Note 5 — COMMERCE OF THE PHILIPPINES WITH NUEVA ESPAÑA

31. That in order to avoid confusion in the decree of the year 1697 already cited (and leaving these points settled and in use, in such form that they should be permanent), if the governor and merchants of Philipinas in giving the 100,000 pesos, should come to offer it by way of adjustment [regulacion]5 of the duties in each voyage, and not under the name of indult [indulto], as had been proposed, they should be entirely released from payment of all the duties which they must make good in Acapulco, not only on the outward but on the return voyage. It was also declared that goods sold at that port or shipped from it should not pay alcavala on the first sale; for it was certain that the contribution of the 100,000 pesos from the permission would cost seventeen per cent, leaving eighty-three per cent gain to those who were interested in the trade. Moreover, as his Majesty paid the expense of the building, cleaning, and equipment of the ships, and supplying them with soldiers, provisions, supplies, and ammunition, without receiving more than forty-four ducados for each tonelada, it would not only be advantageous, but even necessary to the royal treasury to furnish a considerable amount for preserving their commerce and traffic to the natives of the island, which was all the favor which his royal munificence could exercise. If, however, an agreement should not be reached by the trade in the adjustment of the 100,000 pesos, the royal duties must be exacted and collected in full, without excepting anything.