Chapter 37

Chapter Fourth: Of the necessity for forming a company in these islands1. By a royal decree dated at Sevilla on March 23, 1733 (in which the project was carried out which was approved by his Majesty on April 26, 1732), there was established by our lord Don Phelipe Fifth, of undying memory, a company with the name of “Royal Company of Philipinas,”35under fifty-eight articles and stipulations. These were full of the most unusual privileges and liberties that can be granted, and were even more advantageous to the Spaniards than those which Louis Fourteenth granted to the French for their Oriental Company; but I do not know exactly for what reason—some attribute it to the loss of Torres’s trading-fleet—the paternal affection did not prove effectual with which our beloved king and sovereign took an interest in making the Spanish monarchy prosperous by the extension and promotion of commerce (the only means for securing wealth), imitating the examples of almost all the nations of Europa, who, in order to become rich, have established their companies in the Orient.2–12. [In these sections Viana expands this last statement, enumerating the nations who have enriched themselves by the Oriental trade, and the companies formed in each for this purpose. First were the Genovese and Venetians, who traded with India by way of the Red Sea; they were afterward driven out of this trade by the Portuguese, in consequence of the discovery by the latter of the route via Cape of Good Hope. (Section 3.) “Portuguese trading-fleets of thirty ships came to the commerce of India every year, and for Brasil alone sailed fifteen to twentyships laden with merchandise from India—besides others which carried on trade in China, Japon, Persia, Arabía, Mosambique, Melinda, Sofala, and other regions. But now that commerce is so reduced that only one or, at most, two ships sail from Lisboa yearly, which would not be the case if they had established a company with adequate capital, which is the only way of making commerce lasting.” The Dutch at first bought spices from the Portuguese, and then resold them at a huge profit to the other European nations; but Phelipe II prohibited the spice trade to Portugal, and the Dutch therefore formed a company to operate in the Orient, and trade directly with its peoples. As finally constituted in 1602, this company had (section 6) a capital of 6,600,000 florins (“according to Savary”); and “in less than four years the members received the principal of their shares with the great profits which they obtained.” At the time of Viana’s writing, the Dutch company were maintaining “twelve thousand men, regular troops, in their twenty-five fortresses in India, and were able to equip 30,000 militia in their colonies, especially that of Batavia” (Savary). Viana cites another authority, Samuel Ricard, who places this militia force at 100,000, and states that the company employed in the Eastern trade more than 160 ships, each carrying thirty to sixty cannon, besides forty ships of the line (which number was increased in time of war). This enterprise ruined the commerce of the Portuguese (who had been the first to open the sea-route to India); “from that time until now it has steadily diminished, and is the poorest in all India; this has been the result of their not having formed a company with capital, and withrespectable forces to oppose the conquests which the Dutch made. For they had a better opportunity than the latter, and it would have cost them less to maintain a flourishing commerce, as was that which they already possessed, than it cost the Dutch to establish a new commerce by dint of money, conquests, fortifications, and enormous expenses.” The English company (section 8) sent out its first fleet (of four ships) in the year 1600; its capital was 369,891 pounds sterling. After various fluctuations of fortune, it was reëstablished in 1698, and attained great prosperity, so that its capital had increased to 1,703,422 pounds. In Viana’s time, “the ships from Madrast for London (more than fifty in number) carry annual cargoes of five to six million pounds, according to the estimate of Sabary; and, taking into consideration the increase which this commerce has had since he published his famous work, the ‘Universal Dictionary,’ it must by this time be worth some ten millions. This does not include the operations of the private English traders who traffic among the colonies of India; this may be inferred from the duties which they pay in Madrast, which, at the rate of five per cent, produce for the company 80,000 pagodas. This sum amounts to 120,000 or 130,000 pesos, estimating the pagoda at twelve and sometimes thirteen silver reals.” The English company were maintaining in constant operation 150 ships and fragatas, and more than fifty smaller vessels, employed in their commerce between India and London alone; to the great expenses of this navy must be added those of the company’s forts and garrisons in India, which indicate how enormous were their profits. An Englishman told Viana that the king ofEngland was owing to the company more than 36,000,000 pesos, the amount of loans which they had made to the crown in various emergencies. The Oriental commerce of the Dutch was further encroached upon (section 11) by the trading companies formed later in France, Sweden, and Denmark, and proposed in Prussia;36these were protected and fosteredby their respective governments. The commerce of the Dutch “would have been ruined if it were not for their being exclusive owners of the spice trade—of which only the Spaniards are able to deprive them, since we have in these islands cinnamon, pepper, cloves, and nutmeg.” As all those nations maintained forts, garrisons, and war-ships, the necessity of opposing these armaments with like forces has imposed on the Dutch enormous additional expenses. Viana says (section 12): “I know not what reason there can be why that which is so beneficial to all the powers should not, with even greater cause, be an advantage to España, which holds her conquests in peaceable possession, and has valuable products in her dominions; moreover, she has forts and ports which at little cost can be rendered impregnable, and better opportunities than any other nation for a very flourishing commerce. Yet she labors only to enrichher enemies, abandoning to them the commerce which our people are unwilling to carry on, and surrendering to them our treasures and wealth, in exchange for the greater part of the commodities and products which our own lands produce.”]13. If the Spaniards would form a company in the islands, similar to the foreign companies, and according to the pious anxiety with which the magnanimous heart of our beloved king and sovereign Don Phelipe Fifth, of undying memory, was concerned in this matter, all the nations who trade in India would have the same experience as the Portuguese and Dutch. Our commerce would annihilate or [at least] diminish that of all the India companies, who cannot find a market for their goods if they do not trade these in our dominions—and this they could not do if the Spanish company had large capital, and ships for navigation and trade in España and the Americas. If we could fortify the towns and garrison them, as has already been explained, the other nations would find themselves under the necessity of spending much more than they now do, in order to defend themselves against our power, if war should break out. This increase of expenses on the one hand, and diminution of their commerce on the other, are two excellent principles, which promise many advantages to the Spanish company—which, as it is not, like the others, compelled to incur these expenses, will be able to sell its commodities at lower prices, and the gains will be more certain.14. In order to facilitate the establishment of this most beneficial company, the royal protection of our sovereign is absolutely necessary, and with it must be banished the contemptuous notion that the Spaniardsform of the commercial career; for that notion usually leads them to keep their chests full of silver, for which they sell the products of their family estates. As a rule, the Spaniards spend with great economy what is necessary for their maintenance, especially those in the little hamlets throughout the kingdom; and, as they enjoy no commerce, they deprive themselves of the benefits arising from commercial activities, with detriment to their families and to the public welfare. On the other hand, they imagine that there is too great a risk in the remittance of their silver by sea, because they are so little (or not at all) acquainted with nautical science and mercantile affairs; and, as timidity prevails in their minds over ambition, they consider themselves fortunate to keep their riches under their own eyes, without thinking of investing them. But they would take hazards on their money, if they were touched by that eager desire for gain which is inseparable from all commerce, and which is stimulated by the lure of profits.15. There are, of course, many persons whose ability enables them to understand thoroughly the benefits of commerce; but they live remote from the marine ports, they have not trustworthy acquaintances to whom they can confide the management of their capital, and they sorrowfully deprive themselves of the benefits which they would derive from its employment, the result of which is that they lead idle lives, or sometimes yield to an extravagance which is excessive and impairs their fortunes. Even more melancholy than all that I have related is the sight of the Spanish nobility, without any occupation, and, as a rule, reared in extreme ignorance and idleness.This is the source of many excesses, the beginning of ruin to the most robust constitutions, a hindrance to the generation of children, and a cause of the lessening of population which is continually growing more worthy of consideration.16. Let there be formed, then, an Oriental company, and let the nobles of the kingdom contribute its funds; the profits [on these] will awaken in them a liking for commerce, and they will become acquainted with this most useful branch of knowledge. They will maintain their [business] relations, they will have some occupation, and will not use up their fortunes with vicious habits; their children will be brought up with a liking for commerce, and the fathers will have the satisfaction of employing some of their sons in appointments under the same company. This is the most certain means for securing the happiness of families and the prosperity of the entire monarchy; for, if commerce and the naval service (which follows the other closely) are promoted, there will be no vagabonds or idlers. Rather, idleness will come to an end, and with it many vices, on account of the enormous number of men whom a company with large capital needs to employ by land and sea—not only for its business positions, but for manufactures and navigation, in which persons from all spheres of life find an opening.17. What a number of people must be employed by the English and Dutch companies in the more than one hundred and fifty ships which each company maintains for its commerce, and in the various colonies in which they have established that commerce! And what advantages result to these two powers from keeping so many people busy, maintainingthem at the company’s expense, and freeing them from the idleness in which they would [otherwise] live! If those countries had not so great a commerce, vagabonds and idlers would abound in them; but this class of people is not seen there. On the contrary, there is great application to all the arts and sciences; for all have employment, and all are useful—some in manufactures, others in the military or the naval service, and others in commerce, etc.18. The attainment of these fortunate advantages depends on whether our beloved king and sovereign will assure to his vassals all his royal protection for the promotion of the said company, following the example of his glorious father, Don Phelipe Fifth, ever to be remembered; for the money of the royal treasury is the main foundation for this great and most useful enterprise. For it cannot be doubted that, animated by the same spirit, there will be many contributors to the capital of the said company—all the nobility of España, from the highest rank down; the guilds of Madrid, which now form a body of considerable importance; all the merchants of España, the two Americas, and these islands; some foreigners; and many religious communities, who have set aside the proceeds of their funds for pious contributions—convinced of the benefits of this commerce, and of the prosperity which will ensue to the Spanish nation; and regarding it as certain that (as will be mentioned hereafter) our Spanish merchants, if assured of their gains by way of these seas, and the method of supplying the Americas, in great part, with the materials for clothing which they need, without the burden of the royal imposts, will not long for the illegal purchase of foreign commodities.19. There are also other advantages, worthy of being known, which render the above-mentioned project more feasible. One of these is the abundance of timber for the construction of ships; at least ten ships can be built every year in these islands; and, by taking care of their many forests, even if a hundred ships were built now there would be enough timber left to construct every year the ten that I have mentioned. The Viscount del Puerto greatly praises (in book 9, chapter 10, article 2 of hisReflecciones militares37) the project of a friend of his (whose name he conceals) for forming a company in these islands; and among the products which it yields he mentions the timber calledtiga(it is not known here by this name), extolling its strength, and setting forth the advantages of carrying this wood to España as ballast for the ships.20. This wood (of which, according to the said author, the strong ships of Philipinas are built) is in my opinion theteca[i.e., teak], which comes from the Coast; or that which is known here (and I am inclined to think that this is meant) by the name ofmolave. This abounds in all the islands, and is so compact that it petrifies in the water, which I myself have seen; of it are made the ribs of the ship’s frame, the knees, and all the principal timbers that strengthen the ship. The keels are made of another wood, equally strong, which is calledguijo; it never rots in the water, nor does the boring worm, which is bred on the ships in the port of Cavite, penetrate it.There are other woods as useful as theguijo, and among them is thedongon, which is better. As a rule, the lower masts are made from themangachapui, which is another timber of especial value; for, although it is somewhat heavy, it never splinters, and is very elastic. The yards and topmasts are ofpalo maria; and for whatever is made of boards thelavan, thebanaba, and thetangili38are also used, from which kinds of wood very long and broad planks are obtained. There are pines here, and various other kinds of trees, which can be put to the same use; and plantations could be made of thetecatree (the wood of which lasts more than a hundred years in the water), for there is more than enough land for this purpose in the vicinity of Manila and Cavite. Likewise, sawmills could be built, in order to save the expense of [hiring] sawyers; also dry-docks, for careening the ships and preserving them under cover.21. In Ilocos are manufactured the blankets which serve as sails for our ships; and canvas can be made (as it has been) of excellent quality and in enormous quantities, for there is no end to the cottonwhich is and can be gathered, with the greatest facility, and of the finest quality. Moreover, on the many tracts of land which the sloth of the Indians leaves untilled hemp could be cultivated—which, even if it should not yield well on the lands of one province, would without doubt succeed on those of another; for there is nothing among all the products of the earth which is not afforded by these islands, by searching for the climate—whether hot, cool, or temperate—which is suited to the needs of the crop. Flax would be produced with the same ease as hemp, without any other cultivation than that which rice receives on irrigated soil [en tubigan]; and the seed of both these plants has been sown, and is yielding very well, in the province of Cagayan.22. There is much pitch, and cordage is so abundant that it can be supplied to all the ships of España, with what is made here; and, in order that it may be evident whether it is suited for this purpose, I will explain in detail how on this may depend the question of saving the expense of purchasing cordage in foreign kingdoms, by availing ourselves of that produced in our own dominions. [The fiber used for] cordage is both white and black; the former is known by the name ofabaca, which is obtained from the bark of a tree resembling the plantain, the trunk of which is heckled like [the stems of] hemp. The fiber is very harsh; tar scorches it, and for this reason no tar is used in these ships; it is stronger than hemp, as experience has shown. It is usually of service no longer than for one voyage; the threads shrink much, and on this account all the cordage here is heavier than that of Europa. On twisting it, it is apt to break, and in order to avoid this it is cured by placingit for some time in salt water, and drying it in the sunshine, then storing it until it is needed; for if this precaution be not taken, and it becomes spattered or moistened with fresh water, it will soon become rotten. With some additional expense the cordage could be made finer and smaller, without changing its quality; it would then be more easily handled, and the manœuvers of the ships would be more expeditious.23. The [fiber for] black cordage (known ascabo negro)39is obtained from a plant which they callgamù, very similar to the coco, and it is a veil which covers the entire tree, from the top down; it grows out between each pair of leaves [entre òja y òja] of thegamù, like long hair, or tufts of hair. It is exceedingly harsh, and for this reason it is used only for cables, of all sizes, and to some extent for tackle and rigging; and there is nothing with which to compare its strength. It lasts many years, but it is necessary to keep it either under water, or uncovered, where the dew and the rains bathe it; and in dry weather water is thrown over it, either salt or fresh, for its better preservation; for if it stands in the sun and wind, without these precautions, the threads break, and it loses its extraordinary strength. It is also preserved by keeping it in a shady place, where the wind strikes it but little. These two kinds of cordage are exceedingly abundant in these islands.24. There is another sort of cordage, [made] from the husks of the coco, which is superior to the other two; for with the said fiber the ships can becalked, and [even] after many years thebonote(thus they call it) comes out as fresh, strong, and sound as on the day when it was thrust between the planks. Of this species also there is a great abundance.25. The anchors can be cast here, by putting into operation the iron mines of which mention has been made; and I can say the same of the cannons, the balls, the grape-shot, the bombs, and the grenades. For, I repeat, there is iron in these islands for supplying all the world, and there are men enough to mine and manufacture it, if there be brought from España some skilled directors (who are not found here). If it be desired to work the copper, there are mines of this also, although I cannot speak with the same certainty of these as of the iron mines; for I have not come across any records to show whether the said metal has been worked at any time, and what the product was. The same thing is true in regard to the lead mines, but I have seen ores from Paracale, which were smelted at Bacolor, by order of Don Simon de Anda; and I do not doubt that, if we had skilled master-workmen in this and other industries, many useful discoveries would be made through the agency of the aforesaid company, whose funds would allow the expenses that a private person is unable to incur.26. To this concourse of advantages ought to be added the most important one that our Indians are exceedingly ingenious in the construction of ships. They do not understand arithmetic, or proportions and measures, or the computation of the weights of the various parts, or anything which requires knowledge; but if they have masters who will furnish to them models of the works, they imitate everythingwith the greatest accuracy, for they have exceedingly keen eyesight, and indescribable facility in making whatever they see. For this reason we have here excellent carpenters, calkers, and the other artisans necessary for the construction of ships, and in whatever number may be desired.27. There is not an Indian in these islands who has not a remarkable inclination for the sea; nor is there at present in all the world a people more agile in manœuvers on shipboard, or who learn so quickly nautical terms and whatever a good mariner ought to know. Their disposition is most humble in the presence of a Spaniard, and they show him great respect; but they can teach many of the Spanish mariners who sail in these seas. In the ships of España there are sure to be some Indians from these islands, and investigation can be made to ascertain what they are. The little that I understand about them makes me think that these are a people most suited for the sea; and that, if the ships are manned with crews one-third Spaniards and the other two-thirds Indians, the best mariners of these islands can be obtained, and many of them be employed in our warships. There is hardly an Indian who has sailed the seas who does not understand the mariner’s compass, and therefore on this [Acapulco] trade-route there are some very skilful and dexterous helmsmen. Their disposition is cowardly, but, when placed on a ship, from which they cannot escape, they fight with spirit and courage.28. Let it be considered, then, whether these circumstances are worthy of regard, and highly advantageous for the company of which I am speaking—which likewise can save much money in the differenceof wages; and any one will reason that not one of the foreign companies has had the opportunities which these islands possess for the establishment of a company, since all these things which are easy and of little expense for the Spaniards were almost insuperable difficulties for the Dutch, the English, and the French—who succeeded in overcoming them by dint of silver, of conquests, and of fortifications; and by bringing from Europa supplies which we do not have to bring, because they abound in these islands.29. In order not to be prolix in relating other advantages which the companies in general possess, as compared with the commerce of private persons, I refer to those which are set forth by the distinguished Don Miguel Zavala (in his celebrated memorial40to Phelipe V of blessed memory), whose authority alone would be sufficient in order that no means should be neglected for establishing the aforesaid company in these islands; and I pass to other advantages which the said author explains. But first I will point out what relates to the fortunes in the Indias, which do not pass to the grandsons; this is accounted for by the vicious way in which the creoles, as a rule, are reared—the indolence and vices in which they are brought up, and the luxury and prodigality to which they are accustomed from childhood. If these fortunes, or the greater part of them, were [invested] in the company, they would not be so easily wasted; and, even if the sons should save nothingfrom the profits, they would keep the principal which their fathers might bequeath to them in the aforesaid company. Or, in case there were some persons so reckless as to sell their shares, others would buy these, and the commerce and its gains would always remain for the benefit of the Spaniards.30. With the funds of a company, enterprises could be undertaken that would be both extensive and easy. The province of Pampanga alone is capable of producing more sugar than can be consumed in China (to which the Sangleys carry it when it is cheap), in the coasts of Coromandel, Malabar, and Vengala (where it is scarce, and is sold at a high price), and in all the ports of India; having a market, all that is required of this product will be supplied in abundance, especially if the said company encourages the Indians to cultivate their lands. It would be the same with the dyes; and with deer’s hides, sinews, andtapa(or dried meat) which all come from the same province, and are sold to the Chinese who come here to trade. By establishing a mart in the capital [of Pampanga], on the company’s account, it will gather in all the said products, in exchange for cloth, especially if credit be given to some persons until the time of the harvest; and the gains will be enormous, since profits will be made on the sale of the cloth, on the purchase of the products, and on the export of these to other colonies.31. The same method ought to be observed in the other provinces for promoting the cultivation of the lands and the abundance of so highly valuable products as they yield; by this means there would be obtained in Pangasinan all the gold which the infidels bring down from the mountains there, whichexceeds three hundred thousand pesos each year, and with that which is brought from other provinces reaches five hundred thousand pesos. This commodity is very useful in all the commerce of India, and can also be carried to Europa, as is done by the English and Dutch, to whom regularly comes the gold from Philipinas; its current price is at the rate of sixteen pesos for the tae of 22-carat metal (each tae has the weight of ten reals), and in this ratio is purchased that of 21, 20, 19, and 18 carats.32. In the provinces of Ilocos and Cagayan there might be excellent factories, to work up the great amount of fine cotton which they produce; and, by bringing skilled workmen from the Coast, the figured cottons which are brought thence could be made [here]. In all the Visayan Islands, in the province of Camarines, and in that of Albay, are made the choicest and finest webs, which they callnipis; and others, of commoner quality, which they callguinaras, and use for shirts. In Cagayan and Ilocos are woven very fine handkerchiefs, towels, coverlets, table-linen (which is of as good quality as that made in Flandes),terlingas, etc.; and if only these provinces are stimulated, and factories established with good master-workmen, the company can easily manufacture at least all the cloth which the Indians consume. As these number a million of souls, if we allow to each one an average consumption of no more than one peso, this would amount to a million of pesos; and the greater part of this amount, which now the Chinese, the Dutch, and the English carry away, would remain in the islands, and would increase the profits of the Spaniards and the losses of the said foreigners.33. The cacao is very abundant and cheap, and if it could find a market in other colonies and kingdoms the crop of it would be still greater, because the Indians would devote themselves to its cultivation.41Entire groves of the coffee-tree could be planted, since it yields fruit everywhere; it is milder than that of Mage [i.e., Mocha?] and its fruit is gathered in the year when it is [first] planted, on account of the richness of the soil. Rice and wheat, if the natives applied themselves [to cultivating these], as they would do if they had a market for them, would be sold at good prices throughout China (where these grains are scarce), in Cochinchina, in Siam, in Camboja, in Pegu, and sometimes in the Malabar and Coromandel coasts. Wax—of which these mountains are full, and which is sold by the infidel Indians who inhabit them—has a great consumption here, and much of it is shipped to Nueva España; and if it were bartered for cloth, as was said above, it could be procured in greater quantity. Tobacco, oil, and sulphur are very abundant. Horses are valued in the said coasts, and, although there are many of them in these islands, there would be more if the ranchmen had a better sale for them; for at times they are accustomed to kill the horses, in order to dry their flesh and sell it. Carabaos and deer, whose flesh is likewisedried, yield some pesos. In fine, the following are recognized articles of merchandise in different places in China, Cochinchina, Camboja, and Siam: sugar, rice, cotton; indigo, dyes, sibucao (a sort of Brasil-wood), deer’s sinews, pepper, black tortoise-shell (calledcarey), nacre shells (or mother-of-pearl),42birds’-nests, ebony;tapa(or dried meat),balateandcamaron(both which are shellfish), andbonga; cables ofcabo negro—all of which commodities these islands produce. [To these must be added] cochineal from Nueva España, fine cloths and camlets from España; lead (which also is produced by these islands, although it is not mined), and other articles, as stated above, of which better information will be given by practical merchants.34. For Vengala, the Coromandel and Malabar coasts, Persia, Zurrate, and other parts of India, are found useful indigo, sugar, sibucao, sulphur, siguey, birds’-nests, cotton, rice, gold, and horses; and, in one word, all that has been said in the preceding chapter (speaking of the private commerce which could be carried on via the Cape of Good Hope) ought to be understood, with greater reason, of the commerce which can be carried on by the company of which this chapter treats. For this reason I omit what I said there of the cinnamon and other products which the company could develop, with its funds and systematic arrangements, better than an individual could; for the latter may die, and the former continues perpetually to carry on the enterprises of manufactures, mining operations, the cultivation andpromotion of crops, and the exportation of all these to foreign kingdoms and colonies. For all will be successful in these islands with the Indians, who, if well paid, will do what they are ordered to.4335. I have already mentioned the indescribable readiness with which our Indians learn perfectly whatever they see, even without the necessity of a master to instruct them. There are some who write well, without knowing how to read, as they have had no teacher; for by their natural inclination they devote themselves to imitation of the letters, and easily succeed in doing so, without being able to read what they write. This is one proof of their readiness, above mentioned, but they have still more of it in embroidery. It is a marvelous thing to see, that there is hardly an Indian who cannot embroider, and that they learn this art without any teacher save their own attention and their extraordinary patience. The hands of the Indian women are the most delicate, for every kind of sewing and needlework; and the company, by availing itself of this skill of our Indian men and women, could employ an innumerable number of people in embroidery, needlework, and the making of hose—they make them of fine quality, in Zebu of cotton, and in La Laguna of silk—and obtain much profit through these industries, in finding a market for them.36. Near Paracali in the province of Camarines there is abundance of rock crystal, very transparent and choice. In the province of Cagayan are some stones that are very singular and rare; one of theseis emerald-green veined with gold or golden-brown, and when well polished it looks like a mirror, or like the finest jasper. Another is a stone as white as marble, similar to that which abounds in the mountains of San Matheo near Manila (from which has been made the paved floor of the Society’s church in this city); and who knows what Nature is keeping concealed, for our enlightenment, in the provinces and mountains of these islands? Assiduity, good taste, and the desire for knowledge would discover many things if there were Spaniards here who would devote themselves to the investigation and examination of the many rarities in the plan of Nature.37. If there were any chemist and herbalist here, this likewise would be an immense aid for making further discoveries and experimenting with many trees, roots, herbs, and medicinal stones. For instance, thenarra;44in cups made from the wood of this tree water becomes, in a very short time, of a most beautiful blue color, and people say that it is useful for curing obstructions; the wood calledmanunga, which is extolled for its remarkable virtues; the seeds of thecatbalonga, or St. Ignatius’s kernels, which are already known and esteemed inEuropa; the shell in which the cocoanut grows, in which water soon becomes exceedingly bitter; bezoar stones; and innumerable other articles from which homely remedies are made here, among the Spaniards as well as among the Indians. The latter make much use of the remedies produced in the islands, and know some, both herbs and woods, which cure the most hideous and bloody wound in twenty-four hours. The rhubarb45may be smelled [sehuele] in many woodlands, and no one is acquainted with it; the herb of Calamba is especially good for preventing, by [the application of] its juice, the bad results of a blow or fall. More than all, in the mountains of Mindoro there is a tree calledcalinga, the bark of which has a delicious odor, which smells like cinnamon, cloves, and pepper all combined; I made a small quantity of chocolate, using the said bark powdered instead of cinnamon, and it was very pleasing to the taste. In the ship “Santissima Trinidad,” which the English captured, I was sending to Madrid some lozenges and many pieces of the said bark, which is a delicious flavor for seasoning ragouts; and I have used it in my household. Señor Anda also sent to Madrid the aforesaid bark, and, I think, chocolate made with it powdered. So great is the abundance of these trees that there are mountains, many leguas in extent, which produce them.38. If the foreigners had these trees, they would have already introduced in the world the use of thiscommodity, with enormous profits; and we, if we possessed industry, and zeal for the interests of the nation, would have been able with this tree, to lessen the consumption of the cinnamon and cloves of the Dutch. Let these points be considered, and the advantages will be recognized which can assuredly be expected by the company which may be formed in these islands—regarding it as certain that nothing will make progress, except by this means; rather, this colony will in a little while go wretchedly to destruction, without the least hope for its reëstablishment.39. By way of conclusion to this chapter, I will note as the last (and an important) advantage of the aforesaid company the conspicuously fair treatment and friendly reception which the Spaniards have experienced, and may expect, throughout India. Our silver [money] is in good repute in all regions, and those peoples, especially the Chinese and the princes of India, show the greatest eagerness and make great efforts to obtain it, as being the most valuable for them; and, although the Dutch, English, French and other powers trade in this part of the world with our pesos, the Spanish ships are always better received in those ports, because they carry more silver and more products of these islands, which are held in very evident esteem.40. Since I have been in Manila, I have seen only the traders from Canton and Emui in China visit this port,46except the ship “Guadalupe,” whichwent to the [Malabar?] Coast; and through its captain and officers I have heard of the friendly reception which they met in all the ports of India. But in other days the commerce of this colony was more extensive. In China it was established in the year 1598, and has been maintained without interruption; the king of Camboja asked this government for aid, and it was sent to him in the year 1594, leaving commerce with that country established. In the same year the king of Siam sent an embassy to open commerce with these islands, and in 1599 the said commerce was actually begun, by vessels which went from these islands, and which came from Siam, with which country the Spaniards have maintained the most friendly relations. This was recently experienced in the case of the ship which was built there inthe year 53, by order of our governor the Marques de Ovando, who sent thither letters for the said king of Siam; and the latter, in virtue of these, furnished a sufficient sum of money, and gave all the other assistance which they asked from him. In the year 718, the same king of Siam granted a piece of land, in order that the Spaniards might establish a trading-post there.41. In the year 1596, commerce with these islands was established in Cochinchina, and the Spaniards declined to establish a trading-post [on the land] which this king afterward bestowed upon them. In Tunquin also the Spaniards undertook their commerce; and in Zurrate, Vengala, and other kingdoms of India, both Moorish and heathen, they have been equally well received. Although, on account of the reverses of this commonwealth and the lack of courage in its merchants, the Spaniards have given up this commerce for several years past, it cannot be doubted that the aforesaid company has the opportunity to establish itself advantageously, furnishing a market for the products of these islands, bringing hither those of the said kingdoms, and establishing (if that shall be expedient) some trading-posts—with which their purchases will be at more reasonable prices, and their gains in España and Nueva España more assured.42. Here at the same time another advantage presents itself. The commerce which now is carried on with Acapulco by private persons suffers many losses, occasioned by the unsuccessful fairs there. These losses originate in the necessity of selling the goods in order to send back [to Manila] the money that they produce; for even if the merchants lose in the sale something on the principal which they shipped,it is necessary to sell their goods in order to repay what they obtained from theobras piasfor their investments. If the goods are left in Nueva España, in order to take advantage of an opportunity for better sale, they cannot meet the cost of the expenses, and here find themselves tormented by their creditors. The company cannot be placed in such straits, but will always sell their wares to advantage and profit; for when in Acapulco they do not obtain good returns on the merchandise, they can transfer it to the storehouse which they will have to establish in Mexico. This expedient alone will be sufficient to induce the Mexicans to make strenuous endeavors to be preferred in the sale at the said port, because they will not deceive the said company as they now do private persons, acting aggressively against them, in order to fix arbitrarily the prices of their goods—constrained as our merchants are to sell them, on account of the limitation of the time [of the fair], since the galleons ought to sail from the said port by the twenty-fifth of March.43. I will conclude this chapter with the authority of the celebrated Don Geronimo Ustariz,47who, although he disapproves the commerce [managed] by companies in España and the Americas, considers it expedient in these islands; and indeed, when his arguments against the establishment of the said companies are examined, it will be seen that they do not apply to this commerce—where, on the contrary, it will be seen that not even the least progress can besecured, unless the company of which I am speaking be formed.44. The same author, speaking of the commerce in spices, is inclined to think that it ought to be carried on directly by the Spaniards, by the same route which other nations adopt for it, arranging the purchases in these islands in order to supply the Americas and all España by the ports of Acapulco, Panama, and Portovelo. This exhibits the utility of what I have herein set forth, for it is confirmed by the three most earnest and distinguished Spaniards of this century, to wit, the Visconde del Puerto, Don Miguel de Zabala, and Don Geronimo Ustariz. But I am surprised that this last-named writer, who treats the subject of commerce so extensively and so acutely, with the greatest erudition and knowledge of whatever there is to be known of foreign nations and countries, should be ignorant that these islands produce in abundance cinnamon, pepper, and nutmeg, which, without the necessity of buying it from the Dutch, we can use for our benefit, in order to supply all our own dominions. This is a proof that the Spaniards of Philipinas do not apply themselves to becoming acquainted with this country, in order to make known its products; and that they would not be [thus] ignorant if the alcaldes-mayor would make reports—one to their successors, and another to the government—of the condition of each province, as I advised his Majesty in the past year of 1760.

Chapter Fourth: Of the necessity for forming a company in these islands1. By a royal decree dated at Sevilla on March 23, 1733 (in which the project was carried out which was approved by his Majesty on April 26, 1732), there was established by our lord Don Phelipe Fifth, of undying memory, a company with the name of “Royal Company of Philipinas,”35under fifty-eight articles and stipulations. These were full of the most unusual privileges and liberties that can be granted, and were even more advantageous to the Spaniards than those which Louis Fourteenth granted to the French for their Oriental Company; but I do not know exactly for what reason—some attribute it to the loss of Torres’s trading-fleet—the paternal affection did not prove effectual with which our beloved king and sovereign took an interest in making the Spanish monarchy prosperous by the extension and promotion of commerce (the only means for securing wealth), imitating the examples of almost all the nations of Europa, who, in order to become rich, have established their companies in the Orient.2–12. [In these sections Viana expands this last statement, enumerating the nations who have enriched themselves by the Oriental trade, and the companies formed in each for this purpose. First were the Genovese and Venetians, who traded with India by way of the Red Sea; they were afterward driven out of this trade by the Portuguese, in consequence of the discovery by the latter of the route via Cape of Good Hope. (Section 3.) “Portuguese trading-fleets of thirty ships came to the commerce of India every year, and for Brasil alone sailed fifteen to twentyships laden with merchandise from India—besides others which carried on trade in China, Japon, Persia, Arabía, Mosambique, Melinda, Sofala, and other regions. But now that commerce is so reduced that only one or, at most, two ships sail from Lisboa yearly, which would not be the case if they had established a company with adequate capital, which is the only way of making commerce lasting.” The Dutch at first bought spices from the Portuguese, and then resold them at a huge profit to the other European nations; but Phelipe II prohibited the spice trade to Portugal, and the Dutch therefore formed a company to operate in the Orient, and trade directly with its peoples. As finally constituted in 1602, this company had (section 6) a capital of 6,600,000 florins (“according to Savary”); and “in less than four years the members received the principal of their shares with the great profits which they obtained.” At the time of Viana’s writing, the Dutch company were maintaining “twelve thousand men, regular troops, in their twenty-five fortresses in India, and were able to equip 30,000 militia in their colonies, especially that of Batavia” (Savary). Viana cites another authority, Samuel Ricard, who places this militia force at 100,000, and states that the company employed in the Eastern trade more than 160 ships, each carrying thirty to sixty cannon, besides forty ships of the line (which number was increased in time of war). This enterprise ruined the commerce of the Portuguese (who had been the first to open the sea-route to India); “from that time until now it has steadily diminished, and is the poorest in all India; this has been the result of their not having formed a company with capital, and withrespectable forces to oppose the conquests which the Dutch made. For they had a better opportunity than the latter, and it would have cost them less to maintain a flourishing commerce, as was that which they already possessed, than it cost the Dutch to establish a new commerce by dint of money, conquests, fortifications, and enormous expenses.” The English company (section 8) sent out its first fleet (of four ships) in the year 1600; its capital was 369,891 pounds sterling. After various fluctuations of fortune, it was reëstablished in 1698, and attained great prosperity, so that its capital had increased to 1,703,422 pounds. In Viana’s time, “the ships from Madrast for London (more than fifty in number) carry annual cargoes of five to six million pounds, according to the estimate of Sabary; and, taking into consideration the increase which this commerce has had since he published his famous work, the ‘Universal Dictionary,’ it must by this time be worth some ten millions. This does not include the operations of the private English traders who traffic among the colonies of India; this may be inferred from the duties which they pay in Madrast, which, at the rate of five per cent, produce for the company 80,000 pagodas. This sum amounts to 120,000 or 130,000 pesos, estimating the pagoda at twelve and sometimes thirteen silver reals.” The English company were maintaining in constant operation 150 ships and fragatas, and more than fifty smaller vessels, employed in their commerce between India and London alone; to the great expenses of this navy must be added those of the company’s forts and garrisons in India, which indicate how enormous were their profits. An Englishman told Viana that the king ofEngland was owing to the company more than 36,000,000 pesos, the amount of loans which they had made to the crown in various emergencies. The Oriental commerce of the Dutch was further encroached upon (section 11) by the trading companies formed later in France, Sweden, and Denmark, and proposed in Prussia;36these were protected and fosteredby their respective governments. The commerce of the Dutch “would have been ruined if it were not for their being exclusive owners of the spice trade—of which only the Spaniards are able to deprive them, since we have in these islands cinnamon, pepper, cloves, and nutmeg.” As all those nations maintained forts, garrisons, and war-ships, the necessity of opposing these armaments with like forces has imposed on the Dutch enormous additional expenses. Viana says (section 12): “I know not what reason there can be why that which is so beneficial to all the powers should not, with even greater cause, be an advantage to España, which holds her conquests in peaceable possession, and has valuable products in her dominions; moreover, she has forts and ports which at little cost can be rendered impregnable, and better opportunities than any other nation for a very flourishing commerce. Yet she labors only to enrichher enemies, abandoning to them the commerce which our people are unwilling to carry on, and surrendering to them our treasures and wealth, in exchange for the greater part of the commodities and products which our own lands produce.”]13. If the Spaniards would form a company in the islands, similar to the foreign companies, and according to the pious anxiety with which the magnanimous heart of our beloved king and sovereign Don Phelipe Fifth, of undying memory, was concerned in this matter, all the nations who trade in India would have the same experience as the Portuguese and Dutch. Our commerce would annihilate or [at least] diminish that of all the India companies, who cannot find a market for their goods if they do not trade these in our dominions—and this they could not do if the Spanish company had large capital, and ships for navigation and trade in España and the Americas. If we could fortify the towns and garrison them, as has already been explained, the other nations would find themselves under the necessity of spending much more than they now do, in order to defend themselves against our power, if war should break out. This increase of expenses on the one hand, and diminution of their commerce on the other, are two excellent principles, which promise many advantages to the Spanish company—which, as it is not, like the others, compelled to incur these expenses, will be able to sell its commodities at lower prices, and the gains will be more certain.14. In order to facilitate the establishment of this most beneficial company, the royal protection of our sovereign is absolutely necessary, and with it must be banished the contemptuous notion that the Spaniardsform of the commercial career; for that notion usually leads them to keep their chests full of silver, for which they sell the products of their family estates. As a rule, the Spaniards spend with great economy what is necessary for their maintenance, especially those in the little hamlets throughout the kingdom; and, as they enjoy no commerce, they deprive themselves of the benefits arising from commercial activities, with detriment to their families and to the public welfare. On the other hand, they imagine that there is too great a risk in the remittance of their silver by sea, because they are so little (or not at all) acquainted with nautical science and mercantile affairs; and, as timidity prevails in their minds over ambition, they consider themselves fortunate to keep their riches under their own eyes, without thinking of investing them. But they would take hazards on their money, if they were touched by that eager desire for gain which is inseparable from all commerce, and which is stimulated by the lure of profits.15. There are, of course, many persons whose ability enables them to understand thoroughly the benefits of commerce; but they live remote from the marine ports, they have not trustworthy acquaintances to whom they can confide the management of their capital, and they sorrowfully deprive themselves of the benefits which they would derive from its employment, the result of which is that they lead idle lives, or sometimes yield to an extravagance which is excessive and impairs their fortunes. Even more melancholy than all that I have related is the sight of the Spanish nobility, without any occupation, and, as a rule, reared in extreme ignorance and idleness.This is the source of many excesses, the beginning of ruin to the most robust constitutions, a hindrance to the generation of children, and a cause of the lessening of population which is continually growing more worthy of consideration.16. Let there be formed, then, an Oriental company, and let the nobles of the kingdom contribute its funds; the profits [on these] will awaken in them a liking for commerce, and they will become acquainted with this most useful branch of knowledge. They will maintain their [business] relations, they will have some occupation, and will not use up their fortunes with vicious habits; their children will be brought up with a liking for commerce, and the fathers will have the satisfaction of employing some of their sons in appointments under the same company. This is the most certain means for securing the happiness of families and the prosperity of the entire monarchy; for, if commerce and the naval service (which follows the other closely) are promoted, there will be no vagabonds or idlers. Rather, idleness will come to an end, and with it many vices, on account of the enormous number of men whom a company with large capital needs to employ by land and sea—not only for its business positions, but for manufactures and navigation, in which persons from all spheres of life find an opening.17. What a number of people must be employed by the English and Dutch companies in the more than one hundred and fifty ships which each company maintains for its commerce, and in the various colonies in which they have established that commerce! And what advantages result to these two powers from keeping so many people busy, maintainingthem at the company’s expense, and freeing them from the idleness in which they would [otherwise] live! If those countries had not so great a commerce, vagabonds and idlers would abound in them; but this class of people is not seen there. On the contrary, there is great application to all the arts and sciences; for all have employment, and all are useful—some in manufactures, others in the military or the naval service, and others in commerce, etc.18. The attainment of these fortunate advantages depends on whether our beloved king and sovereign will assure to his vassals all his royal protection for the promotion of the said company, following the example of his glorious father, Don Phelipe Fifth, ever to be remembered; for the money of the royal treasury is the main foundation for this great and most useful enterprise. For it cannot be doubted that, animated by the same spirit, there will be many contributors to the capital of the said company—all the nobility of España, from the highest rank down; the guilds of Madrid, which now form a body of considerable importance; all the merchants of España, the two Americas, and these islands; some foreigners; and many religious communities, who have set aside the proceeds of their funds for pious contributions—convinced of the benefits of this commerce, and of the prosperity which will ensue to the Spanish nation; and regarding it as certain that (as will be mentioned hereafter) our Spanish merchants, if assured of their gains by way of these seas, and the method of supplying the Americas, in great part, with the materials for clothing which they need, without the burden of the royal imposts, will not long for the illegal purchase of foreign commodities.19. There are also other advantages, worthy of being known, which render the above-mentioned project more feasible. One of these is the abundance of timber for the construction of ships; at least ten ships can be built every year in these islands; and, by taking care of their many forests, even if a hundred ships were built now there would be enough timber left to construct every year the ten that I have mentioned. The Viscount del Puerto greatly praises (in book 9, chapter 10, article 2 of hisReflecciones militares37) the project of a friend of his (whose name he conceals) for forming a company in these islands; and among the products which it yields he mentions the timber calledtiga(it is not known here by this name), extolling its strength, and setting forth the advantages of carrying this wood to España as ballast for the ships.20. This wood (of which, according to the said author, the strong ships of Philipinas are built) is in my opinion theteca[i.e., teak], which comes from the Coast; or that which is known here (and I am inclined to think that this is meant) by the name ofmolave. This abounds in all the islands, and is so compact that it petrifies in the water, which I myself have seen; of it are made the ribs of the ship’s frame, the knees, and all the principal timbers that strengthen the ship. The keels are made of another wood, equally strong, which is calledguijo; it never rots in the water, nor does the boring worm, which is bred on the ships in the port of Cavite, penetrate it.There are other woods as useful as theguijo, and among them is thedongon, which is better. As a rule, the lower masts are made from themangachapui, which is another timber of especial value; for, although it is somewhat heavy, it never splinters, and is very elastic. The yards and topmasts are ofpalo maria; and for whatever is made of boards thelavan, thebanaba, and thetangili38are also used, from which kinds of wood very long and broad planks are obtained. There are pines here, and various other kinds of trees, which can be put to the same use; and plantations could be made of thetecatree (the wood of which lasts more than a hundred years in the water), for there is more than enough land for this purpose in the vicinity of Manila and Cavite. Likewise, sawmills could be built, in order to save the expense of [hiring] sawyers; also dry-docks, for careening the ships and preserving them under cover.21. In Ilocos are manufactured the blankets which serve as sails for our ships; and canvas can be made (as it has been) of excellent quality and in enormous quantities, for there is no end to the cottonwhich is and can be gathered, with the greatest facility, and of the finest quality. Moreover, on the many tracts of land which the sloth of the Indians leaves untilled hemp could be cultivated—which, even if it should not yield well on the lands of one province, would without doubt succeed on those of another; for there is nothing among all the products of the earth which is not afforded by these islands, by searching for the climate—whether hot, cool, or temperate—which is suited to the needs of the crop. Flax would be produced with the same ease as hemp, without any other cultivation than that which rice receives on irrigated soil [en tubigan]; and the seed of both these plants has been sown, and is yielding very well, in the province of Cagayan.22. There is much pitch, and cordage is so abundant that it can be supplied to all the ships of España, with what is made here; and, in order that it may be evident whether it is suited for this purpose, I will explain in detail how on this may depend the question of saving the expense of purchasing cordage in foreign kingdoms, by availing ourselves of that produced in our own dominions. [The fiber used for] cordage is both white and black; the former is known by the name ofabaca, which is obtained from the bark of a tree resembling the plantain, the trunk of which is heckled like [the stems of] hemp. The fiber is very harsh; tar scorches it, and for this reason no tar is used in these ships; it is stronger than hemp, as experience has shown. It is usually of service no longer than for one voyage; the threads shrink much, and on this account all the cordage here is heavier than that of Europa. On twisting it, it is apt to break, and in order to avoid this it is cured by placingit for some time in salt water, and drying it in the sunshine, then storing it until it is needed; for if this precaution be not taken, and it becomes spattered or moistened with fresh water, it will soon become rotten. With some additional expense the cordage could be made finer and smaller, without changing its quality; it would then be more easily handled, and the manœuvers of the ships would be more expeditious.23. The [fiber for] black cordage (known ascabo negro)39is obtained from a plant which they callgamù, very similar to the coco, and it is a veil which covers the entire tree, from the top down; it grows out between each pair of leaves [entre òja y òja] of thegamù, like long hair, or tufts of hair. It is exceedingly harsh, and for this reason it is used only for cables, of all sizes, and to some extent for tackle and rigging; and there is nothing with which to compare its strength. It lasts many years, but it is necessary to keep it either under water, or uncovered, where the dew and the rains bathe it; and in dry weather water is thrown over it, either salt or fresh, for its better preservation; for if it stands in the sun and wind, without these precautions, the threads break, and it loses its extraordinary strength. It is also preserved by keeping it in a shady place, where the wind strikes it but little. These two kinds of cordage are exceedingly abundant in these islands.24. There is another sort of cordage, [made] from the husks of the coco, which is superior to the other two; for with the said fiber the ships can becalked, and [even] after many years thebonote(thus they call it) comes out as fresh, strong, and sound as on the day when it was thrust between the planks. Of this species also there is a great abundance.25. The anchors can be cast here, by putting into operation the iron mines of which mention has been made; and I can say the same of the cannons, the balls, the grape-shot, the bombs, and the grenades. For, I repeat, there is iron in these islands for supplying all the world, and there are men enough to mine and manufacture it, if there be brought from España some skilled directors (who are not found here). If it be desired to work the copper, there are mines of this also, although I cannot speak with the same certainty of these as of the iron mines; for I have not come across any records to show whether the said metal has been worked at any time, and what the product was. The same thing is true in regard to the lead mines, but I have seen ores from Paracale, which were smelted at Bacolor, by order of Don Simon de Anda; and I do not doubt that, if we had skilled master-workmen in this and other industries, many useful discoveries would be made through the agency of the aforesaid company, whose funds would allow the expenses that a private person is unable to incur.26. To this concourse of advantages ought to be added the most important one that our Indians are exceedingly ingenious in the construction of ships. They do not understand arithmetic, or proportions and measures, or the computation of the weights of the various parts, or anything which requires knowledge; but if they have masters who will furnish to them models of the works, they imitate everythingwith the greatest accuracy, for they have exceedingly keen eyesight, and indescribable facility in making whatever they see. For this reason we have here excellent carpenters, calkers, and the other artisans necessary for the construction of ships, and in whatever number may be desired.27. There is not an Indian in these islands who has not a remarkable inclination for the sea; nor is there at present in all the world a people more agile in manœuvers on shipboard, or who learn so quickly nautical terms and whatever a good mariner ought to know. Their disposition is most humble in the presence of a Spaniard, and they show him great respect; but they can teach many of the Spanish mariners who sail in these seas. In the ships of España there are sure to be some Indians from these islands, and investigation can be made to ascertain what they are. The little that I understand about them makes me think that these are a people most suited for the sea; and that, if the ships are manned with crews one-third Spaniards and the other two-thirds Indians, the best mariners of these islands can be obtained, and many of them be employed in our warships. There is hardly an Indian who has sailed the seas who does not understand the mariner’s compass, and therefore on this [Acapulco] trade-route there are some very skilful and dexterous helmsmen. Their disposition is cowardly, but, when placed on a ship, from which they cannot escape, they fight with spirit and courage.28. Let it be considered, then, whether these circumstances are worthy of regard, and highly advantageous for the company of which I am speaking—which likewise can save much money in the differenceof wages; and any one will reason that not one of the foreign companies has had the opportunities which these islands possess for the establishment of a company, since all these things which are easy and of little expense for the Spaniards were almost insuperable difficulties for the Dutch, the English, and the French—who succeeded in overcoming them by dint of silver, of conquests, and of fortifications; and by bringing from Europa supplies which we do not have to bring, because they abound in these islands.29. In order not to be prolix in relating other advantages which the companies in general possess, as compared with the commerce of private persons, I refer to those which are set forth by the distinguished Don Miguel Zavala (in his celebrated memorial40to Phelipe V of blessed memory), whose authority alone would be sufficient in order that no means should be neglected for establishing the aforesaid company in these islands; and I pass to other advantages which the said author explains. But first I will point out what relates to the fortunes in the Indias, which do not pass to the grandsons; this is accounted for by the vicious way in which the creoles, as a rule, are reared—the indolence and vices in which they are brought up, and the luxury and prodigality to which they are accustomed from childhood. If these fortunes, or the greater part of them, were [invested] in the company, they would not be so easily wasted; and, even if the sons should save nothingfrom the profits, they would keep the principal which their fathers might bequeath to them in the aforesaid company. Or, in case there were some persons so reckless as to sell their shares, others would buy these, and the commerce and its gains would always remain for the benefit of the Spaniards.30. With the funds of a company, enterprises could be undertaken that would be both extensive and easy. The province of Pampanga alone is capable of producing more sugar than can be consumed in China (to which the Sangleys carry it when it is cheap), in the coasts of Coromandel, Malabar, and Vengala (where it is scarce, and is sold at a high price), and in all the ports of India; having a market, all that is required of this product will be supplied in abundance, especially if the said company encourages the Indians to cultivate their lands. It would be the same with the dyes; and with deer’s hides, sinews, andtapa(or dried meat) which all come from the same province, and are sold to the Chinese who come here to trade. By establishing a mart in the capital [of Pampanga], on the company’s account, it will gather in all the said products, in exchange for cloth, especially if credit be given to some persons until the time of the harvest; and the gains will be enormous, since profits will be made on the sale of the cloth, on the purchase of the products, and on the export of these to other colonies.31. The same method ought to be observed in the other provinces for promoting the cultivation of the lands and the abundance of so highly valuable products as they yield; by this means there would be obtained in Pangasinan all the gold which the infidels bring down from the mountains there, whichexceeds three hundred thousand pesos each year, and with that which is brought from other provinces reaches five hundred thousand pesos. This commodity is very useful in all the commerce of India, and can also be carried to Europa, as is done by the English and Dutch, to whom regularly comes the gold from Philipinas; its current price is at the rate of sixteen pesos for the tae of 22-carat metal (each tae has the weight of ten reals), and in this ratio is purchased that of 21, 20, 19, and 18 carats.32. In the provinces of Ilocos and Cagayan there might be excellent factories, to work up the great amount of fine cotton which they produce; and, by bringing skilled workmen from the Coast, the figured cottons which are brought thence could be made [here]. In all the Visayan Islands, in the province of Camarines, and in that of Albay, are made the choicest and finest webs, which they callnipis; and others, of commoner quality, which they callguinaras, and use for shirts. In Cagayan and Ilocos are woven very fine handkerchiefs, towels, coverlets, table-linen (which is of as good quality as that made in Flandes),terlingas, etc.; and if only these provinces are stimulated, and factories established with good master-workmen, the company can easily manufacture at least all the cloth which the Indians consume. As these number a million of souls, if we allow to each one an average consumption of no more than one peso, this would amount to a million of pesos; and the greater part of this amount, which now the Chinese, the Dutch, and the English carry away, would remain in the islands, and would increase the profits of the Spaniards and the losses of the said foreigners.33. The cacao is very abundant and cheap, and if it could find a market in other colonies and kingdoms the crop of it would be still greater, because the Indians would devote themselves to its cultivation.41Entire groves of the coffee-tree could be planted, since it yields fruit everywhere; it is milder than that of Mage [i.e., Mocha?] and its fruit is gathered in the year when it is [first] planted, on account of the richness of the soil. Rice and wheat, if the natives applied themselves [to cultivating these], as they would do if they had a market for them, would be sold at good prices throughout China (where these grains are scarce), in Cochinchina, in Siam, in Camboja, in Pegu, and sometimes in the Malabar and Coromandel coasts. Wax—of which these mountains are full, and which is sold by the infidel Indians who inhabit them—has a great consumption here, and much of it is shipped to Nueva España; and if it were bartered for cloth, as was said above, it could be procured in greater quantity. Tobacco, oil, and sulphur are very abundant. Horses are valued in the said coasts, and, although there are many of them in these islands, there would be more if the ranchmen had a better sale for them; for at times they are accustomed to kill the horses, in order to dry their flesh and sell it. Carabaos and deer, whose flesh is likewisedried, yield some pesos. In fine, the following are recognized articles of merchandise in different places in China, Cochinchina, Camboja, and Siam: sugar, rice, cotton; indigo, dyes, sibucao (a sort of Brasil-wood), deer’s sinews, pepper, black tortoise-shell (calledcarey), nacre shells (or mother-of-pearl),42birds’-nests, ebony;tapa(or dried meat),balateandcamaron(both which are shellfish), andbonga; cables ofcabo negro—all of which commodities these islands produce. [To these must be added] cochineal from Nueva España, fine cloths and camlets from España; lead (which also is produced by these islands, although it is not mined), and other articles, as stated above, of which better information will be given by practical merchants.34. For Vengala, the Coromandel and Malabar coasts, Persia, Zurrate, and other parts of India, are found useful indigo, sugar, sibucao, sulphur, siguey, birds’-nests, cotton, rice, gold, and horses; and, in one word, all that has been said in the preceding chapter (speaking of the private commerce which could be carried on via the Cape of Good Hope) ought to be understood, with greater reason, of the commerce which can be carried on by the company of which this chapter treats. For this reason I omit what I said there of the cinnamon and other products which the company could develop, with its funds and systematic arrangements, better than an individual could; for the latter may die, and the former continues perpetually to carry on the enterprises of manufactures, mining operations, the cultivation andpromotion of crops, and the exportation of all these to foreign kingdoms and colonies. For all will be successful in these islands with the Indians, who, if well paid, will do what they are ordered to.4335. I have already mentioned the indescribable readiness with which our Indians learn perfectly whatever they see, even without the necessity of a master to instruct them. There are some who write well, without knowing how to read, as they have had no teacher; for by their natural inclination they devote themselves to imitation of the letters, and easily succeed in doing so, without being able to read what they write. This is one proof of their readiness, above mentioned, but they have still more of it in embroidery. It is a marvelous thing to see, that there is hardly an Indian who cannot embroider, and that they learn this art without any teacher save their own attention and their extraordinary patience. The hands of the Indian women are the most delicate, for every kind of sewing and needlework; and the company, by availing itself of this skill of our Indian men and women, could employ an innumerable number of people in embroidery, needlework, and the making of hose—they make them of fine quality, in Zebu of cotton, and in La Laguna of silk—and obtain much profit through these industries, in finding a market for them.36. Near Paracali in the province of Camarines there is abundance of rock crystal, very transparent and choice. In the province of Cagayan are some stones that are very singular and rare; one of theseis emerald-green veined with gold or golden-brown, and when well polished it looks like a mirror, or like the finest jasper. Another is a stone as white as marble, similar to that which abounds in the mountains of San Matheo near Manila (from which has been made the paved floor of the Society’s church in this city); and who knows what Nature is keeping concealed, for our enlightenment, in the provinces and mountains of these islands? Assiduity, good taste, and the desire for knowledge would discover many things if there were Spaniards here who would devote themselves to the investigation and examination of the many rarities in the plan of Nature.37. If there were any chemist and herbalist here, this likewise would be an immense aid for making further discoveries and experimenting with many trees, roots, herbs, and medicinal stones. For instance, thenarra;44in cups made from the wood of this tree water becomes, in a very short time, of a most beautiful blue color, and people say that it is useful for curing obstructions; the wood calledmanunga, which is extolled for its remarkable virtues; the seeds of thecatbalonga, or St. Ignatius’s kernels, which are already known and esteemed inEuropa; the shell in which the cocoanut grows, in which water soon becomes exceedingly bitter; bezoar stones; and innumerable other articles from which homely remedies are made here, among the Spaniards as well as among the Indians. The latter make much use of the remedies produced in the islands, and know some, both herbs and woods, which cure the most hideous and bloody wound in twenty-four hours. The rhubarb45may be smelled [sehuele] in many woodlands, and no one is acquainted with it; the herb of Calamba is especially good for preventing, by [the application of] its juice, the bad results of a blow or fall. More than all, in the mountains of Mindoro there is a tree calledcalinga, the bark of which has a delicious odor, which smells like cinnamon, cloves, and pepper all combined; I made a small quantity of chocolate, using the said bark powdered instead of cinnamon, and it was very pleasing to the taste. In the ship “Santissima Trinidad,” which the English captured, I was sending to Madrid some lozenges and many pieces of the said bark, which is a delicious flavor for seasoning ragouts; and I have used it in my household. Señor Anda also sent to Madrid the aforesaid bark, and, I think, chocolate made with it powdered. So great is the abundance of these trees that there are mountains, many leguas in extent, which produce them.38. If the foreigners had these trees, they would have already introduced in the world the use of thiscommodity, with enormous profits; and we, if we possessed industry, and zeal for the interests of the nation, would have been able with this tree, to lessen the consumption of the cinnamon and cloves of the Dutch. Let these points be considered, and the advantages will be recognized which can assuredly be expected by the company which may be formed in these islands—regarding it as certain that nothing will make progress, except by this means; rather, this colony will in a little while go wretchedly to destruction, without the least hope for its reëstablishment.39. By way of conclusion to this chapter, I will note as the last (and an important) advantage of the aforesaid company the conspicuously fair treatment and friendly reception which the Spaniards have experienced, and may expect, throughout India. Our silver [money] is in good repute in all regions, and those peoples, especially the Chinese and the princes of India, show the greatest eagerness and make great efforts to obtain it, as being the most valuable for them; and, although the Dutch, English, French and other powers trade in this part of the world with our pesos, the Spanish ships are always better received in those ports, because they carry more silver and more products of these islands, which are held in very evident esteem.40. Since I have been in Manila, I have seen only the traders from Canton and Emui in China visit this port,46except the ship “Guadalupe,” whichwent to the [Malabar?] Coast; and through its captain and officers I have heard of the friendly reception which they met in all the ports of India. But in other days the commerce of this colony was more extensive. In China it was established in the year 1598, and has been maintained without interruption; the king of Camboja asked this government for aid, and it was sent to him in the year 1594, leaving commerce with that country established. In the same year the king of Siam sent an embassy to open commerce with these islands, and in 1599 the said commerce was actually begun, by vessels which went from these islands, and which came from Siam, with which country the Spaniards have maintained the most friendly relations. This was recently experienced in the case of the ship which was built there inthe year 53, by order of our governor the Marques de Ovando, who sent thither letters for the said king of Siam; and the latter, in virtue of these, furnished a sufficient sum of money, and gave all the other assistance which they asked from him. In the year 718, the same king of Siam granted a piece of land, in order that the Spaniards might establish a trading-post there.41. In the year 1596, commerce with these islands was established in Cochinchina, and the Spaniards declined to establish a trading-post [on the land] which this king afterward bestowed upon them. In Tunquin also the Spaniards undertook their commerce; and in Zurrate, Vengala, and other kingdoms of India, both Moorish and heathen, they have been equally well received. Although, on account of the reverses of this commonwealth and the lack of courage in its merchants, the Spaniards have given up this commerce for several years past, it cannot be doubted that the aforesaid company has the opportunity to establish itself advantageously, furnishing a market for the products of these islands, bringing hither those of the said kingdoms, and establishing (if that shall be expedient) some trading-posts—with which their purchases will be at more reasonable prices, and their gains in España and Nueva España more assured.42. Here at the same time another advantage presents itself. The commerce which now is carried on with Acapulco by private persons suffers many losses, occasioned by the unsuccessful fairs there. These losses originate in the necessity of selling the goods in order to send back [to Manila] the money that they produce; for even if the merchants lose in the sale something on the principal which they shipped,it is necessary to sell their goods in order to repay what they obtained from theobras piasfor their investments. If the goods are left in Nueva España, in order to take advantage of an opportunity for better sale, they cannot meet the cost of the expenses, and here find themselves tormented by their creditors. The company cannot be placed in such straits, but will always sell their wares to advantage and profit; for when in Acapulco they do not obtain good returns on the merchandise, they can transfer it to the storehouse which they will have to establish in Mexico. This expedient alone will be sufficient to induce the Mexicans to make strenuous endeavors to be preferred in the sale at the said port, because they will not deceive the said company as they now do private persons, acting aggressively against them, in order to fix arbitrarily the prices of their goods—constrained as our merchants are to sell them, on account of the limitation of the time [of the fair], since the galleons ought to sail from the said port by the twenty-fifth of March.43. I will conclude this chapter with the authority of the celebrated Don Geronimo Ustariz,47who, although he disapproves the commerce [managed] by companies in España and the Americas, considers it expedient in these islands; and indeed, when his arguments against the establishment of the said companies are examined, it will be seen that they do not apply to this commerce—where, on the contrary, it will be seen that not even the least progress can besecured, unless the company of which I am speaking be formed.44. The same author, speaking of the commerce in spices, is inclined to think that it ought to be carried on directly by the Spaniards, by the same route which other nations adopt for it, arranging the purchases in these islands in order to supply the Americas and all España by the ports of Acapulco, Panama, and Portovelo. This exhibits the utility of what I have herein set forth, for it is confirmed by the three most earnest and distinguished Spaniards of this century, to wit, the Visconde del Puerto, Don Miguel de Zabala, and Don Geronimo Ustariz. But I am surprised that this last-named writer, who treats the subject of commerce so extensively and so acutely, with the greatest erudition and knowledge of whatever there is to be known of foreign nations and countries, should be ignorant that these islands produce in abundance cinnamon, pepper, and nutmeg, which, without the necessity of buying it from the Dutch, we can use for our benefit, in order to supply all our own dominions. This is a proof that the Spaniards of Philipinas do not apply themselves to becoming acquainted with this country, in order to make known its products; and that they would not be [thus] ignorant if the alcaldes-mayor would make reports—one to their successors, and another to the government—of the condition of each province, as I advised his Majesty in the past year of 1760.

Chapter Fourth: Of the necessity for forming a company in these islands1. By a royal decree dated at Sevilla on March 23, 1733 (in which the project was carried out which was approved by his Majesty on April 26, 1732), there was established by our lord Don Phelipe Fifth, of undying memory, a company with the name of “Royal Company of Philipinas,”35under fifty-eight articles and stipulations. These were full of the most unusual privileges and liberties that can be granted, and were even more advantageous to the Spaniards than those which Louis Fourteenth granted to the French for their Oriental Company; but I do not know exactly for what reason—some attribute it to the loss of Torres’s trading-fleet—the paternal affection did not prove effectual with which our beloved king and sovereign took an interest in making the Spanish monarchy prosperous by the extension and promotion of commerce (the only means for securing wealth), imitating the examples of almost all the nations of Europa, who, in order to become rich, have established their companies in the Orient.2–12. [In these sections Viana expands this last statement, enumerating the nations who have enriched themselves by the Oriental trade, and the companies formed in each for this purpose. First were the Genovese and Venetians, who traded with India by way of the Red Sea; they were afterward driven out of this trade by the Portuguese, in consequence of the discovery by the latter of the route via Cape of Good Hope. (Section 3.) “Portuguese trading-fleets of thirty ships came to the commerce of India every year, and for Brasil alone sailed fifteen to twentyships laden with merchandise from India—besides others which carried on trade in China, Japon, Persia, Arabía, Mosambique, Melinda, Sofala, and other regions. But now that commerce is so reduced that only one or, at most, two ships sail from Lisboa yearly, which would not be the case if they had established a company with adequate capital, which is the only way of making commerce lasting.” The Dutch at first bought spices from the Portuguese, and then resold them at a huge profit to the other European nations; but Phelipe II prohibited the spice trade to Portugal, and the Dutch therefore formed a company to operate in the Orient, and trade directly with its peoples. As finally constituted in 1602, this company had (section 6) a capital of 6,600,000 florins (“according to Savary”); and “in less than four years the members received the principal of their shares with the great profits which they obtained.” At the time of Viana’s writing, the Dutch company were maintaining “twelve thousand men, regular troops, in their twenty-five fortresses in India, and were able to equip 30,000 militia in their colonies, especially that of Batavia” (Savary). Viana cites another authority, Samuel Ricard, who places this militia force at 100,000, and states that the company employed in the Eastern trade more than 160 ships, each carrying thirty to sixty cannon, besides forty ships of the line (which number was increased in time of war). This enterprise ruined the commerce of the Portuguese (who had been the first to open the sea-route to India); “from that time until now it has steadily diminished, and is the poorest in all India; this has been the result of their not having formed a company with capital, and withrespectable forces to oppose the conquests which the Dutch made. For they had a better opportunity than the latter, and it would have cost them less to maintain a flourishing commerce, as was that which they already possessed, than it cost the Dutch to establish a new commerce by dint of money, conquests, fortifications, and enormous expenses.” The English company (section 8) sent out its first fleet (of four ships) in the year 1600; its capital was 369,891 pounds sterling. After various fluctuations of fortune, it was reëstablished in 1698, and attained great prosperity, so that its capital had increased to 1,703,422 pounds. In Viana’s time, “the ships from Madrast for London (more than fifty in number) carry annual cargoes of five to six million pounds, according to the estimate of Sabary; and, taking into consideration the increase which this commerce has had since he published his famous work, the ‘Universal Dictionary,’ it must by this time be worth some ten millions. This does not include the operations of the private English traders who traffic among the colonies of India; this may be inferred from the duties which they pay in Madrast, which, at the rate of five per cent, produce for the company 80,000 pagodas. This sum amounts to 120,000 or 130,000 pesos, estimating the pagoda at twelve and sometimes thirteen silver reals.” The English company were maintaining in constant operation 150 ships and fragatas, and more than fifty smaller vessels, employed in their commerce between India and London alone; to the great expenses of this navy must be added those of the company’s forts and garrisons in India, which indicate how enormous were their profits. An Englishman told Viana that the king ofEngland was owing to the company more than 36,000,000 pesos, the amount of loans which they had made to the crown in various emergencies. The Oriental commerce of the Dutch was further encroached upon (section 11) by the trading companies formed later in France, Sweden, and Denmark, and proposed in Prussia;36these were protected and fosteredby their respective governments. The commerce of the Dutch “would have been ruined if it were not for their being exclusive owners of the spice trade—of which only the Spaniards are able to deprive them, since we have in these islands cinnamon, pepper, cloves, and nutmeg.” As all those nations maintained forts, garrisons, and war-ships, the necessity of opposing these armaments with like forces has imposed on the Dutch enormous additional expenses. Viana says (section 12): “I know not what reason there can be why that which is so beneficial to all the powers should not, with even greater cause, be an advantage to España, which holds her conquests in peaceable possession, and has valuable products in her dominions; moreover, she has forts and ports which at little cost can be rendered impregnable, and better opportunities than any other nation for a very flourishing commerce. Yet she labors only to enrichher enemies, abandoning to them the commerce which our people are unwilling to carry on, and surrendering to them our treasures and wealth, in exchange for the greater part of the commodities and products which our own lands produce.”]13. If the Spaniards would form a company in the islands, similar to the foreign companies, and according to the pious anxiety with which the magnanimous heart of our beloved king and sovereign Don Phelipe Fifth, of undying memory, was concerned in this matter, all the nations who trade in India would have the same experience as the Portuguese and Dutch. Our commerce would annihilate or [at least] diminish that of all the India companies, who cannot find a market for their goods if they do not trade these in our dominions—and this they could not do if the Spanish company had large capital, and ships for navigation and trade in España and the Americas. If we could fortify the towns and garrison them, as has already been explained, the other nations would find themselves under the necessity of spending much more than they now do, in order to defend themselves against our power, if war should break out. This increase of expenses on the one hand, and diminution of their commerce on the other, are two excellent principles, which promise many advantages to the Spanish company—which, as it is not, like the others, compelled to incur these expenses, will be able to sell its commodities at lower prices, and the gains will be more certain.14. In order to facilitate the establishment of this most beneficial company, the royal protection of our sovereign is absolutely necessary, and with it must be banished the contemptuous notion that the Spaniardsform of the commercial career; for that notion usually leads them to keep their chests full of silver, for which they sell the products of their family estates. As a rule, the Spaniards spend with great economy what is necessary for their maintenance, especially those in the little hamlets throughout the kingdom; and, as they enjoy no commerce, they deprive themselves of the benefits arising from commercial activities, with detriment to their families and to the public welfare. On the other hand, they imagine that there is too great a risk in the remittance of their silver by sea, because they are so little (or not at all) acquainted with nautical science and mercantile affairs; and, as timidity prevails in their minds over ambition, they consider themselves fortunate to keep their riches under their own eyes, without thinking of investing them. But they would take hazards on their money, if they were touched by that eager desire for gain which is inseparable from all commerce, and which is stimulated by the lure of profits.15. There are, of course, many persons whose ability enables them to understand thoroughly the benefits of commerce; but they live remote from the marine ports, they have not trustworthy acquaintances to whom they can confide the management of their capital, and they sorrowfully deprive themselves of the benefits which they would derive from its employment, the result of which is that they lead idle lives, or sometimes yield to an extravagance which is excessive and impairs their fortunes. Even more melancholy than all that I have related is the sight of the Spanish nobility, without any occupation, and, as a rule, reared in extreme ignorance and idleness.This is the source of many excesses, the beginning of ruin to the most robust constitutions, a hindrance to the generation of children, and a cause of the lessening of population which is continually growing more worthy of consideration.16. Let there be formed, then, an Oriental company, and let the nobles of the kingdom contribute its funds; the profits [on these] will awaken in them a liking for commerce, and they will become acquainted with this most useful branch of knowledge. They will maintain their [business] relations, they will have some occupation, and will not use up their fortunes with vicious habits; their children will be brought up with a liking for commerce, and the fathers will have the satisfaction of employing some of their sons in appointments under the same company. This is the most certain means for securing the happiness of families and the prosperity of the entire monarchy; for, if commerce and the naval service (which follows the other closely) are promoted, there will be no vagabonds or idlers. Rather, idleness will come to an end, and with it many vices, on account of the enormous number of men whom a company with large capital needs to employ by land and sea—not only for its business positions, but for manufactures and navigation, in which persons from all spheres of life find an opening.17. What a number of people must be employed by the English and Dutch companies in the more than one hundred and fifty ships which each company maintains for its commerce, and in the various colonies in which they have established that commerce! And what advantages result to these two powers from keeping so many people busy, maintainingthem at the company’s expense, and freeing them from the idleness in which they would [otherwise] live! If those countries had not so great a commerce, vagabonds and idlers would abound in them; but this class of people is not seen there. On the contrary, there is great application to all the arts and sciences; for all have employment, and all are useful—some in manufactures, others in the military or the naval service, and others in commerce, etc.18. The attainment of these fortunate advantages depends on whether our beloved king and sovereign will assure to his vassals all his royal protection for the promotion of the said company, following the example of his glorious father, Don Phelipe Fifth, ever to be remembered; for the money of the royal treasury is the main foundation for this great and most useful enterprise. For it cannot be doubted that, animated by the same spirit, there will be many contributors to the capital of the said company—all the nobility of España, from the highest rank down; the guilds of Madrid, which now form a body of considerable importance; all the merchants of España, the two Americas, and these islands; some foreigners; and many religious communities, who have set aside the proceeds of their funds for pious contributions—convinced of the benefits of this commerce, and of the prosperity which will ensue to the Spanish nation; and regarding it as certain that (as will be mentioned hereafter) our Spanish merchants, if assured of their gains by way of these seas, and the method of supplying the Americas, in great part, with the materials for clothing which they need, without the burden of the royal imposts, will not long for the illegal purchase of foreign commodities.19. There are also other advantages, worthy of being known, which render the above-mentioned project more feasible. One of these is the abundance of timber for the construction of ships; at least ten ships can be built every year in these islands; and, by taking care of their many forests, even if a hundred ships were built now there would be enough timber left to construct every year the ten that I have mentioned. The Viscount del Puerto greatly praises (in book 9, chapter 10, article 2 of hisReflecciones militares37) the project of a friend of his (whose name he conceals) for forming a company in these islands; and among the products which it yields he mentions the timber calledtiga(it is not known here by this name), extolling its strength, and setting forth the advantages of carrying this wood to España as ballast for the ships.20. This wood (of which, according to the said author, the strong ships of Philipinas are built) is in my opinion theteca[i.e., teak], which comes from the Coast; or that which is known here (and I am inclined to think that this is meant) by the name ofmolave. This abounds in all the islands, and is so compact that it petrifies in the water, which I myself have seen; of it are made the ribs of the ship’s frame, the knees, and all the principal timbers that strengthen the ship. The keels are made of another wood, equally strong, which is calledguijo; it never rots in the water, nor does the boring worm, which is bred on the ships in the port of Cavite, penetrate it.There are other woods as useful as theguijo, and among them is thedongon, which is better. As a rule, the lower masts are made from themangachapui, which is another timber of especial value; for, although it is somewhat heavy, it never splinters, and is very elastic. The yards and topmasts are ofpalo maria; and for whatever is made of boards thelavan, thebanaba, and thetangili38are also used, from which kinds of wood very long and broad planks are obtained. There are pines here, and various other kinds of trees, which can be put to the same use; and plantations could be made of thetecatree (the wood of which lasts more than a hundred years in the water), for there is more than enough land for this purpose in the vicinity of Manila and Cavite. Likewise, sawmills could be built, in order to save the expense of [hiring] sawyers; also dry-docks, for careening the ships and preserving them under cover.21. In Ilocos are manufactured the blankets which serve as sails for our ships; and canvas can be made (as it has been) of excellent quality and in enormous quantities, for there is no end to the cottonwhich is and can be gathered, with the greatest facility, and of the finest quality. Moreover, on the many tracts of land which the sloth of the Indians leaves untilled hemp could be cultivated—which, even if it should not yield well on the lands of one province, would without doubt succeed on those of another; for there is nothing among all the products of the earth which is not afforded by these islands, by searching for the climate—whether hot, cool, or temperate—which is suited to the needs of the crop. Flax would be produced with the same ease as hemp, without any other cultivation than that which rice receives on irrigated soil [en tubigan]; and the seed of both these plants has been sown, and is yielding very well, in the province of Cagayan.22. There is much pitch, and cordage is so abundant that it can be supplied to all the ships of España, with what is made here; and, in order that it may be evident whether it is suited for this purpose, I will explain in detail how on this may depend the question of saving the expense of purchasing cordage in foreign kingdoms, by availing ourselves of that produced in our own dominions. [The fiber used for] cordage is both white and black; the former is known by the name ofabaca, which is obtained from the bark of a tree resembling the plantain, the trunk of which is heckled like [the stems of] hemp. The fiber is very harsh; tar scorches it, and for this reason no tar is used in these ships; it is stronger than hemp, as experience has shown. It is usually of service no longer than for one voyage; the threads shrink much, and on this account all the cordage here is heavier than that of Europa. On twisting it, it is apt to break, and in order to avoid this it is cured by placingit for some time in salt water, and drying it in the sunshine, then storing it until it is needed; for if this precaution be not taken, and it becomes spattered or moistened with fresh water, it will soon become rotten. With some additional expense the cordage could be made finer and smaller, without changing its quality; it would then be more easily handled, and the manœuvers of the ships would be more expeditious.23. The [fiber for] black cordage (known ascabo negro)39is obtained from a plant which they callgamù, very similar to the coco, and it is a veil which covers the entire tree, from the top down; it grows out between each pair of leaves [entre òja y òja] of thegamù, like long hair, or tufts of hair. It is exceedingly harsh, and for this reason it is used only for cables, of all sizes, and to some extent for tackle and rigging; and there is nothing with which to compare its strength. It lasts many years, but it is necessary to keep it either under water, or uncovered, where the dew and the rains bathe it; and in dry weather water is thrown over it, either salt or fresh, for its better preservation; for if it stands in the sun and wind, without these precautions, the threads break, and it loses its extraordinary strength. It is also preserved by keeping it in a shady place, where the wind strikes it but little. These two kinds of cordage are exceedingly abundant in these islands.24. There is another sort of cordage, [made] from the husks of the coco, which is superior to the other two; for with the said fiber the ships can becalked, and [even] after many years thebonote(thus they call it) comes out as fresh, strong, and sound as on the day when it was thrust between the planks. Of this species also there is a great abundance.25. The anchors can be cast here, by putting into operation the iron mines of which mention has been made; and I can say the same of the cannons, the balls, the grape-shot, the bombs, and the grenades. For, I repeat, there is iron in these islands for supplying all the world, and there are men enough to mine and manufacture it, if there be brought from España some skilled directors (who are not found here). If it be desired to work the copper, there are mines of this also, although I cannot speak with the same certainty of these as of the iron mines; for I have not come across any records to show whether the said metal has been worked at any time, and what the product was. The same thing is true in regard to the lead mines, but I have seen ores from Paracale, which were smelted at Bacolor, by order of Don Simon de Anda; and I do not doubt that, if we had skilled master-workmen in this and other industries, many useful discoveries would be made through the agency of the aforesaid company, whose funds would allow the expenses that a private person is unable to incur.26. To this concourse of advantages ought to be added the most important one that our Indians are exceedingly ingenious in the construction of ships. They do not understand arithmetic, or proportions and measures, or the computation of the weights of the various parts, or anything which requires knowledge; but if they have masters who will furnish to them models of the works, they imitate everythingwith the greatest accuracy, for they have exceedingly keen eyesight, and indescribable facility in making whatever they see. For this reason we have here excellent carpenters, calkers, and the other artisans necessary for the construction of ships, and in whatever number may be desired.27. There is not an Indian in these islands who has not a remarkable inclination for the sea; nor is there at present in all the world a people more agile in manœuvers on shipboard, or who learn so quickly nautical terms and whatever a good mariner ought to know. Their disposition is most humble in the presence of a Spaniard, and they show him great respect; but they can teach many of the Spanish mariners who sail in these seas. In the ships of España there are sure to be some Indians from these islands, and investigation can be made to ascertain what they are. The little that I understand about them makes me think that these are a people most suited for the sea; and that, if the ships are manned with crews one-third Spaniards and the other two-thirds Indians, the best mariners of these islands can be obtained, and many of them be employed in our warships. There is hardly an Indian who has sailed the seas who does not understand the mariner’s compass, and therefore on this [Acapulco] trade-route there are some very skilful and dexterous helmsmen. Their disposition is cowardly, but, when placed on a ship, from which they cannot escape, they fight with spirit and courage.28. Let it be considered, then, whether these circumstances are worthy of regard, and highly advantageous for the company of which I am speaking—which likewise can save much money in the differenceof wages; and any one will reason that not one of the foreign companies has had the opportunities which these islands possess for the establishment of a company, since all these things which are easy and of little expense for the Spaniards were almost insuperable difficulties for the Dutch, the English, and the French—who succeeded in overcoming them by dint of silver, of conquests, and of fortifications; and by bringing from Europa supplies which we do not have to bring, because they abound in these islands.29. In order not to be prolix in relating other advantages which the companies in general possess, as compared with the commerce of private persons, I refer to those which are set forth by the distinguished Don Miguel Zavala (in his celebrated memorial40to Phelipe V of blessed memory), whose authority alone would be sufficient in order that no means should be neglected for establishing the aforesaid company in these islands; and I pass to other advantages which the said author explains. But first I will point out what relates to the fortunes in the Indias, which do not pass to the grandsons; this is accounted for by the vicious way in which the creoles, as a rule, are reared—the indolence and vices in which they are brought up, and the luxury and prodigality to which they are accustomed from childhood. If these fortunes, or the greater part of them, were [invested] in the company, they would not be so easily wasted; and, even if the sons should save nothingfrom the profits, they would keep the principal which their fathers might bequeath to them in the aforesaid company. Or, in case there were some persons so reckless as to sell their shares, others would buy these, and the commerce and its gains would always remain for the benefit of the Spaniards.30. With the funds of a company, enterprises could be undertaken that would be both extensive and easy. The province of Pampanga alone is capable of producing more sugar than can be consumed in China (to which the Sangleys carry it when it is cheap), in the coasts of Coromandel, Malabar, and Vengala (where it is scarce, and is sold at a high price), and in all the ports of India; having a market, all that is required of this product will be supplied in abundance, especially if the said company encourages the Indians to cultivate their lands. It would be the same with the dyes; and with deer’s hides, sinews, andtapa(or dried meat) which all come from the same province, and are sold to the Chinese who come here to trade. By establishing a mart in the capital [of Pampanga], on the company’s account, it will gather in all the said products, in exchange for cloth, especially if credit be given to some persons until the time of the harvest; and the gains will be enormous, since profits will be made on the sale of the cloth, on the purchase of the products, and on the export of these to other colonies.31. The same method ought to be observed in the other provinces for promoting the cultivation of the lands and the abundance of so highly valuable products as they yield; by this means there would be obtained in Pangasinan all the gold which the infidels bring down from the mountains there, whichexceeds three hundred thousand pesos each year, and with that which is brought from other provinces reaches five hundred thousand pesos. This commodity is very useful in all the commerce of India, and can also be carried to Europa, as is done by the English and Dutch, to whom regularly comes the gold from Philipinas; its current price is at the rate of sixteen pesos for the tae of 22-carat metal (each tae has the weight of ten reals), and in this ratio is purchased that of 21, 20, 19, and 18 carats.32. In the provinces of Ilocos and Cagayan there might be excellent factories, to work up the great amount of fine cotton which they produce; and, by bringing skilled workmen from the Coast, the figured cottons which are brought thence could be made [here]. In all the Visayan Islands, in the province of Camarines, and in that of Albay, are made the choicest and finest webs, which they callnipis; and others, of commoner quality, which they callguinaras, and use for shirts. In Cagayan and Ilocos are woven very fine handkerchiefs, towels, coverlets, table-linen (which is of as good quality as that made in Flandes),terlingas, etc.; and if only these provinces are stimulated, and factories established with good master-workmen, the company can easily manufacture at least all the cloth which the Indians consume. As these number a million of souls, if we allow to each one an average consumption of no more than one peso, this would amount to a million of pesos; and the greater part of this amount, which now the Chinese, the Dutch, and the English carry away, would remain in the islands, and would increase the profits of the Spaniards and the losses of the said foreigners.33. The cacao is very abundant and cheap, and if it could find a market in other colonies and kingdoms the crop of it would be still greater, because the Indians would devote themselves to its cultivation.41Entire groves of the coffee-tree could be planted, since it yields fruit everywhere; it is milder than that of Mage [i.e., Mocha?] and its fruit is gathered in the year when it is [first] planted, on account of the richness of the soil. Rice and wheat, if the natives applied themselves [to cultivating these], as they would do if they had a market for them, would be sold at good prices throughout China (where these grains are scarce), in Cochinchina, in Siam, in Camboja, in Pegu, and sometimes in the Malabar and Coromandel coasts. Wax—of which these mountains are full, and which is sold by the infidel Indians who inhabit them—has a great consumption here, and much of it is shipped to Nueva España; and if it were bartered for cloth, as was said above, it could be procured in greater quantity. Tobacco, oil, and sulphur are very abundant. Horses are valued in the said coasts, and, although there are many of them in these islands, there would be more if the ranchmen had a better sale for them; for at times they are accustomed to kill the horses, in order to dry their flesh and sell it. Carabaos and deer, whose flesh is likewisedried, yield some pesos. In fine, the following are recognized articles of merchandise in different places in China, Cochinchina, Camboja, and Siam: sugar, rice, cotton; indigo, dyes, sibucao (a sort of Brasil-wood), deer’s sinews, pepper, black tortoise-shell (calledcarey), nacre shells (or mother-of-pearl),42birds’-nests, ebony;tapa(or dried meat),balateandcamaron(both which are shellfish), andbonga; cables ofcabo negro—all of which commodities these islands produce. [To these must be added] cochineal from Nueva España, fine cloths and camlets from España; lead (which also is produced by these islands, although it is not mined), and other articles, as stated above, of which better information will be given by practical merchants.34. For Vengala, the Coromandel and Malabar coasts, Persia, Zurrate, and other parts of India, are found useful indigo, sugar, sibucao, sulphur, siguey, birds’-nests, cotton, rice, gold, and horses; and, in one word, all that has been said in the preceding chapter (speaking of the private commerce which could be carried on via the Cape of Good Hope) ought to be understood, with greater reason, of the commerce which can be carried on by the company of which this chapter treats. For this reason I omit what I said there of the cinnamon and other products which the company could develop, with its funds and systematic arrangements, better than an individual could; for the latter may die, and the former continues perpetually to carry on the enterprises of manufactures, mining operations, the cultivation andpromotion of crops, and the exportation of all these to foreign kingdoms and colonies. For all will be successful in these islands with the Indians, who, if well paid, will do what they are ordered to.4335. I have already mentioned the indescribable readiness with which our Indians learn perfectly whatever they see, even without the necessity of a master to instruct them. There are some who write well, without knowing how to read, as they have had no teacher; for by their natural inclination they devote themselves to imitation of the letters, and easily succeed in doing so, without being able to read what they write. This is one proof of their readiness, above mentioned, but they have still more of it in embroidery. It is a marvelous thing to see, that there is hardly an Indian who cannot embroider, and that they learn this art without any teacher save their own attention and their extraordinary patience. The hands of the Indian women are the most delicate, for every kind of sewing and needlework; and the company, by availing itself of this skill of our Indian men and women, could employ an innumerable number of people in embroidery, needlework, and the making of hose—they make them of fine quality, in Zebu of cotton, and in La Laguna of silk—and obtain much profit through these industries, in finding a market for them.36. Near Paracali in the province of Camarines there is abundance of rock crystal, very transparent and choice. In the province of Cagayan are some stones that are very singular and rare; one of theseis emerald-green veined with gold or golden-brown, and when well polished it looks like a mirror, or like the finest jasper. Another is a stone as white as marble, similar to that which abounds in the mountains of San Matheo near Manila (from which has been made the paved floor of the Society’s church in this city); and who knows what Nature is keeping concealed, for our enlightenment, in the provinces and mountains of these islands? Assiduity, good taste, and the desire for knowledge would discover many things if there were Spaniards here who would devote themselves to the investigation and examination of the many rarities in the plan of Nature.37. If there were any chemist and herbalist here, this likewise would be an immense aid for making further discoveries and experimenting with many trees, roots, herbs, and medicinal stones. For instance, thenarra;44in cups made from the wood of this tree water becomes, in a very short time, of a most beautiful blue color, and people say that it is useful for curing obstructions; the wood calledmanunga, which is extolled for its remarkable virtues; the seeds of thecatbalonga, or St. Ignatius’s kernels, which are already known and esteemed inEuropa; the shell in which the cocoanut grows, in which water soon becomes exceedingly bitter; bezoar stones; and innumerable other articles from which homely remedies are made here, among the Spaniards as well as among the Indians. The latter make much use of the remedies produced in the islands, and know some, both herbs and woods, which cure the most hideous and bloody wound in twenty-four hours. The rhubarb45may be smelled [sehuele] in many woodlands, and no one is acquainted with it; the herb of Calamba is especially good for preventing, by [the application of] its juice, the bad results of a blow or fall. More than all, in the mountains of Mindoro there is a tree calledcalinga, the bark of which has a delicious odor, which smells like cinnamon, cloves, and pepper all combined; I made a small quantity of chocolate, using the said bark powdered instead of cinnamon, and it was very pleasing to the taste. In the ship “Santissima Trinidad,” which the English captured, I was sending to Madrid some lozenges and many pieces of the said bark, which is a delicious flavor for seasoning ragouts; and I have used it in my household. Señor Anda also sent to Madrid the aforesaid bark, and, I think, chocolate made with it powdered. So great is the abundance of these trees that there are mountains, many leguas in extent, which produce them.38. If the foreigners had these trees, they would have already introduced in the world the use of thiscommodity, with enormous profits; and we, if we possessed industry, and zeal for the interests of the nation, would have been able with this tree, to lessen the consumption of the cinnamon and cloves of the Dutch. Let these points be considered, and the advantages will be recognized which can assuredly be expected by the company which may be formed in these islands—regarding it as certain that nothing will make progress, except by this means; rather, this colony will in a little while go wretchedly to destruction, without the least hope for its reëstablishment.39. By way of conclusion to this chapter, I will note as the last (and an important) advantage of the aforesaid company the conspicuously fair treatment and friendly reception which the Spaniards have experienced, and may expect, throughout India. Our silver [money] is in good repute in all regions, and those peoples, especially the Chinese and the princes of India, show the greatest eagerness and make great efforts to obtain it, as being the most valuable for them; and, although the Dutch, English, French and other powers trade in this part of the world with our pesos, the Spanish ships are always better received in those ports, because they carry more silver and more products of these islands, which are held in very evident esteem.40. Since I have been in Manila, I have seen only the traders from Canton and Emui in China visit this port,46except the ship “Guadalupe,” whichwent to the [Malabar?] Coast; and through its captain and officers I have heard of the friendly reception which they met in all the ports of India. But in other days the commerce of this colony was more extensive. In China it was established in the year 1598, and has been maintained without interruption; the king of Camboja asked this government for aid, and it was sent to him in the year 1594, leaving commerce with that country established. In the same year the king of Siam sent an embassy to open commerce with these islands, and in 1599 the said commerce was actually begun, by vessels which went from these islands, and which came from Siam, with which country the Spaniards have maintained the most friendly relations. This was recently experienced in the case of the ship which was built there inthe year 53, by order of our governor the Marques de Ovando, who sent thither letters for the said king of Siam; and the latter, in virtue of these, furnished a sufficient sum of money, and gave all the other assistance which they asked from him. In the year 718, the same king of Siam granted a piece of land, in order that the Spaniards might establish a trading-post there.41. In the year 1596, commerce with these islands was established in Cochinchina, and the Spaniards declined to establish a trading-post [on the land] which this king afterward bestowed upon them. In Tunquin also the Spaniards undertook their commerce; and in Zurrate, Vengala, and other kingdoms of India, both Moorish and heathen, they have been equally well received. Although, on account of the reverses of this commonwealth and the lack of courage in its merchants, the Spaniards have given up this commerce for several years past, it cannot be doubted that the aforesaid company has the opportunity to establish itself advantageously, furnishing a market for the products of these islands, bringing hither those of the said kingdoms, and establishing (if that shall be expedient) some trading-posts—with which their purchases will be at more reasonable prices, and their gains in España and Nueva España more assured.42. Here at the same time another advantage presents itself. The commerce which now is carried on with Acapulco by private persons suffers many losses, occasioned by the unsuccessful fairs there. These losses originate in the necessity of selling the goods in order to send back [to Manila] the money that they produce; for even if the merchants lose in the sale something on the principal which they shipped,it is necessary to sell their goods in order to repay what they obtained from theobras piasfor their investments. If the goods are left in Nueva España, in order to take advantage of an opportunity for better sale, they cannot meet the cost of the expenses, and here find themselves tormented by their creditors. The company cannot be placed in such straits, but will always sell their wares to advantage and profit; for when in Acapulco they do not obtain good returns on the merchandise, they can transfer it to the storehouse which they will have to establish in Mexico. This expedient alone will be sufficient to induce the Mexicans to make strenuous endeavors to be preferred in the sale at the said port, because they will not deceive the said company as they now do private persons, acting aggressively against them, in order to fix arbitrarily the prices of their goods—constrained as our merchants are to sell them, on account of the limitation of the time [of the fair], since the galleons ought to sail from the said port by the twenty-fifth of March.43. I will conclude this chapter with the authority of the celebrated Don Geronimo Ustariz,47who, although he disapproves the commerce [managed] by companies in España and the Americas, considers it expedient in these islands; and indeed, when his arguments against the establishment of the said companies are examined, it will be seen that they do not apply to this commerce—where, on the contrary, it will be seen that not even the least progress can besecured, unless the company of which I am speaking be formed.44. The same author, speaking of the commerce in spices, is inclined to think that it ought to be carried on directly by the Spaniards, by the same route which other nations adopt for it, arranging the purchases in these islands in order to supply the Americas and all España by the ports of Acapulco, Panama, and Portovelo. This exhibits the utility of what I have herein set forth, for it is confirmed by the three most earnest and distinguished Spaniards of this century, to wit, the Visconde del Puerto, Don Miguel de Zabala, and Don Geronimo Ustariz. But I am surprised that this last-named writer, who treats the subject of commerce so extensively and so acutely, with the greatest erudition and knowledge of whatever there is to be known of foreign nations and countries, should be ignorant that these islands produce in abundance cinnamon, pepper, and nutmeg, which, without the necessity of buying it from the Dutch, we can use for our benefit, in order to supply all our own dominions. This is a proof that the Spaniards of Philipinas do not apply themselves to becoming acquainted with this country, in order to make known its products; and that they would not be [thus] ignorant if the alcaldes-mayor would make reports—one to their successors, and another to the government—of the condition of each province, as I advised his Majesty in the past year of 1760.

Chapter Fourth: Of the necessity for forming a company in these islands1. By a royal decree dated at Sevilla on March 23, 1733 (in which the project was carried out which was approved by his Majesty on April 26, 1732), there was established by our lord Don Phelipe Fifth, of undying memory, a company with the name of “Royal Company of Philipinas,”35under fifty-eight articles and stipulations. These were full of the most unusual privileges and liberties that can be granted, and were even more advantageous to the Spaniards than those which Louis Fourteenth granted to the French for their Oriental Company; but I do not know exactly for what reason—some attribute it to the loss of Torres’s trading-fleet—the paternal affection did not prove effectual with which our beloved king and sovereign took an interest in making the Spanish monarchy prosperous by the extension and promotion of commerce (the only means for securing wealth), imitating the examples of almost all the nations of Europa, who, in order to become rich, have established their companies in the Orient.2–12. [In these sections Viana expands this last statement, enumerating the nations who have enriched themselves by the Oriental trade, and the companies formed in each for this purpose. First were the Genovese and Venetians, who traded with India by way of the Red Sea; they were afterward driven out of this trade by the Portuguese, in consequence of the discovery by the latter of the route via Cape of Good Hope. (Section 3.) “Portuguese trading-fleets of thirty ships came to the commerce of India every year, and for Brasil alone sailed fifteen to twentyships laden with merchandise from India—besides others which carried on trade in China, Japon, Persia, Arabía, Mosambique, Melinda, Sofala, and other regions. But now that commerce is so reduced that only one or, at most, two ships sail from Lisboa yearly, which would not be the case if they had established a company with adequate capital, which is the only way of making commerce lasting.” The Dutch at first bought spices from the Portuguese, and then resold them at a huge profit to the other European nations; but Phelipe II prohibited the spice trade to Portugal, and the Dutch therefore formed a company to operate in the Orient, and trade directly with its peoples. As finally constituted in 1602, this company had (section 6) a capital of 6,600,000 florins (“according to Savary”); and “in less than four years the members received the principal of their shares with the great profits which they obtained.” At the time of Viana’s writing, the Dutch company were maintaining “twelve thousand men, regular troops, in their twenty-five fortresses in India, and were able to equip 30,000 militia in their colonies, especially that of Batavia” (Savary). Viana cites another authority, Samuel Ricard, who places this militia force at 100,000, and states that the company employed in the Eastern trade more than 160 ships, each carrying thirty to sixty cannon, besides forty ships of the line (which number was increased in time of war). This enterprise ruined the commerce of the Portuguese (who had been the first to open the sea-route to India); “from that time until now it has steadily diminished, and is the poorest in all India; this has been the result of their not having formed a company with capital, and withrespectable forces to oppose the conquests which the Dutch made. For they had a better opportunity than the latter, and it would have cost them less to maintain a flourishing commerce, as was that which they already possessed, than it cost the Dutch to establish a new commerce by dint of money, conquests, fortifications, and enormous expenses.” The English company (section 8) sent out its first fleet (of four ships) in the year 1600; its capital was 369,891 pounds sterling. After various fluctuations of fortune, it was reëstablished in 1698, and attained great prosperity, so that its capital had increased to 1,703,422 pounds. In Viana’s time, “the ships from Madrast for London (more than fifty in number) carry annual cargoes of five to six million pounds, according to the estimate of Sabary; and, taking into consideration the increase which this commerce has had since he published his famous work, the ‘Universal Dictionary,’ it must by this time be worth some ten millions. This does not include the operations of the private English traders who traffic among the colonies of India; this may be inferred from the duties which they pay in Madrast, which, at the rate of five per cent, produce for the company 80,000 pagodas. This sum amounts to 120,000 or 130,000 pesos, estimating the pagoda at twelve and sometimes thirteen silver reals.” The English company were maintaining in constant operation 150 ships and fragatas, and more than fifty smaller vessels, employed in their commerce between India and London alone; to the great expenses of this navy must be added those of the company’s forts and garrisons in India, which indicate how enormous were their profits. An Englishman told Viana that the king ofEngland was owing to the company more than 36,000,000 pesos, the amount of loans which they had made to the crown in various emergencies. The Oriental commerce of the Dutch was further encroached upon (section 11) by the trading companies formed later in France, Sweden, and Denmark, and proposed in Prussia;36these were protected and fosteredby their respective governments. The commerce of the Dutch “would have been ruined if it were not for their being exclusive owners of the spice trade—of which only the Spaniards are able to deprive them, since we have in these islands cinnamon, pepper, cloves, and nutmeg.” As all those nations maintained forts, garrisons, and war-ships, the necessity of opposing these armaments with like forces has imposed on the Dutch enormous additional expenses. Viana says (section 12): “I know not what reason there can be why that which is so beneficial to all the powers should not, with even greater cause, be an advantage to España, which holds her conquests in peaceable possession, and has valuable products in her dominions; moreover, she has forts and ports which at little cost can be rendered impregnable, and better opportunities than any other nation for a very flourishing commerce. Yet she labors only to enrichher enemies, abandoning to them the commerce which our people are unwilling to carry on, and surrendering to them our treasures and wealth, in exchange for the greater part of the commodities and products which our own lands produce.”]13. If the Spaniards would form a company in the islands, similar to the foreign companies, and according to the pious anxiety with which the magnanimous heart of our beloved king and sovereign Don Phelipe Fifth, of undying memory, was concerned in this matter, all the nations who trade in India would have the same experience as the Portuguese and Dutch. Our commerce would annihilate or [at least] diminish that of all the India companies, who cannot find a market for their goods if they do not trade these in our dominions—and this they could not do if the Spanish company had large capital, and ships for navigation and trade in España and the Americas. If we could fortify the towns and garrison them, as has already been explained, the other nations would find themselves under the necessity of spending much more than they now do, in order to defend themselves against our power, if war should break out. This increase of expenses on the one hand, and diminution of their commerce on the other, are two excellent principles, which promise many advantages to the Spanish company—which, as it is not, like the others, compelled to incur these expenses, will be able to sell its commodities at lower prices, and the gains will be more certain.14. In order to facilitate the establishment of this most beneficial company, the royal protection of our sovereign is absolutely necessary, and with it must be banished the contemptuous notion that the Spaniardsform of the commercial career; for that notion usually leads them to keep their chests full of silver, for which they sell the products of their family estates. As a rule, the Spaniards spend with great economy what is necessary for their maintenance, especially those in the little hamlets throughout the kingdom; and, as they enjoy no commerce, they deprive themselves of the benefits arising from commercial activities, with detriment to their families and to the public welfare. On the other hand, they imagine that there is too great a risk in the remittance of their silver by sea, because they are so little (or not at all) acquainted with nautical science and mercantile affairs; and, as timidity prevails in their minds over ambition, they consider themselves fortunate to keep their riches under their own eyes, without thinking of investing them. But they would take hazards on their money, if they were touched by that eager desire for gain which is inseparable from all commerce, and which is stimulated by the lure of profits.15. There are, of course, many persons whose ability enables them to understand thoroughly the benefits of commerce; but they live remote from the marine ports, they have not trustworthy acquaintances to whom they can confide the management of their capital, and they sorrowfully deprive themselves of the benefits which they would derive from its employment, the result of which is that they lead idle lives, or sometimes yield to an extravagance which is excessive and impairs their fortunes. Even more melancholy than all that I have related is the sight of the Spanish nobility, without any occupation, and, as a rule, reared in extreme ignorance and idleness.This is the source of many excesses, the beginning of ruin to the most robust constitutions, a hindrance to the generation of children, and a cause of the lessening of population which is continually growing more worthy of consideration.16. Let there be formed, then, an Oriental company, and let the nobles of the kingdom contribute its funds; the profits [on these] will awaken in them a liking for commerce, and they will become acquainted with this most useful branch of knowledge. They will maintain their [business] relations, they will have some occupation, and will not use up their fortunes with vicious habits; their children will be brought up with a liking for commerce, and the fathers will have the satisfaction of employing some of their sons in appointments under the same company. This is the most certain means for securing the happiness of families and the prosperity of the entire monarchy; for, if commerce and the naval service (which follows the other closely) are promoted, there will be no vagabonds or idlers. Rather, idleness will come to an end, and with it many vices, on account of the enormous number of men whom a company with large capital needs to employ by land and sea—not only for its business positions, but for manufactures and navigation, in which persons from all spheres of life find an opening.17. What a number of people must be employed by the English and Dutch companies in the more than one hundred and fifty ships which each company maintains for its commerce, and in the various colonies in which they have established that commerce! And what advantages result to these two powers from keeping so many people busy, maintainingthem at the company’s expense, and freeing them from the idleness in which they would [otherwise] live! If those countries had not so great a commerce, vagabonds and idlers would abound in them; but this class of people is not seen there. On the contrary, there is great application to all the arts and sciences; for all have employment, and all are useful—some in manufactures, others in the military or the naval service, and others in commerce, etc.18. The attainment of these fortunate advantages depends on whether our beloved king and sovereign will assure to his vassals all his royal protection for the promotion of the said company, following the example of his glorious father, Don Phelipe Fifth, ever to be remembered; for the money of the royal treasury is the main foundation for this great and most useful enterprise. For it cannot be doubted that, animated by the same spirit, there will be many contributors to the capital of the said company—all the nobility of España, from the highest rank down; the guilds of Madrid, which now form a body of considerable importance; all the merchants of España, the two Americas, and these islands; some foreigners; and many religious communities, who have set aside the proceeds of their funds for pious contributions—convinced of the benefits of this commerce, and of the prosperity which will ensue to the Spanish nation; and regarding it as certain that (as will be mentioned hereafter) our Spanish merchants, if assured of their gains by way of these seas, and the method of supplying the Americas, in great part, with the materials for clothing which they need, without the burden of the royal imposts, will not long for the illegal purchase of foreign commodities.19. There are also other advantages, worthy of being known, which render the above-mentioned project more feasible. One of these is the abundance of timber for the construction of ships; at least ten ships can be built every year in these islands; and, by taking care of their many forests, even if a hundred ships were built now there would be enough timber left to construct every year the ten that I have mentioned. The Viscount del Puerto greatly praises (in book 9, chapter 10, article 2 of hisReflecciones militares37) the project of a friend of his (whose name he conceals) for forming a company in these islands; and among the products which it yields he mentions the timber calledtiga(it is not known here by this name), extolling its strength, and setting forth the advantages of carrying this wood to España as ballast for the ships.20. This wood (of which, according to the said author, the strong ships of Philipinas are built) is in my opinion theteca[i.e., teak], which comes from the Coast; or that which is known here (and I am inclined to think that this is meant) by the name ofmolave. This abounds in all the islands, and is so compact that it petrifies in the water, which I myself have seen; of it are made the ribs of the ship’s frame, the knees, and all the principal timbers that strengthen the ship. The keels are made of another wood, equally strong, which is calledguijo; it never rots in the water, nor does the boring worm, which is bred on the ships in the port of Cavite, penetrate it.There are other woods as useful as theguijo, and among them is thedongon, which is better. As a rule, the lower masts are made from themangachapui, which is another timber of especial value; for, although it is somewhat heavy, it never splinters, and is very elastic. The yards and topmasts are ofpalo maria; and for whatever is made of boards thelavan, thebanaba, and thetangili38are also used, from which kinds of wood very long and broad planks are obtained. There are pines here, and various other kinds of trees, which can be put to the same use; and plantations could be made of thetecatree (the wood of which lasts more than a hundred years in the water), for there is more than enough land for this purpose in the vicinity of Manila and Cavite. Likewise, sawmills could be built, in order to save the expense of [hiring] sawyers; also dry-docks, for careening the ships and preserving them under cover.21. In Ilocos are manufactured the blankets which serve as sails for our ships; and canvas can be made (as it has been) of excellent quality and in enormous quantities, for there is no end to the cottonwhich is and can be gathered, with the greatest facility, and of the finest quality. Moreover, on the many tracts of land which the sloth of the Indians leaves untilled hemp could be cultivated—which, even if it should not yield well on the lands of one province, would without doubt succeed on those of another; for there is nothing among all the products of the earth which is not afforded by these islands, by searching for the climate—whether hot, cool, or temperate—which is suited to the needs of the crop. Flax would be produced with the same ease as hemp, without any other cultivation than that which rice receives on irrigated soil [en tubigan]; and the seed of both these plants has been sown, and is yielding very well, in the province of Cagayan.22. There is much pitch, and cordage is so abundant that it can be supplied to all the ships of España, with what is made here; and, in order that it may be evident whether it is suited for this purpose, I will explain in detail how on this may depend the question of saving the expense of purchasing cordage in foreign kingdoms, by availing ourselves of that produced in our own dominions. [The fiber used for] cordage is both white and black; the former is known by the name ofabaca, which is obtained from the bark of a tree resembling the plantain, the trunk of which is heckled like [the stems of] hemp. The fiber is very harsh; tar scorches it, and for this reason no tar is used in these ships; it is stronger than hemp, as experience has shown. It is usually of service no longer than for one voyage; the threads shrink much, and on this account all the cordage here is heavier than that of Europa. On twisting it, it is apt to break, and in order to avoid this it is cured by placingit for some time in salt water, and drying it in the sunshine, then storing it until it is needed; for if this precaution be not taken, and it becomes spattered or moistened with fresh water, it will soon become rotten. With some additional expense the cordage could be made finer and smaller, without changing its quality; it would then be more easily handled, and the manœuvers of the ships would be more expeditious.23. The [fiber for] black cordage (known ascabo negro)39is obtained from a plant which they callgamù, very similar to the coco, and it is a veil which covers the entire tree, from the top down; it grows out between each pair of leaves [entre òja y òja] of thegamù, like long hair, or tufts of hair. It is exceedingly harsh, and for this reason it is used only for cables, of all sizes, and to some extent for tackle and rigging; and there is nothing with which to compare its strength. It lasts many years, but it is necessary to keep it either under water, or uncovered, where the dew and the rains bathe it; and in dry weather water is thrown over it, either salt or fresh, for its better preservation; for if it stands in the sun and wind, without these precautions, the threads break, and it loses its extraordinary strength. It is also preserved by keeping it in a shady place, where the wind strikes it but little. These two kinds of cordage are exceedingly abundant in these islands.24. There is another sort of cordage, [made] from the husks of the coco, which is superior to the other two; for with the said fiber the ships can becalked, and [even] after many years thebonote(thus they call it) comes out as fresh, strong, and sound as on the day when it was thrust between the planks. Of this species also there is a great abundance.25. The anchors can be cast here, by putting into operation the iron mines of which mention has been made; and I can say the same of the cannons, the balls, the grape-shot, the bombs, and the grenades. For, I repeat, there is iron in these islands for supplying all the world, and there are men enough to mine and manufacture it, if there be brought from España some skilled directors (who are not found here). If it be desired to work the copper, there are mines of this also, although I cannot speak with the same certainty of these as of the iron mines; for I have not come across any records to show whether the said metal has been worked at any time, and what the product was. The same thing is true in regard to the lead mines, but I have seen ores from Paracale, which were smelted at Bacolor, by order of Don Simon de Anda; and I do not doubt that, if we had skilled master-workmen in this and other industries, many useful discoveries would be made through the agency of the aforesaid company, whose funds would allow the expenses that a private person is unable to incur.26. To this concourse of advantages ought to be added the most important one that our Indians are exceedingly ingenious in the construction of ships. They do not understand arithmetic, or proportions and measures, or the computation of the weights of the various parts, or anything which requires knowledge; but if they have masters who will furnish to them models of the works, they imitate everythingwith the greatest accuracy, for they have exceedingly keen eyesight, and indescribable facility in making whatever they see. For this reason we have here excellent carpenters, calkers, and the other artisans necessary for the construction of ships, and in whatever number may be desired.27. There is not an Indian in these islands who has not a remarkable inclination for the sea; nor is there at present in all the world a people more agile in manœuvers on shipboard, or who learn so quickly nautical terms and whatever a good mariner ought to know. Their disposition is most humble in the presence of a Spaniard, and they show him great respect; but they can teach many of the Spanish mariners who sail in these seas. In the ships of España there are sure to be some Indians from these islands, and investigation can be made to ascertain what they are. The little that I understand about them makes me think that these are a people most suited for the sea; and that, if the ships are manned with crews one-third Spaniards and the other two-thirds Indians, the best mariners of these islands can be obtained, and many of them be employed in our warships. There is hardly an Indian who has sailed the seas who does not understand the mariner’s compass, and therefore on this [Acapulco] trade-route there are some very skilful and dexterous helmsmen. Their disposition is cowardly, but, when placed on a ship, from which they cannot escape, they fight with spirit and courage.28. Let it be considered, then, whether these circumstances are worthy of regard, and highly advantageous for the company of which I am speaking—which likewise can save much money in the differenceof wages; and any one will reason that not one of the foreign companies has had the opportunities which these islands possess for the establishment of a company, since all these things which are easy and of little expense for the Spaniards were almost insuperable difficulties for the Dutch, the English, and the French—who succeeded in overcoming them by dint of silver, of conquests, and of fortifications; and by bringing from Europa supplies which we do not have to bring, because they abound in these islands.29. In order not to be prolix in relating other advantages which the companies in general possess, as compared with the commerce of private persons, I refer to those which are set forth by the distinguished Don Miguel Zavala (in his celebrated memorial40to Phelipe V of blessed memory), whose authority alone would be sufficient in order that no means should be neglected for establishing the aforesaid company in these islands; and I pass to other advantages which the said author explains. But first I will point out what relates to the fortunes in the Indias, which do not pass to the grandsons; this is accounted for by the vicious way in which the creoles, as a rule, are reared—the indolence and vices in which they are brought up, and the luxury and prodigality to which they are accustomed from childhood. If these fortunes, or the greater part of them, were [invested] in the company, they would not be so easily wasted; and, even if the sons should save nothingfrom the profits, they would keep the principal which their fathers might bequeath to them in the aforesaid company. Or, in case there were some persons so reckless as to sell their shares, others would buy these, and the commerce and its gains would always remain for the benefit of the Spaniards.30. With the funds of a company, enterprises could be undertaken that would be both extensive and easy. The province of Pampanga alone is capable of producing more sugar than can be consumed in China (to which the Sangleys carry it when it is cheap), in the coasts of Coromandel, Malabar, and Vengala (where it is scarce, and is sold at a high price), and in all the ports of India; having a market, all that is required of this product will be supplied in abundance, especially if the said company encourages the Indians to cultivate their lands. It would be the same with the dyes; and with deer’s hides, sinews, andtapa(or dried meat) which all come from the same province, and are sold to the Chinese who come here to trade. By establishing a mart in the capital [of Pampanga], on the company’s account, it will gather in all the said products, in exchange for cloth, especially if credit be given to some persons until the time of the harvest; and the gains will be enormous, since profits will be made on the sale of the cloth, on the purchase of the products, and on the export of these to other colonies.31. The same method ought to be observed in the other provinces for promoting the cultivation of the lands and the abundance of so highly valuable products as they yield; by this means there would be obtained in Pangasinan all the gold which the infidels bring down from the mountains there, whichexceeds three hundred thousand pesos each year, and with that which is brought from other provinces reaches five hundred thousand pesos. This commodity is very useful in all the commerce of India, and can also be carried to Europa, as is done by the English and Dutch, to whom regularly comes the gold from Philipinas; its current price is at the rate of sixteen pesos for the tae of 22-carat metal (each tae has the weight of ten reals), and in this ratio is purchased that of 21, 20, 19, and 18 carats.32. In the provinces of Ilocos and Cagayan there might be excellent factories, to work up the great amount of fine cotton which they produce; and, by bringing skilled workmen from the Coast, the figured cottons which are brought thence could be made [here]. In all the Visayan Islands, in the province of Camarines, and in that of Albay, are made the choicest and finest webs, which they callnipis; and others, of commoner quality, which they callguinaras, and use for shirts. In Cagayan and Ilocos are woven very fine handkerchiefs, towels, coverlets, table-linen (which is of as good quality as that made in Flandes),terlingas, etc.; and if only these provinces are stimulated, and factories established with good master-workmen, the company can easily manufacture at least all the cloth which the Indians consume. As these number a million of souls, if we allow to each one an average consumption of no more than one peso, this would amount to a million of pesos; and the greater part of this amount, which now the Chinese, the Dutch, and the English carry away, would remain in the islands, and would increase the profits of the Spaniards and the losses of the said foreigners.33. The cacao is very abundant and cheap, and if it could find a market in other colonies and kingdoms the crop of it would be still greater, because the Indians would devote themselves to its cultivation.41Entire groves of the coffee-tree could be planted, since it yields fruit everywhere; it is milder than that of Mage [i.e., Mocha?] and its fruit is gathered in the year when it is [first] planted, on account of the richness of the soil. Rice and wheat, if the natives applied themselves [to cultivating these], as they would do if they had a market for them, would be sold at good prices throughout China (where these grains are scarce), in Cochinchina, in Siam, in Camboja, in Pegu, and sometimes in the Malabar and Coromandel coasts. Wax—of which these mountains are full, and which is sold by the infidel Indians who inhabit them—has a great consumption here, and much of it is shipped to Nueva España; and if it were bartered for cloth, as was said above, it could be procured in greater quantity. Tobacco, oil, and sulphur are very abundant. Horses are valued in the said coasts, and, although there are many of them in these islands, there would be more if the ranchmen had a better sale for them; for at times they are accustomed to kill the horses, in order to dry their flesh and sell it. Carabaos and deer, whose flesh is likewisedried, yield some pesos. In fine, the following are recognized articles of merchandise in different places in China, Cochinchina, Camboja, and Siam: sugar, rice, cotton; indigo, dyes, sibucao (a sort of Brasil-wood), deer’s sinews, pepper, black tortoise-shell (calledcarey), nacre shells (or mother-of-pearl),42birds’-nests, ebony;tapa(or dried meat),balateandcamaron(both which are shellfish), andbonga; cables ofcabo negro—all of which commodities these islands produce. [To these must be added] cochineal from Nueva España, fine cloths and camlets from España; lead (which also is produced by these islands, although it is not mined), and other articles, as stated above, of which better information will be given by practical merchants.34. For Vengala, the Coromandel and Malabar coasts, Persia, Zurrate, and other parts of India, are found useful indigo, sugar, sibucao, sulphur, siguey, birds’-nests, cotton, rice, gold, and horses; and, in one word, all that has been said in the preceding chapter (speaking of the private commerce which could be carried on via the Cape of Good Hope) ought to be understood, with greater reason, of the commerce which can be carried on by the company of which this chapter treats. For this reason I omit what I said there of the cinnamon and other products which the company could develop, with its funds and systematic arrangements, better than an individual could; for the latter may die, and the former continues perpetually to carry on the enterprises of manufactures, mining operations, the cultivation andpromotion of crops, and the exportation of all these to foreign kingdoms and colonies. For all will be successful in these islands with the Indians, who, if well paid, will do what they are ordered to.4335. I have already mentioned the indescribable readiness with which our Indians learn perfectly whatever they see, even without the necessity of a master to instruct them. There are some who write well, without knowing how to read, as they have had no teacher; for by their natural inclination they devote themselves to imitation of the letters, and easily succeed in doing so, without being able to read what they write. This is one proof of their readiness, above mentioned, but they have still more of it in embroidery. It is a marvelous thing to see, that there is hardly an Indian who cannot embroider, and that they learn this art without any teacher save their own attention and their extraordinary patience. The hands of the Indian women are the most delicate, for every kind of sewing and needlework; and the company, by availing itself of this skill of our Indian men and women, could employ an innumerable number of people in embroidery, needlework, and the making of hose—they make them of fine quality, in Zebu of cotton, and in La Laguna of silk—and obtain much profit through these industries, in finding a market for them.36. Near Paracali in the province of Camarines there is abundance of rock crystal, very transparent and choice. In the province of Cagayan are some stones that are very singular and rare; one of theseis emerald-green veined with gold or golden-brown, and when well polished it looks like a mirror, or like the finest jasper. Another is a stone as white as marble, similar to that which abounds in the mountains of San Matheo near Manila (from which has been made the paved floor of the Society’s church in this city); and who knows what Nature is keeping concealed, for our enlightenment, in the provinces and mountains of these islands? Assiduity, good taste, and the desire for knowledge would discover many things if there were Spaniards here who would devote themselves to the investigation and examination of the many rarities in the plan of Nature.37. If there were any chemist and herbalist here, this likewise would be an immense aid for making further discoveries and experimenting with many trees, roots, herbs, and medicinal stones. For instance, thenarra;44in cups made from the wood of this tree water becomes, in a very short time, of a most beautiful blue color, and people say that it is useful for curing obstructions; the wood calledmanunga, which is extolled for its remarkable virtues; the seeds of thecatbalonga, or St. Ignatius’s kernels, which are already known and esteemed inEuropa; the shell in which the cocoanut grows, in which water soon becomes exceedingly bitter; bezoar stones; and innumerable other articles from which homely remedies are made here, among the Spaniards as well as among the Indians. The latter make much use of the remedies produced in the islands, and know some, both herbs and woods, which cure the most hideous and bloody wound in twenty-four hours. The rhubarb45may be smelled [sehuele] in many woodlands, and no one is acquainted with it; the herb of Calamba is especially good for preventing, by [the application of] its juice, the bad results of a blow or fall. More than all, in the mountains of Mindoro there is a tree calledcalinga, the bark of which has a delicious odor, which smells like cinnamon, cloves, and pepper all combined; I made a small quantity of chocolate, using the said bark powdered instead of cinnamon, and it was very pleasing to the taste. In the ship “Santissima Trinidad,” which the English captured, I was sending to Madrid some lozenges and many pieces of the said bark, which is a delicious flavor for seasoning ragouts; and I have used it in my household. Señor Anda also sent to Madrid the aforesaid bark, and, I think, chocolate made with it powdered. So great is the abundance of these trees that there are mountains, many leguas in extent, which produce them.38. If the foreigners had these trees, they would have already introduced in the world the use of thiscommodity, with enormous profits; and we, if we possessed industry, and zeal for the interests of the nation, would have been able with this tree, to lessen the consumption of the cinnamon and cloves of the Dutch. Let these points be considered, and the advantages will be recognized which can assuredly be expected by the company which may be formed in these islands—regarding it as certain that nothing will make progress, except by this means; rather, this colony will in a little while go wretchedly to destruction, without the least hope for its reëstablishment.39. By way of conclusion to this chapter, I will note as the last (and an important) advantage of the aforesaid company the conspicuously fair treatment and friendly reception which the Spaniards have experienced, and may expect, throughout India. Our silver [money] is in good repute in all regions, and those peoples, especially the Chinese and the princes of India, show the greatest eagerness and make great efforts to obtain it, as being the most valuable for them; and, although the Dutch, English, French and other powers trade in this part of the world with our pesos, the Spanish ships are always better received in those ports, because they carry more silver and more products of these islands, which are held in very evident esteem.40. Since I have been in Manila, I have seen only the traders from Canton and Emui in China visit this port,46except the ship “Guadalupe,” whichwent to the [Malabar?] Coast; and through its captain and officers I have heard of the friendly reception which they met in all the ports of India. But in other days the commerce of this colony was more extensive. In China it was established in the year 1598, and has been maintained without interruption; the king of Camboja asked this government for aid, and it was sent to him in the year 1594, leaving commerce with that country established. In the same year the king of Siam sent an embassy to open commerce with these islands, and in 1599 the said commerce was actually begun, by vessels which went from these islands, and which came from Siam, with which country the Spaniards have maintained the most friendly relations. This was recently experienced in the case of the ship which was built there inthe year 53, by order of our governor the Marques de Ovando, who sent thither letters for the said king of Siam; and the latter, in virtue of these, furnished a sufficient sum of money, and gave all the other assistance which they asked from him. In the year 718, the same king of Siam granted a piece of land, in order that the Spaniards might establish a trading-post there.41. In the year 1596, commerce with these islands was established in Cochinchina, and the Spaniards declined to establish a trading-post [on the land] which this king afterward bestowed upon them. In Tunquin also the Spaniards undertook their commerce; and in Zurrate, Vengala, and other kingdoms of India, both Moorish and heathen, they have been equally well received. Although, on account of the reverses of this commonwealth and the lack of courage in its merchants, the Spaniards have given up this commerce for several years past, it cannot be doubted that the aforesaid company has the opportunity to establish itself advantageously, furnishing a market for the products of these islands, bringing hither those of the said kingdoms, and establishing (if that shall be expedient) some trading-posts—with which their purchases will be at more reasonable prices, and their gains in España and Nueva España more assured.42. Here at the same time another advantage presents itself. The commerce which now is carried on with Acapulco by private persons suffers many losses, occasioned by the unsuccessful fairs there. These losses originate in the necessity of selling the goods in order to send back [to Manila] the money that they produce; for even if the merchants lose in the sale something on the principal which they shipped,it is necessary to sell their goods in order to repay what they obtained from theobras piasfor their investments. If the goods are left in Nueva España, in order to take advantage of an opportunity for better sale, they cannot meet the cost of the expenses, and here find themselves tormented by their creditors. The company cannot be placed in such straits, but will always sell their wares to advantage and profit; for when in Acapulco they do not obtain good returns on the merchandise, they can transfer it to the storehouse which they will have to establish in Mexico. This expedient alone will be sufficient to induce the Mexicans to make strenuous endeavors to be preferred in the sale at the said port, because they will not deceive the said company as they now do private persons, acting aggressively against them, in order to fix arbitrarily the prices of their goods—constrained as our merchants are to sell them, on account of the limitation of the time [of the fair], since the galleons ought to sail from the said port by the twenty-fifth of March.43. I will conclude this chapter with the authority of the celebrated Don Geronimo Ustariz,47who, although he disapproves the commerce [managed] by companies in España and the Americas, considers it expedient in these islands; and indeed, when his arguments against the establishment of the said companies are examined, it will be seen that they do not apply to this commerce—where, on the contrary, it will be seen that not even the least progress can besecured, unless the company of which I am speaking be formed.44. The same author, speaking of the commerce in spices, is inclined to think that it ought to be carried on directly by the Spaniards, by the same route which other nations adopt for it, arranging the purchases in these islands in order to supply the Americas and all España by the ports of Acapulco, Panama, and Portovelo. This exhibits the utility of what I have herein set forth, for it is confirmed by the three most earnest and distinguished Spaniards of this century, to wit, the Visconde del Puerto, Don Miguel de Zabala, and Don Geronimo Ustariz. But I am surprised that this last-named writer, who treats the subject of commerce so extensively and so acutely, with the greatest erudition and knowledge of whatever there is to be known of foreign nations and countries, should be ignorant that these islands produce in abundance cinnamon, pepper, and nutmeg, which, without the necessity of buying it from the Dutch, we can use for our benefit, in order to supply all our own dominions. This is a proof that the Spaniards of Philipinas do not apply themselves to becoming acquainted with this country, in order to make known its products; and that they would not be [thus] ignorant if the alcaldes-mayor would make reports—one to their successors, and another to the government—of the condition of each province, as I advised his Majesty in the past year of 1760.

Chapter Fourth: Of the necessity for forming a company in these islands1. By a royal decree dated at Sevilla on March 23, 1733 (in which the project was carried out which was approved by his Majesty on April 26, 1732), there was established by our lord Don Phelipe Fifth, of undying memory, a company with the name of “Royal Company of Philipinas,”35under fifty-eight articles and stipulations. These were full of the most unusual privileges and liberties that can be granted, and were even more advantageous to the Spaniards than those which Louis Fourteenth granted to the French for their Oriental Company; but I do not know exactly for what reason—some attribute it to the loss of Torres’s trading-fleet—the paternal affection did not prove effectual with which our beloved king and sovereign took an interest in making the Spanish monarchy prosperous by the extension and promotion of commerce (the only means for securing wealth), imitating the examples of almost all the nations of Europa, who, in order to become rich, have established their companies in the Orient.2–12. [In these sections Viana expands this last statement, enumerating the nations who have enriched themselves by the Oriental trade, and the companies formed in each for this purpose. First were the Genovese and Venetians, who traded with India by way of the Red Sea; they were afterward driven out of this trade by the Portuguese, in consequence of the discovery by the latter of the route via Cape of Good Hope. (Section 3.) “Portuguese trading-fleets of thirty ships came to the commerce of India every year, and for Brasil alone sailed fifteen to twentyships laden with merchandise from India—besides others which carried on trade in China, Japon, Persia, Arabía, Mosambique, Melinda, Sofala, and other regions. But now that commerce is so reduced that only one or, at most, two ships sail from Lisboa yearly, which would not be the case if they had established a company with adequate capital, which is the only way of making commerce lasting.” The Dutch at first bought spices from the Portuguese, and then resold them at a huge profit to the other European nations; but Phelipe II prohibited the spice trade to Portugal, and the Dutch therefore formed a company to operate in the Orient, and trade directly with its peoples. As finally constituted in 1602, this company had (section 6) a capital of 6,600,000 florins (“according to Savary”); and “in less than four years the members received the principal of their shares with the great profits which they obtained.” At the time of Viana’s writing, the Dutch company were maintaining “twelve thousand men, regular troops, in their twenty-five fortresses in India, and were able to equip 30,000 militia in their colonies, especially that of Batavia” (Savary). Viana cites another authority, Samuel Ricard, who places this militia force at 100,000, and states that the company employed in the Eastern trade more than 160 ships, each carrying thirty to sixty cannon, besides forty ships of the line (which number was increased in time of war). This enterprise ruined the commerce of the Portuguese (who had been the first to open the sea-route to India); “from that time until now it has steadily diminished, and is the poorest in all India; this has been the result of their not having formed a company with capital, and withrespectable forces to oppose the conquests which the Dutch made. For they had a better opportunity than the latter, and it would have cost them less to maintain a flourishing commerce, as was that which they already possessed, than it cost the Dutch to establish a new commerce by dint of money, conquests, fortifications, and enormous expenses.” The English company (section 8) sent out its first fleet (of four ships) in the year 1600; its capital was 369,891 pounds sterling. After various fluctuations of fortune, it was reëstablished in 1698, and attained great prosperity, so that its capital had increased to 1,703,422 pounds. In Viana’s time, “the ships from Madrast for London (more than fifty in number) carry annual cargoes of five to six million pounds, according to the estimate of Sabary; and, taking into consideration the increase which this commerce has had since he published his famous work, the ‘Universal Dictionary,’ it must by this time be worth some ten millions. This does not include the operations of the private English traders who traffic among the colonies of India; this may be inferred from the duties which they pay in Madrast, which, at the rate of five per cent, produce for the company 80,000 pagodas. This sum amounts to 120,000 or 130,000 pesos, estimating the pagoda at twelve and sometimes thirteen silver reals.” The English company were maintaining in constant operation 150 ships and fragatas, and more than fifty smaller vessels, employed in their commerce between India and London alone; to the great expenses of this navy must be added those of the company’s forts and garrisons in India, which indicate how enormous were their profits. An Englishman told Viana that the king ofEngland was owing to the company more than 36,000,000 pesos, the amount of loans which they had made to the crown in various emergencies. The Oriental commerce of the Dutch was further encroached upon (section 11) by the trading companies formed later in France, Sweden, and Denmark, and proposed in Prussia;36these were protected and fosteredby their respective governments. The commerce of the Dutch “would have been ruined if it were not for their being exclusive owners of the spice trade—of which only the Spaniards are able to deprive them, since we have in these islands cinnamon, pepper, cloves, and nutmeg.” As all those nations maintained forts, garrisons, and war-ships, the necessity of opposing these armaments with like forces has imposed on the Dutch enormous additional expenses. Viana says (section 12): “I know not what reason there can be why that which is so beneficial to all the powers should not, with even greater cause, be an advantage to España, which holds her conquests in peaceable possession, and has valuable products in her dominions; moreover, she has forts and ports which at little cost can be rendered impregnable, and better opportunities than any other nation for a very flourishing commerce. Yet she labors only to enrichher enemies, abandoning to them the commerce which our people are unwilling to carry on, and surrendering to them our treasures and wealth, in exchange for the greater part of the commodities and products which our own lands produce.”]13. If the Spaniards would form a company in the islands, similar to the foreign companies, and according to the pious anxiety with which the magnanimous heart of our beloved king and sovereign Don Phelipe Fifth, of undying memory, was concerned in this matter, all the nations who trade in India would have the same experience as the Portuguese and Dutch. Our commerce would annihilate or [at least] diminish that of all the India companies, who cannot find a market for their goods if they do not trade these in our dominions—and this they could not do if the Spanish company had large capital, and ships for navigation and trade in España and the Americas. If we could fortify the towns and garrison them, as has already been explained, the other nations would find themselves under the necessity of spending much more than they now do, in order to defend themselves against our power, if war should break out. This increase of expenses on the one hand, and diminution of their commerce on the other, are two excellent principles, which promise many advantages to the Spanish company—which, as it is not, like the others, compelled to incur these expenses, will be able to sell its commodities at lower prices, and the gains will be more certain.14. In order to facilitate the establishment of this most beneficial company, the royal protection of our sovereign is absolutely necessary, and with it must be banished the contemptuous notion that the Spaniardsform of the commercial career; for that notion usually leads them to keep their chests full of silver, for which they sell the products of their family estates. As a rule, the Spaniards spend with great economy what is necessary for their maintenance, especially those in the little hamlets throughout the kingdom; and, as they enjoy no commerce, they deprive themselves of the benefits arising from commercial activities, with detriment to their families and to the public welfare. On the other hand, they imagine that there is too great a risk in the remittance of their silver by sea, because they are so little (or not at all) acquainted with nautical science and mercantile affairs; and, as timidity prevails in their minds over ambition, they consider themselves fortunate to keep their riches under their own eyes, without thinking of investing them. But they would take hazards on their money, if they were touched by that eager desire for gain which is inseparable from all commerce, and which is stimulated by the lure of profits.15. There are, of course, many persons whose ability enables them to understand thoroughly the benefits of commerce; but they live remote from the marine ports, they have not trustworthy acquaintances to whom they can confide the management of their capital, and they sorrowfully deprive themselves of the benefits which they would derive from its employment, the result of which is that they lead idle lives, or sometimes yield to an extravagance which is excessive and impairs their fortunes. Even more melancholy than all that I have related is the sight of the Spanish nobility, without any occupation, and, as a rule, reared in extreme ignorance and idleness.This is the source of many excesses, the beginning of ruin to the most robust constitutions, a hindrance to the generation of children, and a cause of the lessening of population which is continually growing more worthy of consideration.16. Let there be formed, then, an Oriental company, and let the nobles of the kingdom contribute its funds; the profits [on these] will awaken in them a liking for commerce, and they will become acquainted with this most useful branch of knowledge. They will maintain their [business] relations, they will have some occupation, and will not use up their fortunes with vicious habits; their children will be brought up with a liking for commerce, and the fathers will have the satisfaction of employing some of their sons in appointments under the same company. This is the most certain means for securing the happiness of families and the prosperity of the entire monarchy; for, if commerce and the naval service (which follows the other closely) are promoted, there will be no vagabonds or idlers. Rather, idleness will come to an end, and with it many vices, on account of the enormous number of men whom a company with large capital needs to employ by land and sea—not only for its business positions, but for manufactures and navigation, in which persons from all spheres of life find an opening.17. What a number of people must be employed by the English and Dutch companies in the more than one hundred and fifty ships which each company maintains for its commerce, and in the various colonies in which they have established that commerce! And what advantages result to these two powers from keeping so many people busy, maintainingthem at the company’s expense, and freeing them from the idleness in which they would [otherwise] live! If those countries had not so great a commerce, vagabonds and idlers would abound in them; but this class of people is not seen there. On the contrary, there is great application to all the arts and sciences; for all have employment, and all are useful—some in manufactures, others in the military or the naval service, and others in commerce, etc.18. The attainment of these fortunate advantages depends on whether our beloved king and sovereign will assure to his vassals all his royal protection for the promotion of the said company, following the example of his glorious father, Don Phelipe Fifth, ever to be remembered; for the money of the royal treasury is the main foundation for this great and most useful enterprise. For it cannot be doubted that, animated by the same spirit, there will be many contributors to the capital of the said company—all the nobility of España, from the highest rank down; the guilds of Madrid, which now form a body of considerable importance; all the merchants of España, the two Americas, and these islands; some foreigners; and many religious communities, who have set aside the proceeds of their funds for pious contributions—convinced of the benefits of this commerce, and of the prosperity which will ensue to the Spanish nation; and regarding it as certain that (as will be mentioned hereafter) our Spanish merchants, if assured of their gains by way of these seas, and the method of supplying the Americas, in great part, with the materials for clothing which they need, without the burden of the royal imposts, will not long for the illegal purchase of foreign commodities.19. There are also other advantages, worthy of being known, which render the above-mentioned project more feasible. One of these is the abundance of timber for the construction of ships; at least ten ships can be built every year in these islands; and, by taking care of their many forests, even if a hundred ships were built now there would be enough timber left to construct every year the ten that I have mentioned. The Viscount del Puerto greatly praises (in book 9, chapter 10, article 2 of hisReflecciones militares37) the project of a friend of his (whose name he conceals) for forming a company in these islands; and among the products which it yields he mentions the timber calledtiga(it is not known here by this name), extolling its strength, and setting forth the advantages of carrying this wood to España as ballast for the ships.20. This wood (of which, according to the said author, the strong ships of Philipinas are built) is in my opinion theteca[i.e., teak], which comes from the Coast; or that which is known here (and I am inclined to think that this is meant) by the name ofmolave. This abounds in all the islands, and is so compact that it petrifies in the water, which I myself have seen; of it are made the ribs of the ship’s frame, the knees, and all the principal timbers that strengthen the ship. The keels are made of another wood, equally strong, which is calledguijo; it never rots in the water, nor does the boring worm, which is bred on the ships in the port of Cavite, penetrate it.There are other woods as useful as theguijo, and among them is thedongon, which is better. As a rule, the lower masts are made from themangachapui, which is another timber of especial value; for, although it is somewhat heavy, it never splinters, and is very elastic. The yards and topmasts are ofpalo maria; and for whatever is made of boards thelavan, thebanaba, and thetangili38are also used, from which kinds of wood very long and broad planks are obtained. There are pines here, and various other kinds of trees, which can be put to the same use; and plantations could be made of thetecatree (the wood of which lasts more than a hundred years in the water), for there is more than enough land for this purpose in the vicinity of Manila and Cavite. Likewise, sawmills could be built, in order to save the expense of [hiring] sawyers; also dry-docks, for careening the ships and preserving them under cover.21. In Ilocos are manufactured the blankets which serve as sails for our ships; and canvas can be made (as it has been) of excellent quality and in enormous quantities, for there is no end to the cottonwhich is and can be gathered, with the greatest facility, and of the finest quality. Moreover, on the many tracts of land which the sloth of the Indians leaves untilled hemp could be cultivated—which, even if it should not yield well on the lands of one province, would without doubt succeed on those of another; for there is nothing among all the products of the earth which is not afforded by these islands, by searching for the climate—whether hot, cool, or temperate—which is suited to the needs of the crop. Flax would be produced with the same ease as hemp, without any other cultivation than that which rice receives on irrigated soil [en tubigan]; and the seed of both these plants has been sown, and is yielding very well, in the province of Cagayan.22. There is much pitch, and cordage is so abundant that it can be supplied to all the ships of España, with what is made here; and, in order that it may be evident whether it is suited for this purpose, I will explain in detail how on this may depend the question of saving the expense of purchasing cordage in foreign kingdoms, by availing ourselves of that produced in our own dominions. [The fiber used for] cordage is both white and black; the former is known by the name ofabaca, which is obtained from the bark of a tree resembling the plantain, the trunk of which is heckled like [the stems of] hemp. The fiber is very harsh; tar scorches it, and for this reason no tar is used in these ships; it is stronger than hemp, as experience has shown. It is usually of service no longer than for one voyage; the threads shrink much, and on this account all the cordage here is heavier than that of Europa. On twisting it, it is apt to break, and in order to avoid this it is cured by placingit for some time in salt water, and drying it in the sunshine, then storing it until it is needed; for if this precaution be not taken, and it becomes spattered or moistened with fresh water, it will soon become rotten. With some additional expense the cordage could be made finer and smaller, without changing its quality; it would then be more easily handled, and the manœuvers of the ships would be more expeditious.23. The [fiber for] black cordage (known ascabo negro)39is obtained from a plant which they callgamù, very similar to the coco, and it is a veil which covers the entire tree, from the top down; it grows out between each pair of leaves [entre òja y òja] of thegamù, like long hair, or tufts of hair. It is exceedingly harsh, and for this reason it is used only for cables, of all sizes, and to some extent for tackle and rigging; and there is nothing with which to compare its strength. It lasts many years, but it is necessary to keep it either under water, or uncovered, where the dew and the rains bathe it; and in dry weather water is thrown over it, either salt or fresh, for its better preservation; for if it stands in the sun and wind, without these precautions, the threads break, and it loses its extraordinary strength. It is also preserved by keeping it in a shady place, where the wind strikes it but little. These two kinds of cordage are exceedingly abundant in these islands.24. There is another sort of cordage, [made] from the husks of the coco, which is superior to the other two; for with the said fiber the ships can becalked, and [even] after many years thebonote(thus they call it) comes out as fresh, strong, and sound as on the day when it was thrust between the planks. Of this species also there is a great abundance.25. The anchors can be cast here, by putting into operation the iron mines of which mention has been made; and I can say the same of the cannons, the balls, the grape-shot, the bombs, and the grenades. For, I repeat, there is iron in these islands for supplying all the world, and there are men enough to mine and manufacture it, if there be brought from España some skilled directors (who are not found here). If it be desired to work the copper, there are mines of this also, although I cannot speak with the same certainty of these as of the iron mines; for I have not come across any records to show whether the said metal has been worked at any time, and what the product was. The same thing is true in regard to the lead mines, but I have seen ores from Paracale, which were smelted at Bacolor, by order of Don Simon de Anda; and I do not doubt that, if we had skilled master-workmen in this and other industries, many useful discoveries would be made through the agency of the aforesaid company, whose funds would allow the expenses that a private person is unable to incur.26. To this concourse of advantages ought to be added the most important one that our Indians are exceedingly ingenious in the construction of ships. They do not understand arithmetic, or proportions and measures, or the computation of the weights of the various parts, or anything which requires knowledge; but if they have masters who will furnish to them models of the works, they imitate everythingwith the greatest accuracy, for they have exceedingly keen eyesight, and indescribable facility in making whatever they see. For this reason we have here excellent carpenters, calkers, and the other artisans necessary for the construction of ships, and in whatever number may be desired.27. There is not an Indian in these islands who has not a remarkable inclination for the sea; nor is there at present in all the world a people more agile in manœuvers on shipboard, or who learn so quickly nautical terms and whatever a good mariner ought to know. Their disposition is most humble in the presence of a Spaniard, and they show him great respect; but they can teach many of the Spanish mariners who sail in these seas. In the ships of España there are sure to be some Indians from these islands, and investigation can be made to ascertain what they are. The little that I understand about them makes me think that these are a people most suited for the sea; and that, if the ships are manned with crews one-third Spaniards and the other two-thirds Indians, the best mariners of these islands can be obtained, and many of them be employed in our warships. There is hardly an Indian who has sailed the seas who does not understand the mariner’s compass, and therefore on this [Acapulco] trade-route there are some very skilful and dexterous helmsmen. Their disposition is cowardly, but, when placed on a ship, from which they cannot escape, they fight with spirit and courage.28. Let it be considered, then, whether these circumstances are worthy of regard, and highly advantageous for the company of which I am speaking—which likewise can save much money in the differenceof wages; and any one will reason that not one of the foreign companies has had the opportunities which these islands possess for the establishment of a company, since all these things which are easy and of little expense for the Spaniards were almost insuperable difficulties for the Dutch, the English, and the French—who succeeded in overcoming them by dint of silver, of conquests, and of fortifications; and by bringing from Europa supplies which we do not have to bring, because they abound in these islands.29. In order not to be prolix in relating other advantages which the companies in general possess, as compared with the commerce of private persons, I refer to those which are set forth by the distinguished Don Miguel Zavala (in his celebrated memorial40to Phelipe V of blessed memory), whose authority alone would be sufficient in order that no means should be neglected for establishing the aforesaid company in these islands; and I pass to other advantages which the said author explains. But first I will point out what relates to the fortunes in the Indias, which do not pass to the grandsons; this is accounted for by the vicious way in which the creoles, as a rule, are reared—the indolence and vices in which they are brought up, and the luxury and prodigality to which they are accustomed from childhood. If these fortunes, or the greater part of them, were [invested] in the company, they would not be so easily wasted; and, even if the sons should save nothingfrom the profits, they would keep the principal which their fathers might bequeath to them in the aforesaid company. Or, in case there were some persons so reckless as to sell their shares, others would buy these, and the commerce and its gains would always remain for the benefit of the Spaniards.30. With the funds of a company, enterprises could be undertaken that would be both extensive and easy. The province of Pampanga alone is capable of producing more sugar than can be consumed in China (to which the Sangleys carry it when it is cheap), in the coasts of Coromandel, Malabar, and Vengala (where it is scarce, and is sold at a high price), and in all the ports of India; having a market, all that is required of this product will be supplied in abundance, especially if the said company encourages the Indians to cultivate their lands. It would be the same with the dyes; and with deer’s hides, sinews, andtapa(or dried meat) which all come from the same province, and are sold to the Chinese who come here to trade. By establishing a mart in the capital [of Pampanga], on the company’s account, it will gather in all the said products, in exchange for cloth, especially if credit be given to some persons until the time of the harvest; and the gains will be enormous, since profits will be made on the sale of the cloth, on the purchase of the products, and on the export of these to other colonies.31. The same method ought to be observed in the other provinces for promoting the cultivation of the lands and the abundance of so highly valuable products as they yield; by this means there would be obtained in Pangasinan all the gold which the infidels bring down from the mountains there, whichexceeds three hundred thousand pesos each year, and with that which is brought from other provinces reaches five hundred thousand pesos. This commodity is very useful in all the commerce of India, and can also be carried to Europa, as is done by the English and Dutch, to whom regularly comes the gold from Philipinas; its current price is at the rate of sixteen pesos for the tae of 22-carat metal (each tae has the weight of ten reals), and in this ratio is purchased that of 21, 20, 19, and 18 carats.32. In the provinces of Ilocos and Cagayan there might be excellent factories, to work up the great amount of fine cotton which they produce; and, by bringing skilled workmen from the Coast, the figured cottons which are brought thence could be made [here]. In all the Visayan Islands, in the province of Camarines, and in that of Albay, are made the choicest and finest webs, which they callnipis; and others, of commoner quality, which they callguinaras, and use for shirts. In Cagayan and Ilocos are woven very fine handkerchiefs, towels, coverlets, table-linen (which is of as good quality as that made in Flandes),terlingas, etc.; and if only these provinces are stimulated, and factories established with good master-workmen, the company can easily manufacture at least all the cloth which the Indians consume. As these number a million of souls, if we allow to each one an average consumption of no more than one peso, this would amount to a million of pesos; and the greater part of this amount, which now the Chinese, the Dutch, and the English carry away, would remain in the islands, and would increase the profits of the Spaniards and the losses of the said foreigners.33. The cacao is very abundant and cheap, and if it could find a market in other colonies and kingdoms the crop of it would be still greater, because the Indians would devote themselves to its cultivation.41Entire groves of the coffee-tree could be planted, since it yields fruit everywhere; it is milder than that of Mage [i.e., Mocha?] and its fruit is gathered in the year when it is [first] planted, on account of the richness of the soil. Rice and wheat, if the natives applied themselves [to cultivating these], as they would do if they had a market for them, would be sold at good prices throughout China (where these grains are scarce), in Cochinchina, in Siam, in Camboja, in Pegu, and sometimes in the Malabar and Coromandel coasts. Wax—of which these mountains are full, and which is sold by the infidel Indians who inhabit them—has a great consumption here, and much of it is shipped to Nueva España; and if it were bartered for cloth, as was said above, it could be procured in greater quantity. Tobacco, oil, and sulphur are very abundant. Horses are valued in the said coasts, and, although there are many of them in these islands, there would be more if the ranchmen had a better sale for them; for at times they are accustomed to kill the horses, in order to dry their flesh and sell it. Carabaos and deer, whose flesh is likewisedried, yield some pesos. In fine, the following are recognized articles of merchandise in different places in China, Cochinchina, Camboja, and Siam: sugar, rice, cotton; indigo, dyes, sibucao (a sort of Brasil-wood), deer’s sinews, pepper, black tortoise-shell (calledcarey), nacre shells (or mother-of-pearl),42birds’-nests, ebony;tapa(or dried meat),balateandcamaron(both which are shellfish), andbonga; cables ofcabo negro—all of which commodities these islands produce. [To these must be added] cochineal from Nueva España, fine cloths and camlets from España; lead (which also is produced by these islands, although it is not mined), and other articles, as stated above, of which better information will be given by practical merchants.34. For Vengala, the Coromandel and Malabar coasts, Persia, Zurrate, and other parts of India, are found useful indigo, sugar, sibucao, sulphur, siguey, birds’-nests, cotton, rice, gold, and horses; and, in one word, all that has been said in the preceding chapter (speaking of the private commerce which could be carried on via the Cape of Good Hope) ought to be understood, with greater reason, of the commerce which can be carried on by the company of which this chapter treats. For this reason I omit what I said there of the cinnamon and other products which the company could develop, with its funds and systematic arrangements, better than an individual could; for the latter may die, and the former continues perpetually to carry on the enterprises of manufactures, mining operations, the cultivation andpromotion of crops, and the exportation of all these to foreign kingdoms and colonies. For all will be successful in these islands with the Indians, who, if well paid, will do what they are ordered to.4335. I have already mentioned the indescribable readiness with which our Indians learn perfectly whatever they see, even without the necessity of a master to instruct them. There are some who write well, without knowing how to read, as they have had no teacher; for by their natural inclination they devote themselves to imitation of the letters, and easily succeed in doing so, without being able to read what they write. This is one proof of their readiness, above mentioned, but they have still more of it in embroidery. It is a marvelous thing to see, that there is hardly an Indian who cannot embroider, and that they learn this art without any teacher save their own attention and their extraordinary patience. The hands of the Indian women are the most delicate, for every kind of sewing and needlework; and the company, by availing itself of this skill of our Indian men and women, could employ an innumerable number of people in embroidery, needlework, and the making of hose—they make them of fine quality, in Zebu of cotton, and in La Laguna of silk—and obtain much profit through these industries, in finding a market for them.36. Near Paracali in the province of Camarines there is abundance of rock crystal, very transparent and choice. In the province of Cagayan are some stones that are very singular and rare; one of theseis emerald-green veined with gold or golden-brown, and when well polished it looks like a mirror, or like the finest jasper. Another is a stone as white as marble, similar to that which abounds in the mountains of San Matheo near Manila (from which has been made the paved floor of the Society’s church in this city); and who knows what Nature is keeping concealed, for our enlightenment, in the provinces and mountains of these islands? Assiduity, good taste, and the desire for knowledge would discover many things if there were Spaniards here who would devote themselves to the investigation and examination of the many rarities in the plan of Nature.37. If there were any chemist and herbalist here, this likewise would be an immense aid for making further discoveries and experimenting with many trees, roots, herbs, and medicinal stones. For instance, thenarra;44in cups made from the wood of this tree water becomes, in a very short time, of a most beautiful blue color, and people say that it is useful for curing obstructions; the wood calledmanunga, which is extolled for its remarkable virtues; the seeds of thecatbalonga, or St. Ignatius’s kernels, which are already known and esteemed inEuropa; the shell in which the cocoanut grows, in which water soon becomes exceedingly bitter; bezoar stones; and innumerable other articles from which homely remedies are made here, among the Spaniards as well as among the Indians. The latter make much use of the remedies produced in the islands, and know some, both herbs and woods, which cure the most hideous and bloody wound in twenty-four hours. The rhubarb45may be smelled [sehuele] in many woodlands, and no one is acquainted with it; the herb of Calamba is especially good for preventing, by [the application of] its juice, the bad results of a blow or fall. More than all, in the mountains of Mindoro there is a tree calledcalinga, the bark of which has a delicious odor, which smells like cinnamon, cloves, and pepper all combined; I made a small quantity of chocolate, using the said bark powdered instead of cinnamon, and it was very pleasing to the taste. In the ship “Santissima Trinidad,” which the English captured, I was sending to Madrid some lozenges and many pieces of the said bark, which is a delicious flavor for seasoning ragouts; and I have used it in my household. Señor Anda also sent to Madrid the aforesaid bark, and, I think, chocolate made with it powdered. So great is the abundance of these trees that there are mountains, many leguas in extent, which produce them.38. If the foreigners had these trees, they would have already introduced in the world the use of thiscommodity, with enormous profits; and we, if we possessed industry, and zeal for the interests of the nation, would have been able with this tree, to lessen the consumption of the cinnamon and cloves of the Dutch. Let these points be considered, and the advantages will be recognized which can assuredly be expected by the company which may be formed in these islands—regarding it as certain that nothing will make progress, except by this means; rather, this colony will in a little while go wretchedly to destruction, without the least hope for its reëstablishment.39. By way of conclusion to this chapter, I will note as the last (and an important) advantage of the aforesaid company the conspicuously fair treatment and friendly reception which the Spaniards have experienced, and may expect, throughout India. Our silver [money] is in good repute in all regions, and those peoples, especially the Chinese and the princes of India, show the greatest eagerness and make great efforts to obtain it, as being the most valuable for them; and, although the Dutch, English, French and other powers trade in this part of the world with our pesos, the Spanish ships are always better received in those ports, because they carry more silver and more products of these islands, which are held in very evident esteem.40. Since I have been in Manila, I have seen only the traders from Canton and Emui in China visit this port,46except the ship “Guadalupe,” whichwent to the [Malabar?] Coast; and through its captain and officers I have heard of the friendly reception which they met in all the ports of India. But in other days the commerce of this colony was more extensive. In China it was established in the year 1598, and has been maintained without interruption; the king of Camboja asked this government for aid, and it was sent to him in the year 1594, leaving commerce with that country established. In the same year the king of Siam sent an embassy to open commerce with these islands, and in 1599 the said commerce was actually begun, by vessels which went from these islands, and which came from Siam, with which country the Spaniards have maintained the most friendly relations. This was recently experienced in the case of the ship which was built there inthe year 53, by order of our governor the Marques de Ovando, who sent thither letters for the said king of Siam; and the latter, in virtue of these, furnished a sufficient sum of money, and gave all the other assistance which they asked from him. In the year 718, the same king of Siam granted a piece of land, in order that the Spaniards might establish a trading-post there.41. In the year 1596, commerce with these islands was established in Cochinchina, and the Spaniards declined to establish a trading-post [on the land] which this king afterward bestowed upon them. In Tunquin also the Spaniards undertook their commerce; and in Zurrate, Vengala, and other kingdoms of India, both Moorish and heathen, they have been equally well received. Although, on account of the reverses of this commonwealth and the lack of courage in its merchants, the Spaniards have given up this commerce for several years past, it cannot be doubted that the aforesaid company has the opportunity to establish itself advantageously, furnishing a market for the products of these islands, bringing hither those of the said kingdoms, and establishing (if that shall be expedient) some trading-posts—with which their purchases will be at more reasonable prices, and their gains in España and Nueva España more assured.42. Here at the same time another advantage presents itself. The commerce which now is carried on with Acapulco by private persons suffers many losses, occasioned by the unsuccessful fairs there. These losses originate in the necessity of selling the goods in order to send back [to Manila] the money that they produce; for even if the merchants lose in the sale something on the principal which they shipped,it is necessary to sell their goods in order to repay what they obtained from theobras piasfor their investments. If the goods are left in Nueva España, in order to take advantage of an opportunity for better sale, they cannot meet the cost of the expenses, and here find themselves tormented by their creditors. The company cannot be placed in such straits, but will always sell their wares to advantage and profit; for when in Acapulco they do not obtain good returns on the merchandise, they can transfer it to the storehouse which they will have to establish in Mexico. This expedient alone will be sufficient to induce the Mexicans to make strenuous endeavors to be preferred in the sale at the said port, because they will not deceive the said company as they now do private persons, acting aggressively against them, in order to fix arbitrarily the prices of their goods—constrained as our merchants are to sell them, on account of the limitation of the time [of the fair], since the galleons ought to sail from the said port by the twenty-fifth of March.43. I will conclude this chapter with the authority of the celebrated Don Geronimo Ustariz,47who, although he disapproves the commerce [managed] by companies in España and the Americas, considers it expedient in these islands; and indeed, when his arguments against the establishment of the said companies are examined, it will be seen that they do not apply to this commerce—where, on the contrary, it will be seen that not even the least progress can besecured, unless the company of which I am speaking be formed.44. The same author, speaking of the commerce in spices, is inclined to think that it ought to be carried on directly by the Spaniards, by the same route which other nations adopt for it, arranging the purchases in these islands in order to supply the Americas and all España by the ports of Acapulco, Panama, and Portovelo. This exhibits the utility of what I have herein set forth, for it is confirmed by the three most earnest and distinguished Spaniards of this century, to wit, the Visconde del Puerto, Don Miguel de Zabala, and Don Geronimo Ustariz. But I am surprised that this last-named writer, who treats the subject of commerce so extensively and so acutely, with the greatest erudition and knowledge of whatever there is to be known of foreign nations and countries, should be ignorant that these islands produce in abundance cinnamon, pepper, and nutmeg, which, without the necessity of buying it from the Dutch, we can use for our benefit, in order to supply all our own dominions. This is a proof that the Spaniards of Philipinas do not apply themselves to becoming acquainted with this country, in order to make known its products; and that they would not be [thus] ignorant if the alcaldes-mayor would make reports—one to their successors, and another to the government—of the condition of each province, as I advised his Majesty in the past year of 1760.

Chapter Fourth: Of the necessity for forming a company in these islands1. By a royal decree dated at Sevilla on March 23, 1733 (in which the project was carried out which was approved by his Majesty on April 26, 1732), there was established by our lord Don Phelipe Fifth, of undying memory, a company with the name of “Royal Company of Philipinas,”35under fifty-eight articles and stipulations. These were full of the most unusual privileges and liberties that can be granted, and were even more advantageous to the Spaniards than those which Louis Fourteenth granted to the French for their Oriental Company; but I do not know exactly for what reason—some attribute it to the loss of Torres’s trading-fleet—the paternal affection did not prove effectual with which our beloved king and sovereign took an interest in making the Spanish monarchy prosperous by the extension and promotion of commerce (the only means for securing wealth), imitating the examples of almost all the nations of Europa, who, in order to become rich, have established their companies in the Orient.2–12. [In these sections Viana expands this last statement, enumerating the nations who have enriched themselves by the Oriental trade, and the companies formed in each for this purpose. First were the Genovese and Venetians, who traded with India by way of the Red Sea; they were afterward driven out of this trade by the Portuguese, in consequence of the discovery by the latter of the route via Cape of Good Hope. (Section 3.) “Portuguese trading-fleets of thirty ships came to the commerce of India every year, and for Brasil alone sailed fifteen to twentyships laden with merchandise from India—besides others which carried on trade in China, Japon, Persia, Arabía, Mosambique, Melinda, Sofala, and other regions. But now that commerce is so reduced that only one or, at most, two ships sail from Lisboa yearly, which would not be the case if they had established a company with adequate capital, which is the only way of making commerce lasting.” The Dutch at first bought spices from the Portuguese, and then resold them at a huge profit to the other European nations; but Phelipe II prohibited the spice trade to Portugal, and the Dutch therefore formed a company to operate in the Orient, and trade directly with its peoples. As finally constituted in 1602, this company had (section 6) a capital of 6,600,000 florins (“according to Savary”); and “in less than four years the members received the principal of their shares with the great profits which they obtained.” At the time of Viana’s writing, the Dutch company were maintaining “twelve thousand men, regular troops, in their twenty-five fortresses in India, and were able to equip 30,000 militia in their colonies, especially that of Batavia” (Savary). Viana cites another authority, Samuel Ricard, who places this militia force at 100,000, and states that the company employed in the Eastern trade more than 160 ships, each carrying thirty to sixty cannon, besides forty ships of the line (which number was increased in time of war). This enterprise ruined the commerce of the Portuguese (who had been the first to open the sea-route to India); “from that time until now it has steadily diminished, and is the poorest in all India; this has been the result of their not having formed a company with capital, and withrespectable forces to oppose the conquests which the Dutch made. For they had a better opportunity than the latter, and it would have cost them less to maintain a flourishing commerce, as was that which they already possessed, than it cost the Dutch to establish a new commerce by dint of money, conquests, fortifications, and enormous expenses.” The English company (section 8) sent out its first fleet (of four ships) in the year 1600; its capital was 369,891 pounds sterling. After various fluctuations of fortune, it was reëstablished in 1698, and attained great prosperity, so that its capital had increased to 1,703,422 pounds. In Viana’s time, “the ships from Madrast for London (more than fifty in number) carry annual cargoes of five to six million pounds, according to the estimate of Sabary; and, taking into consideration the increase which this commerce has had since he published his famous work, the ‘Universal Dictionary,’ it must by this time be worth some ten millions. This does not include the operations of the private English traders who traffic among the colonies of India; this may be inferred from the duties which they pay in Madrast, which, at the rate of five per cent, produce for the company 80,000 pagodas. This sum amounts to 120,000 or 130,000 pesos, estimating the pagoda at twelve and sometimes thirteen silver reals.” The English company were maintaining in constant operation 150 ships and fragatas, and more than fifty smaller vessels, employed in their commerce between India and London alone; to the great expenses of this navy must be added those of the company’s forts and garrisons in India, which indicate how enormous were their profits. An Englishman told Viana that the king ofEngland was owing to the company more than 36,000,000 pesos, the amount of loans which they had made to the crown in various emergencies. The Oriental commerce of the Dutch was further encroached upon (section 11) by the trading companies formed later in France, Sweden, and Denmark, and proposed in Prussia;36these were protected and fosteredby their respective governments. The commerce of the Dutch “would have been ruined if it were not for their being exclusive owners of the spice trade—of which only the Spaniards are able to deprive them, since we have in these islands cinnamon, pepper, cloves, and nutmeg.” As all those nations maintained forts, garrisons, and war-ships, the necessity of opposing these armaments with like forces has imposed on the Dutch enormous additional expenses. Viana says (section 12): “I know not what reason there can be why that which is so beneficial to all the powers should not, with even greater cause, be an advantage to España, which holds her conquests in peaceable possession, and has valuable products in her dominions; moreover, she has forts and ports which at little cost can be rendered impregnable, and better opportunities than any other nation for a very flourishing commerce. Yet she labors only to enrichher enemies, abandoning to them the commerce which our people are unwilling to carry on, and surrendering to them our treasures and wealth, in exchange for the greater part of the commodities and products which our own lands produce.”]13. If the Spaniards would form a company in the islands, similar to the foreign companies, and according to the pious anxiety with which the magnanimous heart of our beloved king and sovereign Don Phelipe Fifth, of undying memory, was concerned in this matter, all the nations who trade in India would have the same experience as the Portuguese and Dutch. Our commerce would annihilate or [at least] diminish that of all the India companies, who cannot find a market for their goods if they do not trade these in our dominions—and this they could not do if the Spanish company had large capital, and ships for navigation and trade in España and the Americas. If we could fortify the towns and garrison them, as has already been explained, the other nations would find themselves under the necessity of spending much more than they now do, in order to defend themselves against our power, if war should break out. This increase of expenses on the one hand, and diminution of their commerce on the other, are two excellent principles, which promise many advantages to the Spanish company—which, as it is not, like the others, compelled to incur these expenses, will be able to sell its commodities at lower prices, and the gains will be more certain.14. In order to facilitate the establishment of this most beneficial company, the royal protection of our sovereign is absolutely necessary, and with it must be banished the contemptuous notion that the Spaniardsform of the commercial career; for that notion usually leads them to keep their chests full of silver, for which they sell the products of their family estates. As a rule, the Spaniards spend with great economy what is necessary for their maintenance, especially those in the little hamlets throughout the kingdom; and, as they enjoy no commerce, they deprive themselves of the benefits arising from commercial activities, with detriment to their families and to the public welfare. On the other hand, they imagine that there is too great a risk in the remittance of their silver by sea, because they are so little (or not at all) acquainted with nautical science and mercantile affairs; and, as timidity prevails in their minds over ambition, they consider themselves fortunate to keep their riches under their own eyes, without thinking of investing them. But they would take hazards on their money, if they were touched by that eager desire for gain which is inseparable from all commerce, and which is stimulated by the lure of profits.15. There are, of course, many persons whose ability enables them to understand thoroughly the benefits of commerce; but they live remote from the marine ports, they have not trustworthy acquaintances to whom they can confide the management of their capital, and they sorrowfully deprive themselves of the benefits which they would derive from its employment, the result of which is that they lead idle lives, or sometimes yield to an extravagance which is excessive and impairs their fortunes. Even more melancholy than all that I have related is the sight of the Spanish nobility, without any occupation, and, as a rule, reared in extreme ignorance and idleness.This is the source of many excesses, the beginning of ruin to the most robust constitutions, a hindrance to the generation of children, and a cause of the lessening of population which is continually growing more worthy of consideration.16. Let there be formed, then, an Oriental company, and let the nobles of the kingdom contribute its funds; the profits [on these] will awaken in them a liking for commerce, and they will become acquainted with this most useful branch of knowledge. They will maintain their [business] relations, they will have some occupation, and will not use up their fortunes with vicious habits; their children will be brought up with a liking for commerce, and the fathers will have the satisfaction of employing some of their sons in appointments under the same company. This is the most certain means for securing the happiness of families and the prosperity of the entire monarchy; for, if commerce and the naval service (which follows the other closely) are promoted, there will be no vagabonds or idlers. Rather, idleness will come to an end, and with it many vices, on account of the enormous number of men whom a company with large capital needs to employ by land and sea—not only for its business positions, but for manufactures and navigation, in which persons from all spheres of life find an opening.17. What a number of people must be employed by the English and Dutch companies in the more than one hundred and fifty ships which each company maintains for its commerce, and in the various colonies in which they have established that commerce! And what advantages result to these two powers from keeping so many people busy, maintainingthem at the company’s expense, and freeing them from the idleness in which they would [otherwise] live! If those countries had not so great a commerce, vagabonds and idlers would abound in them; but this class of people is not seen there. On the contrary, there is great application to all the arts and sciences; for all have employment, and all are useful—some in manufactures, others in the military or the naval service, and others in commerce, etc.18. The attainment of these fortunate advantages depends on whether our beloved king and sovereign will assure to his vassals all his royal protection for the promotion of the said company, following the example of his glorious father, Don Phelipe Fifth, ever to be remembered; for the money of the royal treasury is the main foundation for this great and most useful enterprise. For it cannot be doubted that, animated by the same spirit, there will be many contributors to the capital of the said company—all the nobility of España, from the highest rank down; the guilds of Madrid, which now form a body of considerable importance; all the merchants of España, the two Americas, and these islands; some foreigners; and many religious communities, who have set aside the proceeds of their funds for pious contributions—convinced of the benefits of this commerce, and of the prosperity which will ensue to the Spanish nation; and regarding it as certain that (as will be mentioned hereafter) our Spanish merchants, if assured of their gains by way of these seas, and the method of supplying the Americas, in great part, with the materials for clothing which they need, without the burden of the royal imposts, will not long for the illegal purchase of foreign commodities.19. There are also other advantages, worthy of being known, which render the above-mentioned project more feasible. One of these is the abundance of timber for the construction of ships; at least ten ships can be built every year in these islands; and, by taking care of their many forests, even if a hundred ships were built now there would be enough timber left to construct every year the ten that I have mentioned. The Viscount del Puerto greatly praises (in book 9, chapter 10, article 2 of hisReflecciones militares37) the project of a friend of his (whose name he conceals) for forming a company in these islands; and among the products which it yields he mentions the timber calledtiga(it is not known here by this name), extolling its strength, and setting forth the advantages of carrying this wood to España as ballast for the ships.20. This wood (of which, according to the said author, the strong ships of Philipinas are built) is in my opinion theteca[i.e., teak], which comes from the Coast; or that which is known here (and I am inclined to think that this is meant) by the name ofmolave. This abounds in all the islands, and is so compact that it petrifies in the water, which I myself have seen; of it are made the ribs of the ship’s frame, the knees, and all the principal timbers that strengthen the ship. The keels are made of another wood, equally strong, which is calledguijo; it never rots in the water, nor does the boring worm, which is bred on the ships in the port of Cavite, penetrate it.There are other woods as useful as theguijo, and among them is thedongon, which is better. As a rule, the lower masts are made from themangachapui, which is another timber of especial value; for, although it is somewhat heavy, it never splinters, and is very elastic. The yards and topmasts are ofpalo maria; and for whatever is made of boards thelavan, thebanaba, and thetangili38are also used, from which kinds of wood very long and broad planks are obtained. There are pines here, and various other kinds of trees, which can be put to the same use; and plantations could be made of thetecatree (the wood of which lasts more than a hundred years in the water), for there is more than enough land for this purpose in the vicinity of Manila and Cavite. Likewise, sawmills could be built, in order to save the expense of [hiring] sawyers; also dry-docks, for careening the ships and preserving them under cover.21. In Ilocos are manufactured the blankets which serve as sails for our ships; and canvas can be made (as it has been) of excellent quality and in enormous quantities, for there is no end to the cottonwhich is and can be gathered, with the greatest facility, and of the finest quality. Moreover, on the many tracts of land which the sloth of the Indians leaves untilled hemp could be cultivated—which, even if it should not yield well on the lands of one province, would without doubt succeed on those of another; for there is nothing among all the products of the earth which is not afforded by these islands, by searching for the climate—whether hot, cool, or temperate—which is suited to the needs of the crop. Flax would be produced with the same ease as hemp, without any other cultivation than that which rice receives on irrigated soil [en tubigan]; and the seed of both these plants has been sown, and is yielding very well, in the province of Cagayan.22. There is much pitch, and cordage is so abundant that it can be supplied to all the ships of España, with what is made here; and, in order that it may be evident whether it is suited for this purpose, I will explain in detail how on this may depend the question of saving the expense of purchasing cordage in foreign kingdoms, by availing ourselves of that produced in our own dominions. [The fiber used for] cordage is both white and black; the former is known by the name ofabaca, which is obtained from the bark of a tree resembling the plantain, the trunk of which is heckled like [the stems of] hemp. The fiber is very harsh; tar scorches it, and for this reason no tar is used in these ships; it is stronger than hemp, as experience has shown. It is usually of service no longer than for one voyage; the threads shrink much, and on this account all the cordage here is heavier than that of Europa. On twisting it, it is apt to break, and in order to avoid this it is cured by placingit for some time in salt water, and drying it in the sunshine, then storing it until it is needed; for if this precaution be not taken, and it becomes spattered or moistened with fresh water, it will soon become rotten. With some additional expense the cordage could be made finer and smaller, without changing its quality; it would then be more easily handled, and the manœuvers of the ships would be more expeditious.23. The [fiber for] black cordage (known ascabo negro)39is obtained from a plant which they callgamù, very similar to the coco, and it is a veil which covers the entire tree, from the top down; it grows out between each pair of leaves [entre òja y òja] of thegamù, like long hair, or tufts of hair. It is exceedingly harsh, and for this reason it is used only for cables, of all sizes, and to some extent for tackle and rigging; and there is nothing with which to compare its strength. It lasts many years, but it is necessary to keep it either under water, or uncovered, where the dew and the rains bathe it; and in dry weather water is thrown over it, either salt or fresh, for its better preservation; for if it stands in the sun and wind, without these precautions, the threads break, and it loses its extraordinary strength. It is also preserved by keeping it in a shady place, where the wind strikes it but little. These two kinds of cordage are exceedingly abundant in these islands.24. There is another sort of cordage, [made] from the husks of the coco, which is superior to the other two; for with the said fiber the ships can becalked, and [even] after many years thebonote(thus they call it) comes out as fresh, strong, and sound as on the day when it was thrust between the planks. Of this species also there is a great abundance.25. The anchors can be cast here, by putting into operation the iron mines of which mention has been made; and I can say the same of the cannons, the balls, the grape-shot, the bombs, and the grenades. For, I repeat, there is iron in these islands for supplying all the world, and there are men enough to mine and manufacture it, if there be brought from España some skilled directors (who are not found here). If it be desired to work the copper, there are mines of this also, although I cannot speak with the same certainty of these as of the iron mines; for I have not come across any records to show whether the said metal has been worked at any time, and what the product was. The same thing is true in regard to the lead mines, but I have seen ores from Paracale, which were smelted at Bacolor, by order of Don Simon de Anda; and I do not doubt that, if we had skilled master-workmen in this and other industries, many useful discoveries would be made through the agency of the aforesaid company, whose funds would allow the expenses that a private person is unable to incur.26. To this concourse of advantages ought to be added the most important one that our Indians are exceedingly ingenious in the construction of ships. They do not understand arithmetic, or proportions and measures, or the computation of the weights of the various parts, or anything which requires knowledge; but if they have masters who will furnish to them models of the works, they imitate everythingwith the greatest accuracy, for they have exceedingly keen eyesight, and indescribable facility in making whatever they see. For this reason we have here excellent carpenters, calkers, and the other artisans necessary for the construction of ships, and in whatever number may be desired.27. There is not an Indian in these islands who has not a remarkable inclination for the sea; nor is there at present in all the world a people more agile in manœuvers on shipboard, or who learn so quickly nautical terms and whatever a good mariner ought to know. Their disposition is most humble in the presence of a Spaniard, and they show him great respect; but they can teach many of the Spanish mariners who sail in these seas. In the ships of España there are sure to be some Indians from these islands, and investigation can be made to ascertain what they are. The little that I understand about them makes me think that these are a people most suited for the sea; and that, if the ships are manned with crews one-third Spaniards and the other two-thirds Indians, the best mariners of these islands can be obtained, and many of them be employed in our warships. There is hardly an Indian who has sailed the seas who does not understand the mariner’s compass, and therefore on this [Acapulco] trade-route there are some very skilful and dexterous helmsmen. Their disposition is cowardly, but, when placed on a ship, from which they cannot escape, they fight with spirit and courage.28. Let it be considered, then, whether these circumstances are worthy of regard, and highly advantageous for the company of which I am speaking—which likewise can save much money in the differenceof wages; and any one will reason that not one of the foreign companies has had the opportunities which these islands possess for the establishment of a company, since all these things which are easy and of little expense for the Spaniards were almost insuperable difficulties for the Dutch, the English, and the French—who succeeded in overcoming them by dint of silver, of conquests, and of fortifications; and by bringing from Europa supplies which we do not have to bring, because they abound in these islands.29. In order not to be prolix in relating other advantages which the companies in general possess, as compared with the commerce of private persons, I refer to those which are set forth by the distinguished Don Miguel Zavala (in his celebrated memorial40to Phelipe V of blessed memory), whose authority alone would be sufficient in order that no means should be neglected for establishing the aforesaid company in these islands; and I pass to other advantages which the said author explains. But first I will point out what relates to the fortunes in the Indias, which do not pass to the grandsons; this is accounted for by the vicious way in which the creoles, as a rule, are reared—the indolence and vices in which they are brought up, and the luxury and prodigality to which they are accustomed from childhood. If these fortunes, or the greater part of them, were [invested] in the company, they would not be so easily wasted; and, even if the sons should save nothingfrom the profits, they would keep the principal which their fathers might bequeath to them in the aforesaid company. Or, in case there were some persons so reckless as to sell their shares, others would buy these, and the commerce and its gains would always remain for the benefit of the Spaniards.30. With the funds of a company, enterprises could be undertaken that would be both extensive and easy. The province of Pampanga alone is capable of producing more sugar than can be consumed in China (to which the Sangleys carry it when it is cheap), in the coasts of Coromandel, Malabar, and Vengala (where it is scarce, and is sold at a high price), and in all the ports of India; having a market, all that is required of this product will be supplied in abundance, especially if the said company encourages the Indians to cultivate their lands. It would be the same with the dyes; and with deer’s hides, sinews, andtapa(or dried meat) which all come from the same province, and are sold to the Chinese who come here to trade. By establishing a mart in the capital [of Pampanga], on the company’s account, it will gather in all the said products, in exchange for cloth, especially if credit be given to some persons until the time of the harvest; and the gains will be enormous, since profits will be made on the sale of the cloth, on the purchase of the products, and on the export of these to other colonies.31. The same method ought to be observed in the other provinces for promoting the cultivation of the lands and the abundance of so highly valuable products as they yield; by this means there would be obtained in Pangasinan all the gold which the infidels bring down from the mountains there, whichexceeds three hundred thousand pesos each year, and with that which is brought from other provinces reaches five hundred thousand pesos. This commodity is very useful in all the commerce of India, and can also be carried to Europa, as is done by the English and Dutch, to whom regularly comes the gold from Philipinas; its current price is at the rate of sixteen pesos for the tae of 22-carat metal (each tae has the weight of ten reals), and in this ratio is purchased that of 21, 20, 19, and 18 carats.32. In the provinces of Ilocos and Cagayan there might be excellent factories, to work up the great amount of fine cotton which they produce; and, by bringing skilled workmen from the Coast, the figured cottons which are brought thence could be made [here]. In all the Visayan Islands, in the province of Camarines, and in that of Albay, are made the choicest and finest webs, which they callnipis; and others, of commoner quality, which they callguinaras, and use for shirts. In Cagayan and Ilocos are woven very fine handkerchiefs, towels, coverlets, table-linen (which is of as good quality as that made in Flandes),terlingas, etc.; and if only these provinces are stimulated, and factories established with good master-workmen, the company can easily manufacture at least all the cloth which the Indians consume. As these number a million of souls, if we allow to each one an average consumption of no more than one peso, this would amount to a million of pesos; and the greater part of this amount, which now the Chinese, the Dutch, and the English carry away, would remain in the islands, and would increase the profits of the Spaniards and the losses of the said foreigners.33. The cacao is very abundant and cheap, and if it could find a market in other colonies and kingdoms the crop of it would be still greater, because the Indians would devote themselves to its cultivation.41Entire groves of the coffee-tree could be planted, since it yields fruit everywhere; it is milder than that of Mage [i.e., Mocha?] and its fruit is gathered in the year when it is [first] planted, on account of the richness of the soil. Rice and wheat, if the natives applied themselves [to cultivating these], as they would do if they had a market for them, would be sold at good prices throughout China (where these grains are scarce), in Cochinchina, in Siam, in Camboja, in Pegu, and sometimes in the Malabar and Coromandel coasts. Wax—of which these mountains are full, and which is sold by the infidel Indians who inhabit them—has a great consumption here, and much of it is shipped to Nueva España; and if it were bartered for cloth, as was said above, it could be procured in greater quantity. Tobacco, oil, and sulphur are very abundant. Horses are valued in the said coasts, and, although there are many of them in these islands, there would be more if the ranchmen had a better sale for them; for at times they are accustomed to kill the horses, in order to dry their flesh and sell it. Carabaos and deer, whose flesh is likewisedried, yield some pesos. In fine, the following are recognized articles of merchandise in different places in China, Cochinchina, Camboja, and Siam: sugar, rice, cotton; indigo, dyes, sibucao (a sort of Brasil-wood), deer’s sinews, pepper, black tortoise-shell (calledcarey), nacre shells (or mother-of-pearl),42birds’-nests, ebony;tapa(or dried meat),balateandcamaron(both which are shellfish), andbonga; cables ofcabo negro—all of which commodities these islands produce. [To these must be added] cochineal from Nueva España, fine cloths and camlets from España; lead (which also is produced by these islands, although it is not mined), and other articles, as stated above, of which better information will be given by practical merchants.34. For Vengala, the Coromandel and Malabar coasts, Persia, Zurrate, and other parts of India, are found useful indigo, sugar, sibucao, sulphur, siguey, birds’-nests, cotton, rice, gold, and horses; and, in one word, all that has been said in the preceding chapter (speaking of the private commerce which could be carried on via the Cape of Good Hope) ought to be understood, with greater reason, of the commerce which can be carried on by the company of which this chapter treats. For this reason I omit what I said there of the cinnamon and other products which the company could develop, with its funds and systematic arrangements, better than an individual could; for the latter may die, and the former continues perpetually to carry on the enterprises of manufactures, mining operations, the cultivation andpromotion of crops, and the exportation of all these to foreign kingdoms and colonies. For all will be successful in these islands with the Indians, who, if well paid, will do what they are ordered to.4335. I have already mentioned the indescribable readiness with which our Indians learn perfectly whatever they see, even without the necessity of a master to instruct them. There are some who write well, without knowing how to read, as they have had no teacher; for by their natural inclination they devote themselves to imitation of the letters, and easily succeed in doing so, without being able to read what they write. This is one proof of their readiness, above mentioned, but they have still more of it in embroidery. It is a marvelous thing to see, that there is hardly an Indian who cannot embroider, and that they learn this art without any teacher save their own attention and their extraordinary patience. The hands of the Indian women are the most delicate, for every kind of sewing and needlework; and the company, by availing itself of this skill of our Indian men and women, could employ an innumerable number of people in embroidery, needlework, and the making of hose—they make them of fine quality, in Zebu of cotton, and in La Laguna of silk—and obtain much profit through these industries, in finding a market for them.36. Near Paracali in the province of Camarines there is abundance of rock crystal, very transparent and choice. In the province of Cagayan are some stones that are very singular and rare; one of theseis emerald-green veined with gold or golden-brown, and when well polished it looks like a mirror, or like the finest jasper. Another is a stone as white as marble, similar to that which abounds in the mountains of San Matheo near Manila (from which has been made the paved floor of the Society’s church in this city); and who knows what Nature is keeping concealed, for our enlightenment, in the provinces and mountains of these islands? Assiduity, good taste, and the desire for knowledge would discover many things if there were Spaniards here who would devote themselves to the investigation and examination of the many rarities in the plan of Nature.37. If there were any chemist and herbalist here, this likewise would be an immense aid for making further discoveries and experimenting with many trees, roots, herbs, and medicinal stones. For instance, thenarra;44in cups made from the wood of this tree water becomes, in a very short time, of a most beautiful blue color, and people say that it is useful for curing obstructions; the wood calledmanunga, which is extolled for its remarkable virtues; the seeds of thecatbalonga, or St. Ignatius’s kernels, which are already known and esteemed inEuropa; the shell in which the cocoanut grows, in which water soon becomes exceedingly bitter; bezoar stones; and innumerable other articles from which homely remedies are made here, among the Spaniards as well as among the Indians. The latter make much use of the remedies produced in the islands, and know some, both herbs and woods, which cure the most hideous and bloody wound in twenty-four hours. The rhubarb45may be smelled [sehuele] in many woodlands, and no one is acquainted with it; the herb of Calamba is especially good for preventing, by [the application of] its juice, the bad results of a blow or fall. More than all, in the mountains of Mindoro there is a tree calledcalinga, the bark of which has a delicious odor, which smells like cinnamon, cloves, and pepper all combined; I made a small quantity of chocolate, using the said bark powdered instead of cinnamon, and it was very pleasing to the taste. In the ship “Santissima Trinidad,” which the English captured, I was sending to Madrid some lozenges and many pieces of the said bark, which is a delicious flavor for seasoning ragouts; and I have used it in my household. Señor Anda also sent to Madrid the aforesaid bark, and, I think, chocolate made with it powdered. So great is the abundance of these trees that there are mountains, many leguas in extent, which produce them.38. If the foreigners had these trees, they would have already introduced in the world the use of thiscommodity, with enormous profits; and we, if we possessed industry, and zeal for the interests of the nation, would have been able with this tree, to lessen the consumption of the cinnamon and cloves of the Dutch. Let these points be considered, and the advantages will be recognized which can assuredly be expected by the company which may be formed in these islands—regarding it as certain that nothing will make progress, except by this means; rather, this colony will in a little while go wretchedly to destruction, without the least hope for its reëstablishment.39. By way of conclusion to this chapter, I will note as the last (and an important) advantage of the aforesaid company the conspicuously fair treatment and friendly reception which the Spaniards have experienced, and may expect, throughout India. Our silver [money] is in good repute in all regions, and those peoples, especially the Chinese and the princes of India, show the greatest eagerness and make great efforts to obtain it, as being the most valuable for them; and, although the Dutch, English, French and other powers trade in this part of the world with our pesos, the Spanish ships are always better received in those ports, because they carry more silver and more products of these islands, which are held in very evident esteem.40. Since I have been in Manila, I have seen only the traders from Canton and Emui in China visit this port,46except the ship “Guadalupe,” whichwent to the [Malabar?] Coast; and through its captain and officers I have heard of the friendly reception which they met in all the ports of India. But in other days the commerce of this colony was more extensive. In China it was established in the year 1598, and has been maintained without interruption; the king of Camboja asked this government for aid, and it was sent to him in the year 1594, leaving commerce with that country established. In the same year the king of Siam sent an embassy to open commerce with these islands, and in 1599 the said commerce was actually begun, by vessels which went from these islands, and which came from Siam, with which country the Spaniards have maintained the most friendly relations. This was recently experienced in the case of the ship which was built there inthe year 53, by order of our governor the Marques de Ovando, who sent thither letters for the said king of Siam; and the latter, in virtue of these, furnished a sufficient sum of money, and gave all the other assistance which they asked from him. In the year 718, the same king of Siam granted a piece of land, in order that the Spaniards might establish a trading-post there.41. In the year 1596, commerce with these islands was established in Cochinchina, and the Spaniards declined to establish a trading-post [on the land] which this king afterward bestowed upon them. In Tunquin also the Spaniards undertook their commerce; and in Zurrate, Vengala, and other kingdoms of India, both Moorish and heathen, they have been equally well received. Although, on account of the reverses of this commonwealth and the lack of courage in its merchants, the Spaniards have given up this commerce for several years past, it cannot be doubted that the aforesaid company has the opportunity to establish itself advantageously, furnishing a market for the products of these islands, bringing hither those of the said kingdoms, and establishing (if that shall be expedient) some trading-posts—with which their purchases will be at more reasonable prices, and their gains in España and Nueva España more assured.42. Here at the same time another advantage presents itself. The commerce which now is carried on with Acapulco by private persons suffers many losses, occasioned by the unsuccessful fairs there. These losses originate in the necessity of selling the goods in order to send back [to Manila] the money that they produce; for even if the merchants lose in the sale something on the principal which they shipped,it is necessary to sell their goods in order to repay what they obtained from theobras piasfor their investments. If the goods are left in Nueva España, in order to take advantage of an opportunity for better sale, they cannot meet the cost of the expenses, and here find themselves tormented by their creditors. The company cannot be placed in such straits, but will always sell their wares to advantage and profit; for when in Acapulco they do not obtain good returns on the merchandise, they can transfer it to the storehouse which they will have to establish in Mexico. This expedient alone will be sufficient to induce the Mexicans to make strenuous endeavors to be preferred in the sale at the said port, because they will not deceive the said company as they now do private persons, acting aggressively against them, in order to fix arbitrarily the prices of their goods—constrained as our merchants are to sell them, on account of the limitation of the time [of the fair], since the galleons ought to sail from the said port by the twenty-fifth of March.43. I will conclude this chapter with the authority of the celebrated Don Geronimo Ustariz,47who, although he disapproves the commerce [managed] by companies in España and the Americas, considers it expedient in these islands; and indeed, when his arguments against the establishment of the said companies are examined, it will be seen that they do not apply to this commerce—where, on the contrary, it will be seen that not even the least progress can besecured, unless the company of which I am speaking be formed.44. The same author, speaking of the commerce in spices, is inclined to think that it ought to be carried on directly by the Spaniards, by the same route which other nations adopt for it, arranging the purchases in these islands in order to supply the Americas and all España by the ports of Acapulco, Panama, and Portovelo. This exhibits the utility of what I have herein set forth, for it is confirmed by the three most earnest and distinguished Spaniards of this century, to wit, the Visconde del Puerto, Don Miguel de Zabala, and Don Geronimo Ustariz. But I am surprised that this last-named writer, who treats the subject of commerce so extensively and so acutely, with the greatest erudition and knowledge of whatever there is to be known of foreign nations and countries, should be ignorant that these islands produce in abundance cinnamon, pepper, and nutmeg, which, without the necessity of buying it from the Dutch, we can use for our benefit, in order to supply all our own dominions. This is a proof that the Spaniards of Philipinas do not apply themselves to becoming acquainted with this country, in order to make known its products; and that they would not be [thus] ignorant if the alcaldes-mayor would make reports—one to their successors, and another to the government—of the condition of each province, as I advised his Majesty in the past year of 1760.

Chapter Fourth: Of the necessity for forming a company in these islands1. By a royal decree dated at Sevilla on March 23, 1733 (in which the project was carried out which was approved by his Majesty on April 26, 1732), there was established by our lord Don Phelipe Fifth, of undying memory, a company with the name of “Royal Company of Philipinas,”35under fifty-eight articles and stipulations. These were full of the most unusual privileges and liberties that can be granted, and were even more advantageous to the Spaniards than those which Louis Fourteenth granted to the French for their Oriental Company; but I do not know exactly for what reason—some attribute it to the loss of Torres’s trading-fleet—the paternal affection did not prove effectual with which our beloved king and sovereign took an interest in making the Spanish monarchy prosperous by the extension and promotion of commerce (the only means for securing wealth), imitating the examples of almost all the nations of Europa, who, in order to become rich, have established their companies in the Orient.2–12. [In these sections Viana expands this last statement, enumerating the nations who have enriched themselves by the Oriental trade, and the companies formed in each for this purpose. First were the Genovese and Venetians, who traded with India by way of the Red Sea; they were afterward driven out of this trade by the Portuguese, in consequence of the discovery by the latter of the route via Cape of Good Hope. (Section 3.) “Portuguese trading-fleets of thirty ships came to the commerce of India every year, and for Brasil alone sailed fifteen to twentyships laden with merchandise from India—besides others which carried on trade in China, Japon, Persia, Arabía, Mosambique, Melinda, Sofala, and other regions. But now that commerce is so reduced that only one or, at most, two ships sail from Lisboa yearly, which would not be the case if they had established a company with adequate capital, which is the only way of making commerce lasting.” The Dutch at first bought spices from the Portuguese, and then resold them at a huge profit to the other European nations; but Phelipe II prohibited the spice trade to Portugal, and the Dutch therefore formed a company to operate in the Orient, and trade directly with its peoples. As finally constituted in 1602, this company had (section 6) a capital of 6,600,000 florins (“according to Savary”); and “in less than four years the members received the principal of their shares with the great profits which they obtained.” At the time of Viana’s writing, the Dutch company were maintaining “twelve thousand men, regular troops, in their twenty-five fortresses in India, and were able to equip 30,000 militia in their colonies, especially that of Batavia” (Savary). Viana cites another authority, Samuel Ricard, who places this militia force at 100,000, and states that the company employed in the Eastern trade more than 160 ships, each carrying thirty to sixty cannon, besides forty ships of the line (which number was increased in time of war). This enterprise ruined the commerce of the Portuguese (who had been the first to open the sea-route to India); “from that time until now it has steadily diminished, and is the poorest in all India; this has been the result of their not having formed a company with capital, and withrespectable forces to oppose the conquests which the Dutch made. For they had a better opportunity than the latter, and it would have cost them less to maintain a flourishing commerce, as was that which they already possessed, than it cost the Dutch to establish a new commerce by dint of money, conquests, fortifications, and enormous expenses.” The English company (section 8) sent out its first fleet (of four ships) in the year 1600; its capital was 369,891 pounds sterling. After various fluctuations of fortune, it was reëstablished in 1698, and attained great prosperity, so that its capital had increased to 1,703,422 pounds. In Viana’s time, “the ships from Madrast for London (more than fifty in number) carry annual cargoes of five to six million pounds, according to the estimate of Sabary; and, taking into consideration the increase which this commerce has had since he published his famous work, the ‘Universal Dictionary,’ it must by this time be worth some ten millions. This does not include the operations of the private English traders who traffic among the colonies of India; this may be inferred from the duties which they pay in Madrast, which, at the rate of five per cent, produce for the company 80,000 pagodas. This sum amounts to 120,000 or 130,000 pesos, estimating the pagoda at twelve and sometimes thirteen silver reals.” The English company were maintaining in constant operation 150 ships and fragatas, and more than fifty smaller vessels, employed in their commerce between India and London alone; to the great expenses of this navy must be added those of the company’s forts and garrisons in India, which indicate how enormous were their profits. An Englishman told Viana that the king ofEngland was owing to the company more than 36,000,000 pesos, the amount of loans which they had made to the crown in various emergencies. The Oriental commerce of the Dutch was further encroached upon (section 11) by the trading companies formed later in France, Sweden, and Denmark, and proposed in Prussia;36these were protected and fosteredby their respective governments. The commerce of the Dutch “would have been ruined if it were not for their being exclusive owners of the spice trade—of which only the Spaniards are able to deprive them, since we have in these islands cinnamon, pepper, cloves, and nutmeg.” As all those nations maintained forts, garrisons, and war-ships, the necessity of opposing these armaments with like forces has imposed on the Dutch enormous additional expenses. Viana says (section 12): “I know not what reason there can be why that which is so beneficial to all the powers should not, with even greater cause, be an advantage to España, which holds her conquests in peaceable possession, and has valuable products in her dominions; moreover, she has forts and ports which at little cost can be rendered impregnable, and better opportunities than any other nation for a very flourishing commerce. Yet she labors only to enrichher enemies, abandoning to them the commerce which our people are unwilling to carry on, and surrendering to them our treasures and wealth, in exchange for the greater part of the commodities and products which our own lands produce.”]13. If the Spaniards would form a company in the islands, similar to the foreign companies, and according to the pious anxiety with which the magnanimous heart of our beloved king and sovereign Don Phelipe Fifth, of undying memory, was concerned in this matter, all the nations who trade in India would have the same experience as the Portuguese and Dutch. Our commerce would annihilate or [at least] diminish that of all the India companies, who cannot find a market for their goods if they do not trade these in our dominions—and this they could not do if the Spanish company had large capital, and ships for navigation and trade in España and the Americas. If we could fortify the towns and garrison them, as has already been explained, the other nations would find themselves under the necessity of spending much more than they now do, in order to defend themselves against our power, if war should break out. This increase of expenses on the one hand, and diminution of their commerce on the other, are two excellent principles, which promise many advantages to the Spanish company—which, as it is not, like the others, compelled to incur these expenses, will be able to sell its commodities at lower prices, and the gains will be more certain.14. In order to facilitate the establishment of this most beneficial company, the royal protection of our sovereign is absolutely necessary, and with it must be banished the contemptuous notion that the Spaniardsform of the commercial career; for that notion usually leads them to keep their chests full of silver, for which they sell the products of their family estates. As a rule, the Spaniards spend with great economy what is necessary for their maintenance, especially those in the little hamlets throughout the kingdom; and, as they enjoy no commerce, they deprive themselves of the benefits arising from commercial activities, with detriment to their families and to the public welfare. On the other hand, they imagine that there is too great a risk in the remittance of their silver by sea, because they are so little (or not at all) acquainted with nautical science and mercantile affairs; and, as timidity prevails in their minds over ambition, they consider themselves fortunate to keep their riches under their own eyes, without thinking of investing them. But they would take hazards on their money, if they were touched by that eager desire for gain which is inseparable from all commerce, and which is stimulated by the lure of profits.15. There are, of course, many persons whose ability enables them to understand thoroughly the benefits of commerce; but they live remote from the marine ports, they have not trustworthy acquaintances to whom they can confide the management of their capital, and they sorrowfully deprive themselves of the benefits which they would derive from its employment, the result of which is that they lead idle lives, or sometimes yield to an extravagance which is excessive and impairs their fortunes. Even more melancholy than all that I have related is the sight of the Spanish nobility, without any occupation, and, as a rule, reared in extreme ignorance and idleness.This is the source of many excesses, the beginning of ruin to the most robust constitutions, a hindrance to the generation of children, and a cause of the lessening of population which is continually growing more worthy of consideration.16. Let there be formed, then, an Oriental company, and let the nobles of the kingdom contribute its funds; the profits [on these] will awaken in them a liking for commerce, and they will become acquainted with this most useful branch of knowledge. They will maintain their [business] relations, they will have some occupation, and will not use up their fortunes with vicious habits; their children will be brought up with a liking for commerce, and the fathers will have the satisfaction of employing some of their sons in appointments under the same company. This is the most certain means for securing the happiness of families and the prosperity of the entire monarchy; for, if commerce and the naval service (which follows the other closely) are promoted, there will be no vagabonds or idlers. Rather, idleness will come to an end, and with it many vices, on account of the enormous number of men whom a company with large capital needs to employ by land and sea—not only for its business positions, but for manufactures and navigation, in which persons from all spheres of life find an opening.17. What a number of people must be employed by the English and Dutch companies in the more than one hundred and fifty ships which each company maintains for its commerce, and in the various colonies in which they have established that commerce! And what advantages result to these two powers from keeping so many people busy, maintainingthem at the company’s expense, and freeing them from the idleness in which they would [otherwise] live! If those countries had not so great a commerce, vagabonds and idlers would abound in them; but this class of people is not seen there. On the contrary, there is great application to all the arts and sciences; for all have employment, and all are useful—some in manufactures, others in the military or the naval service, and others in commerce, etc.18. The attainment of these fortunate advantages depends on whether our beloved king and sovereign will assure to his vassals all his royal protection for the promotion of the said company, following the example of his glorious father, Don Phelipe Fifth, ever to be remembered; for the money of the royal treasury is the main foundation for this great and most useful enterprise. For it cannot be doubted that, animated by the same spirit, there will be many contributors to the capital of the said company—all the nobility of España, from the highest rank down; the guilds of Madrid, which now form a body of considerable importance; all the merchants of España, the two Americas, and these islands; some foreigners; and many religious communities, who have set aside the proceeds of their funds for pious contributions—convinced of the benefits of this commerce, and of the prosperity which will ensue to the Spanish nation; and regarding it as certain that (as will be mentioned hereafter) our Spanish merchants, if assured of their gains by way of these seas, and the method of supplying the Americas, in great part, with the materials for clothing which they need, without the burden of the royal imposts, will not long for the illegal purchase of foreign commodities.19. There are also other advantages, worthy of being known, which render the above-mentioned project more feasible. One of these is the abundance of timber for the construction of ships; at least ten ships can be built every year in these islands; and, by taking care of their many forests, even if a hundred ships were built now there would be enough timber left to construct every year the ten that I have mentioned. The Viscount del Puerto greatly praises (in book 9, chapter 10, article 2 of hisReflecciones militares37) the project of a friend of his (whose name he conceals) for forming a company in these islands; and among the products which it yields he mentions the timber calledtiga(it is not known here by this name), extolling its strength, and setting forth the advantages of carrying this wood to España as ballast for the ships.20. This wood (of which, according to the said author, the strong ships of Philipinas are built) is in my opinion theteca[i.e., teak], which comes from the Coast; or that which is known here (and I am inclined to think that this is meant) by the name ofmolave. This abounds in all the islands, and is so compact that it petrifies in the water, which I myself have seen; of it are made the ribs of the ship’s frame, the knees, and all the principal timbers that strengthen the ship. The keels are made of another wood, equally strong, which is calledguijo; it never rots in the water, nor does the boring worm, which is bred on the ships in the port of Cavite, penetrate it.There are other woods as useful as theguijo, and among them is thedongon, which is better. As a rule, the lower masts are made from themangachapui, which is another timber of especial value; for, although it is somewhat heavy, it never splinters, and is very elastic. The yards and topmasts are ofpalo maria; and for whatever is made of boards thelavan, thebanaba, and thetangili38are also used, from which kinds of wood very long and broad planks are obtained. There are pines here, and various other kinds of trees, which can be put to the same use; and plantations could be made of thetecatree (the wood of which lasts more than a hundred years in the water), for there is more than enough land for this purpose in the vicinity of Manila and Cavite. Likewise, sawmills could be built, in order to save the expense of [hiring] sawyers; also dry-docks, for careening the ships and preserving them under cover.21. In Ilocos are manufactured the blankets which serve as sails for our ships; and canvas can be made (as it has been) of excellent quality and in enormous quantities, for there is no end to the cottonwhich is and can be gathered, with the greatest facility, and of the finest quality. Moreover, on the many tracts of land which the sloth of the Indians leaves untilled hemp could be cultivated—which, even if it should not yield well on the lands of one province, would without doubt succeed on those of another; for there is nothing among all the products of the earth which is not afforded by these islands, by searching for the climate—whether hot, cool, or temperate—which is suited to the needs of the crop. Flax would be produced with the same ease as hemp, without any other cultivation than that which rice receives on irrigated soil [en tubigan]; and the seed of both these plants has been sown, and is yielding very well, in the province of Cagayan.22. There is much pitch, and cordage is so abundant that it can be supplied to all the ships of España, with what is made here; and, in order that it may be evident whether it is suited for this purpose, I will explain in detail how on this may depend the question of saving the expense of purchasing cordage in foreign kingdoms, by availing ourselves of that produced in our own dominions. [The fiber used for] cordage is both white and black; the former is known by the name ofabaca, which is obtained from the bark of a tree resembling the plantain, the trunk of which is heckled like [the stems of] hemp. The fiber is very harsh; tar scorches it, and for this reason no tar is used in these ships; it is stronger than hemp, as experience has shown. It is usually of service no longer than for one voyage; the threads shrink much, and on this account all the cordage here is heavier than that of Europa. On twisting it, it is apt to break, and in order to avoid this it is cured by placingit for some time in salt water, and drying it in the sunshine, then storing it until it is needed; for if this precaution be not taken, and it becomes spattered or moistened with fresh water, it will soon become rotten. With some additional expense the cordage could be made finer and smaller, without changing its quality; it would then be more easily handled, and the manœuvers of the ships would be more expeditious.23. The [fiber for] black cordage (known ascabo negro)39is obtained from a plant which they callgamù, very similar to the coco, and it is a veil which covers the entire tree, from the top down; it grows out between each pair of leaves [entre òja y òja] of thegamù, like long hair, or tufts of hair. It is exceedingly harsh, and for this reason it is used only for cables, of all sizes, and to some extent for tackle and rigging; and there is nothing with which to compare its strength. It lasts many years, but it is necessary to keep it either under water, or uncovered, where the dew and the rains bathe it; and in dry weather water is thrown over it, either salt or fresh, for its better preservation; for if it stands in the sun and wind, without these precautions, the threads break, and it loses its extraordinary strength. It is also preserved by keeping it in a shady place, where the wind strikes it but little. These two kinds of cordage are exceedingly abundant in these islands.24. There is another sort of cordage, [made] from the husks of the coco, which is superior to the other two; for with the said fiber the ships can becalked, and [even] after many years thebonote(thus they call it) comes out as fresh, strong, and sound as on the day when it was thrust between the planks. Of this species also there is a great abundance.25. The anchors can be cast here, by putting into operation the iron mines of which mention has been made; and I can say the same of the cannons, the balls, the grape-shot, the bombs, and the grenades. For, I repeat, there is iron in these islands for supplying all the world, and there are men enough to mine and manufacture it, if there be brought from España some skilled directors (who are not found here). If it be desired to work the copper, there are mines of this also, although I cannot speak with the same certainty of these as of the iron mines; for I have not come across any records to show whether the said metal has been worked at any time, and what the product was. The same thing is true in regard to the lead mines, but I have seen ores from Paracale, which were smelted at Bacolor, by order of Don Simon de Anda; and I do not doubt that, if we had skilled master-workmen in this and other industries, many useful discoveries would be made through the agency of the aforesaid company, whose funds would allow the expenses that a private person is unable to incur.26. To this concourse of advantages ought to be added the most important one that our Indians are exceedingly ingenious in the construction of ships. They do not understand arithmetic, or proportions and measures, or the computation of the weights of the various parts, or anything which requires knowledge; but if they have masters who will furnish to them models of the works, they imitate everythingwith the greatest accuracy, for they have exceedingly keen eyesight, and indescribable facility in making whatever they see. For this reason we have here excellent carpenters, calkers, and the other artisans necessary for the construction of ships, and in whatever number may be desired.27. There is not an Indian in these islands who has not a remarkable inclination for the sea; nor is there at present in all the world a people more agile in manœuvers on shipboard, or who learn so quickly nautical terms and whatever a good mariner ought to know. Their disposition is most humble in the presence of a Spaniard, and they show him great respect; but they can teach many of the Spanish mariners who sail in these seas. In the ships of España there are sure to be some Indians from these islands, and investigation can be made to ascertain what they are. The little that I understand about them makes me think that these are a people most suited for the sea; and that, if the ships are manned with crews one-third Spaniards and the other two-thirds Indians, the best mariners of these islands can be obtained, and many of them be employed in our warships. There is hardly an Indian who has sailed the seas who does not understand the mariner’s compass, and therefore on this [Acapulco] trade-route there are some very skilful and dexterous helmsmen. Their disposition is cowardly, but, when placed on a ship, from which they cannot escape, they fight with spirit and courage.28. Let it be considered, then, whether these circumstances are worthy of regard, and highly advantageous for the company of which I am speaking—which likewise can save much money in the differenceof wages; and any one will reason that not one of the foreign companies has had the opportunities which these islands possess for the establishment of a company, since all these things which are easy and of little expense for the Spaniards were almost insuperable difficulties for the Dutch, the English, and the French—who succeeded in overcoming them by dint of silver, of conquests, and of fortifications; and by bringing from Europa supplies which we do not have to bring, because they abound in these islands.29. In order not to be prolix in relating other advantages which the companies in general possess, as compared with the commerce of private persons, I refer to those which are set forth by the distinguished Don Miguel Zavala (in his celebrated memorial40to Phelipe V of blessed memory), whose authority alone would be sufficient in order that no means should be neglected for establishing the aforesaid company in these islands; and I pass to other advantages which the said author explains. But first I will point out what relates to the fortunes in the Indias, which do not pass to the grandsons; this is accounted for by the vicious way in which the creoles, as a rule, are reared—the indolence and vices in which they are brought up, and the luxury and prodigality to which they are accustomed from childhood. If these fortunes, or the greater part of them, were [invested] in the company, they would not be so easily wasted; and, even if the sons should save nothingfrom the profits, they would keep the principal which their fathers might bequeath to them in the aforesaid company. Or, in case there were some persons so reckless as to sell their shares, others would buy these, and the commerce and its gains would always remain for the benefit of the Spaniards.30. With the funds of a company, enterprises could be undertaken that would be both extensive and easy. The province of Pampanga alone is capable of producing more sugar than can be consumed in China (to which the Sangleys carry it when it is cheap), in the coasts of Coromandel, Malabar, and Vengala (where it is scarce, and is sold at a high price), and in all the ports of India; having a market, all that is required of this product will be supplied in abundance, especially if the said company encourages the Indians to cultivate their lands. It would be the same with the dyes; and with deer’s hides, sinews, andtapa(or dried meat) which all come from the same province, and are sold to the Chinese who come here to trade. By establishing a mart in the capital [of Pampanga], on the company’s account, it will gather in all the said products, in exchange for cloth, especially if credit be given to some persons until the time of the harvest; and the gains will be enormous, since profits will be made on the sale of the cloth, on the purchase of the products, and on the export of these to other colonies.31. The same method ought to be observed in the other provinces for promoting the cultivation of the lands and the abundance of so highly valuable products as they yield; by this means there would be obtained in Pangasinan all the gold which the infidels bring down from the mountains there, whichexceeds three hundred thousand pesos each year, and with that which is brought from other provinces reaches five hundred thousand pesos. This commodity is very useful in all the commerce of India, and can also be carried to Europa, as is done by the English and Dutch, to whom regularly comes the gold from Philipinas; its current price is at the rate of sixteen pesos for the tae of 22-carat metal (each tae has the weight of ten reals), and in this ratio is purchased that of 21, 20, 19, and 18 carats.32. In the provinces of Ilocos and Cagayan there might be excellent factories, to work up the great amount of fine cotton which they produce; and, by bringing skilled workmen from the Coast, the figured cottons which are brought thence could be made [here]. In all the Visayan Islands, in the province of Camarines, and in that of Albay, are made the choicest and finest webs, which they callnipis; and others, of commoner quality, which they callguinaras, and use for shirts. In Cagayan and Ilocos are woven very fine handkerchiefs, towels, coverlets, table-linen (which is of as good quality as that made in Flandes),terlingas, etc.; and if only these provinces are stimulated, and factories established with good master-workmen, the company can easily manufacture at least all the cloth which the Indians consume. As these number a million of souls, if we allow to each one an average consumption of no more than one peso, this would amount to a million of pesos; and the greater part of this amount, which now the Chinese, the Dutch, and the English carry away, would remain in the islands, and would increase the profits of the Spaniards and the losses of the said foreigners.33. The cacao is very abundant and cheap, and if it could find a market in other colonies and kingdoms the crop of it would be still greater, because the Indians would devote themselves to its cultivation.41Entire groves of the coffee-tree could be planted, since it yields fruit everywhere; it is milder than that of Mage [i.e., Mocha?] and its fruit is gathered in the year when it is [first] planted, on account of the richness of the soil. Rice and wheat, if the natives applied themselves [to cultivating these], as they would do if they had a market for them, would be sold at good prices throughout China (where these grains are scarce), in Cochinchina, in Siam, in Camboja, in Pegu, and sometimes in the Malabar and Coromandel coasts. Wax—of which these mountains are full, and which is sold by the infidel Indians who inhabit them—has a great consumption here, and much of it is shipped to Nueva España; and if it were bartered for cloth, as was said above, it could be procured in greater quantity. Tobacco, oil, and sulphur are very abundant. Horses are valued in the said coasts, and, although there are many of them in these islands, there would be more if the ranchmen had a better sale for them; for at times they are accustomed to kill the horses, in order to dry their flesh and sell it. Carabaos and deer, whose flesh is likewisedried, yield some pesos. In fine, the following are recognized articles of merchandise in different places in China, Cochinchina, Camboja, and Siam: sugar, rice, cotton; indigo, dyes, sibucao (a sort of Brasil-wood), deer’s sinews, pepper, black tortoise-shell (calledcarey), nacre shells (or mother-of-pearl),42birds’-nests, ebony;tapa(or dried meat),balateandcamaron(both which are shellfish), andbonga; cables ofcabo negro—all of which commodities these islands produce. [To these must be added] cochineal from Nueva España, fine cloths and camlets from España; lead (which also is produced by these islands, although it is not mined), and other articles, as stated above, of which better information will be given by practical merchants.34. For Vengala, the Coromandel and Malabar coasts, Persia, Zurrate, and other parts of India, are found useful indigo, sugar, sibucao, sulphur, siguey, birds’-nests, cotton, rice, gold, and horses; and, in one word, all that has been said in the preceding chapter (speaking of the private commerce which could be carried on via the Cape of Good Hope) ought to be understood, with greater reason, of the commerce which can be carried on by the company of which this chapter treats. For this reason I omit what I said there of the cinnamon and other products which the company could develop, with its funds and systematic arrangements, better than an individual could; for the latter may die, and the former continues perpetually to carry on the enterprises of manufactures, mining operations, the cultivation andpromotion of crops, and the exportation of all these to foreign kingdoms and colonies. For all will be successful in these islands with the Indians, who, if well paid, will do what they are ordered to.4335. I have already mentioned the indescribable readiness with which our Indians learn perfectly whatever they see, even without the necessity of a master to instruct them. There are some who write well, without knowing how to read, as they have had no teacher; for by their natural inclination they devote themselves to imitation of the letters, and easily succeed in doing so, without being able to read what they write. This is one proof of their readiness, above mentioned, but they have still more of it in embroidery. It is a marvelous thing to see, that there is hardly an Indian who cannot embroider, and that they learn this art without any teacher save their own attention and their extraordinary patience. The hands of the Indian women are the most delicate, for every kind of sewing and needlework; and the company, by availing itself of this skill of our Indian men and women, could employ an innumerable number of people in embroidery, needlework, and the making of hose—they make them of fine quality, in Zebu of cotton, and in La Laguna of silk—and obtain much profit through these industries, in finding a market for them.36. Near Paracali in the province of Camarines there is abundance of rock crystal, very transparent and choice. In the province of Cagayan are some stones that are very singular and rare; one of theseis emerald-green veined with gold or golden-brown, and when well polished it looks like a mirror, or like the finest jasper. Another is a stone as white as marble, similar to that which abounds in the mountains of San Matheo near Manila (from which has been made the paved floor of the Society’s church in this city); and who knows what Nature is keeping concealed, for our enlightenment, in the provinces and mountains of these islands? Assiduity, good taste, and the desire for knowledge would discover many things if there were Spaniards here who would devote themselves to the investigation and examination of the many rarities in the plan of Nature.37. If there were any chemist and herbalist here, this likewise would be an immense aid for making further discoveries and experimenting with many trees, roots, herbs, and medicinal stones. For instance, thenarra;44in cups made from the wood of this tree water becomes, in a very short time, of a most beautiful blue color, and people say that it is useful for curing obstructions; the wood calledmanunga, which is extolled for its remarkable virtues; the seeds of thecatbalonga, or St. Ignatius’s kernels, which are already known and esteemed inEuropa; the shell in which the cocoanut grows, in which water soon becomes exceedingly bitter; bezoar stones; and innumerable other articles from which homely remedies are made here, among the Spaniards as well as among the Indians. The latter make much use of the remedies produced in the islands, and know some, both herbs and woods, which cure the most hideous and bloody wound in twenty-four hours. The rhubarb45may be smelled [sehuele] in many woodlands, and no one is acquainted with it; the herb of Calamba is especially good for preventing, by [the application of] its juice, the bad results of a blow or fall. More than all, in the mountains of Mindoro there is a tree calledcalinga, the bark of which has a delicious odor, which smells like cinnamon, cloves, and pepper all combined; I made a small quantity of chocolate, using the said bark powdered instead of cinnamon, and it was very pleasing to the taste. In the ship “Santissima Trinidad,” which the English captured, I was sending to Madrid some lozenges and many pieces of the said bark, which is a delicious flavor for seasoning ragouts; and I have used it in my household. Señor Anda also sent to Madrid the aforesaid bark, and, I think, chocolate made with it powdered. So great is the abundance of these trees that there are mountains, many leguas in extent, which produce them.38. If the foreigners had these trees, they would have already introduced in the world the use of thiscommodity, with enormous profits; and we, if we possessed industry, and zeal for the interests of the nation, would have been able with this tree, to lessen the consumption of the cinnamon and cloves of the Dutch. Let these points be considered, and the advantages will be recognized which can assuredly be expected by the company which may be formed in these islands—regarding it as certain that nothing will make progress, except by this means; rather, this colony will in a little while go wretchedly to destruction, without the least hope for its reëstablishment.39. By way of conclusion to this chapter, I will note as the last (and an important) advantage of the aforesaid company the conspicuously fair treatment and friendly reception which the Spaniards have experienced, and may expect, throughout India. Our silver [money] is in good repute in all regions, and those peoples, especially the Chinese and the princes of India, show the greatest eagerness and make great efforts to obtain it, as being the most valuable for them; and, although the Dutch, English, French and other powers trade in this part of the world with our pesos, the Spanish ships are always better received in those ports, because they carry more silver and more products of these islands, which are held in very evident esteem.40. Since I have been in Manila, I have seen only the traders from Canton and Emui in China visit this port,46except the ship “Guadalupe,” whichwent to the [Malabar?] Coast; and through its captain and officers I have heard of the friendly reception which they met in all the ports of India. But in other days the commerce of this colony was more extensive. In China it was established in the year 1598, and has been maintained without interruption; the king of Camboja asked this government for aid, and it was sent to him in the year 1594, leaving commerce with that country established. In the same year the king of Siam sent an embassy to open commerce with these islands, and in 1599 the said commerce was actually begun, by vessels which went from these islands, and which came from Siam, with which country the Spaniards have maintained the most friendly relations. This was recently experienced in the case of the ship which was built there inthe year 53, by order of our governor the Marques de Ovando, who sent thither letters for the said king of Siam; and the latter, in virtue of these, furnished a sufficient sum of money, and gave all the other assistance which they asked from him. In the year 718, the same king of Siam granted a piece of land, in order that the Spaniards might establish a trading-post there.41. In the year 1596, commerce with these islands was established in Cochinchina, and the Spaniards declined to establish a trading-post [on the land] which this king afterward bestowed upon them. In Tunquin also the Spaniards undertook their commerce; and in Zurrate, Vengala, and other kingdoms of India, both Moorish and heathen, they have been equally well received. Although, on account of the reverses of this commonwealth and the lack of courage in its merchants, the Spaniards have given up this commerce for several years past, it cannot be doubted that the aforesaid company has the opportunity to establish itself advantageously, furnishing a market for the products of these islands, bringing hither those of the said kingdoms, and establishing (if that shall be expedient) some trading-posts—with which their purchases will be at more reasonable prices, and their gains in España and Nueva España more assured.42. Here at the same time another advantage presents itself. The commerce which now is carried on with Acapulco by private persons suffers many losses, occasioned by the unsuccessful fairs there. These losses originate in the necessity of selling the goods in order to send back [to Manila] the money that they produce; for even if the merchants lose in the sale something on the principal which they shipped,it is necessary to sell their goods in order to repay what they obtained from theobras piasfor their investments. If the goods are left in Nueva España, in order to take advantage of an opportunity for better sale, they cannot meet the cost of the expenses, and here find themselves tormented by their creditors. The company cannot be placed in such straits, but will always sell their wares to advantage and profit; for when in Acapulco they do not obtain good returns on the merchandise, they can transfer it to the storehouse which they will have to establish in Mexico. This expedient alone will be sufficient to induce the Mexicans to make strenuous endeavors to be preferred in the sale at the said port, because they will not deceive the said company as they now do private persons, acting aggressively against them, in order to fix arbitrarily the prices of their goods—constrained as our merchants are to sell them, on account of the limitation of the time [of the fair], since the galleons ought to sail from the said port by the twenty-fifth of March.43. I will conclude this chapter with the authority of the celebrated Don Geronimo Ustariz,47who, although he disapproves the commerce [managed] by companies in España and the Americas, considers it expedient in these islands; and indeed, when his arguments against the establishment of the said companies are examined, it will be seen that they do not apply to this commerce—where, on the contrary, it will be seen that not even the least progress can besecured, unless the company of which I am speaking be formed.44. The same author, speaking of the commerce in spices, is inclined to think that it ought to be carried on directly by the Spaniards, by the same route which other nations adopt for it, arranging the purchases in these islands in order to supply the Americas and all España by the ports of Acapulco, Panama, and Portovelo. This exhibits the utility of what I have herein set forth, for it is confirmed by the three most earnest and distinguished Spaniards of this century, to wit, the Visconde del Puerto, Don Miguel de Zabala, and Don Geronimo Ustariz. But I am surprised that this last-named writer, who treats the subject of commerce so extensively and so acutely, with the greatest erudition and knowledge of whatever there is to be known of foreign nations and countries, should be ignorant that these islands produce in abundance cinnamon, pepper, and nutmeg, which, without the necessity of buying it from the Dutch, we can use for our benefit, in order to supply all our own dominions. This is a proof that the Spaniards of Philipinas do not apply themselves to becoming acquainted with this country, in order to make known its products; and that they would not be [thus] ignorant if the alcaldes-mayor would make reports—one to their successors, and another to the government—of the condition of each province, as I advised his Majesty in the past year of 1760.

Chapter Fourth: Of the necessity for forming a company in these islands

1. By a royal decree dated at Sevilla on March 23, 1733 (in which the project was carried out which was approved by his Majesty on April 26, 1732), there was established by our lord Don Phelipe Fifth, of undying memory, a company with the name of “Royal Company of Philipinas,”35under fifty-eight articles and stipulations. These were full of the most unusual privileges and liberties that can be granted, and were even more advantageous to the Spaniards than those which Louis Fourteenth granted to the French for their Oriental Company; but I do not know exactly for what reason—some attribute it to the loss of Torres’s trading-fleet—the paternal affection did not prove effectual with which our beloved king and sovereign took an interest in making the Spanish monarchy prosperous by the extension and promotion of commerce (the only means for securing wealth), imitating the examples of almost all the nations of Europa, who, in order to become rich, have established their companies in the Orient.2–12. [In these sections Viana expands this last statement, enumerating the nations who have enriched themselves by the Oriental trade, and the companies formed in each for this purpose. First were the Genovese and Venetians, who traded with India by way of the Red Sea; they were afterward driven out of this trade by the Portuguese, in consequence of the discovery by the latter of the route via Cape of Good Hope. (Section 3.) “Portuguese trading-fleets of thirty ships came to the commerce of India every year, and for Brasil alone sailed fifteen to twentyships laden with merchandise from India—besides others which carried on trade in China, Japon, Persia, Arabía, Mosambique, Melinda, Sofala, and other regions. But now that commerce is so reduced that only one or, at most, two ships sail from Lisboa yearly, which would not be the case if they had established a company with adequate capital, which is the only way of making commerce lasting.” The Dutch at first bought spices from the Portuguese, and then resold them at a huge profit to the other European nations; but Phelipe II prohibited the spice trade to Portugal, and the Dutch therefore formed a company to operate in the Orient, and trade directly with its peoples. As finally constituted in 1602, this company had (section 6) a capital of 6,600,000 florins (“according to Savary”); and “in less than four years the members received the principal of their shares with the great profits which they obtained.” At the time of Viana’s writing, the Dutch company were maintaining “twelve thousand men, regular troops, in their twenty-five fortresses in India, and were able to equip 30,000 militia in their colonies, especially that of Batavia” (Savary). Viana cites another authority, Samuel Ricard, who places this militia force at 100,000, and states that the company employed in the Eastern trade more than 160 ships, each carrying thirty to sixty cannon, besides forty ships of the line (which number was increased in time of war). This enterprise ruined the commerce of the Portuguese (who had been the first to open the sea-route to India); “from that time until now it has steadily diminished, and is the poorest in all India; this has been the result of their not having formed a company with capital, and withrespectable forces to oppose the conquests which the Dutch made. For they had a better opportunity than the latter, and it would have cost them less to maintain a flourishing commerce, as was that which they already possessed, than it cost the Dutch to establish a new commerce by dint of money, conquests, fortifications, and enormous expenses.” The English company (section 8) sent out its first fleet (of four ships) in the year 1600; its capital was 369,891 pounds sterling. After various fluctuations of fortune, it was reëstablished in 1698, and attained great prosperity, so that its capital had increased to 1,703,422 pounds. In Viana’s time, “the ships from Madrast for London (more than fifty in number) carry annual cargoes of five to six million pounds, according to the estimate of Sabary; and, taking into consideration the increase which this commerce has had since he published his famous work, the ‘Universal Dictionary,’ it must by this time be worth some ten millions. This does not include the operations of the private English traders who traffic among the colonies of India; this may be inferred from the duties which they pay in Madrast, which, at the rate of five per cent, produce for the company 80,000 pagodas. This sum amounts to 120,000 or 130,000 pesos, estimating the pagoda at twelve and sometimes thirteen silver reals.” The English company were maintaining in constant operation 150 ships and fragatas, and more than fifty smaller vessels, employed in their commerce between India and London alone; to the great expenses of this navy must be added those of the company’s forts and garrisons in India, which indicate how enormous were their profits. An Englishman told Viana that the king ofEngland was owing to the company more than 36,000,000 pesos, the amount of loans which they had made to the crown in various emergencies. The Oriental commerce of the Dutch was further encroached upon (section 11) by the trading companies formed later in France, Sweden, and Denmark, and proposed in Prussia;36these were protected and fosteredby their respective governments. The commerce of the Dutch “would have been ruined if it were not for their being exclusive owners of the spice trade—of which only the Spaniards are able to deprive them, since we have in these islands cinnamon, pepper, cloves, and nutmeg.” As all those nations maintained forts, garrisons, and war-ships, the necessity of opposing these armaments with like forces has imposed on the Dutch enormous additional expenses. Viana says (section 12): “I know not what reason there can be why that which is so beneficial to all the powers should not, with even greater cause, be an advantage to España, which holds her conquests in peaceable possession, and has valuable products in her dominions; moreover, she has forts and ports which at little cost can be rendered impregnable, and better opportunities than any other nation for a very flourishing commerce. Yet she labors only to enrichher enemies, abandoning to them the commerce which our people are unwilling to carry on, and surrendering to them our treasures and wealth, in exchange for the greater part of the commodities and products which our own lands produce.”]13. If the Spaniards would form a company in the islands, similar to the foreign companies, and according to the pious anxiety with which the magnanimous heart of our beloved king and sovereign Don Phelipe Fifth, of undying memory, was concerned in this matter, all the nations who trade in India would have the same experience as the Portuguese and Dutch. Our commerce would annihilate or [at least] diminish that of all the India companies, who cannot find a market for their goods if they do not trade these in our dominions—and this they could not do if the Spanish company had large capital, and ships for navigation and trade in España and the Americas. If we could fortify the towns and garrison them, as has already been explained, the other nations would find themselves under the necessity of spending much more than they now do, in order to defend themselves against our power, if war should break out. This increase of expenses on the one hand, and diminution of their commerce on the other, are two excellent principles, which promise many advantages to the Spanish company—which, as it is not, like the others, compelled to incur these expenses, will be able to sell its commodities at lower prices, and the gains will be more certain.14. In order to facilitate the establishment of this most beneficial company, the royal protection of our sovereign is absolutely necessary, and with it must be banished the contemptuous notion that the Spaniardsform of the commercial career; for that notion usually leads them to keep their chests full of silver, for which they sell the products of their family estates. As a rule, the Spaniards spend with great economy what is necessary for their maintenance, especially those in the little hamlets throughout the kingdom; and, as they enjoy no commerce, they deprive themselves of the benefits arising from commercial activities, with detriment to their families and to the public welfare. On the other hand, they imagine that there is too great a risk in the remittance of their silver by sea, because they are so little (or not at all) acquainted with nautical science and mercantile affairs; and, as timidity prevails in their minds over ambition, they consider themselves fortunate to keep their riches under their own eyes, without thinking of investing them. But they would take hazards on their money, if they were touched by that eager desire for gain which is inseparable from all commerce, and which is stimulated by the lure of profits.15. There are, of course, many persons whose ability enables them to understand thoroughly the benefits of commerce; but they live remote from the marine ports, they have not trustworthy acquaintances to whom they can confide the management of their capital, and they sorrowfully deprive themselves of the benefits which they would derive from its employment, the result of which is that they lead idle lives, or sometimes yield to an extravagance which is excessive and impairs their fortunes. Even more melancholy than all that I have related is the sight of the Spanish nobility, without any occupation, and, as a rule, reared in extreme ignorance and idleness.This is the source of many excesses, the beginning of ruin to the most robust constitutions, a hindrance to the generation of children, and a cause of the lessening of population which is continually growing more worthy of consideration.16. Let there be formed, then, an Oriental company, and let the nobles of the kingdom contribute its funds; the profits [on these] will awaken in them a liking for commerce, and they will become acquainted with this most useful branch of knowledge. They will maintain their [business] relations, they will have some occupation, and will not use up their fortunes with vicious habits; their children will be brought up with a liking for commerce, and the fathers will have the satisfaction of employing some of their sons in appointments under the same company. This is the most certain means for securing the happiness of families and the prosperity of the entire monarchy; for, if commerce and the naval service (which follows the other closely) are promoted, there will be no vagabonds or idlers. Rather, idleness will come to an end, and with it many vices, on account of the enormous number of men whom a company with large capital needs to employ by land and sea—not only for its business positions, but for manufactures and navigation, in which persons from all spheres of life find an opening.17. What a number of people must be employed by the English and Dutch companies in the more than one hundred and fifty ships which each company maintains for its commerce, and in the various colonies in which they have established that commerce! And what advantages result to these two powers from keeping so many people busy, maintainingthem at the company’s expense, and freeing them from the idleness in which they would [otherwise] live! If those countries had not so great a commerce, vagabonds and idlers would abound in them; but this class of people is not seen there. On the contrary, there is great application to all the arts and sciences; for all have employment, and all are useful—some in manufactures, others in the military or the naval service, and others in commerce, etc.18. The attainment of these fortunate advantages depends on whether our beloved king and sovereign will assure to his vassals all his royal protection for the promotion of the said company, following the example of his glorious father, Don Phelipe Fifth, ever to be remembered; for the money of the royal treasury is the main foundation for this great and most useful enterprise. For it cannot be doubted that, animated by the same spirit, there will be many contributors to the capital of the said company—all the nobility of España, from the highest rank down; the guilds of Madrid, which now form a body of considerable importance; all the merchants of España, the two Americas, and these islands; some foreigners; and many religious communities, who have set aside the proceeds of their funds for pious contributions—convinced of the benefits of this commerce, and of the prosperity which will ensue to the Spanish nation; and regarding it as certain that (as will be mentioned hereafter) our Spanish merchants, if assured of their gains by way of these seas, and the method of supplying the Americas, in great part, with the materials for clothing which they need, without the burden of the royal imposts, will not long for the illegal purchase of foreign commodities.19. There are also other advantages, worthy of being known, which render the above-mentioned project more feasible. One of these is the abundance of timber for the construction of ships; at least ten ships can be built every year in these islands; and, by taking care of their many forests, even if a hundred ships were built now there would be enough timber left to construct every year the ten that I have mentioned. The Viscount del Puerto greatly praises (in book 9, chapter 10, article 2 of hisReflecciones militares37) the project of a friend of his (whose name he conceals) for forming a company in these islands; and among the products which it yields he mentions the timber calledtiga(it is not known here by this name), extolling its strength, and setting forth the advantages of carrying this wood to España as ballast for the ships.20. This wood (of which, according to the said author, the strong ships of Philipinas are built) is in my opinion theteca[i.e., teak], which comes from the Coast; or that which is known here (and I am inclined to think that this is meant) by the name ofmolave. This abounds in all the islands, and is so compact that it petrifies in the water, which I myself have seen; of it are made the ribs of the ship’s frame, the knees, and all the principal timbers that strengthen the ship. The keels are made of another wood, equally strong, which is calledguijo; it never rots in the water, nor does the boring worm, which is bred on the ships in the port of Cavite, penetrate it.There are other woods as useful as theguijo, and among them is thedongon, which is better. As a rule, the lower masts are made from themangachapui, which is another timber of especial value; for, although it is somewhat heavy, it never splinters, and is very elastic. The yards and topmasts are ofpalo maria; and for whatever is made of boards thelavan, thebanaba, and thetangili38are also used, from which kinds of wood very long and broad planks are obtained. There are pines here, and various other kinds of trees, which can be put to the same use; and plantations could be made of thetecatree (the wood of which lasts more than a hundred years in the water), for there is more than enough land for this purpose in the vicinity of Manila and Cavite. Likewise, sawmills could be built, in order to save the expense of [hiring] sawyers; also dry-docks, for careening the ships and preserving them under cover.21. In Ilocos are manufactured the blankets which serve as sails for our ships; and canvas can be made (as it has been) of excellent quality and in enormous quantities, for there is no end to the cottonwhich is and can be gathered, with the greatest facility, and of the finest quality. Moreover, on the many tracts of land which the sloth of the Indians leaves untilled hemp could be cultivated—which, even if it should not yield well on the lands of one province, would without doubt succeed on those of another; for there is nothing among all the products of the earth which is not afforded by these islands, by searching for the climate—whether hot, cool, or temperate—which is suited to the needs of the crop. Flax would be produced with the same ease as hemp, without any other cultivation than that which rice receives on irrigated soil [en tubigan]; and the seed of both these plants has been sown, and is yielding very well, in the province of Cagayan.22. There is much pitch, and cordage is so abundant that it can be supplied to all the ships of España, with what is made here; and, in order that it may be evident whether it is suited for this purpose, I will explain in detail how on this may depend the question of saving the expense of purchasing cordage in foreign kingdoms, by availing ourselves of that produced in our own dominions. [The fiber used for] cordage is both white and black; the former is known by the name ofabaca, which is obtained from the bark of a tree resembling the plantain, the trunk of which is heckled like [the stems of] hemp. The fiber is very harsh; tar scorches it, and for this reason no tar is used in these ships; it is stronger than hemp, as experience has shown. It is usually of service no longer than for one voyage; the threads shrink much, and on this account all the cordage here is heavier than that of Europa. On twisting it, it is apt to break, and in order to avoid this it is cured by placingit for some time in salt water, and drying it in the sunshine, then storing it until it is needed; for if this precaution be not taken, and it becomes spattered or moistened with fresh water, it will soon become rotten. With some additional expense the cordage could be made finer and smaller, without changing its quality; it would then be more easily handled, and the manœuvers of the ships would be more expeditious.23. The [fiber for] black cordage (known ascabo negro)39is obtained from a plant which they callgamù, very similar to the coco, and it is a veil which covers the entire tree, from the top down; it grows out between each pair of leaves [entre òja y òja] of thegamù, like long hair, or tufts of hair. It is exceedingly harsh, and for this reason it is used only for cables, of all sizes, and to some extent for tackle and rigging; and there is nothing with which to compare its strength. It lasts many years, but it is necessary to keep it either under water, or uncovered, where the dew and the rains bathe it; and in dry weather water is thrown over it, either salt or fresh, for its better preservation; for if it stands in the sun and wind, without these precautions, the threads break, and it loses its extraordinary strength. It is also preserved by keeping it in a shady place, where the wind strikes it but little. These two kinds of cordage are exceedingly abundant in these islands.24. There is another sort of cordage, [made] from the husks of the coco, which is superior to the other two; for with the said fiber the ships can becalked, and [even] after many years thebonote(thus they call it) comes out as fresh, strong, and sound as on the day when it was thrust between the planks. Of this species also there is a great abundance.25. The anchors can be cast here, by putting into operation the iron mines of which mention has been made; and I can say the same of the cannons, the balls, the grape-shot, the bombs, and the grenades. For, I repeat, there is iron in these islands for supplying all the world, and there are men enough to mine and manufacture it, if there be brought from España some skilled directors (who are not found here). If it be desired to work the copper, there are mines of this also, although I cannot speak with the same certainty of these as of the iron mines; for I have not come across any records to show whether the said metal has been worked at any time, and what the product was. The same thing is true in regard to the lead mines, but I have seen ores from Paracale, which were smelted at Bacolor, by order of Don Simon de Anda; and I do not doubt that, if we had skilled master-workmen in this and other industries, many useful discoveries would be made through the agency of the aforesaid company, whose funds would allow the expenses that a private person is unable to incur.26. To this concourse of advantages ought to be added the most important one that our Indians are exceedingly ingenious in the construction of ships. They do not understand arithmetic, or proportions and measures, or the computation of the weights of the various parts, or anything which requires knowledge; but if they have masters who will furnish to them models of the works, they imitate everythingwith the greatest accuracy, for they have exceedingly keen eyesight, and indescribable facility in making whatever they see. For this reason we have here excellent carpenters, calkers, and the other artisans necessary for the construction of ships, and in whatever number may be desired.27. There is not an Indian in these islands who has not a remarkable inclination for the sea; nor is there at present in all the world a people more agile in manœuvers on shipboard, or who learn so quickly nautical terms and whatever a good mariner ought to know. Their disposition is most humble in the presence of a Spaniard, and they show him great respect; but they can teach many of the Spanish mariners who sail in these seas. In the ships of España there are sure to be some Indians from these islands, and investigation can be made to ascertain what they are. The little that I understand about them makes me think that these are a people most suited for the sea; and that, if the ships are manned with crews one-third Spaniards and the other two-thirds Indians, the best mariners of these islands can be obtained, and many of them be employed in our warships. There is hardly an Indian who has sailed the seas who does not understand the mariner’s compass, and therefore on this [Acapulco] trade-route there are some very skilful and dexterous helmsmen. Their disposition is cowardly, but, when placed on a ship, from which they cannot escape, they fight with spirit and courage.28. Let it be considered, then, whether these circumstances are worthy of regard, and highly advantageous for the company of which I am speaking—which likewise can save much money in the differenceof wages; and any one will reason that not one of the foreign companies has had the opportunities which these islands possess for the establishment of a company, since all these things which are easy and of little expense for the Spaniards were almost insuperable difficulties for the Dutch, the English, and the French—who succeeded in overcoming them by dint of silver, of conquests, and of fortifications; and by bringing from Europa supplies which we do not have to bring, because they abound in these islands.29. In order not to be prolix in relating other advantages which the companies in general possess, as compared with the commerce of private persons, I refer to those which are set forth by the distinguished Don Miguel Zavala (in his celebrated memorial40to Phelipe V of blessed memory), whose authority alone would be sufficient in order that no means should be neglected for establishing the aforesaid company in these islands; and I pass to other advantages which the said author explains. But first I will point out what relates to the fortunes in the Indias, which do not pass to the grandsons; this is accounted for by the vicious way in which the creoles, as a rule, are reared—the indolence and vices in which they are brought up, and the luxury and prodigality to which they are accustomed from childhood. If these fortunes, or the greater part of them, were [invested] in the company, they would not be so easily wasted; and, even if the sons should save nothingfrom the profits, they would keep the principal which their fathers might bequeath to them in the aforesaid company. Or, in case there were some persons so reckless as to sell their shares, others would buy these, and the commerce and its gains would always remain for the benefit of the Spaniards.30. With the funds of a company, enterprises could be undertaken that would be both extensive and easy. The province of Pampanga alone is capable of producing more sugar than can be consumed in China (to which the Sangleys carry it when it is cheap), in the coasts of Coromandel, Malabar, and Vengala (where it is scarce, and is sold at a high price), and in all the ports of India; having a market, all that is required of this product will be supplied in abundance, especially if the said company encourages the Indians to cultivate their lands. It would be the same with the dyes; and with deer’s hides, sinews, andtapa(or dried meat) which all come from the same province, and are sold to the Chinese who come here to trade. By establishing a mart in the capital [of Pampanga], on the company’s account, it will gather in all the said products, in exchange for cloth, especially if credit be given to some persons until the time of the harvest; and the gains will be enormous, since profits will be made on the sale of the cloth, on the purchase of the products, and on the export of these to other colonies.31. The same method ought to be observed in the other provinces for promoting the cultivation of the lands and the abundance of so highly valuable products as they yield; by this means there would be obtained in Pangasinan all the gold which the infidels bring down from the mountains there, whichexceeds three hundred thousand pesos each year, and with that which is brought from other provinces reaches five hundred thousand pesos. This commodity is very useful in all the commerce of India, and can also be carried to Europa, as is done by the English and Dutch, to whom regularly comes the gold from Philipinas; its current price is at the rate of sixteen pesos for the tae of 22-carat metal (each tae has the weight of ten reals), and in this ratio is purchased that of 21, 20, 19, and 18 carats.32. In the provinces of Ilocos and Cagayan there might be excellent factories, to work up the great amount of fine cotton which they produce; and, by bringing skilled workmen from the Coast, the figured cottons which are brought thence could be made [here]. In all the Visayan Islands, in the province of Camarines, and in that of Albay, are made the choicest and finest webs, which they callnipis; and others, of commoner quality, which they callguinaras, and use for shirts. In Cagayan and Ilocos are woven very fine handkerchiefs, towels, coverlets, table-linen (which is of as good quality as that made in Flandes),terlingas, etc.; and if only these provinces are stimulated, and factories established with good master-workmen, the company can easily manufacture at least all the cloth which the Indians consume. As these number a million of souls, if we allow to each one an average consumption of no more than one peso, this would amount to a million of pesos; and the greater part of this amount, which now the Chinese, the Dutch, and the English carry away, would remain in the islands, and would increase the profits of the Spaniards and the losses of the said foreigners.33. The cacao is very abundant and cheap, and if it could find a market in other colonies and kingdoms the crop of it would be still greater, because the Indians would devote themselves to its cultivation.41Entire groves of the coffee-tree could be planted, since it yields fruit everywhere; it is milder than that of Mage [i.e., Mocha?] and its fruit is gathered in the year when it is [first] planted, on account of the richness of the soil. Rice and wheat, if the natives applied themselves [to cultivating these], as they would do if they had a market for them, would be sold at good prices throughout China (where these grains are scarce), in Cochinchina, in Siam, in Camboja, in Pegu, and sometimes in the Malabar and Coromandel coasts. Wax—of which these mountains are full, and which is sold by the infidel Indians who inhabit them—has a great consumption here, and much of it is shipped to Nueva España; and if it were bartered for cloth, as was said above, it could be procured in greater quantity. Tobacco, oil, and sulphur are very abundant. Horses are valued in the said coasts, and, although there are many of them in these islands, there would be more if the ranchmen had a better sale for them; for at times they are accustomed to kill the horses, in order to dry their flesh and sell it. Carabaos and deer, whose flesh is likewisedried, yield some pesos. In fine, the following are recognized articles of merchandise in different places in China, Cochinchina, Camboja, and Siam: sugar, rice, cotton; indigo, dyes, sibucao (a sort of Brasil-wood), deer’s sinews, pepper, black tortoise-shell (calledcarey), nacre shells (or mother-of-pearl),42birds’-nests, ebony;tapa(or dried meat),balateandcamaron(both which are shellfish), andbonga; cables ofcabo negro—all of which commodities these islands produce. [To these must be added] cochineal from Nueva España, fine cloths and camlets from España; lead (which also is produced by these islands, although it is not mined), and other articles, as stated above, of which better information will be given by practical merchants.34. For Vengala, the Coromandel and Malabar coasts, Persia, Zurrate, and other parts of India, are found useful indigo, sugar, sibucao, sulphur, siguey, birds’-nests, cotton, rice, gold, and horses; and, in one word, all that has been said in the preceding chapter (speaking of the private commerce which could be carried on via the Cape of Good Hope) ought to be understood, with greater reason, of the commerce which can be carried on by the company of which this chapter treats. For this reason I omit what I said there of the cinnamon and other products which the company could develop, with its funds and systematic arrangements, better than an individual could; for the latter may die, and the former continues perpetually to carry on the enterprises of manufactures, mining operations, the cultivation andpromotion of crops, and the exportation of all these to foreign kingdoms and colonies. For all will be successful in these islands with the Indians, who, if well paid, will do what they are ordered to.4335. I have already mentioned the indescribable readiness with which our Indians learn perfectly whatever they see, even without the necessity of a master to instruct them. There are some who write well, without knowing how to read, as they have had no teacher; for by their natural inclination they devote themselves to imitation of the letters, and easily succeed in doing so, without being able to read what they write. This is one proof of their readiness, above mentioned, but they have still more of it in embroidery. It is a marvelous thing to see, that there is hardly an Indian who cannot embroider, and that they learn this art without any teacher save their own attention and their extraordinary patience. The hands of the Indian women are the most delicate, for every kind of sewing and needlework; and the company, by availing itself of this skill of our Indian men and women, could employ an innumerable number of people in embroidery, needlework, and the making of hose—they make them of fine quality, in Zebu of cotton, and in La Laguna of silk—and obtain much profit through these industries, in finding a market for them.36. Near Paracali in the province of Camarines there is abundance of rock crystal, very transparent and choice. In the province of Cagayan are some stones that are very singular and rare; one of theseis emerald-green veined with gold or golden-brown, and when well polished it looks like a mirror, or like the finest jasper. Another is a stone as white as marble, similar to that which abounds in the mountains of San Matheo near Manila (from which has been made the paved floor of the Society’s church in this city); and who knows what Nature is keeping concealed, for our enlightenment, in the provinces and mountains of these islands? Assiduity, good taste, and the desire for knowledge would discover many things if there were Spaniards here who would devote themselves to the investigation and examination of the many rarities in the plan of Nature.37. If there were any chemist and herbalist here, this likewise would be an immense aid for making further discoveries and experimenting with many trees, roots, herbs, and medicinal stones. For instance, thenarra;44in cups made from the wood of this tree water becomes, in a very short time, of a most beautiful blue color, and people say that it is useful for curing obstructions; the wood calledmanunga, which is extolled for its remarkable virtues; the seeds of thecatbalonga, or St. Ignatius’s kernels, which are already known and esteemed inEuropa; the shell in which the cocoanut grows, in which water soon becomes exceedingly bitter; bezoar stones; and innumerable other articles from which homely remedies are made here, among the Spaniards as well as among the Indians. The latter make much use of the remedies produced in the islands, and know some, both herbs and woods, which cure the most hideous and bloody wound in twenty-four hours. The rhubarb45may be smelled [sehuele] in many woodlands, and no one is acquainted with it; the herb of Calamba is especially good for preventing, by [the application of] its juice, the bad results of a blow or fall. More than all, in the mountains of Mindoro there is a tree calledcalinga, the bark of which has a delicious odor, which smells like cinnamon, cloves, and pepper all combined; I made a small quantity of chocolate, using the said bark powdered instead of cinnamon, and it was very pleasing to the taste. In the ship “Santissima Trinidad,” which the English captured, I was sending to Madrid some lozenges and many pieces of the said bark, which is a delicious flavor for seasoning ragouts; and I have used it in my household. Señor Anda also sent to Madrid the aforesaid bark, and, I think, chocolate made with it powdered. So great is the abundance of these trees that there are mountains, many leguas in extent, which produce them.38. If the foreigners had these trees, they would have already introduced in the world the use of thiscommodity, with enormous profits; and we, if we possessed industry, and zeal for the interests of the nation, would have been able with this tree, to lessen the consumption of the cinnamon and cloves of the Dutch. Let these points be considered, and the advantages will be recognized which can assuredly be expected by the company which may be formed in these islands—regarding it as certain that nothing will make progress, except by this means; rather, this colony will in a little while go wretchedly to destruction, without the least hope for its reëstablishment.39. By way of conclusion to this chapter, I will note as the last (and an important) advantage of the aforesaid company the conspicuously fair treatment and friendly reception which the Spaniards have experienced, and may expect, throughout India. Our silver [money] is in good repute in all regions, and those peoples, especially the Chinese and the princes of India, show the greatest eagerness and make great efforts to obtain it, as being the most valuable for them; and, although the Dutch, English, French and other powers trade in this part of the world with our pesos, the Spanish ships are always better received in those ports, because they carry more silver and more products of these islands, which are held in very evident esteem.40. Since I have been in Manila, I have seen only the traders from Canton and Emui in China visit this port,46except the ship “Guadalupe,” whichwent to the [Malabar?] Coast; and through its captain and officers I have heard of the friendly reception which they met in all the ports of India. But in other days the commerce of this colony was more extensive. In China it was established in the year 1598, and has been maintained without interruption; the king of Camboja asked this government for aid, and it was sent to him in the year 1594, leaving commerce with that country established. In the same year the king of Siam sent an embassy to open commerce with these islands, and in 1599 the said commerce was actually begun, by vessels which went from these islands, and which came from Siam, with which country the Spaniards have maintained the most friendly relations. This was recently experienced in the case of the ship which was built there inthe year 53, by order of our governor the Marques de Ovando, who sent thither letters for the said king of Siam; and the latter, in virtue of these, furnished a sufficient sum of money, and gave all the other assistance which they asked from him. In the year 718, the same king of Siam granted a piece of land, in order that the Spaniards might establish a trading-post there.41. In the year 1596, commerce with these islands was established in Cochinchina, and the Spaniards declined to establish a trading-post [on the land] which this king afterward bestowed upon them. In Tunquin also the Spaniards undertook their commerce; and in Zurrate, Vengala, and other kingdoms of India, both Moorish and heathen, they have been equally well received. Although, on account of the reverses of this commonwealth and the lack of courage in its merchants, the Spaniards have given up this commerce for several years past, it cannot be doubted that the aforesaid company has the opportunity to establish itself advantageously, furnishing a market for the products of these islands, bringing hither those of the said kingdoms, and establishing (if that shall be expedient) some trading-posts—with which their purchases will be at more reasonable prices, and their gains in España and Nueva España more assured.42. Here at the same time another advantage presents itself. The commerce which now is carried on with Acapulco by private persons suffers many losses, occasioned by the unsuccessful fairs there. These losses originate in the necessity of selling the goods in order to send back [to Manila] the money that they produce; for even if the merchants lose in the sale something on the principal which they shipped,it is necessary to sell their goods in order to repay what they obtained from theobras piasfor their investments. If the goods are left in Nueva España, in order to take advantage of an opportunity for better sale, they cannot meet the cost of the expenses, and here find themselves tormented by their creditors. The company cannot be placed in such straits, but will always sell their wares to advantage and profit; for when in Acapulco they do not obtain good returns on the merchandise, they can transfer it to the storehouse which they will have to establish in Mexico. This expedient alone will be sufficient to induce the Mexicans to make strenuous endeavors to be preferred in the sale at the said port, because they will not deceive the said company as they now do private persons, acting aggressively against them, in order to fix arbitrarily the prices of their goods—constrained as our merchants are to sell them, on account of the limitation of the time [of the fair], since the galleons ought to sail from the said port by the twenty-fifth of March.43. I will conclude this chapter with the authority of the celebrated Don Geronimo Ustariz,47who, although he disapproves the commerce [managed] by companies in España and the Americas, considers it expedient in these islands; and indeed, when his arguments against the establishment of the said companies are examined, it will be seen that they do not apply to this commerce—where, on the contrary, it will be seen that not even the least progress can besecured, unless the company of which I am speaking be formed.44. The same author, speaking of the commerce in spices, is inclined to think that it ought to be carried on directly by the Spaniards, by the same route which other nations adopt for it, arranging the purchases in these islands in order to supply the Americas and all España by the ports of Acapulco, Panama, and Portovelo. This exhibits the utility of what I have herein set forth, for it is confirmed by the three most earnest and distinguished Spaniards of this century, to wit, the Visconde del Puerto, Don Miguel de Zabala, and Don Geronimo Ustariz. But I am surprised that this last-named writer, who treats the subject of commerce so extensively and so acutely, with the greatest erudition and knowledge of whatever there is to be known of foreign nations and countries, should be ignorant that these islands produce in abundance cinnamon, pepper, and nutmeg, which, without the necessity of buying it from the Dutch, we can use for our benefit, in order to supply all our own dominions. This is a proof that the Spaniards of Philipinas do not apply themselves to becoming acquainted with this country, in order to make known its products; and that they would not be [thus] ignorant if the alcaldes-mayor would make reports—one to their successors, and another to the government—of the condition of each province, as I advised his Majesty in the past year of 1760.

1. By a royal decree dated at Sevilla on March 23, 1733 (in which the project was carried out which was approved by his Majesty on April 26, 1732), there was established by our lord Don Phelipe Fifth, of undying memory, a company with the name of “Royal Company of Philipinas,”35under fifty-eight articles and stipulations. These were full of the most unusual privileges and liberties that can be granted, and were even more advantageous to the Spaniards than those which Louis Fourteenth granted to the French for their Oriental Company; but I do not know exactly for what reason—some attribute it to the loss of Torres’s trading-fleet—the paternal affection did not prove effectual with which our beloved king and sovereign took an interest in making the Spanish monarchy prosperous by the extension and promotion of commerce (the only means for securing wealth), imitating the examples of almost all the nations of Europa, who, in order to become rich, have established their companies in the Orient.

2–12. [In these sections Viana expands this last statement, enumerating the nations who have enriched themselves by the Oriental trade, and the companies formed in each for this purpose. First were the Genovese and Venetians, who traded with India by way of the Red Sea; they were afterward driven out of this trade by the Portuguese, in consequence of the discovery by the latter of the route via Cape of Good Hope. (Section 3.) “Portuguese trading-fleets of thirty ships came to the commerce of India every year, and for Brasil alone sailed fifteen to twentyships laden with merchandise from India—besides others which carried on trade in China, Japon, Persia, Arabía, Mosambique, Melinda, Sofala, and other regions. But now that commerce is so reduced that only one or, at most, two ships sail from Lisboa yearly, which would not be the case if they had established a company with adequate capital, which is the only way of making commerce lasting.” The Dutch at first bought spices from the Portuguese, and then resold them at a huge profit to the other European nations; but Phelipe II prohibited the spice trade to Portugal, and the Dutch therefore formed a company to operate in the Orient, and trade directly with its peoples. As finally constituted in 1602, this company had (section 6) a capital of 6,600,000 florins (“according to Savary”); and “in less than four years the members received the principal of their shares with the great profits which they obtained.” At the time of Viana’s writing, the Dutch company were maintaining “twelve thousand men, regular troops, in their twenty-five fortresses in India, and were able to equip 30,000 militia in their colonies, especially that of Batavia” (Savary). Viana cites another authority, Samuel Ricard, who places this militia force at 100,000, and states that the company employed in the Eastern trade more than 160 ships, each carrying thirty to sixty cannon, besides forty ships of the line (which number was increased in time of war). This enterprise ruined the commerce of the Portuguese (who had been the first to open the sea-route to India); “from that time until now it has steadily diminished, and is the poorest in all India; this has been the result of their not having formed a company with capital, and withrespectable forces to oppose the conquests which the Dutch made. For they had a better opportunity than the latter, and it would have cost them less to maintain a flourishing commerce, as was that which they already possessed, than it cost the Dutch to establish a new commerce by dint of money, conquests, fortifications, and enormous expenses.” The English company (section 8) sent out its first fleet (of four ships) in the year 1600; its capital was 369,891 pounds sterling. After various fluctuations of fortune, it was reëstablished in 1698, and attained great prosperity, so that its capital had increased to 1,703,422 pounds. In Viana’s time, “the ships from Madrast for London (more than fifty in number) carry annual cargoes of five to six million pounds, according to the estimate of Sabary; and, taking into consideration the increase which this commerce has had since he published his famous work, the ‘Universal Dictionary,’ it must by this time be worth some ten millions. This does not include the operations of the private English traders who traffic among the colonies of India; this may be inferred from the duties which they pay in Madrast, which, at the rate of five per cent, produce for the company 80,000 pagodas. This sum amounts to 120,000 or 130,000 pesos, estimating the pagoda at twelve and sometimes thirteen silver reals.” The English company were maintaining in constant operation 150 ships and fragatas, and more than fifty smaller vessels, employed in their commerce between India and London alone; to the great expenses of this navy must be added those of the company’s forts and garrisons in India, which indicate how enormous were their profits. An Englishman told Viana that the king ofEngland was owing to the company more than 36,000,000 pesos, the amount of loans which they had made to the crown in various emergencies. The Oriental commerce of the Dutch was further encroached upon (section 11) by the trading companies formed later in France, Sweden, and Denmark, and proposed in Prussia;36these were protected and fosteredby their respective governments. The commerce of the Dutch “would have been ruined if it were not for their being exclusive owners of the spice trade—of which only the Spaniards are able to deprive them, since we have in these islands cinnamon, pepper, cloves, and nutmeg.” As all those nations maintained forts, garrisons, and war-ships, the necessity of opposing these armaments with like forces has imposed on the Dutch enormous additional expenses. Viana says (section 12): “I know not what reason there can be why that which is so beneficial to all the powers should not, with even greater cause, be an advantage to España, which holds her conquests in peaceable possession, and has valuable products in her dominions; moreover, she has forts and ports which at little cost can be rendered impregnable, and better opportunities than any other nation for a very flourishing commerce. Yet she labors only to enrichher enemies, abandoning to them the commerce which our people are unwilling to carry on, and surrendering to them our treasures and wealth, in exchange for the greater part of the commodities and products which our own lands produce.”]

13. If the Spaniards would form a company in the islands, similar to the foreign companies, and according to the pious anxiety with which the magnanimous heart of our beloved king and sovereign Don Phelipe Fifth, of undying memory, was concerned in this matter, all the nations who trade in India would have the same experience as the Portuguese and Dutch. Our commerce would annihilate or [at least] diminish that of all the India companies, who cannot find a market for their goods if they do not trade these in our dominions—and this they could not do if the Spanish company had large capital, and ships for navigation and trade in España and the Americas. If we could fortify the towns and garrison them, as has already been explained, the other nations would find themselves under the necessity of spending much more than they now do, in order to defend themselves against our power, if war should break out. This increase of expenses on the one hand, and diminution of their commerce on the other, are two excellent principles, which promise many advantages to the Spanish company—which, as it is not, like the others, compelled to incur these expenses, will be able to sell its commodities at lower prices, and the gains will be more certain.

14. In order to facilitate the establishment of this most beneficial company, the royal protection of our sovereign is absolutely necessary, and with it must be banished the contemptuous notion that the Spaniardsform of the commercial career; for that notion usually leads them to keep their chests full of silver, for which they sell the products of their family estates. As a rule, the Spaniards spend with great economy what is necessary for their maintenance, especially those in the little hamlets throughout the kingdom; and, as they enjoy no commerce, they deprive themselves of the benefits arising from commercial activities, with detriment to their families and to the public welfare. On the other hand, they imagine that there is too great a risk in the remittance of their silver by sea, because they are so little (or not at all) acquainted with nautical science and mercantile affairs; and, as timidity prevails in their minds over ambition, they consider themselves fortunate to keep their riches under their own eyes, without thinking of investing them. But they would take hazards on their money, if they were touched by that eager desire for gain which is inseparable from all commerce, and which is stimulated by the lure of profits.

15. There are, of course, many persons whose ability enables them to understand thoroughly the benefits of commerce; but they live remote from the marine ports, they have not trustworthy acquaintances to whom they can confide the management of their capital, and they sorrowfully deprive themselves of the benefits which they would derive from its employment, the result of which is that they lead idle lives, or sometimes yield to an extravagance which is excessive and impairs their fortunes. Even more melancholy than all that I have related is the sight of the Spanish nobility, without any occupation, and, as a rule, reared in extreme ignorance and idleness.This is the source of many excesses, the beginning of ruin to the most robust constitutions, a hindrance to the generation of children, and a cause of the lessening of population which is continually growing more worthy of consideration.

16. Let there be formed, then, an Oriental company, and let the nobles of the kingdom contribute its funds; the profits [on these] will awaken in them a liking for commerce, and they will become acquainted with this most useful branch of knowledge. They will maintain their [business] relations, they will have some occupation, and will not use up their fortunes with vicious habits; their children will be brought up with a liking for commerce, and the fathers will have the satisfaction of employing some of their sons in appointments under the same company. This is the most certain means for securing the happiness of families and the prosperity of the entire monarchy; for, if commerce and the naval service (which follows the other closely) are promoted, there will be no vagabonds or idlers. Rather, idleness will come to an end, and with it many vices, on account of the enormous number of men whom a company with large capital needs to employ by land and sea—not only for its business positions, but for manufactures and navigation, in which persons from all spheres of life find an opening.

17. What a number of people must be employed by the English and Dutch companies in the more than one hundred and fifty ships which each company maintains for its commerce, and in the various colonies in which they have established that commerce! And what advantages result to these two powers from keeping so many people busy, maintainingthem at the company’s expense, and freeing them from the idleness in which they would [otherwise] live! If those countries had not so great a commerce, vagabonds and idlers would abound in them; but this class of people is not seen there. On the contrary, there is great application to all the arts and sciences; for all have employment, and all are useful—some in manufactures, others in the military or the naval service, and others in commerce, etc.

18. The attainment of these fortunate advantages depends on whether our beloved king and sovereign will assure to his vassals all his royal protection for the promotion of the said company, following the example of his glorious father, Don Phelipe Fifth, ever to be remembered; for the money of the royal treasury is the main foundation for this great and most useful enterprise. For it cannot be doubted that, animated by the same spirit, there will be many contributors to the capital of the said company—all the nobility of España, from the highest rank down; the guilds of Madrid, which now form a body of considerable importance; all the merchants of España, the two Americas, and these islands; some foreigners; and many religious communities, who have set aside the proceeds of their funds for pious contributions—convinced of the benefits of this commerce, and of the prosperity which will ensue to the Spanish nation; and regarding it as certain that (as will be mentioned hereafter) our Spanish merchants, if assured of their gains by way of these seas, and the method of supplying the Americas, in great part, with the materials for clothing which they need, without the burden of the royal imposts, will not long for the illegal purchase of foreign commodities.

19. There are also other advantages, worthy of being known, which render the above-mentioned project more feasible. One of these is the abundance of timber for the construction of ships; at least ten ships can be built every year in these islands; and, by taking care of their many forests, even if a hundred ships were built now there would be enough timber left to construct every year the ten that I have mentioned. The Viscount del Puerto greatly praises (in book 9, chapter 10, article 2 of hisReflecciones militares37) the project of a friend of his (whose name he conceals) for forming a company in these islands; and among the products which it yields he mentions the timber calledtiga(it is not known here by this name), extolling its strength, and setting forth the advantages of carrying this wood to España as ballast for the ships.

20. This wood (of which, according to the said author, the strong ships of Philipinas are built) is in my opinion theteca[i.e., teak], which comes from the Coast; or that which is known here (and I am inclined to think that this is meant) by the name ofmolave. This abounds in all the islands, and is so compact that it petrifies in the water, which I myself have seen; of it are made the ribs of the ship’s frame, the knees, and all the principal timbers that strengthen the ship. The keels are made of another wood, equally strong, which is calledguijo; it never rots in the water, nor does the boring worm, which is bred on the ships in the port of Cavite, penetrate it.There are other woods as useful as theguijo, and among them is thedongon, which is better. As a rule, the lower masts are made from themangachapui, which is another timber of especial value; for, although it is somewhat heavy, it never splinters, and is very elastic. The yards and topmasts are ofpalo maria; and for whatever is made of boards thelavan, thebanaba, and thetangili38are also used, from which kinds of wood very long and broad planks are obtained. There are pines here, and various other kinds of trees, which can be put to the same use; and plantations could be made of thetecatree (the wood of which lasts more than a hundred years in the water), for there is more than enough land for this purpose in the vicinity of Manila and Cavite. Likewise, sawmills could be built, in order to save the expense of [hiring] sawyers; also dry-docks, for careening the ships and preserving them under cover.

21. In Ilocos are manufactured the blankets which serve as sails for our ships; and canvas can be made (as it has been) of excellent quality and in enormous quantities, for there is no end to the cottonwhich is and can be gathered, with the greatest facility, and of the finest quality. Moreover, on the many tracts of land which the sloth of the Indians leaves untilled hemp could be cultivated—which, even if it should not yield well on the lands of one province, would without doubt succeed on those of another; for there is nothing among all the products of the earth which is not afforded by these islands, by searching for the climate—whether hot, cool, or temperate—which is suited to the needs of the crop. Flax would be produced with the same ease as hemp, without any other cultivation than that which rice receives on irrigated soil [en tubigan]; and the seed of both these plants has been sown, and is yielding very well, in the province of Cagayan.

22. There is much pitch, and cordage is so abundant that it can be supplied to all the ships of España, with what is made here; and, in order that it may be evident whether it is suited for this purpose, I will explain in detail how on this may depend the question of saving the expense of purchasing cordage in foreign kingdoms, by availing ourselves of that produced in our own dominions. [The fiber used for] cordage is both white and black; the former is known by the name ofabaca, which is obtained from the bark of a tree resembling the plantain, the trunk of which is heckled like [the stems of] hemp. The fiber is very harsh; tar scorches it, and for this reason no tar is used in these ships; it is stronger than hemp, as experience has shown. It is usually of service no longer than for one voyage; the threads shrink much, and on this account all the cordage here is heavier than that of Europa. On twisting it, it is apt to break, and in order to avoid this it is cured by placingit for some time in salt water, and drying it in the sunshine, then storing it until it is needed; for if this precaution be not taken, and it becomes spattered or moistened with fresh water, it will soon become rotten. With some additional expense the cordage could be made finer and smaller, without changing its quality; it would then be more easily handled, and the manœuvers of the ships would be more expeditious.

23. The [fiber for] black cordage (known ascabo negro)39is obtained from a plant which they callgamù, very similar to the coco, and it is a veil which covers the entire tree, from the top down; it grows out between each pair of leaves [entre òja y òja] of thegamù, like long hair, or tufts of hair. It is exceedingly harsh, and for this reason it is used only for cables, of all sizes, and to some extent for tackle and rigging; and there is nothing with which to compare its strength. It lasts many years, but it is necessary to keep it either under water, or uncovered, where the dew and the rains bathe it; and in dry weather water is thrown over it, either salt or fresh, for its better preservation; for if it stands in the sun and wind, without these precautions, the threads break, and it loses its extraordinary strength. It is also preserved by keeping it in a shady place, where the wind strikes it but little. These two kinds of cordage are exceedingly abundant in these islands.

24. There is another sort of cordage, [made] from the husks of the coco, which is superior to the other two; for with the said fiber the ships can becalked, and [even] after many years thebonote(thus they call it) comes out as fresh, strong, and sound as on the day when it was thrust between the planks. Of this species also there is a great abundance.

25. The anchors can be cast here, by putting into operation the iron mines of which mention has been made; and I can say the same of the cannons, the balls, the grape-shot, the bombs, and the grenades. For, I repeat, there is iron in these islands for supplying all the world, and there are men enough to mine and manufacture it, if there be brought from España some skilled directors (who are not found here). If it be desired to work the copper, there are mines of this also, although I cannot speak with the same certainty of these as of the iron mines; for I have not come across any records to show whether the said metal has been worked at any time, and what the product was. The same thing is true in regard to the lead mines, but I have seen ores from Paracale, which were smelted at Bacolor, by order of Don Simon de Anda; and I do not doubt that, if we had skilled master-workmen in this and other industries, many useful discoveries would be made through the agency of the aforesaid company, whose funds would allow the expenses that a private person is unable to incur.

26. To this concourse of advantages ought to be added the most important one that our Indians are exceedingly ingenious in the construction of ships. They do not understand arithmetic, or proportions and measures, or the computation of the weights of the various parts, or anything which requires knowledge; but if they have masters who will furnish to them models of the works, they imitate everythingwith the greatest accuracy, for they have exceedingly keen eyesight, and indescribable facility in making whatever they see. For this reason we have here excellent carpenters, calkers, and the other artisans necessary for the construction of ships, and in whatever number may be desired.

27. There is not an Indian in these islands who has not a remarkable inclination for the sea; nor is there at present in all the world a people more agile in manœuvers on shipboard, or who learn so quickly nautical terms and whatever a good mariner ought to know. Their disposition is most humble in the presence of a Spaniard, and they show him great respect; but they can teach many of the Spanish mariners who sail in these seas. In the ships of España there are sure to be some Indians from these islands, and investigation can be made to ascertain what they are. The little that I understand about them makes me think that these are a people most suited for the sea; and that, if the ships are manned with crews one-third Spaniards and the other two-thirds Indians, the best mariners of these islands can be obtained, and many of them be employed in our warships. There is hardly an Indian who has sailed the seas who does not understand the mariner’s compass, and therefore on this [Acapulco] trade-route there are some very skilful and dexterous helmsmen. Their disposition is cowardly, but, when placed on a ship, from which they cannot escape, they fight with spirit and courage.

28. Let it be considered, then, whether these circumstances are worthy of regard, and highly advantageous for the company of which I am speaking—which likewise can save much money in the differenceof wages; and any one will reason that not one of the foreign companies has had the opportunities which these islands possess for the establishment of a company, since all these things which are easy and of little expense for the Spaniards were almost insuperable difficulties for the Dutch, the English, and the French—who succeeded in overcoming them by dint of silver, of conquests, and of fortifications; and by bringing from Europa supplies which we do not have to bring, because they abound in these islands.

29. In order not to be prolix in relating other advantages which the companies in general possess, as compared with the commerce of private persons, I refer to those which are set forth by the distinguished Don Miguel Zavala (in his celebrated memorial40to Phelipe V of blessed memory), whose authority alone would be sufficient in order that no means should be neglected for establishing the aforesaid company in these islands; and I pass to other advantages which the said author explains. But first I will point out what relates to the fortunes in the Indias, which do not pass to the grandsons; this is accounted for by the vicious way in which the creoles, as a rule, are reared—the indolence and vices in which they are brought up, and the luxury and prodigality to which they are accustomed from childhood. If these fortunes, or the greater part of them, were [invested] in the company, they would not be so easily wasted; and, even if the sons should save nothingfrom the profits, they would keep the principal which their fathers might bequeath to them in the aforesaid company. Or, in case there were some persons so reckless as to sell their shares, others would buy these, and the commerce and its gains would always remain for the benefit of the Spaniards.

30. With the funds of a company, enterprises could be undertaken that would be both extensive and easy. The province of Pampanga alone is capable of producing more sugar than can be consumed in China (to which the Sangleys carry it when it is cheap), in the coasts of Coromandel, Malabar, and Vengala (where it is scarce, and is sold at a high price), and in all the ports of India; having a market, all that is required of this product will be supplied in abundance, especially if the said company encourages the Indians to cultivate their lands. It would be the same with the dyes; and with deer’s hides, sinews, andtapa(or dried meat) which all come from the same province, and are sold to the Chinese who come here to trade. By establishing a mart in the capital [of Pampanga], on the company’s account, it will gather in all the said products, in exchange for cloth, especially if credit be given to some persons until the time of the harvest; and the gains will be enormous, since profits will be made on the sale of the cloth, on the purchase of the products, and on the export of these to other colonies.

31. The same method ought to be observed in the other provinces for promoting the cultivation of the lands and the abundance of so highly valuable products as they yield; by this means there would be obtained in Pangasinan all the gold which the infidels bring down from the mountains there, whichexceeds three hundred thousand pesos each year, and with that which is brought from other provinces reaches five hundred thousand pesos. This commodity is very useful in all the commerce of India, and can also be carried to Europa, as is done by the English and Dutch, to whom regularly comes the gold from Philipinas; its current price is at the rate of sixteen pesos for the tae of 22-carat metal (each tae has the weight of ten reals), and in this ratio is purchased that of 21, 20, 19, and 18 carats.

32. In the provinces of Ilocos and Cagayan there might be excellent factories, to work up the great amount of fine cotton which they produce; and, by bringing skilled workmen from the Coast, the figured cottons which are brought thence could be made [here]. In all the Visayan Islands, in the province of Camarines, and in that of Albay, are made the choicest and finest webs, which they callnipis; and others, of commoner quality, which they callguinaras, and use for shirts. In Cagayan and Ilocos are woven very fine handkerchiefs, towels, coverlets, table-linen (which is of as good quality as that made in Flandes),terlingas, etc.; and if only these provinces are stimulated, and factories established with good master-workmen, the company can easily manufacture at least all the cloth which the Indians consume. As these number a million of souls, if we allow to each one an average consumption of no more than one peso, this would amount to a million of pesos; and the greater part of this amount, which now the Chinese, the Dutch, and the English carry away, would remain in the islands, and would increase the profits of the Spaniards and the losses of the said foreigners.

33. The cacao is very abundant and cheap, and if it could find a market in other colonies and kingdoms the crop of it would be still greater, because the Indians would devote themselves to its cultivation.41Entire groves of the coffee-tree could be planted, since it yields fruit everywhere; it is milder than that of Mage [i.e., Mocha?] and its fruit is gathered in the year when it is [first] planted, on account of the richness of the soil. Rice and wheat, if the natives applied themselves [to cultivating these], as they would do if they had a market for them, would be sold at good prices throughout China (where these grains are scarce), in Cochinchina, in Siam, in Camboja, in Pegu, and sometimes in the Malabar and Coromandel coasts. Wax—of which these mountains are full, and which is sold by the infidel Indians who inhabit them—has a great consumption here, and much of it is shipped to Nueva España; and if it were bartered for cloth, as was said above, it could be procured in greater quantity. Tobacco, oil, and sulphur are very abundant. Horses are valued in the said coasts, and, although there are many of them in these islands, there would be more if the ranchmen had a better sale for them; for at times they are accustomed to kill the horses, in order to dry their flesh and sell it. Carabaos and deer, whose flesh is likewisedried, yield some pesos. In fine, the following are recognized articles of merchandise in different places in China, Cochinchina, Camboja, and Siam: sugar, rice, cotton; indigo, dyes, sibucao (a sort of Brasil-wood), deer’s sinews, pepper, black tortoise-shell (calledcarey), nacre shells (or mother-of-pearl),42birds’-nests, ebony;tapa(or dried meat),balateandcamaron(both which are shellfish), andbonga; cables ofcabo negro—all of which commodities these islands produce. [To these must be added] cochineal from Nueva España, fine cloths and camlets from España; lead (which also is produced by these islands, although it is not mined), and other articles, as stated above, of which better information will be given by practical merchants.

34. For Vengala, the Coromandel and Malabar coasts, Persia, Zurrate, and other parts of India, are found useful indigo, sugar, sibucao, sulphur, siguey, birds’-nests, cotton, rice, gold, and horses; and, in one word, all that has been said in the preceding chapter (speaking of the private commerce which could be carried on via the Cape of Good Hope) ought to be understood, with greater reason, of the commerce which can be carried on by the company of which this chapter treats. For this reason I omit what I said there of the cinnamon and other products which the company could develop, with its funds and systematic arrangements, better than an individual could; for the latter may die, and the former continues perpetually to carry on the enterprises of manufactures, mining operations, the cultivation andpromotion of crops, and the exportation of all these to foreign kingdoms and colonies. For all will be successful in these islands with the Indians, who, if well paid, will do what they are ordered to.43

35. I have already mentioned the indescribable readiness with which our Indians learn perfectly whatever they see, even without the necessity of a master to instruct them. There are some who write well, without knowing how to read, as they have had no teacher; for by their natural inclination they devote themselves to imitation of the letters, and easily succeed in doing so, without being able to read what they write. This is one proof of their readiness, above mentioned, but they have still more of it in embroidery. It is a marvelous thing to see, that there is hardly an Indian who cannot embroider, and that they learn this art without any teacher save their own attention and their extraordinary patience. The hands of the Indian women are the most delicate, for every kind of sewing and needlework; and the company, by availing itself of this skill of our Indian men and women, could employ an innumerable number of people in embroidery, needlework, and the making of hose—they make them of fine quality, in Zebu of cotton, and in La Laguna of silk—and obtain much profit through these industries, in finding a market for them.

36. Near Paracali in the province of Camarines there is abundance of rock crystal, very transparent and choice. In the province of Cagayan are some stones that are very singular and rare; one of theseis emerald-green veined with gold or golden-brown, and when well polished it looks like a mirror, or like the finest jasper. Another is a stone as white as marble, similar to that which abounds in the mountains of San Matheo near Manila (from which has been made the paved floor of the Society’s church in this city); and who knows what Nature is keeping concealed, for our enlightenment, in the provinces and mountains of these islands? Assiduity, good taste, and the desire for knowledge would discover many things if there were Spaniards here who would devote themselves to the investigation and examination of the many rarities in the plan of Nature.

37. If there were any chemist and herbalist here, this likewise would be an immense aid for making further discoveries and experimenting with many trees, roots, herbs, and medicinal stones. For instance, thenarra;44in cups made from the wood of this tree water becomes, in a very short time, of a most beautiful blue color, and people say that it is useful for curing obstructions; the wood calledmanunga, which is extolled for its remarkable virtues; the seeds of thecatbalonga, or St. Ignatius’s kernels, which are already known and esteemed inEuropa; the shell in which the cocoanut grows, in which water soon becomes exceedingly bitter; bezoar stones; and innumerable other articles from which homely remedies are made here, among the Spaniards as well as among the Indians. The latter make much use of the remedies produced in the islands, and know some, both herbs and woods, which cure the most hideous and bloody wound in twenty-four hours. The rhubarb45may be smelled [sehuele] in many woodlands, and no one is acquainted with it; the herb of Calamba is especially good for preventing, by [the application of] its juice, the bad results of a blow or fall. More than all, in the mountains of Mindoro there is a tree calledcalinga, the bark of which has a delicious odor, which smells like cinnamon, cloves, and pepper all combined; I made a small quantity of chocolate, using the said bark powdered instead of cinnamon, and it was very pleasing to the taste. In the ship “Santissima Trinidad,” which the English captured, I was sending to Madrid some lozenges and many pieces of the said bark, which is a delicious flavor for seasoning ragouts; and I have used it in my household. Señor Anda also sent to Madrid the aforesaid bark, and, I think, chocolate made with it powdered. So great is the abundance of these trees that there are mountains, many leguas in extent, which produce them.

38. If the foreigners had these trees, they would have already introduced in the world the use of thiscommodity, with enormous profits; and we, if we possessed industry, and zeal for the interests of the nation, would have been able with this tree, to lessen the consumption of the cinnamon and cloves of the Dutch. Let these points be considered, and the advantages will be recognized which can assuredly be expected by the company which may be formed in these islands—regarding it as certain that nothing will make progress, except by this means; rather, this colony will in a little while go wretchedly to destruction, without the least hope for its reëstablishment.

39. By way of conclusion to this chapter, I will note as the last (and an important) advantage of the aforesaid company the conspicuously fair treatment and friendly reception which the Spaniards have experienced, and may expect, throughout India. Our silver [money] is in good repute in all regions, and those peoples, especially the Chinese and the princes of India, show the greatest eagerness and make great efforts to obtain it, as being the most valuable for them; and, although the Dutch, English, French and other powers trade in this part of the world with our pesos, the Spanish ships are always better received in those ports, because they carry more silver and more products of these islands, which are held in very evident esteem.

40. Since I have been in Manila, I have seen only the traders from Canton and Emui in China visit this port,46except the ship “Guadalupe,” whichwent to the [Malabar?] Coast; and through its captain and officers I have heard of the friendly reception which they met in all the ports of India. But in other days the commerce of this colony was more extensive. In China it was established in the year 1598, and has been maintained without interruption; the king of Camboja asked this government for aid, and it was sent to him in the year 1594, leaving commerce with that country established. In the same year the king of Siam sent an embassy to open commerce with these islands, and in 1599 the said commerce was actually begun, by vessels which went from these islands, and which came from Siam, with which country the Spaniards have maintained the most friendly relations. This was recently experienced in the case of the ship which was built there inthe year 53, by order of our governor the Marques de Ovando, who sent thither letters for the said king of Siam; and the latter, in virtue of these, furnished a sufficient sum of money, and gave all the other assistance which they asked from him. In the year 718, the same king of Siam granted a piece of land, in order that the Spaniards might establish a trading-post there.

41. In the year 1596, commerce with these islands was established in Cochinchina, and the Spaniards declined to establish a trading-post [on the land] which this king afterward bestowed upon them. In Tunquin also the Spaniards undertook their commerce; and in Zurrate, Vengala, and other kingdoms of India, both Moorish and heathen, they have been equally well received. Although, on account of the reverses of this commonwealth and the lack of courage in its merchants, the Spaniards have given up this commerce for several years past, it cannot be doubted that the aforesaid company has the opportunity to establish itself advantageously, furnishing a market for the products of these islands, bringing hither those of the said kingdoms, and establishing (if that shall be expedient) some trading-posts—with which their purchases will be at more reasonable prices, and their gains in España and Nueva España more assured.

42. Here at the same time another advantage presents itself. The commerce which now is carried on with Acapulco by private persons suffers many losses, occasioned by the unsuccessful fairs there. These losses originate in the necessity of selling the goods in order to send back [to Manila] the money that they produce; for even if the merchants lose in the sale something on the principal which they shipped,it is necessary to sell their goods in order to repay what they obtained from theobras piasfor their investments. If the goods are left in Nueva España, in order to take advantage of an opportunity for better sale, they cannot meet the cost of the expenses, and here find themselves tormented by their creditors. The company cannot be placed in such straits, but will always sell their wares to advantage and profit; for when in Acapulco they do not obtain good returns on the merchandise, they can transfer it to the storehouse which they will have to establish in Mexico. This expedient alone will be sufficient to induce the Mexicans to make strenuous endeavors to be preferred in the sale at the said port, because they will not deceive the said company as they now do private persons, acting aggressively against them, in order to fix arbitrarily the prices of their goods—constrained as our merchants are to sell them, on account of the limitation of the time [of the fair], since the galleons ought to sail from the said port by the twenty-fifth of March.

43. I will conclude this chapter with the authority of the celebrated Don Geronimo Ustariz,47who, although he disapproves the commerce [managed] by companies in España and the Americas, considers it expedient in these islands; and indeed, when his arguments against the establishment of the said companies are examined, it will be seen that they do not apply to this commerce—where, on the contrary, it will be seen that not even the least progress can besecured, unless the company of which I am speaking be formed.

44. The same author, speaking of the commerce in spices, is inclined to think that it ought to be carried on directly by the Spaniards, by the same route which other nations adopt for it, arranging the purchases in these islands in order to supply the Americas and all España by the ports of Acapulco, Panama, and Portovelo. This exhibits the utility of what I have herein set forth, for it is confirmed by the three most earnest and distinguished Spaniards of this century, to wit, the Visconde del Puerto, Don Miguel de Zabala, and Don Geronimo Ustariz. But I am surprised that this last-named writer, who treats the subject of commerce so extensively and so acutely, with the greatest erudition and knowledge of whatever there is to be known of foreign nations and countries, should be ignorant that these islands produce in abundance cinnamon, pepper, and nutmeg, which, without the necessity of buying it from the Dutch, we can use for our benefit, in order to supply all our own dominions. This is a proof that the Spaniards of Philipinas do not apply themselves to becoming acquainted with this country, in order to make known its products; and that they would not be [thus] ignorant if the alcaldes-mayor would make reports—one to their successors, and another to the government—of the condition of each province, as I advised his Majesty in the past year of 1760.

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