Note 7 — Its Early History

It is said that whilst the charter of the “Real Compañia de Filipinas” was still in force (1785–1830) a Mr. Butler7 solicited permission to reside in and open up a trade between Manila and foreign ports; but his petition was held to be monstrous and grievously dangerous to the political security of the Colony; hence it was rejected. The Spaniards had had very good reason to doubt foreign intercourse after their experience of 1738, when they preferred a war with England to a gross abuse of the Asiento contract entered into under the Treaty of Utrecht.8 Subsequently the American firm already mentioned, Russell & Sturgis, made a request to be allowed to trade, which, having the support of the Gov.-General of the day, was granted; and Mr. Butler, taking advantage of this recent precedent, also succeeded in founding a commercial house in Manila. To these foreigners is due the initiation of the traffic in those products which became the staple trade of the Colony and paved the way for the bulk of the business being, as it is to-day, in the hands of European and American merchants.