PERIOD VII

PERIOD VIIOf what was done in Manila on receiving the decree of October 27, 1720. Recourse to the Council by their deputies. Reply from the commerce of Andalucia, and what was decided in regard to this matter in the year 1724.71. On August 2, 1722, the governor, Marqués de Torre-Campo, received at Manila the ordinance despatched on October 27, 1720, of which the preceding “Period” speaks. Having caused this decree to be published by a proclamation in that city, record of it was made in the offices, and it was communicated to the municipal council in open session. The cabildo protested against it, promising to obey, but resolving to set forth to the governor in the first place, and afterward to his Majesty, the damages and troubles which would result from its execution to religion, to the royal treasury, and to the greater welfare of those islands, from their not continuing to enjoy the permission to trade in fabrics of silk, which they had possessed for more than one hundred and forty years. They would therefore be obliged to entreat that his Majesty give them permission to retire, with their families, to the lands and domains of his Majesty which they should consider most suitable.72. In a long memorial presented to the governor was set forth in detail the motives on which they based this action; and when orders had been given that the fiscal of that Audiencia should examine it, although he recognized that their statements were correct, and that the islands could not maintain themselves on the system of commerce which had been laid down, he demanded that orders should be givento fulfil the cited royal decree, and that the city and merchants should appeal to his Majesty who, there was reason to expect, would take care of his vassals there, and of the interests, both spiritual and temporal, which were concerned in it—and the governor gave orders to that effect. Although the city and the merchants by a second memorial insisted upon a suspension of the above regulation, demanding that, in case there was no room for it and for continuing their trade in silks and stuffs as heretofore, at least he should declare that they were not obliged to invest their funds in the commodities which were prescribed to them, as it would occasion their total ruin (and they demonstrated this): nevertheless, the governor, bearing in mind that the damages to his Majesty would be no less, if the galleon for that year should go empty, commanded that, in accordance with the amount permitted by the cited regulation, they should make the distribution of the [permits to ship] merchandise as his Majesty had commanded. The city and the merchants, with the hope that his Majesty would give attention to the urgent representations that would be made by the commissaries whom it had been agreed to despatch to the court, agreed to continue the commerce meanwhile conformably to the despatch of 1720—sacrificing out of respect to his Majesty, and in order to maintain the religion established in those islands, their own wealth, which necessarily must be ruined and lost in a commerce so useless and unfortunate as that to which they were reduced; since the bulky commodities, on account of their abundance and poor manufacture, would not allow them to gain ten per cent, since the risks extended to fifty per cent.73. The city of Manila, in order to render commendable and frame in more formal manner its appeal from the aforesaid decree of October 27, 1720, which it must bring before the royal person—not only for the continuation of the traffic in the silken fabrics, but also for the increase of its permission from the three hundred thousand pesos which it was enjoying to five hundred thousand—came before the Audiencia and presented before it the arguments and reasons in favor of both these requests. After explaining the losses that would arise from the desolation and depopulation to which the islands would come (which the Audiencia took into consideration in its memorial, as will be noted) the city added that when in Manila there were only 230 citizens (which was in the years 1636–37) returns of 500,000 pesos were permitted to them; but since in the year 1722 the city had 882 citizens, and there was an increase in the charitable foundations, which placed 150,000 pesos at risk on each galleon, the necessity was evident of increasing the permission to 500,000 pesos—350,000 pesos for the citizens, and 150,000 for the charitable foundations. This increase in the number of citizens made necessary the expansion of the permission, from the very fact that in the year 1702, in which there were only 400 citizens, his Majesty had permitted 300,000 pesos of investments, and 600,000 pesos in returns.74. It was also expedient that permission be given to the seamen to transport in their own chests goods up to the amount of 40,000 pesos of investment, on account of the importance of interesting them in the defense,15and in order to facilitate that in provincesso remote there should be Spaniards who would serve as artillerists and seamen, since their wages alone, in voyages so arduous and long, could not be sufficient incentive. In order that that commerce might be regulated and infractions regarding the lading be avoided, an arrangement was proposed to his Majesty in which the annual investment was reduced to 3,200 piezas of the regular sizes—half-bundles, bags, sacks, [churlos,balsas(forbolsas)] cakes of wax, and other like packages of bulky commodities, and three hundred half-chests of goods from China, in order to supplement the said 3,20016piezas. Consequently, at the despatch of the galleon there would be nothing else to do except to distribute the said piezas and issue the permits for its lading—collecting 10,000 pesos for the royal duties, at the rate of two per cent, for this purpose rating the 3,200 piezas at 128 pesos and 1 tomin, and the half-chests at 300 pesos and pay at Acapulco thirteen per cent, regulating the 3,200 piezas at 256 pesos and 2 tomìns, and the 300 half-chests at 600 pesos each. This would result in the royal duties at both ports amounting to 140,000 pesos, and in return would be brought back, for the account of the permission, a million pesos; and thus would be avoided sworn declarations, and other dubious measures to which the previous regulations were subjected.75. The Audiencia of Manila in a letter of November 9, 1722, taking into consideration another which they had written on August 6, 1713, in whichthey set forth the losses which that commerce had suffered—in [the wreck of] their galleons, the unsuccessful fairs of Acapulco, and the excessive pecuniary extortions that they had suffered in Acapulco on account of the royal duties and in other ways—to the end that new measures might be taken by his Majesty for the rigorous reëstablishment of the commerce of those islands, describe (influenced by the urgent representations made by the city and by previous information obtained by each auditor) the affliction which has been caused by the new decree of October 27, 1720. They declared that they judged necessary for the maintenance of these islands and the propagation of the holy gospel, not only the permission for the silk and the stuffs prohibited by the cited despatch, but also the increase of the permission from 300,000 to 500,000 pesos. The Audiencia affirmed that the Spaniards could not exist without this commerce, because the culture of the fields was in the hands of the natives and the management of the guilds [gremios] in those of the Sangleys and their mestizos; that the salaries and pay with which the military officers, soldiers, and civil officials were recompensed did not reach half the annual expense of their families, in consideration of which it was commanded to include then the distribution of the lading of the galleons; and that, while the permitted amount was 300,000 pesos, and the number of citizens so great, the investment of each one, even if all were alike in wealth and services, did not amount to 400 pesos, the profit on which was not enough for the proper support of a man who was not actually poor, and on this account they could not increase their wealth. When the Europeans see that it is useless to transport goodsto those regions where there is not, outside of commerce, any motive which would induce them to remain, or which would bring other new traders, those who consider the matter have reason to fear that in a few years the capitals of those who live there will be consumed, and that others will refuse to enter into the same experience; then Philipinas will be left to the Indians and Sangleys, the gospel ministers without the guards of Spaniards for their protection, the military posts without garrisons, the natives without any control, and everything on the blink of a deplorable ruin.76. That with the commodities which were allowed by the said royal decree, the lading of the annual galleon could not reach the gross amount of the 300,000 pesos of the commission. From this it resulted that that amount was diminished and the traders exposed to evident loss in Nueva España, on account of the abundance of those very articles of merchandise; and that would result in cutting off the proceeds of the many and large charitable funds, founded on the merchandise risked in those galleons, for the support of clergymen, hospitals, convents, divine worship, dowries to orphan girls, and many other alms—which, even though they were no more than those which were administered by the brotherhood of La Misericordia, and by the tertiary Order of St. Francis, were of the greatest importance, and their failure a most notable affliction to all the islands.77. That by the exclusion of the stuffs and silks, which were the principal articles of commerce of the islands with China, all that commerce [i.e., with Nueva España] would come to an end, since all the rest was of so little value that it could not, withoutthe substantial aid of the silks, allow any profit. From this would result another great difficulty in the propagation of the holy gospel, that if the Chinese do not come to the trade they will lose the opportunity for conversion which so many have attained, attracted by familiar intercourse with the Spaniards, with the occasion of this commerce, and there would be great difficulty in introducing the gospel ministers into those dominions; and these are motives which have always engaged the chief attention of his Majesty, to judge by the laws. The Audiencia concluded by expressing the opinion thatthe prohibition of the silks should be removed, and an increase be granted in the permission to 500,000 pesos, with the number of piezas which the city was proposing—this regulation being made in proportion to the number of citizens, in order that the islands might maintain themselves, and thus obviate the serious inconveniences that were experienced; and, as for the duties which the city proposed, this question was referred to the decision of the Council.78. The fiscal of that Audiencia, Don Pedro Bedoya,17in a letter of November 15, in the same year, 1722, in consequence of the duplicate copy which he received of the royal decree of October 27, 1720, states on his part—after repeating his previous opinion regarding its execution, as given to the city of Manila, the action taken by the governor, the recourse by the city to the Audiencia, and the report made by that body—what his opinion is, in fulfilment of his obligation, in regard to the memorial of the city and the merchants; it is brought under four heads, which are:IThe necessary dependence which the maintenance of these islands has on the commerce, in order that the Spaniards may maintain themselves in them; and the benefit from the charitable funds, in which are annually expended 75,000 pesos—which sum proceeds from the trading of the 150,000 pesos which are carried in the annual galleon on account of the said charitable funds.IIThat if the prohibition of the stuffs and other commodities from China remains, their former control of the trade therein will be disturbed, and the royal decrees issued for this purpose (some of which are compiled18) will be subverted—such as those which command that the commodities which they convey shall be bought from the Sangleys; and that if this [Chinese] commerce is prohibited that of Nueva España becomes unprofitable, as the bulky commodities do not fill up the amount of the permitted trade, and it will not be possible to pay the cost of traffic in them without those from China.IIIThat for the maintenance of these islands, the support of the Spaniards, and the success of the charitable funds, it is necessary that the amount permitted be increased to 500,000 pesos and a million of returns, with the inclusion of the fabrics from China.IVThe regulation of the lading, in order to avoid infractions of the law [is necessary]; as also that the dubious and burdensome obligation of making sworn declarations be laid aside, and that the quality and number of the commodities which are transported must appear in the registers.79. [These points made by the fiscal are discussed at length by him in a report addressed to the king, dated November 15, 1722. Among other things, he states that the merchants prefer one galleon of 800 or 900 tons burden to two of 500 tons each, as being less expensive (on account of requiring fewer officers and men), safer (as carrying larger cannon) and less exposed to danger from either enemies or storms, than the two smaller vessels; that the industry and love of gain displayed by the Chinese who reside in the islands have secured to them the control of all the crafts and useful arts, and of the commerce of the islands save that with Nueva España, which is therefore the only resource of the Spanish citizens; that the current rate of income19is but five per cent in the islands, while thatcommerce brings in fifty per cent; that most of the rural estates [haciendas] are possessed by the religious orders; that houses constitute property of little value, on account of the frequent fires and earthquakes; and that consequently the charitable foundations [obras pias] have been necessarily based on the Acapulco trade. It is also declared that the annual situado from Mexico amounts to no more than 50,000 or 60,000 pesos, while the annual budget of the government expenses amounts to 500,000 pesos, which the royal treasury of the islands must pay from the proceeds of the duties on merchandise. The request of the Manila citizens for a permission to send 500,000 pesos’ worth, in 3,500 piezas, is very moderate; as the trade has been conducted, the 300,000 pesos’ worth has made 4,798 piezas, for the last five years—which is evidence of the infractions of law which have been committed in that commerce. Moreover, the proposition of the city that the duties belonging to the crown be levied on the number of the piezas, will be likely to prevent many of the frauds which are now practiced in this direction. The fiscal opposes the request of the city that the seamen be allowed an increase of the small amount already allowed them, free from duties, for investment on their own account, declaring that it will but increase the illegal trade already prevalent, and that the proposition to allow them 40,000 pesos’worth of trade (with twice that amount in returns for the merchandise) would allow the seamen a greater investment than even the citizens, since the former average only 115 men to each galleon. He advises that the officers of the ships be permitted to have a share in the lading of the ship, in place of their present wages; and that one large galleon be occupied in the trade to Acapulco, rather than two small ones. He reminds the king of the opening afforded by the trade between Manila and China for the conversion of the Chinese and the entrance of the gospel into that heathen empire.]80. [The treasury officials at Manila also write, seconding the proposal to despatch one large galleon; and they add that the royal exchequer of the islands will be ruined if the decree of 1720 is enforced, “for the commerce would cease, and consequently the royal duties which it was producing.”]81. The archbishop of Manila, the dean and cabildo of that church, and the provincial of the Society [of Jesus], in their letters of November 6, 7, and 8 of the same year, support the entreaty of the city; they deprecate the ruin (both spiritual and temporal) of the islands, and express the same opinion as that of the Audiencia and the fiscal, as will be seen by their letters, which follow below.82. The provincials of St. Dominic, St. Francis, and St. Augustine (both calced and discalced), in their memorials of the same year expatiate on the necessity and advantage of changing the aforesaid decree of 1720, and granting likewise to the islands the increase of the permitted trade which they solicit; and they reproduce in detail what the other prelates and ministers say.83. [The letter of the archbishop (Fray Franciscode la Cuesta) states that he has been urged to write it by the city and merchants of Manila, and the bureau of the Misericordia; and he begins, very naturally, by arguing that the religious interests of the Philippines and of China depend upon the maintenance of the commerce of the islands. He refers to the opposition made to it by the merchants of Andalusia, which he thinks has no good foundation, since their trade with the other European nations drains from España more money than does that of Filipinas from Nueva España—this last being their ground of complaint against the Manila trade; but even if the Sangleys and other heathen carry away silver from Manila, “they have not harmed the [Spanish] crown, and are friendly to the [Christian] religion; while it is certain that the European nations, even if they are not all opposed to religion, at least have been at various times hostile to the crown, and that the amount annually transported by the said nations to Great China and other heathen kingdoms exceeds four millions [of pesos].... And although the argument [of the Andalusians]—that the fabrics from China cause injury, at the expense of those which are transported from Cadiz—would have some weight if all the fabrics in which the Andalusians trade were manufactured in España, since they are not made there the above argument has very little value.” The Spaniards in Filipinas regret that so grievous burdens and restrictions are laid upon them through the influence of the Andalusians, and especially that the result of these must be very detrimental to the charitable funds which so greatly depend upon the Acapulco trade. Two-thirds of these, or 100,000 pesos, belong to theMisericordia alone, whose educational, religious, and charitable labors are so important to the public welfare and the maintenance of the Spanish colony in Filipinas; the remaining 50,000 pesos belong to other institutions. The archbishop therefore urges the king to accede to the requests of the Manila merchants.]84. [The dean and cabildo of the Manila cathedral also support the merchants; they fear lest the income of the church will suffer from the impaired condition to which the decree of 1720 threatens to bring the Filipinas colony. They adduce similar arguments to those contained in the preceding letters, all taking for granted that the prohibition of Chinese silks means the ruin of the Acapulco trade. Incidentally this letter states the following facts of interest: “The poverty of the soldiers is such that they always go about as mendicants and in need; for as they receive no more pay than that of two pesos and a fanega of rice—which is given every month to the soldiers, but to the convicts who serve [forzados] in the troops only the rations—if they could not find refuge in the aid given by the citizens, the alms from the charitable funds, and the broken food at the convent doors, and in what the more industrious can earn by doing errands, they would certainly perish.” The prebends of the cathedral find their salaries—which range from 500 to 200 pesos yearly, besides the dean’s 600—pitiably small and inadequate, and they must even resort to the charitable funds and to the gifts of friends to eke out their incomes. The same difficulties beset the parish ministers; but worst of all is the condition of the poor clerics who receive no pay, who have no income save occasionalofferings for masses and the alms of benevolent persons.]85. [The provincial of the Jesuits, Father Joseph Fernandez, seconds the appeal of the merchants.20He states that since 1709 the fortunes of the wealthy citizens are nearly all ruined—by calamities, unsuccessful sales at Acapulco, the failure of the galleons to make the voyage, poor crops in Filipinas, or the quarrels of the governors and auditors—and those who formerly made contributions to the religious orders now need and ask for help from them. “This city of Manila (and in it all the islands) is reduced to eight or ten private persons who are able with their own wealth alone to make up the 300,000 pesos which your Majesty allows for their commerce; and the number of its citizens who, as Spaniards, can call themselves such is very nearly 882—although it is true that there are millions of converted natives, and those who are not converted are innumerable. All these citizens depend for their preservation on the three or four piezas which are yearly allotted to [each of] them, according to their merits, in your Majesty’s galleon; and as most of them have not the means of their own to fill this space they have to give it up, or sell it to those who are richer; or they must ask for money from the charitable funds of the Misericordia, the tertiary Order [of St. Francis], or the religious, in order to fill their space on the ship. As they cannot ship therein anything except the coarse cloths and other goods which your Majesty names in your new regulations,the product of which is hardly enough to pay the expenses on them—duties, freight-charges, and carriers’ fees—the poorer citizens will see themselves forced to seek some other way [to make a living]. That means the desertion of these islands for India, and consequently a great diminution in the number of your Majesty’s vassals; and the islands will be exposed to the invasions of the Dutch and other enemies of your royal crown and of the natives. No few of these invasions have been experienced in recent years, and at this time we are being raided by the Mindanaos, the Joloans, and the Burneyans. And I can assure your Majesty that in the space of less than twelve years I have seen this stage21of the citizens of Manila changed five times. For, as it is composed of some who come from Europe (and they count for many), and of others who come from Nueva España, on account of the difference of the climate from that in which they were born they do not remain long; both classes, seeing the little comfort that they can find here, and how small incentive there is from riches (which is that which most influences those who do not possess enormous estates), either die in a short time, worn out with the misery of this country; or they leave the islands, to look for a more comfortable residence. Thus it comes to pass that only we religious and other ecclesiastics remain, with some persons who belong to the richer class (who are few), and these are Europeans, whom affection for their native land is always drawing away. If this [which I have mentioned above] happens (which may God not permit),all these millions of Christian natives will be left abandoned, and exposed to [the danger of] returning to their heathen condition; and of being possessed by the Dutch, or the Chinese, or any other nation that may find a profit in them.” The argument that the prohibition of the trade in Chinese silks will check the drain of silver from Nueva España is refuted by the provincial; he says, “For we who are near China, Batabia, the Coromandel Coast, and other ports of India, know with certainty that the ships and pataches that come to them from Europa to trade in them carry hardly any money for their traffic except the silver, with the stamp and seal of your Majesty, from Perù or from Mexico; and as those vessels have directed their route from Europa by way of Cape Verde, Buena Esperanza [i.e., Good Hope], Cape Comorin, and Sincapura, it must be supposed that they do not obtain the said silver anywhere else than from the commerce in Europa. Your Majesty could, in the course of several years, prevent the silver that comes from Mexico to these islands from passing over to China, to the Coast, or to Batabia, by commanding your governors and other officials at Manila to make strenuous effortsthat in the islands the natives, mestizos, creoles, and various other castes who live in them and are naturalized as subjects, be compelled to weave the cloth goods which are manufactured in other regions; and these people are no less skilful for the mechanical and even the liberal arts than are those of other nations. As for the fabrics of cotton, these people are able to weave them, for their own consumption, more durable and of better quality than the cloths which come from China and theCoast; and as for the silk goods, the hose which these natives weave are those which bring the highest price at Acapulco. The colors for dyeing the goods are furnished by the country itself; for there will be shipped from hereto the empire of China during this year more than thirty champan-loads of sibucao, or campeche, a wood from which the Chinese obtain carmine for their dyes; and the other colors they obtain from trees and roots which also are found in these mountains in abundance. As for the cinnamon, it grows very abundantly in the island of Mindanao, where your Majesty has the fort and garrison of Samboangan, with some missions that are administered by priests of my order, and by other religious from the discalced of St. Augustine. It would be of no little advantage to be able to cultivate the cinnamon, as the Dutch do; for the silver which that nation would be obliged to carry for that product would remain among the vassals of your Majesty, and thus there would be an end to that difficulty (which the merchants of Sevilla certainly exaggerate) of your Majesty forbidding the shipment of the goods which your royal decree specifies, which are those that have some value, in order to be able to pay the cost on the more bulky goods. Who will have courage to weave them, or hunt for them, when he knows that he must lose on them? In these islands abundance of gold is collected in various placers, in which work the slow and patient disposition of the natives is occupied; but as their minds are so careless and ignorant they content themselves with washing out only the exact amount of their tribute, which is five reals for each person. But if your Majesty would give your royal directions toyour governors and ministers, in the course of time it would be possible to secure the production of this gold in abundance; and if it were sent to Nueva España, and exchanged for the silver necessary for the maintenance of these your wretched vassals, the result would be that the latter product would always remain in the dominions of your Majesty. In these islands, also, some pearls are secured by diving, and in these seas some amber is gathered. In the mountains there is no lack of numerous civet-cats; and the civet, if measures were taken for its production, might be no small source of wealth to your vassals, and consequently furnish huge amounts to your loyal treasury.” Father Fernandez mentions that Felipe IV “spent in twenty years 170,000 ducados solely in sending religious to preach the gospel in Philipinas;” and that the monopoly on the buyo industry had produced in one year 11,000 pesos to the royal treasury, and that on wine 18,000 pesos; (but these amounts apparently refer to the price paid for a three years’ contract, rather than to the annual income of the crown from these sources).22]86. All the papers and reports which have been mentioned in this “Period vii” having been received in the Council, and the deputies from Philipinas, Don Francisco Diaz Romero and Don Antonio de Echandía—who deposited their credentials and letters in the office of the secretary—having presented themselves in it, they set forth their claims and stated, in a printed memorial (which they handed in on June 14, 1723) the injuries which the islands were receiving from the practice of the decree of October27, 1720. They entreated that its execution be suspended, and orders given that the commerce be continued with the yearly galleon in the same manner, so far as the lading was concerned, as was in use at the time when the aforesaid despatch was received there [at Manila]. The memorial, in eight leaves, is as follows:87. [This memorial by the city and merchants of Manila presents in detail the amount of their annual commerce in the various kinds of merchandise that are permitted in the decree. The gold exported from Filipinas to Nueva España amounts to less than 12,000 pesos, and is sent not as bullion or coin, but in the form of the slender chains [bejuquillos] wrought by the Malay natives for personal adornment; for in no other form could it compete with the abundance of gold mined in Mexico. The Chinese porcelain is shipped in small quantity, being mainly an article of luxury, like the gold ornaments; moreover, it is bulky and fragile. As for spices, Manila complains that the market for these in Nueva España is already appropriated by the merchants of España who send spices in the trading-fleets to Vera Cruz; in the fleet (of seventeen vessels) commanded by Don Fernando Chacón was carried the enormous amount of 170,737 libras of cinnamon, and more than 70,986 of pepper and cloves, besides various bags and chests of all these kinds of spice the weight of which was not noted. The only products of the islands which have commercial value in Nueva España are wax, lampotes, Ilocos blankets, and cordage; and the value of all that is exported of these, even counting with them the previously mentioned gold chains, does not gobeyond 30,000 pesos. The linen goods have hitherto been shipped from Manila to Acapulco only to fill in empty spaces in the allotments of lading, and have amounted to hardly 60,000 pesos, on which very little profit was obtained. If the main part of the galleon’s cargo has to be composed of these linens, the Acapulco market will be overstocked with them, and the prices there will be so low that Manila cannot afford to send another cargo of this sort. Moreover, as these goods are procured from the foreign factories at Batavia, Madrasta, Patàn, Punticheri, and Vengala, as soon as the traders at those posts understand that the Manila galleons must carry most of their lading in goods to be procured at those factories they will advance their prices enormously, and the galleon will be compelled to sail in ballast, and then only to procure the situado. The floss and raw silk which is the only form of that product permitted to Manila is so bulky a commodity, and the consumption of it in Nueva España is so small, that it too has been shipped only to fill up space; moreover, “for several years it has been increasing in cost, on account of the great amount of it which the Dutch, English, and French obtain from China for the fabrics which are manufactured in Europe.” The deputies, to substantiate their statements, refer to the official reports of the viceroys of Nueva España, and offer to bring forward evidence in their favor from various persons at Madrid who have resided in Filipinas. They claim that the Manila trade in silken fabrics has not harmed the merchants of España, since the silk which is produced in that country is hardly sufficient to supply the home demand, and it is necessary to bring to it foreign silks—exporting toNueva España some goods which have little demand in España; but even these do not occupy one hundred and twenty-five toneladas of space. The greater part of the silk goods woven in España are silks and velvets, and if the value of these has fallen, it is not the importation of Chinese goods which has caused this, but the change in the style of magistrates’ robes,23in which those goods are used, and the small amount of them that is used in the military service. “Just as in these kingdoms [of España] most of the persons of rank are clothed in no other fabrics than those which come from foreign countries on account of either their better quality or their luster—so the same thing occurs in Nueva España, where they follow in everything the customs of Europa; and for this reason most of the silken fabrics which are carried thither in the trading-fleets are from the kingdoms of Inglaterra and Francia, and the provinces of Holanda—as silver and gold tissues, brocades and laces of the same sort; hose, and other stuffs, the sale of which does not injure that of the Chinese silks, on account of the greater value placed upon the former. Therefore, as the silken fabrics which the aforesaid shippers carry [to Nueva España] are not all from the mills of España, but these Spanish silks are in very small quantity and of the sort which are rejected here, it is evident that the injury is not to the commerce of Andalucia, but to the foreign nations. For, since all the gold and silverwhich comes [to España] is carried in trading-fleets and galleons—except what is obtained for wines, brandies, oil, and other products—the slender profits which the traders of Philipinas gain from the sale of the Chinese fabrics will also be given up for their benefit by the foreigners on account of the abundance of the products from their own mills which they will ship to Cadiz, in order that these may be carried to the Indias.” The argument is repeated, that most of the profits in the Acapulco trade must go to European foreigners, if it is restricted to the few and unimportant products of the islands, and thus the enemies of España are strengthened; while if the Chinese trade is allowed those profits fall into the hands of people who cannot and will not injure the Spanish power. The enforcement of the decree will injure not only the citizens of Manila, but the revenues of the crown, which amount annually to an average of 228,557 pesos, besides the duties produced by the Acapulco trade, which amount to 250,000 pesos more. The treasury will have no means to buy the rice of the Indians, their only valuable product; the Sangleys will have no occasion to trade at Manila, which will lose the amount of their licenses (more than 23,000 pesos), besides the import duties and alcabalas which they pay there, which amount to more than 37,000 pesos; and the situado sent to both the Philippines and Marianas must be taken from the Mexican treasury directly, which will be too heavy a burden for it. The king is reminded of the poverty of the Philippines in all natural resources save rice, and their dependence on the Acapulco traffic for money, clothing, and all other needs save that of food. The recent building of twosmall galleons has caused the treasury a great amount of expense, quite disproportionate to that of the one large vessel which hitherto had been used for the Acapulco trade—to say nothing of the extra expense caused by the duplication of crews, officers, and soldiers which is thus rendered necessary. The smaller ships are less able to resist either storms or pirates, and the few experienced seamen in the islands must be divided between them, when they should be massed in one vessel. Again is mentioned the dependence of the missions, and the conversion of the heathen, upon the Acapulco trade; the Indian villages that are more or less christianized now number 457, with 111,683 families, who are in danger of relapsing into heathenism, or being converted to Mahometanism, if the missions cannot be kept up.]88. The Council, on June 14, 1723, agreed that this memorial should go to the fiscal with all those that came before, with the letters of the Audiencia, officials, and prelates which had been laid before the Council on the twelfth of the same month.89. The consulate of Cadiz, by a memorial presented in the Council on the twenty-first of the same month and year-being informed of the petition from Manila requesting that changes be made in the decree issued on October 27, 1720—asked the Council to order that the argument recently brought forward by Manila in regard to this be communicated to them; this having been referred to the fiscal, he was of opinion that the aforesaid document should be communicated to the consulate, as had been done in the year 1720 by order of his Majesty; and the Council agreed to this by a decree of July 12, 1723.90–92. [On September 4 following, a conferencewas held by the representatives of the commerce of Sevilla, to consider the question of the Philippine commerce in Chinese silks and the royal decree forbidding that trade; a copy of the memorial sent from Manila, and other documents bearing thereon, were submitted to that body by the consulate of Cadiz, who had already taken action thereon, and now asked for the support and coöperation of the Sevilla merchants. In a formal resolution by the latter, they express their entire concurrence with the views of Cadiz, and request the king to enforce the decree of 1720. They make light of the statement regarding the great amount of spices carried to Nueva España by Chacón’s fleet, and intimate the probability that the remonstrance by Manila is really instigated by the traders of Nueva España, who, on account of the enormous profits which they make by sending money to the Philippines for investment, must be most affected by the proposed restrictions on the Manila commerce. Sevilla answers the argument of Manila that only one hundred and twenty-live toneladas of Spanish silks are sent to Nueva España, by declaring that even that small amount will soon be reduced to nothing unless the king strictly prohibit the introduction by the Filipinas ships into Nueva España of fabrics woven of silk and gold or silver; also that the silk-mills of España will be ruined and abandoned, and consequently the cities of that country will be inundated with poor people and criminals. On the day before this conference, a similar one was held by the consulate of Cadiz and representatives from the merchants of that city, who made a vigorous remonstrance against the injuries caused to Spanish commerce and industry by the Manila-Acapulcotrade, and especially by the frauds and the infractions of law therein, on which they expatiated in the above conference. In the report drawn up by them they mention several of these. For instance, the merchants of the City of Mexico sent large sums of money to Acapulco for preparing the Manila galleon for its voyage; “and in the three months during which the ship was detained at that port it unloaded an enormous cargo, held its fair, and returned laden with silver, without wintering in that kingdom, on account of the easy and prompt disposal of all that it carried. This cargo was usually 10,000 or 12,000 bales, half of silken fabrics and half of linen goods, [lencería], the proceeds from which reached four millions of pesos; and all this in pesos, eight-real and four-real pieces, since in exchange for the said goods they did not desire or carry any produce, nor even doubloons, nor bars of silver, for all must be new pesos and of Mexican coinage, these being the coins which are current in Turquìa, to which country they were going, since the greater part of the said goods come thence.” Reliable witnesses have told of mule-trains entering Mexico laden with Chinese stuffs, which must amount to almost the value of the goods carried by the eighteen vessels in the trading-fleet which that year came from Spain under Don Manuel de Velasco; and the market of the latter was ruined by the former. “Although the silk fabrics which the ships bring from Philipinas have not the quality or durability of those from España, and the linen goods are all of cotton, and do not last half as long as do those from France, yet as the former are sold cheap, and have a good surface, and are showy, while they last the commerce of España ischecked and suspended.” The merchants of Mexico send so much money to Acapulco that not enough is left to send the trading-fleets back to Spain, which are compelled to winter at Vera Cruz in order to obtain the proceeds of their cargoes and equip the vessels for the return voyage. “So sweeping and irreparable is the great injury which these goods from China, or from the Turks (which is the more certain), cause to the most important cities of España that when the said ship was not allowed to carry those goods Sevilla had more than 12,000 looms for the manufacture of silks of every kind; and with these, even without other stuffs, so great a number of people were employed on them, and so great was the opulence of that city and of all its domain, as is made evident by the great services which on all occasions Sevilla rendered to his Majesty, with sumptuous buildings—churches, hospitals, government buildings, and private houses. But without greater casualty than that of the importations in the ships from China, that city found itself in a straitened and miserable condition, not two hundred looms being left in it, on account of there being no consumption for its fabrics; and the great mass of poor people, who then supported themselves by their labor, are now miserably perishing. No less proof is afforded by what is occurring in Granada; for there more than 12,000 looms were employed only on taffetas (both double and plain), satins, plushes, and all kinds of silk-weaving; and more than 50,000 persons, men and women, were engaged in the industry and labor of making silk goods. For this reason, the amount of silk worked up each year was more than 180,000 libras, from which proceeded considerableprofits to the royal exchequer, for the duty on each libra amounted to thirteen reals and three cuartillos; but, with the one but sufficient reason of the importations of Chinese goods, [that industry] has so fallen away that the amount of silk sold in that city at each gathering of silk does not reach 40,000 libras, and the number of looms operated, on coarse stuffs, is less than 2,000—a similar condition to those of Sevilla.... The same troubles are suffered by Cordova, Jaen, Ezija, Priego, and Alcalà la Real, with many other places which in both the Andalucias were growing and being maintained by the said manufactures. It is not less worthy of attention that the silk-growers of the aforesaid kingdoms of Sevilla, Granada, Cordova, and Murcia are, for lack of sale for the silk that they produce, giving up the cultivation of the mulberry-trees, and abandoning their farms and the places where they dwell.” Cadiz cites the action of Conde de Monclova, viceroy of Peru, who prohibited the shipment of Chinese goods from Acapulco to South America, making them contraband and confiscable, recognizing “their poor quality and lack of durability, and the great detriment which this trade caused to the merchants [of Peru], who go down to Portovelo to hold the fair [at the arrival] of the galleons, which has been the greatest in the world;” and urges the king to enforce strictly the decree of 1720. Such action would greatly benefit the realms of Spain, and would not cause injury to the Philippines, because none of the said Chinese stuffs are made in the islands; “and the only ones who could grieve over it are the Turk, and other princes of Assia, Mahometans, and enemies of our holy Catholic faith.” Asfor the complaint of Manila that the propagation of that faith depends on the silk trade, Cadiz refuses to believe this, and refers the king to a document in Manila which refutes that notion. This is “a memorial or report made by a minister of that Audiencia, N. Calderòn, in which is inserted another, written by Father Fray Victorio Ricci,24of the Order of Preachers, who was for many years a missionary in the empire of China, and afterward in the Philipinas Islands; it was sent by the Supreme Inquisition to its commissary in the islands, in order that he might send to his Majesty information on the points therein.... In these papers it will be clearly evident that the progress and propagation of the faith is not diminished by depriving the islands or the kingdoms adjacent to them of the commerce prohibited to them, or by the restriction which his Majesty has laid on it;” the above prohibition, therefore, is not the cause of the ruin of the citizens of Filipinas.]93–94. [These replies by the merchants of Andalusia call forth another memorial from the Manila deputies, which occupies fourteen printed sheets. They repeat their former arguments, enforcing them by reference to the despatches from the Audiencia of Manila, the archbishop, and the various religious bodies there, and still more to the letters previously addressed to the king by the viceroys of Nueva España; and they adduce various instances from the history of the Manila-Acapulco trade to the same effect. They also undertake to refute the chargesmade by the merchants of Sevilla and Cadiz, and claim that the latter have misrepresented certain facts. We note here some points made by the Manila envoys, as giving new information on the matter at issue. They say that the maintenance of Filipinas, including the missions and military posts, costs the Spanish crown annually 515,568 pesos, for which sum the royal treasury of Mexico should be responsible, according to the laws of the Indias; but it sends thither only 40,000 pesos in money and some 60,000 in goods, and even this remittance comes from the duties which the Manila galleon pays at Acapulco. But in 1637 and for some years later, the situado sent to the islands amounted to more than 325,000 pesos in money, and enough goods to make up the 500,000 pesos. This, however, was largely the result of the failure of the Manila merchants to ship goods to Mexico, a proceeding caused by the undue harshness and severity of the royal visitor Pedro de Quiroga;25but it led to the abolition (by royal decree of September 3, 1639) of the restriction on the kinds of goods permitted to Manila, only limiting the amount of their investments. It is strange that Manila has pursued this commerce for one hundred and forty years without any protest from Andalusia until now; the decadence of the latter is due rather to lack of economy in the use of their wealth than to the competition of Filipinas; and Andalusia has always encountered trouble, since the persons interested in the greater part of the lading of the galleons and fleets have been and are foreigners—French, English, and Dutch. Andalusia claims that thegalleon unlades at Acapulco more than 12,000 piezas, half of them containing silk goods; but the certificates of the royal officials show that in the ten years from 1710 to 1720 the total number of piezas (in ten galleons) was 36,895, including therein the 4,299 half-chests in which the silk goods were shipped—making the average lading of each galleon only 3,660 piezas. The detention of Velasco’s fleet was not due to the arrival of the Manila galleon, but to other causes. The fleet of 1698, in charge of General Mascarùa, was sent lightly laden, and in 1699 Velasco’s fleet followed it, but encountered the other at Vera Cruz; the presence of the two large fleets at one time, and the ravages of yellow fever [bomito negro,i.e., “black vomit”] at that port, rendered it impossible to sell the goods to advantage, to transport them to Mexico, or to equip the vessels for the return voyage. When Velasco could set out for Spain, he received news of the death of Carlos II, and the danger of war between Spain and other powers, which made the merchants unwilling to risk their property on the seas at that time. Finally the Spanish fleet was escorted to Spain by a French squadron of warships, but on reaching Vigo was attacked by an English and Dutch fleet, which inflicted considerable loss on the Spaniards. Moreover, the trading-fleets sent from Spain to Nueva España are nearly twice as large in the last few years as they used to be, which overstocks the colonial markets with goods. Manila claims that the decadence of the silk industry in Andalusia is due to the pest which ravaged that province (with especial mortality in Sevilla) in the middle of the past century; and that part of the remaining population had emigrated toMurcia and Valencia, where they had cultivated mulberry-trees and built up the manufacture of silk goods. Another reason assigned by some writers for the decrease of prosperity in Andalusia was the imposition, at that time, of heavy war-taxes. As early as 1666, the city and the merchants of Sevilla had represented to the crown “their lamentable condition, and the ruin of their looms, caused by the imposition of the millones26and the concourse of foreigners to Cadiz to introduce their own merchandise.” This led to a resolution by the royal Council that the decree of January 25, 1661, should be enforced, which provided thatthe custom-house and collection of duties for the Indias should be withdrawn from Cadiz, and that the galleons and fleets should take on their lading in the river of Sevilla and the port of San Lucar. As for the stuffs from foreign countries which, it is alleged, are brought to España and crowd out the manufactures of that country, these are only the fabrics which the more industrious French, English, and Dutch make with the raw material, both wool and silk, which España exports. In 1696 Sevilla complained to the king of the injury which it was experiencing from the importation of foreign goods, but did not mention the Chinese stuffs among these. “In Madrid and Valencia the manufacturers are at present complainingthat the price of silk has risen very high, not because the crop [that is raised in España] is not an abundant one, so much as on account of the so great export, not only from that kingdom but from otherregions, to foreign countries, that which the French alone have bought this year amounting to more than 300,000 doubloons; and if asked about this, any dealer in these goods or any official will answer with entire candor, without blaming the commerce of Manila.” The foreigners bring back these silk goods to España, in order to supply with them not only that country but the Indias, through the fleets and galleons; “and this is what the consulate [of Cadiz] is defending, in order that these goods may, by not introducing into Mexico those from China, be sold [there] with a higher reputation.” The highest authorities all concur in the statement that the Spanish silks sent to Nueva España do not amount to one hundred and twenty-five toneladas. The statement that the Manila galleon carries from that country 4,000,000 pesos is unwarranted; the only possible ground for it is that in 1717 the viceroy allowed the galleon to carry to Manila 2,000,000 pesos, because for three years past no money had been sent to the islands—on account of poor sales at Acapulco, a galleon forced back to the islands by storms, etc.—on condition that the king’s ten per cent be paid on that amount. In other years the amount of money illegally shipped has been very small. Cadiz has alleged that money has been scarce there for some years; but Manila declares thatfrom December, 1720 to July, 1723 over 40,000,000 pesos worth of gold and silver, in coin and bullion, has been landed at Cadiz, without including the value of the other products of the Indias. Cadiz asserts that the money obtained from Nueva España goes to the Turks, the enemies of the Catholic faith; but the Spanish merchants are continually furnishing moneyto other enemies of the faith, the English and Dutch. Moreover, the commodities which the Manila galleon carries are not obtained from the Turks, but (through the European factories) from Indostan, Tunquin, Lao, China, Japon, and the Philippine Islands; while Manila is not even permitted to trade with Arabia and Persia, whose products are carried to the ports of the Levant, and at those fairs the traders from all the European nations buy those goods, with money which has come from the Indias. Manila declares that the trading-fleets carry to Vera Cruz no Spanish products save wines, brandies, oil, raisins, and almonds, and the previously-mentioned small amount of silk goods; all else in their cargoes is of foreign make. The spices which the decree of 1720 allows to the islands will not suffice to pay the expenses of the voyage, especially when Manila must compete with the trading-fleets from Spain in the shipment of these products. The collection of royal duties on goods is regulated by “cubic palmos in accordance with the measurement of the bales [frangotes] and piezas which are shipped.” As for the memorial by Calderòn, Manila asserts that it does not bear on the present question; that auditor, in the time of Governor Curuzalaegui (in which occurred an uprising of the Sangleys), sent a letter to the king remonstrating against the liberty given to the Chinese, and advising that they be not allowed to have intercourse with the Indian natives, or even to live in the Parián. This tolerance had been extended to them for the sake of attracting them to the Christian faith, but Calderòn regarded it as no longer necessary, since they had, even then, a number of Christian missionaries in their own country. In hisletter, he cited Father Ricci in support of some of his statements. While the Spanish silks sent to Nueva España amount to only one hundred and twenty-five toneladas, those of foreign make sent thither from Spanish ports are more than a thousand toneladas. The French, English, and Dutch trade at Canton, where the main part of their commerce is in raw silk.]95–96. [The above memorial was referred by the Council to the fiscal, on October 6, 1723; and on December 22 following, a printed answer to both of those by Manila was placed before the Council by the consulate and merchants of Cadiz. They remind the king that when Filipinas was first discovered the ships brought back to España abundance of gold, pearl, amber, civet, wax, and fabrics of Ilocos; and for some time afterward these and many other valuable products were exported from Manila, which became the emporium of both Eastern and Western India. In those early times, when so much zeal and energy for the conversion of the heathen was displayed, it was not necessary to the missions to depend upon the trade in Chinese silks; but, for the sake of benefiting the natives of the islands, and to check the drain of silver to foreign nations, the Spanish government (by decrees of 1589 and 1596) authorized the barter and exchange of the products of Filipinas for those of China, under the system calledpancada. But Manila has distorted this into the assumption that the Chinese trade was intended for the maintenance of the Spanish colony in Filipinas, and that it was to be without restriction, save in its amount—although, as a fact, the trade in silk fabrics of China was not introduced until many yearslater. The system of distributing the commerce among the citizens of Manila replaced the earlier pancada, and led to such abuses that Felipe III attempted to check them by a severe decree (1620); and later enactments placed the Acapulco commerce on such footing that it flourished greatly, to the mutual advantage of Filipinas and Nueva España, and to the enrichment of Manila and its citizens. That commerce benefited the poor citizen as well as the rich; but the trade in silks is only for the benefit of the wealthy merchant and the rich consumer, as they are articles of luxury. The earlier commerce of Manila also supported and stimulated the consumption of Spanish silks in Nueva España and Peru, and the silk industry flourished in the mother-country; but the later introduction of Chinese silks into the American colonies, and the frauds and excess connected with this trade, have ruined the silk industry on both sides of the Atlantic, and even impaired the prosperity of Manila. Cadiz claims that the merchants of Mexico have committed many frauds, and transgressed the ordinances, and prevented the execution of these, in regard to the Manila trade, and do so with the collusion and aid of the officials: for instance, the galleon “Nuestra Señora del Rosario” arrived at Acapulco on January 11, 1699, and the Manila citizens attempted to compound the duties on the cargo for 100,000 pesos; but the royal fiscal opposed this, showing that the ship had brought 6,754 piezas of lading, without counting a considerable quantity of pepper and other goods outside of the registration. It was also found that although the law restricted the entire cargo to the value of 250,000 pesos, and its ownership to the citizens of Manila,this vessel contained goods to the amount of 233,966 pesos which belonged to the citizens of Puebla alone, and it was estimated that it must contain at least a million pesos’ worth of goods belonging to merchants in the City of Mexico. The Mexican government compelled the payment on these goods of duties amounting to 50,000 pesos more, and would have investigated the whole matter, to ascertain the exact amount of the illegal shipments; but the commercial interests of Mexico exerted such influence against this that the Audiencia desisted from the undertaking. Again Cadiz accuses the importation of Chinese silks into Nueva España of having ruined the silk industry in España; although those goods are so thin and poor that they are worn out even before the Manila galleon leaves Acapulco, they are so cheap and showy that they undersell the better goods from España even competing with the latter in Vera Cruz, where the Chinese goods are purchased by the traders of Habana, Puerto Rico, Cartagena, and other Spanish colonies; and all this is overlooked by the Spanish officials in high places, because they profit by this illegal traffic. If the king will prohibit the importation of silk woven with silver and gold, and “check the hand which Mexico moves at the command of Manila,” the silk industry will be revived in España, its people will be kept from idleness and poverty, and foreign countries will no longer drain its resources. Cadiz desires Manila to content itself with the spice-trade, which is a staple and profitable line of commerce, and which Manila can carry on more cheaply and promptly than Spanish merchants can; the spices sent from España onChacón’sfleet were needed to supply the scarcity ofthem at that time, as the Manila trade had been interrupted temporarily; but if the latter be regular, such shipment from España could not occur again. From the year 1690, the indult ran from 50,000 to 74,000 pesos, on the basis of the 250,000 pesos allowed to the Manila trade; but it is evident that the duties ought now to amount to above 500,000 pesos, on the enormous quantities of Chinese silks that the galleon of 1,000 toneladas carries.]97–105. [This memorial, with like protests from the cities of Toledo, Ezija, and Murcia, was sent to the fiscal, who on March 16, 1724, handed in his opinion on the question at issue—that is, whether the decree of 1720 should be changed or enforced. He lays down three propositions: First, that the trade in Chinese stuffs should not be prohibited to the citizens of Filipinas, since it is necessary to their maintenance, those islands having no profitable mines or commercial products; moreover, the introduction and propagation of the Catholic faith therein is an obligation of justice as well as of religious zeal, and was so recognized by Felipe II, when he refused to abandon Filipinas; and to fulfil this obligation the Spanish colony there should be sustained. For this purpose the trade with Nueva España had been granted to Manila, to such extent as should be necessary for its preservation, that is, to the amount of 250,000 pesos, and 500,000 in returns; and in the permission given to Manila to trade with China there had been, and should be, no restriction as to the woven silks of that country. Second, this trade ought, nevertheless, to be strictly confined to the amount of their permission, and all frauds to be prevented; for the complaints of Spanish producersand merchants had been caused by the frauds and abuses in the Manila trade, rather than by the mere fact of its including Chinese goods; the fiscal even suggests that they have an official representative at Acapulco to aid in the unlading and inspection of the Manila galleon, and report thereon to the viceroy, which would aid in preventing frauds and enable the Spanish merchants to discuss the question more intelligently. Third, that in case the trade in Chinese silks be prohibited to Manila, that in spices should be absolutely prohibited to the Spanish merchants and given exclusively to those of Filipinas; while the American trade in silks should be free to the Spaniards.]106–111. [The Council considered this question on April 6, and decided that the decree of 1720 should be changed; they recommended that the Filipinas trade be continued as before the decree, and employing but one large galleon; that the decree of 1702 should be enforced, save that the goods should be valued not by actual inspection of the bales but by invoices presented by the shippers, with their sworn statements that the goods were their own; nor should any indult, payment of double duties, or other form of composition be tolerated; and that the royal officials at Manila, Cavite, Acapulco, and Mexico should be held responsible for the fulfilment of these regulations, under severe penalties. This proceeding was approved by the king, who issued despatches in accordance therewith (June 17, 1724) to the viceroy of Nueva España and other officials concerned therein; and on August 8 the merchants of Cadiz were invited to nominate a deputy to watch the Acapulco commerce.]

PERIOD VIIOf what was done in Manila on receiving the decree of October 27, 1720. Recourse to the Council by their deputies. Reply from the commerce of Andalucia, and what was decided in regard to this matter in the year 1724.71. On August 2, 1722, the governor, Marqués de Torre-Campo, received at Manila the ordinance despatched on October 27, 1720, of which the preceding “Period” speaks. Having caused this decree to be published by a proclamation in that city, record of it was made in the offices, and it was communicated to the municipal council in open session. The cabildo protested against it, promising to obey, but resolving to set forth to the governor in the first place, and afterward to his Majesty, the damages and troubles which would result from its execution to religion, to the royal treasury, and to the greater welfare of those islands, from their not continuing to enjoy the permission to trade in fabrics of silk, which they had possessed for more than one hundred and forty years. They would therefore be obliged to entreat that his Majesty give them permission to retire, with their families, to the lands and domains of his Majesty which they should consider most suitable.72. In a long memorial presented to the governor was set forth in detail the motives on which they based this action; and when orders had been given that the fiscal of that Audiencia should examine it, although he recognized that their statements were correct, and that the islands could not maintain themselves on the system of commerce which had been laid down, he demanded that orders should be givento fulfil the cited royal decree, and that the city and merchants should appeal to his Majesty who, there was reason to expect, would take care of his vassals there, and of the interests, both spiritual and temporal, which were concerned in it—and the governor gave orders to that effect. Although the city and the merchants by a second memorial insisted upon a suspension of the above regulation, demanding that, in case there was no room for it and for continuing their trade in silks and stuffs as heretofore, at least he should declare that they were not obliged to invest their funds in the commodities which were prescribed to them, as it would occasion their total ruin (and they demonstrated this): nevertheless, the governor, bearing in mind that the damages to his Majesty would be no less, if the galleon for that year should go empty, commanded that, in accordance with the amount permitted by the cited regulation, they should make the distribution of the [permits to ship] merchandise as his Majesty had commanded. The city and the merchants, with the hope that his Majesty would give attention to the urgent representations that would be made by the commissaries whom it had been agreed to despatch to the court, agreed to continue the commerce meanwhile conformably to the despatch of 1720—sacrificing out of respect to his Majesty, and in order to maintain the religion established in those islands, their own wealth, which necessarily must be ruined and lost in a commerce so useless and unfortunate as that to which they were reduced; since the bulky commodities, on account of their abundance and poor manufacture, would not allow them to gain ten per cent, since the risks extended to fifty per cent.73. The city of Manila, in order to render commendable and frame in more formal manner its appeal from the aforesaid decree of October 27, 1720, which it must bring before the royal person—not only for the continuation of the traffic in the silken fabrics, but also for the increase of its permission from the three hundred thousand pesos which it was enjoying to five hundred thousand—came before the Audiencia and presented before it the arguments and reasons in favor of both these requests. After explaining the losses that would arise from the desolation and depopulation to which the islands would come (which the Audiencia took into consideration in its memorial, as will be noted) the city added that when in Manila there were only 230 citizens (which was in the years 1636–37) returns of 500,000 pesos were permitted to them; but since in the year 1722 the city had 882 citizens, and there was an increase in the charitable foundations, which placed 150,000 pesos at risk on each galleon, the necessity was evident of increasing the permission to 500,000 pesos—350,000 pesos for the citizens, and 150,000 for the charitable foundations. This increase in the number of citizens made necessary the expansion of the permission, from the very fact that in the year 1702, in which there were only 400 citizens, his Majesty had permitted 300,000 pesos of investments, and 600,000 pesos in returns.74. It was also expedient that permission be given to the seamen to transport in their own chests goods up to the amount of 40,000 pesos of investment, on account of the importance of interesting them in the defense,15and in order to facilitate that in provincesso remote there should be Spaniards who would serve as artillerists and seamen, since their wages alone, in voyages so arduous and long, could not be sufficient incentive. In order that that commerce might be regulated and infractions regarding the lading be avoided, an arrangement was proposed to his Majesty in which the annual investment was reduced to 3,200 piezas of the regular sizes—half-bundles, bags, sacks, [churlos,balsas(forbolsas)] cakes of wax, and other like packages of bulky commodities, and three hundred half-chests of goods from China, in order to supplement the said 3,20016piezas. Consequently, at the despatch of the galleon there would be nothing else to do except to distribute the said piezas and issue the permits for its lading—collecting 10,000 pesos for the royal duties, at the rate of two per cent, for this purpose rating the 3,200 piezas at 128 pesos and 1 tomin, and the half-chests at 300 pesos and pay at Acapulco thirteen per cent, regulating the 3,200 piezas at 256 pesos and 2 tomìns, and the 300 half-chests at 600 pesos each. This would result in the royal duties at both ports amounting to 140,000 pesos, and in return would be brought back, for the account of the permission, a million pesos; and thus would be avoided sworn declarations, and other dubious measures to which the previous regulations were subjected.75. The Audiencia of Manila in a letter of November 9, 1722, taking into consideration another which they had written on August 6, 1713, in whichthey set forth the losses which that commerce had suffered—in [the wreck of] their galleons, the unsuccessful fairs of Acapulco, and the excessive pecuniary extortions that they had suffered in Acapulco on account of the royal duties and in other ways—to the end that new measures might be taken by his Majesty for the rigorous reëstablishment of the commerce of those islands, describe (influenced by the urgent representations made by the city and by previous information obtained by each auditor) the affliction which has been caused by the new decree of October 27, 1720. They declared that they judged necessary for the maintenance of these islands and the propagation of the holy gospel, not only the permission for the silk and the stuffs prohibited by the cited despatch, but also the increase of the permission from 300,000 to 500,000 pesos. The Audiencia affirmed that the Spaniards could not exist without this commerce, because the culture of the fields was in the hands of the natives and the management of the guilds [gremios] in those of the Sangleys and their mestizos; that the salaries and pay with which the military officers, soldiers, and civil officials were recompensed did not reach half the annual expense of their families, in consideration of which it was commanded to include then the distribution of the lading of the galleons; and that, while the permitted amount was 300,000 pesos, and the number of citizens so great, the investment of each one, even if all were alike in wealth and services, did not amount to 400 pesos, the profit on which was not enough for the proper support of a man who was not actually poor, and on this account they could not increase their wealth. When the Europeans see that it is useless to transport goodsto those regions where there is not, outside of commerce, any motive which would induce them to remain, or which would bring other new traders, those who consider the matter have reason to fear that in a few years the capitals of those who live there will be consumed, and that others will refuse to enter into the same experience; then Philipinas will be left to the Indians and Sangleys, the gospel ministers without the guards of Spaniards for their protection, the military posts without garrisons, the natives without any control, and everything on the blink of a deplorable ruin.76. That with the commodities which were allowed by the said royal decree, the lading of the annual galleon could not reach the gross amount of the 300,000 pesos of the commission. From this it resulted that that amount was diminished and the traders exposed to evident loss in Nueva España, on account of the abundance of those very articles of merchandise; and that would result in cutting off the proceeds of the many and large charitable funds, founded on the merchandise risked in those galleons, for the support of clergymen, hospitals, convents, divine worship, dowries to orphan girls, and many other alms—which, even though they were no more than those which were administered by the brotherhood of La Misericordia, and by the tertiary Order of St. Francis, were of the greatest importance, and their failure a most notable affliction to all the islands.77. That by the exclusion of the stuffs and silks, which were the principal articles of commerce of the islands with China, all that commerce [i.e., with Nueva España] would come to an end, since all the rest was of so little value that it could not, withoutthe substantial aid of the silks, allow any profit. From this would result another great difficulty in the propagation of the holy gospel, that if the Chinese do not come to the trade they will lose the opportunity for conversion which so many have attained, attracted by familiar intercourse with the Spaniards, with the occasion of this commerce, and there would be great difficulty in introducing the gospel ministers into those dominions; and these are motives which have always engaged the chief attention of his Majesty, to judge by the laws. The Audiencia concluded by expressing the opinion thatthe prohibition of the silks should be removed, and an increase be granted in the permission to 500,000 pesos, with the number of piezas which the city was proposing—this regulation being made in proportion to the number of citizens, in order that the islands might maintain themselves, and thus obviate the serious inconveniences that were experienced; and, as for the duties which the city proposed, this question was referred to the decision of the Council.78. The fiscal of that Audiencia, Don Pedro Bedoya,17in a letter of November 15, in the same year, 1722, in consequence of the duplicate copy which he received of the royal decree of October 27, 1720, states on his part—after repeating his previous opinion regarding its execution, as given to the city of Manila, the action taken by the governor, the recourse by the city to the Audiencia, and the report made by that body—what his opinion is, in fulfilment of his obligation, in regard to the memorial of the city and the merchants; it is brought under four heads, which are:IThe necessary dependence which the maintenance of these islands has on the commerce, in order that the Spaniards may maintain themselves in them; and the benefit from the charitable funds, in which are annually expended 75,000 pesos—which sum proceeds from the trading of the 150,000 pesos which are carried in the annual galleon on account of the said charitable funds.IIThat if the prohibition of the stuffs and other commodities from China remains, their former control of the trade therein will be disturbed, and the royal decrees issued for this purpose (some of which are compiled18) will be subverted—such as those which command that the commodities which they convey shall be bought from the Sangleys; and that if this [Chinese] commerce is prohibited that of Nueva España becomes unprofitable, as the bulky commodities do not fill up the amount of the permitted trade, and it will not be possible to pay the cost of traffic in them without those from China.IIIThat for the maintenance of these islands, the support of the Spaniards, and the success of the charitable funds, it is necessary that the amount permitted be increased to 500,000 pesos and a million of returns, with the inclusion of the fabrics from China.IVThe regulation of the lading, in order to avoid infractions of the law [is necessary]; as also that the dubious and burdensome obligation of making sworn declarations be laid aside, and that the quality and number of the commodities which are transported must appear in the registers.79. [These points made by the fiscal are discussed at length by him in a report addressed to the king, dated November 15, 1722. Among other things, he states that the merchants prefer one galleon of 800 or 900 tons burden to two of 500 tons each, as being less expensive (on account of requiring fewer officers and men), safer (as carrying larger cannon) and less exposed to danger from either enemies or storms, than the two smaller vessels; that the industry and love of gain displayed by the Chinese who reside in the islands have secured to them the control of all the crafts and useful arts, and of the commerce of the islands save that with Nueva España, which is therefore the only resource of the Spanish citizens; that the current rate of income19is but five per cent in the islands, while thatcommerce brings in fifty per cent; that most of the rural estates [haciendas] are possessed by the religious orders; that houses constitute property of little value, on account of the frequent fires and earthquakes; and that consequently the charitable foundations [obras pias] have been necessarily based on the Acapulco trade. It is also declared that the annual situado from Mexico amounts to no more than 50,000 or 60,000 pesos, while the annual budget of the government expenses amounts to 500,000 pesos, which the royal treasury of the islands must pay from the proceeds of the duties on merchandise. The request of the Manila citizens for a permission to send 500,000 pesos’ worth, in 3,500 piezas, is very moderate; as the trade has been conducted, the 300,000 pesos’ worth has made 4,798 piezas, for the last five years—which is evidence of the infractions of law which have been committed in that commerce. Moreover, the proposition of the city that the duties belonging to the crown be levied on the number of the piezas, will be likely to prevent many of the frauds which are now practiced in this direction. The fiscal opposes the request of the city that the seamen be allowed an increase of the small amount already allowed them, free from duties, for investment on their own account, declaring that it will but increase the illegal trade already prevalent, and that the proposition to allow them 40,000 pesos’worth of trade (with twice that amount in returns for the merchandise) would allow the seamen a greater investment than even the citizens, since the former average only 115 men to each galleon. He advises that the officers of the ships be permitted to have a share in the lading of the ship, in place of their present wages; and that one large galleon be occupied in the trade to Acapulco, rather than two small ones. He reminds the king of the opening afforded by the trade between Manila and China for the conversion of the Chinese and the entrance of the gospel into that heathen empire.]80. [The treasury officials at Manila also write, seconding the proposal to despatch one large galleon; and they add that the royal exchequer of the islands will be ruined if the decree of 1720 is enforced, “for the commerce would cease, and consequently the royal duties which it was producing.”]81. The archbishop of Manila, the dean and cabildo of that church, and the provincial of the Society [of Jesus], in their letters of November 6, 7, and 8 of the same year, support the entreaty of the city; they deprecate the ruin (both spiritual and temporal) of the islands, and express the same opinion as that of the Audiencia and the fiscal, as will be seen by their letters, which follow below.82. The provincials of St. Dominic, St. Francis, and St. Augustine (both calced and discalced), in their memorials of the same year expatiate on the necessity and advantage of changing the aforesaid decree of 1720, and granting likewise to the islands the increase of the permitted trade which they solicit; and they reproduce in detail what the other prelates and ministers say.83. [The letter of the archbishop (Fray Franciscode la Cuesta) states that he has been urged to write it by the city and merchants of Manila, and the bureau of the Misericordia; and he begins, very naturally, by arguing that the religious interests of the Philippines and of China depend upon the maintenance of the commerce of the islands. He refers to the opposition made to it by the merchants of Andalusia, which he thinks has no good foundation, since their trade with the other European nations drains from España more money than does that of Filipinas from Nueva España—this last being their ground of complaint against the Manila trade; but even if the Sangleys and other heathen carry away silver from Manila, “they have not harmed the [Spanish] crown, and are friendly to the [Christian] religion; while it is certain that the European nations, even if they are not all opposed to religion, at least have been at various times hostile to the crown, and that the amount annually transported by the said nations to Great China and other heathen kingdoms exceeds four millions [of pesos].... And although the argument [of the Andalusians]—that the fabrics from China cause injury, at the expense of those which are transported from Cadiz—would have some weight if all the fabrics in which the Andalusians trade were manufactured in España, since they are not made there the above argument has very little value.” The Spaniards in Filipinas regret that so grievous burdens and restrictions are laid upon them through the influence of the Andalusians, and especially that the result of these must be very detrimental to the charitable funds which so greatly depend upon the Acapulco trade. Two-thirds of these, or 100,000 pesos, belong to theMisericordia alone, whose educational, religious, and charitable labors are so important to the public welfare and the maintenance of the Spanish colony in Filipinas; the remaining 50,000 pesos belong to other institutions. The archbishop therefore urges the king to accede to the requests of the Manila merchants.]84. [The dean and cabildo of the Manila cathedral also support the merchants; they fear lest the income of the church will suffer from the impaired condition to which the decree of 1720 threatens to bring the Filipinas colony. They adduce similar arguments to those contained in the preceding letters, all taking for granted that the prohibition of Chinese silks means the ruin of the Acapulco trade. Incidentally this letter states the following facts of interest: “The poverty of the soldiers is such that they always go about as mendicants and in need; for as they receive no more pay than that of two pesos and a fanega of rice—which is given every month to the soldiers, but to the convicts who serve [forzados] in the troops only the rations—if they could not find refuge in the aid given by the citizens, the alms from the charitable funds, and the broken food at the convent doors, and in what the more industrious can earn by doing errands, they would certainly perish.” The prebends of the cathedral find their salaries—which range from 500 to 200 pesos yearly, besides the dean’s 600—pitiably small and inadequate, and they must even resort to the charitable funds and to the gifts of friends to eke out their incomes. The same difficulties beset the parish ministers; but worst of all is the condition of the poor clerics who receive no pay, who have no income save occasionalofferings for masses and the alms of benevolent persons.]85. [The provincial of the Jesuits, Father Joseph Fernandez, seconds the appeal of the merchants.20He states that since 1709 the fortunes of the wealthy citizens are nearly all ruined—by calamities, unsuccessful sales at Acapulco, the failure of the galleons to make the voyage, poor crops in Filipinas, or the quarrels of the governors and auditors—and those who formerly made contributions to the religious orders now need and ask for help from them. “This city of Manila (and in it all the islands) is reduced to eight or ten private persons who are able with their own wealth alone to make up the 300,000 pesos which your Majesty allows for their commerce; and the number of its citizens who, as Spaniards, can call themselves such is very nearly 882—although it is true that there are millions of converted natives, and those who are not converted are innumerable. All these citizens depend for their preservation on the three or four piezas which are yearly allotted to [each of] them, according to their merits, in your Majesty’s galleon; and as most of them have not the means of their own to fill this space they have to give it up, or sell it to those who are richer; or they must ask for money from the charitable funds of the Misericordia, the tertiary Order [of St. Francis], or the religious, in order to fill their space on the ship. As they cannot ship therein anything except the coarse cloths and other goods which your Majesty names in your new regulations,the product of which is hardly enough to pay the expenses on them—duties, freight-charges, and carriers’ fees—the poorer citizens will see themselves forced to seek some other way [to make a living]. That means the desertion of these islands for India, and consequently a great diminution in the number of your Majesty’s vassals; and the islands will be exposed to the invasions of the Dutch and other enemies of your royal crown and of the natives. No few of these invasions have been experienced in recent years, and at this time we are being raided by the Mindanaos, the Joloans, and the Burneyans. And I can assure your Majesty that in the space of less than twelve years I have seen this stage21of the citizens of Manila changed five times. For, as it is composed of some who come from Europe (and they count for many), and of others who come from Nueva España, on account of the difference of the climate from that in which they were born they do not remain long; both classes, seeing the little comfort that they can find here, and how small incentive there is from riches (which is that which most influences those who do not possess enormous estates), either die in a short time, worn out with the misery of this country; or they leave the islands, to look for a more comfortable residence. Thus it comes to pass that only we religious and other ecclesiastics remain, with some persons who belong to the richer class (who are few), and these are Europeans, whom affection for their native land is always drawing away. If this [which I have mentioned above] happens (which may God not permit),all these millions of Christian natives will be left abandoned, and exposed to [the danger of] returning to their heathen condition; and of being possessed by the Dutch, or the Chinese, or any other nation that may find a profit in them.” The argument that the prohibition of the trade in Chinese silks will check the drain of silver from Nueva España is refuted by the provincial; he says, “For we who are near China, Batabia, the Coromandel Coast, and other ports of India, know with certainty that the ships and pataches that come to them from Europa to trade in them carry hardly any money for their traffic except the silver, with the stamp and seal of your Majesty, from Perù or from Mexico; and as those vessels have directed their route from Europa by way of Cape Verde, Buena Esperanza [i.e., Good Hope], Cape Comorin, and Sincapura, it must be supposed that they do not obtain the said silver anywhere else than from the commerce in Europa. Your Majesty could, in the course of several years, prevent the silver that comes from Mexico to these islands from passing over to China, to the Coast, or to Batabia, by commanding your governors and other officials at Manila to make strenuous effortsthat in the islands the natives, mestizos, creoles, and various other castes who live in them and are naturalized as subjects, be compelled to weave the cloth goods which are manufactured in other regions; and these people are no less skilful for the mechanical and even the liberal arts than are those of other nations. As for the fabrics of cotton, these people are able to weave them, for their own consumption, more durable and of better quality than the cloths which come from China and theCoast; and as for the silk goods, the hose which these natives weave are those which bring the highest price at Acapulco. The colors for dyeing the goods are furnished by the country itself; for there will be shipped from hereto the empire of China during this year more than thirty champan-loads of sibucao, or campeche, a wood from which the Chinese obtain carmine for their dyes; and the other colors they obtain from trees and roots which also are found in these mountains in abundance. As for the cinnamon, it grows very abundantly in the island of Mindanao, where your Majesty has the fort and garrison of Samboangan, with some missions that are administered by priests of my order, and by other religious from the discalced of St. Augustine. It would be of no little advantage to be able to cultivate the cinnamon, as the Dutch do; for the silver which that nation would be obliged to carry for that product would remain among the vassals of your Majesty, and thus there would be an end to that difficulty (which the merchants of Sevilla certainly exaggerate) of your Majesty forbidding the shipment of the goods which your royal decree specifies, which are those that have some value, in order to be able to pay the cost on the more bulky goods. Who will have courage to weave them, or hunt for them, when he knows that he must lose on them? In these islands abundance of gold is collected in various placers, in which work the slow and patient disposition of the natives is occupied; but as their minds are so careless and ignorant they content themselves with washing out only the exact amount of their tribute, which is five reals for each person. But if your Majesty would give your royal directions toyour governors and ministers, in the course of time it would be possible to secure the production of this gold in abundance; and if it were sent to Nueva España, and exchanged for the silver necessary for the maintenance of these your wretched vassals, the result would be that the latter product would always remain in the dominions of your Majesty. In these islands, also, some pearls are secured by diving, and in these seas some amber is gathered. In the mountains there is no lack of numerous civet-cats; and the civet, if measures were taken for its production, might be no small source of wealth to your vassals, and consequently furnish huge amounts to your loyal treasury.” Father Fernandez mentions that Felipe IV “spent in twenty years 170,000 ducados solely in sending religious to preach the gospel in Philipinas;” and that the monopoly on the buyo industry had produced in one year 11,000 pesos to the royal treasury, and that on wine 18,000 pesos; (but these amounts apparently refer to the price paid for a three years’ contract, rather than to the annual income of the crown from these sources).22]86. All the papers and reports which have been mentioned in this “Period vii” having been received in the Council, and the deputies from Philipinas, Don Francisco Diaz Romero and Don Antonio de Echandía—who deposited their credentials and letters in the office of the secretary—having presented themselves in it, they set forth their claims and stated, in a printed memorial (which they handed in on June 14, 1723) the injuries which the islands were receiving from the practice of the decree of October27, 1720. They entreated that its execution be suspended, and orders given that the commerce be continued with the yearly galleon in the same manner, so far as the lading was concerned, as was in use at the time when the aforesaid despatch was received there [at Manila]. The memorial, in eight leaves, is as follows:87. [This memorial by the city and merchants of Manila presents in detail the amount of their annual commerce in the various kinds of merchandise that are permitted in the decree. The gold exported from Filipinas to Nueva España amounts to less than 12,000 pesos, and is sent not as bullion or coin, but in the form of the slender chains [bejuquillos] wrought by the Malay natives for personal adornment; for in no other form could it compete with the abundance of gold mined in Mexico. The Chinese porcelain is shipped in small quantity, being mainly an article of luxury, like the gold ornaments; moreover, it is bulky and fragile. As for spices, Manila complains that the market for these in Nueva España is already appropriated by the merchants of España who send spices in the trading-fleets to Vera Cruz; in the fleet (of seventeen vessels) commanded by Don Fernando Chacón was carried the enormous amount of 170,737 libras of cinnamon, and more than 70,986 of pepper and cloves, besides various bags and chests of all these kinds of spice the weight of which was not noted. The only products of the islands which have commercial value in Nueva España are wax, lampotes, Ilocos blankets, and cordage; and the value of all that is exported of these, even counting with them the previously mentioned gold chains, does not gobeyond 30,000 pesos. The linen goods have hitherto been shipped from Manila to Acapulco only to fill in empty spaces in the allotments of lading, and have amounted to hardly 60,000 pesos, on which very little profit was obtained. If the main part of the galleon’s cargo has to be composed of these linens, the Acapulco market will be overstocked with them, and the prices there will be so low that Manila cannot afford to send another cargo of this sort. Moreover, as these goods are procured from the foreign factories at Batavia, Madrasta, Patàn, Punticheri, and Vengala, as soon as the traders at those posts understand that the Manila galleons must carry most of their lading in goods to be procured at those factories they will advance their prices enormously, and the galleon will be compelled to sail in ballast, and then only to procure the situado. The floss and raw silk which is the only form of that product permitted to Manila is so bulky a commodity, and the consumption of it in Nueva España is so small, that it too has been shipped only to fill up space; moreover, “for several years it has been increasing in cost, on account of the great amount of it which the Dutch, English, and French obtain from China for the fabrics which are manufactured in Europe.” The deputies, to substantiate their statements, refer to the official reports of the viceroys of Nueva España, and offer to bring forward evidence in their favor from various persons at Madrid who have resided in Filipinas. They claim that the Manila trade in silken fabrics has not harmed the merchants of España, since the silk which is produced in that country is hardly sufficient to supply the home demand, and it is necessary to bring to it foreign silks—exporting toNueva España some goods which have little demand in España; but even these do not occupy one hundred and twenty-five toneladas of space. The greater part of the silk goods woven in España are silks and velvets, and if the value of these has fallen, it is not the importation of Chinese goods which has caused this, but the change in the style of magistrates’ robes,23in which those goods are used, and the small amount of them that is used in the military service. “Just as in these kingdoms [of España] most of the persons of rank are clothed in no other fabrics than those which come from foreign countries on account of either their better quality or their luster—so the same thing occurs in Nueva España, where they follow in everything the customs of Europa; and for this reason most of the silken fabrics which are carried thither in the trading-fleets are from the kingdoms of Inglaterra and Francia, and the provinces of Holanda—as silver and gold tissues, brocades and laces of the same sort; hose, and other stuffs, the sale of which does not injure that of the Chinese silks, on account of the greater value placed upon the former. Therefore, as the silken fabrics which the aforesaid shippers carry [to Nueva España] are not all from the mills of España, but these Spanish silks are in very small quantity and of the sort which are rejected here, it is evident that the injury is not to the commerce of Andalucia, but to the foreign nations. For, since all the gold and silverwhich comes [to España] is carried in trading-fleets and galleons—except what is obtained for wines, brandies, oil, and other products—the slender profits which the traders of Philipinas gain from the sale of the Chinese fabrics will also be given up for their benefit by the foreigners on account of the abundance of the products from their own mills which they will ship to Cadiz, in order that these may be carried to the Indias.” The argument is repeated, that most of the profits in the Acapulco trade must go to European foreigners, if it is restricted to the few and unimportant products of the islands, and thus the enemies of España are strengthened; while if the Chinese trade is allowed those profits fall into the hands of people who cannot and will not injure the Spanish power. The enforcement of the decree will injure not only the citizens of Manila, but the revenues of the crown, which amount annually to an average of 228,557 pesos, besides the duties produced by the Acapulco trade, which amount to 250,000 pesos more. The treasury will have no means to buy the rice of the Indians, their only valuable product; the Sangleys will have no occasion to trade at Manila, which will lose the amount of their licenses (more than 23,000 pesos), besides the import duties and alcabalas which they pay there, which amount to more than 37,000 pesos; and the situado sent to both the Philippines and Marianas must be taken from the Mexican treasury directly, which will be too heavy a burden for it. The king is reminded of the poverty of the Philippines in all natural resources save rice, and their dependence on the Acapulco traffic for money, clothing, and all other needs save that of food. The recent building of twosmall galleons has caused the treasury a great amount of expense, quite disproportionate to that of the one large vessel which hitherto had been used for the Acapulco trade—to say nothing of the extra expense caused by the duplication of crews, officers, and soldiers which is thus rendered necessary. The smaller ships are less able to resist either storms or pirates, and the few experienced seamen in the islands must be divided between them, when they should be massed in one vessel. Again is mentioned the dependence of the missions, and the conversion of the heathen, upon the Acapulco trade; the Indian villages that are more or less christianized now number 457, with 111,683 families, who are in danger of relapsing into heathenism, or being converted to Mahometanism, if the missions cannot be kept up.]88. The Council, on June 14, 1723, agreed that this memorial should go to the fiscal with all those that came before, with the letters of the Audiencia, officials, and prelates which had been laid before the Council on the twelfth of the same month.89. The consulate of Cadiz, by a memorial presented in the Council on the twenty-first of the same month and year-being informed of the petition from Manila requesting that changes be made in the decree issued on October 27, 1720—asked the Council to order that the argument recently brought forward by Manila in regard to this be communicated to them; this having been referred to the fiscal, he was of opinion that the aforesaid document should be communicated to the consulate, as had been done in the year 1720 by order of his Majesty; and the Council agreed to this by a decree of July 12, 1723.90–92. [On September 4 following, a conferencewas held by the representatives of the commerce of Sevilla, to consider the question of the Philippine commerce in Chinese silks and the royal decree forbidding that trade; a copy of the memorial sent from Manila, and other documents bearing thereon, were submitted to that body by the consulate of Cadiz, who had already taken action thereon, and now asked for the support and coöperation of the Sevilla merchants. In a formal resolution by the latter, they express their entire concurrence with the views of Cadiz, and request the king to enforce the decree of 1720. They make light of the statement regarding the great amount of spices carried to Nueva España by Chacón’s fleet, and intimate the probability that the remonstrance by Manila is really instigated by the traders of Nueva España, who, on account of the enormous profits which they make by sending money to the Philippines for investment, must be most affected by the proposed restrictions on the Manila commerce. Sevilla answers the argument of Manila that only one hundred and twenty-live toneladas of Spanish silks are sent to Nueva España, by declaring that even that small amount will soon be reduced to nothing unless the king strictly prohibit the introduction by the Filipinas ships into Nueva España of fabrics woven of silk and gold or silver; also that the silk-mills of España will be ruined and abandoned, and consequently the cities of that country will be inundated with poor people and criminals. On the day before this conference, a similar one was held by the consulate of Cadiz and representatives from the merchants of that city, who made a vigorous remonstrance against the injuries caused to Spanish commerce and industry by the Manila-Acapulcotrade, and especially by the frauds and the infractions of law therein, on which they expatiated in the above conference. In the report drawn up by them they mention several of these. For instance, the merchants of the City of Mexico sent large sums of money to Acapulco for preparing the Manila galleon for its voyage; “and in the three months during which the ship was detained at that port it unloaded an enormous cargo, held its fair, and returned laden with silver, without wintering in that kingdom, on account of the easy and prompt disposal of all that it carried. This cargo was usually 10,000 or 12,000 bales, half of silken fabrics and half of linen goods, [lencería], the proceeds from which reached four millions of pesos; and all this in pesos, eight-real and four-real pieces, since in exchange for the said goods they did not desire or carry any produce, nor even doubloons, nor bars of silver, for all must be new pesos and of Mexican coinage, these being the coins which are current in Turquìa, to which country they were going, since the greater part of the said goods come thence.” Reliable witnesses have told of mule-trains entering Mexico laden with Chinese stuffs, which must amount to almost the value of the goods carried by the eighteen vessels in the trading-fleet which that year came from Spain under Don Manuel de Velasco; and the market of the latter was ruined by the former. “Although the silk fabrics which the ships bring from Philipinas have not the quality or durability of those from España, and the linen goods are all of cotton, and do not last half as long as do those from France, yet as the former are sold cheap, and have a good surface, and are showy, while they last the commerce of España ischecked and suspended.” The merchants of Mexico send so much money to Acapulco that not enough is left to send the trading-fleets back to Spain, which are compelled to winter at Vera Cruz in order to obtain the proceeds of their cargoes and equip the vessels for the return voyage. “So sweeping and irreparable is the great injury which these goods from China, or from the Turks (which is the more certain), cause to the most important cities of España that when the said ship was not allowed to carry those goods Sevilla had more than 12,000 looms for the manufacture of silks of every kind; and with these, even without other stuffs, so great a number of people were employed on them, and so great was the opulence of that city and of all its domain, as is made evident by the great services which on all occasions Sevilla rendered to his Majesty, with sumptuous buildings—churches, hospitals, government buildings, and private houses. But without greater casualty than that of the importations in the ships from China, that city found itself in a straitened and miserable condition, not two hundred looms being left in it, on account of there being no consumption for its fabrics; and the great mass of poor people, who then supported themselves by their labor, are now miserably perishing. No less proof is afforded by what is occurring in Granada; for there more than 12,000 looms were employed only on taffetas (both double and plain), satins, plushes, and all kinds of silk-weaving; and more than 50,000 persons, men and women, were engaged in the industry and labor of making silk goods. For this reason, the amount of silk worked up each year was more than 180,000 libras, from which proceeded considerableprofits to the royal exchequer, for the duty on each libra amounted to thirteen reals and three cuartillos; but, with the one but sufficient reason of the importations of Chinese goods, [that industry] has so fallen away that the amount of silk sold in that city at each gathering of silk does not reach 40,000 libras, and the number of looms operated, on coarse stuffs, is less than 2,000—a similar condition to those of Sevilla.... The same troubles are suffered by Cordova, Jaen, Ezija, Priego, and Alcalà la Real, with many other places which in both the Andalucias were growing and being maintained by the said manufactures. It is not less worthy of attention that the silk-growers of the aforesaid kingdoms of Sevilla, Granada, Cordova, and Murcia are, for lack of sale for the silk that they produce, giving up the cultivation of the mulberry-trees, and abandoning their farms and the places where they dwell.” Cadiz cites the action of Conde de Monclova, viceroy of Peru, who prohibited the shipment of Chinese goods from Acapulco to South America, making them contraband and confiscable, recognizing “their poor quality and lack of durability, and the great detriment which this trade caused to the merchants [of Peru], who go down to Portovelo to hold the fair [at the arrival] of the galleons, which has been the greatest in the world;” and urges the king to enforce strictly the decree of 1720. Such action would greatly benefit the realms of Spain, and would not cause injury to the Philippines, because none of the said Chinese stuffs are made in the islands; “and the only ones who could grieve over it are the Turk, and other princes of Assia, Mahometans, and enemies of our holy Catholic faith.” Asfor the complaint of Manila that the propagation of that faith depends on the silk trade, Cadiz refuses to believe this, and refers the king to a document in Manila which refutes that notion. This is “a memorial or report made by a minister of that Audiencia, N. Calderòn, in which is inserted another, written by Father Fray Victorio Ricci,24of the Order of Preachers, who was for many years a missionary in the empire of China, and afterward in the Philipinas Islands; it was sent by the Supreme Inquisition to its commissary in the islands, in order that he might send to his Majesty information on the points therein.... In these papers it will be clearly evident that the progress and propagation of the faith is not diminished by depriving the islands or the kingdoms adjacent to them of the commerce prohibited to them, or by the restriction which his Majesty has laid on it;” the above prohibition, therefore, is not the cause of the ruin of the citizens of Filipinas.]93–94. [These replies by the merchants of Andalusia call forth another memorial from the Manila deputies, which occupies fourteen printed sheets. They repeat their former arguments, enforcing them by reference to the despatches from the Audiencia of Manila, the archbishop, and the various religious bodies there, and still more to the letters previously addressed to the king by the viceroys of Nueva España; and they adduce various instances from the history of the Manila-Acapulco trade to the same effect. They also undertake to refute the chargesmade by the merchants of Sevilla and Cadiz, and claim that the latter have misrepresented certain facts. We note here some points made by the Manila envoys, as giving new information on the matter at issue. They say that the maintenance of Filipinas, including the missions and military posts, costs the Spanish crown annually 515,568 pesos, for which sum the royal treasury of Mexico should be responsible, according to the laws of the Indias; but it sends thither only 40,000 pesos in money and some 60,000 in goods, and even this remittance comes from the duties which the Manila galleon pays at Acapulco. But in 1637 and for some years later, the situado sent to the islands amounted to more than 325,000 pesos in money, and enough goods to make up the 500,000 pesos. This, however, was largely the result of the failure of the Manila merchants to ship goods to Mexico, a proceeding caused by the undue harshness and severity of the royal visitor Pedro de Quiroga;25but it led to the abolition (by royal decree of September 3, 1639) of the restriction on the kinds of goods permitted to Manila, only limiting the amount of their investments. It is strange that Manila has pursued this commerce for one hundred and forty years without any protest from Andalusia until now; the decadence of the latter is due rather to lack of economy in the use of their wealth than to the competition of Filipinas; and Andalusia has always encountered trouble, since the persons interested in the greater part of the lading of the galleons and fleets have been and are foreigners—French, English, and Dutch. Andalusia claims that thegalleon unlades at Acapulco more than 12,000 piezas, half of them containing silk goods; but the certificates of the royal officials show that in the ten years from 1710 to 1720 the total number of piezas (in ten galleons) was 36,895, including therein the 4,299 half-chests in which the silk goods were shipped—making the average lading of each galleon only 3,660 piezas. The detention of Velasco’s fleet was not due to the arrival of the Manila galleon, but to other causes. The fleet of 1698, in charge of General Mascarùa, was sent lightly laden, and in 1699 Velasco’s fleet followed it, but encountered the other at Vera Cruz; the presence of the two large fleets at one time, and the ravages of yellow fever [bomito negro,i.e., “black vomit”] at that port, rendered it impossible to sell the goods to advantage, to transport them to Mexico, or to equip the vessels for the return voyage. When Velasco could set out for Spain, he received news of the death of Carlos II, and the danger of war between Spain and other powers, which made the merchants unwilling to risk their property on the seas at that time. Finally the Spanish fleet was escorted to Spain by a French squadron of warships, but on reaching Vigo was attacked by an English and Dutch fleet, which inflicted considerable loss on the Spaniards. Moreover, the trading-fleets sent from Spain to Nueva España are nearly twice as large in the last few years as they used to be, which overstocks the colonial markets with goods. Manila claims that the decadence of the silk industry in Andalusia is due to the pest which ravaged that province (with especial mortality in Sevilla) in the middle of the past century; and that part of the remaining population had emigrated toMurcia and Valencia, where they had cultivated mulberry-trees and built up the manufacture of silk goods. Another reason assigned by some writers for the decrease of prosperity in Andalusia was the imposition, at that time, of heavy war-taxes. As early as 1666, the city and the merchants of Sevilla had represented to the crown “their lamentable condition, and the ruin of their looms, caused by the imposition of the millones26and the concourse of foreigners to Cadiz to introduce their own merchandise.” This led to a resolution by the royal Council that the decree of January 25, 1661, should be enforced, which provided thatthe custom-house and collection of duties for the Indias should be withdrawn from Cadiz, and that the galleons and fleets should take on their lading in the river of Sevilla and the port of San Lucar. As for the stuffs from foreign countries which, it is alleged, are brought to España and crowd out the manufactures of that country, these are only the fabrics which the more industrious French, English, and Dutch make with the raw material, both wool and silk, which España exports. In 1696 Sevilla complained to the king of the injury which it was experiencing from the importation of foreign goods, but did not mention the Chinese stuffs among these. “In Madrid and Valencia the manufacturers are at present complainingthat the price of silk has risen very high, not because the crop [that is raised in España] is not an abundant one, so much as on account of the so great export, not only from that kingdom but from otherregions, to foreign countries, that which the French alone have bought this year amounting to more than 300,000 doubloons; and if asked about this, any dealer in these goods or any official will answer with entire candor, without blaming the commerce of Manila.” The foreigners bring back these silk goods to España, in order to supply with them not only that country but the Indias, through the fleets and galleons; “and this is what the consulate [of Cadiz] is defending, in order that these goods may, by not introducing into Mexico those from China, be sold [there] with a higher reputation.” The highest authorities all concur in the statement that the Spanish silks sent to Nueva España do not amount to one hundred and twenty-five toneladas. The statement that the Manila galleon carries from that country 4,000,000 pesos is unwarranted; the only possible ground for it is that in 1717 the viceroy allowed the galleon to carry to Manila 2,000,000 pesos, because for three years past no money had been sent to the islands—on account of poor sales at Acapulco, a galleon forced back to the islands by storms, etc.—on condition that the king’s ten per cent be paid on that amount. In other years the amount of money illegally shipped has been very small. Cadiz has alleged that money has been scarce there for some years; but Manila declares thatfrom December, 1720 to July, 1723 over 40,000,000 pesos worth of gold and silver, in coin and bullion, has been landed at Cadiz, without including the value of the other products of the Indias. Cadiz asserts that the money obtained from Nueva España goes to the Turks, the enemies of the Catholic faith; but the Spanish merchants are continually furnishing moneyto other enemies of the faith, the English and Dutch. Moreover, the commodities which the Manila galleon carries are not obtained from the Turks, but (through the European factories) from Indostan, Tunquin, Lao, China, Japon, and the Philippine Islands; while Manila is not even permitted to trade with Arabia and Persia, whose products are carried to the ports of the Levant, and at those fairs the traders from all the European nations buy those goods, with money which has come from the Indias. Manila declares that the trading-fleets carry to Vera Cruz no Spanish products save wines, brandies, oil, raisins, and almonds, and the previously-mentioned small amount of silk goods; all else in their cargoes is of foreign make. The spices which the decree of 1720 allows to the islands will not suffice to pay the expenses of the voyage, especially when Manila must compete with the trading-fleets from Spain in the shipment of these products. The collection of royal duties on goods is regulated by “cubic palmos in accordance with the measurement of the bales [frangotes] and piezas which are shipped.” As for the memorial by Calderòn, Manila asserts that it does not bear on the present question; that auditor, in the time of Governor Curuzalaegui (in which occurred an uprising of the Sangleys), sent a letter to the king remonstrating against the liberty given to the Chinese, and advising that they be not allowed to have intercourse with the Indian natives, or even to live in the Parián. This tolerance had been extended to them for the sake of attracting them to the Christian faith, but Calderòn regarded it as no longer necessary, since they had, even then, a number of Christian missionaries in their own country. In hisletter, he cited Father Ricci in support of some of his statements. While the Spanish silks sent to Nueva España amount to only one hundred and twenty-five toneladas, those of foreign make sent thither from Spanish ports are more than a thousand toneladas. The French, English, and Dutch trade at Canton, where the main part of their commerce is in raw silk.]95–96. [The above memorial was referred by the Council to the fiscal, on October 6, 1723; and on December 22 following, a printed answer to both of those by Manila was placed before the Council by the consulate and merchants of Cadiz. They remind the king that when Filipinas was first discovered the ships brought back to España abundance of gold, pearl, amber, civet, wax, and fabrics of Ilocos; and for some time afterward these and many other valuable products were exported from Manila, which became the emporium of both Eastern and Western India. In those early times, when so much zeal and energy for the conversion of the heathen was displayed, it was not necessary to the missions to depend upon the trade in Chinese silks; but, for the sake of benefiting the natives of the islands, and to check the drain of silver to foreign nations, the Spanish government (by decrees of 1589 and 1596) authorized the barter and exchange of the products of Filipinas for those of China, under the system calledpancada. But Manila has distorted this into the assumption that the Chinese trade was intended for the maintenance of the Spanish colony in Filipinas, and that it was to be without restriction, save in its amount—although, as a fact, the trade in silk fabrics of China was not introduced until many yearslater. The system of distributing the commerce among the citizens of Manila replaced the earlier pancada, and led to such abuses that Felipe III attempted to check them by a severe decree (1620); and later enactments placed the Acapulco commerce on such footing that it flourished greatly, to the mutual advantage of Filipinas and Nueva España, and to the enrichment of Manila and its citizens. That commerce benefited the poor citizen as well as the rich; but the trade in silks is only for the benefit of the wealthy merchant and the rich consumer, as they are articles of luxury. The earlier commerce of Manila also supported and stimulated the consumption of Spanish silks in Nueva España and Peru, and the silk industry flourished in the mother-country; but the later introduction of Chinese silks into the American colonies, and the frauds and excess connected with this trade, have ruined the silk industry on both sides of the Atlantic, and even impaired the prosperity of Manila. Cadiz claims that the merchants of Mexico have committed many frauds, and transgressed the ordinances, and prevented the execution of these, in regard to the Manila trade, and do so with the collusion and aid of the officials: for instance, the galleon “Nuestra Señora del Rosario” arrived at Acapulco on January 11, 1699, and the Manila citizens attempted to compound the duties on the cargo for 100,000 pesos; but the royal fiscal opposed this, showing that the ship had brought 6,754 piezas of lading, without counting a considerable quantity of pepper and other goods outside of the registration. It was also found that although the law restricted the entire cargo to the value of 250,000 pesos, and its ownership to the citizens of Manila,this vessel contained goods to the amount of 233,966 pesos which belonged to the citizens of Puebla alone, and it was estimated that it must contain at least a million pesos’ worth of goods belonging to merchants in the City of Mexico. The Mexican government compelled the payment on these goods of duties amounting to 50,000 pesos more, and would have investigated the whole matter, to ascertain the exact amount of the illegal shipments; but the commercial interests of Mexico exerted such influence against this that the Audiencia desisted from the undertaking. Again Cadiz accuses the importation of Chinese silks into Nueva España of having ruined the silk industry in España; although those goods are so thin and poor that they are worn out even before the Manila galleon leaves Acapulco, they are so cheap and showy that they undersell the better goods from España even competing with the latter in Vera Cruz, where the Chinese goods are purchased by the traders of Habana, Puerto Rico, Cartagena, and other Spanish colonies; and all this is overlooked by the Spanish officials in high places, because they profit by this illegal traffic. If the king will prohibit the importation of silk woven with silver and gold, and “check the hand which Mexico moves at the command of Manila,” the silk industry will be revived in España, its people will be kept from idleness and poverty, and foreign countries will no longer drain its resources. Cadiz desires Manila to content itself with the spice-trade, which is a staple and profitable line of commerce, and which Manila can carry on more cheaply and promptly than Spanish merchants can; the spices sent from España onChacón’sfleet were needed to supply the scarcity ofthem at that time, as the Manila trade had been interrupted temporarily; but if the latter be regular, such shipment from España could not occur again. From the year 1690, the indult ran from 50,000 to 74,000 pesos, on the basis of the 250,000 pesos allowed to the Manila trade; but it is evident that the duties ought now to amount to above 500,000 pesos, on the enormous quantities of Chinese silks that the galleon of 1,000 toneladas carries.]97–105. [This memorial, with like protests from the cities of Toledo, Ezija, and Murcia, was sent to the fiscal, who on March 16, 1724, handed in his opinion on the question at issue—that is, whether the decree of 1720 should be changed or enforced. He lays down three propositions: First, that the trade in Chinese stuffs should not be prohibited to the citizens of Filipinas, since it is necessary to their maintenance, those islands having no profitable mines or commercial products; moreover, the introduction and propagation of the Catholic faith therein is an obligation of justice as well as of religious zeal, and was so recognized by Felipe II, when he refused to abandon Filipinas; and to fulfil this obligation the Spanish colony there should be sustained. For this purpose the trade with Nueva España had been granted to Manila, to such extent as should be necessary for its preservation, that is, to the amount of 250,000 pesos, and 500,000 in returns; and in the permission given to Manila to trade with China there had been, and should be, no restriction as to the woven silks of that country. Second, this trade ought, nevertheless, to be strictly confined to the amount of their permission, and all frauds to be prevented; for the complaints of Spanish producersand merchants had been caused by the frauds and abuses in the Manila trade, rather than by the mere fact of its including Chinese goods; the fiscal even suggests that they have an official representative at Acapulco to aid in the unlading and inspection of the Manila galleon, and report thereon to the viceroy, which would aid in preventing frauds and enable the Spanish merchants to discuss the question more intelligently. Third, that in case the trade in Chinese silks be prohibited to Manila, that in spices should be absolutely prohibited to the Spanish merchants and given exclusively to those of Filipinas; while the American trade in silks should be free to the Spaniards.]106–111. [The Council considered this question on April 6, and decided that the decree of 1720 should be changed; they recommended that the Filipinas trade be continued as before the decree, and employing but one large galleon; that the decree of 1702 should be enforced, save that the goods should be valued not by actual inspection of the bales but by invoices presented by the shippers, with their sworn statements that the goods were their own; nor should any indult, payment of double duties, or other form of composition be tolerated; and that the royal officials at Manila, Cavite, Acapulco, and Mexico should be held responsible for the fulfilment of these regulations, under severe penalties. This proceeding was approved by the king, who issued despatches in accordance therewith (June 17, 1724) to the viceroy of Nueva España and other officials concerned therein; and on August 8 the merchants of Cadiz were invited to nominate a deputy to watch the Acapulco commerce.]

PERIOD VIIOf what was done in Manila on receiving the decree of October 27, 1720. Recourse to the Council by their deputies. Reply from the commerce of Andalucia, and what was decided in regard to this matter in the year 1724.71. On August 2, 1722, the governor, Marqués de Torre-Campo, received at Manila the ordinance despatched on October 27, 1720, of which the preceding “Period” speaks. Having caused this decree to be published by a proclamation in that city, record of it was made in the offices, and it was communicated to the municipal council in open session. The cabildo protested against it, promising to obey, but resolving to set forth to the governor in the first place, and afterward to his Majesty, the damages and troubles which would result from its execution to religion, to the royal treasury, and to the greater welfare of those islands, from their not continuing to enjoy the permission to trade in fabrics of silk, which they had possessed for more than one hundred and forty years. They would therefore be obliged to entreat that his Majesty give them permission to retire, with their families, to the lands and domains of his Majesty which they should consider most suitable.72. In a long memorial presented to the governor was set forth in detail the motives on which they based this action; and when orders had been given that the fiscal of that Audiencia should examine it, although he recognized that their statements were correct, and that the islands could not maintain themselves on the system of commerce which had been laid down, he demanded that orders should be givento fulfil the cited royal decree, and that the city and merchants should appeal to his Majesty who, there was reason to expect, would take care of his vassals there, and of the interests, both spiritual and temporal, which were concerned in it—and the governor gave orders to that effect. Although the city and the merchants by a second memorial insisted upon a suspension of the above regulation, demanding that, in case there was no room for it and for continuing their trade in silks and stuffs as heretofore, at least he should declare that they were not obliged to invest their funds in the commodities which were prescribed to them, as it would occasion their total ruin (and they demonstrated this): nevertheless, the governor, bearing in mind that the damages to his Majesty would be no less, if the galleon for that year should go empty, commanded that, in accordance with the amount permitted by the cited regulation, they should make the distribution of the [permits to ship] merchandise as his Majesty had commanded. The city and the merchants, with the hope that his Majesty would give attention to the urgent representations that would be made by the commissaries whom it had been agreed to despatch to the court, agreed to continue the commerce meanwhile conformably to the despatch of 1720—sacrificing out of respect to his Majesty, and in order to maintain the religion established in those islands, their own wealth, which necessarily must be ruined and lost in a commerce so useless and unfortunate as that to which they were reduced; since the bulky commodities, on account of their abundance and poor manufacture, would not allow them to gain ten per cent, since the risks extended to fifty per cent.73. The city of Manila, in order to render commendable and frame in more formal manner its appeal from the aforesaid decree of October 27, 1720, which it must bring before the royal person—not only for the continuation of the traffic in the silken fabrics, but also for the increase of its permission from the three hundred thousand pesos which it was enjoying to five hundred thousand—came before the Audiencia and presented before it the arguments and reasons in favor of both these requests. After explaining the losses that would arise from the desolation and depopulation to which the islands would come (which the Audiencia took into consideration in its memorial, as will be noted) the city added that when in Manila there were only 230 citizens (which was in the years 1636–37) returns of 500,000 pesos were permitted to them; but since in the year 1722 the city had 882 citizens, and there was an increase in the charitable foundations, which placed 150,000 pesos at risk on each galleon, the necessity was evident of increasing the permission to 500,000 pesos—350,000 pesos for the citizens, and 150,000 for the charitable foundations. This increase in the number of citizens made necessary the expansion of the permission, from the very fact that in the year 1702, in which there were only 400 citizens, his Majesty had permitted 300,000 pesos of investments, and 600,000 pesos in returns.74. It was also expedient that permission be given to the seamen to transport in their own chests goods up to the amount of 40,000 pesos of investment, on account of the importance of interesting them in the defense,15and in order to facilitate that in provincesso remote there should be Spaniards who would serve as artillerists and seamen, since their wages alone, in voyages so arduous and long, could not be sufficient incentive. In order that that commerce might be regulated and infractions regarding the lading be avoided, an arrangement was proposed to his Majesty in which the annual investment was reduced to 3,200 piezas of the regular sizes—half-bundles, bags, sacks, [churlos,balsas(forbolsas)] cakes of wax, and other like packages of bulky commodities, and three hundred half-chests of goods from China, in order to supplement the said 3,20016piezas. Consequently, at the despatch of the galleon there would be nothing else to do except to distribute the said piezas and issue the permits for its lading—collecting 10,000 pesos for the royal duties, at the rate of two per cent, for this purpose rating the 3,200 piezas at 128 pesos and 1 tomin, and the half-chests at 300 pesos and pay at Acapulco thirteen per cent, regulating the 3,200 piezas at 256 pesos and 2 tomìns, and the 300 half-chests at 600 pesos each. This would result in the royal duties at both ports amounting to 140,000 pesos, and in return would be brought back, for the account of the permission, a million pesos; and thus would be avoided sworn declarations, and other dubious measures to which the previous regulations were subjected.75. The Audiencia of Manila in a letter of November 9, 1722, taking into consideration another which they had written on August 6, 1713, in whichthey set forth the losses which that commerce had suffered—in [the wreck of] their galleons, the unsuccessful fairs of Acapulco, and the excessive pecuniary extortions that they had suffered in Acapulco on account of the royal duties and in other ways—to the end that new measures might be taken by his Majesty for the rigorous reëstablishment of the commerce of those islands, describe (influenced by the urgent representations made by the city and by previous information obtained by each auditor) the affliction which has been caused by the new decree of October 27, 1720. They declared that they judged necessary for the maintenance of these islands and the propagation of the holy gospel, not only the permission for the silk and the stuffs prohibited by the cited despatch, but also the increase of the permission from 300,000 to 500,000 pesos. The Audiencia affirmed that the Spaniards could not exist without this commerce, because the culture of the fields was in the hands of the natives and the management of the guilds [gremios] in those of the Sangleys and their mestizos; that the salaries and pay with which the military officers, soldiers, and civil officials were recompensed did not reach half the annual expense of their families, in consideration of which it was commanded to include then the distribution of the lading of the galleons; and that, while the permitted amount was 300,000 pesos, and the number of citizens so great, the investment of each one, even if all were alike in wealth and services, did not amount to 400 pesos, the profit on which was not enough for the proper support of a man who was not actually poor, and on this account they could not increase their wealth. When the Europeans see that it is useless to transport goodsto those regions where there is not, outside of commerce, any motive which would induce them to remain, or which would bring other new traders, those who consider the matter have reason to fear that in a few years the capitals of those who live there will be consumed, and that others will refuse to enter into the same experience; then Philipinas will be left to the Indians and Sangleys, the gospel ministers without the guards of Spaniards for their protection, the military posts without garrisons, the natives without any control, and everything on the blink of a deplorable ruin.76. That with the commodities which were allowed by the said royal decree, the lading of the annual galleon could not reach the gross amount of the 300,000 pesos of the commission. From this it resulted that that amount was diminished and the traders exposed to evident loss in Nueva España, on account of the abundance of those very articles of merchandise; and that would result in cutting off the proceeds of the many and large charitable funds, founded on the merchandise risked in those galleons, for the support of clergymen, hospitals, convents, divine worship, dowries to orphan girls, and many other alms—which, even though they were no more than those which were administered by the brotherhood of La Misericordia, and by the tertiary Order of St. Francis, were of the greatest importance, and their failure a most notable affliction to all the islands.77. That by the exclusion of the stuffs and silks, which were the principal articles of commerce of the islands with China, all that commerce [i.e., with Nueva España] would come to an end, since all the rest was of so little value that it could not, withoutthe substantial aid of the silks, allow any profit. From this would result another great difficulty in the propagation of the holy gospel, that if the Chinese do not come to the trade they will lose the opportunity for conversion which so many have attained, attracted by familiar intercourse with the Spaniards, with the occasion of this commerce, and there would be great difficulty in introducing the gospel ministers into those dominions; and these are motives which have always engaged the chief attention of his Majesty, to judge by the laws. The Audiencia concluded by expressing the opinion thatthe prohibition of the silks should be removed, and an increase be granted in the permission to 500,000 pesos, with the number of piezas which the city was proposing—this regulation being made in proportion to the number of citizens, in order that the islands might maintain themselves, and thus obviate the serious inconveniences that were experienced; and, as for the duties which the city proposed, this question was referred to the decision of the Council.78. The fiscal of that Audiencia, Don Pedro Bedoya,17in a letter of November 15, in the same year, 1722, in consequence of the duplicate copy which he received of the royal decree of October 27, 1720, states on his part—after repeating his previous opinion regarding its execution, as given to the city of Manila, the action taken by the governor, the recourse by the city to the Audiencia, and the report made by that body—what his opinion is, in fulfilment of his obligation, in regard to the memorial of the city and the merchants; it is brought under four heads, which are:IThe necessary dependence which the maintenance of these islands has on the commerce, in order that the Spaniards may maintain themselves in them; and the benefit from the charitable funds, in which are annually expended 75,000 pesos—which sum proceeds from the trading of the 150,000 pesos which are carried in the annual galleon on account of the said charitable funds.IIThat if the prohibition of the stuffs and other commodities from China remains, their former control of the trade therein will be disturbed, and the royal decrees issued for this purpose (some of which are compiled18) will be subverted—such as those which command that the commodities which they convey shall be bought from the Sangleys; and that if this [Chinese] commerce is prohibited that of Nueva España becomes unprofitable, as the bulky commodities do not fill up the amount of the permitted trade, and it will not be possible to pay the cost of traffic in them without those from China.IIIThat for the maintenance of these islands, the support of the Spaniards, and the success of the charitable funds, it is necessary that the amount permitted be increased to 500,000 pesos and a million of returns, with the inclusion of the fabrics from China.IVThe regulation of the lading, in order to avoid infractions of the law [is necessary]; as also that the dubious and burdensome obligation of making sworn declarations be laid aside, and that the quality and number of the commodities which are transported must appear in the registers.79. [These points made by the fiscal are discussed at length by him in a report addressed to the king, dated November 15, 1722. Among other things, he states that the merchants prefer one galleon of 800 or 900 tons burden to two of 500 tons each, as being less expensive (on account of requiring fewer officers and men), safer (as carrying larger cannon) and less exposed to danger from either enemies or storms, than the two smaller vessels; that the industry and love of gain displayed by the Chinese who reside in the islands have secured to them the control of all the crafts and useful arts, and of the commerce of the islands save that with Nueva España, which is therefore the only resource of the Spanish citizens; that the current rate of income19is but five per cent in the islands, while thatcommerce brings in fifty per cent; that most of the rural estates [haciendas] are possessed by the religious orders; that houses constitute property of little value, on account of the frequent fires and earthquakes; and that consequently the charitable foundations [obras pias] have been necessarily based on the Acapulco trade. It is also declared that the annual situado from Mexico amounts to no more than 50,000 or 60,000 pesos, while the annual budget of the government expenses amounts to 500,000 pesos, which the royal treasury of the islands must pay from the proceeds of the duties on merchandise. The request of the Manila citizens for a permission to send 500,000 pesos’ worth, in 3,500 piezas, is very moderate; as the trade has been conducted, the 300,000 pesos’ worth has made 4,798 piezas, for the last five years—which is evidence of the infractions of law which have been committed in that commerce. Moreover, the proposition of the city that the duties belonging to the crown be levied on the number of the piezas, will be likely to prevent many of the frauds which are now practiced in this direction. The fiscal opposes the request of the city that the seamen be allowed an increase of the small amount already allowed them, free from duties, for investment on their own account, declaring that it will but increase the illegal trade already prevalent, and that the proposition to allow them 40,000 pesos’worth of trade (with twice that amount in returns for the merchandise) would allow the seamen a greater investment than even the citizens, since the former average only 115 men to each galleon. He advises that the officers of the ships be permitted to have a share in the lading of the ship, in place of their present wages; and that one large galleon be occupied in the trade to Acapulco, rather than two small ones. He reminds the king of the opening afforded by the trade between Manila and China for the conversion of the Chinese and the entrance of the gospel into that heathen empire.]80. [The treasury officials at Manila also write, seconding the proposal to despatch one large galleon; and they add that the royal exchequer of the islands will be ruined if the decree of 1720 is enforced, “for the commerce would cease, and consequently the royal duties which it was producing.”]81. The archbishop of Manila, the dean and cabildo of that church, and the provincial of the Society [of Jesus], in their letters of November 6, 7, and 8 of the same year, support the entreaty of the city; they deprecate the ruin (both spiritual and temporal) of the islands, and express the same opinion as that of the Audiencia and the fiscal, as will be seen by their letters, which follow below.82. The provincials of St. Dominic, St. Francis, and St. Augustine (both calced and discalced), in their memorials of the same year expatiate on the necessity and advantage of changing the aforesaid decree of 1720, and granting likewise to the islands the increase of the permitted trade which they solicit; and they reproduce in detail what the other prelates and ministers say.83. [The letter of the archbishop (Fray Franciscode la Cuesta) states that he has been urged to write it by the city and merchants of Manila, and the bureau of the Misericordia; and he begins, very naturally, by arguing that the religious interests of the Philippines and of China depend upon the maintenance of the commerce of the islands. He refers to the opposition made to it by the merchants of Andalusia, which he thinks has no good foundation, since their trade with the other European nations drains from España more money than does that of Filipinas from Nueva España—this last being their ground of complaint against the Manila trade; but even if the Sangleys and other heathen carry away silver from Manila, “they have not harmed the [Spanish] crown, and are friendly to the [Christian] religion; while it is certain that the European nations, even if they are not all opposed to religion, at least have been at various times hostile to the crown, and that the amount annually transported by the said nations to Great China and other heathen kingdoms exceeds four millions [of pesos].... And although the argument [of the Andalusians]—that the fabrics from China cause injury, at the expense of those which are transported from Cadiz—would have some weight if all the fabrics in which the Andalusians trade were manufactured in España, since they are not made there the above argument has very little value.” The Spaniards in Filipinas regret that so grievous burdens and restrictions are laid upon them through the influence of the Andalusians, and especially that the result of these must be very detrimental to the charitable funds which so greatly depend upon the Acapulco trade. Two-thirds of these, or 100,000 pesos, belong to theMisericordia alone, whose educational, religious, and charitable labors are so important to the public welfare and the maintenance of the Spanish colony in Filipinas; the remaining 50,000 pesos belong to other institutions. The archbishop therefore urges the king to accede to the requests of the Manila merchants.]84. [The dean and cabildo of the Manila cathedral also support the merchants; they fear lest the income of the church will suffer from the impaired condition to which the decree of 1720 threatens to bring the Filipinas colony. They adduce similar arguments to those contained in the preceding letters, all taking for granted that the prohibition of Chinese silks means the ruin of the Acapulco trade. Incidentally this letter states the following facts of interest: “The poverty of the soldiers is such that they always go about as mendicants and in need; for as they receive no more pay than that of two pesos and a fanega of rice—which is given every month to the soldiers, but to the convicts who serve [forzados] in the troops only the rations—if they could not find refuge in the aid given by the citizens, the alms from the charitable funds, and the broken food at the convent doors, and in what the more industrious can earn by doing errands, they would certainly perish.” The prebends of the cathedral find their salaries—which range from 500 to 200 pesos yearly, besides the dean’s 600—pitiably small and inadequate, and they must even resort to the charitable funds and to the gifts of friends to eke out their incomes. The same difficulties beset the parish ministers; but worst of all is the condition of the poor clerics who receive no pay, who have no income save occasionalofferings for masses and the alms of benevolent persons.]85. [The provincial of the Jesuits, Father Joseph Fernandez, seconds the appeal of the merchants.20He states that since 1709 the fortunes of the wealthy citizens are nearly all ruined—by calamities, unsuccessful sales at Acapulco, the failure of the galleons to make the voyage, poor crops in Filipinas, or the quarrels of the governors and auditors—and those who formerly made contributions to the religious orders now need and ask for help from them. “This city of Manila (and in it all the islands) is reduced to eight or ten private persons who are able with their own wealth alone to make up the 300,000 pesos which your Majesty allows for their commerce; and the number of its citizens who, as Spaniards, can call themselves such is very nearly 882—although it is true that there are millions of converted natives, and those who are not converted are innumerable. All these citizens depend for their preservation on the three or four piezas which are yearly allotted to [each of] them, according to their merits, in your Majesty’s galleon; and as most of them have not the means of their own to fill this space they have to give it up, or sell it to those who are richer; or they must ask for money from the charitable funds of the Misericordia, the tertiary Order [of St. Francis], or the religious, in order to fill their space on the ship. As they cannot ship therein anything except the coarse cloths and other goods which your Majesty names in your new regulations,the product of which is hardly enough to pay the expenses on them—duties, freight-charges, and carriers’ fees—the poorer citizens will see themselves forced to seek some other way [to make a living]. That means the desertion of these islands for India, and consequently a great diminution in the number of your Majesty’s vassals; and the islands will be exposed to the invasions of the Dutch and other enemies of your royal crown and of the natives. No few of these invasions have been experienced in recent years, and at this time we are being raided by the Mindanaos, the Joloans, and the Burneyans. And I can assure your Majesty that in the space of less than twelve years I have seen this stage21of the citizens of Manila changed five times. For, as it is composed of some who come from Europe (and they count for many), and of others who come from Nueva España, on account of the difference of the climate from that in which they were born they do not remain long; both classes, seeing the little comfort that they can find here, and how small incentive there is from riches (which is that which most influences those who do not possess enormous estates), either die in a short time, worn out with the misery of this country; or they leave the islands, to look for a more comfortable residence. Thus it comes to pass that only we religious and other ecclesiastics remain, with some persons who belong to the richer class (who are few), and these are Europeans, whom affection for their native land is always drawing away. If this [which I have mentioned above] happens (which may God not permit),all these millions of Christian natives will be left abandoned, and exposed to [the danger of] returning to their heathen condition; and of being possessed by the Dutch, or the Chinese, or any other nation that may find a profit in them.” The argument that the prohibition of the trade in Chinese silks will check the drain of silver from Nueva España is refuted by the provincial; he says, “For we who are near China, Batabia, the Coromandel Coast, and other ports of India, know with certainty that the ships and pataches that come to them from Europa to trade in them carry hardly any money for their traffic except the silver, with the stamp and seal of your Majesty, from Perù or from Mexico; and as those vessels have directed their route from Europa by way of Cape Verde, Buena Esperanza [i.e., Good Hope], Cape Comorin, and Sincapura, it must be supposed that they do not obtain the said silver anywhere else than from the commerce in Europa. Your Majesty could, in the course of several years, prevent the silver that comes from Mexico to these islands from passing over to China, to the Coast, or to Batabia, by commanding your governors and other officials at Manila to make strenuous effortsthat in the islands the natives, mestizos, creoles, and various other castes who live in them and are naturalized as subjects, be compelled to weave the cloth goods which are manufactured in other regions; and these people are no less skilful for the mechanical and even the liberal arts than are those of other nations. As for the fabrics of cotton, these people are able to weave them, for their own consumption, more durable and of better quality than the cloths which come from China and theCoast; and as for the silk goods, the hose which these natives weave are those which bring the highest price at Acapulco. The colors for dyeing the goods are furnished by the country itself; for there will be shipped from hereto the empire of China during this year more than thirty champan-loads of sibucao, or campeche, a wood from which the Chinese obtain carmine for their dyes; and the other colors they obtain from trees and roots which also are found in these mountains in abundance. As for the cinnamon, it grows very abundantly in the island of Mindanao, where your Majesty has the fort and garrison of Samboangan, with some missions that are administered by priests of my order, and by other religious from the discalced of St. Augustine. It would be of no little advantage to be able to cultivate the cinnamon, as the Dutch do; for the silver which that nation would be obliged to carry for that product would remain among the vassals of your Majesty, and thus there would be an end to that difficulty (which the merchants of Sevilla certainly exaggerate) of your Majesty forbidding the shipment of the goods which your royal decree specifies, which are those that have some value, in order to be able to pay the cost on the more bulky goods. Who will have courage to weave them, or hunt for them, when he knows that he must lose on them? In these islands abundance of gold is collected in various placers, in which work the slow and patient disposition of the natives is occupied; but as their minds are so careless and ignorant they content themselves with washing out only the exact amount of their tribute, which is five reals for each person. But if your Majesty would give your royal directions toyour governors and ministers, in the course of time it would be possible to secure the production of this gold in abundance; and if it were sent to Nueva España, and exchanged for the silver necessary for the maintenance of these your wretched vassals, the result would be that the latter product would always remain in the dominions of your Majesty. In these islands, also, some pearls are secured by diving, and in these seas some amber is gathered. In the mountains there is no lack of numerous civet-cats; and the civet, if measures were taken for its production, might be no small source of wealth to your vassals, and consequently furnish huge amounts to your loyal treasury.” Father Fernandez mentions that Felipe IV “spent in twenty years 170,000 ducados solely in sending religious to preach the gospel in Philipinas;” and that the monopoly on the buyo industry had produced in one year 11,000 pesos to the royal treasury, and that on wine 18,000 pesos; (but these amounts apparently refer to the price paid for a three years’ contract, rather than to the annual income of the crown from these sources).22]86. All the papers and reports which have been mentioned in this “Period vii” having been received in the Council, and the deputies from Philipinas, Don Francisco Diaz Romero and Don Antonio de Echandía—who deposited their credentials and letters in the office of the secretary—having presented themselves in it, they set forth their claims and stated, in a printed memorial (which they handed in on June 14, 1723) the injuries which the islands were receiving from the practice of the decree of October27, 1720. They entreated that its execution be suspended, and orders given that the commerce be continued with the yearly galleon in the same manner, so far as the lading was concerned, as was in use at the time when the aforesaid despatch was received there [at Manila]. The memorial, in eight leaves, is as follows:87. [This memorial by the city and merchants of Manila presents in detail the amount of their annual commerce in the various kinds of merchandise that are permitted in the decree. The gold exported from Filipinas to Nueva España amounts to less than 12,000 pesos, and is sent not as bullion or coin, but in the form of the slender chains [bejuquillos] wrought by the Malay natives for personal adornment; for in no other form could it compete with the abundance of gold mined in Mexico. The Chinese porcelain is shipped in small quantity, being mainly an article of luxury, like the gold ornaments; moreover, it is bulky and fragile. As for spices, Manila complains that the market for these in Nueva España is already appropriated by the merchants of España who send spices in the trading-fleets to Vera Cruz; in the fleet (of seventeen vessels) commanded by Don Fernando Chacón was carried the enormous amount of 170,737 libras of cinnamon, and more than 70,986 of pepper and cloves, besides various bags and chests of all these kinds of spice the weight of which was not noted. The only products of the islands which have commercial value in Nueva España are wax, lampotes, Ilocos blankets, and cordage; and the value of all that is exported of these, even counting with them the previously mentioned gold chains, does not gobeyond 30,000 pesos. The linen goods have hitherto been shipped from Manila to Acapulco only to fill in empty spaces in the allotments of lading, and have amounted to hardly 60,000 pesos, on which very little profit was obtained. If the main part of the galleon’s cargo has to be composed of these linens, the Acapulco market will be overstocked with them, and the prices there will be so low that Manila cannot afford to send another cargo of this sort. Moreover, as these goods are procured from the foreign factories at Batavia, Madrasta, Patàn, Punticheri, and Vengala, as soon as the traders at those posts understand that the Manila galleons must carry most of their lading in goods to be procured at those factories they will advance their prices enormously, and the galleon will be compelled to sail in ballast, and then only to procure the situado. The floss and raw silk which is the only form of that product permitted to Manila is so bulky a commodity, and the consumption of it in Nueva España is so small, that it too has been shipped only to fill up space; moreover, “for several years it has been increasing in cost, on account of the great amount of it which the Dutch, English, and French obtain from China for the fabrics which are manufactured in Europe.” The deputies, to substantiate their statements, refer to the official reports of the viceroys of Nueva España, and offer to bring forward evidence in their favor from various persons at Madrid who have resided in Filipinas. They claim that the Manila trade in silken fabrics has not harmed the merchants of España, since the silk which is produced in that country is hardly sufficient to supply the home demand, and it is necessary to bring to it foreign silks—exporting toNueva España some goods which have little demand in España; but even these do not occupy one hundred and twenty-five toneladas of space. The greater part of the silk goods woven in España are silks and velvets, and if the value of these has fallen, it is not the importation of Chinese goods which has caused this, but the change in the style of magistrates’ robes,23in which those goods are used, and the small amount of them that is used in the military service. “Just as in these kingdoms [of España] most of the persons of rank are clothed in no other fabrics than those which come from foreign countries on account of either their better quality or their luster—so the same thing occurs in Nueva España, where they follow in everything the customs of Europa; and for this reason most of the silken fabrics which are carried thither in the trading-fleets are from the kingdoms of Inglaterra and Francia, and the provinces of Holanda—as silver and gold tissues, brocades and laces of the same sort; hose, and other stuffs, the sale of which does not injure that of the Chinese silks, on account of the greater value placed upon the former. Therefore, as the silken fabrics which the aforesaid shippers carry [to Nueva España] are not all from the mills of España, but these Spanish silks are in very small quantity and of the sort which are rejected here, it is evident that the injury is not to the commerce of Andalucia, but to the foreign nations. For, since all the gold and silverwhich comes [to España] is carried in trading-fleets and galleons—except what is obtained for wines, brandies, oil, and other products—the slender profits which the traders of Philipinas gain from the sale of the Chinese fabrics will also be given up for their benefit by the foreigners on account of the abundance of the products from their own mills which they will ship to Cadiz, in order that these may be carried to the Indias.” The argument is repeated, that most of the profits in the Acapulco trade must go to European foreigners, if it is restricted to the few and unimportant products of the islands, and thus the enemies of España are strengthened; while if the Chinese trade is allowed those profits fall into the hands of people who cannot and will not injure the Spanish power. The enforcement of the decree will injure not only the citizens of Manila, but the revenues of the crown, which amount annually to an average of 228,557 pesos, besides the duties produced by the Acapulco trade, which amount to 250,000 pesos more. The treasury will have no means to buy the rice of the Indians, their only valuable product; the Sangleys will have no occasion to trade at Manila, which will lose the amount of their licenses (more than 23,000 pesos), besides the import duties and alcabalas which they pay there, which amount to more than 37,000 pesos; and the situado sent to both the Philippines and Marianas must be taken from the Mexican treasury directly, which will be too heavy a burden for it. The king is reminded of the poverty of the Philippines in all natural resources save rice, and their dependence on the Acapulco traffic for money, clothing, and all other needs save that of food. The recent building of twosmall galleons has caused the treasury a great amount of expense, quite disproportionate to that of the one large vessel which hitherto had been used for the Acapulco trade—to say nothing of the extra expense caused by the duplication of crews, officers, and soldiers which is thus rendered necessary. The smaller ships are less able to resist either storms or pirates, and the few experienced seamen in the islands must be divided between them, when they should be massed in one vessel. Again is mentioned the dependence of the missions, and the conversion of the heathen, upon the Acapulco trade; the Indian villages that are more or less christianized now number 457, with 111,683 families, who are in danger of relapsing into heathenism, or being converted to Mahometanism, if the missions cannot be kept up.]88. The Council, on June 14, 1723, agreed that this memorial should go to the fiscal with all those that came before, with the letters of the Audiencia, officials, and prelates which had been laid before the Council on the twelfth of the same month.89. The consulate of Cadiz, by a memorial presented in the Council on the twenty-first of the same month and year-being informed of the petition from Manila requesting that changes be made in the decree issued on October 27, 1720—asked the Council to order that the argument recently brought forward by Manila in regard to this be communicated to them; this having been referred to the fiscal, he was of opinion that the aforesaid document should be communicated to the consulate, as had been done in the year 1720 by order of his Majesty; and the Council agreed to this by a decree of July 12, 1723.90–92. [On September 4 following, a conferencewas held by the representatives of the commerce of Sevilla, to consider the question of the Philippine commerce in Chinese silks and the royal decree forbidding that trade; a copy of the memorial sent from Manila, and other documents bearing thereon, were submitted to that body by the consulate of Cadiz, who had already taken action thereon, and now asked for the support and coöperation of the Sevilla merchants. In a formal resolution by the latter, they express their entire concurrence with the views of Cadiz, and request the king to enforce the decree of 1720. They make light of the statement regarding the great amount of spices carried to Nueva España by Chacón’s fleet, and intimate the probability that the remonstrance by Manila is really instigated by the traders of Nueva España, who, on account of the enormous profits which they make by sending money to the Philippines for investment, must be most affected by the proposed restrictions on the Manila commerce. Sevilla answers the argument of Manila that only one hundred and twenty-live toneladas of Spanish silks are sent to Nueva España, by declaring that even that small amount will soon be reduced to nothing unless the king strictly prohibit the introduction by the Filipinas ships into Nueva España of fabrics woven of silk and gold or silver; also that the silk-mills of España will be ruined and abandoned, and consequently the cities of that country will be inundated with poor people and criminals. On the day before this conference, a similar one was held by the consulate of Cadiz and representatives from the merchants of that city, who made a vigorous remonstrance against the injuries caused to Spanish commerce and industry by the Manila-Acapulcotrade, and especially by the frauds and the infractions of law therein, on which they expatiated in the above conference. In the report drawn up by them they mention several of these. For instance, the merchants of the City of Mexico sent large sums of money to Acapulco for preparing the Manila galleon for its voyage; “and in the three months during which the ship was detained at that port it unloaded an enormous cargo, held its fair, and returned laden with silver, without wintering in that kingdom, on account of the easy and prompt disposal of all that it carried. This cargo was usually 10,000 or 12,000 bales, half of silken fabrics and half of linen goods, [lencería], the proceeds from which reached four millions of pesos; and all this in pesos, eight-real and four-real pieces, since in exchange for the said goods they did not desire or carry any produce, nor even doubloons, nor bars of silver, for all must be new pesos and of Mexican coinage, these being the coins which are current in Turquìa, to which country they were going, since the greater part of the said goods come thence.” Reliable witnesses have told of mule-trains entering Mexico laden with Chinese stuffs, which must amount to almost the value of the goods carried by the eighteen vessels in the trading-fleet which that year came from Spain under Don Manuel de Velasco; and the market of the latter was ruined by the former. “Although the silk fabrics which the ships bring from Philipinas have not the quality or durability of those from España, and the linen goods are all of cotton, and do not last half as long as do those from France, yet as the former are sold cheap, and have a good surface, and are showy, while they last the commerce of España ischecked and suspended.” The merchants of Mexico send so much money to Acapulco that not enough is left to send the trading-fleets back to Spain, which are compelled to winter at Vera Cruz in order to obtain the proceeds of their cargoes and equip the vessels for the return voyage. “So sweeping and irreparable is the great injury which these goods from China, or from the Turks (which is the more certain), cause to the most important cities of España that when the said ship was not allowed to carry those goods Sevilla had more than 12,000 looms for the manufacture of silks of every kind; and with these, even without other stuffs, so great a number of people were employed on them, and so great was the opulence of that city and of all its domain, as is made evident by the great services which on all occasions Sevilla rendered to his Majesty, with sumptuous buildings—churches, hospitals, government buildings, and private houses. But without greater casualty than that of the importations in the ships from China, that city found itself in a straitened and miserable condition, not two hundred looms being left in it, on account of there being no consumption for its fabrics; and the great mass of poor people, who then supported themselves by their labor, are now miserably perishing. No less proof is afforded by what is occurring in Granada; for there more than 12,000 looms were employed only on taffetas (both double and plain), satins, plushes, and all kinds of silk-weaving; and more than 50,000 persons, men and women, were engaged in the industry and labor of making silk goods. For this reason, the amount of silk worked up each year was more than 180,000 libras, from which proceeded considerableprofits to the royal exchequer, for the duty on each libra amounted to thirteen reals and three cuartillos; but, with the one but sufficient reason of the importations of Chinese goods, [that industry] has so fallen away that the amount of silk sold in that city at each gathering of silk does not reach 40,000 libras, and the number of looms operated, on coarse stuffs, is less than 2,000—a similar condition to those of Sevilla.... The same troubles are suffered by Cordova, Jaen, Ezija, Priego, and Alcalà la Real, with many other places which in both the Andalucias were growing and being maintained by the said manufactures. It is not less worthy of attention that the silk-growers of the aforesaid kingdoms of Sevilla, Granada, Cordova, and Murcia are, for lack of sale for the silk that they produce, giving up the cultivation of the mulberry-trees, and abandoning their farms and the places where they dwell.” Cadiz cites the action of Conde de Monclova, viceroy of Peru, who prohibited the shipment of Chinese goods from Acapulco to South America, making them contraband and confiscable, recognizing “their poor quality and lack of durability, and the great detriment which this trade caused to the merchants [of Peru], who go down to Portovelo to hold the fair [at the arrival] of the galleons, which has been the greatest in the world;” and urges the king to enforce strictly the decree of 1720. Such action would greatly benefit the realms of Spain, and would not cause injury to the Philippines, because none of the said Chinese stuffs are made in the islands; “and the only ones who could grieve over it are the Turk, and other princes of Assia, Mahometans, and enemies of our holy Catholic faith.” Asfor the complaint of Manila that the propagation of that faith depends on the silk trade, Cadiz refuses to believe this, and refers the king to a document in Manila which refutes that notion. This is “a memorial or report made by a minister of that Audiencia, N. Calderòn, in which is inserted another, written by Father Fray Victorio Ricci,24of the Order of Preachers, who was for many years a missionary in the empire of China, and afterward in the Philipinas Islands; it was sent by the Supreme Inquisition to its commissary in the islands, in order that he might send to his Majesty information on the points therein.... In these papers it will be clearly evident that the progress and propagation of the faith is not diminished by depriving the islands or the kingdoms adjacent to them of the commerce prohibited to them, or by the restriction which his Majesty has laid on it;” the above prohibition, therefore, is not the cause of the ruin of the citizens of Filipinas.]93–94. [These replies by the merchants of Andalusia call forth another memorial from the Manila deputies, which occupies fourteen printed sheets. They repeat their former arguments, enforcing them by reference to the despatches from the Audiencia of Manila, the archbishop, and the various religious bodies there, and still more to the letters previously addressed to the king by the viceroys of Nueva España; and they adduce various instances from the history of the Manila-Acapulco trade to the same effect. They also undertake to refute the chargesmade by the merchants of Sevilla and Cadiz, and claim that the latter have misrepresented certain facts. We note here some points made by the Manila envoys, as giving new information on the matter at issue. They say that the maintenance of Filipinas, including the missions and military posts, costs the Spanish crown annually 515,568 pesos, for which sum the royal treasury of Mexico should be responsible, according to the laws of the Indias; but it sends thither only 40,000 pesos in money and some 60,000 in goods, and even this remittance comes from the duties which the Manila galleon pays at Acapulco. But in 1637 and for some years later, the situado sent to the islands amounted to more than 325,000 pesos in money, and enough goods to make up the 500,000 pesos. This, however, was largely the result of the failure of the Manila merchants to ship goods to Mexico, a proceeding caused by the undue harshness and severity of the royal visitor Pedro de Quiroga;25but it led to the abolition (by royal decree of September 3, 1639) of the restriction on the kinds of goods permitted to Manila, only limiting the amount of their investments. It is strange that Manila has pursued this commerce for one hundred and forty years without any protest from Andalusia until now; the decadence of the latter is due rather to lack of economy in the use of their wealth than to the competition of Filipinas; and Andalusia has always encountered trouble, since the persons interested in the greater part of the lading of the galleons and fleets have been and are foreigners—French, English, and Dutch. Andalusia claims that thegalleon unlades at Acapulco more than 12,000 piezas, half of them containing silk goods; but the certificates of the royal officials show that in the ten years from 1710 to 1720 the total number of piezas (in ten galleons) was 36,895, including therein the 4,299 half-chests in which the silk goods were shipped—making the average lading of each galleon only 3,660 piezas. The detention of Velasco’s fleet was not due to the arrival of the Manila galleon, but to other causes. The fleet of 1698, in charge of General Mascarùa, was sent lightly laden, and in 1699 Velasco’s fleet followed it, but encountered the other at Vera Cruz; the presence of the two large fleets at one time, and the ravages of yellow fever [bomito negro,i.e., “black vomit”] at that port, rendered it impossible to sell the goods to advantage, to transport them to Mexico, or to equip the vessels for the return voyage. When Velasco could set out for Spain, he received news of the death of Carlos II, and the danger of war between Spain and other powers, which made the merchants unwilling to risk their property on the seas at that time. Finally the Spanish fleet was escorted to Spain by a French squadron of warships, but on reaching Vigo was attacked by an English and Dutch fleet, which inflicted considerable loss on the Spaniards. Moreover, the trading-fleets sent from Spain to Nueva España are nearly twice as large in the last few years as they used to be, which overstocks the colonial markets with goods. Manila claims that the decadence of the silk industry in Andalusia is due to the pest which ravaged that province (with especial mortality in Sevilla) in the middle of the past century; and that part of the remaining population had emigrated toMurcia and Valencia, where they had cultivated mulberry-trees and built up the manufacture of silk goods. Another reason assigned by some writers for the decrease of prosperity in Andalusia was the imposition, at that time, of heavy war-taxes. As early as 1666, the city and the merchants of Sevilla had represented to the crown “their lamentable condition, and the ruin of their looms, caused by the imposition of the millones26and the concourse of foreigners to Cadiz to introduce their own merchandise.” This led to a resolution by the royal Council that the decree of January 25, 1661, should be enforced, which provided thatthe custom-house and collection of duties for the Indias should be withdrawn from Cadiz, and that the galleons and fleets should take on their lading in the river of Sevilla and the port of San Lucar. As for the stuffs from foreign countries which, it is alleged, are brought to España and crowd out the manufactures of that country, these are only the fabrics which the more industrious French, English, and Dutch make with the raw material, both wool and silk, which España exports. In 1696 Sevilla complained to the king of the injury which it was experiencing from the importation of foreign goods, but did not mention the Chinese stuffs among these. “In Madrid and Valencia the manufacturers are at present complainingthat the price of silk has risen very high, not because the crop [that is raised in España] is not an abundant one, so much as on account of the so great export, not only from that kingdom but from otherregions, to foreign countries, that which the French alone have bought this year amounting to more than 300,000 doubloons; and if asked about this, any dealer in these goods or any official will answer with entire candor, without blaming the commerce of Manila.” The foreigners bring back these silk goods to España, in order to supply with them not only that country but the Indias, through the fleets and galleons; “and this is what the consulate [of Cadiz] is defending, in order that these goods may, by not introducing into Mexico those from China, be sold [there] with a higher reputation.” The highest authorities all concur in the statement that the Spanish silks sent to Nueva España do not amount to one hundred and twenty-five toneladas. The statement that the Manila galleon carries from that country 4,000,000 pesos is unwarranted; the only possible ground for it is that in 1717 the viceroy allowed the galleon to carry to Manila 2,000,000 pesos, because for three years past no money had been sent to the islands—on account of poor sales at Acapulco, a galleon forced back to the islands by storms, etc.—on condition that the king’s ten per cent be paid on that amount. In other years the amount of money illegally shipped has been very small. Cadiz has alleged that money has been scarce there for some years; but Manila declares thatfrom December, 1720 to July, 1723 over 40,000,000 pesos worth of gold and silver, in coin and bullion, has been landed at Cadiz, without including the value of the other products of the Indias. Cadiz asserts that the money obtained from Nueva España goes to the Turks, the enemies of the Catholic faith; but the Spanish merchants are continually furnishing moneyto other enemies of the faith, the English and Dutch. Moreover, the commodities which the Manila galleon carries are not obtained from the Turks, but (through the European factories) from Indostan, Tunquin, Lao, China, Japon, and the Philippine Islands; while Manila is not even permitted to trade with Arabia and Persia, whose products are carried to the ports of the Levant, and at those fairs the traders from all the European nations buy those goods, with money which has come from the Indias. Manila declares that the trading-fleets carry to Vera Cruz no Spanish products save wines, brandies, oil, raisins, and almonds, and the previously-mentioned small amount of silk goods; all else in their cargoes is of foreign make. The spices which the decree of 1720 allows to the islands will not suffice to pay the expenses of the voyage, especially when Manila must compete with the trading-fleets from Spain in the shipment of these products. The collection of royal duties on goods is regulated by “cubic palmos in accordance with the measurement of the bales [frangotes] and piezas which are shipped.” As for the memorial by Calderòn, Manila asserts that it does not bear on the present question; that auditor, in the time of Governor Curuzalaegui (in which occurred an uprising of the Sangleys), sent a letter to the king remonstrating against the liberty given to the Chinese, and advising that they be not allowed to have intercourse with the Indian natives, or even to live in the Parián. This tolerance had been extended to them for the sake of attracting them to the Christian faith, but Calderòn regarded it as no longer necessary, since they had, even then, a number of Christian missionaries in their own country. In hisletter, he cited Father Ricci in support of some of his statements. While the Spanish silks sent to Nueva España amount to only one hundred and twenty-five toneladas, those of foreign make sent thither from Spanish ports are more than a thousand toneladas. The French, English, and Dutch trade at Canton, where the main part of their commerce is in raw silk.]95–96. [The above memorial was referred by the Council to the fiscal, on October 6, 1723; and on December 22 following, a printed answer to both of those by Manila was placed before the Council by the consulate and merchants of Cadiz. They remind the king that when Filipinas was first discovered the ships brought back to España abundance of gold, pearl, amber, civet, wax, and fabrics of Ilocos; and for some time afterward these and many other valuable products were exported from Manila, which became the emporium of both Eastern and Western India. In those early times, when so much zeal and energy for the conversion of the heathen was displayed, it was not necessary to the missions to depend upon the trade in Chinese silks; but, for the sake of benefiting the natives of the islands, and to check the drain of silver to foreign nations, the Spanish government (by decrees of 1589 and 1596) authorized the barter and exchange of the products of Filipinas for those of China, under the system calledpancada. But Manila has distorted this into the assumption that the Chinese trade was intended for the maintenance of the Spanish colony in Filipinas, and that it was to be without restriction, save in its amount—although, as a fact, the trade in silk fabrics of China was not introduced until many yearslater. The system of distributing the commerce among the citizens of Manila replaced the earlier pancada, and led to such abuses that Felipe III attempted to check them by a severe decree (1620); and later enactments placed the Acapulco commerce on such footing that it flourished greatly, to the mutual advantage of Filipinas and Nueva España, and to the enrichment of Manila and its citizens. That commerce benefited the poor citizen as well as the rich; but the trade in silks is only for the benefit of the wealthy merchant and the rich consumer, as they are articles of luxury. The earlier commerce of Manila also supported and stimulated the consumption of Spanish silks in Nueva España and Peru, and the silk industry flourished in the mother-country; but the later introduction of Chinese silks into the American colonies, and the frauds and excess connected with this trade, have ruined the silk industry on both sides of the Atlantic, and even impaired the prosperity of Manila. Cadiz claims that the merchants of Mexico have committed many frauds, and transgressed the ordinances, and prevented the execution of these, in regard to the Manila trade, and do so with the collusion and aid of the officials: for instance, the galleon “Nuestra Señora del Rosario” arrived at Acapulco on January 11, 1699, and the Manila citizens attempted to compound the duties on the cargo for 100,000 pesos; but the royal fiscal opposed this, showing that the ship had brought 6,754 piezas of lading, without counting a considerable quantity of pepper and other goods outside of the registration. It was also found that although the law restricted the entire cargo to the value of 250,000 pesos, and its ownership to the citizens of Manila,this vessel contained goods to the amount of 233,966 pesos which belonged to the citizens of Puebla alone, and it was estimated that it must contain at least a million pesos’ worth of goods belonging to merchants in the City of Mexico. The Mexican government compelled the payment on these goods of duties amounting to 50,000 pesos more, and would have investigated the whole matter, to ascertain the exact amount of the illegal shipments; but the commercial interests of Mexico exerted such influence against this that the Audiencia desisted from the undertaking. Again Cadiz accuses the importation of Chinese silks into Nueva España of having ruined the silk industry in España; although those goods are so thin and poor that they are worn out even before the Manila galleon leaves Acapulco, they are so cheap and showy that they undersell the better goods from España even competing with the latter in Vera Cruz, where the Chinese goods are purchased by the traders of Habana, Puerto Rico, Cartagena, and other Spanish colonies; and all this is overlooked by the Spanish officials in high places, because they profit by this illegal traffic. If the king will prohibit the importation of silk woven with silver and gold, and “check the hand which Mexico moves at the command of Manila,” the silk industry will be revived in España, its people will be kept from idleness and poverty, and foreign countries will no longer drain its resources. Cadiz desires Manila to content itself with the spice-trade, which is a staple and profitable line of commerce, and which Manila can carry on more cheaply and promptly than Spanish merchants can; the spices sent from España onChacón’sfleet were needed to supply the scarcity ofthem at that time, as the Manila trade had been interrupted temporarily; but if the latter be regular, such shipment from España could not occur again. From the year 1690, the indult ran from 50,000 to 74,000 pesos, on the basis of the 250,000 pesos allowed to the Manila trade; but it is evident that the duties ought now to amount to above 500,000 pesos, on the enormous quantities of Chinese silks that the galleon of 1,000 toneladas carries.]97–105. [This memorial, with like protests from the cities of Toledo, Ezija, and Murcia, was sent to the fiscal, who on March 16, 1724, handed in his opinion on the question at issue—that is, whether the decree of 1720 should be changed or enforced. He lays down three propositions: First, that the trade in Chinese stuffs should not be prohibited to the citizens of Filipinas, since it is necessary to their maintenance, those islands having no profitable mines or commercial products; moreover, the introduction and propagation of the Catholic faith therein is an obligation of justice as well as of religious zeal, and was so recognized by Felipe II, when he refused to abandon Filipinas; and to fulfil this obligation the Spanish colony there should be sustained. For this purpose the trade with Nueva España had been granted to Manila, to such extent as should be necessary for its preservation, that is, to the amount of 250,000 pesos, and 500,000 in returns; and in the permission given to Manila to trade with China there had been, and should be, no restriction as to the woven silks of that country. Second, this trade ought, nevertheless, to be strictly confined to the amount of their permission, and all frauds to be prevented; for the complaints of Spanish producersand merchants had been caused by the frauds and abuses in the Manila trade, rather than by the mere fact of its including Chinese goods; the fiscal even suggests that they have an official representative at Acapulco to aid in the unlading and inspection of the Manila galleon, and report thereon to the viceroy, which would aid in preventing frauds and enable the Spanish merchants to discuss the question more intelligently. Third, that in case the trade in Chinese silks be prohibited to Manila, that in spices should be absolutely prohibited to the Spanish merchants and given exclusively to those of Filipinas; while the American trade in silks should be free to the Spaniards.]106–111. [The Council considered this question on April 6, and decided that the decree of 1720 should be changed; they recommended that the Filipinas trade be continued as before the decree, and employing but one large galleon; that the decree of 1702 should be enforced, save that the goods should be valued not by actual inspection of the bales but by invoices presented by the shippers, with their sworn statements that the goods were their own; nor should any indult, payment of double duties, or other form of composition be tolerated; and that the royal officials at Manila, Cavite, Acapulco, and Mexico should be held responsible for the fulfilment of these regulations, under severe penalties. This proceeding was approved by the king, who issued despatches in accordance therewith (June 17, 1724) to the viceroy of Nueva España and other officials concerned therein; and on August 8 the merchants of Cadiz were invited to nominate a deputy to watch the Acapulco commerce.]

PERIOD VIIOf what was done in Manila on receiving the decree of October 27, 1720. Recourse to the Council by their deputies. Reply from the commerce of Andalucia, and what was decided in regard to this matter in the year 1724.71. On August 2, 1722, the governor, Marqués de Torre-Campo, received at Manila the ordinance despatched on October 27, 1720, of which the preceding “Period” speaks. Having caused this decree to be published by a proclamation in that city, record of it was made in the offices, and it was communicated to the municipal council in open session. The cabildo protested against it, promising to obey, but resolving to set forth to the governor in the first place, and afterward to his Majesty, the damages and troubles which would result from its execution to religion, to the royal treasury, and to the greater welfare of those islands, from their not continuing to enjoy the permission to trade in fabrics of silk, which they had possessed for more than one hundred and forty years. They would therefore be obliged to entreat that his Majesty give them permission to retire, with their families, to the lands and domains of his Majesty which they should consider most suitable.72. In a long memorial presented to the governor was set forth in detail the motives on which they based this action; and when orders had been given that the fiscal of that Audiencia should examine it, although he recognized that their statements were correct, and that the islands could not maintain themselves on the system of commerce which had been laid down, he demanded that orders should be givento fulfil the cited royal decree, and that the city and merchants should appeal to his Majesty who, there was reason to expect, would take care of his vassals there, and of the interests, both spiritual and temporal, which were concerned in it—and the governor gave orders to that effect. Although the city and the merchants by a second memorial insisted upon a suspension of the above regulation, demanding that, in case there was no room for it and for continuing their trade in silks and stuffs as heretofore, at least he should declare that they were not obliged to invest their funds in the commodities which were prescribed to them, as it would occasion their total ruin (and they demonstrated this): nevertheless, the governor, bearing in mind that the damages to his Majesty would be no less, if the galleon for that year should go empty, commanded that, in accordance with the amount permitted by the cited regulation, they should make the distribution of the [permits to ship] merchandise as his Majesty had commanded. The city and the merchants, with the hope that his Majesty would give attention to the urgent representations that would be made by the commissaries whom it had been agreed to despatch to the court, agreed to continue the commerce meanwhile conformably to the despatch of 1720—sacrificing out of respect to his Majesty, and in order to maintain the religion established in those islands, their own wealth, which necessarily must be ruined and lost in a commerce so useless and unfortunate as that to which they were reduced; since the bulky commodities, on account of their abundance and poor manufacture, would not allow them to gain ten per cent, since the risks extended to fifty per cent.73. The city of Manila, in order to render commendable and frame in more formal manner its appeal from the aforesaid decree of October 27, 1720, which it must bring before the royal person—not only for the continuation of the traffic in the silken fabrics, but also for the increase of its permission from the three hundred thousand pesos which it was enjoying to five hundred thousand—came before the Audiencia and presented before it the arguments and reasons in favor of both these requests. After explaining the losses that would arise from the desolation and depopulation to which the islands would come (which the Audiencia took into consideration in its memorial, as will be noted) the city added that when in Manila there were only 230 citizens (which was in the years 1636–37) returns of 500,000 pesos were permitted to them; but since in the year 1722 the city had 882 citizens, and there was an increase in the charitable foundations, which placed 150,000 pesos at risk on each galleon, the necessity was evident of increasing the permission to 500,000 pesos—350,000 pesos for the citizens, and 150,000 for the charitable foundations. This increase in the number of citizens made necessary the expansion of the permission, from the very fact that in the year 1702, in which there were only 400 citizens, his Majesty had permitted 300,000 pesos of investments, and 600,000 pesos in returns.74. It was also expedient that permission be given to the seamen to transport in their own chests goods up to the amount of 40,000 pesos of investment, on account of the importance of interesting them in the defense,15and in order to facilitate that in provincesso remote there should be Spaniards who would serve as artillerists and seamen, since their wages alone, in voyages so arduous and long, could not be sufficient incentive. In order that that commerce might be regulated and infractions regarding the lading be avoided, an arrangement was proposed to his Majesty in which the annual investment was reduced to 3,200 piezas of the regular sizes—half-bundles, bags, sacks, [churlos,balsas(forbolsas)] cakes of wax, and other like packages of bulky commodities, and three hundred half-chests of goods from China, in order to supplement the said 3,20016piezas. Consequently, at the despatch of the galleon there would be nothing else to do except to distribute the said piezas and issue the permits for its lading—collecting 10,000 pesos for the royal duties, at the rate of two per cent, for this purpose rating the 3,200 piezas at 128 pesos and 1 tomin, and the half-chests at 300 pesos and pay at Acapulco thirteen per cent, regulating the 3,200 piezas at 256 pesos and 2 tomìns, and the 300 half-chests at 600 pesos each. This would result in the royal duties at both ports amounting to 140,000 pesos, and in return would be brought back, for the account of the permission, a million pesos; and thus would be avoided sworn declarations, and other dubious measures to which the previous regulations were subjected.75. The Audiencia of Manila in a letter of November 9, 1722, taking into consideration another which they had written on August 6, 1713, in whichthey set forth the losses which that commerce had suffered—in [the wreck of] their galleons, the unsuccessful fairs of Acapulco, and the excessive pecuniary extortions that they had suffered in Acapulco on account of the royal duties and in other ways—to the end that new measures might be taken by his Majesty for the rigorous reëstablishment of the commerce of those islands, describe (influenced by the urgent representations made by the city and by previous information obtained by each auditor) the affliction which has been caused by the new decree of October 27, 1720. They declared that they judged necessary for the maintenance of these islands and the propagation of the holy gospel, not only the permission for the silk and the stuffs prohibited by the cited despatch, but also the increase of the permission from 300,000 to 500,000 pesos. The Audiencia affirmed that the Spaniards could not exist without this commerce, because the culture of the fields was in the hands of the natives and the management of the guilds [gremios] in those of the Sangleys and their mestizos; that the salaries and pay with which the military officers, soldiers, and civil officials were recompensed did not reach half the annual expense of their families, in consideration of which it was commanded to include then the distribution of the lading of the galleons; and that, while the permitted amount was 300,000 pesos, and the number of citizens so great, the investment of each one, even if all were alike in wealth and services, did not amount to 400 pesos, the profit on which was not enough for the proper support of a man who was not actually poor, and on this account they could not increase their wealth. When the Europeans see that it is useless to transport goodsto those regions where there is not, outside of commerce, any motive which would induce them to remain, or which would bring other new traders, those who consider the matter have reason to fear that in a few years the capitals of those who live there will be consumed, and that others will refuse to enter into the same experience; then Philipinas will be left to the Indians and Sangleys, the gospel ministers without the guards of Spaniards for their protection, the military posts without garrisons, the natives without any control, and everything on the blink of a deplorable ruin.76. That with the commodities which were allowed by the said royal decree, the lading of the annual galleon could not reach the gross amount of the 300,000 pesos of the commission. From this it resulted that that amount was diminished and the traders exposed to evident loss in Nueva España, on account of the abundance of those very articles of merchandise; and that would result in cutting off the proceeds of the many and large charitable funds, founded on the merchandise risked in those galleons, for the support of clergymen, hospitals, convents, divine worship, dowries to orphan girls, and many other alms—which, even though they were no more than those which were administered by the brotherhood of La Misericordia, and by the tertiary Order of St. Francis, were of the greatest importance, and their failure a most notable affliction to all the islands.77. That by the exclusion of the stuffs and silks, which were the principal articles of commerce of the islands with China, all that commerce [i.e., with Nueva España] would come to an end, since all the rest was of so little value that it could not, withoutthe substantial aid of the silks, allow any profit. From this would result another great difficulty in the propagation of the holy gospel, that if the Chinese do not come to the trade they will lose the opportunity for conversion which so many have attained, attracted by familiar intercourse with the Spaniards, with the occasion of this commerce, and there would be great difficulty in introducing the gospel ministers into those dominions; and these are motives which have always engaged the chief attention of his Majesty, to judge by the laws. The Audiencia concluded by expressing the opinion thatthe prohibition of the silks should be removed, and an increase be granted in the permission to 500,000 pesos, with the number of piezas which the city was proposing—this regulation being made in proportion to the number of citizens, in order that the islands might maintain themselves, and thus obviate the serious inconveniences that were experienced; and, as for the duties which the city proposed, this question was referred to the decision of the Council.78. The fiscal of that Audiencia, Don Pedro Bedoya,17in a letter of November 15, in the same year, 1722, in consequence of the duplicate copy which he received of the royal decree of October 27, 1720, states on his part—after repeating his previous opinion regarding its execution, as given to the city of Manila, the action taken by the governor, the recourse by the city to the Audiencia, and the report made by that body—what his opinion is, in fulfilment of his obligation, in regard to the memorial of the city and the merchants; it is brought under four heads, which are:IThe necessary dependence which the maintenance of these islands has on the commerce, in order that the Spaniards may maintain themselves in them; and the benefit from the charitable funds, in which are annually expended 75,000 pesos—which sum proceeds from the trading of the 150,000 pesos which are carried in the annual galleon on account of the said charitable funds.IIThat if the prohibition of the stuffs and other commodities from China remains, their former control of the trade therein will be disturbed, and the royal decrees issued for this purpose (some of which are compiled18) will be subverted—such as those which command that the commodities which they convey shall be bought from the Sangleys; and that if this [Chinese] commerce is prohibited that of Nueva España becomes unprofitable, as the bulky commodities do not fill up the amount of the permitted trade, and it will not be possible to pay the cost of traffic in them without those from China.IIIThat for the maintenance of these islands, the support of the Spaniards, and the success of the charitable funds, it is necessary that the amount permitted be increased to 500,000 pesos and a million of returns, with the inclusion of the fabrics from China.IVThe regulation of the lading, in order to avoid infractions of the law [is necessary]; as also that the dubious and burdensome obligation of making sworn declarations be laid aside, and that the quality and number of the commodities which are transported must appear in the registers.79. [These points made by the fiscal are discussed at length by him in a report addressed to the king, dated November 15, 1722. Among other things, he states that the merchants prefer one galleon of 800 or 900 tons burden to two of 500 tons each, as being less expensive (on account of requiring fewer officers and men), safer (as carrying larger cannon) and less exposed to danger from either enemies or storms, than the two smaller vessels; that the industry and love of gain displayed by the Chinese who reside in the islands have secured to them the control of all the crafts and useful arts, and of the commerce of the islands save that with Nueva España, which is therefore the only resource of the Spanish citizens; that the current rate of income19is but five per cent in the islands, while thatcommerce brings in fifty per cent; that most of the rural estates [haciendas] are possessed by the religious orders; that houses constitute property of little value, on account of the frequent fires and earthquakes; and that consequently the charitable foundations [obras pias] have been necessarily based on the Acapulco trade. It is also declared that the annual situado from Mexico amounts to no more than 50,000 or 60,000 pesos, while the annual budget of the government expenses amounts to 500,000 pesos, which the royal treasury of the islands must pay from the proceeds of the duties on merchandise. The request of the Manila citizens for a permission to send 500,000 pesos’ worth, in 3,500 piezas, is very moderate; as the trade has been conducted, the 300,000 pesos’ worth has made 4,798 piezas, for the last five years—which is evidence of the infractions of law which have been committed in that commerce. Moreover, the proposition of the city that the duties belonging to the crown be levied on the number of the piezas, will be likely to prevent many of the frauds which are now practiced in this direction. The fiscal opposes the request of the city that the seamen be allowed an increase of the small amount already allowed them, free from duties, for investment on their own account, declaring that it will but increase the illegal trade already prevalent, and that the proposition to allow them 40,000 pesos’worth of trade (with twice that amount in returns for the merchandise) would allow the seamen a greater investment than even the citizens, since the former average only 115 men to each galleon. He advises that the officers of the ships be permitted to have a share in the lading of the ship, in place of their present wages; and that one large galleon be occupied in the trade to Acapulco, rather than two small ones. He reminds the king of the opening afforded by the trade between Manila and China for the conversion of the Chinese and the entrance of the gospel into that heathen empire.]80. [The treasury officials at Manila also write, seconding the proposal to despatch one large galleon; and they add that the royal exchequer of the islands will be ruined if the decree of 1720 is enforced, “for the commerce would cease, and consequently the royal duties which it was producing.”]81. The archbishop of Manila, the dean and cabildo of that church, and the provincial of the Society [of Jesus], in their letters of November 6, 7, and 8 of the same year, support the entreaty of the city; they deprecate the ruin (both spiritual and temporal) of the islands, and express the same opinion as that of the Audiencia and the fiscal, as will be seen by their letters, which follow below.82. The provincials of St. Dominic, St. Francis, and St. Augustine (both calced and discalced), in their memorials of the same year expatiate on the necessity and advantage of changing the aforesaid decree of 1720, and granting likewise to the islands the increase of the permitted trade which they solicit; and they reproduce in detail what the other prelates and ministers say.83. [The letter of the archbishop (Fray Franciscode la Cuesta) states that he has been urged to write it by the city and merchants of Manila, and the bureau of the Misericordia; and he begins, very naturally, by arguing that the religious interests of the Philippines and of China depend upon the maintenance of the commerce of the islands. He refers to the opposition made to it by the merchants of Andalusia, which he thinks has no good foundation, since their trade with the other European nations drains from España more money than does that of Filipinas from Nueva España—this last being their ground of complaint against the Manila trade; but even if the Sangleys and other heathen carry away silver from Manila, “they have not harmed the [Spanish] crown, and are friendly to the [Christian] religion; while it is certain that the European nations, even if they are not all opposed to religion, at least have been at various times hostile to the crown, and that the amount annually transported by the said nations to Great China and other heathen kingdoms exceeds four millions [of pesos].... And although the argument [of the Andalusians]—that the fabrics from China cause injury, at the expense of those which are transported from Cadiz—would have some weight if all the fabrics in which the Andalusians trade were manufactured in España, since they are not made there the above argument has very little value.” The Spaniards in Filipinas regret that so grievous burdens and restrictions are laid upon them through the influence of the Andalusians, and especially that the result of these must be very detrimental to the charitable funds which so greatly depend upon the Acapulco trade. Two-thirds of these, or 100,000 pesos, belong to theMisericordia alone, whose educational, religious, and charitable labors are so important to the public welfare and the maintenance of the Spanish colony in Filipinas; the remaining 50,000 pesos belong to other institutions. The archbishop therefore urges the king to accede to the requests of the Manila merchants.]84. [The dean and cabildo of the Manila cathedral also support the merchants; they fear lest the income of the church will suffer from the impaired condition to which the decree of 1720 threatens to bring the Filipinas colony. They adduce similar arguments to those contained in the preceding letters, all taking for granted that the prohibition of Chinese silks means the ruin of the Acapulco trade. Incidentally this letter states the following facts of interest: “The poverty of the soldiers is such that they always go about as mendicants and in need; for as they receive no more pay than that of two pesos and a fanega of rice—which is given every month to the soldiers, but to the convicts who serve [forzados] in the troops only the rations—if they could not find refuge in the aid given by the citizens, the alms from the charitable funds, and the broken food at the convent doors, and in what the more industrious can earn by doing errands, they would certainly perish.” The prebends of the cathedral find their salaries—which range from 500 to 200 pesos yearly, besides the dean’s 600—pitiably small and inadequate, and they must even resort to the charitable funds and to the gifts of friends to eke out their incomes. The same difficulties beset the parish ministers; but worst of all is the condition of the poor clerics who receive no pay, who have no income save occasionalofferings for masses and the alms of benevolent persons.]85. [The provincial of the Jesuits, Father Joseph Fernandez, seconds the appeal of the merchants.20He states that since 1709 the fortunes of the wealthy citizens are nearly all ruined—by calamities, unsuccessful sales at Acapulco, the failure of the galleons to make the voyage, poor crops in Filipinas, or the quarrels of the governors and auditors—and those who formerly made contributions to the religious orders now need and ask for help from them. “This city of Manila (and in it all the islands) is reduced to eight or ten private persons who are able with their own wealth alone to make up the 300,000 pesos which your Majesty allows for their commerce; and the number of its citizens who, as Spaniards, can call themselves such is very nearly 882—although it is true that there are millions of converted natives, and those who are not converted are innumerable. All these citizens depend for their preservation on the three or four piezas which are yearly allotted to [each of] them, according to their merits, in your Majesty’s galleon; and as most of them have not the means of their own to fill this space they have to give it up, or sell it to those who are richer; or they must ask for money from the charitable funds of the Misericordia, the tertiary Order [of St. Francis], or the religious, in order to fill their space on the ship. As they cannot ship therein anything except the coarse cloths and other goods which your Majesty names in your new regulations,the product of which is hardly enough to pay the expenses on them—duties, freight-charges, and carriers’ fees—the poorer citizens will see themselves forced to seek some other way [to make a living]. That means the desertion of these islands for India, and consequently a great diminution in the number of your Majesty’s vassals; and the islands will be exposed to the invasions of the Dutch and other enemies of your royal crown and of the natives. No few of these invasions have been experienced in recent years, and at this time we are being raided by the Mindanaos, the Joloans, and the Burneyans. And I can assure your Majesty that in the space of less than twelve years I have seen this stage21of the citizens of Manila changed five times. For, as it is composed of some who come from Europe (and they count for many), and of others who come from Nueva España, on account of the difference of the climate from that in which they were born they do not remain long; both classes, seeing the little comfort that they can find here, and how small incentive there is from riches (which is that which most influences those who do not possess enormous estates), either die in a short time, worn out with the misery of this country; or they leave the islands, to look for a more comfortable residence. Thus it comes to pass that only we religious and other ecclesiastics remain, with some persons who belong to the richer class (who are few), and these are Europeans, whom affection for their native land is always drawing away. If this [which I have mentioned above] happens (which may God not permit),all these millions of Christian natives will be left abandoned, and exposed to [the danger of] returning to their heathen condition; and of being possessed by the Dutch, or the Chinese, or any other nation that may find a profit in them.” The argument that the prohibition of the trade in Chinese silks will check the drain of silver from Nueva España is refuted by the provincial; he says, “For we who are near China, Batabia, the Coromandel Coast, and other ports of India, know with certainty that the ships and pataches that come to them from Europa to trade in them carry hardly any money for their traffic except the silver, with the stamp and seal of your Majesty, from Perù or from Mexico; and as those vessels have directed their route from Europa by way of Cape Verde, Buena Esperanza [i.e., Good Hope], Cape Comorin, and Sincapura, it must be supposed that they do not obtain the said silver anywhere else than from the commerce in Europa. Your Majesty could, in the course of several years, prevent the silver that comes from Mexico to these islands from passing over to China, to the Coast, or to Batabia, by commanding your governors and other officials at Manila to make strenuous effortsthat in the islands the natives, mestizos, creoles, and various other castes who live in them and are naturalized as subjects, be compelled to weave the cloth goods which are manufactured in other regions; and these people are no less skilful for the mechanical and even the liberal arts than are those of other nations. As for the fabrics of cotton, these people are able to weave them, for their own consumption, more durable and of better quality than the cloths which come from China and theCoast; and as for the silk goods, the hose which these natives weave are those which bring the highest price at Acapulco. The colors for dyeing the goods are furnished by the country itself; for there will be shipped from hereto the empire of China during this year more than thirty champan-loads of sibucao, or campeche, a wood from which the Chinese obtain carmine for their dyes; and the other colors they obtain from trees and roots which also are found in these mountains in abundance. As for the cinnamon, it grows very abundantly in the island of Mindanao, where your Majesty has the fort and garrison of Samboangan, with some missions that are administered by priests of my order, and by other religious from the discalced of St. Augustine. It would be of no little advantage to be able to cultivate the cinnamon, as the Dutch do; for the silver which that nation would be obliged to carry for that product would remain among the vassals of your Majesty, and thus there would be an end to that difficulty (which the merchants of Sevilla certainly exaggerate) of your Majesty forbidding the shipment of the goods which your royal decree specifies, which are those that have some value, in order to be able to pay the cost on the more bulky goods. Who will have courage to weave them, or hunt for them, when he knows that he must lose on them? In these islands abundance of gold is collected in various placers, in which work the slow and patient disposition of the natives is occupied; but as their minds are so careless and ignorant they content themselves with washing out only the exact amount of their tribute, which is five reals for each person. But if your Majesty would give your royal directions toyour governors and ministers, in the course of time it would be possible to secure the production of this gold in abundance; and if it were sent to Nueva España, and exchanged for the silver necessary for the maintenance of these your wretched vassals, the result would be that the latter product would always remain in the dominions of your Majesty. In these islands, also, some pearls are secured by diving, and in these seas some amber is gathered. In the mountains there is no lack of numerous civet-cats; and the civet, if measures were taken for its production, might be no small source of wealth to your vassals, and consequently furnish huge amounts to your loyal treasury.” Father Fernandez mentions that Felipe IV “spent in twenty years 170,000 ducados solely in sending religious to preach the gospel in Philipinas;” and that the monopoly on the buyo industry had produced in one year 11,000 pesos to the royal treasury, and that on wine 18,000 pesos; (but these amounts apparently refer to the price paid for a three years’ contract, rather than to the annual income of the crown from these sources).22]86. All the papers and reports which have been mentioned in this “Period vii” having been received in the Council, and the deputies from Philipinas, Don Francisco Diaz Romero and Don Antonio de Echandía—who deposited their credentials and letters in the office of the secretary—having presented themselves in it, they set forth their claims and stated, in a printed memorial (which they handed in on June 14, 1723) the injuries which the islands were receiving from the practice of the decree of October27, 1720. They entreated that its execution be suspended, and orders given that the commerce be continued with the yearly galleon in the same manner, so far as the lading was concerned, as was in use at the time when the aforesaid despatch was received there [at Manila]. The memorial, in eight leaves, is as follows:87. [This memorial by the city and merchants of Manila presents in detail the amount of their annual commerce in the various kinds of merchandise that are permitted in the decree. The gold exported from Filipinas to Nueva España amounts to less than 12,000 pesos, and is sent not as bullion or coin, but in the form of the slender chains [bejuquillos] wrought by the Malay natives for personal adornment; for in no other form could it compete with the abundance of gold mined in Mexico. The Chinese porcelain is shipped in small quantity, being mainly an article of luxury, like the gold ornaments; moreover, it is bulky and fragile. As for spices, Manila complains that the market for these in Nueva España is already appropriated by the merchants of España who send spices in the trading-fleets to Vera Cruz; in the fleet (of seventeen vessels) commanded by Don Fernando Chacón was carried the enormous amount of 170,737 libras of cinnamon, and more than 70,986 of pepper and cloves, besides various bags and chests of all these kinds of spice the weight of which was not noted. The only products of the islands which have commercial value in Nueva España are wax, lampotes, Ilocos blankets, and cordage; and the value of all that is exported of these, even counting with them the previously mentioned gold chains, does not gobeyond 30,000 pesos. The linen goods have hitherto been shipped from Manila to Acapulco only to fill in empty spaces in the allotments of lading, and have amounted to hardly 60,000 pesos, on which very little profit was obtained. If the main part of the galleon’s cargo has to be composed of these linens, the Acapulco market will be overstocked with them, and the prices there will be so low that Manila cannot afford to send another cargo of this sort. Moreover, as these goods are procured from the foreign factories at Batavia, Madrasta, Patàn, Punticheri, and Vengala, as soon as the traders at those posts understand that the Manila galleons must carry most of their lading in goods to be procured at those factories they will advance their prices enormously, and the galleon will be compelled to sail in ballast, and then only to procure the situado. The floss and raw silk which is the only form of that product permitted to Manila is so bulky a commodity, and the consumption of it in Nueva España is so small, that it too has been shipped only to fill up space; moreover, “for several years it has been increasing in cost, on account of the great amount of it which the Dutch, English, and French obtain from China for the fabrics which are manufactured in Europe.” The deputies, to substantiate their statements, refer to the official reports of the viceroys of Nueva España, and offer to bring forward evidence in their favor from various persons at Madrid who have resided in Filipinas. They claim that the Manila trade in silken fabrics has not harmed the merchants of España, since the silk which is produced in that country is hardly sufficient to supply the home demand, and it is necessary to bring to it foreign silks—exporting toNueva España some goods which have little demand in España; but even these do not occupy one hundred and twenty-five toneladas of space. The greater part of the silk goods woven in España are silks and velvets, and if the value of these has fallen, it is not the importation of Chinese goods which has caused this, but the change in the style of magistrates’ robes,23in which those goods are used, and the small amount of them that is used in the military service. “Just as in these kingdoms [of España] most of the persons of rank are clothed in no other fabrics than those which come from foreign countries on account of either their better quality or their luster—so the same thing occurs in Nueva España, where they follow in everything the customs of Europa; and for this reason most of the silken fabrics which are carried thither in the trading-fleets are from the kingdoms of Inglaterra and Francia, and the provinces of Holanda—as silver and gold tissues, brocades and laces of the same sort; hose, and other stuffs, the sale of which does not injure that of the Chinese silks, on account of the greater value placed upon the former. Therefore, as the silken fabrics which the aforesaid shippers carry [to Nueva España] are not all from the mills of España, but these Spanish silks are in very small quantity and of the sort which are rejected here, it is evident that the injury is not to the commerce of Andalucia, but to the foreign nations. For, since all the gold and silverwhich comes [to España] is carried in trading-fleets and galleons—except what is obtained for wines, brandies, oil, and other products—the slender profits which the traders of Philipinas gain from the sale of the Chinese fabrics will also be given up for their benefit by the foreigners on account of the abundance of the products from their own mills which they will ship to Cadiz, in order that these may be carried to the Indias.” The argument is repeated, that most of the profits in the Acapulco trade must go to European foreigners, if it is restricted to the few and unimportant products of the islands, and thus the enemies of España are strengthened; while if the Chinese trade is allowed those profits fall into the hands of people who cannot and will not injure the Spanish power. The enforcement of the decree will injure not only the citizens of Manila, but the revenues of the crown, which amount annually to an average of 228,557 pesos, besides the duties produced by the Acapulco trade, which amount to 250,000 pesos more. The treasury will have no means to buy the rice of the Indians, their only valuable product; the Sangleys will have no occasion to trade at Manila, which will lose the amount of their licenses (more than 23,000 pesos), besides the import duties and alcabalas which they pay there, which amount to more than 37,000 pesos; and the situado sent to both the Philippines and Marianas must be taken from the Mexican treasury directly, which will be too heavy a burden for it. The king is reminded of the poverty of the Philippines in all natural resources save rice, and their dependence on the Acapulco traffic for money, clothing, and all other needs save that of food. The recent building of twosmall galleons has caused the treasury a great amount of expense, quite disproportionate to that of the one large vessel which hitherto had been used for the Acapulco trade—to say nothing of the extra expense caused by the duplication of crews, officers, and soldiers which is thus rendered necessary. The smaller ships are less able to resist either storms or pirates, and the few experienced seamen in the islands must be divided between them, when they should be massed in one vessel. Again is mentioned the dependence of the missions, and the conversion of the heathen, upon the Acapulco trade; the Indian villages that are more or less christianized now number 457, with 111,683 families, who are in danger of relapsing into heathenism, or being converted to Mahometanism, if the missions cannot be kept up.]88. The Council, on June 14, 1723, agreed that this memorial should go to the fiscal with all those that came before, with the letters of the Audiencia, officials, and prelates which had been laid before the Council on the twelfth of the same month.89. The consulate of Cadiz, by a memorial presented in the Council on the twenty-first of the same month and year-being informed of the petition from Manila requesting that changes be made in the decree issued on October 27, 1720—asked the Council to order that the argument recently brought forward by Manila in regard to this be communicated to them; this having been referred to the fiscal, he was of opinion that the aforesaid document should be communicated to the consulate, as had been done in the year 1720 by order of his Majesty; and the Council agreed to this by a decree of July 12, 1723.90–92. [On September 4 following, a conferencewas held by the representatives of the commerce of Sevilla, to consider the question of the Philippine commerce in Chinese silks and the royal decree forbidding that trade; a copy of the memorial sent from Manila, and other documents bearing thereon, were submitted to that body by the consulate of Cadiz, who had already taken action thereon, and now asked for the support and coöperation of the Sevilla merchants. In a formal resolution by the latter, they express their entire concurrence with the views of Cadiz, and request the king to enforce the decree of 1720. They make light of the statement regarding the great amount of spices carried to Nueva España by Chacón’s fleet, and intimate the probability that the remonstrance by Manila is really instigated by the traders of Nueva España, who, on account of the enormous profits which they make by sending money to the Philippines for investment, must be most affected by the proposed restrictions on the Manila commerce. Sevilla answers the argument of Manila that only one hundred and twenty-live toneladas of Spanish silks are sent to Nueva España, by declaring that even that small amount will soon be reduced to nothing unless the king strictly prohibit the introduction by the Filipinas ships into Nueva España of fabrics woven of silk and gold or silver; also that the silk-mills of España will be ruined and abandoned, and consequently the cities of that country will be inundated with poor people and criminals. On the day before this conference, a similar one was held by the consulate of Cadiz and representatives from the merchants of that city, who made a vigorous remonstrance against the injuries caused to Spanish commerce and industry by the Manila-Acapulcotrade, and especially by the frauds and the infractions of law therein, on which they expatiated in the above conference. In the report drawn up by them they mention several of these. For instance, the merchants of the City of Mexico sent large sums of money to Acapulco for preparing the Manila galleon for its voyage; “and in the three months during which the ship was detained at that port it unloaded an enormous cargo, held its fair, and returned laden with silver, without wintering in that kingdom, on account of the easy and prompt disposal of all that it carried. This cargo was usually 10,000 or 12,000 bales, half of silken fabrics and half of linen goods, [lencería], the proceeds from which reached four millions of pesos; and all this in pesos, eight-real and four-real pieces, since in exchange for the said goods they did not desire or carry any produce, nor even doubloons, nor bars of silver, for all must be new pesos and of Mexican coinage, these being the coins which are current in Turquìa, to which country they were going, since the greater part of the said goods come thence.” Reliable witnesses have told of mule-trains entering Mexico laden with Chinese stuffs, which must amount to almost the value of the goods carried by the eighteen vessels in the trading-fleet which that year came from Spain under Don Manuel de Velasco; and the market of the latter was ruined by the former. “Although the silk fabrics which the ships bring from Philipinas have not the quality or durability of those from España, and the linen goods are all of cotton, and do not last half as long as do those from France, yet as the former are sold cheap, and have a good surface, and are showy, while they last the commerce of España ischecked and suspended.” The merchants of Mexico send so much money to Acapulco that not enough is left to send the trading-fleets back to Spain, which are compelled to winter at Vera Cruz in order to obtain the proceeds of their cargoes and equip the vessels for the return voyage. “So sweeping and irreparable is the great injury which these goods from China, or from the Turks (which is the more certain), cause to the most important cities of España that when the said ship was not allowed to carry those goods Sevilla had more than 12,000 looms for the manufacture of silks of every kind; and with these, even without other stuffs, so great a number of people were employed on them, and so great was the opulence of that city and of all its domain, as is made evident by the great services which on all occasions Sevilla rendered to his Majesty, with sumptuous buildings—churches, hospitals, government buildings, and private houses. But without greater casualty than that of the importations in the ships from China, that city found itself in a straitened and miserable condition, not two hundred looms being left in it, on account of there being no consumption for its fabrics; and the great mass of poor people, who then supported themselves by their labor, are now miserably perishing. No less proof is afforded by what is occurring in Granada; for there more than 12,000 looms were employed only on taffetas (both double and plain), satins, plushes, and all kinds of silk-weaving; and more than 50,000 persons, men and women, were engaged in the industry and labor of making silk goods. For this reason, the amount of silk worked up each year was more than 180,000 libras, from which proceeded considerableprofits to the royal exchequer, for the duty on each libra amounted to thirteen reals and three cuartillos; but, with the one but sufficient reason of the importations of Chinese goods, [that industry] has so fallen away that the amount of silk sold in that city at each gathering of silk does not reach 40,000 libras, and the number of looms operated, on coarse stuffs, is less than 2,000—a similar condition to those of Sevilla.... The same troubles are suffered by Cordova, Jaen, Ezija, Priego, and Alcalà la Real, with many other places which in both the Andalucias were growing and being maintained by the said manufactures. It is not less worthy of attention that the silk-growers of the aforesaid kingdoms of Sevilla, Granada, Cordova, and Murcia are, for lack of sale for the silk that they produce, giving up the cultivation of the mulberry-trees, and abandoning their farms and the places where they dwell.” Cadiz cites the action of Conde de Monclova, viceroy of Peru, who prohibited the shipment of Chinese goods from Acapulco to South America, making them contraband and confiscable, recognizing “their poor quality and lack of durability, and the great detriment which this trade caused to the merchants [of Peru], who go down to Portovelo to hold the fair [at the arrival] of the galleons, which has been the greatest in the world;” and urges the king to enforce strictly the decree of 1720. Such action would greatly benefit the realms of Spain, and would not cause injury to the Philippines, because none of the said Chinese stuffs are made in the islands; “and the only ones who could grieve over it are the Turk, and other princes of Assia, Mahometans, and enemies of our holy Catholic faith.” Asfor the complaint of Manila that the propagation of that faith depends on the silk trade, Cadiz refuses to believe this, and refers the king to a document in Manila which refutes that notion. This is “a memorial or report made by a minister of that Audiencia, N. Calderòn, in which is inserted another, written by Father Fray Victorio Ricci,24of the Order of Preachers, who was for many years a missionary in the empire of China, and afterward in the Philipinas Islands; it was sent by the Supreme Inquisition to its commissary in the islands, in order that he might send to his Majesty information on the points therein.... In these papers it will be clearly evident that the progress and propagation of the faith is not diminished by depriving the islands or the kingdoms adjacent to them of the commerce prohibited to them, or by the restriction which his Majesty has laid on it;” the above prohibition, therefore, is not the cause of the ruin of the citizens of Filipinas.]93–94. [These replies by the merchants of Andalusia call forth another memorial from the Manila deputies, which occupies fourteen printed sheets. They repeat their former arguments, enforcing them by reference to the despatches from the Audiencia of Manila, the archbishop, and the various religious bodies there, and still more to the letters previously addressed to the king by the viceroys of Nueva España; and they adduce various instances from the history of the Manila-Acapulco trade to the same effect. They also undertake to refute the chargesmade by the merchants of Sevilla and Cadiz, and claim that the latter have misrepresented certain facts. We note here some points made by the Manila envoys, as giving new information on the matter at issue. They say that the maintenance of Filipinas, including the missions and military posts, costs the Spanish crown annually 515,568 pesos, for which sum the royal treasury of Mexico should be responsible, according to the laws of the Indias; but it sends thither only 40,000 pesos in money and some 60,000 in goods, and even this remittance comes from the duties which the Manila galleon pays at Acapulco. But in 1637 and for some years later, the situado sent to the islands amounted to more than 325,000 pesos in money, and enough goods to make up the 500,000 pesos. This, however, was largely the result of the failure of the Manila merchants to ship goods to Mexico, a proceeding caused by the undue harshness and severity of the royal visitor Pedro de Quiroga;25but it led to the abolition (by royal decree of September 3, 1639) of the restriction on the kinds of goods permitted to Manila, only limiting the amount of their investments. It is strange that Manila has pursued this commerce for one hundred and forty years without any protest from Andalusia until now; the decadence of the latter is due rather to lack of economy in the use of their wealth than to the competition of Filipinas; and Andalusia has always encountered trouble, since the persons interested in the greater part of the lading of the galleons and fleets have been and are foreigners—French, English, and Dutch. Andalusia claims that thegalleon unlades at Acapulco more than 12,000 piezas, half of them containing silk goods; but the certificates of the royal officials show that in the ten years from 1710 to 1720 the total number of piezas (in ten galleons) was 36,895, including therein the 4,299 half-chests in which the silk goods were shipped—making the average lading of each galleon only 3,660 piezas. The detention of Velasco’s fleet was not due to the arrival of the Manila galleon, but to other causes. The fleet of 1698, in charge of General Mascarùa, was sent lightly laden, and in 1699 Velasco’s fleet followed it, but encountered the other at Vera Cruz; the presence of the two large fleets at one time, and the ravages of yellow fever [bomito negro,i.e., “black vomit”] at that port, rendered it impossible to sell the goods to advantage, to transport them to Mexico, or to equip the vessels for the return voyage. When Velasco could set out for Spain, he received news of the death of Carlos II, and the danger of war between Spain and other powers, which made the merchants unwilling to risk their property on the seas at that time. Finally the Spanish fleet was escorted to Spain by a French squadron of warships, but on reaching Vigo was attacked by an English and Dutch fleet, which inflicted considerable loss on the Spaniards. Moreover, the trading-fleets sent from Spain to Nueva España are nearly twice as large in the last few years as they used to be, which overstocks the colonial markets with goods. Manila claims that the decadence of the silk industry in Andalusia is due to the pest which ravaged that province (with especial mortality in Sevilla) in the middle of the past century; and that part of the remaining population had emigrated toMurcia and Valencia, where they had cultivated mulberry-trees and built up the manufacture of silk goods. Another reason assigned by some writers for the decrease of prosperity in Andalusia was the imposition, at that time, of heavy war-taxes. As early as 1666, the city and the merchants of Sevilla had represented to the crown “their lamentable condition, and the ruin of their looms, caused by the imposition of the millones26and the concourse of foreigners to Cadiz to introduce their own merchandise.” This led to a resolution by the royal Council that the decree of January 25, 1661, should be enforced, which provided thatthe custom-house and collection of duties for the Indias should be withdrawn from Cadiz, and that the galleons and fleets should take on their lading in the river of Sevilla and the port of San Lucar. As for the stuffs from foreign countries which, it is alleged, are brought to España and crowd out the manufactures of that country, these are only the fabrics which the more industrious French, English, and Dutch make with the raw material, both wool and silk, which España exports. In 1696 Sevilla complained to the king of the injury which it was experiencing from the importation of foreign goods, but did not mention the Chinese stuffs among these. “In Madrid and Valencia the manufacturers are at present complainingthat the price of silk has risen very high, not because the crop [that is raised in España] is not an abundant one, so much as on account of the so great export, not only from that kingdom but from otherregions, to foreign countries, that which the French alone have bought this year amounting to more than 300,000 doubloons; and if asked about this, any dealer in these goods or any official will answer with entire candor, without blaming the commerce of Manila.” The foreigners bring back these silk goods to España, in order to supply with them not only that country but the Indias, through the fleets and galleons; “and this is what the consulate [of Cadiz] is defending, in order that these goods may, by not introducing into Mexico those from China, be sold [there] with a higher reputation.” The highest authorities all concur in the statement that the Spanish silks sent to Nueva España do not amount to one hundred and twenty-five toneladas. The statement that the Manila galleon carries from that country 4,000,000 pesos is unwarranted; the only possible ground for it is that in 1717 the viceroy allowed the galleon to carry to Manila 2,000,000 pesos, because for three years past no money had been sent to the islands—on account of poor sales at Acapulco, a galleon forced back to the islands by storms, etc.—on condition that the king’s ten per cent be paid on that amount. In other years the amount of money illegally shipped has been very small. Cadiz has alleged that money has been scarce there for some years; but Manila declares thatfrom December, 1720 to July, 1723 over 40,000,000 pesos worth of gold and silver, in coin and bullion, has been landed at Cadiz, without including the value of the other products of the Indias. Cadiz asserts that the money obtained from Nueva España goes to the Turks, the enemies of the Catholic faith; but the Spanish merchants are continually furnishing moneyto other enemies of the faith, the English and Dutch. Moreover, the commodities which the Manila galleon carries are not obtained from the Turks, but (through the European factories) from Indostan, Tunquin, Lao, China, Japon, and the Philippine Islands; while Manila is not even permitted to trade with Arabia and Persia, whose products are carried to the ports of the Levant, and at those fairs the traders from all the European nations buy those goods, with money which has come from the Indias. Manila declares that the trading-fleets carry to Vera Cruz no Spanish products save wines, brandies, oil, raisins, and almonds, and the previously-mentioned small amount of silk goods; all else in their cargoes is of foreign make. The spices which the decree of 1720 allows to the islands will not suffice to pay the expenses of the voyage, especially when Manila must compete with the trading-fleets from Spain in the shipment of these products. The collection of royal duties on goods is regulated by “cubic palmos in accordance with the measurement of the bales [frangotes] and piezas which are shipped.” As for the memorial by Calderòn, Manila asserts that it does not bear on the present question; that auditor, in the time of Governor Curuzalaegui (in which occurred an uprising of the Sangleys), sent a letter to the king remonstrating against the liberty given to the Chinese, and advising that they be not allowed to have intercourse with the Indian natives, or even to live in the Parián. This tolerance had been extended to them for the sake of attracting them to the Christian faith, but Calderòn regarded it as no longer necessary, since they had, even then, a number of Christian missionaries in their own country. In hisletter, he cited Father Ricci in support of some of his statements. While the Spanish silks sent to Nueva España amount to only one hundred and twenty-five toneladas, those of foreign make sent thither from Spanish ports are more than a thousand toneladas. The French, English, and Dutch trade at Canton, where the main part of their commerce is in raw silk.]95–96. [The above memorial was referred by the Council to the fiscal, on October 6, 1723; and on December 22 following, a printed answer to both of those by Manila was placed before the Council by the consulate and merchants of Cadiz. They remind the king that when Filipinas was first discovered the ships brought back to España abundance of gold, pearl, amber, civet, wax, and fabrics of Ilocos; and for some time afterward these and many other valuable products were exported from Manila, which became the emporium of both Eastern and Western India. In those early times, when so much zeal and energy for the conversion of the heathen was displayed, it was not necessary to the missions to depend upon the trade in Chinese silks; but, for the sake of benefiting the natives of the islands, and to check the drain of silver to foreign nations, the Spanish government (by decrees of 1589 and 1596) authorized the barter and exchange of the products of Filipinas for those of China, under the system calledpancada. But Manila has distorted this into the assumption that the Chinese trade was intended for the maintenance of the Spanish colony in Filipinas, and that it was to be without restriction, save in its amount—although, as a fact, the trade in silk fabrics of China was not introduced until many yearslater. The system of distributing the commerce among the citizens of Manila replaced the earlier pancada, and led to such abuses that Felipe III attempted to check them by a severe decree (1620); and later enactments placed the Acapulco commerce on such footing that it flourished greatly, to the mutual advantage of Filipinas and Nueva España, and to the enrichment of Manila and its citizens. That commerce benefited the poor citizen as well as the rich; but the trade in silks is only for the benefit of the wealthy merchant and the rich consumer, as they are articles of luxury. The earlier commerce of Manila also supported and stimulated the consumption of Spanish silks in Nueva España and Peru, and the silk industry flourished in the mother-country; but the later introduction of Chinese silks into the American colonies, and the frauds and excess connected with this trade, have ruined the silk industry on both sides of the Atlantic, and even impaired the prosperity of Manila. Cadiz claims that the merchants of Mexico have committed many frauds, and transgressed the ordinances, and prevented the execution of these, in regard to the Manila trade, and do so with the collusion and aid of the officials: for instance, the galleon “Nuestra Señora del Rosario” arrived at Acapulco on January 11, 1699, and the Manila citizens attempted to compound the duties on the cargo for 100,000 pesos; but the royal fiscal opposed this, showing that the ship had brought 6,754 piezas of lading, without counting a considerable quantity of pepper and other goods outside of the registration. It was also found that although the law restricted the entire cargo to the value of 250,000 pesos, and its ownership to the citizens of Manila,this vessel contained goods to the amount of 233,966 pesos which belonged to the citizens of Puebla alone, and it was estimated that it must contain at least a million pesos’ worth of goods belonging to merchants in the City of Mexico. The Mexican government compelled the payment on these goods of duties amounting to 50,000 pesos more, and would have investigated the whole matter, to ascertain the exact amount of the illegal shipments; but the commercial interests of Mexico exerted such influence against this that the Audiencia desisted from the undertaking. Again Cadiz accuses the importation of Chinese silks into Nueva España of having ruined the silk industry in España; although those goods are so thin and poor that they are worn out even before the Manila galleon leaves Acapulco, they are so cheap and showy that they undersell the better goods from España even competing with the latter in Vera Cruz, where the Chinese goods are purchased by the traders of Habana, Puerto Rico, Cartagena, and other Spanish colonies; and all this is overlooked by the Spanish officials in high places, because they profit by this illegal traffic. If the king will prohibit the importation of silk woven with silver and gold, and “check the hand which Mexico moves at the command of Manila,” the silk industry will be revived in España, its people will be kept from idleness and poverty, and foreign countries will no longer drain its resources. Cadiz desires Manila to content itself with the spice-trade, which is a staple and profitable line of commerce, and which Manila can carry on more cheaply and promptly than Spanish merchants can; the spices sent from España onChacón’sfleet were needed to supply the scarcity ofthem at that time, as the Manila trade had been interrupted temporarily; but if the latter be regular, such shipment from España could not occur again. From the year 1690, the indult ran from 50,000 to 74,000 pesos, on the basis of the 250,000 pesos allowed to the Manila trade; but it is evident that the duties ought now to amount to above 500,000 pesos, on the enormous quantities of Chinese silks that the galleon of 1,000 toneladas carries.]97–105. [This memorial, with like protests from the cities of Toledo, Ezija, and Murcia, was sent to the fiscal, who on March 16, 1724, handed in his opinion on the question at issue—that is, whether the decree of 1720 should be changed or enforced. He lays down three propositions: First, that the trade in Chinese stuffs should not be prohibited to the citizens of Filipinas, since it is necessary to their maintenance, those islands having no profitable mines or commercial products; moreover, the introduction and propagation of the Catholic faith therein is an obligation of justice as well as of religious zeal, and was so recognized by Felipe II, when he refused to abandon Filipinas; and to fulfil this obligation the Spanish colony there should be sustained. For this purpose the trade with Nueva España had been granted to Manila, to such extent as should be necessary for its preservation, that is, to the amount of 250,000 pesos, and 500,000 in returns; and in the permission given to Manila to trade with China there had been, and should be, no restriction as to the woven silks of that country. Second, this trade ought, nevertheless, to be strictly confined to the amount of their permission, and all frauds to be prevented; for the complaints of Spanish producersand merchants had been caused by the frauds and abuses in the Manila trade, rather than by the mere fact of its including Chinese goods; the fiscal even suggests that they have an official representative at Acapulco to aid in the unlading and inspection of the Manila galleon, and report thereon to the viceroy, which would aid in preventing frauds and enable the Spanish merchants to discuss the question more intelligently. Third, that in case the trade in Chinese silks be prohibited to Manila, that in spices should be absolutely prohibited to the Spanish merchants and given exclusively to those of Filipinas; while the American trade in silks should be free to the Spaniards.]106–111. [The Council considered this question on April 6, and decided that the decree of 1720 should be changed; they recommended that the Filipinas trade be continued as before the decree, and employing but one large galleon; that the decree of 1702 should be enforced, save that the goods should be valued not by actual inspection of the bales but by invoices presented by the shippers, with their sworn statements that the goods were their own; nor should any indult, payment of double duties, or other form of composition be tolerated; and that the royal officials at Manila, Cavite, Acapulco, and Mexico should be held responsible for the fulfilment of these regulations, under severe penalties. This proceeding was approved by the king, who issued despatches in accordance therewith (June 17, 1724) to the viceroy of Nueva España and other officials concerned therein; and on August 8 the merchants of Cadiz were invited to nominate a deputy to watch the Acapulco commerce.]

PERIOD VIIOf what was done in Manila on receiving the decree of October 27, 1720. Recourse to the Council by their deputies. Reply from the commerce of Andalucia, and what was decided in regard to this matter in the year 1724.71. On August 2, 1722, the governor, Marqués de Torre-Campo, received at Manila the ordinance despatched on October 27, 1720, of which the preceding “Period” speaks. Having caused this decree to be published by a proclamation in that city, record of it was made in the offices, and it was communicated to the municipal council in open session. The cabildo protested against it, promising to obey, but resolving to set forth to the governor in the first place, and afterward to his Majesty, the damages and troubles which would result from its execution to religion, to the royal treasury, and to the greater welfare of those islands, from their not continuing to enjoy the permission to trade in fabrics of silk, which they had possessed for more than one hundred and forty years. They would therefore be obliged to entreat that his Majesty give them permission to retire, with their families, to the lands and domains of his Majesty which they should consider most suitable.72. In a long memorial presented to the governor was set forth in detail the motives on which they based this action; and when orders had been given that the fiscal of that Audiencia should examine it, although he recognized that their statements were correct, and that the islands could not maintain themselves on the system of commerce which had been laid down, he demanded that orders should be givento fulfil the cited royal decree, and that the city and merchants should appeal to his Majesty who, there was reason to expect, would take care of his vassals there, and of the interests, both spiritual and temporal, which were concerned in it—and the governor gave orders to that effect. Although the city and the merchants by a second memorial insisted upon a suspension of the above regulation, demanding that, in case there was no room for it and for continuing their trade in silks and stuffs as heretofore, at least he should declare that they were not obliged to invest their funds in the commodities which were prescribed to them, as it would occasion their total ruin (and they demonstrated this): nevertheless, the governor, bearing in mind that the damages to his Majesty would be no less, if the galleon for that year should go empty, commanded that, in accordance with the amount permitted by the cited regulation, they should make the distribution of the [permits to ship] merchandise as his Majesty had commanded. The city and the merchants, with the hope that his Majesty would give attention to the urgent representations that would be made by the commissaries whom it had been agreed to despatch to the court, agreed to continue the commerce meanwhile conformably to the despatch of 1720—sacrificing out of respect to his Majesty, and in order to maintain the religion established in those islands, their own wealth, which necessarily must be ruined and lost in a commerce so useless and unfortunate as that to which they were reduced; since the bulky commodities, on account of their abundance and poor manufacture, would not allow them to gain ten per cent, since the risks extended to fifty per cent.73. The city of Manila, in order to render commendable and frame in more formal manner its appeal from the aforesaid decree of October 27, 1720, which it must bring before the royal person—not only for the continuation of the traffic in the silken fabrics, but also for the increase of its permission from the three hundred thousand pesos which it was enjoying to five hundred thousand—came before the Audiencia and presented before it the arguments and reasons in favor of both these requests. After explaining the losses that would arise from the desolation and depopulation to which the islands would come (which the Audiencia took into consideration in its memorial, as will be noted) the city added that when in Manila there were only 230 citizens (which was in the years 1636–37) returns of 500,000 pesos were permitted to them; but since in the year 1722 the city had 882 citizens, and there was an increase in the charitable foundations, which placed 150,000 pesos at risk on each galleon, the necessity was evident of increasing the permission to 500,000 pesos—350,000 pesos for the citizens, and 150,000 for the charitable foundations. This increase in the number of citizens made necessary the expansion of the permission, from the very fact that in the year 1702, in which there were only 400 citizens, his Majesty had permitted 300,000 pesos of investments, and 600,000 pesos in returns.74. It was also expedient that permission be given to the seamen to transport in their own chests goods up to the amount of 40,000 pesos of investment, on account of the importance of interesting them in the defense,15and in order to facilitate that in provincesso remote there should be Spaniards who would serve as artillerists and seamen, since their wages alone, in voyages so arduous and long, could not be sufficient incentive. In order that that commerce might be regulated and infractions regarding the lading be avoided, an arrangement was proposed to his Majesty in which the annual investment was reduced to 3,200 piezas of the regular sizes—half-bundles, bags, sacks, [churlos,balsas(forbolsas)] cakes of wax, and other like packages of bulky commodities, and three hundred half-chests of goods from China, in order to supplement the said 3,20016piezas. Consequently, at the despatch of the galleon there would be nothing else to do except to distribute the said piezas and issue the permits for its lading—collecting 10,000 pesos for the royal duties, at the rate of two per cent, for this purpose rating the 3,200 piezas at 128 pesos and 1 tomin, and the half-chests at 300 pesos and pay at Acapulco thirteen per cent, regulating the 3,200 piezas at 256 pesos and 2 tomìns, and the 300 half-chests at 600 pesos each. This would result in the royal duties at both ports amounting to 140,000 pesos, and in return would be brought back, for the account of the permission, a million pesos; and thus would be avoided sworn declarations, and other dubious measures to which the previous regulations were subjected.75. The Audiencia of Manila in a letter of November 9, 1722, taking into consideration another which they had written on August 6, 1713, in whichthey set forth the losses which that commerce had suffered—in [the wreck of] their galleons, the unsuccessful fairs of Acapulco, and the excessive pecuniary extortions that they had suffered in Acapulco on account of the royal duties and in other ways—to the end that new measures might be taken by his Majesty for the rigorous reëstablishment of the commerce of those islands, describe (influenced by the urgent representations made by the city and by previous information obtained by each auditor) the affliction which has been caused by the new decree of October 27, 1720. They declared that they judged necessary for the maintenance of these islands and the propagation of the holy gospel, not only the permission for the silk and the stuffs prohibited by the cited despatch, but also the increase of the permission from 300,000 to 500,000 pesos. The Audiencia affirmed that the Spaniards could not exist without this commerce, because the culture of the fields was in the hands of the natives and the management of the guilds [gremios] in those of the Sangleys and their mestizos; that the salaries and pay with which the military officers, soldiers, and civil officials were recompensed did not reach half the annual expense of their families, in consideration of which it was commanded to include then the distribution of the lading of the galleons; and that, while the permitted amount was 300,000 pesos, and the number of citizens so great, the investment of each one, even if all were alike in wealth and services, did not amount to 400 pesos, the profit on which was not enough for the proper support of a man who was not actually poor, and on this account they could not increase their wealth. When the Europeans see that it is useless to transport goodsto those regions where there is not, outside of commerce, any motive which would induce them to remain, or which would bring other new traders, those who consider the matter have reason to fear that in a few years the capitals of those who live there will be consumed, and that others will refuse to enter into the same experience; then Philipinas will be left to the Indians and Sangleys, the gospel ministers without the guards of Spaniards for their protection, the military posts without garrisons, the natives without any control, and everything on the blink of a deplorable ruin.76. That with the commodities which were allowed by the said royal decree, the lading of the annual galleon could not reach the gross amount of the 300,000 pesos of the commission. From this it resulted that that amount was diminished and the traders exposed to evident loss in Nueva España, on account of the abundance of those very articles of merchandise; and that would result in cutting off the proceeds of the many and large charitable funds, founded on the merchandise risked in those galleons, for the support of clergymen, hospitals, convents, divine worship, dowries to orphan girls, and many other alms—which, even though they were no more than those which were administered by the brotherhood of La Misericordia, and by the tertiary Order of St. Francis, were of the greatest importance, and their failure a most notable affliction to all the islands.77. That by the exclusion of the stuffs and silks, which were the principal articles of commerce of the islands with China, all that commerce [i.e., with Nueva España] would come to an end, since all the rest was of so little value that it could not, withoutthe substantial aid of the silks, allow any profit. From this would result another great difficulty in the propagation of the holy gospel, that if the Chinese do not come to the trade they will lose the opportunity for conversion which so many have attained, attracted by familiar intercourse with the Spaniards, with the occasion of this commerce, and there would be great difficulty in introducing the gospel ministers into those dominions; and these are motives which have always engaged the chief attention of his Majesty, to judge by the laws. The Audiencia concluded by expressing the opinion thatthe prohibition of the silks should be removed, and an increase be granted in the permission to 500,000 pesos, with the number of piezas which the city was proposing—this regulation being made in proportion to the number of citizens, in order that the islands might maintain themselves, and thus obviate the serious inconveniences that were experienced; and, as for the duties which the city proposed, this question was referred to the decision of the Council.78. The fiscal of that Audiencia, Don Pedro Bedoya,17in a letter of November 15, in the same year, 1722, in consequence of the duplicate copy which he received of the royal decree of October 27, 1720, states on his part—after repeating his previous opinion regarding its execution, as given to the city of Manila, the action taken by the governor, the recourse by the city to the Audiencia, and the report made by that body—what his opinion is, in fulfilment of his obligation, in regard to the memorial of the city and the merchants; it is brought under four heads, which are:IThe necessary dependence which the maintenance of these islands has on the commerce, in order that the Spaniards may maintain themselves in them; and the benefit from the charitable funds, in which are annually expended 75,000 pesos—which sum proceeds from the trading of the 150,000 pesos which are carried in the annual galleon on account of the said charitable funds.IIThat if the prohibition of the stuffs and other commodities from China remains, their former control of the trade therein will be disturbed, and the royal decrees issued for this purpose (some of which are compiled18) will be subverted—such as those which command that the commodities which they convey shall be bought from the Sangleys; and that if this [Chinese] commerce is prohibited that of Nueva España becomes unprofitable, as the bulky commodities do not fill up the amount of the permitted trade, and it will not be possible to pay the cost of traffic in them without those from China.IIIThat for the maintenance of these islands, the support of the Spaniards, and the success of the charitable funds, it is necessary that the amount permitted be increased to 500,000 pesos and a million of returns, with the inclusion of the fabrics from China.IVThe regulation of the lading, in order to avoid infractions of the law [is necessary]; as also that the dubious and burdensome obligation of making sworn declarations be laid aside, and that the quality and number of the commodities which are transported must appear in the registers.79. [These points made by the fiscal are discussed at length by him in a report addressed to the king, dated November 15, 1722. Among other things, he states that the merchants prefer one galleon of 800 or 900 tons burden to two of 500 tons each, as being less expensive (on account of requiring fewer officers and men), safer (as carrying larger cannon) and less exposed to danger from either enemies or storms, than the two smaller vessels; that the industry and love of gain displayed by the Chinese who reside in the islands have secured to them the control of all the crafts and useful arts, and of the commerce of the islands save that with Nueva España, which is therefore the only resource of the Spanish citizens; that the current rate of income19is but five per cent in the islands, while thatcommerce brings in fifty per cent; that most of the rural estates [haciendas] are possessed by the religious orders; that houses constitute property of little value, on account of the frequent fires and earthquakes; and that consequently the charitable foundations [obras pias] have been necessarily based on the Acapulco trade. It is also declared that the annual situado from Mexico amounts to no more than 50,000 or 60,000 pesos, while the annual budget of the government expenses amounts to 500,000 pesos, which the royal treasury of the islands must pay from the proceeds of the duties on merchandise. The request of the Manila citizens for a permission to send 500,000 pesos’ worth, in 3,500 piezas, is very moderate; as the trade has been conducted, the 300,000 pesos’ worth has made 4,798 piezas, for the last five years—which is evidence of the infractions of law which have been committed in that commerce. Moreover, the proposition of the city that the duties belonging to the crown be levied on the number of the piezas, will be likely to prevent many of the frauds which are now practiced in this direction. The fiscal opposes the request of the city that the seamen be allowed an increase of the small amount already allowed them, free from duties, for investment on their own account, declaring that it will but increase the illegal trade already prevalent, and that the proposition to allow them 40,000 pesos’worth of trade (with twice that amount in returns for the merchandise) would allow the seamen a greater investment than even the citizens, since the former average only 115 men to each galleon. He advises that the officers of the ships be permitted to have a share in the lading of the ship, in place of their present wages; and that one large galleon be occupied in the trade to Acapulco, rather than two small ones. He reminds the king of the opening afforded by the trade between Manila and China for the conversion of the Chinese and the entrance of the gospel into that heathen empire.]80. [The treasury officials at Manila also write, seconding the proposal to despatch one large galleon; and they add that the royal exchequer of the islands will be ruined if the decree of 1720 is enforced, “for the commerce would cease, and consequently the royal duties which it was producing.”]81. The archbishop of Manila, the dean and cabildo of that church, and the provincial of the Society [of Jesus], in their letters of November 6, 7, and 8 of the same year, support the entreaty of the city; they deprecate the ruin (both spiritual and temporal) of the islands, and express the same opinion as that of the Audiencia and the fiscal, as will be seen by their letters, which follow below.82. The provincials of St. Dominic, St. Francis, and St. Augustine (both calced and discalced), in their memorials of the same year expatiate on the necessity and advantage of changing the aforesaid decree of 1720, and granting likewise to the islands the increase of the permitted trade which they solicit; and they reproduce in detail what the other prelates and ministers say.83. [The letter of the archbishop (Fray Franciscode la Cuesta) states that he has been urged to write it by the city and merchants of Manila, and the bureau of the Misericordia; and he begins, very naturally, by arguing that the religious interests of the Philippines and of China depend upon the maintenance of the commerce of the islands. He refers to the opposition made to it by the merchants of Andalusia, which he thinks has no good foundation, since their trade with the other European nations drains from España more money than does that of Filipinas from Nueva España—this last being their ground of complaint against the Manila trade; but even if the Sangleys and other heathen carry away silver from Manila, “they have not harmed the [Spanish] crown, and are friendly to the [Christian] religion; while it is certain that the European nations, even if they are not all opposed to religion, at least have been at various times hostile to the crown, and that the amount annually transported by the said nations to Great China and other heathen kingdoms exceeds four millions [of pesos].... And although the argument [of the Andalusians]—that the fabrics from China cause injury, at the expense of those which are transported from Cadiz—would have some weight if all the fabrics in which the Andalusians trade were manufactured in España, since they are not made there the above argument has very little value.” The Spaniards in Filipinas regret that so grievous burdens and restrictions are laid upon them through the influence of the Andalusians, and especially that the result of these must be very detrimental to the charitable funds which so greatly depend upon the Acapulco trade. Two-thirds of these, or 100,000 pesos, belong to theMisericordia alone, whose educational, religious, and charitable labors are so important to the public welfare and the maintenance of the Spanish colony in Filipinas; the remaining 50,000 pesos belong to other institutions. The archbishop therefore urges the king to accede to the requests of the Manila merchants.]84. [The dean and cabildo of the Manila cathedral also support the merchants; they fear lest the income of the church will suffer from the impaired condition to which the decree of 1720 threatens to bring the Filipinas colony. They adduce similar arguments to those contained in the preceding letters, all taking for granted that the prohibition of Chinese silks means the ruin of the Acapulco trade. Incidentally this letter states the following facts of interest: “The poverty of the soldiers is such that they always go about as mendicants and in need; for as they receive no more pay than that of two pesos and a fanega of rice—which is given every month to the soldiers, but to the convicts who serve [forzados] in the troops only the rations—if they could not find refuge in the aid given by the citizens, the alms from the charitable funds, and the broken food at the convent doors, and in what the more industrious can earn by doing errands, they would certainly perish.” The prebends of the cathedral find their salaries—which range from 500 to 200 pesos yearly, besides the dean’s 600—pitiably small and inadequate, and they must even resort to the charitable funds and to the gifts of friends to eke out their incomes. The same difficulties beset the parish ministers; but worst of all is the condition of the poor clerics who receive no pay, who have no income save occasionalofferings for masses and the alms of benevolent persons.]85. [The provincial of the Jesuits, Father Joseph Fernandez, seconds the appeal of the merchants.20He states that since 1709 the fortunes of the wealthy citizens are nearly all ruined—by calamities, unsuccessful sales at Acapulco, the failure of the galleons to make the voyage, poor crops in Filipinas, or the quarrels of the governors and auditors—and those who formerly made contributions to the religious orders now need and ask for help from them. “This city of Manila (and in it all the islands) is reduced to eight or ten private persons who are able with their own wealth alone to make up the 300,000 pesos which your Majesty allows for their commerce; and the number of its citizens who, as Spaniards, can call themselves such is very nearly 882—although it is true that there are millions of converted natives, and those who are not converted are innumerable. All these citizens depend for their preservation on the three or four piezas which are yearly allotted to [each of] them, according to their merits, in your Majesty’s galleon; and as most of them have not the means of their own to fill this space they have to give it up, or sell it to those who are richer; or they must ask for money from the charitable funds of the Misericordia, the tertiary Order [of St. Francis], or the religious, in order to fill their space on the ship. As they cannot ship therein anything except the coarse cloths and other goods which your Majesty names in your new regulations,the product of which is hardly enough to pay the expenses on them—duties, freight-charges, and carriers’ fees—the poorer citizens will see themselves forced to seek some other way [to make a living]. That means the desertion of these islands for India, and consequently a great diminution in the number of your Majesty’s vassals; and the islands will be exposed to the invasions of the Dutch and other enemies of your royal crown and of the natives. No few of these invasions have been experienced in recent years, and at this time we are being raided by the Mindanaos, the Joloans, and the Burneyans. And I can assure your Majesty that in the space of less than twelve years I have seen this stage21of the citizens of Manila changed five times. For, as it is composed of some who come from Europe (and they count for many), and of others who come from Nueva España, on account of the difference of the climate from that in which they were born they do not remain long; both classes, seeing the little comfort that they can find here, and how small incentive there is from riches (which is that which most influences those who do not possess enormous estates), either die in a short time, worn out with the misery of this country; or they leave the islands, to look for a more comfortable residence. Thus it comes to pass that only we religious and other ecclesiastics remain, with some persons who belong to the richer class (who are few), and these are Europeans, whom affection for their native land is always drawing away. If this [which I have mentioned above] happens (which may God not permit),all these millions of Christian natives will be left abandoned, and exposed to [the danger of] returning to their heathen condition; and of being possessed by the Dutch, or the Chinese, or any other nation that may find a profit in them.” The argument that the prohibition of the trade in Chinese silks will check the drain of silver from Nueva España is refuted by the provincial; he says, “For we who are near China, Batabia, the Coromandel Coast, and other ports of India, know with certainty that the ships and pataches that come to them from Europa to trade in them carry hardly any money for their traffic except the silver, with the stamp and seal of your Majesty, from Perù or from Mexico; and as those vessels have directed their route from Europa by way of Cape Verde, Buena Esperanza [i.e., Good Hope], Cape Comorin, and Sincapura, it must be supposed that they do not obtain the said silver anywhere else than from the commerce in Europa. Your Majesty could, in the course of several years, prevent the silver that comes from Mexico to these islands from passing over to China, to the Coast, or to Batabia, by commanding your governors and other officials at Manila to make strenuous effortsthat in the islands the natives, mestizos, creoles, and various other castes who live in them and are naturalized as subjects, be compelled to weave the cloth goods which are manufactured in other regions; and these people are no less skilful for the mechanical and even the liberal arts than are those of other nations. As for the fabrics of cotton, these people are able to weave them, for their own consumption, more durable and of better quality than the cloths which come from China and theCoast; and as for the silk goods, the hose which these natives weave are those which bring the highest price at Acapulco. The colors for dyeing the goods are furnished by the country itself; for there will be shipped from hereto the empire of China during this year more than thirty champan-loads of sibucao, or campeche, a wood from which the Chinese obtain carmine for their dyes; and the other colors they obtain from trees and roots which also are found in these mountains in abundance. As for the cinnamon, it grows very abundantly in the island of Mindanao, where your Majesty has the fort and garrison of Samboangan, with some missions that are administered by priests of my order, and by other religious from the discalced of St. Augustine. It would be of no little advantage to be able to cultivate the cinnamon, as the Dutch do; for the silver which that nation would be obliged to carry for that product would remain among the vassals of your Majesty, and thus there would be an end to that difficulty (which the merchants of Sevilla certainly exaggerate) of your Majesty forbidding the shipment of the goods which your royal decree specifies, which are those that have some value, in order to be able to pay the cost on the more bulky goods. Who will have courage to weave them, or hunt for them, when he knows that he must lose on them? In these islands abundance of gold is collected in various placers, in which work the slow and patient disposition of the natives is occupied; but as their minds are so careless and ignorant they content themselves with washing out only the exact amount of their tribute, which is five reals for each person. But if your Majesty would give your royal directions toyour governors and ministers, in the course of time it would be possible to secure the production of this gold in abundance; and if it were sent to Nueva España, and exchanged for the silver necessary for the maintenance of these your wretched vassals, the result would be that the latter product would always remain in the dominions of your Majesty. In these islands, also, some pearls are secured by diving, and in these seas some amber is gathered. In the mountains there is no lack of numerous civet-cats; and the civet, if measures were taken for its production, might be no small source of wealth to your vassals, and consequently furnish huge amounts to your loyal treasury.” Father Fernandez mentions that Felipe IV “spent in twenty years 170,000 ducados solely in sending religious to preach the gospel in Philipinas;” and that the monopoly on the buyo industry had produced in one year 11,000 pesos to the royal treasury, and that on wine 18,000 pesos; (but these amounts apparently refer to the price paid for a three years’ contract, rather than to the annual income of the crown from these sources).22]86. All the papers and reports which have been mentioned in this “Period vii” having been received in the Council, and the deputies from Philipinas, Don Francisco Diaz Romero and Don Antonio de Echandía—who deposited their credentials and letters in the office of the secretary—having presented themselves in it, they set forth their claims and stated, in a printed memorial (which they handed in on June 14, 1723) the injuries which the islands were receiving from the practice of the decree of October27, 1720. They entreated that its execution be suspended, and orders given that the commerce be continued with the yearly galleon in the same manner, so far as the lading was concerned, as was in use at the time when the aforesaid despatch was received there [at Manila]. The memorial, in eight leaves, is as follows:87. [This memorial by the city and merchants of Manila presents in detail the amount of their annual commerce in the various kinds of merchandise that are permitted in the decree. The gold exported from Filipinas to Nueva España amounts to less than 12,000 pesos, and is sent not as bullion or coin, but in the form of the slender chains [bejuquillos] wrought by the Malay natives for personal adornment; for in no other form could it compete with the abundance of gold mined in Mexico. The Chinese porcelain is shipped in small quantity, being mainly an article of luxury, like the gold ornaments; moreover, it is bulky and fragile. As for spices, Manila complains that the market for these in Nueva España is already appropriated by the merchants of España who send spices in the trading-fleets to Vera Cruz; in the fleet (of seventeen vessels) commanded by Don Fernando Chacón was carried the enormous amount of 170,737 libras of cinnamon, and more than 70,986 of pepper and cloves, besides various bags and chests of all these kinds of spice the weight of which was not noted. The only products of the islands which have commercial value in Nueva España are wax, lampotes, Ilocos blankets, and cordage; and the value of all that is exported of these, even counting with them the previously mentioned gold chains, does not gobeyond 30,000 pesos. The linen goods have hitherto been shipped from Manila to Acapulco only to fill in empty spaces in the allotments of lading, and have amounted to hardly 60,000 pesos, on which very little profit was obtained. If the main part of the galleon’s cargo has to be composed of these linens, the Acapulco market will be overstocked with them, and the prices there will be so low that Manila cannot afford to send another cargo of this sort. Moreover, as these goods are procured from the foreign factories at Batavia, Madrasta, Patàn, Punticheri, and Vengala, as soon as the traders at those posts understand that the Manila galleons must carry most of their lading in goods to be procured at those factories they will advance their prices enormously, and the galleon will be compelled to sail in ballast, and then only to procure the situado. The floss and raw silk which is the only form of that product permitted to Manila is so bulky a commodity, and the consumption of it in Nueva España is so small, that it too has been shipped only to fill up space; moreover, “for several years it has been increasing in cost, on account of the great amount of it which the Dutch, English, and French obtain from China for the fabrics which are manufactured in Europe.” The deputies, to substantiate their statements, refer to the official reports of the viceroys of Nueva España, and offer to bring forward evidence in their favor from various persons at Madrid who have resided in Filipinas. They claim that the Manila trade in silken fabrics has not harmed the merchants of España, since the silk which is produced in that country is hardly sufficient to supply the home demand, and it is necessary to bring to it foreign silks—exporting toNueva España some goods which have little demand in España; but even these do not occupy one hundred and twenty-five toneladas of space. The greater part of the silk goods woven in España are silks and velvets, and if the value of these has fallen, it is not the importation of Chinese goods which has caused this, but the change in the style of magistrates’ robes,23in which those goods are used, and the small amount of them that is used in the military service. “Just as in these kingdoms [of España] most of the persons of rank are clothed in no other fabrics than those which come from foreign countries on account of either their better quality or their luster—so the same thing occurs in Nueva España, where they follow in everything the customs of Europa; and for this reason most of the silken fabrics which are carried thither in the trading-fleets are from the kingdoms of Inglaterra and Francia, and the provinces of Holanda—as silver and gold tissues, brocades and laces of the same sort; hose, and other stuffs, the sale of which does not injure that of the Chinese silks, on account of the greater value placed upon the former. Therefore, as the silken fabrics which the aforesaid shippers carry [to Nueva España] are not all from the mills of España, but these Spanish silks are in very small quantity and of the sort which are rejected here, it is evident that the injury is not to the commerce of Andalucia, but to the foreign nations. For, since all the gold and silverwhich comes [to España] is carried in trading-fleets and galleons—except what is obtained for wines, brandies, oil, and other products—the slender profits which the traders of Philipinas gain from the sale of the Chinese fabrics will also be given up for their benefit by the foreigners on account of the abundance of the products from their own mills which they will ship to Cadiz, in order that these may be carried to the Indias.” The argument is repeated, that most of the profits in the Acapulco trade must go to European foreigners, if it is restricted to the few and unimportant products of the islands, and thus the enemies of España are strengthened; while if the Chinese trade is allowed those profits fall into the hands of people who cannot and will not injure the Spanish power. The enforcement of the decree will injure not only the citizens of Manila, but the revenues of the crown, which amount annually to an average of 228,557 pesos, besides the duties produced by the Acapulco trade, which amount to 250,000 pesos more. The treasury will have no means to buy the rice of the Indians, their only valuable product; the Sangleys will have no occasion to trade at Manila, which will lose the amount of their licenses (more than 23,000 pesos), besides the import duties and alcabalas which they pay there, which amount to more than 37,000 pesos; and the situado sent to both the Philippines and Marianas must be taken from the Mexican treasury directly, which will be too heavy a burden for it. The king is reminded of the poverty of the Philippines in all natural resources save rice, and their dependence on the Acapulco traffic for money, clothing, and all other needs save that of food. The recent building of twosmall galleons has caused the treasury a great amount of expense, quite disproportionate to that of the one large vessel which hitherto had been used for the Acapulco trade—to say nothing of the extra expense caused by the duplication of crews, officers, and soldiers which is thus rendered necessary. The smaller ships are less able to resist either storms or pirates, and the few experienced seamen in the islands must be divided between them, when they should be massed in one vessel. Again is mentioned the dependence of the missions, and the conversion of the heathen, upon the Acapulco trade; the Indian villages that are more or less christianized now number 457, with 111,683 families, who are in danger of relapsing into heathenism, or being converted to Mahometanism, if the missions cannot be kept up.]88. The Council, on June 14, 1723, agreed that this memorial should go to the fiscal with all those that came before, with the letters of the Audiencia, officials, and prelates which had been laid before the Council on the twelfth of the same month.89. The consulate of Cadiz, by a memorial presented in the Council on the twenty-first of the same month and year-being informed of the petition from Manila requesting that changes be made in the decree issued on October 27, 1720—asked the Council to order that the argument recently brought forward by Manila in regard to this be communicated to them; this having been referred to the fiscal, he was of opinion that the aforesaid document should be communicated to the consulate, as had been done in the year 1720 by order of his Majesty; and the Council agreed to this by a decree of July 12, 1723.90–92. [On September 4 following, a conferencewas held by the representatives of the commerce of Sevilla, to consider the question of the Philippine commerce in Chinese silks and the royal decree forbidding that trade; a copy of the memorial sent from Manila, and other documents bearing thereon, were submitted to that body by the consulate of Cadiz, who had already taken action thereon, and now asked for the support and coöperation of the Sevilla merchants. In a formal resolution by the latter, they express their entire concurrence with the views of Cadiz, and request the king to enforce the decree of 1720. They make light of the statement regarding the great amount of spices carried to Nueva España by Chacón’s fleet, and intimate the probability that the remonstrance by Manila is really instigated by the traders of Nueva España, who, on account of the enormous profits which they make by sending money to the Philippines for investment, must be most affected by the proposed restrictions on the Manila commerce. Sevilla answers the argument of Manila that only one hundred and twenty-live toneladas of Spanish silks are sent to Nueva España, by declaring that even that small amount will soon be reduced to nothing unless the king strictly prohibit the introduction by the Filipinas ships into Nueva España of fabrics woven of silk and gold or silver; also that the silk-mills of España will be ruined and abandoned, and consequently the cities of that country will be inundated with poor people and criminals. On the day before this conference, a similar one was held by the consulate of Cadiz and representatives from the merchants of that city, who made a vigorous remonstrance against the injuries caused to Spanish commerce and industry by the Manila-Acapulcotrade, and especially by the frauds and the infractions of law therein, on which they expatiated in the above conference. In the report drawn up by them they mention several of these. For instance, the merchants of the City of Mexico sent large sums of money to Acapulco for preparing the Manila galleon for its voyage; “and in the three months during which the ship was detained at that port it unloaded an enormous cargo, held its fair, and returned laden with silver, without wintering in that kingdom, on account of the easy and prompt disposal of all that it carried. This cargo was usually 10,000 or 12,000 bales, half of silken fabrics and half of linen goods, [lencería], the proceeds from which reached four millions of pesos; and all this in pesos, eight-real and four-real pieces, since in exchange for the said goods they did not desire or carry any produce, nor even doubloons, nor bars of silver, for all must be new pesos and of Mexican coinage, these being the coins which are current in Turquìa, to which country they were going, since the greater part of the said goods come thence.” Reliable witnesses have told of mule-trains entering Mexico laden with Chinese stuffs, which must amount to almost the value of the goods carried by the eighteen vessels in the trading-fleet which that year came from Spain under Don Manuel de Velasco; and the market of the latter was ruined by the former. “Although the silk fabrics which the ships bring from Philipinas have not the quality or durability of those from España, and the linen goods are all of cotton, and do not last half as long as do those from France, yet as the former are sold cheap, and have a good surface, and are showy, while they last the commerce of España ischecked and suspended.” The merchants of Mexico send so much money to Acapulco that not enough is left to send the trading-fleets back to Spain, which are compelled to winter at Vera Cruz in order to obtain the proceeds of their cargoes and equip the vessels for the return voyage. “So sweeping and irreparable is the great injury which these goods from China, or from the Turks (which is the more certain), cause to the most important cities of España that when the said ship was not allowed to carry those goods Sevilla had more than 12,000 looms for the manufacture of silks of every kind; and with these, even without other stuffs, so great a number of people were employed on them, and so great was the opulence of that city and of all its domain, as is made evident by the great services which on all occasions Sevilla rendered to his Majesty, with sumptuous buildings—churches, hospitals, government buildings, and private houses. But without greater casualty than that of the importations in the ships from China, that city found itself in a straitened and miserable condition, not two hundred looms being left in it, on account of there being no consumption for its fabrics; and the great mass of poor people, who then supported themselves by their labor, are now miserably perishing. No less proof is afforded by what is occurring in Granada; for there more than 12,000 looms were employed only on taffetas (both double and plain), satins, plushes, and all kinds of silk-weaving; and more than 50,000 persons, men and women, were engaged in the industry and labor of making silk goods. For this reason, the amount of silk worked up each year was more than 180,000 libras, from which proceeded considerableprofits to the royal exchequer, for the duty on each libra amounted to thirteen reals and three cuartillos; but, with the one but sufficient reason of the importations of Chinese goods, [that industry] has so fallen away that the amount of silk sold in that city at each gathering of silk does not reach 40,000 libras, and the number of looms operated, on coarse stuffs, is less than 2,000—a similar condition to those of Sevilla.... The same troubles are suffered by Cordova, Jaen, Ezija, Priego, and Alcalà la Real, with many other places which in both the Andalucias were growing and being maintained by the said manufactures. It is not less worthy of attention that the silk-growers of the aforesaid kingdoms of Sevilla, Granada, Cordova, and Murcia are, for lack of sale for the silk that they produce, giving up the cultivation of the mulberry-trees, and abandoning their farms and the places where they dwell.” Cadiz cites the action of Conde de Monclova, viceroy of Peru, who prohibited the shipment of Chinese goods from Acapulco to South America, making them contraband and confiscable, recognizing “their poor quality and lack of durability, and the great detriment which this trade caused to the merchants [of Peru], who go down to Portovelo to hold the fair [at the arrival] of the galleons, which has been the greatest in the world;” and urges the king to enforce strictly the decree of 1720. Such action would greatly benefit the realms of Spain, and would not cause injury to the Philippines, because none of the said Chinese stuffs are made in the islands; “and the only ones who could grieve over it are the Turk, and other princes of Assia, Mahometans, and enemies of our holy Catholic faith.” Asfor the complaint of Manila that the propagation of that faith depends on the silk trade, Cadiz refuses to believe this, and refers the king to a document in Manila which refutes that notion. This is “a memorial or report made by a minister of that Audiencia, N. Calderòn, in which is inserted another, written by Father Fray Victorio Ricci,24of the Order of Preachers, who was for many years a missionary in the empire of China, and afterward in the Philipinas Islands; it was sent by the Supreme Inquisition to its commissary in the islands, in order that he might send to his Majesty information on the points therein.... In these papers it will be clearly evident that the progress and propagation of the faith is not diminished by depriving the islands or the kingdoms adjacent to them of the commerce prohibited to them, or by the restriction which his Majesty has laid on it;” the above prohibition, therefore, is not the cause of the ruin of the citizens of Filipinas.]93–94. [These replies by the merchants of Andalusia call forth another memorial from the Manila deputies, which occupies fourteen printed sheets. They repeat their former arguments, enforcing them by reference to the despatches from the Audiencia of Manila, the archbishop, and the various religious bodies there, and still more to the letters previously addressed to the king by the viceroys of Nueva España; and they adduce various instances from the history of the Manila-Acapulco trade to the same effect. They also undertake to refute the chargesmade by the merchants of Sevilla and Cadiz, and claim that the latter have misrepresented certain facts. We note here some points made by the Manila envoys, as giving new information on the matter at issue. They say that the maintenance of Filipinas, including the missions and military posts, costs the Spanish crown annually 515,568 pesos, for which sum the royal treasury of Mexico should be responsible, according to the laws of the Indias; but it sends thither only 40,000 pesos in money and some 60,000 in goods, and even this remittance comes from the duties which the Manila galleon pays at Acapulco. But in 1637 and for some years later, the situado sent to the islands amounted to more than 325,000 pesos in money, and enough goods to make up the 500,000 pesos. This, however, was largely the result of the failure of the Manila merchants to ship goods to Mexico, a proceeding caused by the undue harshness and severity of the royal visitor Pedro de Quiroga;25but it led to the abolition (by royal decree of September 3, 1639) of the restriction on the kinds of goods permitted to Manila, only limiting the amount of their investments. It is strange that Manila has pursued this commerce for one hundred and forty years without any protest from Andalusia until now; the decadence of the latter is due rather to lack of economy in the use of their wealth than to the competition of Filipinas; and Andalusia has always encountered trouble, since the persons interested in the greater part of the lading of the galleons and fleets have been and are foreigners—French, English, and Dutch. Andalusia claims that thegalleon unlades at Acapulco more than 12,000 piezas, half of them containing silk goods; but the certificates of the royal officials show that in the ten years from 1710 to 1720 the total number of piezas (in ten galleons) was 36,895, including therein the 4,299 half-chests in which the silk goods were shipped—making the average lading of each galleon only 3,660 piezas. The detention of Velasco’s fleet was not due to the arrival of the Manila galleon, but to other causes. The fleet of 1698, in charge of General Mascarùa, was sent lightly laden, and in 1699 Velasco’s fleet followed it, but encountered the other at Vera Cruz; the presence of the two large fleets at one time, and the ravages of yellow fever [bomito negro,i.e., “black vomit”] at that port, rendered it impossible to sell the goods to advantage, to transport them to Mexico, or to equip the vessels for the return voyage. When Velasco could set out for Spain, he received news of the death of Carlos II, and the danger of war between Spain and other powers, which made the merchants unwilling to risk their property on the seas at that time. Finally the Spanish fleet was escorted to Spain by a French squadron of warships, but on reaching Vigo was attacked by an English and Dutch fleet, which inflicted considerable loss on the Spaniards. Moreover, the trading-fleets sent from Spain to Nueva España are nearly twice as large in the last few years as they used to be, which overstocks the colonial markets with goods. Manila claims that the decadence of the silk industry in Andalusia is due to the pest which ravaged that province (with especial mortality in Sevilla) in the middle of the past century; and that part of the remaining population had emigrated toMurcia and Valencia, where they had cultivated mulberry-trees and built up the manufacture of silk goods. Another reason assigned by some writers for the decrease of prosperity in Andalusia was the imposition, at that time, of heavy war-taxes. As early as 1666, the city and the merchants of Sevilla had represented to the crown “their lamentable condition, and the ruin of their looms, caused by the imposition of the millones26and the concourse of foreigners to Cadiz to introduce their own merchandise.” This led to a resolution by the royal Council that the decree of January 25, 1661, should be enforced, which provided thatthe custom-house and collection of duties for the Indias should be withdrawn from Cadiz, and that the galleons and fleets should take on their lading in the river of Sevilla and the port of San Lucar. As for the stuffs from foreign countries which, it is alleged, are brought to España and crowd out the manufactures of that country, these are only the fabrics which the more industrious French, English, and Dutch make with the raw material, both wool and silk, which España exports. In 1696 Sevilla complained to the king of the injury which it was experiencing from the importation of foreign goods, but did not mention the Chinese stuffs among these. “In Madrid and Valencia the manufacturers are at present complainingthat the price of silk has risen very high, not because the crop [that is raised in España] is not an abundant one, so much as on account of the so great export, not only from that kingdom but from otherregions, to foreign countries, that which the French alone have bought this year amounting to more than 300,000 doubloons; and if asked about this, any dealer in these goods or any official will answer with entire candor, without blaming the commerce of Manila.” The foreigners bring back these silk goods to España, in order to supply with them not only that country but the Indias, through the fleets and galleons; “and this is what the consulate [of Cadiz] is defending, in order that these goods may, by not introducing into Mexico those from China, be sold [there] with a higher reputation.” The highest authorities all concur in the statement that the Spanish silks sent to Nueva España do not amount to one hundred and twenty-five toneladas. The statement that the Manila galleon carries from that country 4,000,000 pesos is unwarranted; the only possible ground for it is that in 1717 the viceroy allowed the galleon to carry to Manila 2,000,000 pesos, because for three years past no money had been sent to the islands—on account of poor sales at Acapulco, a galleon forced back to the islands by storms, etc.—on condition that the king’s ten per cent be paid on that amount. In other years the amount of money illegally shipped has been very small. Cadiz has alleged that money has been scarce there for some years; but Manila declares thatfrom December, 1720 to July, 1723 over 40,000,000 pesos worth of gold and silver, in coin and bullion, has been landed at Cadiz, without including the value of the other products of the Indias. Cadiz asserts that the money obtained from Nueva España goes to the Turks, the enemies of the Catholic faith; but the Spanish merchants are continually furnishing moneyto other enemies of the faith, the English and Dutch. Moreover, the commodities which the Manila galleon carries are not obtained from the Turks, but (through the European factories) from Indostan, Tunquin, Lao, China, Japon, and the Philippine Islands; while Manila is not even permitted to trade with Arabia and Persia, whose products are carried to the ports of the Levant, and at those fairs the traders from all the European nations buy those goods, with money which has come from the Indias. Manila declares that the trading-fleets carry to Vera Cruz no Spanish products save wines, brandies, oil, raisins, and almonds, and the previously-mentioned small amount of silk goods; all else in their cargoes is of foreign make. The spices which the decree of 1720 allows to the islands will not suffice to pay the expenses of the voyage, especially when Manila must compete with the trading-fleets from Spain in the shipment of these products. The collection of royal duties on goods is regulated by “cubic palmos in accordance with the measurement of the bales [frangotes] and piezas which are shipped.” As for the memorial by Calderòn, Manila asserts that it does not bear on the present question; that auditor, in the time of Governor Curuzalaegui (in which occurred an uprising of the Sangleys), sent a letter to the king remonstrating against the liberty given to the Chinese, and advising that they be not allowed to have intercourse with the Indian natives, or even to live in the Parián. This tolerance had been extended to them for the sake of attracting them to the Christian faith, but Calderòn regarded it as no longer necessary, since they had, even then, a number of Christian missionaries in their own country. In hisletter, he cited Father Ricci in support of some of his statements. While the Spanish silks sent to Nueva España amount to only one hundred and twenty-five toneladas, those of foreign make sent thither from Spanish ports are more than a thousand toneladas. The French, English, and Dutch trade at Canton, where the main part of their commerce is in raw silk.]95–96. [The above memorial was referred by the Council to the fiscal, on October 6, 1723; and on December 22 following, a printed answer to both of those by Manila was placed before the Council by the consulate and merchants of Cadiz. They remind the king that when Filipinas was first discovered the ships brought back to España abundance of gold, pearl, amber, civet, wax, and fabrics of Ilocos; and for some time afterward these and many other valuable products were exported from Manila, which became the emporium of both Eastern and Western India. In those early times, when so much zeal and energy for the conversion of the heathen was displayed, it was not necessary to the missions to depend upon the trade in Chinese silks; but, for the sake of benefiting the natives of the islands, and to check the drain of silver to foreign nations, the Spanish government (by decrees of 1589 and 1596) authorized the barter and exchange of the products of Filipinas for those of China, under the system calledpancada. But Manila has distorted this into the assumption that the Chinese trade was intended for the maintenance of the Spanish colony in Filipinas, and that it was to be without restriction, save in its amount—although, as a fact, the trade in silk fabrics of China was not introduced until many yearslater. The system of distributing the commerce among the citizens of Manila replaced the earlier pancada, and led to such abuses that Felipe III attempted to check them by a severe decree (1620); and later enactments placed the Acapulco commerce on such footing that it flourished greatly, to the mutual advantage of Filipinas and Nueva España, and to the enrichment of Manila and its citizens. That commerce benefited the poor citizen as well as the rich; but the trade in silks is only for the benefit of the wealthy merchant and the rich consumer, as they are articles of luxury. The earlier commerce of Manila also supported and stimulated the consumption of Spanish silks in Nueva España and Peru, and the silk industry flourished in the mother-country; but the later introduction of Chinese silks into the American colonies, and the frauds and excess connected with this trade, have ruined the silk industry on both sides of the Atlantic, and even impaired the prosperity of Manila. Cadiz claims that the merchants of Mexico have committed many frauds, and transgressed the ordinances, and prevented the execution of these, in regard to the Manila trade, and do so with the collusion and aid of the officials: for instance, the galleon “Nuestra Señora del Rosario” arrived at Acapulco on January 11, 1699, and the Manila citizens attempted to compound the duties on the cargo for 100,000 pesos; but the royal fiscal opposed this, showing that the ship had brought 6,754 piezas of lading, without counting a considerable quantity of pepper and other goods outside of the registration. It was also found that although the law restricted the entire cargo to the value of 250,000 pesos, and its ownership to the citizens of Manila,this vessel contained goods to the amount of 233,966 pesos which belonged to the citizens of Puebla alone, and it was estimated that it must contain at least a million pesos’ worth of goods belonging to merchants in the City of Mexico. The Mexican government compelled the payment on these goods of duties amounting to 50,000 pesos more, and would have investigated the whole matter, to ascertain the exact amount of the illegal shipments; but the commercial interests of Mexico exerted such influence against this that the Audiencia desisted from the undertaking. Again Cadiz accuses the importation of Chinese silks into Nueva España of having ruined the silk industry in España; although those goods are so thin and poor that they are worn out even before the Manila galleon leaves Acapulco, they are so cheap and showy that they undersell the better goods from España even competing with the latter in Vera Cruz, where the Chinese goods are purchased by the traders of Habana, Puerto Rico, Cartagena, and other Spanish colonies; and all this is overlooked by the Spanish officials in high places, because they profit by this illegal traffic. If the king will prohibit the importation of silk woven with silver and gold, and “check the hand which Mexico moves at the command of Manila,” the silk industry will be revived in España, its people will be kept from idleness and poverty, and foreign countries will no longer drain its resources. Cadiz desires Manila to content itself with the spice-trade, which is a staple and profitable line of commerce, and which Manila can carry on more cheaply and promptly than Spanish merchants can; the spices sent from España onChacón’sfleet were needed to supply the scarcity ofthem at that time, as the Manila trade had been interrupted temporarily; but if the latter be regular, such shipment from España could not occur again. From the year 1690, the indult ran from 50,000 to 74,000 pesos, on the basis of the 250,000 pesos allowed to the Manila trade; but it is evident that the duties ought now to amount to above 500,000 pesos, on the enormous quantities of Chinese silks that the galleon of 1,000 toneladas carries.]97–105. [This memorial, with like protests from the cities of Toledo, Ezija, and Murcia, was sent to the fiscal, who on March 16, 1724, handed in his opinion on the question at issue—that is, whether the decree of 1720 should be changed or enforced. He lays down three propositions: First, that the trade in Chinese stuffs should not be prohibited to the citizens of Filipinas, since it is necessary to their maintenance, those islands having no profitable mines or commercial products; moreover, the introduction and propagation of the Catholic faith therein is an obligation of justice as well as of religious zeal, and was so recognized by Felipe II, when he refused to abandon Filipinas; and to fulfil this obligation the Spanish colony there should be sustained. For this purpose the trade with Nueva España had been granted to Manila, to such extent as should be necessary for its preservation, that is, to the amount of 250,000 pesos, and 500,000 in returns; and in the permission given to Manila to trade with China there had been, and should be, no restriction as to the woven silks of that country. Second, this trade ought, nevertheless, to be strictly confined to the amount of their permission, and all frauds to be prevented; for the complaints of Spanish producersand merchants had been caused by the frauds and abuses in the Manila trade, rather than by the mere fact of its including Chinese goods; the fiscal even suggests that they have an official representative at Acapulco to aid in the unlading and inspection of the Manila galleon, and report thereon to the viceroy, which would aid in preventing frauds and enable the Spanish merchants to discuss the question more intelligently. Third, that in case the trade in Chinese silks be prohibited to Manila, that in spices should be absolutely prohibited to the Spanish merchants and given exclusively to those of Filipinas; while the American trade in silks should be free to the Spaniards.]106–111. [The Council considered this question on April 6, and decided that the decree of 1720 should be changed; they recommended that the Filipinas trade be continued as before the decree, and employing but one large galleon; that the decree of 1702 should be enforced, save that the goods should be valued not by actual inspection of the bales but by invoices presented by the shippers, with their sworn statements that the goods were their own; nor should any indult, payment of double duties, or other form of composition be tolerated; and that the royal officials at Manila, Cavite, Acapulco, and Mexico should be held responsible for the fulfilment of these regulations, under severe penalties. This proceeding was approved by the king, who issued despatches in accordance therewith (June 17, 1724) to the viceroy of Nueva España and other officials concerned therein; and on August 8 the merchants of Cadiz were invited to nominate a deputy to watch the Acapulco commerce.]

PERIOD VIIOf what was done in Manila on receiving the decree of October 27, 1720. Recourse to the Council by their deputies. Reply from the commerce of Andalucia, and what was decided in regard to this matter in the year 1724.

Of what was done in Manila on receiving the decree of October 27, 1720. Recourse to the Council by their deputies. Reply from the commerce of Andalucia, and what was decided in regard to this matter in the year 1724.

Of what was done in Manila on receiving the decree of October 27, 1720. Recourse to the Council by their deputies. Reply from the commerce of Andalucia, and what was decided in regard to this matter in the year 1724.

71. On August 2, 1722, the governor, Marqués de Torre-Campo, received at Manila the ordinance despatched on October 27, 1720, of which the preceding “Period” speaks. Having caused this decree to be published by a proclamation in that city, record of it was made in the offices, and it was communicated to the municipal council in open session. The cabildo protested against it, promising to obey, but resolving to set forth to the governor in the first place, and afterward to his Majesty, the damages and troubles which would result from its execution to religion, to the royal treasury, and to the greater welfare of those islands, from their not continuing to enjoy the permission to trade in fabrics of silk, which they had possessed for more than one hundred and forty years. They would therefore be obliged to entreat that his Majesty give them permission to retire, with their families, to the lands and domains of his Majesty which they should consider most suitable.72. In a long memorial presented to the governor was set forth in detail the motives on which they based this action; and when orders had been given that the fiscal of that Audiencia should examine it, although he recognized that their statements were correct, and that the islands could not maintain themselves on the system of commerce which had been laid down, he demanded that orders should be givento fulfil the cited royal decree, and that the city and merchants should appeal to his Majesty who, there was reason to expect, would take care of his vassals there, and of the interests, both spiritual and temporal, which were concerned in it—and the governor gave orders to that effect. Although the city and the merchants by a second memorial insisted upon a suspension of the above regulation, demanding that, in case there was no room for it and for continuing their trade in silks and stuffs as heretofore, at least he should declare that they were not obliged to invest their funds in the commodities which were prescribed to them, as it would occasion their total ruin (and they demonstrated this): nevertheless, the governor, bearing in mind that the damages to his Majesty would be no less, if the galleon for that year should go empty, commanded that, in accordance with the amount permitted by the cited regulation, they should make the distribution of the [permits to ship] merchandise as his Majesty had commanded. The city and the merchants, with the hope that his Majesty would give attention to the urgent representations that would be made by the commissaries whom it had been agreed to despatch to the court, agreed to continue the commerce meanwhile conformably to the despatch of 1720—sacrificing out of respect to his Majesty, and in order to maintain the religion established in those islands, their own wealth, which necessarily must be ruined and lost in a commerce so useless and unfortunate as that to which they were reduced; since the bulky commodities, on account of their abundance and poor manufacture, would not allow them to gain ten per cent, since the risks extended to fifty per cent.73. The city of Manila, in order to render commendable and frame in more formal manner its appeal from the aforesaid decree of October 27, 1720, which it must bring before the royal person—not only for the continuation of the traffic in the silken fabrics, but also for the increase of its permission from the three hundred thousand pesos which it was enjoying to five hundred thousand—came before the Audiencia and presented before it the arguments and reasons in favor of both these requests. After explaining the losses that would arise from the desolation and depopulation to which the islands would come (which the Audiencia took into consideration in its memorial, as will be noted) the city added that when in Manila there were only 230 citizens (which was in the years 1636–37) returns of 500,000 pesos were permitted to them; but since in the year 1722 the city had 882 citizens, and there was an increase in the charitable foundations, which placed 150,000 pesos at risk on each galleon, the necessity was evident of increasing the permission to 500,000 pesos—350,000 pesos for the citizens, and 150,000 for the charitable foundations. This increase in the number of citizens made necessary the expansion of the permission, from the very fact that in the year 1702, in which there were only 400 citizens, his Majesty had permitted 300,000 pesos of investments, and 600,000 pesos in returns.74. It was also expedient that permission be given to the seamen to transport in their own chests goods up to the amount of 40,000 pesos of investment, on account of the importance of interesting them in the defense,15and in order to facilitate that in provincesso remote there should be Spaniards who would serve as artillerists and seamen, since their wages alone, in voyages so arduous and long, could not be sufficient incentive. In order that that commerce might be regulated and infractions regarding the lading be avoided, an arrangement was proposed to his Majesty in which the annual investment was reduced to 3,200 piezas of the regular sizes—half-bundles, bags, sacks, [churlos,balsas(forbolsas)] cakes of wax, and other like packages of bulky commodities, and three hundred half-chests of goods from China, in order to supplement the said 3,20016piezas. Consequently, at the despatch of the galleon there would be nothing else to do except to distribute the said piezas and issue the permits for its lading—collecting 10,000 pesos for the royal duties, at the rate of two per cent, for this purpose rating the 3,200 piezas at 128 pesos and 1 tomin, and the half-chests at 300 pesos and pay at Acapulco thirteen per cent, regulating the 3,200 piezas at 256 pesos and 2 tomìns, and the 300 half-chests at 600 pesos each. This would result in the royal duties at both ports amounting to 140,000 pesos, and in return would be brought back, for the account of the permission, a million pesos; and thus would be avoided sworn declarations, and other dubious measures to which the previous regulations were subjected.75. The Audiencia of Manila in a letter of November 9, 1722, taking into consideration another which they had written on August 6, 1713, in whichthey set forth the losses which that commerce had suffered—in [the wreck of] their galleons, the unsuccessful fairs of Acapulco, and the excessive pecuniary extortions that they had suffered in Acapulco on account of the royal duties and in other ways—to the end that new measures might be taken by his Majesty for the rigorous reëstablishment of the commerce of those islands, describe (influenced by the urgent representations made by the city and by previous information obtained by each auditor) the affliction which has been caused by the new decree of October 27, 1720. They declared that they judged necessary for the maintenance of these islands and the propagation of the holy gospel, not only the permission for the silk and the stuffs prohibited by the cited despatch, but also the increase of the permission from 300,000 to 500,000 pesos. The Audiencia affirmed that the Spaniards could not exist without this commerce, because the culture of the fields was in the hands of the natives and the management of the guilds [gremios] in those of the Sangleys and their mestizos; that the salaries and pay with which the military officers, soldiers, and civil officials were recompensed did not reach half the annual expense of their families, in consideration of which it was commanded to include then the distribution of the lading of the galleons; and that, while the permitted amount was 300,000 pesos, and the number of citizens so great, the investment of each one, even if all were alike in wealth and services, did not amount to 400 pesos, the profit on which was not enough for the proper support of a man who was not actually poor, and on this account they could not increase their wealth. When the Europeans see that it is useless to transport goodsto those regions where there is not, outside of commerce, any motive which would induce them to remain, or which would bring other new traders, those who consider the matter have reason to fear that in a few years the capitals of those who live there will be consumed, and that others will refuse to enter into the same experience; then Philipinas will be left to the Indians and Sangleys, the gospel ministers without the guards of Spaniards for their protection, the military posts without garrisons, the natives without any control, and everything on the blink of a deplorable ruin.76. That with the commodities which were allowed by the said royal decree, the lading of the annual galleon could not reach the gross amount of the 300,000 pesos of the commission. From this it resulted that that amount was diminished and the traders exposed to evident loss in Nueva España, on account of the abundance of those very articles of merchandise; and that would result in cutting off the proceeds of the many and large charitable funds, founded on the merchandise risked in those galleons, for the support of clergymen, hospitals, convents, divine worship, dowries to orphan girls, and many other alms—which, even though they were no more than those which were administered by the brotherhood of La Misericordia, and by the tertiary Order of St. Francis, were of the greatest importance, and their failure a most notable affliction to all the islands.77. That by the exclusion of the stuffs and silks, which were the principal articles of commerce of the islands with China, all that commerce [i.e., with Nueva España] would come to an end, since all the rest was of so little value that it could not, withoutthe substantial aid of the silks, allow any profit. From this would result another great difficulty in the propagation of the holy gospel, that if the Chinese do not come to the trade they will lose the opportunity for conversion which so many have attained, attracted by familiar intercourse with the Spaniards, with the occasion of this commerce, and there would be great difficulty in introducing the gospel ministers into those dominions; and these are motives which have always engaged the chief attention of his Majesty, to judge by the laws. The Audiencia concluded by expressing the opinion thatthe prohibition of the silks should be removed, and an increase be granted in the permission to 500,000 pesos, with the number of piezas which the city was proposing—this regulation being made in proportion to the number of citizens, in order that the islands might maintain themselves, and thus obviate the serious inconveniences that were experienced; and, as for the duties which the city proposed, this question was referred to the decision of the Council.78. The fiscal of that Audiencia, Don Pedro Bedoya,17in a letter of November 15, in the same year, 1722, in consequence of the duplicate copy which he received of the royal decree of October 27, 1720, states on his part—after repeating his previous opinion regarding its execution, as given to the city of Manila, the action taken by the governor, the recourse by the city to the Audiencia, and the report made by that body—what his opinion is, in fulfilment of his obligation, in regard to the memorial of the city and the merchants; it is brought under four heads, which are:IThe necessary dependence which the maintenance of these islands has on the commerce, in order that the Spaniards may maintain themselves in them; and the benefit from the charitable funds, in which are annually expended 75,000 pesos—which sum proceeds from the trading of the 150,000 pesos which are carried in the annual galleon on account of the said charitable funds.IIThat if the prohibition of the stuffs and other commodities from China remains, their former control of the trade therein will be disturbed, and the royal decrees issued for this purpose (some of which are compiled18) will be subverted—such as those which command that the commodities which they convey shall be bought from the Sangleys; and that if this [Chinese] commerce is prohibited that of Nueva España becomes unprofitable, as the bulky commodities do not fill up the amount of the permitted trade, and it will not be possible to pay the cost of traffic in them without those from China.IIIThat for the maintenance of these islands, the support of the Spaniards, and the success of the charitable funds, it is necessary that the amount permitted be increased to 500,000 pesos and a million of returns, with the inclusion of the fabrics from China.IVThe regulation of the lading, in order to avoid infractions of the law [is necessary]; as also that the dubious and burdensome obligation of making sworn declarations be laid aside, and that the quality and number of the commodities which are transported must appear in the registers.79. [These points made by the fiscal are discussed at length by him in a report addressed to the king, dated November 15, 1722. Among other things, he states that the merchants prefer one galleon of 800 or 900 tons burden to two of 500 tons each, as being less expensive (on account of requiring fewer officers and men), safer (as carrying larger cannon) and less exposed to danger from either enemies or storms, than the two smaller vessels; that the industry and love of gain displayed by the Chinese who reside in the islands have secured to them the control of all the crafts and useful arts, and of the commerce of the islands save that with Nueva España, which is therefore the only resource of the Spanish citizens; that the current rate of income19is but five per cent in the islands, while thatcommerce brings in fifty per cent; that most of the rural estates [haciendas] are possessed by the religious orders; that houses constitute property of little value, on account of the frequent fires and earthquakes; and that consequently the charitable foundations [obras pias] have been necessarily based on the Acapulco trade. It is also declared that the annual situado from Mexico amounts to no more than 50,000 or 60,000 pesos, while the annual budget of the government expenses amounts to 500,000 pesos, which the royal treasury of the islands must pay from the proceeds of the duties on merchandise. The request of the Manila citizens for a permission to send 500,000 pesos’ worth, in 3,500 piezas, is very moderate; as the trade has been conducted, the 300,000 pesos’ worth has made 4,798 piezas, for the last five years—which is evidence of the infractions of law which have been committed in that commerce. Moreover, the proposition of the city that the duties belonging to the crown be levied on the number of the piezas, will be likely to prevent many of the frauds which are now practiced in this direction. The fiscal opposes the request of the city that the seamen be allowed an increase of the small amount already allowed them, free from duties, for investment on their own account, declaring that it will but increase the illegal trade already prevalent, and that the proposition to allow them 40,000 pesos’worth of trade (with twice that amount in returns for the merchandise) would allow the seamen a greater investment than even the citizens, since the former average only 115 men to each galleon. He advises that the officers of the ships be permitted to have a share in the lading of the ship, in place of their present wages; and that one large galleon be occupied in the trade to Acapulco, rather than two small ones. He reminds the king of the opening afforded by the trade between Manila and China for the conversion of the Chinese and the entrance of the gospel into that heathen empire.]80. [The treasury officials at Manila also write, seconding the proposal to despatch one large galleon; and they add that the royal exchequer of the islands will be ruined if the decree of 1720 is enforced, “for the commerce would cease, and consequently the royal duties which it was producing.”]81. The archbishop of Manila, the dean and cabildo of that church, and the provincial of the Society [of Jesus], in their letters of November 6, 7, and 8 of the same year, support the entreaty of the city; they deprecate the ruin (both spiritual and temporal) of the islands, and express the same opinion as that of the Audiencia and the fiscal, as will be seen by their letters, which follow below.82. The provincials of St. Dominic, St. Francis, and St. Augustine (both calced and discalced), in their memorials of the same year expatiate on the necessity and advantage of changing the aforesaid decree of 1720, and granting likewise to the islands the increase of the permitted trade which they solicit; and they reproduce in detail what the other prelates and ministers say.83. [The letter of the archbishop (Fray Franciscode la Cuesta) states that he has been urged to write it by the city and merchants of Manila, and the bureau of the Misericordia; and he begins, very naturally, by arguing that the religious interests of the Philippines and of China depend upon the maintenance of the commerce of the islands. He refers to the opposition made to it by the merchants of Andalusia, which he thinks has no good foundation, since their trade with the other European nations drains from España more money than does that of Filipinas from Nueva España—this last being their ground of complaint against the Manila trade; but even if the Sangleys and other heathen carry away silver from Manila, “they have not harmed the [Spanish] crown, and are friendly to the [Christian] religion; while it is certain that the European nations, even if they are not all opposed to religion, at least have been at various times hostile to the crown, and that the amount annually transported by the said nations to Great China and other heathen kingdoms exceeds four millions [of pesos].... And although the argument [of the Andalusians]—that the fabrics from China cause injury, at the expense of those which are transported from Cadiz—would have some weight if all the fabrics in which the Andalusians trade were manufactured in España, since they are not made there the above argument has very little value.” The Spaniards in Filipinas regret that so grievous burdens and restrictions are laid upon them through the influence of the Andalusians, and especially that the result of these must be very detrimental to the charitable funds which so greatly depend upon the Acapulco trade. Two-thirds of these, or 100,000 pesos, belong to theMisericordia alone, whose educational, religious, and charitable labors are so important to the public welfare and the maintenance of the Spanish colony in Filipinas; the remaining 50,000 pesos belong to other institutions. The archbishop therefore urges the king to accede to the requests of the Manila merchants.]84. [The dean and cabildo of the Manila cathedral also support the merchants; they fear lest the income of the church will suffer from the impaired condition to which the decree of 1720 threatens to bring the Filipinas colony. They adduce similar arguments to those contained in the preceding letters, all taking for granted that the prohibition of Chinese silks means the ruin of the Acapulco trade. Incidentally this letter states the following facts of interest: “The poverty of the soldiers is such that they always go about as mendicants and in need; for as they receive no more pay than that of two pesos and a fanega of rice—which is given every month to the soldiers, but to the convicts who serve [forzados] in the troops only the rations—if they could not find refuge in the aid given by the citizens, the alms from the charitable funds, and the broken food at the convent doors, and in what the more industrious can earn by doing errands, they would certainly perish.” The prebends of the cathedral find their salaries—which range from 500 to 200 pesos yearly, besides the dean’s 600—pitiably small and inadequate, and they must even resort to the charitable funds and to the gifts of friends to eke out their incomes. The same difficulties beset the parish ministers; but worst of all is the condition of the poor clerics who receive no pay, who have no income save occasionalofferings for masses and the alms of benevolent persons.]85. [The provincial of the Jesuits, Father Joseph Fernandez, seconds the appeal of the merchants.20He states that since 1709 the fortunes of the wealthy citizens are nearly all ruined—by calamities, unsuccessful sales at Acapulco, the failure of the galleons to make the voyage, poor crops in Filipinas, or the quarrels of the governors and auditors—and those who formerly made contributions to the religious orders now need and ask for help from them. “This city of Manila (and in it all the islands) is reduced to eight or ten private persons who are able with their own wealth alone to make up the 300,000 pesos which your Majesty allows for their commerce; and the number of its citizens who, as Spaniards, can call themselves such is very nearly 882—although it is true that there are millions of converted natives, and those who are not converted are innumerable. All these citizens depend for their preservation on the three or four piezas which are yearly allotted to [each of] them, according to their merits, in your Majesty’s galleon; and as most of them have not the means of their own to fill this space they have to give it up, or sell it to those who are richer; or they must ask for money from the charitable funds of the Misericordia, the tertiary Order [of St. Francis], or the religious, in order to fill their space on the ship. As they cannot ship therein anything except the coarse cloths and other goods which your Majesty names in your new regulations,the product of which is hardly enough to pay the expenses on them—duties, freight-charges, and carriers’ fees—the poorer citizens will see themselves forced to seek some other way [to make a living]. That means the desertion of these islands for India, and consequently a great diminution in the number of your Majesty’s vassals; and the islands will be exposed to the invasions of the Dutch and other enemies of your royal crown and of the natives. No few of these invasions have been experienced in recent years, and at this time we are being raided by the Mindanaos, the Joloans, and the Burneyans. And I can assure your Majesty that in the space of less than twelve years I have seen this stage21of the citizens of Manila changed five times. For, as it is composed of some who come from Europe (and they count for many), and of others who come from Nueva España, on account of the difference of the climate from that in which they were born they do not remain long; both classes, seeing the little comfort that they can find here, and how small incentive there is from riches (which is that which most influences those who do not possess enormous estates), either die in a short time, worn out with the misery of this country; or they leave the islands, to look for a more comfortable residence. Thus it comes to pass that only we religious and other ecclesiastics remain, with some persons who belong to the richer class (who are few), and these are Europeans, whom affection for their native land is always drawing away. If this [which I have mentioned above] happens (which may God not permit),all these millions of Christian natives will be left abandoned, and exposed to [the danger of] returning to their heathen condition; and of being possessed by the Dutch, or the Chinese, or any other nation that may find a profit in them.” The argument that the prohibition of the trade in Chinese silks will check the drain of silver from Nueva España is refuted by the provincial; he says, “For we who are near China, Batabia, the Coromandel Coast, and other ports of India, know with certainty that the ships and pataches that come to them from Europa to trade in them carry hardly any money for their traffic except the silver, with the stamp and seal of your Majesty, from Perù or from Mexico; and as those vessels have directed their route from Europa by way of Cape Verde, Buena Esperanza [i.e., Good Hope], Cape Comorin, and Sincapura, it must be supposed that they do not obtain the said silver anywhere else than from the commerce in Europa. Your Majesty could, in the course of several years, prevent the silver that comes from Mexico to these islands from passing over to China, to the Coast, or to Batabia, by commanding your governors and other officials at Manila to make strenuous effortsthat in the islands the natives, mestizos, creoles, and various other castes who live in them and are naturalized as subjects, be compelled to weave the cloth goods which are manufactured in other regions; and these people are no less skilful for the mechanical and even the liberal arts than are those of other nations. As for the fabrics of cotton, these people are able to weave them, for their own consumption, more durable and of better quality than the cloths which come from China and theCoast; and as for the silk goods, the hose which these natives weave are those which bring the highest price at Acapulco. The colors for dyeing the goods are furnished by the country itself; for there will be shipped from hereto the empire of China during this year more than thirty champan-loads of sibucao, or campeche, a wood from which the Chinese obtain carmine for their dyes; and the other colors they obtain from trees and roots which also are found in these mountains in abundance. As for the cinnamon, it grows very abundantly in the island of Mindanao, where your Majesty has the fort and garrison of Samboangan, with some missions that are administered by priests of my order, and by other religious from the discalced of St. Augustine. It would be of no little advantage to be able to cultivate the cinnamon, as the Dutch do; for the silver which that nation would be obliged to carry for that product would remain among the vassals of your Majesty, and thus there would be an end to that difficulty (which the merchants of Sevilla certainly exaggerate) of your Majesty forbidding the shipment of the goods which your royal decree specifies, which are those that have some value, in order to be able to pay the cost on the more bulky goods. Who will have courage to weave them, or hunt for them, when he knows that he must lose on them? In these islands abundance of gold is collected in various placers, in which work the slow and patient disposition of the natives is occupied; but as their minds are so careless and ignorant they content themselves with washing out only the exact amount of their tribute, which is five reals for each person. But if your Majesty would give your royal directions toyour governors and ministers, in the course of time it would be possible to secure the production of this gold in abundance; and if it were sent to Nueva España, and exchanged for the silver necessary for the maintenance of these your wretched vassals, the result would be that the latter product would always remain in the dominions of your Majesty. In these islands, also, some pearls are secured by diving, and in these seas some amber is gathered. In the mountains there is no lack of numerous civet-cats; and the civet, if measures were taken for its production, might be no small source of wealth to your vassals, and consequently furnish huge amounts to your loyal treasury.” Father Fernandez mentions that Felipe IV “spent in twenty years 170,000 ducados solely in sending religious to preach the gospel in Philipinas;” and that the monopoly on the buyo industry had produced in one year 11,000 pesos to the royal treasury, and that on wine 18,000 pesos; (but these amounts apparently refer to the price paid for a three years’ contract, rather than to the annual income of the crown from these sources).22]86. All the papers and reports which have been mentioned in this “Period vii” having been received in the Council, and the deputies from Philipinas, Don Francisco Diaz Romero and Don Antonio de Echandía—who deposited their credentials and letters in the office of the secretary—having presented themselves in it, they set forth their claims and stated, in a printed memorial (which they handed in on June 14, 1723) the injuries which the islands were receiving from the practice of the decree of October27, 1720. They entreated that its execution be suspended, and orders given that the commerce be continued with the yearly galleon in the same manner, so far as the lading was concerned, as was in use at the time when the aforesaid despatch was received there [at Manila]. The memorial, in eight leaves, is as follows:87. [This memorial by the city and merchants of Manila presents in detail the amount of their annual commerce in the various kinds of merchandise that are permitted in the decree. The gold exported from Filipinas to Nueva España amounts to less than 12,000 pesos, and is sent not as bullion or coin, but in the form of the slender chains [bejuquillos] wrought by the Malay natives for personal adornment; for in no other form could it compete with the abundance of gold mined in Mexico. The Chinese porcelain is shipped in small quantity, being mainly an article of luxury, like the gold ornaments; moreover, it is bulky and fragile. As for spices, Manila complains that the market for these in Nueva España is already appropriated by the merchants of España who send spices in the trading-fleets to Vera Cruz; in the fleet (of seventeen vessels) commanded by Don Fernando Chacón was carried the enormous amount of 170,737 libras of cinnamon, and more than 70,986 of pepper and cloves, besides various bags and chests of all these kinds of spice the weight of which was not noted. The only products of the islands which have commercial value in Nueva España are wax, lampotes, Ilocos blankets, and cordage; and the value of all that is exported of these, even counting with them the previously mentioned gold chains, does not gobeyond 30,000 pesos. The linen goods have hitherto been shipped from Manila to Acapulco only to fill in empty spaces in the allotments of lading, and have amounted to hardly 60,000 pesos, on which very little profit was obtained. If the main part of the galleon’s cargo has to be composed of these linens, the Acapulco market will be overstocked with them, and the prices there will be so low that Manila cannot afford to send another cargo of this sort. Moreover, as these goods are procured from the foreign factories at Batavia, Madrasta, Patàn, Punticheri, and Vengala, as soon as the traders at those posts understand that the Manila galleons must carry most of their lading in goods to be procured at those factories they will advance their prices enormously, and the galleon will be compelled to sail in ballast, and then only to procure the situado. The floss and raw silk which is the only form of that product permitted to Manila is so bulky a commodity, and the consumption of it in Nueva España is so small, that it too has been shipped only to fill up space; moreover, “for several years it has been increasing in cost, on account of the great amount of it which the Dutch, English, and French obtain from China for the fabrics which are manufactured in Europe.” The deputies, to substantiate their statements, refer to the official reports of the viceroys of Nueva España, and offer to bring forward evidence in their favor from various persons at Madrid who have resided in Filipinas. They claim that the Manila trade in silken fabrics has not harmed the merchants of España, since the silk which is produced in that country is hardly sufficient to supply the home demand, and it is necessary to bring to it foreign silks—exporting toNueva España some goods which have little demand in España; but even these do not occupy one hundred and twenty-five toneladas of space. The greater part of the silk goods woven in España are silks and velvets, and if the value of these has fallen, it is not the importation of Chinese goods which has caused this, but the change in the style of magistrates’ robes,23in which those goods are used, and the small amount of them that is used in the military service. “Just as in these kingdoms [of España] most of the persons of rank are clothed in no other fabrics than those which come from foreign countries on account of either their better quality or their luster—so the same thing occurs in Nueva España, where they follow in everything the customs of Europa; and for this reason most of the silken fabrics which are carried thither in the trading-fleets are from the kingdoms of Inglaterra and Francia, and the provinces of Holanda—as silver and gold tissues, brocades and laces of the same sort; hose, and other stuffs, the sale of which does not injure that of the Chinese silks, on account of the greater value placed upon the former. Therefore, as the silken fabrics which the aforesaid shippers carry [to Nueva España] are not all from the mills of España, but these Spanish silks are in very small quantity and of the sort which are rejected here, it is evident that the injury is not to the commerce of Andalucia, but to the foreign nations. For, since all the gold and silverwhich comes [to España] is carried in trading-fleets and galleons—except what is obtained for wines, brandies, oil, and other products—the slender profits which the traders of Philipinas gain from the sale of the Chinese fabrics will also be given up for their benefit by the foreigners on account of the abundance of the products from their own mills which they will ship to Cadiz, in order that these may be carried to the Indias.” The argument is repeated, that most of the profits in the Acapulco trade must go to European foreigners, if it is restricted to the few and unimportant products of the islands, and thus the enemies of España are strengthened; while if the Chinese trade is allowed those profits fall into the hands of people who cannot and will not injure the Spanish power. The enforcement of the decree will injure not only the citizens of Manila, but the revenues of the crown, which amount annually to an average of 228,557 pesos, besides the duties produced by the Acapulco trade, which amount to 250,000 pesos more. The treasury will have no means to buy the rice of the Indians, their only valuable product; the Sangleys will have no occasion to trade at Manila, which will lose the amount of their licenses (more than 23,000 pesos), besides the import duties and alcabalas which they pay there, which amount to more than 37,000 pesos; and the situado sent to both the Philippines and Marianas must be taken from the Mexican treasury directly, which will be too heavy a burden for it. The king is reminded of the poverty of the Philippines in all natural resources save rice, and their dependence on the Acapulco traffic for money, clothing, and all other needs save that of food. The recent building of twosmall galleons has caused the treasury a great amount of expense, quite disproportionate to that of the one large vessel which hitherto had been used for the Acapulco trade—to say nothing of the extra expense caused by the duplication of crews, officers, and soldiers which is thus rendered necessary. The smaller ships are less able to resist either storms or pirates, and the few experienced seamen in the islands must be divided between them, when they should be massed in one vessel. Again is mentioned the dependence of the missions, and the conversion of the heathen, upon the Acapulco trade; the Indian villages that are more or less christianized now number 457, with 111,683 families, who are in danger of relapsing into heathenism, or being converted to Mahometanism, if the missions cannot be kept up.]88. The Council, on June 14, 1723, agreed that this memorial should go to the fiscal with all those that came before, with the letters of the Audiencia, officials, and prelates which had been laid before the Council on the twelfth of the same month.89. The consulate of Cadiz, by a memorial presented in the Council on the twenty-first of the same month and year-being informed of the petition from Manila requesting that changes be made in the decree issued on October 27, 1720—asked the Council to order that the argument recently brought forward by Manila in regard to this be communicated to them; this having been referred to the fiscal, he was of opinion that the aforesaid document should be communicated to the consulate, as had been done in the year 1720 by order of his Majesty; and the Council agreed to this by a decree of July 12, 1723.90–92. [On September 4 following, a conferencewas held by the representatives of the commerce of Sevilla, to consider the question of the Philippine commerce in Chinese silks and the royal decree forbidding that trade; a copy of the memorial sent from Manila, and other documents bearing thereon, were submitted to that body by the consulate of Cadiz, who had already taken action thereon, and now asked for the support and coöperation of the Sevilla merchants. In a formal resolution by the latter, they express their entire concurrence with the views of Cadiz, and request the king to enforce the decree of 1720. They make light of the statement regarding the great amount of spices carried to Nueva España by Chacón’s fleet, and intimate the probability that the remonstrance by Manila is really instigated by the traders of Nueva España, who, on account of the enormous profits which they make by sending money to the Philippines for investment, must be most affected by the proposed restrictions on the Manila commerce. Sevilla answers the argument of Manila that only one hundred and twenty-live toneladas of Spanish silks are sent to Nueva España, by declaring that even that small amount will soon be reduced to nothing unless the king strictly prohibit the introduction by the Filipinas ships into Nueva España of fabrics woven of silk and gold or silver; also that the silk-mills of España will be ruined and abandoned, and consequently the cities of that country will be inundated with poor people and criminals. On the day before this conference, a similar one was held by the consulate of Cadiz and representatives from the merchants of that city, who made a vigorous remonstrance against the injuries caused to Spanish commerce and industry by the Manila-Acapulcotrade, and especially by the frauds and the infractions of law therein, on which they expatiated in the above conference. In the report drawn up by them they mention several of these. For instance, the merchants of the City of Mexico sent large sums of money to Acapulco for preparing the Manila galleon for its voyage; “and in the three months during which the ship was detained at that port it unloaded an enormous cargo, held its fair, and returned laden with silver, without wintering in that kingdom, on account of the easy and prompt disposal of all that it carried. This cargo was usually 10,000 or 12,000 bales, half of silken fabrics and half of linen goods, [lencería], the proceeds from which reached four millions of pesos; and all this in pesos, eight-real and four-real pieces, since in exchange for the said goods they did not desire or carry any produce, nor even doubloons, nor bars of silver, for all must be new pesos and of Mexican coinage, these being the coins which are current in Turquìa, to which country they were going, since the greater part of the said goods come thence.” Reliable witnesses have told of mule-trains entering Mexico laden with Chinese stuffs, which must amount to almost the value of the goods carried by the eighteen vessels in the trading-fleet which that year came from Spain under Don Manuel de Velasco; and the market of the latter was ruined by the former. “Although the silk fabrics which the ships bring from Philipinas have not the quality or durability of those from España, and the linen goods are all of cotton, and do not last half as long as do those from France, yet as the former are sold cheap, and have a good surface, and are showy, while they last the commerce of España ischecked and suspended.” The merchants of Mexico send so much money to Acapulco that not enough is left to send the trading-fleets back to Spain, which are compelled to winter at Vera Cruz in order to obtain the proceeds of their cargoes and equip the vessels for the return voyage. “So sweeping and irreparable is the great injury which these goods from China, or from the Turks (which is the more certain), cause to the most important cities of España that when the said ship was not allowed to carry those goods Sevilla had more than 12,000 looms for the manufacture of silks of every kind; and with these, even without other stuffs, so great a number of people were employed on them, and so great was the opulence of that city and of all its domain, as is made evident by the great services which on all occasions Sevilla rendered to his Majesty, with sumptuous buildings—churches, hospitals, government buildings, and private houses. But without greater casualty than that of the importations in the ships from China, that city found itself in a straitened and miserable condition, not two hundred looms being left in it, on account of there being no consumption for its fabrics; and the great mass of poor people, who then supported themselves by their labor, are now miserably perishing. No less proof is afforded by what is occurring in Granada; for there more than 12,000 looms were employed only on taffetas (both double and plain), satins, plushes, and all kinds of silk-weaving; and more than 50,000 persons, men and women, were engaged in the industry and labor of making silk goods. For this reason, the amount of silk worked up each year was more than 180,000 libras, from which proceeded considerableprofits to the royal exchequer, for the duty on each libra amounted to thirteen reals and three cuartillos; but, with the one but sufficient reason of the importations of Chinese goods, [that industry] has so fallen away that the amount of silk sold in that city at each gathering of silk does not reach 40,000 libras, and the number of looms operated, on coarse stuffs, is less than 2,000—a similar condition to those of Sevilla.... The same troubles are suffered by Cordova, Jaen, Ezija, Priego, and Alcalà la Real, with many other places which in both the Andalucias were growing and being maintained by the said manufactures. It is not less worthy of attention that the silk-growers of the aforesaid kingdoms of Sevilla, Granada, Cordova, and Murcia are, for lack of sale for the silk that they produce, giving up the cultivation of the mulberry-trees, and abandoning their farms and the places where they dwell.” Cadiz cites the action of Conde de Monclova, viceroy of Peru, who prohibited the shipment of Chinese goods from Acapulco to South America, making them contraband and confiscable, recognizing “their poor quality and lack of durability, and the great detriment which this trade caused to the merchants [of Peru], who go down to Portovelo to hold the fair [at the arrival] of the galleons, which has been the greatest in the world;” and urges the king to enforce strictly the decree of 1720. Such action would greatly benefit the realms of Spain, and would not cause injury to the Philippines, because none of the said Chinese stuffs are made in the islands; “and the only ones who could grieve over it are the Turk, and other princes of Assia, Mahometans, and enemies of our holy Catholic faith.” Asfor the complaint of Manila that the propagation of that faith depends on the silk trade, Cadiz refuses to believe this, and refers the king to a document in Manila which refutes that notion. This is “a memorial or report made by a minister of that Audiencia, N. Calderòn, in which is inserted another, written by Father Fray Victorio Ricci,24of the Order of Preachers, who was for many years a missionary in the empire of China, and afterward in the Philipinas Islands; it was sent by the Supreme Inquisition to its commissary in the islands, in order that he might send to his Majesty information on the points therein.... In these papers it will be clearly evident that the progress and propagation of the faith is not diminished by depriving the islands or the kingdoms adjacent to them of the commerce prohibited to them, or by the restriction which his Majesty has laid on it;” the above prohibition, therefore, is not the cause of the ruin of the citizens of Filipinas.]93–94. [These replies by the merchants of Andalusia call forth another memorial from the Manila deputies, which occupies fourteen printed sheets. They repeat their former arguments, enforcing them by reference to the despatches from the Audiencia of Manila, the archbishop, and the various religious bodies there, and still more to the letters previously addressed to the king by the viceroys of Nueva España; and they adduce various instances from the history of the Manila-Acapulco trade to the same effect. They also undertake to refute the chargesmade by the merchants of Sevilla and Cadiz, and claim that the latter have misrepresented certain facts. We note here some points made by the Manila envoys, as giving new information on the matter at issue. They say that the maintenance of Filipinas, including the missions and military posts, costs the Spanish crown annually 515,568 pesos, for which sum the royal treasury of Mexico should be responsible, according to the laws of the Indias; but it sends thither only 40,000 pesos in money and some 60,000 in goods, and even this remittance comes from the duties which the Manila galleon pays at Acapulco. But in 1637 and for some years later, the situado sent to the islands amounted to more than 325,000 pesos in money, and enough goods to make up the 500,000 pesos. This, however, was largely the result of the failure of the Manila merchants to ship goods to Mexico, a proceeding caused by the undue harshness and severity of the royal visitor Pedro de Quiroga;25but it led to the abolition (by royal decree of September 3, 1639) of the restriction on the kinds of goods permitted to Manila, only limiting the amount of their investments. It is strange that Manila has pursued this commerce for one hundred and forty years without any protest from Andalusia until now; the decadence of the latter is due rather to lack of economy in the use of their wealth than to the competition of Filipinas; and Andalusia has always encountered trouble, since the persons interested in the greater part of the lading of the galleons and fleets have been and are foreigners—French, English, and Dutch. Andalusia claims that thegalleon unlades at Acapulco more than 12,000 piezas, half of them containing silk goods; but the certificates of the royal officials show that in the ten years from 1710 to 1720 the total number of piezas (in ten galleons) was 36,895, including therein the 4,299 half-chests in which the silk goods were shipped—making the average lading of each galleon only 3,660 piezas. The detention of Velasco’s fleet was not due to the arrival of the Manila galleon, but to other causes. The fleet of 1698, in charge of General Mascarùa, was sent lightly laden, and in 1699 Velasco’s fleet followed it, but encountered the other at Vera Cruz; the presence of the two large fleets at one time, and the ravages of yellow fever [bomito negro,i.e., “black vomit”] at that port, rendered it impossible to sell the goods to advantage, to transport them to Mexico, or to equip the vessels for the return voyage. When Velasco could set out for Spain, he received news of the death of Carlos II, and the danger of war between Spain and other powers, which made the merchants unwilling to risk their property on the seas at that time. Finally the Spanish fleet was escorted to Spain by a French squadron of warships, but on reaching Vigo was attacked by an English and Dutch fleet, which inflicted considerable loss on the Spaniards. Moreover, the trading-fleets sent from Spain to Nueva España are nearly twice as large in the last few years as they used to be, which overstocks the colonial markets with goods. Manila claims that the decadence of the silk industry in Andalusia is due to the pest which ravaged that province (with especial mortality in Sevilla) in the middle of the past century; and that part of the remaining population had emigrated toMurcia and Valencia, where they had cultivated mulberry-trees and built up the manufacture of silk goods. Another reason assigned by some writers for the decrease of prosperity in Andalusia was the imposition, at that time, of heavy war-taxes. As early as 1666, the city and the merchants of Sevilla had represented to the crown “their lamentable condition, and the ruin of their looms, caused by the imposition of the millones26and the concourse of foreigners to Cadiz to introduce their own merchandise.” This led to a resolution by the royal Council that the decree of January 25, 1661, should be enforced, which provided thatthe custom-house and collection of duties for the Indias should be withdrawn from Cadiz, and that the galleons and fleets should take on their lading in the river of Sevilla and the port of San Lucar. As for the stuffs from foreign countries which, it is alleged, are brought to España and crowd out the manufactures of that country, these are only the fabrics which the more industrious French, English, and Dutch make with the raw material, both wool and silk, which España exports. In 1696 Sevilla complained to the king of the injury which it was experiencing from the importation of foreign goods, but did not mention the Chinese stuffs among these. “In Madrid and Valencia the manufacturers are at present complainingthat the price of silk has risen very high, not because the crop [that is raised in España] is not an abundant one, so much as on account of the so great export, not only from that kingdom but from otherregions, to foreign countries, that which the French alone have bought this year amounting to more than 300,000 doubloons; and if asked about this, any dealer in these goods or any official will answer with entire candor, without blaming the commerce of Manila.” The foreigners bring back these silk goods to España, in order to supply with them not only that country but the Indias, through the fleets and galleons; “and this is what the consulate [of Cadiz] is defending, in order that these goods may, by not introducing into Mexico those from China, be sold [there] with a higher reputation.” The highest authorities all concur in the statement that the Spanish silks sent to Nueva España do not amount to one hundred and twenty-five toneladas. The statement that the Manila galleon carries from that country 4,000,000 pesos is unwarranted; the only possible ground for it is that in 1717 the viceroy allowed the galleon to carry to Manila 2,000,000 pesos, because for three years past no money had been sent to the islands—on account of poor sales at Acapulco, a galleon forced back to the islands by storms, etc.—on condition that the king’s ten per cent be paid on that amount. In other years the amount of money illegally shipped has been very small. Cadiz has alleged that money has been scarce there for some years; but Manila declares thatfrom December, 1720 to July, 1723 over 40,000,000 pesos worth of gold and silver, in coin and bullion, has been landed at Cadiz, without including the value of the other products of the Indias. Cadiz asserts that the money obtained from Nueva España goes to the Turks, the enemies of the Catholic faith; but the Spanish merchants are continually furnishing moneyto other enemies of the faith, the English and Dutch. Moreover, the commodities which the Manila galleon carries are not obtained from the Turks, but (through the European factories) from Indostan, Tunquin, Lao, China, Japon, and the Philippine Islands; while Manila is not even permitted to trade with Arabia and Persia, whose products are carried to the ports of the Levant, and at those fairs the traders from all the European nations buy those goods, with money which has come from the Indias. Manila declares that the trading-fleets carry to Vera Cruz no Spanish products save wines, brandies, oil, raisins, and almonds, and the previously-mentioned small amount of silk goods; all else in their cargoes is of foreign make. The spices which the decree of 1720 allows to the islands will not suffice to pay the expenses of the voyage, especially when Manila must compete with the trading-fleets from Spain in the shipment of these products. The collection of royal duties on goods is regulated by “cubic palmos in accordance with the measurement of the bales [frangotes] and piezas which are shipped.” As for the memorial by Calderòn, Manila asserts that it does not bear on the present question; that auditor, in the time of Governor Curuzalaegui (in which occurred an uprising of the Sangleys), sent a letter to the king remonstrating against the liberty given to the Chinese, and advising that they be not allowed to have intercourse with the Indian natives, or even to live in the Parián. This tolerance had been extended to them for the sake of attracting them to the Christian faith, but Calderòn regarded it as no longer necessary, since they had, even then, a number of Christian missionaries in their own country. In hisletter, he cited Father Ricci in support of some of his statements. While the Spanish silks sent to Nueva España amount to only one hundred and twenty-five toneladas, those of foreign make sent thither from Spanish ports are more than a thousand toneladas. The French, English, and Dutch trade at Canton, where the main part of their commerce is in raw silk.]95–96. [The above memorial was referred by the Council to the fiscal, on October 6, 1723; and on December 22 following, a printed answer to both of those by Manila was placed before the Council by the consulate and merchants of Cadiz. They remind the king that when Filipinas was first discovered the ships brought back to España abundance of gold, pearl, amber, civet, wax, and fabrics of Ilocos; and for some time afterward these and many other valuable products were exported from Manila, which became the emporium of both Eastern and Western India. In those early times, when so much zeal and energy for the conversion of the heathen was displayed, it was not necessary to the missions to depend upon the trade in Chinese silks; but, for the sake of benefiting the natives of the islands, and to check the drain of silver to foreign nations, the Spanish government (by decrees of 1589 and 1596) authorized the barter and exchange of the products of Filipinas for those of China, under the system calledpancada. But Manila has distorted this into the assumption that the Chinese trade was intended for the maintenance of the Spanish colony in Filipinas, and that it was to be without restriction, save in its amount—although, as a fact, the trade in silk fabrics of China was not introduced until many yearslater. The system of distributing the commerce among the citizens of Manila replaced the earlier pancada, and led to such abuses that Felipe III attempted to check them by a severe decree (1620); and later enactments placed the Acapulco commerce on such footing that it flourished greatly, to the mutual advantage of Filipinas and Nueva España, and to the enrichment of Manila and its citizens. That commerce benefited the poor citizen as well as the rich; but the trade in silks is only for the benefit of the wealthy merchant and the rich consumer, as they are articles of luxury. The earlier commerce of Manila also supported and stimulated the consumption of Spanish silks in Nueva España and Peru, and the silk industry flourished in the mother-country; but the later introduction of Chinese silks into the American colonies, and the frauds and excess connected with this trade, have ruined the silk industry on both sides of the Atlantic, and even impaired the prosperity of Manila. Cadiz claims that the merchants of Mexico have committed many frauds, and transgressed the ordinances, and prevented the execution of these, in regard to the Manila trade, and do so with the collusion and aid of the officials: for instance, the galleon “Nuestra Señora del Rosario” arrived at Acapulco on January 11, 1699, and the Manila citizens attempted to compound the duties on the cargo for 100,000 pesos; but the royal fiscal opposed this, showing that the ship had brought 6,754 piezas of lading, without counting a considerable quantity of pepper and other goods outside of the registration. It was also found that although the law restricted the entire cargo to the value of 250,000 pesos, and its ownership to the citizens of Manila,this vessel contained goods to the amount of 233,966 pesos which belonged to the citizens of Puebla alone, and it was estimated that it must contain at least a million pesos’ worth of goods belonging to merchants in the City of Mexico. The Mexican government compelled the payment on these goods of duties amounting to 50,000 pesos more, and would have investigated the whole matter, to ascertain the exact amount of the illegal shipments; but the commercial interests of Mexico exerted such influence against this that the Audiencia desisted from the undertaking. Again Cadiz accuses the importation of Chinese silks into Nueva España of having ruined the silk industry in España; although those goods are so thin and poor that they are worn out even before the Manila galleon leaves Acapulco, they are so cheap and showy that they undersell the better goods from España even competing with the latter in Vera Cruz, where the Chinese goods are purchased by the traders of Habana, Puerto Rico, Cartagena, and other Spanish colonies; and all this is overlooked by the Spanish officials in high places, because they profit by this illegal traffic. If the king will prohibit the importation of silk woven with silver and gold, and “check the hand which Mexico moves at the command of Manila,” the silk industry will be revived in España, its people will be kept from idleness and poverty, and foreign countries will no longer drain its resources. Cadiz desires Manila to content itself with the spice-trade, which is a staple and profitable line of commerce, and which Manila can carry on more cheaply and promptly than Spanish merchants can; the spices sent from España onChacón’sfleet were needed to supply the scarcity ofthem at that time, as the Manila trade had been interrupted temporarily; but if the latter be regular, such shipment from España could not occur again. From the year 1690, the indult ran from 50,000 to 74,000 pesos, on the basis of the 250,000 pesos allowed to the Manila trade; but it is evident that the duties ought now to amount to above 500,000 pesos, on the enormous quantities of Chinese silks that the galleon of 1,000 toneladas carries.]97–105. [This memorial, with like protests from the cities of Toledo, Ezija, and Murcia, was sent to the fiscal, who on March 16, 1724, handed in his opinion on the question at issue—that is, whether the decree of 1720 should be changed or enforced. He lays down three propositions: First, that the trade in Chinese stuffs should not be prohibited to the citizens of Filipinas, since it is necessary to their maintenance, those islands having no profitable mines or commercial products; moreover, the introduction and propagation of the Catholic faith therein is an obligation of justice as well as of religious zeal, and was so recognized by Felipe II, when he refused to abandon Filipinas; and to fulfil this obligation the Spanish colony there should be sustained. For this purpose the trade with Nueva España had been granted to Manila, to such extent as should be necessary for its preservation, that is, to the amount of 250,000 pesos, and 500,000 in returns; and in the permission given to Manila to trade with China there had been, and should be, no restriction as to the woven silks of that country. Second, this trade ought, nevertheless, to be strictly confined to the amount of their permission, and all frauds to be prevented; for the complaints of Spanish producersand merchants had been caused by the frauds and abuses in the Manila trade, rather than by the mere fact of its including Chinese goods; the fiscal even suggests that they have an official representative at Acapulco to aid in the unlading and inspection of the Manila galleon, and report thereon to the viceroy, which would aid in preventing frauds and enable the Spanish merchants to discuss the question more intelligently. Third, that in case the trade in Chinese silks be prohibited to Manila, that in spices should be absolutely prohibited to the Spanish merchants and given exclusively to those of Filipinas; while the American trade in silks should be free to the Spaniards.]106–111. [The Council considered this question on April 6, and decided that the decree of 1720 should be changed; they recommended that the Filipinas trade be continued as before the decree, and employing but one large galleon; that the decree of 1702 should be enforced, save that the goods should be valued not by actual inspection of the bales but by invoices presented by the shippers, with their sworn statements that the goods were their own; nor should any indult, payment of double duties, or other form of composition be tolerated; and that the royal officials at Manila, Cavite, Acapulco, and Mexico should be held responsible for the fulfilment of these regulations, under severe penalties. This proceeding was approved by the king, who issued despatches in accordance therewith (June 17, 1724) to the viceroy of Nueva España and other officials concerned therein; and on August 8 the merchants of Cadiz were invited to nominate a deputy to watch the Acapulco commerce.]

71. On August 2, 1722, the governor, Marqués de Torre-Campo, received at Manila the ordinance despatched on October 27, 1720, of which the preceding “Period” speaks. Having caused this decree to be published by a proclamation in that city, record of it was made in the offices, and it was communicated to the municipal council in open session. The cabildo protested against it, promising to obey, but resolving to set forth to the governor in the first place, and afterward to his Majesty, the damages and troubles which would result from its execution to religion, to the royal treasury, and to the greater welfare of those islands, from their not continuing to enjoy the permission to trade in fabrics of silk, which they had possessed for more than one hundred and forty years. They would therefore be obliged to entreat that his Majesty give them permission to retire, with their families, to the lands and domains of his Majesty which they should consider most suitable.

72. In a long memorial presented to the governor was set forth in detail the motives on which they based this action; and when orders had been given that the fiscal of that Audiencia should examine it, although he recognized that their statements were correct, and that the islands could not maintain themselves on the system of commerce which had been laid down, he demanded that orders should be givento fulfil the cited royal decree, and that the city and merchants should appeal to his Majesty who, there was reason to expect, would take care of his vassals there, and of the interests, both spiritual and temporal, which were concerned in it—and the governor gave orders to that effect. Although the city and the merchants by a second memorial insisted upon a suspension of the above regulation, demanding that, in case there was no room for it and for continuing their trade in silks and stuffs as heretofore, at least he should declare that they were not obliged to invest their funds in the commodities which were prescribed to them, as it would occasion their total ruin (and they demonstrated this): nevertheless, the governor, bearing in mind that the damages to his Majesty would be no less, if the galleon for that year should go empty, commanded that, in accordance with the amount permitted by the cited regulation, they should make the distribution of the [permits to ship] merchandise as his Majesty had commanded. The city and the merchants, with the hope that his Majesty would give attention to the urgent representations that would be made by the commissaries whom it had been agreed to despatch to the court, agreed to continue the commerce meanwhile conformably to the despatch of 1720—sacrificing out of respect to his Majesty, and in order to maintain the religion established in those islands, their own wealth, which necessarily must be ruined and lost in a commerce so useless and unfortunate as that to which they were reduced; since the bulky commodities, on account of their abundance and poor manufacture, would not allow them to gain ten per cent, since the risks extended to fifty per cent.

73. The city of Manila, in order to render commendable and frame in more formal manner its appeal from the aforesaid decree of October 27, 1720, which it must bring before the royal person—not only for the continuation of the traffic in the silken fabrics, but also for the increase of its permission from the three hundred thousand pesos which it was enjoying to five hundred thousand—came before the Audiencia and presented before it the arguments and reasons in favor of both these requests. After explaining the losses that would arise from the desolation and depopulation to which the islands would come (which the Audiencia took into consideration in its memorial, as will be noted) the city added that when in Manila there were only 230 citizens (which was in the years 1636–37) returns of 500,000 pesos were permitted to them; but since in the year 1722 the city had 882 citizens, and there was an increase in the charitable foundations, which placed 150,000 pesos at risk on each galleon, the necessity was evident of increasing the permission to 500,000 pesos—350,000 pesos for the citizens, and 150,000 for the charitable foundations. This increase in the number of citizens made necessary the expansion of the permission, from the very fact that in the year 1702, in which there were only 400 citizens, his Majesty had permitted 300,000 pesos of investments, and 600,000 pesos in returns.

74. It was also expedient that permission be given to the seamen to transport in their own chests goods up to the amount of 40,000 pesos of investment, on account of the importance of interesting them in the defense,15and in order to facilitate that in provincesso remote there should be Spaniards who would serve as artillerists and seamen, since their wages alone, in voyages so arduous and long, could not be sufficient incentive. In order that that commerce might be regulated and infractions regarding the lading be avoided, an arrangement was proposed to his Majesty in which the annual investment was reduced to 3,200 piezas of the regular sizes—half-bundles, bags, sacks, [churlos,balsas(forbolsas)] cakes of wax, and other like packages of bulky commodities, and three hundred half-chests of goods from China, in order to supplement the said 3,20016piezas. Consequently, at the despatch of the galleon there would be nothing else to do except to distribute the said piezas and issue the permits for its lading—collecting 10,000 pesos for the royal duties, at the rate of two per cent, for this purpose rating the 3,200 piezas at 128 pesos and 1 tomin, and the half-chests at 300 pesos and pay at Acapulco thirteen per cent, regulating the 3,200 piezas at 256 pesos and 2 tomìns, and the 300 half-chests at 600 pesos each. This would result in the royal duties at both ports amounting to 140,000 pesos, and in return would be brought back, for the account of the permission, a million pesos; and thus would be avoided sworn declarations, and other dubious measures to which the previous regulations were subjected.

75. The Audiencia of Manila in a letter of November 9, 1722, taking into consideration another which they had written on August 6, 1713, in whichthey set forth the losses which that commerce had suffered—in [the wreck of] their galleons, the unsuccessful fairs of Acapulco, and the excessive pecuniary extortions that they had suffered in Acapulco on account of the royal duties and in other ways—to the end that new measures might be taken by his Majesty for the rigorous reëstablishment of the commerce of those islands, describe (influenced by the urgent representations made by the city and by previous information obtained by each auditor) the affliction which has been caused by the new decree of October 27, 1720. They declared that they judged necessary for the maintenance of these islands and the propagation of the holy gospel, not only the permission for the silk and the stuffs prohibited by the cited despatch, but also the increase of the permission from 300,000 to 500,000 pesos. The Audiencia affirmed that the Spaniards could not exist without this commerce, because the culture of the fields was in the hands of the natives and the management of the guilds [gremios] in those of the Sangleys and their mestizos; that the salaries and pay with which the military officers, soldiers, and civil officials were recompensed did not reach half the annual expense of their families, in consideration of which it was commanded to include then the distribution of the lading of the galleons; and that, while the permitted amount was 300,000 pesos, and the number of citizens so great, the investment of each one, even if all were alike in wealth and services, did not amount to 400 pesos, the profit on which was not enough for the proper support of a man who was not actually poor, and on this account they could not increase their wealth. When the Europeans see that it is useless to transport goodsto those regions where there is not, outside of commerce, any motive which would induce them to remain, or which would bring other new traders, those who consider the matter have reason to fear that in a few years the capitals of those who live there will be consumed, and that others will refuse to enter into the same experience; then Philipinas will be left to the Indians and Sangleys, the gospel ministers without the guards of Spaniards for their protection, the military posts without garrisons, the natives without any control, and everything on the blink of a deplorable ruin.

76. That with the commodities which were allowed by the said royal decree, the lading of the annual galleon could not reach the gross amount of the 300,000 pesos of the commission. From this it resulted that that amount was diminished and the traders exposed to evident loss in Nueva España, on account of the abundance of those very articles of merchandise; and that would result in cutting off the proceeds of the many and large charitable funds, founded on the merchandise risked in those galleons, for the support of clergymen, hospitals, convents, divine worship, dowries to orphan girls, and many other alms—which, even though they were no more than those which were administered by the brotherhood of La Misericordia, and by the tertiary Order of St. Francis, were of the greatest importance, and their failure a most notable affliction to all the islands.

77. That by the exclusion of the stuffs and silks, which were the principal articles of commerce of the islands with China, all that commerce [i.e., with Nueva España] would come to an end, since all the rest was of so little value that it could not, withoutthe substantial aid of the silks, allow any profit. From this would result another great difficulty in the propagation of the holy gospel, that if the Chinese do not come to the trade they will lose the opportunity for conversion which so many have attained, attracted by familiar intercourse with the Spaniards, with the occasion of this commerce, and there would be great difficulty in introducing the gospel ministers into those dominions; and these are motives which have always engaged the chief attention of his Majesty, to judge by the laws. The Audiencia concluded by expressing the opinion thatthe prohibition of the silks should be removed, and an increase be granted in the permission to 500,000 pesos, with the number of piezas which the city was proposing—this regulation being made in proportion to the number of citizens, in order that the islands might maintain themselves, and thus obviate the serious inconveniences that were experienced; and, as for the duties which the city proposed, this question was referred to the decision of the Council.

78. The fiscal of that Audiencia, Don Pedro Bedoya,17in a letter of November 15, in the same year, 1722, in consequence of the duplicate copy which he received of the royal decree of October 27, 1720, states on his part—after repeating his previous opinion regarding its execution, as given to the city of Manila, the action taken by the governor, the recourse by the city to the Audiencia, and the report made by that body—what his opinion is, in fulfilment of his obligation, in regard to the memorial of the city and the merchants; it is brought under four heads, which are:

I

The necessary dependence which the maintenance of these islands has on the commerce, in order that the Spaniards may maintain themselves in them; and the benefit from the charitable funds, in which are annually expended 75,000 pesos—which sum proceeds from the trading of the 150,000 pesos which are carried in the annual galleon on account of the said charitable funds.

II

That if the prohibition of the stuffs and other commodities from China remains, their former control of the trade therein will be disturbed, and the royal decrees issued for this purpose (some of which are compiled18) will be subverted—such as those which command that the commodities which they convey shall be bought from the Sangleys; and that if this [Chinese] commerce is prohibited that of Nueva España becomes unprofitable, as the bulky commodities do not fill up the amount of the permitted trade, and it will not be possible to pay the cost of traffic in them without those from China.

III

That for the maintenance of these islands, the support of the Spaniards, and the success of the charitable funds, it is necessary that the amount permitted be increased to 500,000 pesos and a million of returns, with the inclusion of the fabrics from China.

IV

The regulation of the lading, in order to avoid infractions of the law [is necessary]; as also that the dubious and burdensome obligation of making sworn declarations be laid aside, and that the quality and number of the commodities which are transported must appear in the registers.

79. [These points made by the fiscal are discussed at length by him in a report addressed to the king, dated November 15, 1722. Among other things, he states that the merchants prefer one galleon of 800 or 900 tons burden to two of 500 tons each, as being less expensive (on account of requiring fewer officers and men), safer (as carrying larger cannon) and less exposed to danger from either enemies or storms, than the two smaller vessels; that the industry and love of gain displayed by the Chinese who reside in the islands have secured to them the control of all the crafts and useful arts, and of the commerce of the islands save that with Nueva España, which is therefore the only resource of the Spanish citizens; that the current rate of income19is but five per cent in the islands, while thatcommerce brings in fifty per cent; that most of the rural estates [haciendas] are possessed by the religious orders; that houses constitute property of little value, on account of the frequent fires and earthquakes; and that consequently the charitable foundations [obras pias] have been necessarily based on the Acapulco trade. It is also declared that the annual situado from Mexico amounts to no more than 50,000 or 60,000 pesos, while the annual budget of the government expenses amounts to 500,000 pesos, which the royal treasury of the islands must pay from the proceeds of the duties on merchandise. The request of the Manila citizens for a permission to send 500,000 pesos’ worth, in 3,500 piezas, is very moderate; as the trade has been conducted, the 300,000 pesos’ worth has made 4,798 piezas, for the last five years—which is evidence of the infractions of law which have been committed in that commerce. Moreover, the proposition of the city that the duties belonging to the crown be levied on the number of the piezas, will be likely to prevent many of the frauds which are now practiced in this direction. The fiscal opposes the request of the city that the seamen be allowed an increase of the small amount already allowed them, free from duties, for investment on their own account, declaring that it will but increase the illegal trade already prevalent, and that the proposition to allow them 40,000 pesos’worth of trade (with twice that amount in returns for the merchandise) would allow the seamen a greater investment than even the citizens, since the former average only 115 men to each galleon. He advises that the officers of the ships be permitted to have a share in the lading of the ship, in place of their present wages; and that one large galleon be occupied in the trade to Acapulco, rather than two small ones. He reminds the king of the opening afforded by the trade between Manila and China for the conversion of the Chinese and the entrance of the gospel into that heathen empire.]

80. [The treasury officials at Manila also write, seconding the proposal to despatch one large galleon; and they add that the royal exchequer of the islands will be ruined if the decree of 1720 is enforced, “for the commerce would cease, and consequently the royal duties which it was producing.”]

81. The archbishop of Manila, the dean and cabildo of that church, and the provincial of the Society [of Jesus], in their letters of November 6, 7, and 8 of the same year, support the entreaty of the city; they deprecate the ruin (both spiritual and temporal) of the islands, and express the same opinion as that of the Audiencia and the fiscal, as will be seen by their letters, which follow below.

82. The provincials of St. Dominic, St. Francis, and St. Augustine (both calced and discalced), in their memorials of the same year expatiate on the necessity and advantage of changing the aforesaid decree of 1720, and granting likewise to the islands the increase of the permitted trade which they solicit; and they reproduce in detail what the other prelates and ministers say.

83. [The letter of the archbishop (Fray Franciscode la Cuesta) states that he has been urged to write it by the city and merchants of Manila, and the bureau of the Misericordia; and he begins, very naturally, by arguing that the religious interests of the Philippines and of China depend upon the maintenance of the commerce of the islands. He refers to the opposition made to it by the merchants of Andalusia, which he thinks has no good foundation, since their trade with the other European nations drains from España more money than does that of Filipinas from Nueva España—this last being their ground of complaint against the Manila trade; but even if the Sangleys and other heathen carry away silver from Manila, “they have not harmed the [Spanish] crown, and are friendly to the [Christian] religion; while it is certain that the European nations, even if they are not all opposed to religion, at least have been at various times hostile to the crown, and that the amount annually transported by the said nations to Great China and other heathen kingdoms exceeds four millions [of pesos].... And although the argument [of the Andalusians]—that the fabrics from China cause injury, at the expense of those which are transported from Cadiz—would have some weight if all the fabrics in which the Andalusians trade were manufactured in España, since they are not made there the above argument has very little value.” The Spaniards in Filipinas regret that so grievous burdens and restrictions are laid upon them through the influence of the Andalusians, and especially that the result of these must be very detrimental to the charitable funds which so greatly depend upon the Acapulco trade. Two-thirds of these, or 100,000 pesos, belong to theMisericordia alone, whose educational, religious, and charitable labors are so important to the public welfare and the maintenance of the Spanish colony in Filipinas; the remaining 50,000 pesos belong to other institutions. The archbishop therefore urges the king to accede to the requests of the Manila merchants.]

84. [The dean and cabildo of the Manila cathedral also support the merchants; they fear lest the income of the church will suffer from the impaired condition to which the decree of 1720 threatens to bring the Filipinas colony. They adduce similar arguments to those contained in the preceding letters, all taking for granted that the prohibition of Chinese silks means the ruin of the Acapulco trade. Incidentally this letter states the following facts of interest: “The poverty of the soldiers is such that they always go about as mendicants and in need; for as they receive no more pay than that of two pesos and a fanega of rice—which is given every month to the soldiers, but to the convicts who serve [forzados] in the troops only the rations—if they could not find refuge in the aid given by the citizens, the alms from the charitable funds, and the broken food at the convent doors, and in what the more industrious can earn by doing errands, they would certainly perish.” The prebends of the cathedral find their salaries—which range from 500 to 200 pesos yearly, besides the dean’s 600—pitiably small and inadequate, and they must even resort to the charitable funds and to the gifts of friends to eke out their incomes. The same difficulties beset the parish ministers; but worst of all is the condition of the poor clerics who receive no pay, who have no income save occasionalofferings for masses and the alms of benevolent persons.]

85. [The provincial of the Jesuits, Father Joseph Fernandez, seconds the appeal of the merchants.20He states that since 1709 the fortunes of the wealthy citizens are nearly all ruined—by calamities, unsuccessful sales at Acapulco, the failure of the galleons to make the voyage, poor crops in Filipinas, or the quarrels of the governors and auditors—and those who formerly made contributions to the religious orders now need and ask for help from them. “This city of Manila (and in it all the islands) is reduced to eight or ten private persons who are able with their own wealth alone to make up the 300,000 pesos which your Majesty allows for their commerce; and the number of its citizens who, as Spaniards, can call themselves such is very nearly 882—although it is true that there are millions of converted natives, and those who are not converted are innumerable. All these citizens depend for their preservation on the three or four piezas which are yearly allotted to [each of] them, according to their merits, in your Majesty’s galleon; and as most of them have not the means of their own to fill this space they have to give it up, or sell it to those who are richer; or they must ask for money from the charitable funds of the Misericordia, the tertiary Order [of St. Francis], or the religious, in order to fill their space on the ship. As they cannot ship therein anything except the coarse cloths and other goods which your Majesty names in your new regulations,the product of which is hardly enough to pay the expenses on them—duties, freight-charges, and carriers’ fees—the poorer citizens will see themselves forced to seek some other way [to make a living]. That means the desertion of these islands for India, and consequently a great diminution in the number of your Majesty’s vassals; and the islands will be exposed to the invasions of the Dutch and other enemies of your royal crown and of the natives. No few of these invasions have been experienced in recent years, and at this time we are being raided by the Mindanaos, the Joloans, and the Burneyans. And I can assure your Majesty that in the space of less than twelve years I have seen this stage21of the citizens of Manila changed five times. For, as it is composed of some who come from Europe (and they count for many), and of others who come from Nueva España, on account of the difference of the climate from that in which they were born they do not remain long; both classes, seeing the little comfort that they can find here, and how small incentive there is from riches (which is that which most influences those who do not possess enormous estates), either die in a short time, worn out with the misery of this country; or they leave the islands, to look for a more comfortable residence. Thus it comes to pass that only we religious and other ecclesiastics remain, with some persons who belong to the richer class (who are few), and these are Europeans, whom affection for their native land is always drawing away. If this [which I have mentioned above] happens (which may God not permit),all these millions of Christian natives will be left abandoned, and exposed to [the danger of] returning to their heathen condition; and of being possessed by the Dutch, or the Chinese, or any other nation that may find a profit in them.” The argument that the prohibition of the trade in Chinese silks will check the drain of silver from Nueva España is refuted by the provincial; he says, “For we who are near China, Batabia, the Coromandel Coast, and other ports of India, know with certainty that the ships and pataches that come to them from Europa to trade in them carry hardly any money for their traffic except the silver, with the stamp and seal of your Majesty, from Perù or from Mexico; and as those vessels have directed their route from Europa by way of Cape Verde, Buena Esperanza [i.e., Good Hope], Cape Comorin, and Sincapura, it must be supposed that they do not obtain the said silver anywhere else than from the commerce in Europa. Your Majesty could, in the course of several years, prevent the silver that comes from Mexico to these islands from passing over to China, to the Coast, or to Batabia, by commanding your governors and other officials at Manila to make strenuous effortsthat in the islands the natives, mestizos, creoles, and various other castes who live in them and are naturalized as subjects, be compelled to weave the cloth goods which are manufactured in other regions; and these people are no less skilful for the mechanical and even the liberal arts than are those of other nations. As for the fabrics of cotton, these people are able to weave them, for their own consumption, more durable and of better quality than the cloths which come from China and theCoast; and as for the silk goods, the hose which these natives weave are those which bring the highest price at Acapulco. The colors for dyeing the goods are furnished by the country itself; for there will be shipped from hereto the empire of China during this year more than thirty champan-loads of sibucao, or campeche, a wood from which the Chinese obtain carmine for their dyes; and the other colors they obtain from trees and roots which also are found in these mountains in abundance. As for the cinnamon, it grows very abundantly in the island of Mindanao, where your Majesty has the fort and garrison of Samboangan, with some missions that are administered by priests of my order, and by other religious from the discalced of St. Augustine. It would be of no little advantage to be able to cultivate the cinnamon, as the Dutch do; for the silver which that nation would be obliged to carry for that product would remain among the vassals of your Majesty, and thus there would be an end to that difficulty (which the merchants of Sevilla certainly exaggerate) of your Majesty forbidding the shipment of the goods which your royal decree specifies, which are those that have some value, in order to be able to pay the cost on the more bulky goods. Who will have courage to weave them, or hunt for them, when he knows that he must lose on them? In these islands abundance of gold is collected in various placers, in which work the slow and patient disposition of the natives is occupied; but as their minds are so careless and ignorant they content themselves with washing out only the exact amount of their tribute, which is five reals for each person. But if your Majesty would give your royal directions toyour governors and ministers, in the course of time it would be possible to secure the production of this gold in abundance; and if it were sent to Nueva España, and exchanged for the silver necessary for the maintenance of these your wretched vassals, the result would be that the latter product would always remain in the dominions of your Majesty. In these islands, also, some pearls are secured by diving, and in these seas some amber is gathered. In the mountains there is no lack of numerous civet-cats; and the civet, if measures were taken for its production, might be no small source of wealth to your vassals, and consequently furnish huge amounts to your loyal treasury.” Father Fernandez mentions that Felipe IV “spent in twenty years 170,000 ducados solely in sending religious to preach the gospel in Philipinas;” and that the monopoly on the buyo industry had produced in one year 11,000 pesos to the royal treasury, and that on wine 18,000 pesos; (but these amounts apparently refer to the price paid for a three years’ contract, rather than to the annual income of the crown from these sources).22]

86. All the papers and reports which have been mentioned in this “Period vii” having been received in the Council, and the deputies from Philipinas, Don Francisco Diaz Romero and Don Antonio de Echandía—who deposited their credentials and letters in the office of the secretary—having presented themselves in it, they set forth their claims and stated, in a printed memorial (which they handed in on June 14, 1723) the injuries which the islands were receiving from the practice of the decree of October27, 1720. They entreated that its execution be suspended, and orders given that the commerce be continued with the yearly galleon in the same manner, so far as the lading was concerned, as was in use at the time when the aforesaid despatch was received there [at Manila]. The memorial, in eight leaves, is as follows:

87. [This memorial by the city and merchants of Manila presents in detail the amount of their annual commerce in the various kinds of merchandise that are permitted in the decree. The gold exported from Filipinas to Nueva España amounts to less than 12,000 pesos, and is sent not as bullion or coin, but in the form of the slender chains [bejuquillos] wrought by the Malay natives for personal adornment; for in no other form could it compete with the abundance of gold mined in Mexico. The Chinese porcelain is shipped in small quantity, being mainly an article of luxury, like the gold ornaments; moreover, it is bulky and fragile. As for spices, Manila complains that the market for these in Nueva España is already appropriated by the merchants of España who send spices in the trading-fleets to Vera Cruz; in the fleet (of seventeen vessels) commanded by Don Fernando Chacón was carried the enormous amount of 170,737 libras of cinnamon, and more than 70,986 of pepper and cloves, besides various bags and chests of all these kinds of spice the weight of which was not noted. The only products of the islands which have commercial value in Nueva España are wax, lampotes, Ilocos blankets, and cordage; and the value of all that is exported of these, even counting with them the previously mentioned gold chains, does not gobeyond 30,000 pesos. The linen goods have hitherto been shipped from Manila to Acapulco only to fill in empty spaces in the allotments of lading, and have amounted to hardly 60,000 pesos, on which very little profit was obtained. If the main part of the galleon’s cargo has to be composed of these linens, the Acapulco market will be overstocked with them, and the prices there will be so low that Manila cannot afford to send another cargo of this sort. Moreover, as these goods are procured from the foreign factories at Batavia, Madrasta, Patàn, Punticheri, and Vengala, as soon as the traders at those posts understand that the Manila galleons must carry most of their lading in goods to be procured at those factories they will advance their prices enormously, and the galleon will be compelled to sail in ballast, and then only to procure the situado. The floss and raw silk which is the only form of that product permitted to Manila is so bulky a commodity, and the consumption of it in Nueva España is so small, that it too has been shipped only to fill up space; moreover, “for several years it has been increasing in cost, on account of the great amount of it which the Dutch, English, and French obtain from China for the fabrics which are manufactured in Europe.” The deputies, to substantiate their statements, refer to the official reports of the viceroys of Nueva España, and offer to bring forward evidence in their favor from various persons at Madrid who have resided in Filipinas. They claim that the Manila trade in silken fabrics has not harmed the merchants of España, since the silk which is produced in that country is hardly sufficient to supply the home demand, and it is necessary to bring to it foreign silks—exporting toNueva España some goods which have little demand in España; but even these do not occupy one hundred and twenty-five toneladas of space. The greater part of the silk goods woven in España are silks and velvets, and if the value of these has fallen, it is not the importation of Chinese goods which has caused this, but the change in the style of magistrates’ robes,23in which those goods are used, and the small amount of them that is used in the military service. “Just as in these kingdoms [of España] most of the persons of rank are clothed in no other fabrics than those which come from foreign countries on account of either their better quality or their luster—so the same thing occurs in Nueva España, where they follow in everything the customs of Europa; and for this reason most of the silken fabrics which are carried thither in the trading-fleets are from the kingdoms of Inglaterra and Francia, and the provinces of Holanda—as silver and gold tissues, brocades and laces of the same sort; hose, and other stuffs, the sale of which does not injure that of the Chinese silks, on account of the greater value placed upon the former. Therefore, as the silken fabrics which the aforesaid shippers carry [to Nueva España] are not all from the mills of España, but these Spanish silks are in very small quantity and of the sort which are rejected here, it is evident that the injury is not to the commerce of Andalucia, but to the foreign nations. For, since all the gold and silverwhich comes [to España] is carried in trading-fleets and galleons—except what is obtained for wines, brandies, oil, and other products—the slender profits which the traders of Philipinas gain from the sale of the Chinese fabrics will also be given up for their benefit by the foreigners on account of the abundance of the products from their own mills which they will ship to Cadiz, in order that these may be carried to the Indias.” The argument is repeated, that most of the profits in the Acapulco trade must go to European foreigners, if it is restricted to the few and unimportant products of the islands, and thus the enemies of España are strengthened; while if the Chinese trade is allowed those profits fall into the hands of people who cannot and will not injure the Spanish power. The enforcement of the decree will injure not only the citizens of Manila, but the revenues of the crown, which amount annually to an average of 228,557 pesos, besides the duties produced by the Acapulco trade, which amount to 250,000 pesos more. The treasury will have no means to buy the rice of the Indians, their only valuable product; the Sangleys will have no occasion to trade at Manila, which will lose the amount of their licenses (more than 23,000 pesos), besides the import duties and alcabalas which they pay there, which amount to more than 37,000 pesos; and the situado sent to both the Philippines and Marianas must be taken from the Mexican treasury directly, which will be too heavy a burden for it. The king is reminded of the poverty of the Philippines in all natural resources save rice, and their dependence on the Acapulco traffic for money, clothing, and all other needs save that of food. The recent building of twosmall galleons has caused the treasury a great amount of expense, quite disproportionate to that of the one large vessel which hitherto had been used for the Acapulco trade—to say nothing of the extra expense caused by the duplication of crews, officers, and soldiers which is thus rendered necessary. The smaller ships are less able to resist either storms or pirates, and the few experienced seamen in the islands must be divided between them, when they should be massed in one vessel. Again is mentioned the dependence of the missions, and the conversion of the heathen, upon the Acapulco trade; the Indian villages that are more or less christianized now number 457, with 111,683 families, who are in danger of relapsing into heathenism, or being converted to Mahometanism, if the missions cannot be kept up.]

88. The Council, on June 14, 1723, agreed that this memorial should go to the fiscal with all those that came before, with the letters of the Audiencia, officials, and prelates which had been laid before the Council on the twelfth of the same month.

89. The consulate of Cadiz, by a memorial presented in the Council on the twenty-first of the same month and year-being informed of the petition from Manila requesting that changes be made in the decree issued on October 27, 1720—asked the Council to order that the argument recently brought forward by Manila in regard to this be communicated to them; this having been referred to the fiscal, he was of opinion that the aforesaid document should be communicated to the consulate, as had been done in the year 1720 by order of his Majesty; and the Council agreed to this by a decree of July 12, 1723.

90–92. [On September 4 following, a conferencewas held by the representatives of the commerce of Sevilla, to consider the question of the Philippine commerce in Chinese silks and the royal decree forbidding that trade; a copy of the memorial sent from Manila, and other documents bearing thereon, were submitted to that body by the consulate of Cadiz, who had already taken action thereon, and now asked for the support and coöperation of the Sevilla merchants. In a formal resolution by the latter, they express their entire concurrence with the views of Cadiz, and request the king to enforce the decree of 1720. They make light of the statement regarding the great amount of spices carried to Nueva España by Chacón’s fleet, and intimate the probability that the remonstrance by Manila is really instigated by the traders of Nueva España, who, on account of the enormous profits which they make by sending money to the Philippines for investment, must be most affected by the proposed restrictions on the Manila commerce. Sevilla answers the argument of Manila that only one hundred and twenty-live toneladas of Spanish silks are sent to Nueva España, by declaring that even that small amount will soon be reduced to nothing unless the king strictly prohibit the introduction by the Filipinas ships into Nueva España of fabrics woven of silk and gold or silver; also that the silk-mills of España will be ruined and abandoned, and consequently the cities of that country will be inundated with poor people and criminals. On the day before this conference, a similar one was held by the consulate of Cadiz and representatives from the merchants of that city, who made a vigorous remonstrance against the injuries caused to Spanish commerce and industry by the Manila-Acapulcotrade, and especially by the frauds and the infractions of law therein, on which they expatiated in the above conference. In the report drawn up by them they mention several of these. For instance, the merchants of the City of Mexico sent large sums of money to Acapulco for preparing the Manila galleon for its voyage; “and in the three months during which the ship was detained at that port it unloaded an enormous cargo, held its fair, and returned laden with silver, without wintering in that kingdom, on account of the easy and prompt disposal of all that it carried. This cargo was usually 10,000 or 12,000 bales, half of silken fabrics and half of linen goods, [lencería], the proceeds from which reached four millions of pesos; and all this in pesos, eight-real and four-real pieces, since in exchange for the said goods they did not desire or carry any produce, nor even doubloons, nor bars of silver, for all must be new pesos and of Mexican coinage, these being the coins which are current in Turquìa, to which country they were going, since the greater part of the said goods come thence.” Reliable witnesses have told of mule-trains entering Mexico laden with Chinese stuffs, which must amount to almost the value of the goods carried by the eighteen vessels in the trading-fleet which that year came from Spain under Don Manuel de Velasco; and the market of the latter was ruined by the former. “Although the silk fabrics which the ships bring from Philipinas have not the quality or durability of those from España, and the linen goods are all of cotton, and do not last half as long as do those from France, yet as the former are sold cheap, and have a good surface, and are showy, while they last the commerce of España ischecked and suspended.” The merchants of Mexico send so much money to Acapulco that not enough is left to send the trading-fleets back to Spain, which are compelled to winter at Vera Cruz in order to obtain the proceeds of their cargoes and equip the vessels for the return voyage. “So sweeping and irreparable is the great injury which these goods from China, or from the Turks (which is the more certain), cause to the most important cities of España that when the said ship was not allowed to carry those goods Sevilla had more than 12,000 looms for the manufacture of silks of every kind; and with these, even without other stuffs, so great a number of people were employed on them, and so great was the opulence of that city and of all its domain, as is made evident by the great services which on all occasions Sevilla rendered to his Majesty, with sumptuous buildings—churches, hospitals, government buildings, and private houses. But without greater casualty than that of the importations in the ships from China, that city found itself in a straitened and miserable condition, not two hundred looms being left in it, on account of there being no consumption for its fabrics; and the great mass of poor people, who then supported themselves by their labor, are now miserably perishing. No less proof is afforded by what is occurring in Granada; for there more than 12,000 looms were employed only on taffetas (both double and plain), satins, plushes, and all kinds of silk-weaving; and more than 50,000 persons, men and women, were engaged in the industry and labor of making silk goods. For this reason, the amount of silk worked up each year was more than 180,000 libras, from which proceeded considerableprofits to the royal exchequer, for the duty on each libra amounted to thirteen reals and three cuartillos; but, with the one but sufficient reason of the importations of Chinese goods, [that industry] has so fallen away that the amount of silk sold in that city at each gathering of silk does not reach 40,000 libras, and the number of looms operated, on coarse stuffs, is less than 2,000—a similar condition to those of Sevilla.... The same troubles are suffered by Cordova, Jaen, Ezija, Priego, and Alcalà la Real, with many other places which in both the Andalucias were growing and being maintained by the said manufactures. It is not less worthy of attention that the silk-growers of the aforesaid kingdoms of Sevilla, Granada, Cordova, and Murcia are, for lack of sale for the silk that they produce, giving up the cultivation of the mulberry-trees, and abandoning their farms and the places where they dwell.” Cadiz cites the action of Conde de Monclova, viceroy of Peru, who prohibited the shipment of Chinese goods from Acapulco to South America, making them contraband and confiscable, recognizing “their poor quality and lack of durability, and the great detriment which this trade caused to the merchants [of Peru], who go down to Portovelo to hold the fair [at the arrival] of the galleons, which has been the greatest in the world;” and urges the king to enforce strictly the decree of 1720. Such action would greatly benefit the realms of Spain, and would not cause injury to the Philippines, because none of the said Chinese stuffs are made in the islands; “and the only ones who could grieve over it are the Turk, and other princes of Assia, Mahometans, and enemies of our holy Catholic faith.” Asfor the complaint of Manila that the propagation of that faith depends on the silk trade, Cadiz refuses to believe this, and refers the king to a document in Manila which refutes that notion. This is “a memorial or report made by a minister of that Audiencia, N. Calderòn, in which is inserted another, written by Father Fray Victorio Ricci,24of the Order of Preachers, who was for many years a missionary in the empire of China, and afterward in the Philipinas Islands; it was sent by the Supreme Inquisition to its commissary in the islands, in order that he might send to his Majesty information on the points therein.... In these papers it will be clearly evident that the progress and propagation of the faith is not diminished by depriving the islands or the kingdoms adjacent to them of the commerce prohibited to them, or by the restriction which his Majesty has laid on it;” the above prohibition, therefore, is not the cause of the ruin of the citizens of Filipinas.]

93–94. [These replies by the merchants of Andalusia call forth another memorial from the Manila deputies, which occupies fourteen printed sheets. They repeat their former arguments, enforcing them by reference to the despatches from the Audiencia of Manila, the archbishop, and the various religious bodies there, and still more to the letters previously addressed to the king by the viceroys of Nueva España; and they adduce various instances from the history of the Manila-Acapulco trade to the same effect. They also undertake to refute the chargesmade by the merchants of Sevilla and Cadiz, and claim that the latter have misrepresented certain facts. We note here some points made by the Manila envoys, as giving new information on the matter at issue. They say that the maintenance of Filipinas, including the missions and military posts, costs the Spanish crown annually 515,568 pesos, for which sum the royal treasury of Mexico should be responsible, according to the laws of the Indias; but it sends thither only 40,000 pesos in money and some 60,000 in goods, and even this remittance comes from the duties which the Manila galleon pays at Acapulco. But in 1637 and for some years later, the situado sent to the islands amounted to more than 325,000 pesos in money, and enough goods to make up the 500,000 pesos. This, however, was largely the result of the failure of the Manila merchants to ship goods to Mexico, a proceeding caused by the undue harshness and severity of the royal visitor Pedro de Quiroga;25but it led to the abolition (by royal decree of September 3, 1639) of the restriction on the kinds of goods permitted to Manila, only limiting the amount of their investments. It is strange that Manila has pursued this commerce for one hundred and forty years without any protest from Andalusia until now; the decadence of the latter is due rather to lack of economy in the use of their wealth than to the competition of Filipinas; and Andalusia has always encountered trouble, since the persons interested in the greater part of the lading of the galleons and fleets have been and are foreigners—French, English, and Dutch. Andalusia claims that thegalleon unlades at Acapulco more than 12,000 piezas, half of them containing silk goods; but the certificates of the royal officials show that in the ten years from 1710 to 1720 the total number of piezas (in ten galleons) was 36,895, including therein the 4,299 half-chests in which the silk goods were shipped—making the average lading of each galleon only 3,660 piezas. The detention of Velasco’s fleet was not due to the arrival of the Manila galleon, but to other causes. The fleet of 1698, in charge of General Mascarùa, was sent lightly laden, and in 1699 Velasco’s fleet followed it, but encountered the other at Vera Cruz; the presence of the two large fleets at one time, and the ravages of yellow fever [bomito negro,i.e., “black vomit”] at that port, rendered it impossible to sell the goods to advantage, to transport them to Mexico, or to equip the vessels for the return voyage. When Velasco could set out for Spain, he received news of the death of Carlos II, and the danger of war between Spain and other powers, which made the merchants unwilling to risk their property on the seas at that time. Finally the Spanish fleet was escorted to Spain by a French squadron of warships, but on reaching Vigo was attacked by an English and Dutch fleet, which inflicted considerable loss on the Spaniards. Moreover, the trading-fleets sent from Spain to Nueva España are nearly twice as large in the last few years as they used to be, which overstocks the colonial markets with goods. Manila claims that the decadence of the silk industry in Andalusia is due to the pest which ravaged that province (with especial mortality in Sevilla) in the middle of the past century; and that part of the remaining population had emigrated toMurcia and Valencia, where they had cultivated mulberry-trees and built up the manufacture of silk goods. Another reason assigned by some writers for the decrease of prosperity in Andalusia was the imposition, at that time, of heavy war-taxes. As early as 1666, the city and the merchants of Sevilla had represented to the crown “their lamentable condition, and the ruin of their looms, caused by the imposition of the millones26and the concourse of foreigners to Cadiz to introduce their own merchandise.” This led to a resolution by the royal Council that the decree of January 25, 1661, should be enforced, which provided thatthe custom-house and collection of duties for the Indias should be withdrawn from Cadiz, and that the galleons and fleets should take on their lading in the river of Sevilla and the port of San Lucar. As for the stuffs from foreign countries which, it is alleged, are brought to España and crowd out the manufactures of that country, these are only the fabrics which the more industrious French, English, and Dutch make with the raw material, both wool and silk, which España exports. In 1696 Sevilla complained to the king of the injury which it was experiencing from the importation of foreign goods, but did not mention the Chinese stuffs among these. “In Madrid and Valencia the manufacturers are at present complainingthat the price of silk has risen very high, not because the crop [that is raised in España] is not an abundant one, so much as on account of the so great export, not only from that kingdom but from otherregions, to foreign countries, that which the French alone have bought this year amounting to more than 300,000 doubloons; and if asked about this, any dealer in these goods or any official will answer with entire candor, without blaming the commerce of Manila.” The foreigners bring back these silk goods to España, in order to supply with them not only that country but the Indias, through the fleets and galleons; “and this is what the consulate [of Cadiz] is defending, in order that these goods may, by not introducing into Mexico those from China, be sold [there] with a higher reputation.” The highest authorities all concur in the statement that the Spanish silks sent to Nueva España do not amount to one hundred and twenty-five toneladas. The statement that the Manila galleon carries from that country 4,000,000 pesos is unwarranted; the only possible ground for it is that in 1717 the viceroy allowed the galleon to carry to Manila 2,000,000 pesos, because for three years past no money had been sent to the islands—on account of poor sales at Acapulco, a galleon forced back to the islands by storms, etc.—on condition that the king’s ten per cent be paid on that amount. In other years the amount of money illegally shipped has been very small. Cadiz has alleged that money has been scarce there for some years; but Manila declares thatfrom December, 1720 to July, 1723 over 40,000,000 pesos worth of gold and silver, in coin and bullion, has been landed at Cadiz, without including the value of the other products of the Indias. Cadiz asserts that the money obtained from Nueva España goes to the Turks, the enemies of the Catholic faith; but the Spanish merchants are continually furnishing moneyto other enemies of the faith, the English and Dutch. Moreover, the commodities which the Manila galleon carries are not obtained from the Turks, but (through the European factories) from Indostan, Tunquin, Lao, China, Japon, and the Philippine Islands; while Manila is not even permitted to trade with Arabia and Persia, whose products are carried to the ports of the Levant, and at those fairs the traders from all the European nations buy those goods, with money which has come from the Indias. Manila declares that the trading-fleets carry to Vera Cruz no Spanish products save wines, brandies, oil, raisins, and almonds, and the previously-mentioned small amount of silk goods; all else in their cargoes is of foreign make. The spices which the decree of 1720 allows to the islands will not suffice to pay the expenses of the voyage, especially when Manila must compete with the trading-fleets from Spain in the shipment of these products. The collection of royal duties on goods is regulated by “cubic palmos in accordance with the measurement of the bales [frangotes] and piezas which are shipped.” As for the memorial by Calderòn, Manila asserts that it does not bear on the present question; that auditor, in the time of Governor Curuzalaegui (in which occurred an uprising of the Sangleys), sent a letter to the king remonstrating against the liberty given to the Chinese, and advising that they be not allowed to have intercourse with the Indian natives, or even to live in the Parián. This tolerance had been extended to them for the sake of attracting them to the Christian faith, but Calderòn regarded it as no longer necessary, since they had, even then, a number of Christian missionaries in their own country. In hisletter, he cited Father Ricci in support of some of his statements. While the Spanish silks sent to Nueva España amount to only one hundred and twenty-five toneladas, those of foreign make sent thither from Spanish ports are more than a thousand toneladas. The French, English, and Dutch trade at Canton, where the main part of their commerce is in raw silk.]

95–96. [The above memorial was referred by the Council to the fiscal, on October 6, 1723; and on December 22 following, a printed answer to both of those by Manila was placed before the Council by the consulate and merchants of Cadiz. They remind the king that when Filipinas was first discovered the ships brought back to España abundance of gold, pearl, amber, civet, wax, and fabrics of Ilocos; and for some time afterward these and many other valuable products were exported from Manila, which became the emporium of both Eastern and Western India. In those early times, when so much zeal and energy for the conversion of the heathen was displayed, it was not necessary to the missions to depend upon the trade in Chinese silks; but, for the sake of benefiting the natives of the islands, and to check the drain of silver to foreign nations, the Spanish government (by decrees of 1589 and 1596) authorized the barter and exchange of the products of Filipinas for those of China, under the system calledpancada. But Manila has distorted this into the assumption that the Chinese trade was intended for the maintenance of the Spanish colony in Filipinas, and that it was to be without restriction, save in its amount—although, as a fact, the trade in silk fabrics of China was not introduced until many yearslater. The system of distributing the commerce among the citizens of Manila replaced the earlier pancada, and led to such abuses that Felipe III attempted to check them by a severe decree (1620); and later enactments placed the Acapulco commerce on such footing that it flourished greatly, to the mutual advantage of Filipinas and Nueva España, and to the enrichment of Manila and its citizens. That commerce benefited the poor citizen as well as the rich; but the trade in silks is only for the benefit of the wealthy merchant and the rich consumer, as they are articles of luxury. The earlier commerce of Manila also supported and stimulated the consumption of Spanish silks in Nueva España and Peru, and the silk industry flourished in the mother-country; but the later introduction of Chinese silks into the American colonies, and the frauds and excess connected with this trade, have ruined the silk industry on both sides of the Atlantic, and even impaired the prosperity of Manila. Cadiz claims that the merchants of Mexico have committed many frauds, and transgressed the ordinances, and prevented the execution of these, in regard to the Manila trade, and do so with the collusion and aid of the officials: for instance, the galleon “Nuestra Señora del Rosario” arrived at Acapulco on January 11, 1699, and the Manila citizens attempted to compound the duties on the cargo for 100,000 pesos; but the royal fiscal opposed this, showing that the ship had brought 6,754 piezas of lading, without counting a considerable quantity of pepper and other goods outside of the registration. It was also found that although the law restricted the entire cargo to the value of 250,000 pesos, and its ownership to the citizens of Manila,this vessel contained goods to the amount of 233,966 pesos which belonged to the citizens of Puebla alone, and it was estimated that it must contain at least a million pesos’ worth of goods belonging to merchants in the City of Mexico. The Mexican government compelled the payment on these goods of duties amounting to 50,000 pesos more, and would have investigated the whole matter, to ascertain the exact amount of the illegal shipments; but the commercial interests of Mexico exerted such influence against this that the Audiencia desisted from the undertaking. Again Cadiz accuses the importation of Chinese silks into Nueva España of having ruined the silk industry in España; although those goods are so thin and poor that they are worn out even before the Manila galleon leaves Acapulco, they are so cheap and showy that they undersell the better goods from España even competing with the latter in Vera Cruz, where the Chinese goods are purchased by the traders of Habana, Puerto Rico, Cartagena, and other Spanish colonies; and all this is overlooked by the Spanish officials in high places, because they profit by this illegal traffic. If the king will prohibit the importation of silk woven with silver and gold, and “check the hand which Mexico moves at the command of Manila,” the silk industry will be revived in España, its people will be kept from idleness and poverty, and foreign countries will no longer drain its resources. Cadiz desires Manila to content itself with the spice-trade, which is a staple and profitable line of commerce, and which Manila can carry on more cheaply and promptly than Spanish merchants can; the spices sent from España onChacón’sfleet were needed to supply the scarcity ofthem at that time, as the Manila trade had been interrupted temporarily; but if the latter be regular, such shipment from España could not occur again. From the year 1690, the indult ran from 50,000 to 74,000 pesos, on the basis of the 250,000 pesos allowed to the Manila trade; but it is evident that the duties ought now to amount to above 500,000 pesos, on the enormous quantities of Chinese silks that the galleon of 1,000 toneladas carries.]

97–105. [This memorial, with like protests from the cities of Toledo, Ezija, and Murcia, was sent to the fiscal, who on March 16, 1724, handed in his opinion on the question at issue—that is, whether the decree of 1720 should be changed or enforced. He lays down three propositions: First, that the trade in Chinese stuffs should not be prohibited to the citizens of Filipinas, since it is necessary to their maintenance, those islands having no profitable mines or commercial products; moreover, the introduction and propagation of the Catholic faith therein is an obligation of justice as well as of religious zeal, and was so recognized by Felipe II, when he refused to abandon Filipinas; and to fulfil this obligation the Spanish colony there should be sustained. For this purpose the trade with Nueva España had been granted to Manila, to such extent as should be necessary for its preservation, that is, to the amount of 250,000 pesos, and 500,000 in returns; and in the permission given to Manila to trade with China there had been, and should be, no restriction as to the woven silks of that country. Second, this trade ought, nevertheless, to be strictly confined to the amount of their permission, and all frauds to be prevented; for the complaints of Spanish producersand merchants had been caused by the frauds and abuses in the Manila trade, rather than by the mere fact of its including Chinese goods; the fiscal even suggests that they have an official representative at Acapulco to aid in the unlading and inspection of the Manila galleon, and report thereon to the viceroy, which would aid in preventing frauds and enable the Spanish merchants to discuss the question more intelligently. Third, that in case the trade in Chinese silks be prohibited to Manila, that in spices should be absolutely prohibited to the Spanish merchants and given exclusively to those of Filipinas; while the American trade in silks should be free to the Spaniards.]

106–111. [The Council considered this question on April 6, and decided that the decree of 1720 should be changed; they recommended that the Filipinas trade be continued as before the decree, and employing but one large galleon; that the decree of 1702 should be enforced, save that the goods should be valued not by actual inspection of the bales but by invoices presented by the shippers, with their sworn statements that the goods were their own; nor should any indult, payment of double duties, or other form of composition be tolerated; and that the royal officials at Manila, Cavite, Acapulco, and Mexico should be held responsible for the fulfilment of these regulations, under severe penalties. This proceeding was approved by the king, who issued despatches in accordance therewith (June 17, 1724) to the viceroy of Nueva España and other officials concerned therein; and on August 8 the merchants of Cadiz were invited to nominate a deputy to watch the Acapulco commerce.]

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