Chapter XVII: Part II (2)

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

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

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

29. In order not to be prolix in relating other advantages which the companies in general possess, as compared with the commerce of private persons, I refer to those which are set forth by the distinguished Don Miguel Zavala (in his celebrated memorial [158] to Phelipe V of blessed memory), whose authority alone would be sufficient in order that no means should be neglected for establishing the aforesaid company in these islands; and I pass to other advantages which the said author explains. But first I will point out what relates to the fortunes in the Indias, which do not pass to the grandsons; this is accounted for by the vicious way in which the creoles, as a rule, are reared--the indolence and vices in which they are brought up, and the luxury and prodigality to which they are accustomed from childhood. If these fortunes, or the greater part of them, were [invested] in the company, they would not be so easily wasted; and, even if the sons should save nothing from the profits, they would keep the principal which their fathers might bequeath to them in the aforesaid company. Or, in case there were some persons so reckless as to sell their shares, others would buy these, and the commerce and its gains would always remain for the benefit of the Spaniards.

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

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

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

33. The cacao is very abundant and cheap, and if it could find a market in other colonies and kingdoms the crop of it would be still greater, because the Indians would devote themselves to its cultivation. [159] Entire groves of the coffee-tree could be planted, since it yields fruit everywhere; it is milder than that of Mage [i.e., Mocha?] and its fruit is gathered in the year when it is [first] planted, on account of the richness of the soil. Rice and wheat, if the natives applied themselves [to cultivating these], as they would do if they had a market for them, would be sold at good prices throughout China (where these grains are scarce), in Cochinchina, in Siam, in Camboja, in Pegu, and sometimes in the Malabar and Coromandel coasts. Wax--of which these mountains are full, and which is sold by the infidel Indians who inhabit them--has a great consumption here, and much of it is shipped to Nueva España; and if it were bartered for cloth, as was said above, it could be procured in greater quantity. Tobacco, oil, and sulphur are very abundant. Horses are valued in the said coasts, and, although there are many of them in these islands, there would be more if the ranchmen had a better sale for them; for at times they are accustomed to kill the horses, in order to dry their flesh and sell it. Carabaos and deer, whose flesh is likewise dried, yield some pesos. In fine, the following are recognized articles of merchandise in different places in China, Cochinchina, Camboja, and Siam: sugar, rice, cotton; indigo, dyes, sibucao (a sort of Brasil-wood), deer's sinews, pepper, black tortoise-shell (called carey), nacre shells (or mother-of-pearl), [160] birds'-nests, ebony; tapa (or dried meat), balate and camaron (both which are shellfish), and bonga; cables of cabo negro--all of which commodities these islands produce. [To these must be added] cochineal from Nueva España, fine cloths and camlets from España; lead (which also is produced by these islands, although it is not mined), and other articles, as stated above, of which better information will be given by practical merchants.

34. For Vengala, the Coromandel and Malabar coasts, Persia, Zurrate, and other parts of India, are found useful indigo, sugar, sibucao, sulphur, siguey, birds'-nests, cotton, rice, gold, and horses; and, in one word, all that has been said in the preceding chapter (speaking of the private commerce which could be carried on via the Cape of Good Hope) ought to be understood, with greater reason, of the commerce which can be carried on by the company of which this chapter treats. For this reason I omit what I said there of the cinnamon and other products which the company could develop, with its funds and systematic arrangements, better than an individual could; for the latter may die, and the former continues perpetually to carry on the enterprises of manufactures, mining operations, the cultivation and promotion of crops, and the exportation of all these to foreign kingdoms and colonies. For all will be successful in these islands with the Indians, who, if well paid, will do what they are ordered to. [161]

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

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

37. If there were any chemist and herbalist here, this likewise would be an immense aid for making further discoveries and experimenting with many trees, roots, herbs, and medicinal stones. For instance, the narra; [162] in cups made from the wood of this tree water becomes, in a very short time, of a most beautiful blue color, and people say that it is useful for curing obstructions; the wood called manunga, which is extolled for its remarkable virtues; the seeds of the catbalonga, or St. Ignatius's kernels, which are already known and esteemed in Europa; the shell in which the cocoanut grows, in which water soon becomes exceedingly bitter; bezoar stones; and innumerable other articles from which homely remedies are made here, among the Spaniards as well as among the Indians. The latter make much use of the remedies produced in the islands, and know some, both herbs and woods, which cure the most hideous and bloody wound in twenty-four hours. The rhubarb [163] may be smelled [sehuele] in many woodlands, and no one is acquainted with it; the herb of Calamba is especially good for preventing, by [the application of] its juice, the bad results of a blow or fall. More than all, in the mountains of Mindoro there is a tree called calinga, the bark of which has a delicious odor, which smells like cinnamon, cloves, and pepper all combined; I made a small quantity of chocolate, using the said bark powdered instead of cinnamon, and it was very pleasing to the taste. In the ship "Santissima Trinidad," which the English captured, I was sending to Madrid some lozenges and many pieces of the said bark, which is a delicious flavor for seasoning ragouts; and I have used it in my household. Señor Anda also sent to Madrid the aforesaid bark, and, I think, chocolate made with it powdered. So great is the abundance of these trees that there are mountains, many leguas in extent, which produce them.

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

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

40. Since I have been in Manila, I have seen only the traders from Canton and Emui in China visit this port, [164] except the ship "Guadalupe," which went to the [Malabar?] Coast; and through its captain and officers I have heard of the friendly reception which they met in all the ports of India. But in other days the commerce of this colony was more extensive. In China it was established in the year 1598, and has been maintained without interruption; the king of Camboja asked this government for aid, and it was sent to him in the year 1594, leaving commerce with that country established. In the same year the king of Siam sent an embassy to open commerce with these islands, and in 1599 the said commerce was actually begun, by vessels which went from these islands, and which came from Siam, with which country the Spaniards have maintained the most friendly relations. This was recently experienced in the case of the ship which was built there in the year 53, by order of our governor the Marques de Ovando, who sent thither letters for the said king of Siam; and the latter, in virtue of these, furnished a sufficient sum of money, and gave all the other assistance which they asked from him. In the year 718, the same king of Siam granted a piece of land, in order that the Spaniards might establish a trading-post there.

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

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

43. I will conclude this chapter with the authority of the celebrated Don Geronimo Ustariz, [165] who, although he disapproves the commerce [managed] by companies in España and the Americas, considers it expedient in these islands; and indeed, when his arguments against the establishment of the said companies are examined, it will be seen that they do not apply to this commerce--where, on the contrary, it will be seen that not even the least progress can be secured, unless the company of which I am speaking be formed.

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

Chapter Fifth: Of the extension which the commerce of the aforesaid company can enjoy

1-3. [Viana makes remonstrance against "the limitations and restrictions with which the commerce of the Spaniards is established." These only enable foreigners to compete with them to greater advantage, and increase the gains of foreign traders. He adduces the examples of other nations in support of his position that commerce ought to be extended and freed from restrictions, as far as possible; and complains that Spaniards only are forbidden to trade with each other, in the colonies of that monarchy. (Section 3.) "The argument for this is apparently founded on the exportation of silver, and on the opposition made by the merchants of Cadiz, who are misled by foreigners, and that of the officials at Acapulco, who find their advantage in the said limitation. Those merchants are always inveighing against the injuries that result to their trade, and the check to our [Spanish] manufactures, with which arguments they have always tried to bring about the ruin of this [Philippine] commerce; but I will see if I cannot overthrow these arguments."]

4. All the silver that is coined in the dominions of España comes to a halt in foreign kingdoms, among our greatest enemies. The treasures of the Indias pass through the aqueduct of Cadiz, without leaving even a trace on the conduits of the Spanish merchants, as can be demonstrated by [comparing] the riches that the Indias have produced, and the poverty of the Spaniards. Upon this point I refer to what Don Miguel de Zavala says in his memorial; and that which the celebrated Macanaz has written on the same subject ought to be printed on plates of gold, or, better, in the hearts of our sovereigns and their ministers of state, in order to cure the wounds of their vassals with the remedies which he proposes. For if all the silver is carried away from the dominions of España, what more will she have, whether it go by way of Acapulco or by way of Cadiz? I assert that in Cadiz the commerce of the foreigners is greater than that of the Spaniards: the latter (with the exception of some strong business houses, which have been built up in this century) support themselves by being figureheads [166] for the former, who cannot possess the commerce in their own behalf or in their own persons. This is disclosed by the "Universal dictionary of commerce," in praising the good Catholic Spaniards in this illicit mode of carrying on business--which is the same as regarding them as being, even if not traitors, at least disobedient to their king. Here is seen the interested motive for [the claim] that the silver should not be exported by way of Acapulco, but that all should go to Cadiz, into the power of the foreigners--who are the ones who, in reality and with hidden hand, have always made opposition to this commerce of Manila.

5. Those who carry away the silver from Acapulco are all Spaniards, and the greater part of it accumulates in the empire of China, which has not waged war against us, nor will she do so, with the gains that we allow her; but those who carry away the silver which reaches Cadiz are the foreigners, and it is going to remain with the powers who are harassing and ruining us with our own wealth. Let these points of difference be compared, and decide whether it is not a weak argument, that of the export [of silver from Nueva España], against which so much clamor has been made by the commerce of Cadiz--or, to speak more correctly, the convenience of the foreigners--and I believe that it will be outweighed, not only by the loss of the royal duties which are yielded to the royal treasury by the silver which goes to Cadiz, but by the injury that is caused to us by the profits which we furnish to the foreigners. Moreover, the silver carried away from Acapulco can yield the same [amount in] duties, in order to avoid the aforesaid loss, if it be considered of much importance--which it is not; for even if two millions of pesos were carried away each year, and the royal treasury deprived of the duties thereon (for which privation there is no necessity), that is not a sum which merits the great opposition, if not bitter hatred, of the commerce of Cadiz for this poor commerce [of Manila].

6. The other argument, that of the retardment which our manufactures of España would suffer [in competition] with those of China, is as easily overthrown. It is certain that our factories cannot furnish all the goods which are consumed in our dominions, and that on this account the silks, fabrics, hose, ribbons, etc., of other powers are allowed entrance therein; and what more need is there, in the case of these wares than of those of China, for declaiming against the injury which the latter, but not the former, occasion? There is no further difference except that the Spaniards trade with one class of the goods, and the foreigners with the other. Against the foreigners there is no one to raise objections, as some of them do against our own people; and as in these clamors there is no mention of the name of Englishmen, Frenchmen, Dutch, Swedes, Danes, Irishmen, etc., but [only] of the commerce of Cadiz and of its Spanish traders, the motive for this opposition is better hidden, the injury which they exaggerate is more readily believed, the minds of people are preoccupied with impressions of this sort; and the commerce of Manila, which has neither capital nor fame nor authority, and not so much influence as that of Cadiz, is the one which always suffers, which is permitted [only] with restrictions, and which cannot repair the damages experienced by the merchants of Cadiz without knowing them.

7. Before this, I had already mentioned the great amount of silk, both raw and woven, which foreigners bring from China, and that with this they supply their own manufactures, and [likewise] obtain money from us by selling in España the fabrics from Canton as if they came from Paris, Londres, Amsterdam, etc. Is this, or is it not, detrimental to our manufactures? and, if it is, why is not an outcry made against it by the merchants of Cadiz? They will say that it is impossible to prohibit this commerce, while our own manufactures are in so backward a condition; but why will this argument not avail the Spanish merchants of Manila? They will say also that the foreigners introduce into España not fabrics from China, but those of their own manufacture; that, whether it be from one country or from another, the injury to our manufactures is the same. But what cannot be denied is, that the foreigners who obtain so great an amount of silk from China trade it in our dominions, and that we cannot do the same in order to deprive them of those enormous gains. If, then, the company of Spaniards were formed in these islands, they could convey from China a great deal of raw silk for our factories, and many special fabrics which would be of as good quality as those of Europa; they could furnish them more cheaply than the foreigners do; and, above all, the profits would remain among the Spaniards. Our commerce would steadily flourish; we would have more ships, to make our dominions safe; the marine service would be increased; and necessarily there would be diminution in the commerce of the foreigners, for which our deluded Spaniards are pleading.

8. The royal duties will be the same, if the silk and fabrics of China are carried by our ships of the company, as if they were carried by the foreigners; and even if the kindness of our sovereign makes some reduction [in the duties], in order to favor the said company and subvert those that are hostile to it, other advantages, of greater importance than the aforesaid duties, will result to the crown, in the certain knowledge that, in the present state of things, that is prohibited to the Spaniards which is allowed to foreigners--that is, the introduction of goods from China which are difficult to recognize in España, on account of the facility with which European fabrics are imitated in Canton.

9. By allowing to the aforesaid company the importation of Chinese goods into España, while the prohibition to foreigners remains in force, the trading-fleets and galleons will be supplied; and these commodities will be purchased less from foreigners, in order that our own manufactures and commerce may gain some growth.

10. All the silk which our company will put on the market will diminish the amount sold by the foreigners; and if they have not a market for this commodity they will take on smaller cargoes of it in China, Cochinchina, Canton, Tonquin, Tripara, Bengala, and Achem, and the said company will find it easier to purchase the silk. Before the nations of Europe carried away the silk from Canton, it could be bought at very low prices; but since they began to carry on this commerce--which was in the year 1685, in which the emperor of China opened his ports to all nations--up to the present time, the prices have risen more than three hundred per cent, as some merchants of this city have informed me.

11. In the six years that I have spent in Manila, the [price of] silk has risen every time; and because so much was being sent out of the country [of China], the emperor forbade, under the most rigorous penalties, the exportation of this product--of which an enormous amount is consumed in his empire, where it was already becoming scarce in the year 759--that it might be used by his vassals, whom he regards with the most extraordinary affection.

12. Finally, when the merchants of Cadiz become shareholders in the said company there will be no more talk of the export of silver by way of Acapulco, or of the injury to our manufactures from the fabrics of China; or the only ones who will cry out against it will be the foreigners connected with the said commerce [of Cadiz], when their names are made known, for they will not [then] have Spaniards to talk, as the saying is, "through a goose's mouth." If it shall be considered expedient (as it seems to me it is) that the aforesaid company may ship freely, and without any restriction, such wares as it shall think best to the kingdom of Nueva España, the royal duties can be so adjusted that the royal treasury will not suffer a great loss, under the certainty that the goods of the said commercial company will all be duly registered, as also the silver which they bring in return; for its directors will possess no authority for anything except what is according to the rules in the like method of commerce. This legality in the declarations [of goods shipped] will result in great benefit to the aforesaid royal duties, even though these be more moderate than the duties which are exacted from private persons whose greed for gain urges them to convey, and to bring [here], many contraband articles.

13. For greater security on this point, it could be so regulated that there would not be the slightest uncertainty, by causing the agents or directors whom it will be necessary to have in this city, to write out the invoices of what they ship, according to the entries in their cash-books, and the same with the silver and the goods that are brought back in return--information of all this being sent from here to the officials at Acapulco, and reciprocally from that port to the officials at this capital, in order that on each side any possible infraction of the law may be known, and those engaged in the commerce be restrained from committing such. This exhibition of invoices and the returns in silver can be compared with the statements which the directors of the company will furnish, in order to ascertain whether the former agree with those which will be contained in the said statements. I take for granted that in the presentation, examination, and approval of these accounts there will be the supervision of some person appointed for that purpose by our sovereign--whose royal and benevolent disposition will, it is to be believed, place some capital in the company that I have mentioned, as a foundation for this great work; and in this case it is hardly possible that the least crevice will be found by which the royal duties might suffer loss.

14. The nobility of España, from the highest rank down; the guilds of Madrid, who now form a commercial body of much importance; all the merchants of España, the kingdom of Mexico, Peru, and these islands; some foreigners; and many religious communities which have set aside the produce of their funds for pious purposes--all these will, without doubt, become shareholders in the aforesaid company, if they are convinced of the benefit of this commerce, and of the prosperity which will ensue to the Spanish nation; and when the said merchants have their gains by means of these seas assured, and a means of supplying the kingdom of Mexico with a great part of the goods which its people need, without the burden of the royal duties, it is certain that they will not desire to purchase foreign goods, except at such advantage as will prove detrimental to the foreigners.

15. It is also evident that the aforesaid company will be able to furnish its commodities at lower prices than the foreign companies do; for it does not have to incur so many expenses in maintaining troops, fortresses, etc., as do the Dutch, English, and French; nor will the costs of the navigation be so great, because the voyage is shorter. Moreover, the purchases will be [made] in China, at the same prices as those of the said foreigners; and consequently, the company transporting its merchandise to España, and being able to furnish goods at more reasonable prices than the foreigners do, for these reasons the profits will be greater and the losses of the foreigners more certain. By carrying the goods from these islands to Nueva España, the company will hinder the illicit commerce of the said foreigners, who in sailing from India to Europa, and from Europa to their colonies in America, must incur more expense than the said Spaniards, and will not be able to furnish commodities at the same prices as the latter can.

16. The English who come to trade in China carry these goods to the ports of Inglaterra, pay there the duties on them, and afterward ship them to various regions--among these to Jamayca, from which island they carry on a very extensive illicit commerce with the Windward Islands; with Nueva España, through Honduras, and by way of the coasts of Campeche and Vera Cruz; and with Peru, through the colony of Sacramento, and various other places. The number of laden vessels which enter Jamaica every year exceeds five hundred; and by this can be estimated the value of the goods which are [thus] disposed of (for all of these are carried into our dominions), and the great amount of silver which they carry away from us, thus causing loss to the royal duties of his Majesty--which, in proportion to the said goods and the money which they produce, would be very large.

17. Sabary, whom I have cited, estimates at eight millions of pesos the illicit commerce which the English carry on, from Jamayca alone, with the Spaniards of America; and he states, to the discredit of our nation, that all the ministers and officials, from the highest to the lowest, proceed by agreement to defraud the royal duties, and to become rich at the cost of what they seize from the royal revenues.

18. Probably no less is the amount of the fraudulent commerce carried on by the Dutch from Curazao; and much greater is that which is conducted by the two nations (and even by the French) in Puerto Rico, Cartagena, Buenos Ayres, Campeche, Honduras, Portovelo, Caracas, Guayaquil, and the Canarias Islands, and the other ports of the Windward Islands and the two Americas--as also is made known by the same author whom I have already cited, besides what we all know.

19. The new and very extensive territory which the aforesaid English now possess in North America, and on the Mexican Gulf as far as the Misisipi, renders this illicit commerce much easier for them by means of that coast, especially by way of the new Santender, [167] which has a good harbor for vessels of moderate size, and many rivers; it is not far distant by land from Cretaro [i.e., Queretaro] and other rich cities of Nueva España, and by sea it is not far from Vera Cruz. With these great opportunities, the illicit commerce can be pushed to the utmost; for the ambition and covetousness of the trader despises no means which may bring him profit.

20. The commodities which the English illegally introduce [into our colonies] must necessarily be cheaper than those which go in our trading-fleets by way of Vera Cruz, for the latter pay many duties, and the former none; and the very English who sell in Cadiz to the Spaniards, paying their duties, sell the same commodities in Nueva España at a lower price than in Cadiz. Therefore, if some efficacious remedy be not applied to these illicit importations, I think that our commerce will be ruined; that our trading-fleets will experience great losses; that the royal duties will be diminished; and that in Nueva España the illicit commerce will reach an even greater extent than in Perù. But it also seems to me that if the commerce from these islands to Acapulco is free to our company the aforesaid losses can be in great part averted, for the following reasons.

21. When the foreigners (and especially the English) obtain so much silk, both raw and woven, from China we must believe that they find this commerce profitable, and that the said commodity is very cheap in the said empire, compared with the prices of silks in Europa. The profit is more obvious in the woven goods, because the infinite number of people who inhabit China, and the abundance of workmen in every kind of occupation, cause their manufactures to be exceedingly cheap--as all of us who live in this part of the world know by experience, who every year send to Canton commissions for many articles, because they cost us less than to make the purchases in this city. For instance: The Chinese and the Spaniards carry silver from here to Canton, where it is worth three per cent more; and nevertheless a snuff-box, a salver, and other small articles of silver cost less there than when made here to order--which shows the great saving of [cost in the] manufacture which results from the great abundance of workmen, as I have said.

22. This advantage which the English have through the commerce of Canton--to which port usually come every year thirteen or fourteen ships--can also be enjoyed by our company; and, buying at the same prices [as the English]; it can sell its goods at lower prices in Nueva España, even after paying the royal duties. For the English are obliged to make longer and more costly voyages, as is that from Canton to Inglaterra, and from there to España and Nueva España; while the Spaniards will sail from here to Acapulco. The former pay royal duties in Inglaterra, and the latter will pay these in Acapulco, saving the expenses of the second voyage which the English make, to their colonies in America. Finally, the Spaniards are not obliged to maintain, at so great expense as do the English, fortified posts and many troops, which are supported by their profits; for these reasons, the latter will not be able to sell their goods at the same price as that of the Spanish company. Consequently, they will not make illicit importations [into the Spanish colonies] of silks and [woolen] fabrics; and even those of their linen goads (which are most to be dreaded) can be diminished with [our importations of] the light linen goods of China [liencesillo] (which are used in Nueva España), with "elephants" and other goods from the coast, and, in due time, with the cotton cloths which will be woven in these islands. Here there is abundance of cotton, and of people for its cultivation and manufacture--especially if some masters in this art come from España, or, in case that fail, from the Coromandel or the Malabar coast; and if among the Indians be introduced the spinning-wheels which are already in use in the manufactures of España.

23. From all these arguments it will be possible to conclude whether they are as well adapted to free commerce [of these islands] with the kingdom of Peru, and to that which the two Americas can mutually and reciprocally conduct between each other, in order that all the vassals may have a share in the extension of the commerce which hitherto has been prohibited to them; that the products of all the provinces may be increased, by the market which will be provided for them; that the Southern [i.e., Pacific] coasts of the said Americas may have an abundance of vessels; that they may mutually aid and defend each other from enemies; that by this means all our dominions remote from España may be more securely preserved; that our silver may have wide circulation among the Spaniards, who, occupied in this lawful traffic, will not expose their money to the risks of the illicit commerce; that the commerce of the foreigners may be diminished, without the least loss to the royal exchequer in the duties from them; and, in fine, that with the gains [from this commerce], and with the decreased exportation of silver to the foreign kingdoms of Europa, the prosperity of our monarchy may begin, and it may come to be the most worthy of respect in all the world, with the extension of its commerce--which is the sole and only means of attaining success; for no other means has been found more effectual, by either ancient or modern geniuses.

Chapter Sixth: Of the difficulties which the aforesaid company will encounter, in order to establish and continue its commerce; and of the method for preventing these.

1. The difficulties and inconveniences which the celebrated Don Miguel de Zabala mentions, and the manner in which he entirely removes them, ought to be borne in mind in this chapter (like all the rest that that great man wrote), in regard to the establishment of our commerce through companies, in order that by the said work, and by what I have set forth, even the dullest person may be convinced of the usefulness of the Spanish company in these islands. Notwithstanding that the principal difficulty, and the only one to be feared, is the efforts of the foreign powers, I will copy exactly the remarks of the said author, for perhaps not all those who see this document will have [opportunity to see] them; and I cannot dispel these fears with arguments more weighty, or persuasion more effective.

2-18. [Zabala admits the danger that other powers, angered at the loss of their gains through the success of a Spanish company, would endeavor to destroy it; but he regrets the timidity of the Spanish merchants, who allow themselves to remain at the mercy and dictation of foreigners. The Spaniards would readily take measures to end this, if entire secrecy were possible, but they fear failure if their intentions are known by the foreigners. They should remember that not only are the Spanish colonies in the Indias strictly forbidden to trade in any way with the other powers, but that the latter themselves had consented to these arrangements, which España had a right to make for her own colonies. Those powers will not seek by force the ruin of Spanish commerce, as that would be too costly an enterprise, but will endeavor to gain this end by craft and intrigue. If a Spanish commercial company were formed, its larger capital and more extensive business would enable it to withstand losses which would ruin private persons. All of these considerations should relieve the fears which check the free and wide operation of Spanish commerce and thus keep it within the clutches of foreign traders. Zabala urges the formation of Spanish companies for commerce, on which must depend the security of gains therein and the prosperity of España.]

19. It is hardly possible that the nations of Europa will unite to hinder the company of these islands. The Dutch will not fail to appear with their pretended right of authority to prohibit to us the navigation by way of Cape Good Hope; but with the arguments which are presented in chapter 2, part ii [of this memorial], and those which our wise ministers of state can bring forward in favor of our well-known right in justice, the said Dutch will find themselves obliged to admit it, or they will fear the injury which we can inflict upon them by hindering their commerce in China, Japon, and other regions which are included in the arbitrary division and imaginary limit made by Pope Alexander Sixth.

20. On the other hand, likewise, the Dutch recognize and fear the superiority of the English, who are doing them much damage in India--as recently they experienced, in the past year of 760, in their establishments in Vengala, and even in those of the island of Ceylan, to judge by some shrewd suspicions that the English were encouraging the king of the said island in his revolt against the Dutch. If the Spaniards establish their company, the British forces will be further diverted, in case war should break out, by those of España and Francia; the Dutch will then consider themselves more secure, and will expect some aid in case they guide those nations to appropriate some [English] establishments; for the aforesaid powers will not, for their own advantage, consent that the English attain further superiority by unjust means.

21. The French also have a like interest in the formation of the Spanish company, and they will promote it, in order to have its aid, which may be to them very important; for if they had had it in the late war they would not have lost all their establishments in India; nor would we have lost the fortified posts of Manila and Cavite, if we had had the said company.

22. The lack of a port on the coast of Africa as a landing-place for our ships is another of the difficulties which our navigation by way of Cape Good Hope may encounter; but our friendly relations with the court of Francia will open to us, without doubt, free entrance to the port of Mauritius. With a knowledge, too, of the ports on the said coast of Africa, we can establish ourselves where we think it best to, as the Dutch have done; or we can find some island, like that of Santa Elena, [168] which the English occupy, or those of San Matheo and Acension, which serve the Portuguese for a way-station.

23. The last difficulty may be the greatest of all, and it consists in the probable opposition of the ministers and officials of his Majesty to the ministers and officials of the company. For I assume, in the pursuance of my plan, that there will be here ships of war, a suitable force for the safety of these towns, a governor and captain-general, a royal Audiencia, royal officials, etc.; and that the company will have likewise its own ships, the construction of them, cloth manufactures in the provinces, the working of mines, the cultivation of cinnamon, and other enterprises, which without the aid of the government are difficult, but with it very easy. The aforesaid opposition to those of the company, and the unpleasant relations which follow (or are very probable) between the directors and the government, may be a very great impediment to all the said activities. But this, it seems to me, can be corrected by making suitable regulations, and his Majesty issuing very strict orders for their punctual observance, with heavy penalties against the transgressors; also by the company having so many protectors in the court as its shareholders, especially if the shares be taken by the highest nobility, as an example to the rest. These will be so many more public prosecutors, who will raise an outcry against those who, in whatever way, oppose the interests of the company; and who will demand punishment for him who deserves it, in order that this may serve as a warning to others--under the well-founded assumption that the growth of the aforesaid company can interest no one so much as it does our sovereign, in order that the crown and the nation may be maintained with dignity and splendor, and gain credit by our commerce, and by the riches which it will draw to us if that commerce be undertaken and continued with the ardor which is demanded by love for our country.

24. I do not dwell so much as I might on this last difficulty, because it seems to me that what I have said is alone sufficient for taking the necessary precautions. As little will I take time to enumerate the advantages which would result to his Majesty from committing to the aforesaid company the government, management, and social order of these islands, with the obligation to maintain them with sufficient forces--for this purpose, [the crown] making over to it the tributes and the royal duties, and the company furnishing some amount to the royal revenues in acknowledgment of the [royal] authority, during the time while this sort of treaty or contract should last; on this subject, I could divulge something, if I did not realize the great difficulties therein.

25. Besides this, I consider that if his Majesty place these towns and islands under the plan that I have proposed, they can bring together their considerable military forces for the furtherance of the said company, and for such assistance as it may find necessary--so that the king may increase his royal revenues and the company save much expense, which will redound in material gains to its commerce, and to obvious damage to that of the foreigners.

26. By granting to the company the privilege of proposing [the names of] persons whom it considers trustworthy, to serve in the office of alcalde-mayor for the provinces where it will have its manufactures, cultivation of crops, or operation of mines, all possible advancement will be rendered easy, and the royal exchequer will preserve the royal revenues, by means of the said persons, for whom security will be given by the said company or its directors; and even the tributes of various provinces could be arranged, by agreement, with evident advantage and benefit to the royal exchequer.

27. Finally, all matters must be regulated on a very substantial basis--questions of government, the cases in which preventive measures must be taken, the protection of the company, and the powers which must be granted to it, as will be unavoidable in order to obviate uncertainties and injurious dissensions, in regard to which suitable advices will be given on the proper occasion.

Chapter Seventh: Of the suitability of Panama and Portovelo, in case the navigation via Cape Good Hope be impracticable.

1-2. [Viana briefly restates some of the conclusions reached in foregoing chapters, and proceeds to consider the possibility of the route via the Cape of Good Hope proving impracticable, in which case he proposes as an alternative the route via Panama.]