Note 5 — Its Early History

Commercial depression in the Philippines had never been so marked, and the position of affairs was made known to the King in a petition, which elicited the Royal Decree dated April 8, 1734. It provided that the value of exports should thenceforth not exceed ₱500,000, and the amount permitted to return was also raised to ₱1,000,000 (always on the supposition that 100 per cent. over cost laid down would be realized). The dues and taxes paid in Acapulco on arrival, and the dues paid in Manila on starting, amounted to 17 per cent. of the million expected to return.5 This covered the whole cost of maintenance of ships, salaries, freight, and charges of all kinds which were paid by Government in the first instance, and then recovered from the Consulado.