Chapter XVI: Part II (1)

Of navigation and commerce: the method for establishing them in these islands, and their great benefits.

Chapter First: In which it is demonstrated, with examples, that no power can make itself respected in the world without navigation and commerce.

1. I do not presume to utter new things, but to arouse the minds of Spaniards to follow the examples of the other nations, to which end I have drawn from the works on history, both ancient and modern, what confirms this idea. [This chapter is interesting, but the limits of our space make it preferable to omit most of it, as having but slight connection with our main subject; the following sections are worth retaining.]

17. In the fifteenth century was begun the manufacture of woolen stuffs [paños] in Inglaterra; for before that they sold (as we are now doing) their woolens to other nations, especially to the Flemings and the people of Brabant--from whom some seditious persons went over to the said kingdom, about the year 1420, and taught manufactures to the English. Monsieur de Thou, [139] however, attributes this establishment [of a new industry] to Queen Isabel [i.e., Elizabeth], and to the disturbances, on account of religion, in which the great Duke de Alva and the Inquisition of España were insulted--without having borne in mind, when he allowed his pen to move with the envious and bitter temper that swayed him, that, many years before the revolution of some of the seventeen [Netherlands] provinces which threw off the mild yoke of the Spaniards, the artisans of Lovaina [i.e., Louvain] had already introduced the manufacture of woolen stuffs in Londres.

18. The French, who in the opinion of Cardinal Richelieu were totally unfitted for commerce, have made with it and navigation the most felicitous progress, especially since the reign of Louis Fourteenth.

19. Nor must I omit the height of glory and power to which the empire of the Muscovites has been raised since the reign of the great Czar Peter. That nation was ferocious, barbarous, and slothful, and had no intercourse with other and foreign nations. That glorious monarch formed the design of civilizing the vassals of his Russian empire, and of turning their inclinations toward political affairs, the sciences, the fine arts, and the great advantages which result from so praiseworthy occupations; but [even] his uncommon intellect found no other means [for this] than that of navigation and commerce. But he went incognito to Inglaterra and Holanda, under pretext of renewing certain treaties, but in reality with the idea of gaining instruction in those two sciences, which were his only aim. In this he actually succeeded, by dint of immense labor and mechanical occupations, which, if apparently they were unworthy of a prince, were afterward (as they still are) those which most enhanced his glory. Not to linger over what is well known, I conclude with what is to my purpose: that the great Czar Peter established commerce in his empire, overcoming insuperable difficulties; and from the year 1697 (which is the real date of that enterprise) to the present time so marvelous has been the progress of that empire that its forces by sea and land, its wealth and products, its manufactures, its vassals transformed from barbarians into civilized beings, learned men, and politicians, yield to [those of] no other power--all being due to commerce, which in the short time of sixty-seven years has wrought these apparently incredible prodigies.

20. The Swedes and Danes [140] also have made much progress through this means; and the Portuguese, glorious in their conquests and discoveries, have constantly declined ever since they neglected navigation and commerce, regarding these as occupations unworthy of their nobility. [141]

21. Almost the same has happened to our España; what fear, what respect, what terror, did not our armadas inspire in the four quarters of the world? There was no power that could resist them; but, not to linger on the glories of our nation, I leave that to the histories which relate them--especially those of the reigns of the pious king Don Fernando, the Catholic monarchs, the emperor Don Carlos Fifth, Don Phelipe Second, and Don Phelipe Fourth, who certainly protected navigation and commerce. I will assert [here] only what answers my purpose: that our navy declined, our great manufactures in Sevilla, Segovia, and other places retrograded, and our commerce deteriorated, with the continual wars; and, as we did not repair this damage, we were at the same time promoting the commerce of the other nations. These have made themselves rich through our negligence and inactivity--selling to us all the more commodities the more we abandoned manufactures, and with their gains increasing their shipping the more that we gave up shipbuilding--until in these latest reigns our shipping and commerce were reëstablished. But it is necessary to extend our commerce further, in proportion to our vast domains; otherwise, we keep them greatly exposed [to danger]. For it has been now thoroughly proved that navigation and commerce have rendered formidable and terrible the forces and power of the nations who have practiced them, as also that from the decay or neglect of these activities has proceeded the ruin of kingdoms.

Chapter Second: Of the liberty of the Spaniards to navigate by way of the Cape of Good Hope

1. Some may think that this navigation is prohibited to the Spaniards by the treaties of peace, and that on this account we have not established a commerce like that of the Dutch, English, French, Swedes, Danes, and other nations. But it is certain that there is no such prohibition, and that our natural inactivity, laziness, and lack of application to commerce, has been the cause of our not undertaking the aforesaid navigation, which is equally free to us as to all the other powers. For the prohibition that the Englishman, the Dutchman, and the rest can lay upon us is, that our ships may not enter their ports, just as they have been forbidden to enter our ports; but they cannot hinder us from navigating in all the seas of the world, in accordance with natural right and the law of nations. That law does not allow the dominion of the sea to any power, according to Grotius, Heinsius, and others--contrary to the Mare clausum [i.e., "closed sea"], of the Englishman Selden, [142] who in regard to the dispute of the year 1653 defended the [English] dominion of the White Sea, and the right of forbidding this navigation to the Dutch; but they maintained their freedom with powerful fleets, and with the same arguments which justify the freedom which the Spaniards possess for navigating by way of the Cape of Good Hope.

2. As the Dutch have always regarded these islands with suspicion, fearing some injury to their own commerce, they likewise have striven in every way to make amends for the damages which they fear. One of these is the extension of our commerce, because it diminishes their own; and, in order to hinder it, they have sometimes chosen to avail themselves of article 5 in the treaty of Westphalia in 1648, and of article 10 in that of Utrecht in 1714--in which is confirmed the said article 5, wherein it is provided that "the Spaniards shall retain their navigation to the Eastern Indias, in the same manner as they enjoy it at present, without being authorized to extend it further; as likewise the inhabitants of this Low Country [i.e., Netherlands] shall abstain from frequenting the places which the Castilians possess in the Eastern Indias." From these expressions, and from the demarcation [made] by the supreme pontiff Alexander Sixth, the Dutch--who claim, by right of conquest, to enjoy the privileges and prerogatives of the Portuguese--try to argue that our ships have no right to navigate by way of the Cape of Good Hope, nor along the regions of Asia--the Coromandel Coast, Vengala, the Red Sea, etc.--intending that these Philipinas Islands shall be the limits of our navigation to the west.

3-8. [In section 3, it is shown that the demarcation of Alexander VI was made only to check possible disputes between the great Catholic nations of Spain and Portugal, and its provisions referred only to their discoveries of lands and isles, and not at all to the navigation of the sea, which no power can claim, "since it is not fitted for other dominion than that of God." Section 4 shows that the Portuguese and Spaniards have frequented each other's ports, without any difficulties arising between them over the navigation of those seas, which has not been and could not be forbidden to the Spaniards; and that even if the Portuguese had had any such exclusive right it could not pass over to the Dutch when they conquered the former nation in India, especially as privileges granted by the Holy See to its Catholic followers could not be claimed by Protestants. In section 5 it is asserted that the previously-cited article 5 of the treaty of Westphalia does not forbid navigation past the Cape of Good Hope, but only the entrance of Spaniards or Dutch into ports belonging to the other power; that navigation on the high seas is, "by natural right, free to all the world," and the object of the treaty was to protect both powers in their respective possessions and commerce. As further proof of this, Viana cites (in his section 6) the Hague treaty of 1650, and comments on it in section 7. In the following section he shows how the Dutch are claiming what was never granted by Alexander VI, who separated only the conquests of Spain and Portugal, and not their navigations in the high seas, a distinction which has been observed in the practice of both countries, "who have freely navigated and traded through all the seas of the East and the West." He claims that Japan and China "are, without doubt, included in the demarcation of Castilla."]

9. Equally within the demarcation of España are included the kingdoms of Siam, Camboja, Cochinchina, and, in the other direction, Borney, the Molucas, and the other islands of the Malays--as was declared in the year 1524, by the geographers appointed for this purpose by the crowns of Castilla and Portugal, to whose decision the respective sovereigns agreed. As for the prohibition of navigation, if the demarcation of Alexander VI were to have been observed, it was clear that the Dutch must admit the right of the Spaniards to prevent their navigation through the seas of the kingdoms and provinces here enumerated, as also through those of Japan and China, to which the Dutch ships go every year; or else that they have not any right to forbid to the Spaniards the navigation by way of the Cape of Good Hope. For by the admission of those very Dutchmen, in a letter which the governor of Batavia wrote to the governor here [at Manila], in regard to a balandra seized by the Spaniards in the island of Mindanao (which belongs to the crown of España, and is within the limits of the aforesaid demarcation), they say that the Spaniards could not enjoy dominion over the rivers and ports of Mindanao, and that only the authority of the petty king there ought to be acknowledged; and they add that it is lawful for any power to navigate there, and make observations on the situation of those lands and towns, and to trade therein with the vassals of the princes who possess them. This carries conviction [of the principle] that as little ought the Spaniards to recognize in Eastern India any other authority than that of the princes of the ports and towns where their ships make port; and that it is lawful to navigate through those seas, to reconnoiter those lands, and to trade with their vassals, as has been done hitherto. For our ships have gone to their ports, where they have been well received, as happened recently with the ship named "Guadalupe," in the past year of 760; and those who have come to this city, under various flags--Moro, Armenian, Malabar, Chinese, Siamese, and others--have met the same friendly reception.

10-11. [Viana asserts that, although "long use and immemorial possession may be a certain title to dominion over the sea," in such instances as that of the Venetians over the Adriatic, and the Greeks over the Ionian, this cannot be true of the claim made by the Dutch (as having conquered the Portuguese settlements) to the dominion of the great seas that lave India and Africa. These waters are too vast to be possessed by any one power, and have always been freely used by all nations. Moreover, the influence of Alexander VI and his successors had always been in favor of the Catholic monarchs of Spain, and of the preservation of the law of nations--"which presumption is taken for granted whenever for just cause temporal dominions are changed by the paramount power of the supreme pontiff." [143] He also cites Solorzano to support his contention. The final section repeats the statement that the Dutch cannot forbid the Spaniards to navigate through the seas of India, and past the Cape of Good Hope; and adds, "Would to heaven that we had the eyes to perceive the advantages of this navigation, which are the following." Thus he prepares for chapter iii.]

Chapter Third: Of the advantages of the commerce carried on by way of the Cape of Good Hope

1. The distance of these islands [from España] deprives our court often of news; occasions delays in the correction of so many infractions of law; retards all governmental measures; gives opportunity for the commission of many iniquities; discourages those who are zealous for the royal service; causes incredible expenses to the royal exchequer, and to the inhabitants of these islands; and detains the citizens here, as if in a place of banishment, [144] since they are not at liberty to return to España, nor have they means to pay the expenses of the long and grievous journey over land and sea, by way of Acapulco. All this would be in great part remedied by carrying on navigation and commerce by the Cape of Good Hope.

2. The clothing for the troops is brought from Mexico; it costs much, and serves only to kill the soldiers. If it came directly from España, it would be of better quality, cheaper, and more suitable for garments; and our [Spanish] manufactures would have this market.

3. The wine for masses comes by way of Vera Cruz; it crosses the entire kingdom of Mexico, and is shipped at Acapulco; and it arrives here with so many leakages, damages, and costs for transportation that it costs very dear--and sometimes it is mixed with water, to replace what the muleteers drink on the route [across Mexico]. If it came by way of the Cape, there would not be this uncertainty about celebrating mass and the wine would cost much less.

4. The iron which has been purchased here from the Dutch, English, and others at very high prices would cost much less if it came directly from España, and foreigners would not carry away our silver. I say the same of the lead, copper, gunpowder, balls, bombs, grenades, and cannons, which have always been bought from foreigners, on account of the negligence of the Spaniards--who, although they have [material for] all the said [supplies] within the islands, go outside to find it, for lack of application in working the mines.

5. The many thousands of pesos which the king has expended in the transportation of missions by way of Nueva España, the detention of the religious in the said kingdom in order to await the galleon (for which delay the king pays), and the amount that is contributed for clothing to the religious orders of St. Dominic and St. Francis, would have been largely saved, and can be thus saved in the future, if the said route be established. Among the ships of that navigation will come to these islands many belonging to the commerce of Cadiz, and on the other hand other ships will go to Cadiz from here, among which there will be many who will undertake [to convey], some one article and others another of the numberless commodities which can yield some profit. With this trade it will be known what the Philipinas are; our court will have more light [about them]; the infractions of law and the iniquitous acts, of which it will have accurate information, will be punished; and the measures of redress will not be delayed for four or five years, as is now the usual case.

6-7. [Viana (in section 6) reminds the government of the great advantage which the proposed route would give in sending news of an outbreak of war with any power, enforcing this by the ignorance of the Philippine colony, in the late war with England, of any hostilities with that country, of which Manila learned by the coming of the English squadron to attack that city. He urges (section 7) the lack of available shipping along the South American coast, and "the incredible amount of money which the equipment at Acapulco of the fragata 'Santa Rosa' (which by accident arrived at the said port from Perù) cost; and the injuries which would have followed to these islands if the divine Providence had not made ready the said fragata for our succor. Thus will be seen the advantage of the aforesaid navigation and commerce, for, without its costing the king any money, he will have in Cadiz vessels for carrying out the orders and despatching the succors and provisions which his royal compassion shall regard as expedient."]

8. Conducting our commerce from these islands to España by way of the Cape of Good Hope, the commerce of the foreigners must necessarily be diminished, and they will not obtain so much silver from us. In most years there come to the port of Canton, in the empire of China, twenty-four, twenty-eight, or thirty ships--English, French, Dutch, Swedish, and Danish; they carry our pesos fuertes (which is the money most valued in China and throughout India), and some European commodities, as fine woolen stuffs, and Brussels camlets [carros de oro] (which the Chinese use for their outer garments [145] in the winter-time), some pearls, and clocks, and much wine; cochineal [grana] from our own America, and the opium of India, are also two main lines of this commerce.

9. Such is the lading of the said ships, which return to Europa with chà or tea, and with some porcelain, some articles of furniture in lacquered or varnished wood, rosewood escritoires, and candlesticks and other articles of white copper; [146] and, finally, they carry a great amount of silk, both raw and in fabrics, which is their principal lading. The raw silk is used for the European manufactures, and with the fabrics they transact most of their trading. Each of the aforesaid nations has its agent in Canton, who during the year disposes of such goods as his ships could not sell; he furnishes to the Chinese the designs [for fabrics] which are every year invented, and they weave the stuffs of the same width as those of Europa. Afterward they sell these, as coming from Francia, Inglaterra, and other European countries, without any one being able to detect the fraud except those who have been in these islands--where it is notorious to all that this is true; and he who may doubt it will find this statement confirmed in the "Universal Dictionary" of Sabary. [147] A large portion of the said fabrics or stuffs come to Nueva España in our trading-fleets, and, although they are of the same quality as those which the galleons carry from here to Acapulco--with only the difference that the latter are wider and somewhat more lustrous than the former--there is a very great difference in the prices; for the mere name of "French" or "English" confers value and estimation on the said fabrics throughout the kingdom of Mexico, and the mere name of their being "Chinese" renders those which go by way of Acapulco of little value.

10. This fraud only the traders of Manila thoroughly understand, because they see it every year; the traders of Cadiz would be equally aware of it if they carried on commerce in the empire of China, as the foreigners do. They would also discover in the same way numberless small wares of Canton make which are sold in España as made in Londres and Paris, as is the case with the snuff-boxes of all kinds, whether gold or silver, or of tortoise-shell or other material; with lace-bobbins [palillos] of mother-of-pearl, ornamented with gold, and those of finely lacquered or varnished work, painted; and with various other curious articles of mother-of-pearl, ivory, etc.

11. All of these desirable articles, and many more, could be obtained by our ships, if they came via the Cape of Good Hope to these islands, which are on the route to Canton. At Cadiz they could take on cargoes of woolen stuffs, which here are used for riding caps and coats, [148] liveries, and in China for outer garments, as I have said; Brussels camlets, which both here and in that country are greatly used; wines (and thus the Swedes, who carry it from Cadiz to Canton, and the Dutch and the English--all of whom carry away our money, and make us pay sometimes a peso fuerte for a single bottle of red wine, and for that of Xeres--would be deprived of this [source of] profit); hats, which the foreigners sell to us at high prices; silk hose and thread under-stockings; mirrors; crystal chandeliers; branched candlesticks, and lanterns; vases, cups, and other kinds of glassware; European paper; thread for sewing; britannia linens, fabrics from Cambray, etc. (which are brought at much cost from Batavia); silver and gold galloons and laces, which also the Dutch sell (and would to Heaven that the great extravagance of Manila in this respect might be prohibited!); and numerous other articles, which persons who have a practical acquaintance with commerce can name better than I, and which, if used, would be recognized as highly beneficial.

12. Of course the said lines are of recognized utility and large profits, both for the Spaniards who may ship them by the said route of the Cape, and for those who will buy the goods in these islands, at more moderate prices. Above all, the profit would remain among Spaniards; our Spanish manufactures would have this additional market; we would succeed in stopping the foreigners from draining away all our silver. For it is an intolerable grief to good Spaniards that, when more than two hundred millions of pesos have come to these islands since they were conquered, there are not now found in them eight hundred thousand pesos in ready money. [This is] because our own inactivity and lack of application causes us to buy from foreigners the very articles with which these dominions abound, or which they bring from our own España--as is the case with the iron, the copper, the lead, the saltpetre; with the cinnamon, cloves, and pepper; with the wines; with the woolen stuffs; with the mirrors; with the hats, hose, galloons, and other articles, of which some are manufactured in our España, and others are produced in these islands.

13. The Spanish ships which make their navigation by way of the Cape could supply, as I have said, these islands with what they need, and carry from them to Canton many excellent products which the foreign ships cannot include in their cargoes. Such are birds'-nests, nacre or mother-of-pearl, carey or black tortoise-shell, indigo and dyes from Pampanga, balate, tapa, deer's sinews, hides, sybucao, ebony, lumber, and other things, which have a great consumption in China; on this account every year cargoes of these commodities are carried thither by the champans which come here to trade, and by the barks which depart from here for Emui and Macao. With these products, and with the commodities from España, the said vessels would ship at Canton the same goods that the foreigners are taking on; the royal duties at Cadiz would be the same; our manufactures would be greatly promoted; the profits would be as great [to the Spaniards] as the losses to the said foreigners; the products of these islands would be cultivated according to the market for them; and, finally, in time many other advantages and benefits would be made evident.

14. The said ships returning from Canton by way of this city, in order to pursue their voyage to Cadiz, could carry some products of the islands--such as very fine petates or mats, hats of the same kind, and cotton; tortoise-shell, palomaria; tamarinds, dragon's blood; manungal, [149] and jars of the same wood, which is very medicinal; various especial roots; gold; sibucao, which resembles brazil-wood, for dyeing; pepper, which yields very abundantly wherever it is cultivated; sugar, which does not cost here two cuartos a libra; dried candied fruits; and, finally, they would have the benefit of the cinnamon, with which our mountains abound from Samboanga to Caraga in the island of Mindanao; it would be the most valuable line of commerce. These mountains are in the same degree of north latitude as those of Ceylan, where the Dutch obtain all the cinnamon; and it is judged, on account of their location, that the quality of the cinnamon also is the very same. For in Ceylan likewise cinnamon grows that is thick and gummy, like that of Samboangan, and if the latter were cultivated like the former, it would be equally good. [150] The cinnamon of Mindanao will be as good as that of Ceylan if the king prohibits the latter in his dominions, and facilitates the consumption of the former; and if the Spaniards had begun to sell their cinnamon before the Dutch did so, ours would now be of better quality than theirs.

15. As soon as I arrived in these islands and had made myself somewhat acquainted with this subject, the inactivity and indolence of our people caused me much sorrow; for although we possessed this exceedingly rich treasure, there had been no one who devoted himself to its development. This I explained, among other things, to his Majesty in my report of June 5, 1760, showing what these islands could produce, the valuable products with which they abound, and the possibility of maintaining them without the situado which annually comes from Mexico. In the following year came Don Nicolas Norton Nicols, [151] who, it seems, proposed at the court the project for [developing] the cinnamon, and brought a royal order from his Majesty that he should be aided therein. I did so, with the utmost energy and readiness, and this famous and skilful Englishman began to make plantations in Caraga; people assure me that he would have carried this work to completion if God had not taken away his life, through the grief which he experienced at the attack on us by the English, from whom he expected no favor. It was necessary that a foreigner should accomplish what no Spaniard had done in some two hundred years; [152] he died on account of our misfortunes, and now there will be no one who will devote himself to the same enterprise; for these citizens have no thought of any further occupation than their everlasting laziness, nor have they the spirit to risk four reals, or any zeal for the nation.

16. Even without its cultivation, there is a wide market for all the cinnamon which comes from Samboangan. The greater part of it is used in these islands, for chocolate, and brings a very good price; for ragouts and for liquors, it is stronger than that of Ceylan; and it is being shipped, as for several years past, to Nueva España. In Samboangan no cinnamon is procured besides what the natives gather in order to better their wretched condition, but this produces a sufficient quantity. This is enough to prove that if the Spaniards would apply themselves to the cultivation of the cinnamon of the said mountains; to making new plantations, the bark of which, as being more delicate, would yield better cinnamon than that of Ceylan; and to gather what Nature herself produces, without any [human] labor: this commodity alone would be capable of enriching the islands and the Spanish commerce, and of annihilating that of the Dutch. The Dutch company supports existence, notwithstanding its many losses and obligations, on the cinnamon and [other] spices, fixing the prices of these at its pleasure, as being masters of this commerce--which indemnifies them for their losses on other things, and for the incredible costs of fortresses, troops, and [commercial] establishments in the aforesaid island of Ceylan (which would not be incurred in our cinnamon mountains).

17. The iron is another valuable product of these islands; there are mountains of this metal, the ores of which yield seventy-five per cent, only twenty-five per cent being lost in the fire. To judge from the abundance of ores in the said mountains, iron to supply the world can be obtained from them. Before the English came to attack us, the working of these mines was vigorously pushed; it was in charge of Don Juan Solano and Don Francisco Casañas. In less than eight months they established furnaces, coalpits, barracks, forges, and other facilities, and they mined a large quantity of iron; but everything was destroyed, as a result of the loss of Manila, because some malevolent persons went to plunder and destroy all the works. But it is absolutely certain that all the iron can be obtained [here] which the islands need for nails, plows, bolts, cannon-balls, bombs, grenades, cannons, and carajayes, and for other uses, which amount to more than one hundred thousand pesos every year, without the iron costing three pesos a pico. [It is also certain] that if this money remains within the islands--an amount of which hitherto the Dutch, English, and Chinese have drained us--they will become rich, and diminish the commerce of the foreigners.

18. The commerce in the iron that is necessary for these islands will alone produce, in fifteen or twenty years, more money than what they now have; and if the Indians were compelled to clothe themselves with the fabrics of the land, even with the little commerce that we have the islands would abound with silver. The trade with Nueva España in iron would be extremely advantageous to his Majesty; for the mines of Sonora and other provinces further inland cannot be worked, on account of the transportation from Mexico of the great amount of iron and quicksilver that is necessary; and this, and the expenses which are added for the conveyance of silver to Mexico, leave very little profit to the miners.

19. In carrying the iron from these islands and the quicksilver from Peru to Acapulco or to La Navidad, these effects can be transported in small vessels, and with little expense, to the coast of Guadalajara; they will cost less than if purchased in Mexico; at least thirty or forty pesos will be saved on the transportation of every arroba; and, if on the return trip by the same route the silver is embarked for Acapulco, there will be a great saving of freight in the transportation of this metal.

20. Let a computation be made of the money which must have gone out from the islands since their conquest, in order to purchase the very products in which they abound, and the amount will be incalculable for the items of cinnamon, iron, saltpetre, and other products. Let also computation be made of what the outlays must have been for purchasing wines, mirrors, and the other things which, as I have stated above, could be brought directly from España; and it will be seen that by our own fault we have enriched our enemies, and that we could have annihilated their commerce and increased our own with only the sources of gain which are pointed out in the present exposition. Then let us, even though it be late, have the discernment to avert our total ruin, by striving, with glorious emulation, to secure the greatest prosperity for the Spanish nation.

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

1. By a royal decree dated at Sevilla on March 23, 1733 (in which the project was carried out which was approved by his Majesty on April 26, 1732), there was established by our lord Don Phelipe Fifth, of undying memory, a company with the name of "Royal Company of Philipinas," [153] under fifty-eight articles and stipulations. These were full of the most unusual privileges and liberties that can be granted, and were even more advantageous to the Spaniards than those which Louis Fourteenth granted to the French for their Oriental Company; but I do not know exactly for what reason--some attribute it to the loss of Torres's trading-fleet--the paternal affection did not prove effectual with which our beloved king and sovereign took an interest in making the Spanish monarchy prosperous by the extension and promotion of commerce (the only means for securing wealth), imitating the examples of almost all the nations of Europa, who, in order to become rich, have established their companies in the Orient.

2-12. [In these sections Viana expands this last statement, enumerating the nations who have enriched themselves by the Oriental trade, and the companies formed in each for this purpose. First were the Genovese and Venetians, who traded with India by way of the Red Sea; they were afterward driven out of this trade by the Portuguese, in consequence of the discovery by the latter of the route via Cape of Good Hope. (Section 3.) "Portuguese trading-fleets of thirty ships came to the commerce of India every year, and for Brasil alone sailed fifteen to twenty ships laden with merchandise from India--besides others which carried on trade in China, Japon, Persia, Arabía, Mosambique, Melinda, Sofala, and other regions. But now that commerce is so reduced that only one or, at most, two ships sail from Lisboa yearly, which would not be the case if they had established a company with adequate capital, which is the only way of making commerce lasting." The Dutch at first bought spices from the Portuguese, and then resold them at a huge profit to the other European nations; but Phelipe II prohibited the spice trade to Portugal, and the Dutch therefore formed a company to operate in the Orient, and trade directly with its peoples. As finally constituted in 1602, this company had (section 6) a capital of 6,600,000 florins ("according to Savary"); and "in less than four years the members received the principal of their shares with the great profits which they obtained." At the time of Viana's writing, the Dutch company were maintaining "twelve thousand men, regular troops, in their twenty-five fortresses in India, and were able to equip 30,000 militia in their colonies, especially that of Batavia" (Savary). Viana cites another authority, Samuel Ricard, who places this militia force at 100,000, and states that the company employed in the Eastern trade more than 160 ships, each carrying thirty to sixty cannon, besides forty ships of the line (which number was increased in time of war). This enterprise ruined the commerce of the Portuguese (who had been the first to open the sea-route to India); "from that time until now it has steadily diminished, and is the poorest in all India; this has been the result of their not having formed a company with capital, and with respectable forces to oppose the conquests which the Dutch made. For they had a better opportunity than the latter, and it would have cost them less to maintain a flourishing commerce, as was that which they already possessed, than it cost the Dutch to establish a new commerce by dint of money, conquests, fortifications, and enormous expenses." The English company (section 8) sent out its first fleet (of four ships) in the year 1600; its capital was 369,891 pounds sterling. After various fluctuations of fortune, it was reëstablished in 1698, and attained great prosperity, so that its capital had increased to 1,703,422 pounds. In Viana's time, "the ships from Madrast for London (more than fifty in number) carry annual cargoes of five to six million pounds, according to the estimate of Sabary; and, taking into consideration the increase which this commerce has had since he published his famous work, the 'Universal Dictionary,' it must by this time be worth some ten millions. This does not include the operations of the private English traders who traffic among the colonies of India; this may be inferred from the duties which they pay in Madrast, which, at the rate of five per cent, produce for the company 80,000 pagodas. This sum amounts to 120,000 or 130,000 pesos, estimating the pagoda at twelve and sometimes thirteen silver reals." The English company were maintaining in constant operation 150 ships and fragatas, and more than fifty smaller vessels, employed in their commerce between India and London alone; to the great expenses of this navy must be added those of the company's forts and garrisons in India, which indicate how enormous were their profits. An Englishman told Viana that the king of England was owing to the company more than 36,000,000 pesos, the amount of loans which they had made to the crown in various emergencies. The Oriental commerce of the Dutch was further encroached upon (section 11) by the trading companies formed later in France, Sweden, and Denmark, and proposed in Prussia; [154] these were protected and fostered by their respective governments. The commerce of the Dutch "would have been ruined if it were not for their being exclusive owners of the spice trade--of which only the Spaniards are able to deprive them, since we have in these islands cinnamon, pepper, cloves, and nutmeg." As all those nations maintained forts, garrisons, and war-ships, the necessity of opposing these armaments with like forces has imposed on the Dutch enormous additional expenses. Viana says (section 12): "I know not what reason there can be why that which is so beneficial to all the powers should not, with even greater cause, be an advantage to España, which holds her conquests in peaceable possession, and has valuable products in her dominions; moreover, she has forts and ports which at little cost can be rendered impregnable, and better opportunities than any other nation for a very flourishing commerce. Yet she labors only to enrich her enemies, abandoning to them the commerce which our people are unwilling to carry on, and surrendering to them our treasures and wealth, in exchange for the greater part of the commodities and products which our own lands produce."]

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

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

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

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

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

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

19. There are also other advantages, worthy of being known, which render the above-mentioned project more feasible. One of these is the abundance of timber for the construction of ships; at least ten ships can be built every year in these islands; and, by taking care of their many forests, even if a hundred ships were built now there would be enough timber left to construct every year the ten that I have mentioned. The Viscount del Puerto greatly praises (in book 9, chapter 10, article 2 of his Reflecciones militares [155]) the project of a friend of his (whose name he conceals) for forming a company in these islands; and among the products which it yields he mentions the timber called tiga (it is not known here by this name), extolling its strength, and setting forth the advantages of carrying this wood to España as ballast for the ships.

20. This wood (of which, according to the said author, the strong ships of Philipinas are built) is in my opinion the teca [i.e., teak], which comes from the Coast; or that which is known here (and I am inclined to think that this is meant) by the name of molave. This abounds in all the islands, and is so compact that it petrifies in the water, which I myself have seen; of it are made the ribs of the ship's frame, the knees, and all the principal timbers that strengthen the ship. The keels are made of another wood, equally strong, which is called guijo; it never rots in the water, nor does the boring worm, which is bred on the ships in the port of Cavite, penetrate it. There are other woods as useful as the guijo, and among them is the dongon, which is better. As a rule, the lower masts are made from the mangachapui, which is another timber of especial value; for, although it is somewhat heavy, it never splinters, and is very elastic. The yards and topmasts are of palo maria; and for whatever is made of boards the lavan, the banaba, and the tangili [156] are also used, from which kinds of wood very long and broad planks are obtained. There are pines here, and various other kinds of trees, which can be put to the same use; and plantations could be made of the teca tree (the wood of which lasts more than a hundred years in the water), for there is more than enough land for this purpose in the vicinity of Manila and Cavite. Likewise, sawmills could be built, in order to save the expense of [hiring] sawyers; also dry-docks, for careening the ships and preserving them under cover.

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

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

23. The [fiber for] black cordage (known as cabo negro) [157] is obtained from a plant which they call gamù, very similar to the coco, and it is a veil which covers the entire tree, from the top down; it grows out between each pair of leaves [entre òja y òja] of the gamù, like long hair, or tufts of hair. It is exceedingly harsh, and for this reason it is used only for cables, of all sizes, and to some extent for tackle and rigging; and there is nothing with which to compare its strength. It lasts many years, but it is necessary to keep it either under water, or uncovered, where the dew and the rains bathe it; and in dry weather water is thrown over it, either salt or fresh, for its better preservation; for if it stands in the sun and wind, without these precautions, the threads break, and it loses its extraordinary strength. It is also preserved by keeping it in a shady place, where the wind strikes it but little. These two kinds of cordage are exceedingly abundant in these islands.

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

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