Note 23 — COMMERCE OF THE PHILIPPINES WITH NUEVA ESPAÑA

87. [This memorial by the city and merchants of Manila presents in detail the amount of their annual commerce in the various kinds of merchandise that are permitted in the decree. The gold exported from Filipinas to Nueva España amounts to less than 12,000 pesos, and is sent not as bullion or coin, but in the form of the slender chains [bejuquillos] wrought by the Malay natives for personal adornment; for in no other form could it compete with the abundance of gold mined in Mexico. The Chinese porcelain is shipped in small quantity, being mainly an article of luxury, like the gold ornaments; moreover, it is bulky and fragile. As for spices, Manila complains that the market for these in Nueva España is already appropriated by the merchants of España who send spices in the trading-fleets to Vera Cruz; in the fleet (of seventeen vessels) commanded by Don Fernando Chacón was carried the enormous amount of 170,737 libras of cinnamon, and more than 70,986 of pepper and cloves, besides various bags and chests of all these kinds of spice the weight of which was not noted. The only products of the islands which have commercial value in Nueva España are wax, lampotes, Ilocos blankets, and cordage; and the value of all that is exported of these, even counting with them the previously mentioned gold chains, does not go beyond 30,000 pesos. The linen goods have hitherto been shipped from Manila to Acapulco only to fill in empty spaces in the allotments of lading, and have amounted to hardly 60,000 pesos, on which very little profit was obtained. If the main part of the galleon’s cargo has to be composed of these linens, the Acapulco market will be overstocked with them, and the prices there will be so low that Manila cannot afford to send another cargo of this sort. Moreover, as these goods are procured from the foreign factories at Batavia, Madrasta, Patàn, Punticheri, and Vengala, as soon as the traders at those posts understand that the Manila galleons must carry most of their lading in goods to be procured at those factories they will advance their prices enormously, and the galleon will be compelled to sail in ballast, and then only to procure the situado. The floss and raw silk which is the only form of that product permitted to Manila is so bulky a commodity, and the consumption of it in Nueva España is so small, that it too has been shipped only to fill up space; moreover, “for several years it has been increasing in cost, on account of the great amount of it which the Dutch, English, and French obtain from China for the fabrics which are manufactured in Europe.” The deputies, to substantiate their statements, refer to the official reports of the viceroys of Nueva España, and offer to bring forward evidence in their favor from various persons at Madrid who have resided in Filipinas. They claim that the Manila trade in silken fabrics has not harmed the merchants of España, since the silk which is produced in that country is hardly sufficient to supply the home demand, and it is necessary to bring to it foreign silks—exporting to Nueva España some goods which have little demand in España; but even these do not occupy one hundred and twenty-five toneladas of space. The greater part of the silk goods woven in España are silks and velvets, and if the value of these has fallen, it is not the importation of Chinese goods which has caused this, but the change in the style of magistrates’ robes,23 in which those goods are used, and the small amount of them that is used in the military service. “Just as in these kingdoms [of España] most of the persons of rank are clothed in no other fabrics than those which come from foreign countries on account of either their better quality or their luster—so the same thing occurs in Nueva España, where they follow in everything the customs of Europa; and for this reason most of the silken fabrics which are carried thither in the trading-fleets are from the kingdoms of Inglaterra and Francia, and the provinces of Holanda—as silver and gold tissues, brocades and laces of the same sort; hose, and other stuffs, the sale of which does not injure that of the Chinese silks, on account of the greater value placed upon the former. Therefore, as the silken fabrics which the aforesaid shippers carry [to Nueva España] are not all from the mills of España, but these Spanish silks are in very small quantity and of the sort which are rejected here, it is evident that the injury is not to the commerce of Andalucia, but to the foreign nations. For, since all the gold and silver which comes [to España] is carried in trading-fleets and galleons—except what is obtained for wines, brandies, oil, and other products—the slender profits which the traders of Philipinas gain from the sale of the Chinese fabrics will also be given up for their benefit by the foreigners on account of the abundance of the products from their own mills which they will ship to Cadiz, in order that these may be carried to the Indias.” The argument is repeated, that most of the profits in the Acapulco trade must go to European foreigners, if it is restricted to the few and unimportant products of the islands, and thus the enemies of España are strengthened; while if the Chinese trade is allowed those profits fall into the hands of people who cannot and will not injure the Spanish power. The enforcement of the decree will injure not only the citizens of Manila, but the revenues of the crown, which amount annually to an average of 228,557 pesos, besides the duties produced by the Acapulco trade, which amount to 250,000 pesos more. The treasury will have no means to buy the rice of the Indians, their only valuable product; the Sangleys will have no occasion to trade at Manila, which will lose the amount of their licenses (more than 23,000 pesos), besides the import duties and alcabalas which they pay there, which amount to more than 37,000 pesos; and the situado sent to both the Philippines and Marianas must be taken from the Mexican treasury directly, which will be too heavy a burden for it. The king is reminded of the poverty of the Philippines in all natural resources save rice, and their dependence on the Acapulco traffic for money, clothing, and all other needs save that of food. The recent building of two small galleons has caused the treasury a great amount of expense, quite disproportionate to that of the one large vessel which hitherto had been used for the Acapulco trade—to say nothing of the extra expense caused by the duplication of crews, officers, and soldiers which is thus rendered necessary. The smaller ships are less able to resist either storms or pirates, and the few experienced seamen in the islands must be divided between them, when they should be massed in one vessel. Again is mentioned the dependence of the missions, and the conversion of the heathen, upon the Acapulco trade; the Indian villages that are more or less christianized now number 457, with 111,683 families, who are in danger of relapsing into heathenism, or being converted to Mahometanism, if the missions cannot be kept up.]