Note 12 — COMMERCE OF THE PHILIPPINES WITH NUEVA ESPAÑA

215–221. [It was supposed that the foregoing decree had settled the question of the Manila-Acapulco trade “for many years;” but on November 27, 1735, the king sent to his Council a memorial by Don Joseph Lopez Pintado, consul and deputy of the commerce of Cadiz, and an informatory report which had been made on that subject by the lieutenant-general of marine, Don Manuel Lopez Pintado; on these papers the king asked for the advice and opinions of the Council. The memorial of Cadiz states the two main points of the controversy: the first is, whether or not the commerce of España is injured by the inclusion of the Chinese silks and ribbons in the cargo of the Manila galleon. Cadiz has long claimed that this was so, while Manila answered that that trade was necessary for the maintenance of the islands, “and for the propagation of the holy gospel in them”—which argument, Cadiz says, “has always been the Achilles to oppose the just representations of the commerce of España.” The second point is whether, if the silks are prohibited to Manila traders, any goods of equal value remain to them by which they can secure the returns which they claim to need. The first point is stated as in previous remonstrances, that the Manila trade in Chinese silks has ruined both the sale and the manufacture of Spanish silks, especially since the execution of the decree of 1724; the latter goods can now find no market in America, for the Chinese silks have made their way not only into Nueva España but into Peru, the colonies on the northern coast of South America, and all the Windward Islands, “nor can their importation be checked by all the efforts and vigilance of the officials.” Manila has probably abused the royal liberality and has transgressed the limits of its permission; for the deputies and appraisers there have valued the goods so low at Manila that at Acapulco they obtain for them three or four times the amount permitted to them by royal decree—for confirmation of which statement is cited the report made by order of the viceroy of Mexico, on August 23, 1731, by Don Francisco de Fagoaga, one of the leading merchants of Mexico, who was a witness of this infraction of law. It is these abuses of the Manila permission which aroused the viceroy to issue the orders of 1732, hoping to check the illegal excess therein. Cadiz now offers to surrender to Manila “forever the traffic and transportation of all the cinnamon, pepper, and cloves which the kingdom of Nueva España can consume,” as also all the trade in chintzes of various qualities, and in silk raw and spun; in these Manila ought to find sufficient compensation for giving up the silks, but, even if it does not, its losses cannot compare with those of España from the permission given to Manila to trade in those goods, and the interests of the former ought to be preferred. General Pintado’s informatory report makes a bitter complaint of the frauds and infringements in the Manila permission to trade.12 He states that in the first galleon sent to Acapulco under the regulation of 1726 (which entered Acapulco in the year 1729)13 goods were confiscated by order of the viceroy to the following amount: 285 bales, 49 bags of cinnamon containing 7,105 libras, more than a thousand arrobas of wax, nineteen chests of silk fabrics, and many other goods. In the second galleon (that of 1730) were confiscated 319 bales, and 694 piezas of various bulky goods—cinnamon, wax, pepper, storax, and porcelain. Cadiz claims that at first (about 1690) the Chinese goods carried to Nueva España were in so small quantity and so inferior quality “that no one valued such goods; nor did these injure the commerce of España or its manufactures, until, two ships of Philipinas having been wrecked, that same viceroy [Conde de Galvez], as a measure of precaution, despatched General Don Andrés de Arriola with a patache to ascertain the cause for the delay in the arrival of those ships; and, that commander having returned to Acapulco in the following year, 1692, with this occasion the citizens of Mexico promoted the plan of furnishing capital for another new ship. Various citizens of Mexico, and others from Perù, went thither, and, carrying specimens of our [Spanish] fabrics, started the establishment [of factories] in Pequin, Cantòn, and China; [they also set the Chinese to work] to make these goods of finer quality, and to manufacture fabrics like those specimens, and of the same quality. Both qualities were introduced [into Nueva España] by that ship and by those which regularly followed it, in proportion to the amount that they found to be consumed in Nueva España; and this was considerable, on account of the fact that four years intervened between the trading-fleet of Conde de Sanrrami and that of Don Ignacio de Barrios, and seven years from that of the latter to the fleet of Don Manuel de Velasco and its return to España. That was the time when the traders of Philipinas reached the height of their traffic in the silk fabrics; and, finding in those years that there was no trading-fleet in Nueva España, they gathered in the rich treasures against which the consulate and commerce of Andalucia have with reason remonstrated.” Pintado declares that he has been an eyewitness of these things ever since 1692, and that only during that time has Manila enjoyed this silk trade which it now claims as belonging to it by free possession and long usage. Cadiz has frequently protested against the injury thus caused to the silk industry of España, but has not before exposed the real condition of affairs; but, “even if the 300,000 pesos of the permission which was granted and enjoyed up to the year 1728 inclusive had all been spent for goods of the silk made in China, without [the galleon] carrying anything else, at the prices which they were fairly worth in Manila, and even if twice as much were furnished at these prices, how was that trade [of Manila] capable of supplying [with those goods] Nueva España, the Windward Islands [Islas de Barlobento], the new kingdom of Granada, Tierra-Firme, and Perù, as we have seen for the last forty years, when, as those who are intelligent [in these matters] understand, it is not possible to do so even with two millions’ worth of goods of the said class?” Manila is accused of fraud, bad faith, and deceit in the conduct of that trade and in misrepresenting it to the government; and the royal officials, of collusion in the illegal trade, and disobedience to the royal decrees which commanded that the original invoices and sworn statements of goods should be sent to the Council of the Indias. The only way to check this procedure is to prohibit entirely to Manila the trade in Chinese silks; and Cadiz offers to make up this lack by ceding to Manila the entire spice trade in Nueva España. The following estimate, based on the amount of spices carried thither by the trading-fleet, is made of the value of this trade: Of cinnamon, that country needs 250,000 libras annually, which, estimated at eight silver reals a libra (although it has been worth at Manila nine reals), would amount to 250,000 pesos; 100,000 libras of pepper, at one silver real in Manila, 12,500 pesos; 10,000 libras of cloves, at twelve reals, 15,000 pesos; in all, 277,500 pesos, which is somewhat more than half of the amount of investment now allowed to Manila. “It is certain that if only the merchants of Philipinas trade in these commodities, they will advance the price more than 150 per cent, obtaining their money in Acapulco.” Besides the spices, they have permission to trade in many other commodities which are generally desirable for the trade with Nueva España, where the consumption of these is great; and there is more than enough of these to fill out the 500,000 pesos’ worth of goods allowed them. The result of this arrangement would be to revive the ruined silk industry of España (and “experience makes it plain to us that there is no other fabric than silk, of our own weaving, which can produce any profits”), besides retaining within the domains of España the money which now goes to heathens and infidels. “While the commerce of Philipinas shall last, as it is now carried on, neither the conquests, nor the reduction of the Indians, will proceed with the increase that people confidently believe; but rather these will be diminished,” because the Spaniards who have money care only for commerce and not for the propagation of the faith. This is proved by their neglect of the interests of the natives in Luzón; for “we do not see that the Spaniards apply themselves to what is so much their obligation, since they so loudly profess it; and consequently they will not reëstablish the manufactures of cotton fabrics, which can very well be done in those same islands—by which industry the natives furnish this product, and others which are yielded there can be more easily obtained; and in this case it would be money for those citizens if they would apply themselves to this enterprise, instead of the commerce which they have with the Chinese and other infidels.” These papers were, as usual, sent to the fiscal, whose reply came before the Council on January 8, 1735. He disapproves the proposals of Cadiz, since the prices of cinnamon and other commodities are liable to fluctuation, and the amount of profit for Manila would be uncertain and variable; cinnamon is a bulky product, and the necessary amount could not be carried in the galleon now assigned to the Manila trade; the merchants could not be sure of a favorable sale at Acapulco, “which at the fairs is secured by the diversity and abundance of commodities;” moreover, the Dutch, from whom the cinnamon was bought, would raise its price as soon as they should learn that the Spaniards of Filipinas were the only ones to whom was permitted the shipment of spices to America. If the Manila shippers failed to secure the full amount for returns, the royal treasury would not receive as much from customs duties as usual, and must therefore make up the resulting deficiency in the situado sent to the islands. “It would also follow that even if the merchants of España should religiously observe the agreement which they propose, of not trading in that merchandise, the illicit importations into that kingdom [of Nueva España] would be attempted with even greater activity; and as in that country there is so general a use of chocolate, in the manufacture of which would be consumed the greater part of the cinnamon, all that extensive kingdom would find itself compelled to buy [cinnamon] at one port only, and through one agency—being always exposed [to the danger] that in a year when the Philipinas ship could not make the voyage (as has happened), or encountered mishaps through accidents which might occur, that country would experience the deprivation of this article of sustenance, or at least a great scarcity in a commodity so generally used, as is well known.” The fiscal also reminds the Council that the trade in spices may be shared with the Royal Company of England, which is “authorized to trade, in its annual ship, in the goods which it shall choose, in which it could include the cinnamon, and through this agency introduce it into Mexico; in this it would seriously injure the commerce of Manila during all the time which remains for the fulfilment of this agreement, and would be opposed to the freedom of his Majesty in proroguing it, or making it anew with some other power. Such action could not be hindered by the commerce of España, and as little by the Royal Company of Cadiz, founded by his Majesty on March 29, 1733, which could introduce this commodity into Mexico.” The fiscal recommends that a junta be convened in Mexico to discuss this subject, and give their opinions and advice thereon to the Council; and that Manila and Cadiz be invited to send representatives to this conference. On February 9 the Council agreed to send to the deputies of Filipinas a copy of the Cadiz memorial, with a statement of the arguments advanced by General Pintado (but suppressing the name of the author), in order that they might answer it.]