Domestic trade.
The first Spaniards who came to the Philippines observed a lively commercial intercourse, not only among the peoples of the different islands, but also with the near-by countries.[3] The chief method of exchange was by means of barter,[4] though oftentimes gold dust was used.
With the coming of the Spaniards, domestic trade was upset. First of all, restrictions were imposed upon trade; communication between the villages was restrained.[5] Though later ordinances allowed freedom of commerce between villages and provinces,[6] the spirit of restriction predominated until modern times.[7]
Then, the government officials, though in many decrees and ordinances prohibited to engage in trade,[8] used their position as a means of gaining profits in trade.[9] This evil prevailed till later days.[10] However, as seen by Dr. Tavera, trading by the officials was not without its good effect.[11]