. [The above memorial was referred by the Council to the fiscal, on October 6, 1723; and on December 22 following, a printed answer to both of those by Manila was placed before the Council by the consulate and merchants of Cadiz. They remind the king that when Filipinas was first discovered the ships brought back to España abundance of gold, pearl, amber, civet, wax, and fabrics of Ilocos; and for some time afterward these and many other valuable products were exported from Manila, which became the emporium of both Eastern and Western India. In those early times, when so much zeal and energy for the conversion of the heathen was displayed, it was not necessary to the missions to depend upon the trade in Chinese silks; but, for the sake of benefiting the natives of the islands, and to check the drain of silver to foreign nations, the Spanish government (by decrees of 1589 and 1596) authorized the barter and exchange of the products of Filipinas for those of China, under the system called pancada. But Manila has distorted this into the assumption that the Chinese trade was intended for the maintenance of the Spanish colony in Filipinas, and that it was to be without restriction, save in its amount—although, as a fact, the trade in silk fabrics of China was not introduced until many years later. The system of distributing the commerce among the citizens of Manila replaced the earlier pancada, and led to such abuses that Felipe III attempted to check them by a severe decree (1620); and later enactments placed the Acapulco commerce on such footing that it flourished greatly, to the mutual advantage of Filipinas and Nueva España, and to the enrichment of Manila and its citizens. That commerce benefited the poor citizen as well as the rich; but the trade in silks is only for the benefit of the wealthy merchant and the rich consumer, as they are articles of luxury. The earlier commerce of Manila also supported and stimulated the consumption of Spanish silks in Nueva España and Peru, and the silk industry flourished in the mother-country; but the later introduction of Chinese silks into the American colonies, and the frauds and excess connected with this trade, have ruined the silk industry on both sides of the Atlantic, and even impaired the prosperity of Manila. Cadiz claims that the merchants of Mexico have committed many frauds, and transgressed the ordinances, and prevented the execution of these, in regard to the Manila trade, and do so with the collusion and aid of the officials: for instance, the galleon “Nuestra Señora del Rosario” arrived at Acapulco on January 11, 1699, and the Manila citizens attempted to compound the duties on the cargo for 100,000 pesos; but the royal fiscal opposed this, showing that the ship had brought 6,754 piezas of lading, without counting a considerable quantity of pepper and other goods outside of the registration. It was also found that although the law restricted the entire cargo to the value of 250,000 pesos, and its ownership to the citizens of Manila, this vessel contained goods to the amount of 233,966 pesos which belonged to the citizens of Puebla alone, and it was estimated that it must contain at least a million pesos’ worth of goods belonging to merchants in the City of Mexico. The Mexican government compelled the payment on these goods of duties amounting to 50,000 pesos more, and would have investigated the whole matter, to ascertain the exact amount of the illegal shipments; but the commercial interests of Mexico exerted such influence against this that the Audiencia desisted from the undertaking. Again Cadiz accuses the importation of Chinese silks into Nueva España of having ruined the silk industry in España; although those goods are so thin and poor that they are worn out even before the Manila galleon leaves Acapulco, they are so cheap and showy that they undersell the better goods from España even competing with the latter in Vera Cruz, where the Chinese goods are purchased by the traders of Habana, Puerto Rico, Cartagena, and other Spanish colonies; and all this is overlooked by the Spanish officials in high places, because they profit by this illegal traffic. If the king will prohibit the importation of silk woven with silver and gold, and “check the hand which Mexico moves at the command of Manila,” the silk industry will be revived in España, its people will be kept from idleness and poverty, and foreign countries will no longer drain its resources. Cadiz desires Manila to content itself with the spice-trade, which is a staple and profitable line of commerce, and which Manila can carry on more cheaply and promptly than Spanish merchants can; the spices sent from España on Chacón’s fleet were needed to supply the scarcity of them at that time, as the Manila trade had been interrupted temporarily; but if the latter be regular, such shipment from España could not occur again. From the year 1690, the indult ran from 50,000 to 74,000 pesos, on the basis of the 250,000 pesos allowed to the Manila trade; but it is evident that the duties ought now to amount to above 500,000 pesos, on the enormous quantities of Chinese silks that the galleon of 1,000 toneladas carries.]

97–105. [This memorial, with like protests from the cities of Toledo, Ezija, and Murcia, was sent to the fiscal, who on March 16, 1724, handed in his opinion on the question at issue—that is, whether the decree of 1720 should be changed or enforced. He lays down three propositions: First, that the trade in Chinese stuffs should not be prohibited to the citizens of Filipinas, since it is necessary to their maintenance, those islands having no profitable mines or commercial products; moreover, the introduction and propagation of the Catholic faith therein is an obligation of justice as well as of religious zeal, and was so recognized by Felipe II, when he refused to abandon Filipinas; and to fulfil this obligation the Spanish colony there should be sustained. For this purpose the trade with Nueva España had been granted to Manila, to such extent as should be necessary for its preservation, that is, to the amount of 250,000 pesos, and 500,000 in returns; and in the permission given to Manila to trade with China there had been, and should be, no restriction as to the woven silks of that country. Second, this trade ought, nevertheless, to be strictly confined to the amount of their permission, and all frauds to be prevented; for the complaints of Spanish producers and merchants had been caused by the frauds and abuses in the Manila trade, rather than by the mere fact of its including Chinese goods; the fiscal even suggests that they have an official representative at Acapulco to aid in the unlading and inspection of the Manila galleon, and report thereon to the viceroy, which would aid in preventing frauds and enable the Spanish merchants to discuss the question more intelligently. Third, that in case the trade in Chinese silks be prohibited to Manila, that in spices should be absolutely prohibited to the Spanish merchants and given exclusively to those of Filipinas; while the American trade in silks should be free to the Spaniards.]

106–111. [The Council considered this question on April 6, and decided that the decree of 1720 should be changed; they recommended that the Filipinas trade be continued as before the decree, and employing but one large galleon; that the decree of 1702 should be enforced, save that the goods should be valued not by actual inspection of the bales but by invoices presented by the shippers, with their sworn statements that the goods were their own; nor should any indult, payment of double duties, or other form of composition be tolerated; and that the royal officials at Manila, Cavite, Acapulco, and Mexico should be held responsible for the fulfilment of these regulations, under severe penalties. This proceeding was approved by the king, who issued despatches in accordance therewith (June 17, 1724) to the viceroy of Nueva España and other officials concerned therein; and on August 8 the merchants of Cadiz were invited to nominate a deputy to watch the Acapulco commerce.]

PERIOD VIII

Relates the plan presented by the deputies of Philipinas for regulating the commerce of that country, in the year 1724; and its results, up to that of 1730.

112–113. [On September 28, 1724, the deputies from Philipinas presented to the Council another printed memorial, in which they proposed a plan for preventing the abuses of the Manila-Acapulco trade. This document contains ninety-four paragraphs; it enumerates the provisions of the decree of 1720, the objections made thereto at Manila, the difficulties of navigation on the Pacific, and the reasons why one large galleon is better for that commerce than two small ones; describes the frauds and injustice practiced in the lading of the galleon, for which the responsibility rests mainly on the governors of the islands, who use their great power for their own personal advantage, regardless of the rights of the citizens; and opposes the requirements that each shipper must swear that the goods he sends are his own, that no one to whom space is allotted may sell or transfer it to another person, that the valuations of goods must be made by samples, and some other restrictions which seriously embarrass the citizens who have but little wealth to invest. It is represented that the seamen are allowed to carry each 30 pesos’ worth of goods as a private investment, in order to encourage Spaniards to enter the marine service; but this ought to be increased to 300 pesos (the allowance made to the men on the fleets that go to the Indias), for more Spaniards are needed on the Acapulco trade-route—hardly one-third of the men on a galleon being of Spanish birth, the rest being Indians and on the rivera of Cavite. The citizens of Manila ought to be allowed to carry back all the produce of their shipments, since but few of the products of Nueva España are adapted to their needs in the altogether different climate and other conditions of the islands. They also ask that they be allowed to compound the payment of dues at 100,000 pesos each voyage, or less pro rata if the amount of goods shipped fall below the 300,000 pesos allowed for the trade. The transgressions of law connected with the Acapulco commerce have been mainly committed by high officials, but have not been so great, or so injurious to Spanish trade, as Sevilla and Cadiz represent; the deputies assert that “these abuses cannot be checked, or most of them even ascertained, so long as the terms of the concession are in pesos,” and that it ought to prescribe a definite number of piezas, of specified measures and weight. They therefore propose a new ordinance for regulating the traffic, which embodies the above suggestions and requests, with some additional points. They ask for a permission of 4,000 piezas, of which 500 shall be half-chests filled with silks and very fine cotton goods, “which do not admit the use of the press;” the size and weight of the piezas is fully described. They ask permission to ship pepper and storax besides the amount of the permission, without restriction of quantity. The galleon for carrying these goods should be of dimensions here specified—the keel sixty codos [or cubits] long, the breadth of the vessel twenty codos, and the inside depth of the hold ten codos—and its crew should contain 250 men, besides the officers. The governor should not be allowed to act on the committee for distributing the allotments of lading-space; in his place is proposed the archbishop, the other members to represent the Audiencia, the municipality, and the merchants. The amount of merchandise which may be sent by the governor and all other royal officials ought to be limited to one hundred piezas, and this should go outside of the permitted amount. A share in the lading is asked for the ecclesiastical cabildo of Manila, on account of their poverty and their high dignity and character; also for the officers on the galleons, and for the widows of merchants and military officers. An allotment of space should be made transferable; and permission should be given to send some packages of goods intended as gifts to friends, affidavit being made that these are not intended for sale. The governor and officials of the port of Acapulco should not be allowed to exercise any authority or pressure over the Manila traders, beyond the proper inspection of the vessels and lading and the collection of duties; and the traders should be allowed to sell their goods as they please, either in or out of the fair there, or transport them to Mexico, if they prefer. They should not be expected to pay alcabala on the first sale at Acapulco, or any extraordinary imposts. The memorial specifies the provisions to be made for the lading and inspection of goods at both Manila and Acapulco, the functions of certain officials, the penalties for transgression of the regulations, and the customs duties to be paid on each kind of goods; and offers certain payments to be made by the Manila merchants, which will add much to the royal revenues. It states the present number of “citizens and traders” in Manila as 868.]

114–121. [The above document was handed to the fiscal, who advised the Council not to make the concessions therein asked, as they would destroy the entire system on which that commerce had thus far been conducted, and abrogate the provisions of the decree but recently granted for the benefit of Manila, which gave that city sufficient advantage. On January 12, 1725, the Council requested one of the ministers, Don Antonio de la Pedrosa, to examine the scheme proposed by Manila, and render an opinion thereon. He was willing to grant a number of the concessions requested, but would insist that the total of the permitted trade be restricted to 300,000 pesos, and the returns to 600,000 pesos, as before; and he proposed even harsher penalties for the transgression of the laws governing the trade. The Manila deputies, on learning of the opinions of the aforesaid royal officials, desisted from their efforts to obtain further concessions from the Council, but appealed to the king, who sent to the Council a decree (dated July 22, 1726) permitting the scheme of Manila to be tested (although with some restrictions), for two years.]

(To be concluded.)