Note 3 — COMMERCE OF THE PHILIPPINES WITH NUEVA ESPAÑA

163–185. [The viceroy, Marqués de Casa-Fuerte, wrote to one of the royal Council, Don Joseph Patiño (November 1, 1731), giving his opinion in regard to the regulation of the Philippine commerce. Estimating roughly the returns from the annual Manila galleon at 2,000,000 pesos when before the sum of 600,000 only was allowed, he regards the present permission as injurious to the commerce of España and to the commercial interests of Nueva España as well; for three vessels come from Philipinas to one trading-fleet from España, and, by carrying out of the country some six millions of pesos, they render the disposal of the merchandise brought on the fleets difficult, besides handing over the treasures of the Spanish domain to infidels. He advocates the reduction of the permission to such amount as will produce not more than 1,000,000 pesos of returns for Manila; and thinks that there is foundation for the remonstrances of the Spanish merchants, although they have exaggerated the amount of the money sent to Manila and the damage to their own trade therefrom. That damage arises almost entirely from the Chinese silks and ribbons sent to Acapulco, which at the fair in that year (1731) were sold for the estimated amount of a million pesos; he therefore recommends that Manila be strictly prohibited from shipping to Acapulco any silk, of any kind or quality whatsoever, except raw, twisted, and floss silk, hose, and white sayasayas; and that the value and amount of all the goods sent thither be judiciously regulated, so that prices may be kept within bounds. This result also depends considerably on the fact that in Mexico large quantities of cotton are raised, from which are made various fabrics; “and in the bishopric of La Puebla the elephant stuffs (which are a sort of Rouen cloth, but made from cotton, which serves for the shirts of very poor people, and for the linings of garments, like the thin hollands), which form a considerable part of the cargo of the ship from Philipinas, are so well imitated that they would and do check a rise in the prices of the cotton goods from China. In this City [of Mexico] all the raw silk which comes from Philipinas (a sufficient amount, so that the fleets [from España] do not bring it) is worked up, and in this industry many poor persons are employed, thus obtaining a suitable means of livelihood; and the fabrics which are made by them are consumed in this kingdom only.” With these restrictions and precautions, the viceroy would recommend that the regulations of 1726 continue. He would also remit the payment now made by the citizens of 20,000 pesos annually to the treasury; but this loss, and that in the customs duties from the lack of the Chinese silks, would be recompensed by the better sales which would thus be afforded to the Spanish silk goods. In January, 1732, the viceroy consulted his fiscal, who thought that the Manila trade should be restricted, say to a million pesos of investments, and prohibiting the Chinese silks; that this would benefit the Spanish traders, and would also secure the opening of Peru to trade with Nueva España. In the following month, the viceroy called together a junta of auditors and other experienced persons to discuss this subject; they favored Manila, and advised that no definite action be taken as yet. The viceroy, hearing that from Mexico and other cities more than 1,500,000 pesos in silver was being sent to Acapulco, presumably intended for Filipinas, felt the necessity of taking measures to prevent the despatch of too much merchandise from Manila in the future galleons, since the five years’ term allowed to that city would expire in 1733. He therefore referred to the junta the question whether he should write to Manila that the galleon of 1734 must come with a cargo in accordance with the former plan of 300,000 pesos’ investment and 600,000 for returns; and whether he should enforce the decree of 1720 by prohibiting that galleon from carrying any Chinese silks. The junta decided both these questions in the affirmative, advising the viceroy to notify Manila accordingly—these regulations to be made, provided that the king meanwhile did not give new orders. The viceroy therefore sent despatches to Don Fernando Valdés Tamón, the governor of Filipinas, and to the city of Manila, to that effect (March 20 and 25, 1732);3 and on April 3 following sent a report of all these proceedings to Don Joseph Patiño. He recommends that Manila be allowed only 3,000 piezas in all, of which only 100 chests be permitted for the finer grades of cotton goods, entirely prohibiting the silk goods from China, except those mentioned in his letter of November 1 preceding; that besides the 3,000 piezas, the citizens be allowed to send wax and porcelain at their pleasure, as these are commodities of little value, and needed by Nueva España; that any smuggled silks be publicly burned, and very rigorous penalties imposed on transgressors; that more rigorous inspection of the lading be made at Manila, to prevent any contraband goods being sent, not only in the shipments of traders, but in the chests of passengers, officers, and others on the galleons; that suspected packages be opened at Acapulco; that the returns sent back to Manila be in no case allowed to exceed a million of pesos; and that the contribution of 20,000 pesos be remitted to the Manila shippers.]