Note 2 — Its Early History

For the support of the Philippine administration Mexico remitted back to Manila, on the return of the galleon, a certain percentage of the realized value of the above-mentioned official cargo, but seeing that in any case—whether the Philippine Treasury were flourishing or not—a certain sum was absolutely necessary for the maintenance of the Colony, this remittance, known as the “Real Situado,” or royal subsidy, was, from time to time, fixed.2