Chapter VIII: Part 8

"For the future, your Majesty commands that the merchants refrain from transgressing in what is prohibited; but the very nature of the subject leaves some openings that cannot be repaired, through which the greed for gain thrusts itself, not only among the officials but in the merchants; and thus the most sagacious understanding does not perceive or suspect them, and thus does not correct them. I will specify some cases to your Majesty which will make this point clear.

"Your Majesty commands in law 12 on 'Navigation and commerce of Philipinas,' in the compilation of laws of the Indias: 'That those who desire to go to Philipinas must give bonds, for their residing in the islands for at least eight years; and the viceroy shall allow them to carry with them their wealth in money, besides the amount of the general permission.' In virtue of this law, cunning has discovered two safe and sure ways for perpetuating the commerce of this kingdom with those islands: the first, in the permission [here given] for carrying the money; the second, in [the assumption of] citizenship. For experience has shown that, on pretext of [maintaining] confidence and friendly relations, the merchants here send out one or more persons, the profits of them all being contracted for with these persons; the latter ask permission from the government, and display 50,000 to 70,000 pesos as their own, which actually are amounts entrusted to them by many persons. Under this supposition, they go over to Manila with the title of citizens, trade with that money, and regularly ship, as their own, the goods consigned to the citizens here [in Mexico], to whom belonged the money [carried by these agents]; and by remittances of silver and shipments of goods they continue to perpetuate that commerce--in such manner that, if efforts are made to learn who is the shipper, it is [always ostensibly] a citizen of Manila, in whom it is taken for granted that there is no fraud; and if the names of the consignees are ascertained, answer is made that they are his agents. But the latter are not agents, but owners, and the former are not owners, but agents; and in this way the order of things is reversed, by changing their names and the titles to property, and the profits remaining in the hands of those who are under prohibition.

"From this difficulty, authorized by the permission of the law, follow others. For, granting that these agents, even though they have actual residence in Manila, stay there not with the intention of becoming permanent settlers, but of living there only during the agencies which are patronized by the citizens of this kingdom, and that in virtue of the royal orders of your Majesty they are reputed as citizens: it [yet] follows that to them, as citizens, is assigned lading space in the ships, in accordance with the law, and with the royal decree of the year 1702; and thus they have the greatest facility for continuing in their trading, because no hindrance is offered to their shipments. They stand in the way of those who are really citizens and natives of those islands, whose remonstrances occasioned your Majesty's prohibition; but as this interference goes on under the shelter of so plausible a reason, the latter have no way in which to oppose it, nor can they avoid suffering from it; and what [the authorities] there decide to belong to the parties interested is, strictly speaking, what has been entrusted to them by the citizens of Mexico.

"From this result two other and irreparable losses to the commerce of Manila. The first is, that for the 300,000 pesos of the permission there is a million of pesos to be invested [therein]; and [these agents], in order to make the most of their remittances [from Mexico], and to secure larger profits on their commissions, pay for goods at excessive prices, and are preferred in the sales. This is what cannot be done with their own money by the real citizens of those islands, because they have not [sufficient] capital remaining to permit adequate gains with high-priced stuffs and enormous costs [for transportation]--especially when these [citizens] regularly sell [their goods] at Acapulco (whither they go exposed to loss of their capital), in order to have the relief of bringing back their wealth in the same vessel with themselves; and the others [i.e., the agents of Mexicans] ship to Mexico their goods, the owners of which store them away in order that time may give them value, for they do not need to sell these goods at once in order to continue the remittances of money [to Filipinas]. Thus, the former must necessarily lose, or at least not gain; and the latter must gain, or at least not lose.

"The second [injury to commerce]: although no more than the 300,000 pesos of the permission, in goods valued in the islands, can be shipped, experience has shown us that much larger amounts come thence; and the reason is, because the register contains the appraisements of the goods so exceedingly low that it is impossible, unless fraud intervene, that they could be purchased at first hand at those prices--but with the trick that all the reduction of price thus made on the goods is squeezed besides into the [amount of the] permission, and the real account comes separately to the owners. As a result, the greater part of the space on the ship is occupied by those agents, although with the pretense that they produce but small amounts; and all this springs from that original root of allowing citizenship, and the transportation of their silver, to persons who, without the intention of becoming settlers, continue there so long as it brings them profit. The fear of this abuse has led to an investigation at Acapulco, to learn whether the valuation of the stuffs is the actual value of them at Manila; and as the witnesses are necessarily from that city they frankly say that it is so, and enormous quantities of goods come thence under the pretext of the 300,000 pesos permitted.

"These considerations and the fulfilment of my obligation constrain me to inform your Majesty that although I have applied all my energy and watchfulness in order that what was decided by your Majesty should be put into practice, causing the royal decree of the year 1702 to be proclaimed in Mexico and Acapulco, and allowing two years of liberty in order that the transaction of this commerce with those islands may cease, the perversity and selfishness of the merchants is able to pervert the rule which is seen therein--in public giving out that they are conforming to the tenor of that decree, and in private and secret hiding under [their system of] confidence the prohibited transactions, which cause, besides the royal displeasure of your Majesty, serious injury to the commercial interests of Spain. For when there is abundance of the goods from Manila--which on account of their cheapness are more suitable for the common people--the value of those from Europe is impaired; and from this results the stoppage of the trading-fleets, the lack of purchasers, and the lowering of prices, because the people do not consider the European goods necessary for their supply [of clothing]. I know very well that in the islands a change is expected from regulating the commerce, as has been experienced this year, when the [Manila] ship came in ballast--the merchants perhaps fearing the threatened punishment of the confiscation of their goods (as I set forth to your Majesty in a separate report). From this will result the forced expenditure of the royal situado and the inefficiency of the royal exchequer; but as it is certain that those islands cannot maintain themselves with the situado alone, and that they need the traffic in their goods in order to obtain a balance of profits and to meet their obligations, they will have to continue in their shipments, conforming themselves to the [terms of the] permission, if they do not wish to experience the penalty of law in punishment for their frauds.

"This year of 1714 is the last one designated and determined by me for closing and finishing the mutual relations of both commercial bodies, taking into consideration, however, the capital belonging to Nueva España in the islands, and that the penalty ought not to be anticipated, considering the publicity of the prohibition; and, as nothing is coming this year, it will be necessary to abrogate it in the following one. All this I place before your Majesty, in order that in regard to what is contained therein you may be pleased to apply suitable measures."

In view of this letter from Viceroy Linares, and of other documents, whose contents do not concern this writing, it was agreed by the Council (after having listened to the fiscal), by a decree of the second of March, 1715, that this collection of papers [Expediente] should be kept until the commissary of Philipinas (who, it was learned, was coming to the court) should arrive; and that in the meanwhile all the previous documents which the Council might possess in regard to this commerce should be collected together.

PERIOD V

Of the information given by the commercial interests of España,
in regard to the injuries arising from the Philipinas trade;
and orders given by his Majesty in the year 1718 prohibiting the
[trade in] the silk fabrics from China.

45. As the result of the memorial sent to the king by the consulate and commerce of Nueva España (which his Majesty was pleased to refer to the Council), in which they described the backward condition in which their trade was, and stated the arguments why the trading-fleets annually sent to that kingdom [from España] should not be continued, the Council agreed that the consulate and commerce of Sevilla should give a report upon their opinion of this memorial, calling together for this purpose in a general conference all the shippers and merchants who were in that city; and that their discussions, proposals, and joint opinions should be exactly copied, with the individual opinions which were offered, and the whole sent to the Council.

46. The body of traders having assembled in Sevilla on January 27, 1714, in order to comply with the order of the Council, and the importance of this matter having been discussed at length in the conference, it was unanimously agreed that the injury arising from the notable, frequent, and large importation of foreign goods which had been made throughout America had been very pernicious to the commerce of Sevilla; and that it was impossible that that commerce should return to its former condition if those importations were not checked--which they had entreated his Majesty to do in repeated remonstrances, which they now made again, trusting that the earnest and truthful utterances of vassals so faithful as they could not be displeasing to the royal ears.

47. [They further declared] that the injury caused by the large amount of freight which was earned into Nueva España by the ships from China, rivaled, if it did not exceed, that from the other importations. For, although the merchants of Mexico did not touch on this point in their memorial, the silence in which they kept back this subject (although it was a more odious source of damage) readily explained what interests were concerned in tolerating and continuing those ships, at the same time when the latter had so injured and driven out the commerce of España that no words were sufficient to explain the grief and resentment [of the Sevillans] over the great losses which had been caused to it. For although the ships which were bringing in the cloth and other goods (a matter to which the consulate of Mexico attached much weight) were ruining the commerce of España, in those important lines of linen goods, and others which they were bringing in, [nevertheless] the knowledge, suspicion, or information of what they were could perhaps make the [resultant] damage to the Spanish commerce less serious, such knowledge causing the refusal to injure that commerce; but that could not be guarded against in the ships from China, for their cargo was composed of all the silks and other goods generally which could be traded in by the merchants of España, of those which are manufactured in these kingdoms; and, whatever might be lost in that region on the part of the commerce of España by reason of foreign importations, it lost everything through those from China.

48. That, his Majesty having granted to the island of Luzòn (in which was located the city of Manila) and to the other islands around it only this, that every year there should go to the port of Acapulco one ship to obtain the situado for the maintenance of the fortified posts, conveying only what pertained to white and colored cotton stuffs, pepper, porcelain, raw silk, and other similar commodities which are produced by the islands which obey [the king of España], and with the prohibition of every kind of woven silk stuffs as contraband--for which reason the latter have always been burned on account of the notion of their being made in China and Japòn (which are countries governed by idolaters, Mahometans, and heretics, who are not under the dominion of this crown)--the abuse of this permission had reached such a state that the ship came with a lading of eleven or twelve thousand bales from China and Japòn, so dexterously packed by those infidels that the largest bale which the commerce of España was shipping to the Indias did not include the volume or the value that was enclosed in a bale of those silks, which was less than a vara deep. Moreover, they put therein imitations of all the satins, velvets, ribbons, mantles, hose, and every kind of silks, which were manufactured in España; [and these were] so showy and beautiful that, not only for this reason but on account of the very moderate prices at which they were sold throughout Nueva España, no other kind of silks were used than those of China. The result of this was that all the silk factories in España (which were paying so enormous duties to the royal treasury) had been broken up and destroyed; and the fortunes of those who were trading in the Indias were ruined by the great losses which they had encountered, since the Spanish commerce was deprived of a line of goods so important and rich as is that of the silk, in all its kinds of fabrics.

49. That this loss had passed over to the woolen goods, such as picotes, barracans, [75] and others which were shipped in the trading-fleets; for those who had clothed themselves with these throughout Nueva España were now despising them, observing that for half of what a woolen garment cost them they could procure another of China silk--being apparently as well clothed, although in the quality of the goods they had been deceived. In this manner the Chinese goods carried out of the country three or four millions of pesos in each ship, which was but little less wealth than that carried by a regular trading-fleet.

50. That the damage which this illegal trade occasioned to the royal treasury and to the Spanish trade enabled one to judge of the great amount of property which those ships transported, of the treasures which they carried, of the loss which they caused to the commerce of España, and of the amount which they did not contribute [to the royal revenues]--augmenting by this means the power and wealth of those infidels, who are enemies to the Christian faith and to the crown. For this reason, and because the consulate and commerce of Sevilla firmly believed that this was the greatest loss and the greatest source and cause of the ruin of the trading-fleets, and that which most urgently called for relief with the most prompt and energetic measures: they concluded by entreating his Majesty that he would deign to give orders that the permission given to Philipinas be strictly observed, under the most severe penalties, commanding that its limits be restricted within the limits of its first concession, for this purpose despatching the most rigorous orders; and that the trading-fleets should go punctually and frequently, each year. On this point they expatiated at length, and it is omitted because it does not belong to this subject.

51. In view of this information and of the proceedings in the Council (of which there is no account in the Expediente) it is found that by decree of January 8, 1718, his Majesty stated to the Council that, having been informed of the quantity of stuffs, silken fabrics, and other merchandise which the ship from Philipinas brought, by which the greater part of the silver of Nueva España was carried out of that country, he had decided to prohibit absolutely the trade in the aforesaid commodities. He declared that the only trade which could be carried on was in linen goods, porcelain, wax, cinnamon, cloves, and other products which are not carried from España, to such an amount of these kinds of goods as the Marqués de Valero should notify to the governor of Philipinas, which must be transported by one of the ships which for the last five years had arrived at Acapulco [from the islands]. His Majesty furnished with this a copy of the order to this purpose which he had given to the Marqués de Valero, the tenor of which is as follows: [Here follows a copy of the decree, dated at Madrid on January 8, 1718.]

53. By another decree of June 20, in the same year, 1718, his Majesty sent to the Council, for its information and guidance in the matters which belonged to it, a copy of another decree (which was issued to the Council of Castilla), prohibiting the importation and use of the fabrics from China and other parts of Assia, since this was to the injury of the manufactures and commerce of España; its tenor is as follows: [A copy of this decree is also given].

PERIOD VI

Of what occurred from the year 1718, in which the commerce of
silken fabrics was prohibited, up to the year 1722, in which the
merchants of Philipinas protested.

55. The Marqués de Valero, then viceroy of Mexico, in a letter of March 12, 1719--accompanied by a duplicate of another letter dated June 20, 1718, in which he acknowledged the receipt of the despatches in the private correspondence, dated January 8 of that same year, which prohibited all silks in the ship from Philipinas--considered the inconveniences which would result from that commerce being reduced to linen goods, porcelain, wax, pepper, cinnamon, and cloves, excluding stuffs, and raw silk and [silken] fabrics. For, he said, if this prohibition should be put in practice, the result would be the decay of religion, and the risk that it would be neglected, and its extension would be endangered and even exposed to ruin although this matter had cost his Majesty so much solicitude in promoting and assisting the missions for preaching the faith. [He declared] that the Spanish families who were there would abandon the settlements, for they could not maintain themselves in those islands without the trade in the aforesaid commodities, since that in the merchandise allowed to them had no profit, on account of its low price and the little demand for it. That the natives of Nueva España were also included in the prohibition, since their usual material for clothing was the stuffs from China, on account of the moderate prices of these, and because they could not use the cloth from España, since it was more expensive--unless, if they are deprived of the former, it will follow that they consume the latter; for if their need and poverty would permit it they would use the Spanish cloth, since all value it more on account of its greater durability and better quality. That the arrival of the trading-fleets was welcomed by the rich merchants, but that most of the people in the kingdom were much more eager to see the ship from China; and, if its arrival were delayed, one did not fail to notice many expressions of regret. That the royal treasury was notoriously injured; for, with the duties which the silk merchandise yielded, the situado was forwarded to Philipinas and the Marianas Islands, and in default of those duties it would be necessary to make the remittance from the funds in the treasury of Mexico. That would cause arrears in paying the fixed charges which the treasury had to carry, and could hardly meet with all its income, and the royal treasury would also be injured by the loss of the ten per cent which was paid by the silver sent in return for merchandise; and, besides, the few commodities which were carried would not yield enough to cover the cost of the navigation.

56. The fiscal--to whom it was ordered to send these representations, that he might examine them and compare them with the Expediente--made his reply on January 10, in the year 1720, reaffirming the motives which had prevailed, since the discovery and conquest of those islands, in permitting to them the commerce with Nueva España, so far as it was necessary to their preservation. [He also stated] the infractions of law which had changed the amount permitted--250,000 pesos of principal, and 500,000 for the returns (which "Period i" mentions)--and what was ordained by the royal decree of August 12, 1702, for the regulation of the management and continuance of this commerce; and declarations made by his Majesty in regard to unsettled points which arose, in the meeting of the Council in 1712, from which despatches were sent on December 12, of that year (which are mentioned in "Period iii"); and the fact that the abuses with which the merchants of Peru had carried on commerce with Nueva España had made it necessary that in the year 1631 that trade should be entirely prohibited. He was of the following opinion: that the permission to trade ought to be continued to the citizens of Philipinas, for the damages to the commerce of España would be avoided if that of Philipinas did not exceed the 300,000 pesos which were allowed to it.

57. That if this commerce should perish, trade and intercourse in those distant provinces would cease; and if they were cut off from communication with Nueva España they would remain exposed to seeking for commerce with the adjoining nations, and in imminent danger of trading away at the same time their own rights and customs, and of going to perdition--the Catholic faith being extinguished entirely or in part, the propagation and maintenance of which was and always had been the chief care of his Majesty.

58. That although in the royal decrees of January 8, 1718, there was reserved to the islands the trade in sugar, porcelain, linens (called "elephants"), [76] and spices, these commodities were not adequate for maintaining a continued commerce, nor for producing the revenues which those islands needed.

59. That the government should not disregard the consideration brought forward by Señor Valero, of the damage which ensued to the poor vassals of Nueva España from depriving them of the privilege of supplying themselves at less cost with the fabrics from Philipinas; for if they cannot obtain these, and the poor are unable to meet the expenses of the Spanish merchandise on account of its high price, they would be exposed to the wretchedness of destitution. In conclusion, he said that advice should be given to his Majesty that the remonstrance of Señor Marqués de Valero was just; and that deference should be paid to it, by suspending the operation of the above-mentioned decrees and warning all the officials in those regions that they must conform without any variation to the orders given in the decree of the year 1702--with various provisions which he proposed, one of which was the total prohibition of the commerce in case the conditions of that decree were violated.

60. Having considered this reply of the fiscal, it was agreed by an act dated February 1, 1720, to advise his Majesty in accordance with all the preceding recommendations; and the Council was of opinion that it should reiterate the enforcement of [the commands in] the despatches of August 12, 1702, and December 13, 1712, with a strict stipulation that the ship could not be allowed to sail if the value of the 300,000 pesos of the permission were invested in silks only.

61. While this opinion was in the royal hands, an order from his Majesty came down to the Council dated September 5, 1720, in which--influenced by a memorial which had been presented by Don Manuel Lopez Pintado in the name of the consulate and commerce of Cadiz; and by a letter from Marqués de Valero just then received, dated March 8, in the same year--his Majesty commanded that the Council should inform him of their opinions in regard to the prohibition of stuffs and silks from China in the Philipinas ship, after first listening to the memorial from the commerce of Cadiz.

62. The Marqués de Valero in the letter here cited of March 8, 1720, urging what he had set forth in previous letters in regard to the difficulty which he encountered in carrying out the decrees which prohibited the commerce in silken fabrics, also spoke of the new distress in which the islands were, on account of the plague of locusts, failure in their harvest of rice, and the scandalous proceedings of Governor Bustamante. The viceroy said that it seemed to him better for the service of God, and that of his Majesty, to delay the regulations which changed the method in which that commerce had been conducted, until his Majesty should make such decision as pleased him in regard to the viceroy's previous memorials; and he said in conclusion that he had also found it desirable to make this suspension of the decrees because the emperor of China had hindered his vassals for the last two years from trading with the islands--which had resulted in the galleon of that year carrying but few silk goods. Consequently, the greatest scarcity of that merchandise had been experienced, for, even before the arrival of the ship, a libra of silk spun [beneficiada] and dyed was worth 26 to 28 pesos.

63. In consequence of this order of his Majesty there were sent to the consulate of Cadiz copies of the decrees of the year 1718 and of the letters of the Marqués de Valero which have been noted, in order that the consulate might report in regard to its opinions, fully and clearly stating the inconveniences, or the advantages, which might follow the prohibition of the stuffs, silken fabrics, and other merchandise from China. They answered this in a letter of July 16, declaring that on this subject they had made on different occasions the representations which were contained in two official documents which accompanied, and that nothing occurred to them to be added to these (which are the ones noted in nos. 46 and the following, "Period v"). [77] Orders were given that the fiscal should examine the whole matter anew; and he in his reply of September 11, in the same year, 1720, taking into consideration what he had stated in another of January 10 preceding (which is the reply that is indicated in no. 56), added, that the consulate only complained in its memorial and in the remonstrances of its merchants of the illegal manner in which the commerce of Philipinas was carried on; and the fiscal asked that this be restricted within the limits of the permitted amount.

64. He stated that it was a mistake to assume that the permission was only for the products belonging to the native citizens of Philipinas, because the laws which permitted this commerce did not contain such limitation, and continual usage had excluded it; for always the islands had traded in silken fabrics without hindrance, for with the products of the country it would be impossible to carry on an annual commerce to the amount of 300,000 pesos.

65. That the absolute prohibition of that commerce which the consulate proposed in its memorial (it is not in the Expediente), following the precedent of prohibiting the commerce of Peru with Nueva España, ought not to be considered. For the latter prohibition left both those kingdoms free to trade with Castilla, by which the lack of commerce between them was made endurable; but this result could not occur with Philipinas if the commerce of Nueva España were prohibited to them, since there remained no other of which they could avail themselves.

66. That, if the products of the natives of those islands were sufficient to make up the annual [amount of] trade to the extent of 300,000 pesos, it would be just and reasonable that the commerce in silken fabrics be prohibited to them; but as the aforesaid viceroy positively stated that those products were not sufficient for that purpose, it would not be right to deprive them of this privilege without further knowledge of the subject. The conclusion of the fiscal was, that orders should be given to observe the royal decree of August 12, 1702; and that the viceroy and Audiencia of Mexico, and the governor, Audiencia, archbishop, and royal officials of Manila, should send in information very clear and detailed on the question whether the products of the country could fill up the amount, [of exports] assigned to that commerce.

67. The Council, in view of all that is mentioned in this "Period vi," and of a summary of the context of the letters of the Marqués de Valero, and of the replies of the fiscal, were of opinion, in their session of September 23, 1720, that his Majesty should be pleased to command a repetition of the orders given for the fulfilment of the regulations issued on August 12, 1702, and September 13, 1712--with a strict stipulation that the Philipinas ship should not sail with an investment which should exceed 300,000 pesos, and that to be in the commodities which were specified [therein], with exclusion of every kind of silken fabrics; and with other measures and statements which are contained in the despatches that were issued for the enforcement of those decrees, dated October 27, following, of which mention will be made.

68. At this session it pleased his Majesty to make the following decision: "I agree entirely with what the Council proposes; and the corresponding orders shall be immediately given, with the most punctual and strict charge to the officials whom this concerns (and especially the viceroy of Nueva España) that all the above orders shall be carried out promptly, without any objection or alteration--with the warning that, if any neglect or delay in fulfilling this decision is experienced, proceedings shall be brought against them as disobedient to my orders. And in order that those officials, as also private persons in Nueva España and Philipinas, may be fully informed of this determination, a decree shall be drawn up with the utmost clearness and precision, which shall include the whole of this business. This decree shall serve as an ordinance, in which, without reference to others, shall be expressly stated what every person must observe in this commerce, and the penalties which transgressors will incur, in accordance with what the Council proposes, to the end that, by placing an authentic copy of it at the heads of the registers on the ships from Philipinas and making it public, no one can allege ignorance. The Council shall pay especial attention to the manner in which proceedings shall be taken in this matter, not only in Nueva España but in Philipinas, in order to secure the punishment of those who disobey my orders, and of those who shall delay their execution."

69. In consequence of this decision the royal ordinance which was mentioned in it was drawn up, with date of October 27, 1720. It was addressed to the viceroy Marqués de Valero, and the Audiencia of Mexico; the royal officials of Acapulco; the governor, Audiencia, and fiscal of Philipinas; and the archbishop of Manila; and copies of it were given to the consulates and merchants of Cadiz and Manila, at their request, in order that they might print it. Its tenor is as follows:

70. [This decree is addressed to Marqués de Valero, viceroy of Nueva España. After rehearsing the arguments brought forward in previous letters received from Valero, the decree ordains the following rules for the commerce of Philipinas: Two ships shall go annually from the islands to Nueva España, each of 500 toneladas. "The value of the lading which the said ships are to carry from Philipinas to the port of Acapulco may be up to the amount of 300,000 pesos, which must come invested strictly and solely in the following kinds of merchandise: gold, cinnamon, elephants, wax, porcelain, cloves, pepper, cambayas and linens woven with colors [lienzos pintados], [78] chitas, chintzes, gauzes, lampotes, Hilocos [79] blankets, silk floss and raw silk spun, cordage, and other commodities which are not silks." These ships are prohibited from carrying silken fabrics, "satins, pitiflores, velvets, damasks, Pekin silks [Pequines], sayasayas, brocades, plain satins, grograms, taffetas; silver and gold brocades; embroidered pieces of silk stuff for [covers of] beds, the [hangings for] drawing-rooms [estrados], and women's petticoats; silken gauzes flowered with gold and silver; pattern pieces for petticoats, figured or embroidered; dressing-gowns, chimones, or made-up garments; hose, ribbons, or handkerchiefs; or any fabric which contains silk." The penalties for transgression of this order are confiscation of such goods, payment of three times their value (this amount to be shared between the royal fiscal, the judge, and the informer), and perpetual exile from the Indias; and the confiscated goods are to be burned. Declarations of goods shipped are absolutely prohibited; those who are permitted to trade must be chosen by the city of Manila, without the aid of any official; the duties to be paid are fixed at 100,000 pesos for each voyage, with the express stipulation that this payment is to be called adjustment [regulation] of duties, and not indult; no religious person and no stranger may be allowed to ship goods; every shipper must present an itemized invoice of the goods sent; the ships must not be overloaded; no right to lading space may be transferred to another person. Provision is made for inspection, valuation, and landing of goods, and for the disposition to be made of such as shall be confiscated; and the limit of six months is fixed for the disposal of all Chinese silk goods that may be on hand in Nueva España when the decree is published, after which time all that are found must be burned.]

PERIOD VII

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

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

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

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

74. It was also expedient that permission be given to the seamen to transport in their own chests goods up to the amount of 40,000 pesos of investment, on account of the importance of interesting them in the defense, [80] and in order to facilitate that in provinces so remote there should be Spaniards who would serve as artillerists and seamen, since their wages alone, in voyages so arduous and long, could not be sufficient incentive. In order that that commerce might be regulated and infractions regarding the lading be avoided, an arrangement was proposed to his Majesty in which the annual investment was reduced to 3,200 piezas of the regular sizes--half-bundles, bags, sacks, [churlos, balsas (for bolsas)] cakes of wax, and other like packages of bulky commodities, and three hundred half-chests of goods from China, in order to supplement the said 3,200 [81] piezas. Consequently, at the despatch of the galleon there would be nothing else to do except to distribute the said piezas and issue the permits for its lading--collecting 10,000 pesos for the royal duties, at the rate of two per cent, for this purpose rating the 3,200 piezas at 128 pesos and 1 tomin, and the half-chests at 300 pesos and pay at Acapulco thirteen per cent, regulating the 3,200 piezas at 256 pesos and 2 tomìns, and the 300 half-chests at 600 pesos each. This would result in the royal duties at both ports amounting to 140,000 pesos, and in return would be brought back, for the account of the permission, a million pesos; and thus would be avoided sworn declarations, and other dubious measures to which the previous regulations were subjected.

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

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

77. That by the exclusion of the stuffs and silks, which were the principal articles of commerce of the islands with China, all that commerce [i.e., with Nueva España] would come to an end, since all the rest was of so little value that it could not, without the substantial aid of the silks, allow any profit. From this would result another great difficulty in the propagation of the holy gospel, that if the Chinese do not come to the trade they will lose the opportunity for conversion which so many have attained, attracted by familiar intercourse with the Spaniards, with the occasion of this commerce, and there would be great difficulty in introducing the gospel ministers into those dominions; and these are motives which have always engaged the chief attention of his Majesty, to judge by the laws. The Audiencia concluded by expressing the opinion that the prohibition of the silks should be removed, and an increase be granted in the permission to 500,000 pesos, with the number of piezas which the city was proposing--this regulation being made in proportion to the number of citizens, in order that the islands might maintain themselves, and thus obviate the serious inconveniences that were experienced; and, as for the duties which the city proposed, this question was referred to the decision of the Council.

78. The fiscal of that Audiencia, Don Pedro Bedoya, [82] in a letter of November 15, in the same year, 1722, in consequence of the duplicate copy which he received of the royal decree of October 27, 1720, states on his part--after repeating his previous opinion regarding its execution, as given to the city of Manila, the action taken by the governor, the recourse by the city to the Audiencia, and the report made by that body--what his opinion is, in fulfilment of his obligation, in regard to the memorial of the city and the merchants; it is brought under four heads, which are:

I

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

II

That if the prohibition of the stuffs and other commodities from China remains, their former control of the trade therein will be disturbed, and the royal decrees issued for this purpose (some of which are compiled [83]) will be subverted--such as those which command that the commodities which they convey shall be bought from the Sangleys; and that if this [Chinese] commerce is prohibited that of Nueva España becomes unprofitable, as the bulky commodities do not fill up the amount of the permitted trade, and it will not be possible to pay the cost of traffic in them without those from China.

III

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

IV

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

79. [These points made by the fiscal are discussed at length by him in a report addressed to the king, dated November 15, 1722. Among other things, he states that the merchants prefer one galleon of 800 or 900 tons burden to two of 500 tons each, as being less expensive (on account of requiring fewer officers and men), safer (as carrying larger cannon) and less exposed to danger from either enemies or storms, than the two smaller vessels; that the industry and love of gain displayed by the Chinese who reside in the islands have secured to them the control of all the crafts and useful arts, and of the commerce of the islands save that with Nueva España, which is therefore the only resource of the Spanish citizens; that the current rate of income [84] is but five per cent in the islands, while that commerce brings in fifty per cent; that most of the rural estates [haciendas] are possessed by the religious orders; that houses constitute property of little value, on account of the frequent fires and earthquakes; and that consequently the charitable foundations [obras pias] have been necessarily based on the Acapulco trade. It is also declared that the annual situado from Mexico amounts to no more than 50,000 or 60,000 pesos, while the annual budget of the government expenses amounts to 500,000 pesos, which the royal treasury of the islands must pay from the proceeds of the duties on merchandise. The request of the Manila citizens for a permission to send 500,000 pesos' worth, in 3,500 piezas, is very moderate; as the trade has been conducted, the 300,000 pesos' worth has made 4,798 piezas, for the last five years--which is evidence of the infractions of law which have been committed in that commerce. Moreover, the proposition of the city that the duties belonging to the crown be levied on the number of the piezas, will be likely to prevent many of the frauds which are now practiced in this direction. The fiscal opposes the request of the city that the seamen be allowed an increase of the small amount already allowed them, free from duties, for investment on their own account, declaring that it will but increase the illegal trade already prevalent, and that the proposition to allow them 40,000 pesos' worth of trade (with twice that amount in returns for the merchandise) would allow the seamen a greater investment than even the citizens, since the former average only 115 men to each galleon. He advises that the officers of the ships be permitted to have a share in the lading of the ship, in place of their present wages; and that one large galleon be occupied in the trade to Acapulco, rather than two small ones. He reminds the king of the opening afforded by the trade between Manila and China for the conversion of the Chinese and the entrance of the gospel into that heathen empire.]

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

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

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