Chapter IV: Preface (3)

225-233. [This memorial from the Philipinas deputies was communicated to the deputy from the commercial interests of España, Joseph Lopez Pintado, on March 31, 1735; and on the first of June following he presented another in reply, accompanied by various illustrative documents. The former arguments are repeated, but various interesting data are adduced in their support. Pintado states that the looms for making silk fabrics in España numbered more than 70,000 in the days when that industry flourished there. Nueva España was forbidden to cultivate the vine and the olive, in order to protect those industries in España. The commerce of Manila in Chinese silks has ruined the silk manufacture not only in España but in Mexico, where formerly was worked up the raw silk carried by the Manila galleon. Cadiz claims that the decree of April 8, 1734, was obtained on the strength of the representations made by the Manila deputies, without giving Cadiz any opportunity for remonstrance; Abreu furnishes at this point a marginal note to explain this, saying that the king asked the Council of the Indias to report on the matter as quickly as possible, and that the action which he wished to take brought the question back to the status which it had on previous occasions of this sort, when the commerce of Andalusia had had a full hearing; they had therefore considered it unnecessary to hear its arguments again. The enactments of 1593 are cited to show that not until then was the commerce of Manila restricted, and that because it was injuring that of España; but this and succeeding laws show that it was the royal intention to allow Manila sufficient trade to provide for its needs and support. Moreover, after the islands were conquered a large territory was allotted to Manila (as to other Spanish colonies) for its support; and in its early history these lands produced abundantly for the maintenance of the inhabitants. Besides these, the cotton fabrics made by the natives were more than enough to supply the islands, and became the basis of the exchange and barter trade with China. Manila ought to return to these industries for its support, and has no right to expect that it be supported without them. All the realms of España are under obligation to support the crown; but Manila asks the crown to support it, at the expense of great injury to the interests of España itself. The citizens of Manila have yielded to idleness and sloth, and have allowed the idolatrous Sangleys to monopolize and manage the industries and even the commerce of the islands. Some of the mestizos had erected looms for the manufacture of the finer kinds of cotton fabrics, but the Sangleys succeeded in breaking up this enterprise. A section of the memorial is devoted to proving that the permission to Manila to trade in Chinese silks has not been and is not of use for the increase and propagation of the Catholic faith in those regions, which has flourished without Manila and its commerce; on the other hand, the success and profits of that commerce have been caused largely by the work of the missionaries, especially in China. As for the Chinese who are converted at Manila (drawn thither by the opportunity for trade), they usually become Christians for selfish and worldly ends, and soon relapse into their former heathenism. They even have a proverb: "In Manila, [do] as in Manila; in China, [do] as in China." Their infidelity and atheism have a bad influence on the Indian converts, who learn many evil things from the Chinese, as also do the converts in China itself; and the citizens of Manila are reproached for their familiar relations with those infidels. They have also allowed the Chinese to get control of affairs and commerce in Manila, and the latter are living on their blood. In España, both canon and civil law prohibit intercourse with Mahometans and idolaters, and it is not long since the Moriscos were expelled from that country--notwithstanding "the great products of their industry, the tributes which they paid into the royal treasury, the commerce of the province [of Andalusia] which through them was greater than that of the other realms, and even (which is more important) their being the sheep [of the Church], which Manila says ought to be sought out and preserved; for, as it had been found impossible to secure the purity of religion by the means which the law set forth, it was necessary, in view of the duty of preserving and maintaining the holy Catholic faith in the kingdom in quiet, peace, and security, to expel and cast out those people. Accordingly, in order to preserve the faith in Philipinas, which is a matter that should receive careful attention, the prohibition of their commerce [with the Chinese] is necessary, which is of even less estimation than that of those expelled Moriscoes." In another section, Cadiz reminds the king that in the compilation of the statutes of the realm provision is made that no decree or ordinance which is contrary to law and right, or which is injurious to certain regions, shall have force; and this should apply to the decree of 1734 permitting to Manila the commerce in silks, since that has deprived the Spanish traders of their rights and privileges in the results of their commerce, and has ruined the silk industry in that country. Thus is greatly injured the prosperity of the provinces in which it was exercised; and this reacts on the entire kingdom of España, reducing so many artisans to poverty, causing them to abandon their families or their native places, and bringing many to idleness and crime. Cadiz again alleges the frauds in the Manila commerce, declaring that the goods sent to Acapulco are appraised at less than the fourth of their current value in Manila, and are sold at 100 per cent advance on that actual value; and that these illegal acts are promoted by the merchants of Mexico, in collusion with those of Manila--all of which may be proved by the documents in the archives of the Council of the Indias. This trade of Manila in silks from China enriches a small class of wealthy merchants (in both Manila and Mexico), the only ones who have the wealth to engage in and profit by it--and this at the expense of the poor and those who have but moderate funds, by absorbing the opportunities and profits in which the latter ought by right to have a share. The Chinese goods, moreover, are of poor and flimsy quality, and last only one-fourth to one-half the time that the Spanish fabrics do. Cadiz supports its arguments by many citations from the laws of the realm; among these are prohibitions against exporting the products or commodities of one province or city to another--as, no salt, wine, must, or vinegar might enter Castilla from Aragón or Navarra; and the silk of Calabria and Napoles must not be imported into the cities of Segovia, Zamora, Salamanca, Cordova, and Cuenca--although all these were parts of the Spanish empire. In line with these is the desired prohibition of the silk trade to Manila, especially since that trade is so injurious to the commerce and industry of the mother-country. In that case Manila should have (by another law cited) an equivalent benefit; and Cadiz has already proposed this, in the spice trade--to which it has a right, but is willing to cede it to Manila. The arguments brought forward by Manila as to the consumption of spice in Nueva España, the bulky character of that merchandise, the costs of transportation and sale, duties, etc., are met by Cadiz with others to refute or weaken the former. The Manila galleon brought to Acapulco in 1729 cinnamon to the amount of 99,233 libras, and in the following year 167,100 libras. The fleets from España carried thither the following cargoes of that spice: In 1723, 105,201 libras; in 1725, 143,629 libras; in 1729, 225,012 libras; in 1732, 182,163 libras. Add to this the amounts which the Manila galleons transport; those which are carried in pack-cloth bales [arpillería] (subject to palméo [16]), in order to gain the benefit of the [reduced?] freight charges; and, besides, those which the licensed ship from Inglaterra conveys (of which no definite calculation can be made): it is morally certain that the annual consumption of Nueva España will amount to and even exceed the 250,000 libras. Even if it should fall below that, there are other facts to be considered. It is true that "when the traders from España, England, and Filipinas all come at the same time--that is, in the month of March, when the fairs are held (for the first two nations, at Xalapa; and for the last, at Acapulco)--the price is usually broken to 18 reals of silver a libra, as the deputies state; but they omit what is more worthy of consideration. This is, that in the intermediate years between the trading-fleets, and according to the circumstances of the times, the price of this commodity rises to so excessive a degree that, from the year 1706 to that of 1709, on account of the wars in Europa and the failure of fleets to go to Nueva España, a libra of cinnamon was maintained at twelve to thirteen pesos, this great profit being secured by the ships from Philipinas, which came in those years to Acapulco. And from the year 1725 to that of 1730 (at which time the petitioner [i.e., Pintado] was in Mexico) I knew from experience that in the ship which came in the year 1728 the Philipinos sold the cinnamon at five pesos a libra; and those who did not return in the galleon, and conveyed to Mexico some quantities of the cinnamon, succeeded in selling it at eight to nine pesos. In the year 1729, it was disposed of in Acapulco at thirty silver reals [or 3 3/4 pesos]. This is what occurs, and always will occur, on the aforesaid occasions of interval [between fleets], and, too, [it occurred] when the trade was carried on by both parties (which is what deprives commodities of value, through being handled by many persons); the exclusive control [of this spice], then, remaining in the [hands of the] Philipinos, from their being the only ones who transport it, the reputation and value which they can give it, and the lucrative profits which (without contest) they will obtain, are not doubtful." The objections raised by Manila in regard to expected competition are not well founded: the Company of Philipinas is in an inactive condition, and its directors have apparently abandoned their scheme, but in any case Cadiz would feel responsible for not allowing that company to injure Manila's spice trade; and, as for the English ship, the king can persuade or prevent its owners from including spices in their cargoes. The prices of spice charged to Manila by the Dutch are much more likely to fall than to rise, when Manila has the exclusive control of that trade. Cadiz asserts that the costs of trade enumerated by Manila are too large, and modifies them thus: Cinnamon (of which, as in all other commodities, there are three grades--poor, medium, and excellent) ought to cost but 8 reals at Manila. The duties paid there, on the basis of 44 ducados (of 11 reals each) a tonelada, should be only 13 pesos a churlo, according to its measurement in palmos; and the other expenses of placing it on board amount to 3 pesos--so that it costs only 154 pesos a sack to convey the cinnamon to Acapulco, instead of 203, as Manila claims. The profit, therefore, amounts to 77 pesos, 1 real, which is equal to 50 per cent, instead of 13. In the same way Cadiz reckons the gain on pepper at 96 per cent, and on cloves at 43 per cent, against Manila's estimate of a loss on pepper and a gain of 24 per cent on cloves. It must be noted, too, that Manila is not satisfied with less than 100 per cent gain, while the Spanish traders are hardly able to make good the principal cost of their wares. The amount of ballast required for a light cargo is also overstated; this matter has been duly investigated by the officials of the India House at Cadiz, and it appears that the maximum amount of ballast for a ship of 1,000 toneladas, of the usual construction and of American timbers, is 333 toneladas for a cargo of light goods (such as cinnamon and bales of cloth). The Philipinas ship carries stone for ballast; the 333 toneladas of this, each weighing twenty quintals, are equivalent (by cubic measure) to 117 toneladas of the vessel's lading-space or capacity, which leaves 883 toneladas of space in the hold for the cargo. To augment the above amount of ballast would too greatly reduce the cargo, and even the necessary supplies for the voyage. Cadiz criticises the construction of the Manila galleons, especially as they are evidently built so as to carry a larger cargo than that which is allowed by the permission--as is confirmed by the large amounts of property that have been confiscated at Acapulco. The "elephant" lienzos may be estimated to fill 800 bales, each containing 20 piezas, and each pieza being valued at 3 pesos; and the cotton stuffs and raw silk, etc., 1,512 bales, each worth at least 125 pesos. These cotton stuffs, when fine, are handsome, and find a large demand and sale in Nueva España; moreover, the raw silk imported into that country is worked up in Mexico, and is an important article of commerce. When the importation of Chinese silks is prohibited there, "the manufactories which had begun to be established in Mexico will be protected; in these many persons were occupied, and were supported by working floss and twisted silk into fringes [galon], and into the fabrics which were used in Mexico, produced by those factories." The "elephant" stuffs, "being equivalent to Rouen linen, and conveniently supplied, are purchased in Nueva España not only to be used as white goods, but they are dyed for linings and other purposes." The extent of their consumption is shown by the quantities of them that the Manila galleon brings to Nueva España: 3,117 bales in 1729, and 2,432 in 1730; but even these large importations did not overstock the market there. The customs duties are not diminished, as Manila claims, by the prohibition of Chinese silks; the cargo proposed by Cadiz would yield the regular amount of these duties, amounting to 17 per cent of the returns, as follows: on 168 sacks of cinnamon, at 32 pesos, they amount to 54,016 pesos; on 2,312 bales of cotton stuffs, etc., at 30 pesos each, 69,360 pesos; the five per cent exacted on the shipment of the silver for returns, figured only on a return of 900,000 pesos, 45,000 pesos. This leaves a balance of only 1,624 pesos to be levied on the wax, pepper, and other miscellaneous wares of the cargo, to fill out the 17 per cent demanded by the crown. Manila has omitted to include any estimate of the import duties which would be collected in that city on the cinnamon which Cadiz desires it to handle; these would certainly indemnify Manila for the losses incurred by the lack of the Chinese silks. Among the papers accompanying this memorial are official certificates of the amounts of spice carried to Nueva España by the trading-fleets from Cadiz during 1723-32; the quantity of cinnamon in each has been already mentioned, cloves were not included in any of their cargoes, and pepper diminished from 54,804 libras in 1723 to none in 1732. Another document is the report of an investigation made at Cadiz as to the measures of bales and chests and of the churlo in which the cinnamon is transported; this last was found to measure 30 cubic palmos outside the vessel's hold, but 38 palmos when within it. Arquéo is defined as "the computation or estimate which is made of the bulk of the lading which the ship contains in its hold; this burden was measured by toneladas, each one of which contained 8 cubic codos, and each codo consisted of 33 dedos of the 48 into which the Castilian vara (which is commonly called 'the vara of measure') was divided. The tonelada, having as its [cubic] root two codos, or 66 dedos, contains 287,496 cubic dedos; dividing this number by 1,728, the number of cubic dedos in a cubic palmo, or quarter of a vara, each tonelada of arquéo is equivalent to 166 3/8 cubic palmos; from this it is deduced that if the ship is one of 1,000 toneladas, it will contain 166,375 cubic palmos, and in the same ratio for any other tonnage. As for the regulation of the spaces between decks [entrepuentes] by the capacity of their storerooms, no general rule could be given, on account of the great irregularity which was observed in them; for this matter was at the discretion of the shipbuilders, and according to the object for which the vessel was built."]

237-241. [This memorial having been sent to the fiscal, he replied (November 10, 1735) that the proposal of Cadiz was not a fair one; for the purchase of 250,000 libras of cinnamon, and the costs of placing that amount in the Acapulco market, would amount, even at Cadiz's own figures, to an investment of 277,008 pesos, and at Manila's to 331,024 pesos, while Cadiz had assumed but 250,000 as the amount to be put into cinnamon by Manila. The result would be that Manila either would not transport all that quantity to Nueva España, or would lose part of the profit on its shipment. The profits at Acapulco are not sufficient, on either class of commodities proposed by Cadiz, to yield the amount which is permitted to Manila as returns on its shipments. The spices can never be an equivalent (as Cadiz would claim) for the Chinese silks; for a tonelada of cinnamon, which space is occupied with only 600 libras, is worth at Manila 600 pesos, and a tonelada of silk goods is worth 4,000 pesos, if not more. The amount of cinnamon proposed by Cadiz would occupy 416 2/3 toneladas, and the ballast (on a galleon of 900 toneladas) 300 more; this would leave for the cotton stuffs, etc. (all of which are bulky goods) only 183 1/3 toneladas, with which it would be impossible to complete the 250,000 pesos of investment allowed to Manila. But when they are allowed to carry Chinese silks, these are contained in 500 piezas, which occupy but 62 1/2 toneladas, each tonelada worth 4,000 pesos; and there remain to the shippers 3,500 piezas for the cheaper and bulky goods. The fiscal declares that even if the spices were an equivalent in value for the silk trade, the proposed commerce in them would be injurious to all parties concerned. "The losses to the royal exchequer would consist in the less value of the duties which the 250,000 libras of cinnamon would contribute [to it] in España than in Acapulco. For in that port they would amount, as the fiscal has been informed, to 21,944 pesos; and in Cadiz the import duties alone for the millon and alcavala pay 34 pesos a quintal of 100 libras, and, with those of export for the Indias (which, according to plan, are 20 pesos a quintal), would amount to 160,000 pesos. To this sum ought to be added at least 50 per cent for the greater value of money in Cadiz, where his Majesty will receive it [for the duties] immediately, than in the Indias; and with all these the royal exchequer will be defrauded to the extent of 218,056 pesos." The price of cinnamon will rise, when only the amount actually needed is sold; and this will be a burden on the general public. If the spice trade be limited to the Philippine merchants, there is nothing to hinder those of Mexico from "cornering" the market, and selling such quantities only as they please, at enormous prices; moreover, the failure of the annual shipment from Manila (which is possible in any year) would cause great scarcity of this product throughout the great kingdom of Nueva España, and this would be a serious injury to its citizens--"especially in an article [like this], for the lack of which there is no equivalent which can make it good; nor is its expenditure limited by the variety of uses [to which it can be put], or by the frequent inconstancy of fashions, like other merchandise, but depends on a certain and assured consumption." This compulsory spice trade would injure Manila itself not only for the reasons already cited, but because it is possible that the Dutch would refuse to sell the cinnamon to the Philippine shippers; and then, with the Chinese silks cut off from them, they would find it impossible to continue their commerce with Nueva España. In any case, the Dutch would have it in their power to demand whatever price they might choose to place on their commodities; and the interruption of that traffic for two or three years would not hurt the Dutch, for they could sell it to European traders and be sure of their profits; but the injurious effects of such proceeding would react on the Manila merchants, the people of Nueva España, and the income of the Spanish treasury. If at any time cinnamon should bring in Nueva España the enormous prices which Cadiz has previously quoted, that would not help Manila, since its returns are limited to 1,000,000 pesos; the unusual profits would only benefit the Mexican traders who had bought the spice by wholesale at Acapulco. The assertion of Cadiz that the Manila merchants gain on the cinnamon 150 per cent at Acapulco does not count, for it entirely ignores the costs and expenses which, as has been demonstrated, reduce their net gain to 50 per cent. For all these reasons, the fiscal declines to approve the proposals of Cadiz. In view of this reply, the Council agreed (November 16) to call for a summary view of the whole question, with all the documents concerned. At this point, information was received from Cadiz that the fleet which had just arrived had brought a sack of cinnamon as a specimen of that which was produced in the Philippine Islands, and that the quality of this surpassed that of the cinnamon brought from the Dutch colonies. On January 21, 1736, the deputies from Filipinas presented a new but brief memorial, refuting some arguments by Cadiz in regard to the proposed substitution of the spice trade for that in silks, and for this purpose citing a royal decree of 1638 in their favor, which Cadiz had declared not to be in the Recopilación of the laws, and proving, by duly attested declarations, that the said decree existed in the Manila archives. At the end of these appears a final paragraph by Abreu, the compiler of the Extracto: "All that is thus far set forth is what up to the present time has been done and appears in the Expediente of the important and long-standing negotiation in regard to the commerce of Philipinas with Nueva España, according to the acts, royal decrees, memorials, and other documents furnished to us by the office of the secretary for Nueva España, in order that this Summary [Extracto] might be drawn up and arranged, in obedience to the order of the Council. The series of the proceedings in regard to the 'Equivalent' [17] (which this 'Period x' comprises) remains, however, imperfect until they shall be concluded and ended by the advisory report of the Council and the decision of the king; but it seemed best not to wait for that, for the sake of facilitating, by this Summary, the more exact understanding of the gentlemen who are to express their opinions in regard to the 'Equivalent.' At Madrid, May 11, 1736."]

BIBLIOGRAPHICAL DATA

The matter in the present volume comes from many widely different sources. They are as follows:

1. Commerce of the Philippines.--See bibliographical data of VOL. XLIV, no. 6.

2. Letter from ecclesiastical cabildo.--MS. from Archivo general de Indias, Sevilla, bearing pressmark, "Simancas-Eclesiastico; Audiencia de Filipinas; Cartas y espedientes del cabildo eclesiastico de Filipinas vistos en el consejo, años 1586 á 1670; estante 68, cajón I, legajo 35."

3. The College of San José.--I, from Colin's Labor evangelica (Madrid, 1663), book iii, part of chapter xviii, pp. 414-418; from a copy of the original work belonging to Edward E. Ayer. II, compiled from various sources, fully credited in footnotes.

4. The college and university of Santo Tomás.--I, from Baltasar de Santa Cruz's Historia (Zaragoza, 1693), book i, chapter xxxvi, pp. 168-172; from a copy of the original work belonging to Edward E. Ayer. II, from Algunos documentos relativos á la universidad de Manila (Madrid, 1892), pp. 35-37. III, from Census of the Philippines (Washington, 1905), iii, pp. 622-626.

5. Royal college of San Felipe de Austria.--I, from Casimiro Diaz's Conquistas (Valladolid, 1890), book ii, portion of chapter xxxv, pp. 446, 447. II, from notes of Pablo Pastells, S.J., in his edition of Colin's Labor evangélica (Barcelona, 1904), ii, pp. 261-268, 493, 494.

6. Secular priests in the Philippines.--From Ventura del Arco MSS. (Ayer library), iii, pp. 9, 10.

7. Royal decree concerning native schools.--From Vicente Barrantes's Instrucción primaria (Madrid, 1869), pp. 74-76; from copy belonging to the Library of Congress.

8. College-seminary of San Felipe.--I, from MS. in Archivo-histórico Nacional, Madrid, where it is found in legajo 10 of the Jesuit papers. II, from Juan de la Concepción's Historia general (Sampaloc, 1788-1792), viii, parts of chapters xiii and xiv, pp. 315-338; from a copy of the original work in the possession of the Editors.

9. College of San Juan de Letran.--From Vicente Salazar's Historia (Manila, 1742), book i, chapter ii, pp. 7-12; from a copy belonging to Edward E. Ayer.

10. Law regulating marriages of students.--From Colección de autos acordados (Manila, 1861-1866), i, pp. 149, 150; from a copy belonging to Edward E. Ayer.

11. Royal decree ordering the teaching of Spanish in native schools.--From Barrantes's Instrucción primaria, pp. 80-82.

12. Conciliar seminaries.--I, from Colección de autos acordados, v, pp. 15-17. II, from Archipiélago filipino (Washington, 1900), i, pp. 343, 344; and Doctrina y reglas constitucionales de la iglesia filipina independiente (Manila, 1904), pp. 14, 15, 42, 43, and 67, 68.

13. Nautical school.--I, from Colección de autos acordados, i, pp. 318, 319. II, from Archipiélago filipino, i, p. 349; and Census of Phil., iii, p. 613.

14. Boys' singing school.--From Archipiélago filipino, i, pp. 349, 350.

15. Public instruction.--From Sinibaldo de Mas's Informe (Madrid, 1843), ii, no. 12.

16. Educational institutions and conditions.--From J. Mallat's Les Philippines (Paris, 1846), ii, pp. 239-253; from copy belonging to Edward E. Ayer.

17. Privileges granted to students.--From Colección de autos acordados, ii, pp. 128, 129.

18. Superior school of painting, sculpture, and engraving.--From Archipiélago filipino, i, p. 349; and Census of Phil., iii, p. 614.

19. Ateneo municipal.--From Archipiélago filipino, i, p. 343; and Census of Phil., iii, pp. 603, 604.

20. Educational suggestions.--From Vicente Barrantes's Apuntes interesantes (Madrid, 1870), pp. 218-225; from a copy belonging to Rev. T. C. Middleton, O.S.A.

21. Public instruction.--From José Montero y Vidal's Archipiélago filipino (Madrid, 1886), pp. 187-193.

22. Girls' schools in Manila and the provinces.--From Dominican report, 1887, copied from Census of Phil., iii, pp. 616-620.

23. School of agriculture.--From Reports of Philippine Commission (Washington), 1900, i, p. 39, 1901, i, p. 145, 1900-1903, p. 601; and Reports of Commissioner of Education (Washington), 1897-1898, i, p. 980, 1899-1900, ii, pp. 1625, 1626, 1902, ii, pp. 2233, 2234.

24. Government reorganization of education in the university of Santo Tomás.--From MS. belonging to Edward E. Ayer.