Fraud and Speculation.
Fraud now stepped in. Goods of inferior quality were sent and offered at old prices. Government inspectors were appointed at Manila to examine goods; but they filled their own pockets at the expense of the public service, and the frauds went on. Contraband goods were taken on the State-galleon itself, concealed in water-jars. The misfortunes that came to the Manila merchants in consequence, were due largely to their own fault: they had “sown the wind and reaped the whirlwind.”
Ancient and Present Method of Washing Clothes.
There were certain public funds in Manila that offered themselves to speculative uses. These—known as the Obras Pias—were legacies left by pious persons whose interest was to be used to pay for masses for their souls. Two-thirds were to be lent at interest to traders, the remainder being held to cover losses. The Casa Misericordia was another pious fund that was lent at 40 per cent., sinking to 20 per cent. as trade grew less profitable. In the end, speculative ventures made way with much of this accumulated cash; sorely, it may be, to the misery of the poor souls in Purgatory, waiting to be prayed into Paradise.