Chapter Fifth: Of the extension which the commerce of the aforesaid company can enjoy1–3. [Viana makes remonstrance against “the limitations and restrictions with which the commerceof the Spaniards is established.” These only enable foreigners to compete with them to greater advantage, and increase the gains of foreign traders. He adduces the examples of other nations in support of his position that commerce ought to be extended and freed from restrictions, as far as possible; and complains that Spaniards only are forbidden to trade with each other, in the colonies of that monarchy. (Section 3.) “The argument for this is apparently founded on the exportation of silver, and on the opposition made by the merchants of Cadiz, who are misled by foreigners, and that of the officials at Acapulco, who find their advantage in the said limitation. Those merchants are always inveighing against the injuries that result to their trade, and the check to our [Spanish] manufactures, with which arguments they have always tried to bring about the ruin of this [Philippine] commerce; but I will see if I cannot overthrow these arguments.”]4. All the silver that is coined in the dominions of España comes to a halt in foreign kingdoms, among our greatest enemies. The treasures of the Indias pass through the aqueduct of Cadiz, without leaving even a trace on the conduits of the Spanish merchants, as can be demonstrated by [comparing] the riches that the Indias have produced, and the poverty of the Spaniards. Upon this point I refer to what Don Miguel de Zavala says in his memorial; and that which the celebrated Macanaz has written on the same subject ought to be printed on plates of gold, or, better, in the hearts of our sovereigns and their ministers of state, in order to cure the wounds of their vassals with the remedies which he proposes. For if all the silver is carried away from the dominionsof España, what more will she have, whether it go by way of Acapulco or by way of Cadiz? I assert that in Cadiz the commerce of the foreigners is greater than that of the Spaniards: the latter (with the exception of some strong business houses, which have been built up in this century) support themselves by being figureheads48for the former, who cannot possess the commerce in their own behalf or in their own persons. This is disclosed by the “Universal dictionary of commerce,” in praising the good Catholic Spaniards in this illicit mode of carrying on business—which is the same as regarding them as being, even if not traitors, at least disobedient to their king. Here is seen the interested motive for [the claim] that the silver should not be exported by way of Acapulco, but that all should go to Cadiz, into the power of the foreigners—who are the ones who, in reality and with hidden hand, have always made opposition to this commerce of Manila.5. Those who carry away the silver from Acapulco are all Spaniards, and the greater part of it accumulates in the empire of China, which has not waged war against us, nor will she do so, with the gains that we allow her; but those who carry away the silver which reaches Cadiz are the foreigners, and it is going to remain with the powers who are harassing and ruining us with our own wealth. Let these points of difference be compared, and decide whether it is not a weak argument, that of the export [of silver from Nueva España], against which somuch clamor has been made by the commerce of Cadiz—or, to speak more correctly, the convenience of the foreigners—and I believe that it will be outweighed, not only by the loss of the royal duties which are yielded to the royal treasury by the silver which goes to Cadiz, but by the injury that is caused to us by the profits which we furnish to the foreigners. Moreover, the silver carried away from Acapulco can yield the same [amount in] duties, in order to avoid the aforesaid loss, if it be considered of much importance—which it is not; for even if two millions of pesos were carried away each year, and the royal treasury deprived of the duties thereon (for which privation there is no necessity), that is not a sum which merits the great opposition, if not bitter hatred, of the commerce of Cadiz for this poor commerce [of Manila].6. The other argument, that of the retardment which our manufactures of España would suffer [in competition] with those of China, is as easily overthrown. It is certain that our factories cannot furnish all the goods which are consumed in our dominions, and that on this account the silks, fabrics, hose, ribbons, etc., of other powers are allowed entrance therein; and what more need is there, in the case of these wares than of those of China, for declaiming against the injury which the latter, but not the former, occasion? There is no further difference except that the Spaniards trade with one class of the goods, and the foreigners with the other. Against the foreigners there is no one to raise objections, as some of them do against our own people; and as in these clamors there is no mention of the name of Englishmen, Frenchmen, Dutch, Swedes, Danes,Irishmen, etc., but [only] of the commerce of Cadiz and of its Spanish traders, the motive for this opposition is better hidden, the injury which they exaggerate is more readily believed, the minds of people are preoccupied with impressions of this sort; and the commerce of Manila, which has neither capital nor fame nor authority, and not so much influence as that of Cadiz, is the one which always suffers, which is permitted [only] with restrictions, and which cannot repair the damages experienced by the merchants of Cadiz without knowing them.7. Before this, I had already mentioned the great amount of silk, both raw and woven, which foreigners bring from China, and that with this they supply their own manufactures, and [likewise] obtain money from us by selling in España the fabrics from Canton as if they came from Paris, Londres, Amsterdam, etc. Is this, or is it not, detrimental to our manufactures? and, if it is, why is not an outcry made against it by the merchants of Cadiz? They will say that it is impossible to prohibit this commerce, while our own manufactures are in so backward a condition; but why will this argument not avail the Spanish merchants of Manila? They will say also that the foreigners introduce into España not fabrics from China, but those of their own manufacture; that, whether it be from one country or from another, the injury to our manufactures is the same. But what cannot be denied is, that the foreigners who obtain so great an amount of silk from China trade it in our dominions, and that we cannot do the same in order to deprive them of those enormous gains. If, then, the company of Spaniards were formed in these islands, they could convey fromChina a great deal of raw silk for our factories, and many special fabrics which would be of as good quality as those of Europa; they could furnish them more cheaply than the foreigners do; and, above all, the profits would remain among the Spaniards. Our commerce would steadily flourish; we would have more ships, to make our dominions safe; the marine service would be increased; and necessarily there would be diminution in the commerce of the foreigners, for which our deluded Spaniards are pleading.8. The royal duties will be the same, if the silk and fabrics of China are carried by our ships of the company, as if they were carried by the foreigners; and even if the kindness of our sovereign makes some reduction [in the duties], in order to favor the said company and subvert those that are hostile to it, other advantages, of greater importance than the aforesaid duties, will result to the crown, in the certain knowledge that, in the present state of things, that is prohibited to the Spaniards which is allowed to foreigners—that is, the introduction of goods from China which are difficult to recognize in España, on account of the facility with which European fabrics are imitated in Canton.9. By allowing to the aforesaid company the importation of Chinese goods into España, while the prohibition to foreigners remains in force, the trading-fleets and galleons will be supplied; and these commodities will be purchased less from foreigners, in order that our own manufactures and commerce may gain some growth.10. All the silk which our company will put on the market will diminish the amount sold by the foreigners;and if they have not a market for this commodity they will take on smaller cargoes of it in China, Cochinchina, Canton, Tonquin, Tripara, Bengala, and Achem, and the said company will find it easier to purchase the silk. Before the nations of Europe carried away the silk from Canton, it could be bought at very low prices; but since they began to carry on this commerce—which was in the year 1685, in which the emperor of China opened his ports to all nations—up to the present time, the prices have risen more than three hundred per cent, as some merchants of this city have informed me.11. In the six years that I have spent in Manila, the [price of] silk has risen every time; and because so much was being sent out of the country [of China], the emperor forbade, under the most rigorous penalties, the exportation of this product—of which an enormous amount is consumed in his empire, where it was already becoming scarce in the year 759—that it might be used by his vassals, whom he regards with the most extraordinary affection.12. Finally, when the merchants of Cadiz become shareholders in the said company there will be no more talk of the export of silver by way of Acapulco, or of the injury to our manufactures from the fabrics of China; or the only ones who will cry out against it will be the foreigners connected with the said commerce [of Cadiz], when their names are made known, for they will not [then] have Spaniards to talk, as the saying is, “through a goose’s mouth.” If it shall be considered expedient (as it seems to me it is) that the aforesaid company may ship freely, and without any restriction, such wares as it shall think best to the kingdom of Nueva España, theroyal duties can be so adjusted that the royal treasury will not suffer a great loss, under the certainty that the goods of the said commercial company will all be duly registered, as also the silver which they bring in return; for its directors will possess no authority for anything except what is according to the rules in the like method of commerce. This legality in the declarations [of goods shipped] will result in great benefit to the aforesaid royal duties, even though these be more moderate than the duties which are exacted from private persons whose greed for gain urges them to convey, and to bring [here], many contraband articles.13. For greater security on this point, it could be so regulated that there would not be the slightest uncertainty, by causing the agents or directors whom it will be necessary to have in this city, to write out the invoices of what they ship, according to the entries in their cash-books, and the same with the silver and the goods that are brought back in return—information of all this being sent from here to the officials at Acapulco, and reciprocally from that port to the officials at this capital, in order that on each side any possible infraction of the law may be known, and those engaged in the commerce be restrained from committing such. This exhibition of invoices and the returns in silver can be compared with the statements which the directors of the company will furnish, in order to ascertain whether the former agree with those which will be contained in the said statements. I take for granted that in the presentation, examination, and approval of these accounts there will be the supervision of some person appointed for that purpose by our sovereign—whoseroyal and benevolent disposition will, it is to be believed, place some capital in the company that I have mentioned, as a foundation for this great work; and in this case it is hardly possible that the least crevice will be found by which the royal duties might suffer loss.14. The nobility of España, from the highest rank down; the guilds of Madrid, who now form a commercial body of much importance; all the merchants of España, the kingdom of Mexico, Peru, and these islands; some foreigners; and many religious communities which have set aside the produce of their funds for pious purposes—all these will, without doubt, become shareholders in the aforesaid company, if they are convinced of the benefit of this commerce, and of the prosperity which will ensue to the Spanish nation; and when the said merchants have their gains by means of these seas assured, and a means of supplying the kingdom of Mexico with a great part of the goods which its people need, without the burden of the royal duties, it is certain that they will not desire to purchase foreign goods, except at such advantage as will prove detrimental to the foreigners.15. It is also evident that the aforesaid company will be able to furnish its commodities at lower prices than the foreign companies do; for it does not have to incur so many expenses in maintaining troops, fortresses, etc., as do the Dutch, English, and French; nor will the costs of the navigation be so great, because the voyage is shorter. Moreover, the purchases will be [made] in China, at the same prices as those of the said foreigners; and consequently, the company transporting its merchandiseto España, and being able to furnish goods at more reasonable prices than the foreigners do, for these reasons the profits will be greater and the losses of the foreigners more certain. By carrying the goods from these islands to Nueva España, the company will hinder the illicit commerce of the said foreigners, who in sailing from India to Europa, and from Europa to their colonies in America, must incur more expense than the said Spaniards, and will not be able to furnish commodities at the same prices as the latter can.16. The English who come to trade in China carry these goods to the ports of Inglaterra, pay there the duties on them, and afterward ship them to various regions—among these to Jamayca, from which island they carry on a very extensive illicit commerce with the Windward Islands; with Nueva España, through Honduras, and by way of the coasts of Campeche and Vera Cruz; and with Peru, through the colony of Sacramento, and various other places. The number of laden vessels which enter Jamaica every year exceeds five hundred; and by this can be estimated the value of the goods which are [thus] disposed of (for all of these are carried into our dominions), and the great amount of silver which they carry away from us, thus causing loss to the royal duties of his Majesty—which, in proportion to the said goods and the money which they produce, would be very large.17. Sabary, whom I have cited, estimates at eight millions of pesos the illicit commerce which the English carry on, from Jamayca alone, with the Spaniards of America; and he states, to the discredit of our nation, that all the ministers and officials,from the highest to the lowest, proceed by agreement to defraud the royal duties, and to become rich at the cost of what they seize from the royal revenues.18. Probably no less is the amount of the fraudulent commerce carried on by the Dutch from Curazao; and much greater is that which is conducted by the two nations (and even by the French) in Puerto Rico, Cartagena, Buenos Ayres, Campeche, Honduras, Portovelo, Caracas, Guayaquil, and the Canarias Islands, and the other ports of the Windward Islands and the two Americas—as also is made known by the same author whom I have already cited, besides what we all know.19. The new and very extensive territory which the aforesaid English now possess in North America, and on the Mexican Gulf as far as the Misisipi, renders this illicit commerce much easier for them by means of that coast, especially by way of the new Santender,49which has a good harbor for vessels of moderate size, and many rivers; it is not far distant by land from Cretaro [i.e., Queretaro] and other rich cities of Nueva España, and by sea it is not far from Vera Cruz. With these great opportunities, the illicit commerce can be pushed to the utmost; for the ambition and covetousness of the trader despises no means which may bring him profit.20. The commodities which the English illegally introduce [into our colonies] must necessarily be cheaper than those which go in our trading-fleets by way of Vera Cruz, for the latter pay many duties,and the former none; and the very English who sell in Cadiz to the Spaniards, paying their duties, sell the same commodities in Nueva España at a lower price than in Cadiz. Therefore, if some efficacious remedy be not applied to these illicit importations, I think that our commerce will be ruined; that our trading-fleets will experience great losses; that the royal duties will be diminished; and that in Nueva España the illicit commerce will reach an even greater extent than in Perù. But it also seems to me that if the commerce from these islands to Acapulco is free to our company the aforesaid losses can be in great part averted, for the following reasons.21. When the foreigners (and especially the English) obtain so much silk, both raw and woven, from China we must believe that they find this commerce profitable, and that the said commodity is very cheap in the said empire, compared with the prices of silks in Europa. The profit is more obvious in the woven goods, because the infinite number of people who inhabit China, and the abundance of workmen in every kind of occupation, cause their manufactures to be exceedingly cheap—as all of us who live in this part of the world know by experience, who every year send to Canton commissions for many articles, because they cost us less than to make the purchases in this city. For instance: The Chinese and the Spaniards carry silver from here to Canton, where it is worth three per cent more; and nevertheless a snuff-box, a salver, and other small articles of silver cost less there than when made here to order—which shows the great saving of [cost in the] manufacture which results from the great abundance of workmen, as I have said.22. This advantage which the English havethrough the commerce of Canton—to which port usually come every year thirteen or fourteen ships—can also be enjoyed by our company; and, buying at the same prices [as the English]; it can sell its goods at lower prices in Nueva España, even after paying the royal duties. For the English are obliged to make longer and more costly voyages, as is that from Canton to Inglaterra, and from there to España and Nueva España; while the Spaniards will sail from here to Acapulco. The former pay royal duties in Inglaterra, and the latter will pay these in Acapulco, saving the expenses of the second voyage which the English make, to their colonies in America. Finally, the Spaniards are not obliged to maintain, at so great expense as do the English, fortified posts and many troops, which are supported by their profits; for these reasons, the latter will not be able to sell their goods at the same price as that of the Spanish company. Consequently, they will not make illicit importations [into the Spanish colonies] of silks and [woolen] fabrics; and even those of their linen goads (which are most to be dreaded) can be diminished with [our importations of] the light linen goods of China [liencesillo] (which are used in Nueva España), with “elephants” and other goods from the coast, and, in due time, with the cotton cloths which will be woven in these islands. Here there is abundance of cotton, and of people for its cultivation and manufacture—especially if some masters in this art come from España, or, in case that fail, from the Coromandel or the Malabar coast; and if among the Indians be introduced the spinning-wheels which are already in use in the manufactures of España.23. From all these arguments it will be possibleto conclude whether they are as well adapted to free commerce [of these islands] with the kingdom of Peru, and to that which the two Americas can mutually and reciprocally conduct between each other, in order that all the vassals may have a share in the extension of the commerce which hitherto has been prohibited to them; that the products of all the provinces may be increased, by the market which will be provided for them; that the Southern [i.e., Pacific] coasts of the said Americas may have an abundance of vessels; that they may mutually aid and defend each other from enemies; that by this means all our dominions remote from España may be more securely preserved; that our silver may have wide circulation among the Spaniards, who, occupied in this lawful traffic, will not expose their money to the risks of the illicit commerce; that the commerce of the foreigners may be diminished, without the least loss to the royal exchequer in the duties from them; and, in fine, that with the gains [from this commerce], and with the decreased exportation of silver to the foreign kingdoms of Europa, the prosperity of our monarchy may begin, and it may come to be the most worthy of respect in all the world, with the extension of its commerce—which is the sole and only means of attaining success; for no other means has been found more effectual, by either ancient or modern geniuses.
Chapter Fifth: Of the extension which the commerce of the aforesaid company can enjoy1–3. [Viana makes remonstrance against “the limitations and restrictions with which the commerceof the Spaniards is established.” These only enable foreigners to compete with them to greater advantage, and increase the gains of foreign traders. He adduces the examples of other nations in support of his position that commerce ought to be extended and freed from restrictions, as far as possible; and complains that Spaniards only are forbidden to trade with each other, in the colonies of that monarchy. (Section 3.) “The argument for this is apparently founded on the exportation of silver, and on the opposition made by the merchants of Cadiz, who are misled by foreigners, and that of the officials at Acapulco, who find their advantage in the said limitation. Those merchants are always inveighing against the injuries that result to their trade, and the check to our [Spanish] manufactures, with which arguments they have always tried to bring about the ruin of this [Philippine] commerce; but I will see if I cannot overthrow these arguments.”]4. All the silver that is coined in the dominions of España comes to a halt in foreign kingdoms, among our greatest enemies. The treasures of the Indias pass through the aqueduct of Cadiz, without leaving even a trace on the conduits of the Spanish merchants, as can be demonstrated by [comparing] the riches that the Indias have produced, and the poverty of the Spaniards. Upon this point I refer to what Don Miguel de Zavala says in his memorial; and that which the celebrated Macanaz has written on the same subject ought to be printed on plates of gold, or, better, in the hearts of our sovereigns and their ministers of state, in order to cure the wounds of their vassals with the remedies which he proposes. For if all the silver is carried away from the dominionsof España, what more will she have, whether it go by way of Acapulco or by way of Cadiz? I assert that in Cadiz the commerce of the foreigners is greater than that of the Spaniards: the latter (with the exception of some strong business houses, which have been built up in this century) support themselves by being figureheads48for the former, who cannot possess the commerce in their own behalf or in their own persons. This is disclosed by the “Universal dictionary of commerce,” in praising the good Catholic Spaniards in this illicit mode of carrying on business—which is the same as regarding them as being, even if not traitors, at least disobedient to their king. Here is seen the interested motive for [the claim] that the silver should not be exported by way of Acapulco, but that all should go to Cadiz, into the power of the foreigners—who are the ones who, in reality and with hidden hand, have always made opposition to this commerce of Manila.5. Those who carry away the silver from Acapulco are all Spaniards, and the greater part of it accumulates in the empire of China, which has not waged war against us, nor will she do so, with the gains that we allow her; but those who carry away the silver which reaches Cadiz are the foreigners, and it is going to remain with the powers who are harassing and ruining us with our own wealth. Let these points of difference be compared, and decide whether it is not a weak argument, that of the export [of silver from Nueva España], against which somuch clamor has been made by the commerce of Cadiz—or, to speak more correctly, the convenience of the foreigners—and I believe that it will be outweighed, not only by the loss of the royal duties which are yielded to the royal treasury by the silver which goes to Cadiz, but by the injury that is caused to us by the profits which we furnish to the foreigners. Moreover, the silver carried away from Acapulco can yield the same [amount in] duties, in order to avoid the aforesaid loss, if it be considered of much importance—which it is not; for even if two millions of pesos were carried away each year, and the royal treasury deprived of the duties thereon (for which privation there is no necessity), that is not a sum which merits the great opposition, if not bitter hatred, of the commerce of Cadiz for this poor commerce [of Manila].6. The other argument, that of the retardment which our manufactures of España would suffer [in competition] with those of China, is as easily overthrown. It is certain that our factories cannot furnish all the goods which are consumed in our dominions, and that on this account the silks, fabrics, hose, ribbons, etc., of other powers are allowed entrance therein; and what more need is there, in the case of these wares than of those of China, for declaiming against the injury which the latter, but not the former, occasion? There is no further difference except that the Spaniards trade with one class of the goods, and the foreigners with the other. Against the foreigners there is no one to raise objections, as some of them do against our own people; and as in these clamors there is no mention of the name of Englishmen, Frenchmen, Dutch, Swedes, Danes,Irishmen, etc., but [only] of the commerce of Cadiz and of its Spanish traders, the motive for this opposition is better hidden, the injury which they exaggerate is more readily believed, the minds of people are preoccupied with impressions of this sort; and the commerce of Manila, which has neither capital nor fame nor authority, and not so much influence as that of Cadiz, is the one which always suffers, which is permitted [only] with restrictions, and which cannot repair the damages experienced by the merchants of Cadiz without knowing them.7. Before this, I had already mentioned the great amount of silk, both raw and woven, which foreigners bring from China, and that with this they supply their own manufactures, and [likewise] obtain money from us by selling in España the fabrics from Canton as if they came from Paris, Londres, Amsterdam, etc. Is this, or is it not, detrimental to our manufactures? and, if it is, why is not an outcry made against it by the merchants of Cadiz? They will say that it is impossible to prohibit this commerce, while our own manufactures are in so backward a condition; but why will this argument not avail the Spanish merchants of Manila? They will say also that the foreigners introduce into España not fabrics from China, but those of their own manufacture; that, whether it be from one country or from another, the injury to our manufactures is the same. But what cannot be denied is, that the foreigners who obtain so great an amount of silk from China trade it in our dominions, and that we cannot do the same in order to deprive them of those enormous gains. If, then, the company of Spaniards were formed in these islands, they could convey fromChina a great deal of raw silk for our factories, and many special fabrics which would be of as good quality as those of Europa; they could furnish them more cheaply than the foreigners do; and, above all, the profits would remain among the Spaniards. Our commerce would steadily flourish; we would have more ships, to make our dominions safe; the marine service would be increased; and necessarily there would be diminution in the commerce of the foreigners, for which our deluded Spaniards are pleading.8. The royal duties will be the same, if the silk and fabrics of China are carried by our ships of the company, as if they were carried by the foreigners; and even if the kindness of our sovereign makes some reduction [in the duties], in order to favor the said company and subvert those that are hostile to it, other advantages, of greater importance than the aforesaid duties, will result to the crown, in the certain knowledge that, in the present state of things, that is prohibited to the Spaniards which is allowed to foreigners—that is, the introduction of goods from China which are difficult to recognize in España, on account of the facility with which European fabrics are imitated in Canton.9. By allowing to the aforesaid company the importation of Chinese goods into España, while the prohibition to foreigners remains in force, the trading-fleets and galleons will be supplied; and these commodities will be purchased less from foreigners, in order that our own manufactures and commerce may gain some growth.10. All the silk which our company will put on the market will diminish the amount sold by the foreigners;and if they have not a market for this commodity they will take on smaller cargoes of it in China, Cochinchina, Canton, Tonquin, Tripara, Bengala, and Achem, and the said company will find it easier to purchase the silk. Before the nations of Europe carried away the silk from Canton, it could be bought at very low prices; but since they began to carry on this commerce—which was in the year 1685, in which the emperor of China opened his ports to all nations—up to the present time, the prices have risen more than three hundred per cent, as some merchants of this city have informed me.11. In the six years that I have spent in Manila, the [price of] silk has risen every time; and because so much was being sent out of the country [of China], the emperor forbade, under the most rigorous penalties, the exportation of this product—of which an enormous amount is consumed in his empire, where it was already becoming scarce in the year 759—that it might be used by his vassals, whom he regards with the most extraordinary affection.12. Finally, when the merchants of Cadiz become shareholders in the said company there will be no more talk of the export of silver by way of Acapulco, or of the injury to our manufactures from the fabrics of China; or the only ones who will cry out against it will be the foreigners connected with the said commerce [of Cadiz], when their names are made known, for they will not [then] have Spaniards to talk, as the saying is, “through a goose’s mouth.” If it shall be considered expedient (as it seems to me it is) that the aforesaid company may ship freely, and without any restriction, such wares as it shall think best to the kingdom of Nueva España, theroyal duties can be so adjusted that the royal treasury will not suffer a great loss, under the certainty that the goods of the said commercial company will all be duly registered, as also the silver which they bring in return; for its directors will possess no authority for anything except what is according to the rules in the like method of commerce. This legality in the declarations [of goods shipped] will result in great benefit to the aforesaid royal duties, even though these be more moderate than the duties which are exacted from private persons whose greed for gain urges them to convey, and to bring [here], many contraband articles.13. For greater security on this point, it could be so regulated that there would not be the slightest uncertainty, by causing the agents or directors whom it will be necessary to have in this city, to write out the invoices of what they ship, according to the entries in their cash-books, and the same with the silver and the goods that are brought back in return—information of all this being sent from here to the officials at Acapulco, and reciprocally from that port to the officials at this capital, in order that on each side any possible infraction of the law may be known, and those engaged in the commerce be restrained from committing such. This exhibition of invoices and the returns in silver can be compared with the statements which the directors of the company will furnish, in order to ascertain whether the former agree with those which will be contained in the said statements. I take for granted that in the presentation, examination, and approval of these accounts there will be the supervision of some person appointed for that purpose by our sovereign—whoseroyal and benevolent disposition will, it is to be believed, place some capital in the company that I have mentioned, as a foundation for this great work; and in this case it is hardly possible that the least crevice will be found by which the royal duties might suffer loss.14. The nobility of España, from the highest rank down; the guilds of Madrid, who now form a commercial body of much importance; all the merchants of España, the kingdom of Mexico, Peru, and these islands; some foreigners; and many religious communities which have set aside the produce of their funds for pious purposes—all these will, without doubt, become shareholders in the aforesaid company, if they are convinced of the benefit of this commerce, and of the prosperity which will ensue to the Spanish nation; and when the said merchants have their gains by means of these seas assured, and a means of supplying the kingdom of Mexico with a great part of the goods which its people need, without the burden of the royal duties, it is certain that they will not desire to purchase foreign goods, except at such advantage as will prove detrimental to the foreigners.15. It is also evident that the aforesaid company will be able to furnish its commodities at lower prices than the foreign companies do; for it does not have to incur so many expenses in maintaining troops, fortresses, etc., as do the Dutch, English, and French; nor will the costs of the navigation be so great, because the voyage is shorter. Moreover, the purchases will be [made] in China, at the same prices as those of the said foreigners; and consequently, the company transporting its merchandiseto España, and being able to furnish goods at more reasonable prices than the foreigners do, for these reasons the profits will be greater and the losses of the foreigners more certain. By carrying the goods from these islands to Nueva España, the company will hinder the illicit commerce of the said foreigners, who in sailing from India to Europa, and from Europa to their colonies in America, must incur more expense than the said Spaniards, and will not be able to furnish commodities at the same prices as the latter can.16. The English who come to trade in China carry these goods to the ports of Inglaterra, pay there the duties on them, and afterward ship them to various regions—among these to Jamayca, from which island they carry on a very extensive illicit commerce with the Windward Islands; with Nueva España, through Honduras, and by way of the coasts of Campeche and Vera Cruz; and with Peru, through the colony of Sacramento, and various other places. The number of laden vessels which enter Jamaica every year exceeds five hundred; and by this can be estimated the value of the goods which are [thus] disposed of (for all of these are carried into our dominions), and the great amount of silver which they carry away from us, thus causing loss to the royal duties of his Majesty—which, in proportion to the said goods and the money which they produce, would be very large.17. Sabary, whom I have cited, estimates at eight millions of pesos the illicit commerce which the English carry on, from Jamayca alone, with the Spaniards of America; and he states, to the discredit of our nation, that all the ministers and officials,from the highest to the lowest, proceed by agreement to defraud the royal duties, and to become rich at the cost of what they seize from the royal revenues.18. Probably no less is the amount of the fraudulent commerce carried on by the Dutch from Curazao; and much greater is that which is conducted by the two nations (and even by the French) in Puerto Rico, Cartagena, Buenos Ayres, Campeche, Honduras, Portovelo, Caracas, Guayaquil, and the Canarias Islands, and the other ports of the Windward Islands and the two Americas—as also is made known by the same author whom I have already cited, besides what we all know.19. The new and very extensive territory which the aforesaid English now possess in North America, and on the Mexican Gulf as far as the Misisipi, renders this illicit commerce much easier for them by means of that coast, especially by way of the new Santender,49which has a good harbor for vessels of moderate size, and many rivers; it is not far distant by land from Cretaro [i.e., Queretaro] and other rich cities of Nueva España, and by sea it is not far from Vera Cruz. With these great opportunities, the illicit commerce can be pushed to the utmost; for the ambition and covetousness of the trader despises no means which may bring him profit.20. The commodities which the English illegally introduce [into our colonies] must necessarily be cheaper than those which go in our trading-fleets by way of Vera Cruz, for the latter pay many duties,and the former none; and the very English who sell in Cadiz to the Spaniards, paying their duties, sell the same commodities in Nueva España at a lower price than in Cadiz. Therefore, if some efficacious remedy be not applied to these illicit importations, I think that our commerce will be ruined; that our trading-fleets will experience great losses; that the royal duties will be diminished; and that in Nueva España the illicit commerce will reach an even greater extent than in Perù. But it also seems to me that if the commerce from these islands to Acapulco is free to our company the aforesaid losses can be in great part averted, for the following reasons.21. When the foreigners (and especially the English) obtain so much silk, both raw and woven, from China we must believe that they find this commerce profitable, and that the said commodity is very cheap in the said empire, compared with the prices of silks in Europa. The profit is more obvious in the woven goods, because the infinite number of people who inhabit China, and the abundance of workmen in every kind of occupation, cause their manufactures to be exceedingly cheap—as all of us who live in this part of the world know by experience, who every year send to Canton commissions for many articles, because they cost us less than to make the purchases in this city. For instance: The Chinese and the Spaniards carry silver from here to Canton, where it is worth three per cent more; and nevertheless a snuff-box, a salver, and other small articles of silver cost less there than when made here to order—which shows the great saving of [cost in the] manufacture which results from the great abundance of workmen, as I have said.22. This advantage which the English havethrough the commerce of Canton—to which port usually come every year thirteen or fourteen ships—can also be enjoyed by our company; and, buying at the same prices [as the English]; it can sell its goods at lower prices in Nueva España, even after paying the royal duties. For the English are obliged to make longer and more costly voyages, as is that from Canton to Inglaterra, and from there to España and Nueva España; while the Spaniards will sail from here to Acapulco. The former pay royal duties in Inglaterra, and the latter will pay these in Acapulco, saving the expenses of the second voyage which the English make, to their colonies in America. Finally, the Spaniards are not obliged to maintain, at so great expense as do the English, fortified posts and many troops, which are supported by their profits; for these reasons, the latter will not be able to sell their goods at the same price as that of the Spanish company. Consequently, they will not make illicit importations [into the Spanish colonies] of silks and [woolen] fabrics; and even those of their linen goads (which are most to be dreaded) can be diminished with [our importations of] the light linen goods of China [liencesillo] (which are used in Nueva España), with “elephants” and other goods from the coast, and, in due time, with the cotton cloths which will be woven in these islands. Here there is abundance of cotton, and of people for its cultivation and manufacture—especially if some masters in this art come from España, or, in case that fail, from the Coromandel or the Malabar coast; and if among the Indians be introduced the spinning-wheels which are already in use in the manufactures of España.23. From all these arguments it will be possibleto conclude whether they are as well adapted to free commerce [of these islands] with the kingdom of Peru, and to that which the two Americas can mutually and reciprocally conduct between each other, in order that all the vassals may have a share in the extension of the commerce which hitherto has been prohibited to them; that the products of all the provinces may be increased, by the market which will be provided for them; that the Southern [i.e., Pacific] coasts of the said Americas may have an abundance of vessels; that they may mutually aid and defend each other from enemies; that by this means all our dominions remote from España may be more securely preserved; that our silver may have wide circulation among the Spaniards, who, occupied in this lawful traffic, will not expose their money to the risks of the illicit commerce; that the commerce of the foreigners may be diminished, without the least loss to the royal exchequer in the duties from them; and, in fine, that with the gains [from this commerce], and with the decreased exportation of silver to the foreign kingdoms of Europa, the prosperity of our monarchy may begin, and it may come to be the most worthy of respect in all the world, with the extension of its commerce—which is the sole and only means of attaining success; for no other means has been found more effectual, by either ancient or modern geniuses.
Chapter Fifth: Of the extension which the commerce of the aforesaid company can enjoy1–3. [Viana makes remonstrance against “the limitations and restrictions with which the commerceof the Spaniards is established.” These only enable foreigners to compete with them to greater advantage, and increase the gains of foreign traders. He adduces the examples of other nations in support of his position that commerce ought to be extended and freed from restrictions, as far as possible; and complains that Spaniards only are forbidden to trade with each other, in the colonies of that monarchy. (Section 3.) “The argument for this is apparently founded on the exportation of silver, and on the opposition made by the merchants of Cadiz, who are misled by foreigners, and that of the officials at Acapulco, who find their advantage in the said limitation. Those merchants are always inveighing against the injuries that result to their trade, and the check to our [Spanish] manufactures, with which arguments they have always tried to bring about the ruin of this [Philippine] commerce; but I will see if I cannot overthrow these arguments.”]4. All the silver that is coined in the dominions of España comes to a halt in foreign kingdoms, among our greatest enemies. The treasures of the Indias pass through the aqueduct of Cadiz, without leaving even a trace on the conduits of the Spanish merchants, as can be demonstrated by [comparing] the riches that the Indias have produced, and the poverty of the Spaniards. Upon this point I refer to what Don Miguel de Zavala says in his memorial; and that which the celebrated Macanaz has written on the same subject ought to be printed on plates of gold, or, better, in the hearts of our sovereigns and their ministers of state, in order to cure the wounds of their vassals with the remedies which he proposes. For if all the silver is carried away from the dominionsof España, what more will she have, whether it go by way of Acapulco or by way of Cadiz? I assert that in Cadiz the commerce of the foreigners is greater than that of the Spaniards: the latter (with the exception of some strong business houses, which have been built up in this century) support themselves by being figureheads48for the former, who cannot possess the commerce in their own behalf or in their own persons. This is disclosed by the “Universal dictionary of commerce,” in praising the good Catholic Spaniards in this illicit mode of carrying on business—which is the same as regarding them as being, even if not traitors, at least disobedient to their king. Here is seen the interested motive for [the claim] that the silver should not be exported by way of Acapulco, but that all should go to Cadiz, into the power of the foreigners—who are the ones who, in reality and with hidden hand, have always made opposition to this commerce of Manila.5. Those who carry away the silver from Acapulco are all Spaniards, and the greater part of it accumulates in the empire of China, which has not waged war against us, nor will she do so, with the gains that we allow her; but those who carry away the silver which reaches Cadiz are the foreigners, and it is going to remain with the powers who are harassing and ruining us with our own wealth. Let these points of difference be compared, and decide whether it is not a weak argument, that of the export [of silver from Nueva España], against which somuch clamor has been made by the commerce of Cadiz—or, to speak more correctly, the convenience of the foreigners—and I believe that it will be outweighed, not only by the loss of the royal duties which are yielded to the royal treasury by the silver which goes to Cadiz, but by the injury that is caused to us by the profits which we furnish to the foreigners. Moreover, the silver carried away from Acapulco can yield the same [amount in] duties, in order to avoid the aforesaid loss, if it be considered of much importance—which it is not; for even if two millions of pesos were carried away each year, and the royal treasury deprived of the duties thereon (for which privation there is no necessity), that is not a sum which merits the great opposition, if not bitter hatred, of the commerce of Cadiz for this poor commerce [of Manila].6. The other argument, that of the retardment which our manufactures of España would suffer [in competition] with those of China, is as easily overthrown. It is certain that our factories cannot furnish all the goods which are consumed in our dominions, and that on this account the silks, fabrics, hose, ribbons, etc., of other powers are allowed entrance therein; and what more need is there, in the case of these wares than of those of China, for declaiming against the injury which the latter, but not the former, occasion? There is no further difference except that the Spaniards trade with one class of the goods, and the foreigners with the other. Against the foreigners there is no one to raise objections, as some of them do against our own people; and as in these clamors there is no mention of the name of Englishmen, Frenchmen, Dutch, Swedes, Danes,Irishmen, etc., but [only] of the commerce of Cadiz and of its Spanish traders, the motive for this opposition is better hidden, the injury which they exaggerate is more readily believed, the minds of people are preoccupied with impressions of this sort; and the commerce of Manila, which has neither capital nor fame nor authority, and not so much influence as that of Cadiz, is the one which always suffers, which is permitted [only] with restrictions, and which cannot repair the damages experienced by the merchants of Cadiz without knowing them.7. Before this, I had already mentioned the great amount of silk, both raw and woven, which foreigners bring from China, and that with this they supply their own manufactures, and [likewise] obtain money from us by selling in España the fabrics from Canton as if they came from Paris, Londres, Amsterdam, etc. Is this, or is it not, detrimental to our manufactures? and, if it is, why is not an outcry made against it by the merchants of Cadiz? They will say that it is impossible to prohibit this commerce, while our own manufactures are in so backward a condition; but why will this argument not avail the Spanish merchants of Manila? They will say also that the foreigners introduce into España not fabrics from China, but those of their own manufacture; that, whether it be from one country or from another, the injury to our manufactures is the same. But what cannot be denied is, that the foreigners who obtain so great an amount of silk from China trade it in our dominions, and that we cannot do the same in order to deprive them of those enormous gains. If, then, the company of Spaniards were formed in these islands, they could convey fromChina a great deal of raw silk for our factories, and many special fabrics which would be of as good quality as those of Europa; they could furnish them more cheaply than the foreigners do; and, above all, the profits would remain among the Spaniards. Our commerce would steadily flourish; we would have more ships, to make our dominions safe; the marine service would be increased; and necessarily there would be diminution in the commerce of the foreigners, for which our deluded Spaniards are pleading.8. The royal duties will be the same, if the silk and fabrics of China are carried by our ships of the company, as if they were carried by the foreigners; and even if the kindness of our sovereign makes some reduction [in the duties], in order to favor the said company and subvert those that are hostile to it, other advantages, of greater importance than the aforesaid duties, will result to the crown, in the certain knowledge that, in the present state of things, that is prohibited to the Spaniards which is allowed to foreigners—that is, the introduction of goods from China which are difficult to recognize in España, on account of the facility with which European fabrics are imitated in Canton.9. By allowing to the aforesaid company the importation of Chinese goods into España, while the prohibition to foreigners remains in force, the trading-fleets and galleons will be supplied; and these commodities will be purchased less from foreigners, in order that our own manufactures and commerce may gain some growth.10. All the silk which our company will put on the market will diminish the amount sold by the foreigners;and if they have not a market for this commodity they will take on smaller cargoes of it in China, Cochinchina, Canton, Tonquin, Tripara, Bengala, and Achem, and the said company will find it easier to purchase the silk. Before the nations of Europe carried away the silk from Canton, it could be bought at very low prices; but since they began to carry on this commerce—which was in the year 1685, in which the emperor of China opened his ports to all nations—up to the present time, the prices have risen more than three hundred per cent, as some merchants of this city have informed me.11. In the six years that I have spent in Manila, the [price of] silk has risen every time; and because so much was being sent out of the country [of China], the emperor forbade, under the most rigorous penalties, the exportation of this product—of which an enormous amount is consumed in his empire, where it was already becoming scarce in the year 759—that it might be used by his vassals, whom he regards with the most extraordinary affection.12. Finally, when the merchants of Cadiz become shareholders in the said company there will be no more talk of the export of silver by way of Acapulco, or of the injury to our manufactures from the fabrics of China; or the only ones who will cry out against it will be the foreigners connected with the said commerce [of Cadiz], when their names are made known, for they will not [then] have Spaniards to talk, as the saying is, “through a goose’s mouth.” If it shall be considered expedient (as it seems to me it is) that the aforesaid company may ship freely, and without any restriction, such wares as it shall think best to the kingdom of Nueva España, theroyal duties can be so adjusted that the royal treasury will not suffer a great loss, under the certainty that the goods of the said commercial company will all be duly registered, as also the silver which they bring in return; for its directors will possess no authority for anything except what is according to the rules in the like method of commerce. This legality in the declarations [of goods shipped] will result in great benefit to the aforesaid royal duties, even though these be more moderate than the duties which are exacted from private persons whose greed for gain urges them to convey, and to bring [here], many contraband articles.13. For greater security on this point, it could be so regulated that there would not be the slightest uncertainty, by causing the agents or directors whom it will be necessary to have in this city, to write out the invoices of what they ship, according to the entries in their cash-books, and the same with the silver and the goods that are brought back in return—information of all this being sent from here to the officials at Acapulco, and reciprocally from that port to the officials at this capital, in order that on each side any possible infraction of the law may be known, and those engaged in the commerce be restrained from committing such. This exhibition of invoices and the returns in silver can be compared with the statements which the directors of the company will furnish, in order to ascertain whether the former agree with those which will be contained in the said statements. I take for granted that in the presentation, examination, and approval of these accounts there will be the supervision of some person appointed for that purpose by our sovereign—whoseroyal and benevolent disposition will, it is to be believed, place some capital in the company that I have mentioned, as a foundation for this great work; and in this case it is hardly possible that the least crevice will be found by which the royal duties might suffer loss.14. The nobility of España, from the highest rank down; the guilds of Madrid, who now form a commercial body of much importance; all the merchants of España, the kingdom of Mexico, Peru, and these islands; some foreigners; and many religious communities which have set aside the produce of their funds for pious purposes—all these will, without doubt, become shareholders in the aforesaid company, if they are convinced of the benefit of this commerce, and of the prosperity which will ensue to the Spanish nation; and when the said merchants have their gains by means of these seas assured, and a means of supplying the kingdom of Mexico with a great part of the goods which its people need, without the burden of the royal duties, it is certain that they will not desire to purchase foreign goods, except at such advantage as will prove detrimental to the foreigners.15. It is also evident that the aforesaid company will be able to furnish its commodities at lower prices than the foreign companies do; for it does not have to incur so many expenses in maintaining troops, fortresses, etc., as do the Dutch, English, and French; nor will the costs of the navigation be so great, because the voyage is shorter. Moreover, the purchases will be [made] in China, at the same prices as those of the said foreigners; and consequently, the company transporting its merchandiseto España, and being able to furnish goods at more reasonable prices than the foreigners do, for these reasons the profits will be greater and the losses of the foreigners more certain. By carrying the goods from these islands to Nueva España, the company will hinder the illicit commerce of the said foreigners, who in sailing from India to Europa, and from Europa to their colonies in America, must incur more expense than the said Spaniards, and will not be able to furnish commodities at the same prices as the latter can.16. The English who come to trade in China carry these goods to the ports of Inglaterra, pay there the duties on them, and afterward ship them to various regions—among these to Jamayca, from which island they carry on a very extensive illicit commerce with the Windward Islands; with Nueva España, through Honduras, and by way of the coasts of Campeche and Vera Cruz; and with Peru, through the colony of Sacramento, and various other places. The number of laden vessels which enter Jamaica every year exceeds five hundred; and by this can be estimated the value of the goods which are [thus] disposed of (for all of these are carried into our dominions), and the great amount of silver which they carry away from us, thus causing loss to the royal duties of his Majesty—which, in proportion to the said goods and the money which they produce, would be very large.17. Sabary, whom I have cited, estimates at eight millions of pesos the illicit commerce which the English carry on, from Jamayca alone, with the Spaniards of America; and he states, to the discredit of our nation, that all the ministers and officials,from the highest to the lowest, proceed by agreement to defraud the royal duties, and to become rich at the cost of what they seize from the royal revenues.18. Probably no less is the amount of the fraudulent commerce carried on by the Dutch from Curazao; and much greater is that which is conducted by the two nations (and even by the French) in Puerto Rico, Cartagena, Buenos Ayres, Campeche, Honduras, Portovelo, Caracas, Guayaquil, and the Canarias Islands, and the other ports of the Windward Islands and the two Americas—as also is made known by the same author whom I have already cited, besides what we all know.19. The new and very extensive territory which the aforesaid English now possess in North America, and on the Mexican Gulf as far as the Misisipi, renders this illicit commerce much easier for them by means of that coast, especially by way of the new Santender,49which has a good harbor for vessels of moderate size, and many rivers; it is not far distant by land from Cretaro [i.e., Queretaro] and other rich cities of Nueva España, and by sea it is not far from Vera Cruz. With these great opportunities, the illicit commerce can be pushed to the utmost; for the ambition and covetousness of the trader despises no means which may bring him profit.20. The commodities which the English illegally introduce [into our colonies] must necessarily be cheaper than those which go in our trading-fleets by way of Vera Cruz, for the latter pay many duties,and the former none; and the very English who sell in Cadiz to the Spaniards, paying their duties, sell the same commodities in Nueva España at a lower price than in Cadiz. Therefore, if some efficacious remedy be not applied to these illicit importations, I think that our commerce will be ruined; that our trading-fleets will experience great losses; that the royal duties will be diminished; and that in Nueva España the illicit commerce will reach an even greater extent than in Perù. But it also seems to me that if the commerce from these islands to Acapulco is free to our company the aforesaid losses can be in great part averted, for the following reasons.21. When the foreigners (and especially the English) obtain so much silk, both raw and woven, from China we must believe that they find this commerce profitable, and that the said commodity is very cheap in the said empire, compared with the prices of silks in Europa. The profit is more obvious in the woven goods, because the infinite number of people who inhabit China, and the abundance of workmen in every kind of occupation, cause their manufactures to be exceedingly cheap—as all of us who live in this part of the world know by experience, who every year send to Canton commissions for many articles, because they cost us less than to make the purchases in this city. For instance: The Chinese and the Spaniards carry silver from here to Canton, where it is worth three per cent more; and nevertheless a snuff-box, a salver, and other small articles of silver cost less there than when made here to order—which shows the great saving of [cost in the] manufacture which results from the great abundance of workmen, as I have said.22. This advantage which the English havethrough the commerce of Canton—to which port usually come every year thirteen or fourteen ships—can also be enjoyed by our company; and, buying at the same prices [as the English]; it can sell its goods at lower prices in Nueva España, even after paying the royal duties. For the English are obliged to make longer and more costly voyages, as is that from Canton to Inglaterra, and from there to España and Nueva España; while the Spaniards will sail from here to Acapulco. The former pay royal duties in Inglaterra, and the latter will pay these in Acapulco, saving the expenses of the second voyage which the English make, to their colonies in America. Finally, the Spaniards are not obliged to maintain, at so great expense as do the English, fortified posts and many troops, which are supported by their profits; for these reasons, the latter will not be able to sell their goods at the same price as that of the Spanish company. Consequently, they will not make illicit importations [into the Spanish colonies] of silks and [woolen] fabrics; and even those of their linen goads (which are most to be dreaded) can be diminished with [our importations of] the light linen goods of China [liencesillo] (which are used in Nueva España), with “elephants” and other goods from the coast, and, in due time, with the cotton cloths which will be woven in these islands. Here there is abundance of cotton, and of people for its cultivation and manufacture—especially if some masters in this art come from España, or, in case that fail, from the Coromandel or the Malabar coast; and if among the Indians be introduced the spinning-wheels which are already in use in the manufactures of España.23. From all these arguments it will be possibleto conclude whether they are as well adapted to free commerce [of these islands] with the kingdom of Peru, and to that which the two Americas can mutually and reciprocally conduct between each other, in order that all the vassals may have a share in the extension of the commerce which hitherto has been prohibited to them; that the products of all the provinces may be increased, by the market which will be provided for them; that the Southern [i.e., Pacific] coasts of the said Americas may have an abundance of vessels; that they may mutually aid and defend each other from enemies; that by this means all our dominions remote from España may be more securely preserved; that our silver may have wide circulation among the Spaniards, who, occupied in this lawful traffic, will not expose their money to the risks of the illicit commerce; that the commerce of the foreigners may be diminished, without the least loss to the royal exchequer in the duties from them; and, in fine, that with the gains [from this commerce], and with the decreased exportation of silver to the foreign kingdoms of Europa, the prosperity of our monarchy may begin, and it may come to be the most worthy of respect in all the world, with the extension of its commerce—which is the sole and only means of attaining success; for no other means has been found more effectual, by either ancient or modern geniuses.
Chapter Fifth: Of the extension which the commerce of the aforesaid company can enjoy1–3. [Viana makes remonstrance against “the limitations and restrictions with which the commerceof the Spaniards is established.” These only enable foreigners to compete with them to greater advantage, and increase the gains of foreign traders. He adduces the examples of other nations in support of his position that commerce ought to be extended and freed from restrictions, as far as possible; and complains that Spaniards only are forbidden to trade with each other, in the colonies of that monarchy. (Section 3.) “The argument for this is apparently founded on the exportation of silver, and on the opposition made by the merchants of Cadiz, who are misled by foreigners, and that of the officials at Acapulco, who find their advantage in the said limitation. Those merchants are always inveighing against the injuries that result to their trade, and the check to our [Spanish] manufactures, with which arguments they have always tried to bring about the ruin of this [Philippine] commerce; but I will see if I cannot overthrow these arguments.”]4. All the silver that is coined in the dominions of España comes to a halt in foreign kingdoms, among our greatest enemies. The treasures of the Indias pass through the aqueduct of Cadiz, without leaving even a trace on the conduits of the Spanish merchants, as can be demonstrated by [comparing] the riches that the Indias have produced, and the poverty of the Spaniards. Upon this point I refer to what Don Miguel de Zavala says in his memorial; and that which the celebrated Macanaz has written on the same subject ought to be printed on plates of gold, or, better, in the hearts of our sovereigns and their ministers of state, in order to cure the wounds of their vassals with the remedies which he proposes. For if all the silver is carried away from the dominionsof España, what more will she have, whether it go by way of Acapulco or by way of Cadiz? I assert that in Cadiz the commerce of the foreigners is greater than that of the Spaniards: the latter (with the exception of some strong business houses, which have been built up in this century) support themselves by being figureheads48for the former, who cannot possess the commerce in their own behalf or in their own persons. This is disclosed by the “Universal dictionary of commerce,” in praising the good Catholic Spaniards in this illicit mode of carrying on business—which is the same as regarding them as being, even if not traitors, at least disobedient to their king. Here is seen the interested motive for [the claim] that the silver should not be exported by way of Acapulco, but that all should go to Cadiz, into the power of the foreigners—who are the ones who, in reality and with hidden hand, have always made opposition to this commerce of Manila.5. Those who carry away the silver from Acapulco are all Spaniards, and the greater part of it accumulates in the empire of China, which has not waged war against us, nor will she do so, with the gains that we allow her; but those who carry away the silver which reaches Cadiz are the foreigners, and it is going to remain with the powers who are harassing and ruining us with our own wealth. Let these points of difference be compared, and decide whether it is not a weak argument, that of the export [of silver from Nueva España], against which somuch clamor has been made by the commerce of Cadiz—or, to speak more correctly, the convenience of the foreigners—and I believe that it will be outweighed, not only by the loss of the royal duties which are yielded to the royal treasury by the silver which goes to Cadiz, but by the injury that is caused to us by the profits which we furnish to the foreigners. Moreover, the silver carried away from Acapulco can yield the same [amount in] duties, in order to avoid the aforesaid loss, if it be considered of much importance—which it is not; for even if two millions of pesos were carried away each year, and the royal treasury deprived of the duties thereon (for which privation there is no necessity), that is not a sum which merits the great opposition, if not bitter hatred, of the commerce of Cadiz for this poor commerce [of Manila].6. The other argument, that of the retardment which our manufactures of España would suffer [in competition] with those of China, is as easily overthrown. It is certain that our factories cannot furnish all the goods which are consumed in our dominions, and that on this account the silks, fabrics, hose, ribbons, etc., of other powers are allowed entrance therein; and what more need is there, in the case of these wares than of those of China, for declaiming against the injury which the latter, but not the former, occasion? There is no further difference except that the Spaniards trade with one class of the goods, and the foreigners with the other. Against the foreigners there is no one to raise objections, as some of them do against our own people; and as in these clamors there is no mention of the name of Englishmen, Frenchmen, Dutch, Swedes, Danes,Irishmen, etc., but [only] of the commerce of Cadiz and of its Spanish traders, the motive for this opposition is better hidden, the injury which they exaggerate is more readily believed, the minds of people are preoccupied with impressions of this sort; and the commerce of Manila, which has neither capital nor fame nor authority, and not so much influence as that of Cadiz, is the one which always suffers, which is permitted [only] with restrictions, and which cannot repair the damages experienced by the merchants of Cadiz without knowing them.7. Before this, I had already mentioned the great amount of silk, both raw and woven, which foreigners bring from China, and that with this they supply their own manufactures, and [likewise] obtain money from us by selling in España the fabrics from Canton as if they came from Paris, Londres, Amsterdam, etc. Is this, or is it not, detrimental to our manufactures? and, if it is, why is not an outcry made against it by the merchants of Cadiz? They will say that it is impossible to prohibit this commerce, while our own manufactures are in so backward a condition; but why will this argument not avail the Spanish merchants of Manila? They will say also that the foreigners introduce into España not fabrics from China, but those of their own manufacture; that, whether it be from one country or from another, the injury to our manufactures is the same. But what cannot be denied is, that the foreigners who obtain so great an amount of silk from China trade it in our dominions, and that we cannot do the same in order to deprive them of those enormous gains. If, then, the company of Spaniards were formed in these islands, they could convey fromChina a great deal of raw silk for our factories, and many special fabrics which would be of as good quality as those of Europa; they could furnish them more cheaply than the foreigners do; and, above all, the profits would remain among the Spaniards. Our commerce would steadily flourish; we would have more ships, to make our dominions safe; the marine service would be increased; and necessarily there would be diminution in the commerce of the foreigners, for which our deluded Spaniards are pleading.8. The royal duties will be the same, if the silk and fabrics of China are carried by our ships of the company, as if they were carried by the foreigners; and even if the kindness of our sovereign makes some reduction [in the duties], in order to favor the said company and subvert those that are hostile to it, other advantages, of greater importance than the aforesaid duties, will result to the crown, in the certain knowledge that, in the present state of things, that is prohibited to the Spaniards which is allowed to foreigners—that is, the introduction of goods from China which are difficult to recognize in España, on account of the facility with which European fabrics are imitated in Canton.9. By allowing to the aforesaid company the importation of Chinese goods into España, while the prohibition to foreigners remains in force, the trading-fleets and galleons will be supplied; and these commodities will be purchased less from foreigners, in order that our own manufactures and commerce may gain some growth.10. All the silk which our company will put on the market will diminish the amount sold by the foreigners;and if they have not a market for this commodity they will take on smaller cargoes of it in China, Cochinchina, Canton, Tonquin, Tripara, Bengala, and Achem, and the said company will find it easier to purchase the silk. Before the nations of Europe carried away the silk from Canton, it could be bought at very low prices; but since they began to carry on this commerce—which was in the year 1685, in which the emperor of China opened his ports to all nations—up to the present time, the prices have risen more than three hundred per cent, as some merchants of this city have informed me.11. In the six years that I have spent in Manila, the [price of] silk has risen every time; and because so much was being sent out of the country [of China], the emperor forbade, under the most rigorous penalties, the exportation of this product—of which an enormous amount is consumed in his empire, where it was already becoming scarce in the year 759—that it might be used by his vassals, whom he regards with the most extraordinary affection.12. Finally, when the merchants of Cadiz become shareholders in the said company there will be no more talk of the export of silver by way of Acapulco, or of the injury to our manufactures from the fabrics of China; or the only ones who will cry out against it will be the foreigners connected with the said commerce [of Cadiz], when their names are made known, for they will not [then] have Spaniards to talk, as the saying is, “through a goose’s mouth.” If it shall be considered expedient (as it seems to me it is) that the aforesaid company may ship freely, and without any restriction, such wares as it shall think best to the kingdom of Nueva España, theroyal duties can be so adjusted that the royal treasury will not suffer a great loss, under the certainty that the goods of the said commercial company will all be duly registered, as also the silver which they bring in return; for its directors will possess no authority for anything except what is according to the rules in the like method of commerce. This legality in the declarations [of goods shipped] will result in great benefit to the aforesaid royal duties, even though these be more moderate than the duties which are exacted from private persons whose greed for gain urges them to convey, and to bring [here], many contraband articles.13. For greater security on this point, it could be so regulated that there would not be the slightest uncertainty, by causing the agents or directors whom it will be necessary to have in this city, to write out the invoices of what they ship, according to the entries in their cash-books, and the same with the silver and the goods that are brought back in return—information of all this being sent from here to the officials at Acapulco, and reciprocally from that port to the officials at this capital, in order that on each side any possible infraction of the law may be known, and those engaged in the commerce be restrained from committing such. This exhibition of invoices and the returns in silver can be compared with the statements which the directors of the company will furnish, in order to ascertain whether the former agree with those which will be contained in the said statements. I take for granted that in the presentation, examination, and approval of these accounts there will be the supervision of some person appointed for that purpose by our sovereign—whoseroyal and benevolent disposition will, it is to be believed, place some capital in the company that I have mentioned, as a foundation for this great work; and in this case it is hardly possible that the least crevice will be found by which the royal duties might suffer loss.14. The nobility of España, from the highest rank down; the guilds of Madrid, who now form a commercial body of much importance; all the merchants of España, the kingdom of Mexico, Peru, and these islands; some foreigners; and many religious communities which have set aside the produce of their funds for pious purposes—all these will, without doubt, become shareholders in the aforesaid company, if they are convinced of the benefit of this commerce, and of the prosperity which will ensue to the Spanish nation; and when the said merchants have their gains by means of these seas assured, and a means of supplying the kingdom of Mexico with a great part of the goods which its people need, without the burden of the royal duties, it is certain that they will not desire to purchase foreign goods, except at such advantage as will prove detrimental to the foreigners.15. It is also evident that the aforesaid company will be able to furnish its commodities at lower prices than the foreign companies do; for it does not have to incur so many expenses in maintaining troops, fortresses, etc., as do the Dutch, English, and French; nor will the costs of the navigation be so great, because the voyage is shorter. Moreover, the purchases will be [made] in China, at the same prices as those of the said foreigners; and consequently, the company transporting its merchandiseto España, and being able to furnish goods at more reasonable prices than the foreigners do, for these reasons the profits will be greater and the losses of the foreigners more certain. By carrying the goods from these islands to Nueva España, the company will hinder the illicit commerce of the said foreigners, who in sailing from India to Europa, and from Europa to their colonies in America, must incur more expense than the said Spaniards, and will not be able to furnish commodities at the same prices as the latter can.16. The English who come to trade in China carry these goods to the ports of Inglaterra, pay there the duties on them, and afterward ship them to various regions—among these to Jamayca, from which island they carry on a very extensive illicit commerce with the Windward Islands; with Nueva España, through Honduras, and by way of the coasts of Campeche and Vera Cruz; and with Peru, through the colony of Sacramento, and various other places. The number of laden vessels which enter Jamaica every year exceeds five hundred; and by this can be estimated the value of the goods which are [thus] disposed of (for all of these are carried into our dominions), and the great amount of silver which they carry away from us, thus causing loss to the royal duties of his Majesty—which, in proportion to the said goods and the money which they produce, would be very large.17. Sabary, whom I have cited, estimates at eight millions of pesos the illicit commerce which the English carry on, from Jamayca alone, with the Spaniards of America; and he states, to the discredit of our nation, that all the ministers and officials,from the highest to the lowest, proceed by agreement to defraud the royal duties, and to become rich at the cost of what they seize from the royal revenues.18. Probably no less is the amount of the fraudulent commerce carried on by the Dutch from Curazao; and much greater is that which is conducted by the two nations (and even by the French) in Puerto Rico, Cartagena, Buenos Ayres, Campeche, Honduras, Portovelo, Caracas, Guayaquil, and the Canarias Islands, and the other ports of the Windward Islands and the two Americas—as also is made known by the same author whom I have already cited, besides what we all know.19. The new and very extensive territory which the aforesaid English now possess in North America, and on the Mexican Gulf as far as the Misisipi, renders this illicit commerce much easier for them by means of that coast, especially by way of the new Santender,49which has a good harbor for vessels of moderate size, and many rivers; it is not far distant by land from Cretaro [i.e., Queretaro] and other rich cities of Nueva España, and by sea it is not far from Vera Cruz. With these great opportunities, the illicit commerce can be pushed to the utmost; for the ambition and covetousness of the trader despises no means which may bring him profit.20. The commodities which the English illegally introduce [into our colonies] must necessarily be cheaper than those which go in our trading-fleets by way of Vera Cruz, for the latter pay many duties,and the former none; and the very English who sell in Cadiz to the Spaniards, paying their duties, sell the same commodities in Nueva España at a lower price than in Cadiz. Therefore, if some efficacious remedy be not applied to these illicit importations, I think that our commerce will be ruined; that our trading-fleets will experience great losses; that the royal duties will be diminished; and that in Nueva España the illicit commerce will reach an even greater extent than in Perù. But it also seems to me that if the commerce from these islands to Acapulco is free to our company the aforesaid losses can be in great part averted, for the following reasons.21. When the foreigners (and especially the English) obtain so much silk, both raw and woven, from China we must believe that they find this commerce profitable, and that the said commodity is very cheap in the said empire, compared with the prices of silks in Europa. The profit is more obvious in the woven goods, because the infinite number of people who inhabit China, and the abundance of workmen in every kind of occupation, cause their manufactures to be exceedingly cheap—as all of us who live in this part of the world know by experience, who every year send to Canton commissions for many articles, because they cost us less than to make the purchases in this city. For instance: The Chinese and the Spaniards carry silver from here to Canton, where it is worth three per cent more; and nevertheless a snuff-box, a salver, and other small articles of silver cost less there than when made here to order—which shows the great saving of [cost in the] manufacture which results from the great abundance of workmen, as I have said.22. This advantage which the English havethrough the commerce of Canton—to which port usually come every year thirteen or fourteen ships—can also be enjoyed by our company; and, buying at the same prices [as the English]; it can sell its goods at lower prices in Nueva España, even after paying the royal duties. For the English are obliged to make longer and more costly voyages, as is that from Canton to Inglaterra, and from there to España and Nueva España; while the Spaniards will sail from here to Acapulco. The former pay royal duties in Inglaterra, and the latter will pay these in Acapulco, saving the expenses of the second voyage which the English make, to their colonies in America. Finally, the Spaniards are not obliged to maintain, at so great expense as do the English, fortified posts and many troops, which are supported by their profits; for these reasons, the latter will not be able to sell their goods at the same price as that of the Spanish company. Consequently, they will not make illicit importations [into the Spanish colonies] of silks and [woolen] fabrics; and even those of their linen goads (which are most to be dreaded) can be diminished with [our importations of] the light linen goods of China [liencesillo] (which are used in Nueva España), with “elephants” and other goods from the coast, and, in due time, with the cotton cloths which will be woven in these islands. Here there is abundance of cotton, and of people for its cultivation and manufacture—especially if some masters in this art come from España, or, in case that fail, from the Coromandel or the Malabar coast; and if among the Indians be introduced the spinning-wheels which are already in use in the manufactures of España.23. From all these arguments it will be possibleto conclude whether they are as well adapted to free commerce [of these islands] with the kingdom of Peru, and to that which the two Americas can mutually and reciprocally conduct between each other, in order that all the vassals may have a share in the extension of the commerce which hitherto has been prohibited to them; that the products of all the provinces may be increased, by the market which will be provided for them; that the Southern [i.e., Pacific] coasts of the said Americas may have an abundance of vessels; that they may mutually aid and defend each other from enemies; that by this means all our dominions remote from España may be more securely preserved; that our silver may have wide circulation among the Spaniards, who, occupied in this lawful traffic, will not expose their money to the risks of the illicit commerce; that the commerce of the foreigners may be diminished, without the least loss to the royal exchequer in the duties from them; and, in fine, that with the gains [from this commerce], and with the decreased exportation of silver to the foreign kingdoms of Europa, the prosperity of our monarchy may begin, and it may come to be the most worthy of respect in all the world, with the extension of its commerce—which is the sole and only means of attaining success; for no other means has been found more effectual, by either ancient or modern geniuses.
Chapter Fifth: Of the extension which the commerce of the aforesaid company can enjoy1–3. [Viana makes remonstrance against “the limitations and restrictions with which the commerceof the Spaniards is established.” These only enable foreigners to compete with them to greater advantage, and increase the gains of foreign traders. He adduces the examples of other nations in support of his position that commerce ought to be extended and freed from restrictions, as far as possible; and complains that Spaniards only are forbidden to trade with each other, in the colonies of that monarchy. (Section 3.) “The argument for this is apparently founded on the exportation of silver, and on the opposition made by the merchants of Cadiz, who are misled by foreigners, and that of the officials at Acapulco, who find their advantage in the said limitation. Those merchants are always inveighing against the injuries that result to their trade, and the check to our [Spanish] manufactures, with which arguments they have always tried to bring about the ruin of this [Philippine] commerce; but I will see if I cannot overthrow these arguments.”]4. All the silver that is coined in the dominions of España comes to a halt in foreign kingdoms, among our greatest enemies. The treasures of the Indias pass through the aqueduct of Cadiz, without leaving even a trace on the conduits of the Spanish merchants, as can be demonstrated by [comparing] the riches that the Indias have produced, and the poverty of the Spaniards. Upon this point I refer to what Don Miguel de Zavala says in his memorial; and that which the celebrated Macanaz has written on the same subject ought to be printed on plates of gold, or, better, in the hearts of our sovereigns and their ministers of state, in order to cure the wounds of their vassals with the remedies which he proposes. For if all the silver is carried away from the dominionsof España, what more will she have, whether it go by way of Acapulco or by way of Cadiz? I assert that in Cadiz the commerce of the foreigners is greater than that of the Spaniards: the latter (with the exception of some strong business houses, which have been built up in this century) support themselves by being figureheads48for the former, who cannot possess the commerce in their own behalf or in their own persons. This is disclosed by the “Universal dictionary of commerce,” in praising the good Catholic Spaniards in this illicit mode of carrying on business—which is the same as regarding them as being, even if not traitors, at least disobedient to their king. Here is seen the interested motive for [the claim] that the silver should not be exported by way of Acapulco, but that all should go to Cadiz, into the power of the foreigners—who are the ones who, in reality and with hidden hand, have always made opposition to this commerce of Manila.5. Those who carry away the silver from Acapulco are all Spaniards, and the greater part of it accumulates in the empire of China, which has not waged war against us, nor will she do so, with the gains that we allow her; but those who carry away the silver which reaches Cadiz are the foreigners, and it is going to remain with the powers who are harassing and ruining us with our own wealth. Let these points of difference be compared, and decide whether it is not a weak argument, that of the export [of silver from Nueva España], against which somuch clamor has been made by the commerce of Cadiz—or, to speak more correctly, the convenience of the foreigners—and I believe that it will be outweighed, not only by the loss of the royal duties which are yielded to the royal treasury by the silver which goes to Cadiz, but by the injury that is caused to us by the profits which we furnish to the foreigners. Moreover, the silver carried away from Acapulco can yield the same [amount in] duties, in order to avoid the aforesaid loss, if it be considered of much importance—which it is not; for even if two millions of pesos were carried away each year, and the royal treasury deprived of the duties thereon (for which privation there is no necessity), that is not a sum which merits the great opposition, if not bitter hatred, of the commerce of Cadiz for this poor commerce [of Manila].6. The other argument, that of the retardment which our manufactures of España would suffer [in competition] with those of China, is as easily overthrown. It is certain that our factories cannot furnish all the goods which are consumed in our dominions, and that on this account the silks, fabrics, hose, ribbons, etc., of other powers are allowed entrance therein; and what more need is there, in the case of these wares than of those of China, for declaiming against the injury which the latter, but not the former, occasion? There is no further difference except that the Spaniards trade with one class of the goods, and the foreigners with the other. Against the foreigners there is no one to raise objections, as some of them do against our own people; and as in these clamors there is no mention of the name of Englishmen, Frenchmen, Dutch, Swedes, Danes,Irishmen, etc., but [only] of the commerce of Cadiz and of its Spanish traders, the motive for this opposition is better hidden, the injury which they exaggerate is more readily believed, the minds of people are preoccupied with impressions of this sort; and the commerce of Manila, which has neither capital nor fame nor authority, and not so much influence as that of Cadiz, is the one which always suffers, which is permitted [only] with restrictions, and which cannot repair the damages experienced by the merchants of Cadiz without knowing them.7. Before this, I had already mentioned the great amount of silk, both raw and woven, which foreigners bring from China, and that with this they supply their own manufactures, and [likewise] obtain money from us by selling in España the fabrics from Canton as if they came from Paris, Londres, Amsterdam, etc. Is this, or is it not, detrimental to our manufactures? and, if it is, why is not an outcry made against it by the merchants of Cadiz? They will say that it is impossible to prohibit this commerce, while our own manufactures are in so backward a condition; but why will this argument not avail the Spanish merchants of Manila? They will say also that the foreigners introduce into España not fabrics from China, but those of their own manufacture; that, whether it be from one country or from another, the injury to our manufactures is the same. But what cannot be denied is, that the foreigners who obtain so great an amount of silk from China trade it in our dominions, and that we cannot do the same in order to deprive them of those enormous gains. If, then, the company of Spaniards were formed in these islands, they could convey fromChina a great deal of raw silk for our factories, and many special fabrics which would be of as good quality as those of Europa; they could furnish them more cheaply than the foreigners do; and, above all, the profits would remain among the Spaniards. Our commerce would steadily flourish; we would have more ships, to make our dominions safe; the marine service would be increased; and necessarily there would be diminution in the commerce of the foreigners, for which our deluded Spaniards are pleading.8. The royal duties will be the same, if the silk and fabrics of China are carried by our ships of the company, as if they were carried by the foreigners; and even if the kindness of our sovereign makes some reduction [in the duties], in order to favor the said company and subvert those that are hostile to it, other advantages, of greater importance than the aforesaid duties, will result to the crown, in the certain knowledge that, in the present state of things, that is prohibited to the Spaniards which is allowed to foreigners—that is, the introduction of goods from China which are difficult to recognize in España, on account of the facility with which European fabrics are imitated in Canton.9. By allowing to the aforesaid company the importation of Chinese goods into España, while the prohibition to foreigners remains in force, the trading-fleets and galleons will be supplied; and these commodities will be purchased less from foreigners, in order that our own manufactures and commerce may gain some growth.10. All the silk which our company will put on the market will diminish the amount sold by the foreigners;and if they have not a market for this commodity they will take on smaller cargoes of it in China, Cochinchina, Canton, Tonquin, Tripara, Bengala, and Achem, and the said company will find it easier to purchase the silk. Before the nations of Europe carried away the silk from Canton, it could be bought at very low prices; but since they began to carry on this commerce—which was in the year 1685, in which the emperor of China opened his ports to all nations—up to the present time, the prices have risen more than three hundred per cent, as some merchants of this city have informed me.11. In the six years that I have spent in Manila, the [price of] silk has risen every time; and because so much was being sent out of the country [of China], the emperor forbade, under the most rigorous penalties, the exportation of this product—of which an enormous amount is consumed in his empire, where it was already becoming scarce in the year 759—that it might be used by his vassals, whom he regards with the most extraordinary affection.12. Finally, when the merchants of Cadiz become shareholders in the said company there will be no more talk of the export of silver by way of Acapulco, or of the injury to our manufactures from the fabrics of China; or the only ones who will cry out against it will be the foreigners connected with the said commerce [of Cadiz], when their names are made known, for they will not [then] have Spaniards to talk, as the saying is, “through a goose’s mouth.” If it shall be considered expedient (as it seems to me it is) that the aforesaid company may ship freely, and without any restriction, such wares as it shall think best to the kingdom of Nueva España, theroyal duties can be so adjusted that the royal treasury will not suffer a great loss, under the certainty that the goods of the said commercial company will all be duly registered, as also the silver which they bring in return; for its directors will possess no authority for anything except what is according to the rules in the like method of commerce. This legality in the declarations [of goods shipped] will result in great benefit to the aforesaid royal duties, even though these be more moderate than the duties which are exacted from private persons whose greed for gain urges them to convey, and to bring [here], many contraband articles.13. For greater security on this point, it could be so regulated that there would not be the slightest uncertainty, by causing the agents or directors whom it will be necessary to have in this city, to write out the invoices of what they ship, according to the entries in their cash-books, and the same with the silver and the goods that are brought back in return—information of all this being sent from here to the officials at Acapulco, and reciprocally from that port to the officials at this capital, in order that on each side any possible infraction of the law may be known, and those engaged in the commerce be restrained from committing such. This exhibition of invoices and the returns in silver can be compared with the statements which the directors of the company will furnish, in order to ascertain whether the former agree with those which will be contained in the said statements. I take for granted that in the presentation, examination, and approval of these accounts there will be the supervision of some person appointed for that purpose by our sovereign—whoseroyal and benevolent disposition will, it is to be believed, place some capital in the company that I have mentioned, as a foundation for this great work; and in this case it is hardly possible that the least crevice will be found by which the royal duties might suffer loss.14. The nobility of España, from the highest rank down; the guilds of Madrid, who now form a commercial body of much importance; all the merchants of España, the kingdom of Mexico, Peru, and these islands; some foreigners; and many religious communities which have set aside the produce of their funds for pious purposes—all these will, without doubt, become shareholders in the aforesaid company, if they are convinced of the benefit of this commerce, and of the prosperity which will ensue to the Spanish nation; and when the said merchants have their gains by means of these seas assured, and a means of supplying the kingdom of Mexico with a great part of the goods which its people need, without the burden of the royal duties, it is certain that they will not desire to purchase foreign goods, except at such advantage as will prove detrimental to the foreigners.15. It is also evident that the aforesaid company will be able to furnish its commodities at lower prices than the foreign companies do; for it does not have to incur so many expenses in maintaining troops, fortresses, etc., as do the Dutch, English, and French; nor will the costs of the navigation be so great, because the voyage is shorter. Moreover, the purchases will be [made] in China, at the same prices as those of the said foreigners; and consequently, the company transporting its merchandiseto España, and being able to furnish goods at more reasonable prices than the foreigners do, for these reasons the profits will be greater and the losses of the foreigners more certain. By carrying the goods from these islands to Nueva España, the company will hinder the illicit commerce of the said foreigners, who in sailing from India to Europa, and from Europa to their colonies in America, must incur more expense than the said Spaniards, and will not be able to furnish commodities at the same prices as the latter can.16. The English who come to trade in China carry these goods to the ports of Inglaterra, pay there the duties on them, and afterward ship them to various regions—among these to Jamayca, from which island they carry on a very extensive illicit commerce with the Windward Islands; with Nueva España, through Honduras, and by way of the coasts of Campeche and Vera Cruz; and with Peru, through the colony of Sacramento, and various other places. The number of laden vessels which enter Jamaica every year exceeds five hundred; and by this can be estimated the value of the goods which are [thus] disposed of (for all of these are carried into our dominions), and the great amount of silver which they carry away from us, thus causing loss to the royal duties of his Majesty—which, in proportion to the said goods and the money which they produce, would be very large.17. Sabary, whom I have cited, estimates at eight millions of pesos the illicit commerce which the English carry on, from Jamayca alone, with the Spaniards of America; and he states, to the discredit of our nation, that all the ministers and officials,from the highest to the lowest, proceed by agreement to defraud the royal duties, and to become rich at the cost of what they seize from the royal revenues.18. Probably no less is the amount of the fraudulent commerce carried on by the Dutch from Curazao; and much greater is that which is conducted by the two nations (and even by the French) in Puerto Rico, Cartagena, Buenos Ayres, Campeche, Honduras, Portovelo, Caracas, Guayaquil, and the Canarias Islands, and the other ports of the Windward Islands and the two Americas—as also is made known by the same author whom I have already cited, besides what we all know.19. The new and very extensive territory which the aforesaid English now possess in North America, and on the Mexican Gulf as far as the Misisipi, renders this illicit commerce much easier for them by means of that coast, especially by way of the new Santender,49which has a good harbor for vessels of moderate size, and many rivers; it is not far distant by land from Cretaro [i.e., Queretaro] and other rich cities of Nueva España, and by sea it is not far from Vera Cruz. With these great opportunities, the illicit commerce can be pushed to the utmost; for the ambition and covetousness of the trader despises no means which may bring him profit.20. The commodities which the English illegally introduce [into our colonies] must necessarily be cheaper than those which go in our trading-fleets by way of Vera Cruz, for the latter pay many duties,and the former none; and the very English who sell in Cadiz to the Spaniards, paying their duties, sell the same commodities in Nueva España at a lower price than in Cadiz. Therefore, if some efficacious remedy be not applied to these illicit importations, I think that our commerce will be ruined; that our trading-fleets will experience great losses; that the royal duties will be diminished; and that in Nueva España the illicit commerce will reach an even greater extent than in Perù. But it also seems to me that if the commerce from these islands to Acapulco is free to our company the aforesaid losses can be in great part averted, for the following reasons.21. When the foreigners (and especially the English) obtain so much silk, both raw and woven, from China we must believe that they find this commerce profitable, and that the said commodity is very cheap in the said empire, compared with the prices of silks in Europa. The profit is more obvious in the woven goods, because the infinite number of people who inhabit China, and the abundance of workmen in every kind of occupation, cause their manufactures to be exceedingly cheap—as all of us who live in this part of the world know by experience, who every year send to Canton commissions for many articles, because they cost us less than to make the purchases in this city. For instance: The Chinese and the Spaniards carry silver from here to Canton, where it is worth three per cent more; and nevertheless a snuff-box, a salver, and other small articles of silver cost less there than when made here to order—which shows the great saving of [cost in the] manufacture which results from the great abundance of workmen, as I have said.22. This advantage which the English havethrough the commerce of Canton—to which port usually come every year thirteen or fourteen ships—can also be enjoyed by our company; and, buying at the same prices [as the English]; it can sell its goods at lower prices in Nueva España, even after paying the royal duties. For the English are obliged to make longer and more costly voyages, as is that from Canton to Inglaterra, and from there to España and Nueva España; while the Spaniards will sail from here to Acapulco. The former pay royal duties in Inglaterra, and the latter will pay these in Acapulco, saving the expenses of the second voyage which the English make, to their colonies in America. Finally, the Spaniards are not obliged to maintain, at so great expense as do the English, fortified posts and many troops, which are supported by their profits; for these reasons, the latter will not be able to sell their goods at the same price as that of the Spanish company. Consequently, they will not make illicit importations [into the Spanish colonies] of silks and [woolen] fabrics; and even those of their linen goads (which are most to be dreaded) can be diminished with [our importations of] the light linen goods of China [liencesillo] (which are used in Nueva España), with “elephants” and other goods from the coast, and, in due time, with the cotton cloths which will be woven in these islands. Here there is abundance of cotton, and of people for its cultivation and manufacture—especially if some masters in this art come from España, or, in case that fail, from the Coromandel or the Malabar coast; and if among the Indians be introduced the spinning-wheels which are already in use in the manufactures of España.23. From all these arguments it will be possibleto conclude whether they are as well adapted to free commerce [of these islands] with the kingdom of Peru, and to that which the two Americas can mutually and reciprocally conduct between each other, in order that all the vassals may have a share in the extension of the commerce which hitherto has been prohibited to them; that the products of all the provinces may be increased, by the market which will be provided for them; that the Southern [i.e., Pacific] coasts of the said Americas may have an abundance of vessels; that they may mutually aid and defend each other from enemies; that by this means all our dominions remote from España may be more securely preserved; that our silver may have wide circulation among the Spaniards, who, occupied in this lawful traffic, will not expose their money to the risks of the illicit commerce; that the commerce of the foreigners may be diminished, without the least loss to the royal exchequer in the duties from them; and, in fine, that with the gains [from this commerce], and with the decreased exportation of silver to the foreign kingdoms of Europa, the prosperity of our monarchy may begin, and it may come to be the most worthy of respect in all the world, with the extension of its commerce—which is the sole and only means of attaining success; for no other means has been found more effectual, by either ancient or modern geniuses.
Chapter Fifth: Of the extension which the commerce of the aforesaid company can enjoy1–3. [Viana makes remonstrance against “the limitations and restrictions with which the commerceof the Spaniards is established.” These only enable foreigners to compete with them to greater advantage, and increase the gains of foreign traders. He adduces the examples of other nations in support of his position that commerce ought to be extended and freed from restrictions, as far as possible; and complains that Spaniards only are forbidden to trade with each other, in the colonies of that monarchy. (Section 3.) “The argument for this is apparently founded on the exportation of silver, and on the opposition made by the merchants of Cadiz, who are misled by foreigners, and that of the officials at Acapulco, who find their advantage in the said limitation. Those merchants are always inveighing against the injuries that result to their trade, and the check to our [Spanish] manufactures, with which arguments they have always tried to bring about the ruin of this [Philippine] commerce; but I will see if I cannot overthrow these arguments.”]4. All the silver that is coined in the dominions of España comes to a halt in foreign kingdoms, among our greatest enemies. The treasures of the Indias pass through the aqueduct of Cadiz, without leaving even a trace on the conduits of the Spanish merchants, as can be demonstrated by [comparing] the riches that the Indias have produced, and the poverty of the Spaniards. Upon this point I refer to what Don Miguel de Zavala says in his memorial; and that which the celebrated Macanaz has written on the same subject ought to be printed on plates of gold, or, better, in the hearts of our sovereigns and their ministers of state, in order to cure the wounds of their vassals with the remedies which he proposes. For if all the silver is carried away from the dominionsof España, what more will she have, whether it go by way of Acapulco or by way of Cadiz? I assert that in Cadiz the commerce of the foreigners is greater than that of the Spaniards: the latter (with the exception of some strong business houses, which have been built up in this century) support themselves by being figureheads48for the former, who cannot possess the commerce in their own behalf or in their own persons. This is disclosed by the “Universal dictionary of commerce,” in praising the good Catholic Spaniards in this illicit mode of carrying on business—which is the same as regarding them as being, even if not traitors, at least disobedient to their king. Here is seen the interested motive for [the claim] that the silver should not be exported by way of Acapulco, but that all should go to Cadiz, into the power of the foreigners—who are the ones who, in reality and with hidden hand, have always made opposition to this commerce of Manila.5. Those who carry away the silver from Acapulco are all Spaniards, and the greater part of it accumulates in the empire of China, which has not waged war against us, nor will she do so, with the gains that we allow her; but those who carry away the silver which reaches Cadiz are the foreigners, and it is going to remain with the powers who are harassing and ruining us with our own wealth. Let these points of difference be compared, and decide whether it is not a weak argument, that of the export [of silver from Nueva España], against which somuch clamor has been made by the commerce of Cadiz—or, to speak more correctly, the convenience of the foreigners—and I believe that it will be outweighed, not only by the loss of the royal duties which are yielded to the royal treasury by the silver which goes to Cadiz, but by the injury that is caused to us by the profits which we furnish to the foreigners. Moreover, the silver carried away from Acapulco can yield the same [amount in] duties, in order to avoid the aforesaid loss, if it be considered of much importance—which it is not; for even if two millions of pesos were carried away each year, and the royal treasury deprived of the duties thereon (for which privation there is no necessity), that is not a sum which merits the great opposition, if not bitter hatred, of the commerce of Cadiz for this poor commerce [of Manila].6. The other argument, that of the retardment which our manufactures of España would suffer [in competition] with those of China, is as easily overthrown. It is certain that our factories cannot furnish all the goods which are consumed in our dominions, and that on this account the silks, fabrics, hose, ribbons, etc., of other powers are allowed entrance therein; and what more need is there, in the case of these wares than of those of China, for declaiming against the injury which the latter, but not the former, occasion? There is no further difference except that the Spaniards trade with one class of the goods, and the foreigners with the other. Against the foreigners there is no one to raise objections, as some of them do against our own people; and as in these clamors there is no mention of the name of Englishmen, Frenchmen, Dutch, Swedes, Danes,Irishmen, etc., but [only] of the commerce of Cadiz and of its Spanish traders, the motive for this opposition is better hidden, the injury which they exaggerate is more readily believed, the minds of people are preoccupied with impressions of this sort; and the commerce of Manila, which has neither capital nor fame nor authority, and not so much influence as that of Cadiz, is the one which always suffers, which is permitted [only] with restrictions, and which cannot repair the damages experienced by the merchants of Cadiz without knowing them.7. Before this, I had already mentioned the great amount of silk, both raw and woven, which foreigners bring from China, and that with this they supply their own manufactures, and [likewise] obtain money from us by selling in España the fabrics from Canton as if they came from Paris, Londres, Amsterdam, etc. Is this, or is it not, detrimental to our manufactures? and, if it is, why is not an outcry made against it by the merchants of Cadiz? They will say that it is impossible to prohibit this commerce, while our own manufactures are in so backward a condition; but why will this argument not avail the Spanish merchants of Manila? They will say also that the foreigners introduce into España not fabrics from China, but those of their own manufacture; that, whether it be from one country or from another, the injury to our manufactures is the same. But what cannot be denied is, that the foreigners who obtain so great an amount of silk from China trade it in our dominions, and that we cannot do the same in order to deprive them of those enormous gains. If, then, the company of Spaniards were formed in these islands, they could convey fromChina a great deal of raw silk for our factories, and many special fabrics which would be of as good quality as those of Europa; they could furnish them more cheaply than the foreigners do; and, above all, the profits would remain among the Spaniards. Our commerce would steadily flourish; we would have more ships, to make our dominions safe; the marine service would be increased; and necessarily there would be diminution in the commerce of the foreigners, for which our deluded Spaniards are pleading.8. The royal duties will be the same, if the silk and fabrics of China are carried by our ships of the company, as if they were carried by the foreigners; and even if the kindness of our sovereign makes some reduction [in the duties], in order to favor the said company and subvert those that are hostile to it, other advantages, of greater importance than the aforesaid duties, will result to the crown, in the certain knowledge that, in the present state of things, that is prohibited to the Spaniards which is allowed to foreigners—that is, the introduction of goods from China which are difficult to recognize in España, on account of the facility with which European fabrics are imitated in Canton.9. By allowing to the aforesaid company the importation of Chinese goods into España, while the prohibition to foreigners remains in force, the trading-fleets and galleons will be supplied; and these commodities will be purchased less from foreigners, in order that our own manufactures and commerce may gain some growth.10. All the silk which our company will put on the market will diminish the amount sold by the foreigners;and if they have not a market for this commodity they will take on smaller cargoes of it in China, Cochinchina, Canton, Tonquin, Tripara, Bengala, and Achem, and the said company will find it easier to purchase the silk. Before the nations of Europe carried away the silk from Canton, it could be bought at very low prices; but since they began to carry on this commerce—which was in the year 1685, in which the emperor of China opened his ports to all nations—up to the present time, the prices have risen more than three hundred per cent, as some merchants of this city have informed me.11. In the six years that I have spent in Manila, the [price of] silk has risen every time; and because so much was being sent out of the country [of China], the emperor forbade, under the most rigorous penalties, the exportation of this product—of which an enormous amount is consumed in his empire, where it was already becoming scarce in the year 759—that it might be used by his vassals, whom he regards with the most extraordinary affection.12. Finally, when the merchants of Cadiz become shareholders in the said company there will be no more talk of the export of silver by way of Acapulco, or of the injury to our manufactures from the fabrics of China; or the only ones who will cry out against it will be the foreigners connected with the said commerce [of Cadiz], when their names are made known, for they will not [then] have Spaniards to talk, as the saying is, “through a goose’s mouth.” If it shall be considered expedient (as it seems to me it is) that the aforesaid company may ship freely, and without any restriction, such wares as it shall think best to the kingdom of Nueva España, theroyal duties can be so adjusted that the royal treasury will not suffer a great loss, under the certainty that the goods of the said commercial company will all be duly registered, as also the silver which they bring in return; for its directors will possess no authority for anything except what is according to the rules in the like method of commerce. This legality in the declarations [of goods shipped] will result in great benefit to the aforesaid royal duties, even though these be more moderate than the duties which are exacted from private persons whose greed for gain urges them to convey, and to bring [here], many contraband articles.13. For greater security on this point, it could be so regulated that there would not be the slightest uncertainty, by causing the agents or directors whom it will be necessary to have in this city, to write out the invoices of what they ship, according to the entries in their cash-books, and the same with the silver and the goods that are brought back in return—information of all this being sent from here to the officials at Acapulco, and reciprocally from that port to the officials at this capital, in order that on each side any possible infraction of the law may be known, and those engaged in the commerce be restrained from committing such. This exhibition of invoices and the returns in silver can be compared with the statements which the directors of the company will furnish, in order to ascertain whether the former agree with those which will be contained in the said statements. I take for granted that in the presentation, examination, and approval of these accounts there will be the supervision of some person appointed for that purpose by our sovereign—whoseroyal and benevolent disposition will, it is to be believed, place some capital in the company that I have mentioned, as a foundation for this great work; and in this case it is hardly possible that the least crevice will be found by which the royal duties might suffer loss.14. The nobility of España, from the highest rank down; the guilds of Madrid, who now form a commercial body of much importance; all the merchants of España, the kingdom of Mexico, Peru, and these islands; some foreigners; and many religious communities which have set aside the produce of their funds for pious purposes—all these will, without doubt, become shareholders in the aforesaid company, if they are convinced of the benefit of this commerce, and of the prosperity which will ensue to the Spanish nation; and when the said merchants have their gains by means of these seas assured, and a means of supplying the kingdom of Mexico with a great part of the goods which its people need, without the burden of the royal duties, it is certain that they will not desire to purchase foreign goods, except at such advantage as will prove detrimental to the foreigners.15. It is also evident that the aforesaid company will be able to furnish its commodities at lower prices than the foreign companies do; for it does not have to incur so many expenses in maintaining troops, fortresses, etc., as do the Dutch, English, and French; nor will the costs of the navigation be so great, because the voyage is shorter. Moreover, the purchases will be [made] in China, at the same prices as those of the said foreigners; and consequently, the company transporting its merchandiseto España, and being able to furnish goods at more reasonable prices than the foreigners do, for these reasons the profits will be greater and the losses of the foreigners more certain. By carrying the goods from these islands to Nueva España, the company will hinder the illicit commerce of the said foreigners, who in sailing from India to Europa, and from Europa to their colonies in America, must incur more expense than the said Spaniards, and will not be able to furnish commodities at the same prices as the latter can.16. The English who come to trade in China carry these goods to the ports of Inglaterra, pay there the duties on them, and afterward ship them to various regions—among these to Jamayca, from which island they carry on a very extensive illicit commerce with the Windward Islands; with Nueva España, through Honduras, and by way of the coasts of Campeche and Vera Cruz; and with Peru, through the colony of Sacramento, and various other places. The number of laden vessels which enter Jamaica every year exceeds five hundred; and by this can be estimated the value of the goods which are [thus] disposed of (for all of these are carried into our dominions), and the great amount of silver which they carry away from us, thus causing loss to the royal duties of his Majesty—which, in proportion to the said goods and the money which they produce, would be very large.17. Sabary, whom I have cited, estimates at eight millions of pesos the illicit commerce which the English carry on, from Jamayca alone, with the Spaniards of America; and he states, to the discredit of our nation, that all the ministers and officials,from the highest to the lowest, proceed by agreement to defraud the royal duties, and to become rich at the cost of what they seize from the royal revenues.18. Probably no less is the amount of the fraudulent commerce carried on by the Dutch from Curazao; and much greater is that which is conducted by the two nations (and even by the French) in Puerto Rico, Cartagena, Buenos Ayres, Campeche, Honduras, Portovelo, Caracas, Guayaquil, and the Canarias Islands, and the other ports of the Windward Islands and the two Americas—as also is made known by the same author whom I have already cited, besides what we all know.19. The new and very extensive territory which the aforesaid English now possess in North America, and on the Mexican Gulf as far as the Misisipi, renders this illicit commerce much easier for them by means of that coast, especially by way of the new Santender,49which has a good harbor for vessels of moderate size, and many rivers; it is not far distant by land from Cretaro [i.e., Queretaro] and other rich cities of Nueva España, and by sea it is not far from Vera Cruz. With these great opportunities, the illicit commerce can be pushed to the utmost; for the ambition and covetousness of the trader despises no means which may bring him profit.20. The commodities which the English illegally introduce [into our colonies] must necessarily be cheaper than those which go in our trading-fleets by way of Vera Cruz, for the latter pay many duties,and the former none; and the very English who sell in Cadiz to the Spaniards, paying their duties, sell the same commodities in Nueva España at a lower price than in Cadiz. Therefore, if some efficacious remedy be not applied to these illicit importations, I think that our commerce will be ruined; that our trading-fleets will experience great losses; that the royal duties will be diminished; and that in Nueva España the illicit commerce will reach an even greater extent than in Perù. But it also seems to me that if the commerce from these islands to Acapulco is free to our company the aforesaid losses can be in great part averted, for the following reasons.21. When the foreigners (and especially the English) obtain so much silk, both raw and woven, from China we must believe that they find this commerce profitable, and that the said commodity is very cheap in the said empire, compared with the prices of silks in Europa. The profit is more obvious in the woven goods, because the infinite number of people who inhabit China, and the abundance of workmen in every kind of occupation, cause their manufactures to be exceedingly cheap—as all of us who live in this part of the world know by experience, who every year send to Canton commissions for many articles, because they cost us less than to make the purchases in this city. For instance: The Chinese and the Spaniards carry silver from here to Canton, where it is worth three per cent more; and nevertheless a snuff-box, a salver, and other small articles of silver cost less there than when made here to order—which shows the great saving of [cost in the] manufacture which results from the great abundance of workmen, as I have said.22. This advantage which the English havethrough the commerce of Canton—to which port usually come every year thirteen or fourteen ships—can also be enjoyed by our company; and, buying at the same prices [as the English]; it can sell its goods at lower prices in Nueva España, even after paying the royal duties. For the English are obliged to make longer and more costly voyages, as is that from Canton to Inglaterra, and from there to España and Nueva España; while the Spaniards will sail from here to Acapulco. The former pay royal duties in Inglaterra, and the latter will pay these in Acapulco, saving the expenses of the second voyage which the English make, to their colonies in America. Finally, the Spaniards are not obliged to maintain, at so great expense as do the English, fortified posts and many troops, which are supported by their profits; for these reasons, the latter will not be able to sell their goods at the same price as that of the Spanish company. Consequently, they will not make illicit importations [into the Spanish colonies] of silks and [woolen] fabrics; and even those of their linen goads (which are most to be dreaded) can be diminished with [our importations of] the light linen goods of China [liencesillo] (which are used in Nueva España), with “elephants” and other goods from the coast, and, in due time, with the cotton cloths which will be woven in these islands. Here there is abundance of cotton, and of people for its cultivation and manufacture—especially if some masters in this art come from España, or, in case that fail, from the Coromandel or the Malabar coast; and if among the Indians be introduced the spinning-wheels which are already in use in the manufactures of España.23. From all these arguments it will be possibleto conclude whether they are as well adapted to free commerce [of these islands] with the kingdom of Peru, and to that which the two Americas can mutually and reciprocally conduct between each other, in order that all the vassals may have a share in the extension of the commerce which hitherto has been prohibited to them; that the products of all the provinces may be increased, by the market which will be provided for them; that the Southern [i.e., Pacific] coasts of the said Americas may have an abundance of vessels; that they may mutually aid and defend each other from enemies; that by this means all our dominions remote from España may be more securely preserved; that our silver may have wide circulation among the Spaniards, who, occupied in this lawful traffic, will not expose their money to the risks of the illicit commerce; that the commerce of the foreigners may be diminished, without the least loss to the royal exchequer in the duties from them; and, in fine, that with the gains [from this commerce], and with the decreased exportation of silver to the foreign kingdoms of Europa, the prosperity of our monarchy may begin, and it may come to be the most worthy of respect in all the world, with the extension of its commerce—which is the sole and only means of attaining success; for no other means has been found more effectual, by either ancient or modern geniuses.
Chapter Fifth: Of the extension which the commerce of the aforesaid company can enjoy1–3. [Viana makes remonstrance against “the limitations and restrictions with which the commerceof the Spaniards is established.” These only enable foreigners to compete with them to greater advantage, and increase the gains of foreign traders. He adduces the examples of other nations in support of his position that commerce ought to be extended and freed from restrictions, as far as possible; and complains that Spaniards only are forbidden to trade with each other, in the colonies of that monarchy. (Section 3.) “The argument for this is apparently founded on the exportation of silver, and on the opposition made by the merchants of Cadiz, who are misled by foreigners, and that of the officials at Acapulco, who find their advantage in the said limitation. Those merchants are always inveighing against the injuries that result to their trade, and the check to our [Spanish] manufactures, with which arguments they have always tried to bring about the ruin of this [Philippine] commerce; but I will see if I cannot overthrow these arguments.”]4. All the silver that is coined in the dominions of España comes to a halt in foreign kingdoms, among our greatest enemies. The treasures of the Indias pass through the aqueduct of Cadiz, without leaving even a trace on the conduits of the Spanish merchants, as can be demonstrated by [comparing] the riches that the Indias have produced, and the poverty of the Spaniards. Upon this point I refer to what Don Miguel de Zavala says in his memorial; and that which the celebrated Macanaz has written on the same subject ought to be printed on plates of gold, or, better, in the hearts of our sovereigns and their ministers of state, in order to cure the wounds of their vassals with the remedies which he proposes. For if all the silver is carried away from the dominionsof España, what more will she have, whether it go by way of Acapulco or by way of Cadiz? I assert that in Cadiz the commerce of the foreigners is greater than that of the Spaniards: the latter (with the exception of some strong business houses, which have been built up in this century) support themselves by being figureheads48for the former, who cannot possess the commerce in their own behalf or in their own persons. This is disclosed by the “Universal dictionary of commerce,” in praising the good Catholic Spaniards in this illicit mode of carrying on business—which is the same as regarding them as being, even if not traitors, at least disobedient to their king. Here is seen the interested motive for [the claim] that the silver should not be exported by way of Acapulco, but that all should go to Cadiz, into the power of the foreigners—who are the ones who, in reality and with hidden hand, have always made opposition to this commerce of Manila.5. Those who carry away the silver from Acapulco are all Spaniards, and the greater part of it accumulates in the empire of China, which has not waged war against us, nor will she do so, with the gains that we allow her; but those who carry away the silver which reaches Cadiz are the foreigners, and it is going to remain with the powers who are harassing and ruining us with our own wealth. Let these points of difference be compared, and decide whether it is not a weak argument, that of the export [of silver from Nueva España], against which somuch clamor has been made by the commerce of Cadiz—or, to speak more correctly, the convenience of the foreigners—and I believe that it will be outweighed, not only by the loss of the royal duties which are yielded to the royal treasury by the silver which goes to Cadiz, but by the injury that is caused to us by the profits which we furnish to the foreigners. Moreover, the silver carried away from Acapulco can yield the same [amount in] duties, in order to avoid the aforesaid loss, if it be considered of much importance—which it is not; for even if two millions of pesos were carried away each year, and the royal treasury deprived of the duties thereon (for which privation there is no necessity), that is not a sum which merits the great opposition, if not bitter hatred, of the commerce of Cadiz for this poor commerce [of Manila].6. The other argument, that of the retardment which our manufactures of España would suffer [in competition] with those of China, is as easily overthrown. It is certain that our factories cannot furnish all the goods which are consumed in our dominions, and that on this account the silks, fabrics, hose, ribbons, etc., of other powers are allowed entrance therein; and what more need is there, in the case of these wares than of those of China, for declaiming against the injury which the latter, but not the former, occasion? There is no further difference except that the Spaniards trade with one class of the goods, and the foreigners with the other. Against the foreigners there is no one to raise objections, as some of them do against our own people; and as in these clamors there is no mention of the name of Englishmen, Frenchmen, Dutch, Swedes, Danes,Irishmen, etc., but [only] of the commerce of Cadiz and of its Spanish traders, the motive for this opposition is better hidden, the injury which they exaggerate is more readily believed, the minds of people are preoccupied with impressions of this sort; and the commerce of Manila, which has neither capital nor fame nor authority, and not so much influence as that of Cadiz, is the one which always suffers, which is permitted [only] with restrictions, and which cannot repair the damages experienced by the merchants of Cadiz without knowing them.7. Before this, I had already mentioned the great amount of silk, both raw and woven, which foreigners bring from China, and that with this they supply their own manufactures, and [likewise] obtain money from us by selling in España the fabrics from Canton as if they came from Paris, Londres, Amsterdam, etc. Is this, or is it not, detrimental to our manufactures? and, if it is, why is not an outcry made against it by the merchants of Cadiz? They will say that it is impossible to prohibit this commerce, while our own manufactures are in so backward a condition; but why will this argument not avail the Spanish merchants of Manila? They will say also that the foreigners introduce into España not fabrics from China, but those of their own manufacture; that, whether it be from one country or from another, the injury to our manufactures is the same. But what cannot be denied is, that the foreigners who obtain so great an amount of silk from China trade it in our dominions, and that we cannot do the same in order to deprive them of those enormous gains. If, then, the company of Spaniards were formed in these islands, they could convey fromChina a great deal of raw silk for our factories, and many special fabrics which would be of as good quality as those of Europa; they could furnish them more cheaply than the foreigners do; and, above all, the profits would remain among the Spaniards. Our commerce would steadily flourish; we would have more ships, to make our dominions safe; the marine service would be increased; and necessarily there would be diminution in the commerce of the foreigners, for which our deluded Spaniards are pleading.8. The royal duties will be the same, if the silk and fabrics of China are carried by our ships of the company, as if they were carried by the foreigners; and even if the kindness of our sovereign makes some reduction [in the duties], in order to favor the said company and subvert those that are hostile to it, other advantages, of greater importance than the aforesaid duties, will result to the crown, in the certain knowledge that, in the present state of things, that is prohibited to the Spaniards which is allowed to foreigners—that is, the introduction of goods from China which are difficult to recognize in España, on account of the facility with which European fabrics are imitated in Canton.9. By allowing to the aforesaid company the importation of Chinese goods into España, while the prohibition to foreigners remains in force, the trading-fleets and galleons will be supplied; and these commodities will be purchased less from foreigners, in order that our own manufactures and commerce may gain some growth.10. All the silk which our company will put on the market will diminish the amount sold by the foreigners;and if they have not a market for this commodity they will take on smaller cargoes of it in China, Cochinchina, Canton, Tonquin, Tripara, Bengala, and Achem, and the said company will find it easier to purchase the silk. Before the nations of Europe carried away the silk from Canton, it could be bought at very low prices; but since they began to carry on this commerce—which was in the year 1685, in which the emperor of China opened his ports to all nations—up to the present time, the prices have risen more than three hundred per cent, as some merchants of this city have informed me.11. In the six years that I have spent in Manila, the [price of] silk has risen every time; and because so much was being sent out of the country [of China], the emperor forbade, under the most rigorous penalties, the exportation of this product—of which an enormous amount is consumed in his empire, where it was already becoming scarce in the year 759—that it might be used by his vassals, whom he regards with the most extraordinary affection.12. Finally, when the merchants of Cadiz become shareholders in the said company there will be no more talk of the export of silver by way of Acapulco, or of the injury to our manufactures from the fabrics of China; or the only ones who will cry out against it will be the foreigners connected with the said commerce [of Cadiz], when their names are made known, for they will not [then] have Spaniards to talk, as the saying is, “through a goose’s mouth.” If it shall be considered expedient (as it seems to me it is) that the aforesaid company may ship freely, and without any restriction, such wares as it shall think best to the kingdom of Nueva España, theroyal duties can be so adjusted that the royal treasury will not suffer a great loss, under the certainty that the goods of the said commercial company will all be duly registered, as also the silver which they bring in return; for its directors will possess no authority for anything except what is according to the rules in the like method of commerce. This legality in the declarations [of goods shipped] will result in great benefit to the aforesaid royal duties, even though these be more moderate than the duties which are exacted from private persons whose greed for gain urges them to convey, and to bring [here], many contraband articles.13. For greater security on this point, it could be so regulated that there would not be the slightest uncertainty, by causing the agents or directors whom it will be necessary to have in this city, to write out the invoices of what they ship, according to the entries in their cash-books, and the same with the silver and the goods that are brought back in return—information of all this being sent from here to the officials at Acapulco, and reciprocally from that port to the officials at this capital, in order that on each side any possible infraction of the law may be known, and those engaged in the commerce be restrained from committing such. This exhibition of invoices and the returns in silver can be compared with the statements which the directors of the company will furnish, in order to ascertain whether the former agree with those which will be contained in the said statements. I take for granted that in the presentation, examination, and approval of these accounts there will be the supervision of some person appointed for that purpose by our sovereign—whoseroyal and benevolent disposition will, it is to be believed, place some capital in the company that I have mentioned, as a foundation for this great work; and in this case it is hardly possible that the least crevice will be found by which the royal duties might suffer loss.14. The nobility of España, from the highest rank down; the guilds of Madrid, who now form a commercial body of much importance; all the merchants of España, the kingdom of Mexico, Peru, and these islands; some foreigners; and many religious communities which have set aside the produce of their funds for pious purposes—all these will, without doubt, become shareholders in the aforesaid company, if they are convinced of the benefit of this commerce, and of the prosperity which will ensue to the Spanish nation; and when the said merchants have their gains by means of these seas assured, and a means of supplying the kingdom of Mexico with a great part of the goods which its people need, without the burden of the royal duties, it is certain that they will not desire to purchase foreign goods, except at such advantage as will prove detrimental to the foreigners.15. It is also evident that the aforesaid company will be able to furnish its commodities at lower prices than the foreign companies do; for it does not have to incur so many expenses in maintaining troops, fortresses, etc., as do the Dutch, English, and French; nor will the costs of the navigation be so great, because the voyage is shorter. Moreover, the purchases will be [made] in China, at the same prices as those of the said foreigners; and consequently, the company transporting its merchandiseto España, and being able to furnish goods at more reasonable prices than the foreigners do, for these reasons the profits will be greater and the losses of the foreigners more certain. By carrying the goods from these islands to Nueva España, the company will hinder the illicit commerce of the said foreigners, who in sailing from India to Europa, and from Europa to their colonies in America, must incur more expense than the said Spaniards, and will not be able to furnish commodities at the same prices as the latter can.16. The English who come to trade in China carry these goods to the ports of Inglaterra, pay there the duties on them, and afterward ship them to various regions—among these to Jamayca, from which island they carry on a very extensive illicit commerce with the Windward Islands; with Nueva España, through Honduras, and by way of the coasts of Campeche and Vera Cruz; and with Peru, through the colony of Sacramento, and various other places. The number of laden vessels which enter Jamaica every year exceeds five hundred; and by this can be estimated the value of the goods which are [thus] disposed of (for all of these are carried into our dominions), and the great amount of silver which they carry away from us, thus causing loss to the royal duties of his Majesty—which, in proportion to the said goods and the money which they produce, would be very large.17. Sabary, whom I have cited, estimates at eight millions of pesos the illicit commerce which the English carry on, from Jamayca alone, with the Spaniards of America; and he states, to the discredit of our nation, that all the ministers and officials,from the highest to the lowest, proceed by agreement to defraud the royal duties, and to become rich at the cost of what they seize from the royal revenues.18. Probably no less is the amount of the fraudulent commerce carried on by the Dutch from Curazao; and much greater is that which is conducted by the two nations (and even by the French) in Puerto Rico, Cartagena, Buenos Ayres, Campeche, Honduras, Portovelo, Caracas, Guayaquil, and the Canarias Islands, and the other ports of the Windward Islands and the two Americas—as also is made known by the same author whom I have already cited, besides what we all know.19. The new and very extensive territory which the aforesaid English now possess in North America, and on the Mexican Gulf as far as the Misisipi, renders this illicit commerce much easier for them by means of that coast, especially by way of the new Santender,49which has a good harbor for vessels of moderate size, and many rivers; it is not far distant by land from Cretaro [i.e., Queretaro] and other rich cities of Nueva España, and by sea it is not far from Vera Cruz. With these great opportunities, the illicit commerce can be pushed to the utmost; for the ambition and covetousness of the trader despises no means which may bring him profit.20. The commodities which the English illegally introduce [into our colonies] must necessarily be cheaper than those which go in our trading-fleets by way of Vera Cruz, for the latter pay many duties,and the former none; and the very English who sell in Cadiz to the Spaniards, paying their duties, sell the same commodities in Nueva España at a lower price than in Cadiz. Therefore, if some efficacious remedy be not applied to these illicit importations, I think that our commerce will be ruined; that our trading-fleets will experience great losses; that the royal duties will be diminished; and that in Nueva España the illicit commerce will reach an even greater extent than in Perù. But it also seems to me that if the commerce from these islands to Acapulco is free to our company the aforesaid losses can be in great part averted, for the following reasons.21. When the foreigners (and especially the English) obtain so much silk, both raw and woven, from China we must believe that they find this commerce profitable, and that the said commodity is very cheap in the said empire, compared with the prices of silks in Europa. The profit is more obvious in the woven goods, because the infinite number of people who inhabit China, and the abundance of workmen in every kind of occupation, cause their manufactures to be exceedingly cheap—as all of us who live in this part of the world know by experience, who every year send to Canton commissions for many articles, because they cost us less than to make the purchases in this city. For instance: The Chinese and the Spaniards carry silver from here to Canton, where it is worth three per cent more; and nevertheless a snuff-box, a salver, and other small articles of silver cost less there than when made here to order—which shows the great saving of [cost in the] manufacture which results from the great abundance of workmen, as I have said.22. This advantage which the English havethrough the commerce of Canton—to which port usually come every year thirteen or fourteen ships—can also be enjoyed by our company; and, buying at the same prices [as the English]; it can sell its goods at lower prices in Nueva España, even after paying the royal duties. For the English are obliged to make longer and more costly voyages, as is that from Canton to Inglaterra, and from there to España and Nueva España; while the Spaniards will sail from here to Acapulco. The former pay royal duties in Inglaterra, and the latter will pay these in Acapulco, saving the expenses of the second voyage which the English make, to their colonies in America. Finally, the Spaniards are not obliged to maintain, at so great expense as do the English, fortified posts and many troops, which are supported by their profits; for these reasons, the latter will not be able to sell their goods at the same price as that of the Spanish company. Consequently, they will not make illicit importations [into the Spanish colonies] of silks and [woolen] fabrics; and even those of their linen goads (which are most to be dreaded) can be diminished with [our importations of] the light linen goods of China [liencesillo] (which are used in Nueva España), with “elephants” and other goods from the coast, and, in due time, with the cotton cloths which will be woven in these islands. Here there is abundance of cotton, and of people for its cultivation and manufacture—especially if some masters in this art come from España, or, in case that fail, from the Coromandel or the Malabar coast; and if among the Indians be introduced the spinning-wheels which are already in use in the manufactures of España.23. From all these arguments it will be possibleto conclude whether they are as well adapted to free commerce [of these islands] with the kingdom of Peru, and to that which the two Americas can mutually and reciprocally conduct between each other, in order that all the vassals may have a share in the extension of the commerce which hitherto has been prohibited to them; that the products of all the provinces may be increased, by the market which will be provided for them; that the Southern [i.e., Pacific] coasts of the said Americas may have an abundance of vessels; that they may mutually aid and defend each other from enemies; that by this means all our dominions remote from España may be more securely preserved; that our silver may have wide circulation among the Spaniards, who, occupied in this lawful traffic, will not expose their money to the risks of the illicit commerce; that the commerce of the foreigners may be diminished, without the least loss to the royal exchequer in the duties from them; and, in fine, that with the gains [from this commerce], and with the decreased exportation of silver to the foreign kingdoms of Europa, the prosperity of our monarchy may begin, and it may come to be the most worthy of respect in all the world, with the extension of its commerce—which is the sole and only means of attaining success; for no other means has been found more effectual, by either ancient or modern geniuses.
Chapter Fifth: Of the extension which the commerce of the aforesaid company can enjoy
1–3. [Viana makes remonstrance against “the limitations and restrictions with which the commerceof the Spaniards is established.” These only enable foreigners to compete with them to greater advantage, and increase the gains of foreign traders. He adduces the examples of other nations in support of his position that commerce ought to be extended and freed from restrictions, as far as possible; and complains that Spaniards only are forbidden to trade with each other, in the colonies of that monarchy. (Section 3.) “The argument for this is apparently founded on the exportation of silver, and on the opposition made by the merchants of Cadiz, who are misled by foreigners, and that of the officials at Acapulco, who find their advantage in the said limitation. Those merchants are always inveighing against the injuries that result to their trade, and the check to our [Spanish] manufactures, with which arguments they have always tried to bring about the ruin of this [Philippine] commerce; but I will see if I cannot overthrow these arguments.”]4. All the silver that is coined in the dominions of España comes to a halt in foreign kingdoms, among our greatest enemies. The treasures of the Indias pass through the aqueduct of Cadiz, without leaving even a trace on the conduits of the Spanish merchants, as can be demonstrated by [comparing] the riches that the Indias have produced, and the poverty of the Spaniards. Upon this point I refer to what Don Miguel de Zavala says in his memorial; and that which the celebrated Macanaz has written on the same subject ought to be printed on plates of gold, or, better, in the hearts of our sovereigns and their ministers of state, in order to cure the wounds of their vassals with the remedies which he proposes. For if all the silver is carried away from the dominionsof España, what more will she have, whether it go by way of Acapulco or by way of Cadiz? I assert that in Cadiz the commerce of the foreigners is greater than that of the Spaniards: the latter (with the exception of some strong business houses, which have been built up in this century) support themselves by being figureheads48for the former, who cannot possess the commerce in their own behalf or in their own persons. This is disclosed by the “Universal dictionary of commerce,” in praising the good Catholic Spaniards in this illicit mode of carrying on business—which is the same as regarding them as being, even if not traitors, at least disobedient to their king. Here is seen the interested motive for [the claim] that the silver should not be exported by way of Acapulco, but that all should go to Cadiz, into the power of the foreigners—who are the ones who, in reality and with hidden hand, have always made opposition to this commerce of Manila.5. Those who carry away the silver from Acapulco are all Spaniards, and the greater part of it accumulates in the empire of China, which has not waged war against us, nor will she do so, with the gains that we allow her; but those who carry away the silver which reaches Cadiz are the foreigners, and it is going to remain with the powers who are harassing and ruining us with our own wealth. Let these points of difference be compared, and decide whether it is not a weak argument, that of the export [of silver from Nueva España], against which somuch clamor has been made by the commerce of Cadiz—or, to speak more correctly, the convenience of the foreigners—and I believe that it will be outweighed, not only by the loss of the royal duties which are yielded to the royal treasury by the silver which goes to Cadiz, but by the injury that is caused to us by the profits which we furnish to the foreigners. Moreover, the silver carried away from Acapulco can yield the same [amount in] duties, in order to avoid the aforesaid loss, if it be considered of much importance—which it is not; for even if two millions of pesos were carried away each year, and the royal treasury deprived of the duties thereon (for which privation there is no necessity), that is not a sum which merits the great opposition, if not bitter hatred, of the commerce of Cadiz for this poor commerce [of Manila].6. The other argument, that of the retardment which our manufactures of España would suffer [in competition] with those of China, is as easily overthrown. It is certain that our factories cannot furnish all the goods which are consumed in our dominions, and that on this account the silks, fabrics, hose, ribbons, etc., of other powers are allowed entrance therein; and what more need is there, in the case of these wares than of those of China, for declaiming against the injury which the latter, but not the former, occasion? There is no further difference except that the Spaniards trade with one class of the goods, and the foreigners with the other. Against the foreigners there is no one to raise objections, as some of them do against our own people; and as in these clamors there is no mention of the name of Englishmen, Frenchmen, Dutch, Swedes, Danes,Irishmen, etc., but [only] of the commerce of Cadiz and of its Spanish traders, the motive for this opposition is better hidden, the injury which they exaggerate is more readily believed, the minds of people are preoccupied with impressions of this sort; and the commerce of Manila, which has neither capital nor fame nor authority, and not so much influence as that of Cadiz, is the one which always suffers, which is permitted [only] with restrictions, and which cannot repair the damages experienced by the merchants of Cadiz without knowing them.7. Before this, I had already mentioned the great amount of silk, both raw and woven, which foreigners bring from China, and that with this they supply their own manufactures, and [likewise] obtain money from us by selling in España the fabrics from Canton as if they came from Paris, Londres, Amsterdam, etc. Is this, or is it not, detrimental to our manufactures? and, if it is, why is not an outcry made against it by the merchants of Cadiz? They will say that it is impossible to prohibit this commerce, while our own manufactures are in so backward a condition; but why will this argument not avail the Spanish merchants of Manila? They will say also that the foreigners introduce into España not fabrics from China, but those of their own manufacture; that, whether it be from one country or from another, the injury to our manufactures is the same. But what cannot be denied is, that the foreigners who obtain so great an amount of silk from China trade it in our dominions, and that we cannot do the same in order to deprive them of those enormous gains. If, then, the company of Spaniards were formed in these islands, they could convey fromChina a great deal of raw silk for our factories, and many special fabrics which would be of as good quality as those of Europa; they could furnish them more cheaply than the foreigners do; and, above all, the profits would remain among the Spaniards. Our commerce would steadily flourish; we would have more ships, to make our dominions safe; the marine service would be increased; and necessarily there would be diminution in the commerce of the foreigners, for which our deluded Spaniards are pleading.8. The royal duties will be the same, if the silk and fabrics of China are carried by our ships of the company, as if they were carried by the foreigners; and even if the kindness of our sovereign makes some reduction [in the duties], in order to favor the said company and subvert those that are hostile to it, other advantages, of greater importance than the aforesaid duties, will result to the crown, in the certain knowledge that, in the present state of things, that is prohibited to the Spaniards which is allowed to foreigners—that is, the introduction of goods from China which are difficult to recognize in España, on account of the facility with which European fabrics are imitated in Canton.9. By allowing to the aforesaid company the importation of Chinese goods into España, while the prohibition to foreigners remains in force, the trading-fleets and galleons will be supplied; and these commodities will be purchased less from foreigners, in order that our own manufactures and commerce may gain some growth.10. All the silk which our company will put on the market will diminish the amount sold by the foreigners;and if they have not a market for this commodity they will take on smaller cargoes of it in China, Cochinchina, Canton, Tonquin, Tripara, Bengala, and Achem, and the said company will find it easier to purchase the silk. Before the nations of Europe carried away the silk from Canton, it could be bought at very low prices; but since they began to carry on this commerce—which was in the year 1685, in which the emperor of China opened his ports to all nations—up to the present time, the prices have risen more than three hundred per cent, as some merchants of this city have informed me.11. In the six years that I have spent in Manila, the [price of] silk has risen every time; and because so much was being sent out of the country [of China], the emperor forbade, under the most rigorous penalties, the exportation of this product—of which an enormous amount is consumed in his empire, where it was already becoming scarce in the year 759—that it might be used by his vassals, whom he regards with the most extraordinary affection.12. Finally, when the merchants of Cadiz become shareholders in the said company there will be no more talk of the export of silver by way of Acapulco, or of the injury to our manufactures from the fabrics of China; or the only ones who will cry out against it will be the foreigners connected with the said commerce [of Cadiz], when their names are made known, for they will not [then] have Spaniards to talk, as the saying is, “through a goose’s mouth.” If it shall be considered expedient (as it seems to me it is) that the aforesaid company may ship freely, and without any restriction, such wares as it shall think best to the kingdom of Nueva España, theroyal duties can be so adjusted that the royal treasury will not suffer a great loss, under the certainty that the goods of the said commercial company will all be duly registered, as also the silver which they bring in return; for its directors will possess no authority for anything except what is according to the rules in the like method of commerce. This legality in the declarations [of goods shipped] will result in great benefit to the aforesaid royal duties, even though these be more moderate than the duties which are exacted from private persons whose greed for gain urges them to convey, and to bring [here], many contraband articles.13. For greater security on this point, it could be so regulated that there would not be the slightest uncertainty, by causing the agents or directors whom it will be necessary to have in this city, to write out the invoices of what they ship, according to the entries in their cash-books, and the same with the silver and the goods that are brought back in return—information of all this being sent from here to the officials at Acapulco, and reciprocally from that port to the officials at this capital, in order that on each side any possible infraction of the law may be known, and those engaged in the commerce be restrained from committing such. This exhibition of invoices and the returns in silver can be compared with the statements which the directors of the company will furnish, in order to ascertain whether the former agree with those which will be contained in the said statements. I take for granted that in the presentation, examination, and approval of these accounts there will be the supervision of some person appointed for that purpose by our sovereign—whoseroyal and benevolent disposition will, it is to be believed, place some capital in the company that I have mentioned, as a foundation for this great work; and in this case it is hardly possible that the least crevice will be found by which the royal duties might suffer loss.14. The nobility of España, from the highest rank down; the guilds of Madrid, who now form a commercial body of much importance; all the merchants of España, the kingdom of Mexico, Peru, and these islands; some foreigners; and many religious communities which have set aside the produce of their funds for pious purposes—all these will, without doubt, become shareholders in the aforesaid company, if they are convinced of the benefit of this commerce, and of the prosperity which will ensue to the Spanish nation; and when the said merchants have their gains by means of these seas assured, and a means of supplying the kingdom of Mexico with a great part of the goods which its people need, without the burden of the royal duties, it is certain that they will not desire to purchase foreign goods, except at such advantage as will prove detrimental to the foreigners.15. It is also evident that the aforesaid company will be able to furnish its commodities at lower prices than the foreign companies do; for it does not have to incur so many expenses in maintaining troops, fortresses, etc., as do the Dutch, English, and French; nor will the costs of the navigation be so great, because the voyage is shorter. Moreover, the purchases will be [made] in China, at the same prices as those of the said foreigners; and consequently, the company transporting its merchandiseto España, and being able to furnish goods at more reasonable prices than the foreigners do, for these reasons the profits will be greater and the losses of the foreigners more certain. By carrying the goods from these islands to Nueva España, the company will hinder the illicit commerce of the said foreigners, who in sailing from India to Europa, and from Europa to their colonies in America, must incur more expense than the said Spaniards, and will not be able to furnish commodities at the same prices as the latter can.16. The English who come to trade in China carry these goods to the ports of Inglaterra, pay there the duties on them, and afterward ship them to various regions—among these to Jamayca, from which island they carry on a very extensive illicit commerce with the Windward Islands; with Nueva España, through Honduras, and by way of the coasts of Campeche and Vera Cruz; and with Peru, through the colony of Sacramento, and various other places. The number of laden vessels which enter Jamaica every year exceeds five hundred; and by this can be estimated the value of the goods which are [thus] disposed of (for all of these are carried into our dominions), and the great amount of silver which they carry away from us, thus causing loss to the royal duties of his Majesty—which, in proportion to the said goods and the money which they produce, would be very large.17. Sabary, whom I have cited, estimates at eight millions of pesos the illicit commerce which the English carry on, from Jamayca alone, with the Spaniards of America; and he states, to the discredit of our nation, that all the ministers and officials,from the highest to the lowest, proceed by agreement to defraud the royal duties, and to become rich at the cost of what they seize from the royal revenues.18. Probably no less is the amount of the fraudulent commerce carried on by the Dutch from Curazao; and much greater is that which is conducted by the two nations (and even by the French) in Puerto Rico, Cartagena, Buenos Ayres, Campeche, Honduras, Portovelo, Caracas, Guayaquil, and the Canarias Islands, and the other ports of the Windward Islands and the two Americas—as also is made known by the same author whom I have already cited, besides what we all know.19. The new and very extensive territory which the aforesaid English now possess in North America, and on the Mexican Gulf as far as the Misisipi, renders this illicit commerce much easier for them by means of that coast, especially by way of the new Santender,49which has a good harbor for vessels of moderate size, and many rivers; it is not far distant by land from Cretaro [i.e., Queretaro] and other rich cities of Nueva España, and by sea it is not far from Vera Cruz. With these great opportunities, the illicit commerce can be pushed to the utmost; for the ambition and covetousness of the trader despises no means which may bring him profit.20. The commodities which the English illegally introduce [into our colonies] must necessarily be cheaper than those which go in our trading-fleets by way of Vera Cruz, for the latter pay many duties,and the former none; and the very English who sell in Cadiz to the Spaniards, paying their duties, sell the same commodities in Nueva España at a lower price than in Cadiz. Therefore, if some efficacious remedy be not applied to these illicit importations, I think that our commerce will be ruined; that our trading-fleets will experience great losses; that the royal duties will be diminished; and that in Nueva España the illicit commerce will reach an even greater extent than in Perù. But it also seems to me that if the commerce from these islands to Acapulco is free to our company the aforesaid losses can be in great part averted, for the following reasons.21. When the foreigners (and especially the English) obtain so much silk, both raw and woven, from China we must believe that they find this commerce profitable, and that the said commodity is very cheap in the said empire, compared with the prices of silks in Europa. The profit is more obvious in the woven goods, because the infinite number of people who inhabit China, and the abundance of workmen in every kind of occupation, cause their manufactures to be exceedingly cheap—as all of us who live in this part of the world know by experience, who every year send to Canton commissions for many articles, because they cost us less than to make the purchases in this city. For instance: The Chinese and the Spaniards carry silver from here to Canton, where it is worth three per cent more; and nevertheless a snuff-box, a salver, and other small articles of silver cost less there than when made here to order—which shows the great saving of [cost in the] manufacture which results from the great abundance of workmen, as I have said.22. This advantage which the English havethrough the commerce of Canton—to which port usually come every year thirteen or fourteen ships—can also be enjoyed by our company; and, buying at the same prices [as the English]; it can sell its goods at lower prices in Nueva España, even after paying the royal duties. For the English are obliged to make longer and more costly voyages, as is that from Canton to Inglaterra, and from there to España and Nueva España; while the Spaniards will sail from here to Acapulco. The former pay royal duties in Inglaterra, and the latter will pay these in Acapulco, saving the expenses of the second voyage which the English make, to their colonies in America. Finally, the Spaniards are not obliged to maintain, at so great expense as do the English, fortified posts and many troops, which are supported by their profits; for these reasons, the latter will not be able to sell their goods at the same price as that of the Spanish company. Consequently, they will not make illicit importations [into the Spanish colonies] of silks and [woolen] fabrics; and even those of their linen goads (which are most to be dreaded) can be diminished with [our importations of] the light linen goods of China [liencesillo] (which are used in Nueva España), with “elephants” and other goods from the coast, and, in due time, with the cotton cloths which will be woven in these islands. Here there is abundance of cotton, and of people for its cultivation and manufacture—especially if some masters in this art come from España, or, in case that fail, from the Coromandel or the Malabar coast; and if among the Indians be introduced the spinning-wheels which are already in use in the manufactures of España.23. From all these arguments it will be possibleto conclude whether they are as well adapted to free commerce [of these islands] with the kingdom of Peru, and to that which the two Americas can mutually and reciprocally conduct between each other, in order that all the vassals may have a share in the extension of the commerce which hitherto has been prohibited to them; that the products of all the provinces may be increased, by the market which will be provided for them; that the Southern [i.e., Pacific] coasts of the said Americas may have an abundance of vessels; that they may mutually aid and defend each other from enemies; that by this means all our dominions remote from España may be more securely preserved; that our silver may have wide circulation among the Spaniards, who, occupied in this lawful traffic, will not expose their money to the risks of the illicit commerce; that the commerce of the foreigners may be diminished, without the least loss to the royal exchequer in the duties from them; and, in fine, that with the gains [from this commerce], and with the decreased exportation of silver to the foreign kingdoms of Europa, the prosperity of our monarchy may begin, and it may come to be the most worthy of respect in all the world, with the extension of its commerce—which is the sole and only means of attaining success; for no other means has been found more effectual, by either ancient or modern geniuses.
1–3. [Viana makes remonstrance against “the limitations and restrictions with which the commerceof the Spaniards is established.” These only enable foreigners to compete with them to greater advantage, and increase the gains of foreign traders. He adduces the examples of other nations in support of his position that commerce ought to be extended and freed from restrictions, as far as possible; and complains that Spaniards only are forbidden to trade with each other, in the colonies of that monarchy. (Section 3.) “The argument for this is apparently founded on the exportation of silver, and on the opposition made by the merchants of Cadiz, who are misled by foreigners, and that of the officials at Acapulco, who find their advantage in the said limitation. Those merchants are always inveighing against the injuries that result to their trade, and the check to our [Spanish] manufactures, with which arguments they have always tried to bring about the ruin of this [Philippine] commerce; but I will see if I cannot overthrow these arguments.”]
4. All the silver that is coined in the dominions of España comes to a halt in foreign kingdoms, among our greatest enemies. The treasures of the Indias pass through the aqueduct of Cadiz, without leaving even a trace on the conduits of the Spanish merchants, as can be demonstrated by [comparing] the riches that the Indias have produced, and the poverty of the Spaniards. Upon this point I refer to what Don Miguel de Zavala says in his memorial; and that which the celebrated Macanaz has written on the same subject ought to be printed on plates of gold, or, better, in the hearts of our sovereigns and their ministers of state, in order to cure the wounds of their vassals with the remedies which he proposes. For if all the silver is carried away from the dominionsof España, what more will she have, whether it go by way of Acapulco or by way of Cadiz? I assert that in Cadiz the commerce of the foreigners is greater than that of the Spaniards: the latter (with the exception of some strong business houses, which have been built up in this century) support themselves by being figureheads48for the former, who cannot possess the commerce in their own behalf or in their own persons. This is disclosed by the “Universal dictionary of commerce,” in praising the good Catholic Spaniards in this illicit mode of carrying on business—which is the same as regarding them as being, even if not traitors, at least disobedient to their king. Here is seen the interested motive for [the claim] that the silver should not be exported by way of Acapulco, but that all should go to Cadiz, into the power of the foreigners—who are the ones who, in reality and with hidden hand, have always made opposition to this commerce of Manila.
5. Those who carry away the silver from Acapulco are all Spaniards, and the greater part of it accumulates in the empire of China, which has not waged war against us, nor will she do so, with the gains that we allow her; but those who carry away the silver which reaches Cadiz are the foreigners, and it is going to remain with the powers who are harassing and ruining us with our own wealth. Let these points of difference be compared, and decide whether it is not a weak argument, that of the export [of silver from Nueva España], against which somuch clamor has been made by the commerce of Cadiz—or, to speak more correctly, the convenience of the foreigners—and I believe that it will be outweighed, not only by the loss of the royal duties which are yielded to the royal treasury by the silver which goes to Cadiz, but by the injury that is caused to us by the profits which we furnish to the foreigners. Moreover, the silver carried away from Acapulco can yield the same [amount in] duties, in order to avoid the aforesaid loss, if it be considered of much importance—which it is not; for even if two millions of pesos were carried away each year, and the royal treasury deprived of the duties thereon (for which privation there is no necessity), that is not a sum which merits the great opposition, if not bitter hatred, of the commerce of Cadiz for this poor commerce [of Manila].
6. The other argument, that of the retardment which our manufactures of España would suffer [in competition] with those of China, is as easily overthrown. It is certain that our factories cannot furnish all the goods which are consumed in our dominions, and that on this account the silks, fabrics, hose, ribbons, etc., of other powers are allowed entrance therein; and what more need is there, in the case of these wares than of those of China, for declaiming against the injury which the latter, but not the former, occasion? There is no further difference except that the Spaniards trade with one class of the goods, and the foreigners with the other. Against the foreigners there is no one to raise objections, as some of them do against our own people; and as in these clamors there is no mention of the name of Englishmen, Frenchmen, Dutch, Swedes, Danes,Irishmen, etc., but [only] of the commerce of Cadiz and of its Spanish traders, the motive for this opposition is better hidden, the injury which they exaggerate is more readily believed, the minds of people are preoccupied with impressions of this sort; and the commerce of Manila, which has neither capital nor fame nor authority, and not so much influence as that of Cadiz, is the one which always suffers, which is permitted [only] with restrictions, and which cannot repair the damages experienced by the merchants of Cadiz without knowing them.
7. Before this, I had already mentioned the great amount of silk, both raw and woven, which foreigners bring from China, and that with this they supply their own manufactures, and [likewise] obtain money from us by selling in España the fabrics from Canton as if they came from Paris, Londres, Amsterdam, etc. Is this, or is it not, detrimental to our manufactures? and, if it is, why is not an outcry made against it by the merchants of Cadiz? They will say that it is impossible to prohibit this commerce, while our own manufactures are in so backward a condition; but why will this argument not avail the Spanish merchants of Manila? They will say also that the foreigners introduce into España not fabrics from China, but those of their own manufacture; that, whether it be from one country or from another, the injury to our manufactures is the same. But what cannot be denied is, that the foreigners who obtain so great an amount of silk from China trade it in our dominions, and that we cannot do the same in order to deprive them of those enormous gains. If, then, the company of Spaniards were formed in these islands, they could convey fromChina a great deal of raw silk for our factories, and many special fabrics which would be of as good quality as those of Europa; they could furnish them more cheaply than the foreigners do; and, above all, the profits would remain among the Spaniards. Our commerce would steadily flourish; we would have more ships, to make our dominions safe; the marine service would be increased; and necessarily there would be diminution in the commerce of the foreigners, for which our deluded Spaniards are pleading.
8. The royal duties will be the same, if the silk and fabrics of China are carried by our ships of the company, as if they were carried by the foreigners; and even if the kindness of our sovereign makes some reduction [in the duties], in order to favor the said company and subvert those that are hostile to it, other advantages, of greater importance than the aforesaid duties, will result to the crown, in the certain knowledge that, in the present state of things, that is prohibited to the Spaniards which is allowed to foreigners—that is, the introduction of goods from China which are difficult to recognize in España, on account of the facility with which European fabrics are imitated in Canton.
9. By allowing to the aforesaid company the importation of Chinese goods into España, while the prohibition to foreigners remains in force, the trading-fleets and galleons will be supplied; and these commodities will be purchased less from foreigners, in order that our own manufactures and commerce may gain some growth.
10. All the silk which our company will put on the market will diminish the amount sold by the foreigners;and if they have not a market for this commodity they will take on smaller cargoes of it in China, Cochinchina, Canton, Tonquin, Tripara, Bengala, and Achem, and the said company will find it easier to purchase the silk. Before the nations of Europe carried away the silk from Canton, it could be bought at very low prices; but since they began to carry on this commerce—which was in the year 1685, in which the emperor of China opened his ports to all nations—up to the present time, the prices have risen more than three hundred per cent, as some merchants of this city have informed me.
11. In the six years that I have spent in Manila, the [price of] silk has risen every time; and because so much was being sent out of the country [of China], the emperor forbade, under the most rigorous penalties, the exportation of this product—of which an enormous amount is consumed in his empire, where it was already becoming scarce in the year 759—that it might be used by his vassals, whom he regards with the most extraordinary affection.
12. Finally, when the merchants of Cadiz become shareholders in the said company there will be no more talk of the export of silver by way of Acapulco, or of the injury to our manufactures from the fabrics of China; or the only ones who will cry out against it will be the foreigners connected with the said commerce [of Cadiz], when their names are made known, for they will not [then] have Spaniards to talk, as the saying is, “through a goose’s mouth.” If it shall be considered expedient (as it seems to me it is) that the aforesaid company may ship freely, and without any restriction, such wares as it shall think best to the kingdom of Nueva España, theroyal duties can be so adjusted that the royal treasury will not suffer a great loss, under the certainty that the goods of the said commercial company will all be duly registered, as also the silver which they bring in return; for its directors will possess no authority for anything except what is according to the rules in the like method of commerce. This legality in the declarations [of goods shipped] will result in great benefit to the aforesaid royal duties, even though these be more moderate than the duties which are exacted from private persons whose greed for gain urges them to convey, and to bring [here], many contraband articles.
13. For greater security on this point, it could be so regulated that there would not be the slightest uncertainty, by causing the agents or directors whom it will be necessary to have in this city, to write out the invoices of what they ship, according to the entries in their cash-books, and the same with the silver and the goods that are brought back in return—information of all this being sent from here to the officials at Acapulco, and reciprocally from that port to the officials at this capital, in order that on each side any possible infraction of the law may be known, and those engaged in the commerce be restrained from committing such. This exhibition of invoices and the returns in silver can be compared with the statements which the directors of the company will furnish, in order to ascertain whether the former agree with those which will be contained in the said statements. I take for granted that in the presentation, examination, and approval of these accounts there will be the supervision of some person appointed for that purpose by our sovereign—whoseroyal and benevolent disposition will, it is to be believed, place some capital in the company that I have mentioned, as a foundation for this great work; and in this case it is hardly possible that the least crevice will be found by which the royal duties might suffer loss.
14. The nobility of España, from the highest rank down; the guilds of Madrid, who now form a commercial body of much importance; all the merchants of España, the kingdom of Mexico, Peru, and these islands; some foreigners; and many religious communities which have set aside the produce of their funds for pious purposes—all these will, without doubt, become shareholders in the aforesaid company, if they are convinced of the benefit of this commerce, and of the prosperity which will ensue to the Spanish nation; and when the said merchants have their gains by means of these seas assured, and a means of supplying the kingdom of Mexico with a great part of the goods which its people need, without the burden of the royal duties, it is certain that they will not desire to purchase foreign goods, except at such advantage as will prove detrimental to the foreigners.
15. It is also evident that the aforesaid company will be able to furnish its commodities at lower prices than the foreign companies do; for it does not have to incur so many expenses in maintaining troops, fortresses, etc., as do the Dutch, English, and French; nor will the costs of the navigation be so great, because the voyage is shorter. Moreover, the purchases will be [made] in China, at the same prices as those of the said foreigners; and consequently, the company transporting its merchandiseto España, and being able to furnish goods at more reasonable prices than the foreigners do, for these reasons the profits will be greater and the losses of the foreigners more certain. By carrying the goods from these islands to Nueva España, the company will hinder the illicit commerce of the said foreigners, who in sailing from India to Europa, and from Europa to their colonies in America, must incur more expense than the said Spaniards, and will not be able to furnish commodities at the same prices as the latter can.
16. The English who come to trade in China carry these goods to the ports of Inglaterra, pay there the duties on them, and afterward ship them to various regions—among these to Jamayca, from which island they carry on a very extensive illicit commerce with the Windward Islands; with Nueva España, through Honduras, and by way of the coasts of Campeche and Vera Cruz; and with Peru, through the colony of Sacramento, and various other places. The number of laden vessels which enter Jamaica every year exceeds five hundred; and by this can be estimated the value of the goods which are [thus] disposed of (for all of these are carried into our dominions), and the great amount of silver which they carry away from us, thus causing loss to the royal duties of his Majesty—which, in proportion to the said goods and the money which they produce, would be very large.
17. Sabary, whom I have cited, estimates at eight millions of pesos the illicit commerce which the English carry on, from Jamayca alone, with the Spaniards of America; and he states, to the discredit of our nation, that all the ministers and officials,from the highest to the lowest, proceed by agreement to defraud the royal duties, and to become rich at the cost of what they seize from the royal revenues.
18. Probably no less is the amount of the fraudulent commerce carried on by the Dutch from Curazao; and much greater is that which is conducted by the two nations (and even by the French) in Puerto Rico, Cartagena, Buenos Ayres, Campeche, Honduras, Portovelo, Caracas, Guayaquil, and the Canarias Islands, and the other ports of the Windward Islands and the two Americas—as also is made known by the same author whom I have already cited, besides what we all know.
19. The new and very extensive territory which the aforesaid English now possess in North America, and on the Mexican Gulf as far as the Misisipi, renders this illicit commerce much easier for them by means of that coast, especially by way of the new Santender,49which has a good harbor for vessels of moderate size, and many rivers; it is not far distant by land from Cretaro [i.e., Queretaro] and other rich cities of Nueva España, and by sea it is not far from Vera Cruz. With these great opportunities, the illicit commerce can be pushed to the utmost; for the ambition and covetousness of the trader despises no means which may bring him profit.
20. The commodities which the English illegally introduce [into our colonies] must necessarily be cheaper than those which go in our trading-fleets by way of Vera Cruz, for the latter pay many duties,and the former none; and the very English who sell in Cadiz to the Spaniards, paying their duties, sell the same commodities in Nueva España at a lower price than in Cadiz. Therefore, if some efficacious remedy be not applied to these illicit importations, I think that our commerce will be ruined; that our trading-fleets will experience great losses; that the royal duties will be diminished; and that in Nueva España the illicit commerce will reach an even greater extent than in Perù. But it also seems to me that if the commerce from these islands to Acapulco is free to our company the aforesaid losses can be in great part averted, for the following reasons.
21. When the foreigners (and especially the English) obtain so much silk, both raw and woven, from China we must believe that they find this commerce profitable, and that the said commodity is very cheap in the said empire, compared with the prices of silks in Europa. The profit is more obvious in the woven goods, because the infinite number of people who inhabit China, and the abundance of workmen in every kind of occupation, cause their manufactures to be exceedingly cheap—as all of us who live in this part of the world know by experience, who every year send to Canton commissions for many articles, because they cost us less than to make the purchases in this city. For instance: The Chinese and the Spaniards carry silver from here to Canton, where it is worth three per cent more; and nevertheless a snuff-box, a salver, and other small articles of silver cost less there than when made here to order—which shows the great saving of [cost in the] manufacture which results from the great abundance of workmen, as I have said.
22. This advantage which the English havethrough the commerce of Canton—to which port usually come every year thirteen or fourteen ships—can also be enjoyed by our company; and, buying at the same prices [as the English]; it can sell its goods at lower prices in Nueva España, even after paying the royal duties. For the English are obliged to make longer and more costly voyages, as is that from Canton to Inglaterra, and from there to España and Nueva España; while the Spaniards will sail from here to Acapulco. The former pay royal duties in Inglaterra, and the latter will pay these in Acapulco, saving the expenses of the second voyage which the English make, to their colonies in America. Finally, the Spaniards are not obliged to maintain, at so great expense as do the English, fortified posts and many troops, which are supported by their profits; for these reasons, the latter will not be able to sell their goods at the same price as that of the Spanish company. Consequently, they will not make illicit importations [into the Spanish colonies] of silks and [woolen] fabrics; and even those of their linen goads (which are most to be dreaded) can be diminished with [our importations of] the light linen goods of China [liencesillo] (which are used in Nueva España), with “elephants” and other goods from the coast, and, in due time, with the cotton cloths which will be woven in these islands. Here there is abundance of cotton, and of people for its cultivation and manufacture—especially if some masters in this art come from España, or, in case that fail, from the Coromandel or the Malabar coast; and if among the Indians be introduced the spinning-wheels which are already in use in the manufactures of España.
23. From all these arguments it will be possibleto conclude whether they are as well adapted to free commerce [of these islands] with the kingdom of Peru, and to that which the two Americas can mutually and reciprocally conduct between each other, in order that all the vassals may have a share in the extension of the commerce which hitherto has been prohibited to them; that the products of all the provinces may be increased, by the market which will be provided for them; that the Southern [i.e., Pacific] coasts of the said Americas may have an abundance of vessels; that they may mutually aid and defend each other from enemies; that by this means all our dominions remote from España may be more securely preserved; that our silver may have wide circulation among the Spaniards, who, occupied in this lawful traffic, will not expose their money to the risks of the illicit commerce; that the commerce of the foreigners may be diminished, without the least loss to the royal exchequer in the duties from them; and, in fine, that with the gains [from this commerce], and with the decreased exportation of silver to the foreign kingdoms of Europa, the prosperity of our monarchy may begin, and it may come to be the most worthy of respect in all the world, with the extension of its commerce—which is the sole and only means of attaining success; for no other means has been found more effectual, by either ancient or modern geniuses.