The Philippine Islands

by Ramon Reyes Lala

The Treasure-galleons.

The method of dealing with the goods thus received was, to say the least, peculiar. They were done up each year in bales, always just fifteen hundred in number, and of exactly the same size and shape, for shipment to Mexico. From the first year after the formation of the colony until the year 1811, a fixed process was maintained. Every year a State-galleon left Manila for Mexico, bearing the baled Chinese goods, which represented the Philippine tribute. Every year the ship returned with a portion of the proceeds to the starting-point, this being known as the Mexican subsidy. One galleon and no more. For two centuries, and longer, this rigid system was kept up, the commerce of the islands being limited to this conveyance of tribute across the seas. Navidad was at first the Mexican port of call. Then Acapulco was chosen, and for more than two hundred years the State-galleon, Naos de Acapulco, yearly came and went across the Pacific, carrying tribute for Spain. The ships employed were very different from modern commercial craft. Short of length, wide of beam, and light of draught, with high elevation in bow and stern, above water they presented something of the outline of a crescent moon. They were of about 1,500 tons burden, had four decks, and were provided with guns; for, the waters they crossed were not secure from hostile craft, and Spain not infrequently had the loss of one of her rich galleons to mourn.

Thus it continued, until the rebellion in Mexico put an end to the traffic, the last of the treasure-galleons leaving for Mexico in 1811. The last for Manila set sail in 1815. There were other reasons than the war to put an end to the old traffic. The expense had become too great and the profit too small. Spain’s finances had fallen into a lamentable state, and the Naos de Acapulco was, perforce, withdrawn. Needy politicians, who knew little about seamanship, but much about perquisites, had forced themselves into the galleon, whose commander received an annual salary of $40,000, the chief executive officer $25,000, and the quartermaster nine per cent. of the cargo, the total of which was no small sum.

It was an odd idea to restrict the commerce of a group of the richest islands of the tropic seas, to a single vessel carrying the annual tribute of the island. In fact, it was not quite so restricted. The tribute-cargo did not fill the ship. There was some space left, and the use of this was given to a few favored merchants, the Consulado, as they were called, a trading ring, each member of which must have resided a certain number of years in the Philippines, and have a fortune of at least $8,000. This surplus freight was regulated by the issue of boletas,—documents that long did duty as paper money, passing from hand to hand. The demand for space much exceeded the supply, and the right to ship on the annual galleon often went to favored hands, merchants being set aside by churchmen, officials, and others with grasping palms.

Square of Cervantes, in New Manila

It may be that the idea of adding to the island-trade by supplying more ships, never penetrated the thick official cuticle of Spain. At all events, the single galleon sailed back and forth year after year, until the years lengthened into centuries, and while other nations were sending their deeply-freighted craft to all the ports of the earth. It was odd and lamentable to see this pitiful travesty of commercial enterprise kept up until after the dawn of the busy nineteenth century.

The yearly value of the official cargo sent from Manila was at first limited to $250,000. But such was the demand for the goods in Mexico, that one hundred per cent. was usually realized on the sales. The return-trade was not permitted to exceed the value of the proceeds,—$500,000, in coin or stores. In this way Mexican dollars, the recognized coin of the colony, made their way thither in large quantities. They were largely absorbed by China, where they were highly welcome. A certain sum was necessary to maintain the colony. This—the royal subsidy (Real Situado)—was fixed by decree from time to time, coming out of the proceeds of the annual tribute.

In saying that the annual galleon conveyed all the commerce of the Philippines, I should have confined this statement to Western trade. There was some commerce with the East. Indian and Persian goods reached Manila in considerable quantities. The same was the case, as I have stated, with Chinese wares. But the absurd restrictions of Spain hampered this trade. No Spaniard was permitted to go to China to buy his own goods. He must wait for the Chinese junks, and content himself with what they chose to bring.

Tondo: the Ancient Quarter of Native Fishermen.

The sailing of the annual galleon took place usually in July; and the voyage occupied about five months. The route to be followed was strictly laid down, and even the vagaries of the winds were scarcely an excuse for deviating from it. As has been said, all was carefully arranged as to size and number of bales and weight of cargo. For a century and a half there was practically no competition in this trade, and everything could be officially regulated, even to the selling-price of the goods in the Mexican market. The departure and arrival of the galleon at Manila formed the great events of the year. At these single dates the bars of exclusion were thrown down,—goods left, and wealth returned to, the colony; new faces appeared, and rejoicing was general. Te Deums were chanted in the churches, musicians paraded the streets, filling the air with melody, and bunting by day and illumination by night testified to the public joy.

Life was an easy affair with the merchants of Manila. Business was never a distressing occupation. One or two days in each week were Saint’s days—to be strictly kept. While the galleon was away, there was little to do except to await the Chinese junks and prepare the bales for shipment. There was no rise or fall of market-price, no need of smartness, tact, or enterprise, and only three months in the year when active labor was needed. During the remaining nine months the merchants were cut off from the world, and enjoyed life in their quiet way, with little regard to the doings of mankind.