Philippine progress prior to 1898

by Austin Craig; Conrado O. Benitez

Restrictions.

The continued protests of the Spanish merchants finally led to the prohibition of the shipment from New Spain to Perú or Tierra-Firme of Chinese cloths brought from the Philippines.[6] “And in order that what was prohibited in one way might not be obtained in another, decrees were despatched on February 6 and December 18, 1591, ordering the total cessation of commerce between the islands and Perú. That was later extended to Tierra-Firme and Guatimala, by decrees of January 12, 1593, and July 5, 1595, forbidding the trade of China and its merchandise to all the Indias, except to Nueva España, which was left open to the Philippines.”[7] In 1593 a decree absolutely limited the trade between Mexico and the Philippines to 250,000 pesos annually for the exports to Mexico, and to 500,000 pesos for the imports from Mexico,[8] to be carried in two ships not to exceed three hundred tons burden.[9] It was also decreed that “no person trade or traffic in the kingdom or in any part of China, and that no goods be shipped from that kingdom to the Philippine Islands, on the account of the merchants of those islands. The Chinese themselves shall convey their goods at their own account and risk, and sell them there by wholesale.”[10] Further, it was ordered that “the Chinese merchandise and articles which have been and shall be shipped from Filipinas to Nueva España, can and shall be consumed there only, or shipped to these kingdoms after paying the duties. They can not be taken to Perú, Tierra-Firme, or any other part of the Indias, under penalty of confiscation....”[11]

“Fortunately,” says Azcarraga,[12] “that tyrannical provision, meeting with the opposition of the private interests, which it so greatly injured, and among which were included those of the authorities and officials who were called upon to enforce it—was prevented from being carried in force, and thus, in reality, the Acapulco trade continued unlimited until the year 1604, when, by another decree the enforcement of previous laws was ordered.”[13] However, evasion of the law was a common practice, and the galleons usually carried very much more cargo than was allowed. The abuses became so apparent that in 1635, at the instigation of the merchants of Cadiz and Seville, a special commissioner was sent to Manila,[14] who strictly enforced the law. And, in order to prevent all evasions of the law, it was decreed in 1636 to the viceroys of Perú and New Spain “to prohibit and suppress, without fail, this commerce and trade between both kingdoms, by all the ways and means possible.”[15]

The rest of the seventeenth century found Manila still engaged in a great commercial controversy with the merchants of Spain; the endless number of petitions sent from the Philippines to the king bears ample testimony to the magnitude of the problem.[16]

Further petition from Manila resulted in the decreeing in 1702 that in the Philippine Islands two ships should be built, each of 500 toneladas burden, which should transport the goods permitted to that trade; that the citizens should be authorized to convey in these to Nueva España the amount of 300,000 pesos in their products and other commodities, and on the return to the Philippines to carry 600,000 pesos in silver, allowing 100 per cent gain minus the duties and expenses.[17] It was further provided in the decree that in the enumeration of the traders should be included the Spaniards in the country, and the military men stationed in the port of Cavite, excluding, however, ecclessiatical ministers, whether secular or regular, and foreigners.[18] And he who had no goods to lade was not allowed to give up his right in favor of a third person, but a new distribution was made.[19]

Induced by protests by Cadiz and Seville based on the ground that the galleons carried more cargo than allowed, and that the great abundance of silk in America had caused the decrease of the textile industry, thus causing the decline of factories in Toledo, Valencia, Seville, and Granada, a royal decree of January 8, 1718, prohibited the carrying in the galleon of silk, woven or raw, from China.[20] The only trade which could be carried on was in linen goods, porcelain, wax, cinnamon, cloves, and other goods which were not brought from Spain.[21]

More petitions came from Manila, and, finally, a royal decree of June 17, 1724, repealed that of 1720, and allowed once more the importation of Chinese silk.[22] An attempt on the part of the Viceroy of Mexico to put a stop to the importation of Chinese silk resulted in the royal decree of April 8, 1734, which, besides allowing trade in silk, increased the amount of the trade permitted to Manila to 500,000 pesos of investment and 1,000,000 of returns.[23]

The galleon trade continued during the rest of the eighteenth century, until 1811 when the last galleon sailed from Manila, and 1815, when the final return voyage was made. The next period in the history of Philippine commerce is characterized by the opening of the country to foreign influence.

Before, however, going into the next period let us see who were entitled to participate in the galleon trade. The right to ship was known as boleta or ticket, and there were as many boletas as divisions in the ship. On the average there were 1,500 such divisions, each worth from 200 to 225 pesos, a good portion of which were given to the governor-general, the religious corporations, the regidores, the favorites and privileged, and the widows of retired Spaniards. Those who had no capital to invest in merchandise sold their boletas to the merchants, and in spite of prohibition, this practice continued with impunity. The cargo consisted chiefly of Chinese and Indian silk and cotton cloths, and gold ornaments, and were sold at one hundred per cent profit in New Spain.[24] Almost all the merchants secured loans from the “Obras Pias,”[25] which were funds donated for pious purposes, and two-thirds of which loaned at the following rate of interest: for Acapulco, fifty per cent; for China, twenty-five per cent; for India, thirty-five per cent; the rest of the funds formed the reserve. Besides the merchandise and silver the galleons transported the official correspondence, arms, troops, missionaries, and public officials. The officers of the galleon were highly paid. The commander, who had the title of general, made 40,000 pesos per voyage, the pilot about 20,000,[26] and the mates, 9,000 each. Most of the crew were natives.[27]