Note 14 — COMMERCE OF THE PHILIPPINES WITH NUEVA ESPAÑA

223–224. [The Filipinas deputies made answer to this attack by Cadiz, in a long memorial dated March 30, 1735. Manila claims to have enjoyed the possession of the silk trade with China from the discovery of the islands, and that these goods were never excluded from its trade with Nueva España—to which country that trade was not confined until the decrees of 1587–93—until 1720, when, at the instance of Andalusia, a prohibition of the Chinese silks was made, although it lasted only four years. The charges by Cadiz of frauds in the lading of the Manila galleon have no foundation in fact; the cited statement by Don Francisco Fagoaga does not appear among the documents on the subject, and is “a fanciful supposition;” and the valuations are made by appraisers appointed by the governor of Filipinas, under their solemn oath to fulfil their duties faithfully and well, while the royal fiscal acts as superintendent of both the valuations and the lading. Manila’s former assertions refuting in detail, and with citations from the official records of Manila and Acapulco, the accusations of infractions and excess of the permission, are repeated here, as also the statements regarding the Mexican junta of 1732 and the concessions made to the Company of Philipinas, formed among the Cadiz shippers. The overstocking of the markets in Nueva España is caused, not by the silk goods shipped from Manila, but by the enormous quantities of cloth and stuffs (largely manufactured outside of España) sent to that country by the Cadiz merchants; they have sent eighteen or twenty ships14 in each fleet, although formerly there were but ten or twelve—“on account of which excess his Majesty has finally resolved that only eight shall go in the next armada, without doubt because of the great outcry regarding this by the commerce of Mexico.” Moreover, those same traders of Cadiz have secured the concession of fifty toneladas of Chinese silks for each ship that they may send out, to be sold in America; the little that is shipped from Manila ought not to be considered in comparison with that traffic, and is intended, besides, for the poorer classes, who cannot afford to buy the more expensive fabrics. If the Western Indias have been inundated with Chinese silks, it is caused not by the shipments from Manila, but by the great trade in these goods which is carried on by the English and Dutch, who have factories and warehouses in Jamayca and Curazau [i.e., Curaçao], which they supply from China and other Oriental countries with fleets of more than forty ships, and trade those goods in the American islands (as Cadiz is well aware). As for the offer of Cadiz to yield to Manila all the trade in spices to Nueva España, that trade has never been prohibited to Manila nor has it been the exclusive privilege of Cadiz, so the offer amounts to nothing. Nor has Cadiz any right to dictate to Nueva España its source of supply for spices, since both the English and the Cadiz companies have the privilege of trading there in these goods; moreover, large quantities of pepper are produced in the Mexican districts of Chiapa and Tabasco; both these causes tend to injure the sale of spices carried from Manila thither. As these spices (except pepper, which has but little value in any case) are monopolized by the Dutch, they are likely to refuse to sell them to the Filipinas merchants (as has occurred frequently before), because the Dutch need them for lading their own fleets; or they will raise the prices, supposing that Filipinas must buy from them. The cinnamon is so bulky (as it cannot be pressed) that much space on the galleon is thus lost, as well as by the necessity of carrying two-thirds more ballast than usual, because of the light weight of the cinnamon; and the voyage of the Manila galleon is incomparably longer, more difficult, and more perilous than that of the Spanish ships to America. The amount of spices allotted to the galleon by Pintado would fill all its available capacity, leaving no room for any other goods; and it would be impossible for the shippers to secure any profit from such a cargo—for which they could not find a market in Nueva España, for lack of the other goods. Nor would it be possible to dispose of more than half the amount of pepper and cloves which Cadiz proposes for them, since that is enough to supply the needs of that country. In any case, the profit on the spices will be insufficient, if Manila is restricted to these goods, without the silks, to produce the amount which those islands need for their support. This is proved by tabulated statements of the prices, costs, and returns on each one of the three kinds of spices concerned; these we present here in somewhat condensed form. A churlo15 of cinnamon, of the measure which the commerce of Manila orders to be observed, weighs 150 libras gross, but the net weight is twelve libras less, after deducting the weight of the coverings and wrappings. The cost in Manila is nine silver reals a libra; for the space which the churlo occupies is usually paid forty pesos; for porterage, royal duties, notary’s fees, etc., 8 pesos. On the voyage it loses two per cent in weight, so that but 135 libras remain for sale; it brings at Acapulco eighteen reals a libra, amounting to 303 pesos, 6 reals. From this must be deducted the following payments: royal duties, 32 pesos; unlading at Acapulco, notary’s fees, etc., 7 pesos, 2 reals; commission to the agent for its sale, at five per cent, 15 pesos, 1½ reals; five per cent royal duties on shipment of the returns to Manila, 12 pesos, 3 reals; two and ½ per cent on the net returns, paid to the keeper of the silver, 5 pesos, 6½ reals. From these figures it appears that it costs 203 pesos, 2 reals to place the churlo of cinnamon on shipboard at Manila, and 72 pesos, 5 reals to sell it and return the money to the shipper there; deducting these expenses from the amount received for its sale, the profit of the shipper is but 27 pesos, 7 reals, or about 13½ per cent. Pepper: 100,000 libras of this product make 4,000 arrobas; this quantity (since each pieza is estimated at six arrobas or 150 libras, without the wrappers) makes 666 piezas. Pepper is sold at Manila at one real a libra, so that the pieza costs for purchase 18 pesos, 6 reals; it costs 43 pesos more to place it on the ship, and 18 pesos, 7 reals besides for expenses of sale and shipment of returns—in all, 80 pesos, 5 reals. At Acapulco it would sell at four reals a libra, the pieza, therefore, bringing 75 pesos; the shipper, then, instead of gaining any profit has lost 5 pesos 5 reals by the transaction. Cloves: These are packed in chests containing 150 libras each; the purchase at Manila costs twelve reals a libra, so the chest costs 225 pesos. Add to this the cost of placing it aboard, duties, cost of unlading and sale at Acapulco, and for the shipment of returns, 146 pesos, 7 reals, and the total cost is 371 pesos, 7 reals. The cloves shrink on the voyage, involving a wastage of three per cent; at Acapulco they sell at three pesos a libra, and the 145½ libras thus bring 436 pesos, 4 reals—the net profit to the shipper being 64 pesos, 5 reals, or about 24 per cent. The prices quoted above are based on those which have been current in Manila and Acapulco for the past five years. It is evident, therefore, that the spice trade could not compensate in any way for the loss of that in silks; nor has Cadiz made allowance for the possible failure of a galleon to reach Acapulco, which would ruin the market for the one which should arrive in the following year, since the spices thus lacking would be supplied through the Atlantic ports of Nueva España. The customs duties would be much less on a cargo of spices, and thus impair the royal revenues; for each chest of silk pays 55 pesos for duties, and each bag of cinnamon only 35. The incomes of the Spaniards in Filipinas would be so reduced that they could no longer defend the islands from the Moro pirates, or from the Dutch, who would thus become masters of them; and the Spanish colony and the Christian churches formed among the natives would alike be ruined.]