The Philippine Islands, 1493-1898 — Volume 12 of 55 / 1601-1604 / Explorations by Early Navigators, Descriptions of the Islands and Their Peoples, Their History and Records of the Catholic Missions, as Related in Contemporaneous Books and Manuscripts, Showing the Political, Economic, Commercial and Religious Conditions of Those Islands from Their Earliest Relations with European Nations to the Close of the Nineteenth Century

by Unknown

PRINCIPAL POINTS IN REGARD TO THE TRADE OF THE FILIPINAS

First Point

The quantity of merchandise which may be traded with; and that which, contrary to the prohibition, is brought from the Western Indias to the Filipinas.

By decrees of his Majesty, of January 11, 93, and of July 9 and 5, 95, the trade of the Western Indias with China and the Filipinas Islands is prohibited. It is only permitted therein that the citizens of the Filipinas may trade with Nueva España; and that two ships, each of no more than three hundred toneladas, shall sail from Nueva España every year, in which may be sent 250,000 pesos of Tepuzque [6] in coin, and which may carry back the proceeds thereof in merchandise, which, under fixed penalties, shall not exceed another 250,000 pesos—that is, in all, 500,000 pesos.

Notwithstanding these prohibitions, and although the same is also commanded by other decrees to be strictly observed, two million reals are usually taken out of the Indias for the Filipinas, according to advices from the viceroy of Nueva España, and from Señor Don Bernardino de Avellaneda.

Second Point

To whom it is permitted to trade and traffic in the Filipinas Islands.

By the aforesaid decree, it is permitted solely to the citizens of the said islands, for the space of six years. This license is not to be renewed, and trade and commerce is unqualifiedly prohibited to any other person whatsoever of the Western Indias, under the penalty of confiscation of his merchandise.

Nevertheless, under cover of commissions, the citizens of both Piru and Nueva España engage in trade, and they send their money in the ships going from Nueva España—some registered, and some secretly.

Third Point

That Chinese merchandise be not brought to Piru.

By the same decree it is ordered that the merchandise brought to Nueva España from the Filipinas be not taken to Piru and Tierra Firme; and that the goods which had already been brought be disposed of within four years.

By another decree of the same date, like commands were given; and that the merchandise brought to Nueva España be either consumed there or sent to España.

Nevertheless, this merchandise is taken to Piru under pretense of being that of Castilla. Hence arise many difficulties, and the commerce of España with Piru and Tierra Firme is ceasing, and merchandise from España is not sent to Piru. If this be not checked within a few years, it is agreed by all that the trade of España in merchandise with Tierra Firme, Piru, and Nueva España will cease.

Fourth Point

The ships which must be used in the trade, to whom they shall belong, and what has been permitted by the viceroys.

By the decree of January 11, 93, it is permitted that for this trade two ships, each of no more than three hundred toneladas, may sail annually from Nueva España to China. They may bring in return the property which is to come, and no ships belonging to private persons shall be sent. There shall be three ships, in order that one may remain at the port of Acapulco for repairs. They will sail at the expense of his Majesty, and the cost will be paid by their freight-charges and the cargoes that they carry. This order was altered by the viceroy, the administration of two ships having been given to private persons in 99, for this trade, with the power of appointing the officers thereof, with salary, and license to take freight, as will be stated later under the twelfth point.

Fifth Point

The appointment of the commanders and officers of said ships, and their number; the expenses incurred by them; and the question whether it will be expedient to reduce their salaries.

By the decree of his Majesty referred to in the letter of January 11, 93, sent to Gomez Perez das Mariñas, governor of the Filipinas, permission is given to the viceroy of Nueva España to appoint the pilots and officers of the ships bound for the Filipinas.

Complaint is now made of this, from the islands, that there is great expense to the royal exchequer, in that the viceroys, in order that there may be offices in which to place their followers, multiply those of the ships; and, although they have the right to appoint one pilot to a ship, they appoint a captain-general and many accompanying him, an admiral, and many captains of infantry, a sargento-mayor, a royal sub-lieutenant, sub-lieutenants of the companies, and a royal alguazil. All these are persons of little experience, who are going to seek their fortunes in the Filipinas at his Majesty's expense; and they deprive the citizens of their offices.

Information is given, by a letter from the fiscal of the Filipinas, that but one pilot is sufficient for the ships; that the troops should be under the command of the captain or master of the ship, without increase of salary to said captain or master. Thus the aforesaid officers of the troops may be dispensed with, and one gunner suffices for each piece or every two pieces of artillery.

Sixth Point

The losses of ships which have been employed in the Filipinas trade, and the cause thereof.

Through news brought by the ship "Santa Potenciana" in the year 601, it seems that the ships "San Geronimo," and "Santa Margarita," which sailed in the year 600, lost their masts in a storm; and the "Santa Margarita" drifted to the island of the Ladrones, and the "San Geronimo" to Luzon, near Catanduanes. Both were driven ashore in February, 601, without being able to save themselves. This loss is attributed by some to disagreement among the officers, and by others to the late sailing of the ships, and to a lack of sailors, and (what is more nearly correct) to the general overloading of the vessels. The ship "Santo Tomas" was lost also on the voyage out, near the channel at Catanduanes; the hulk was lost with some supplies, small wares, and two millions or more of silver, besides the 500,000 pesos which were allowed to be carried.

Seventh Point

What property may be taken to the Filipinas, and where it goes.

By the sixth point it appears that in the ship "Sant Tomas" alone, which was lost at the entrance of Catanduanes, there were over two millions besides the 500,000 pesos allowed.

This and all else which is carried is placed in the power of the infidels, who receive it as the price of the Chinese merchandise; and it can therefore be returned neither to the Indias nor to these kingdoms. Silks, damasks, taffetas, needlework, hand-mills, cotton stuffs, earthenware, wax, nails, and other merchandise of little profit are carried to those regions, thereby depriving his Majesty of his dues.

Eighth Point

The discontent of all the islands, on account of depriving them of the profits which might be had from the purchase of this merchandise; and the lading of it which his Majesty has granted, by his decrees, to the citizens of Peru and Nueva España.

The citizens of the islands, except one here and there, are very poor. They wish to abandon the islands, as there are no means of gain or profit except in trade and commerce. They are deprived of this by the citizens of Mexico and Peru, who bring over a great quantity of money, with which they do not hesitate to purchase merchandise at excessive prices. Then, in order to ship these goods, they hasten to pay high rates for the tonnage, and thus succeed in occupying the space which belongs to the citizens; and when the latter ship their merchandise it is so little that it is not sufficient for their support. On the other hand, the Portuguese pass from Acapulco to China with their money, and do not return to Nueva España. They either remain there, sending cargoes therefrom, or they send merchandise to Portugal, by way of the ports where the Portuguese trade, thus defrauding the native-born citizens of their rights.

Ninth Point

That the royal decrees prohibiting trade with the Filipinas are not observed, chiefly on account of the opinion of Doctor Sacedo, a citizen of Mexico, that the violation of royal decrees involves the penalty thereof, but is not a mortal sin. Thus the citizens of Mexico may carry on commerce in the Filipinas, and those of the Filipinas may invest money which is sent to them, without burdening their consciences, or being obliged to make restitution.

The opinion of Doctor Juan de Sacedo, a citizen of Mexico, replying to the decree of January 11, 93, states that this decree does not show clearly, and with the explicit statement necessary, that it was his Majesty's intention to bind strictly to an eternal punishment those on whom he imposes a pecuniary penalty; or that by its transgression are obligations to make restitution laid, in conscience, ipso jure non expectata judicis sententia, upon the people of Mexico who trade with the islands, or consign their property to citizens of Manila—either goods sent in exchange for the merchandise of the latter, or money which they remit to these—although both of these are prohibited. If these things are conceded, they make a profit and have the means of support. The reply thereto is incumbent upon his Majesty, from whom the decree emanated. Until his Majesty shall make further declaration, the decree is purely a penal ordinance, and nothing more. It involves only the penalty and condemnation to which the transgressor is exposed, and does not burden the conscience with mortal sin or restitution. For that, it is necessary that there be an explicit declaration—one conforming to the most lenient interpretation, which avoids fetters on men's consciences, and constraining transgressors by only a temporary penalty, and not by restitution or eternal punishment.

The religious Orders of St. Dominic and St. Francis at Manila, and the cabildo of the metropolitan church of that city, ask that this matter be adjusted. The religious assert an opinion contrary to the above, saying that a mortal sin is involved. They beg that his Majesty declare his royal will, and provide a person who shall enforce obedience to the royal decrees and punish the transgressors.

The cabildo of the church declares that no one in the islands will be sufficiently powerful to enforce the decrees, unless his Holiness would undertake to decide what the faith teaches, regarding the authority which the mandatory as well as the penal laws possess in this matter. They request, therefore, that effective measures be taken by his Holiness in declaring and deciding the Catholic truth in this particular; and whether it will be a mortal sin to transgress the laws of the kingdom when that which is decreed is something very useful to the commonwealth. [7]

Tenth Point

His Majesty has granted favor to the citizens of the islands, by permitting two ships, each of three hundred toneladas, to sail annually from Nueva España to the Filipinas; and they may carry therein from the Filipinas such property as is to be transported. There shall be three ships, in order that one may remain in dry dock at the port of Acapulco. They shall sail on his Majesty's account, paying the expenses thus incurred from their own earnings.

The viceroy and Don Pedro de Acuña, governor of the Filipinas, are of the opinion that this tonnage should all be utilized, so that each ship may carry three hundred toneladas of lading, six hundred toneladas between the two ships; and these should be the toneladas of the Southern Sea, which are larger than those of the Northern Sea. There should be three ships, all alike and of the same model, each containing four hundred short toneladas of the Northern Sea, which amount to three hundred. The citizens of Manila shall lade on each ship two hundred toneladas and no more, which consequently will amount to six hundred toneladas in all the ships, in order that the goods may be distributed to better advantage, and the ships may carry more mariners.

Under this arrangement the expenses are greater, as there is one ship more, as well as the increased cost of the escorts of soldiers, and the artillery for the protection of the ships. Therefore the viceroy orders that henceforth in the Southern Sea, instead of paying thirty-two pesos on every tonelada, there shall be paid thirty-two ducados on every tonelada of stuffs coming from the Filipinas. This increase will amount to 12,000 pesos, more or less, with which may be defrayed the expenses of the infantry who return as guard of the ships and property which come from the Filipinas Islands, thereby assuring greater safety.

Eleventh Point

That ships be bought on his Majesty's account; and those which have already been bought.

Until the new ships shall be built, the viceroy has supplied the line with ships in place of those which were lost. He commanded one to be bought from the mariscal Gabriel de Ribera. That and the "Santa Potenciana" were conveyed [to the islands] by Don Pedro de Acuña; also two ships from Piru were in his convoy, moderately laden with freight. Grace was granted, in the name of his Majesty, for some permissions for carrying money and a quantity of freight. This was given as to private persons, but not that the ships should be navigated on their account or under their administration, or that they should exercise any more authority than that of a passenger. This did not deprive the city of Manila of any of the six hundred toneladas which could be shipped, but merely utilized the surplus space of the ship, thereby doing no damage to the citizens of Manila.

Twelfth Point

That the ships of the Filipinas line may be assigned by contract.

The viceroy made the experiment in the year 99, of giving two ships in trust to Don Fernando de Castro and Alonso de Torres, with the privilege of appointing officers, a salary of one thousand pesos, and permission to place in the cargo twenty or twenty-five toneladas of their own goods; they were obliged to give bonds, and to keep correct accounts of the profits and expenses. If the profits should exceed the expenses, the excess should belong to his Majesty; if the costs should amount to more than the profits, the trustee must supply the deficit from his own purse.

The officials of his Majesty at the port of Acapulco oppose this plan, and say that it is very unprofitable, and to the injury of his Majesty and the royal exchequer, in that the trustees attend only to their own profit. It is the universal opinion that the "Santa Margarita" did not come here on account of having been sent out thus in trust.

Thirteenth Point

That a limit be placed on the merchandise brought from China.

Fourteenth Point

That there be trading and voyaging to Eastern India.

There are also the general points, that the commerce of Nueva España with Piru and Tierra Firme in silks and Chinese merchandise be prohibited, without any discrimination of persons, as being a great damage and injury to the trade of España and defrauding the royal dues.

The licentiate Alonso Fernandez de Castro

Various Documents Relating to Commerce

Rule 45 on the leasing of the import duties of Sevilla, and likewise the ordinances made by the prior and consuls [8] of Mexico in regard to this trade of the Filipinas, are to be considered by the assembly discussing the trade of the Filipinas, in order to decide what is best to be done.

Letter from Fray Martin Ignacio de Loyola

Jesus

As I could not be present, I have written out my answer in my memorial on the Filipinas, and it accompanies the present letter, by which your Lordship will see what I advocate. I assert that, beyond all doubt, what I here point out would be the only remedy.

This morning when I went to receive your Lordship's blessing, and offer my respects, it was already late; and I believe that I shall not be able to do it tomorrow. Therefore I beseech your blessing in this, as one whom I hold in so great esteem, and to whom I owe so much. Upon all occasions I shall advise you of my affairs and matters of importance. As from one from whom I have experienced it, I shall receive all kindness. May our Lord preserve your Lordship, as I desire. From San Diego. Your Lordship's chaplain,

Fray Martin Ynacio de Loyola

[Endorsed: "No date.">[

Opinion of Fray Martin Ignacio de Loyola

In order that the Yndias may not be ruined, they should be dependent upon and subordinate to España, and there should be close relationship between the different parts.

This subordination and relationship consists in two things: first, in what concerns the government—political, spiritual, and temporal, and therefore it is advisable that the viceroys, governors, bishops, vicars, and commissaries-general should be sent from España. True, those who have gone from these parts and fulfil their duties properly there, should be rewarded since they have worked, and merit this favor more than those going from España.

By reason of the lack of this subordination and relationship, we know that many kingdoms which were converted to the faith returned to paganism. A good example of this is furnished in Eastern Yndia, where the apostle St. Thomas converted innumerable souls in the kingdom of Bisnaga, Cuylan, Cochin, and Caratuete. But after the death of St. Thomas, as there was no communication either with Palestina or Roma, in three or four generations there was not one Christian. Until now, for two hundred years Babylonian bishops have gone there; and now there are many Portuguese.

The second thing essential to the relationship between the Yndias and España is that there should be commerce and trade between those kingdoms. This is extremely needful, for, if commerce should cease, then communication would cease; and, should the latter cease, within a few generations there would be no Christians there. That which causes most inquiry to this commerce and communication, is the diversion of the commerce between the Yndias and España to other kingdoms, not belonging to his Majesty, but heathen and pagan; such is now the case between Nueva España, Peru, and the Filipinas, which receive annually two million pesos of silver; all of this wealth passes into the possession of the Chinese, and is not brought to España, to the consequent loss of the royal duties, and injury to the inhabitants of the Filipinas; and the greatest loss, with the lapse of time, will be that rebounding upon the Yndias themselves. All the projects and prohibitions that have been devised to remedy this loss serve but to inflict still greater injury, and to cause universal ruin.

As long as the viceroy of Nueva España continues to appoint the captains and officials of the vessels sailing to the Filipinas, the fitting reform cannot be instituted; for, it is clear that, as such officials go from Mexico, they will not hesitate to take their money and that of their friends; and even if other prohibitions may be issued, they will not cease to do so.

The fitting remedy for this matter consists in having a consulate in Manila, and in providing there the said officers, and in assigning to each citizen of the islands the amount of goods that he may export. By this method, a complete remedy for this evil will be provided, and the inhabitants of the islands, for their own benefit and interest, should endeavor to keep the trade themselves, and prohibit trading or sending consignments of silver from Mexico or Peru.

The trading in, and consignments of silver to, the Filipinas by the inhabitants of Mexico causes great detriment to the inhabitants of the islands; for, because of the Mexicans sending so much silver, the price of Chinese silks and merchandise has risen, so that, while for twenty years, when only the inhabitants of the islands were permitted to trade, they were wont to gain one thousand per cent, now they do not gain one hundred, whence results much resentment in the Filipinas. Therefore it is most certain that, if the trade be conceded to them alone, with a just limitation, they will desire to be the only gainers; and hence will endeavor to see that no Mexicans send any silver, and will execute whatever penalty his Majesty imposes on the Mexicans. This they will do, because clearly much advantage will accrue to the islanders thereby, by the lowering of the price of the merchandise in Manila and a rise in Mexico. If this reason be examined closely, my assertion will be quite clear.

I maintain the same in regard to the port of Buenos Ayres; and what has been ordained but lately I think was by divine ordination; for hitherto, notwithstanding the prohibition that there should be no trade, ships entered and cleared, and traded between Brasil and Potosi, and between Potosi and Brasil and España. And, although six judges were sent to enforce this prohibition, they were unable to effect a remedy, until the governor, Don Diego de Baldes, gave permission, as he considered it an extreme necessity, and the ultimate remedy, for the citizens of Buenos Ayres to reap some slight portion of the profits—although he erred in this, as it was done without his Majesty's permission. However, now that this license is confirmed, the matter, in so far as it touches this port, is remedied; for the amount of flour which they take cannot be of sufficient consideration to damage the commerce of Tierra Firme; and the citizens, as they profit thereby, will prevent anyone from trading outside of the port, and will execute the penalties imposed by his Majesty on those who try to trade. I relate all the above because I think great things will result therefrom to the service of our Lord and of his Majesty.

Fray Martin Ynacio de Loyola, bishop of Rio de la Plata.

[Endorsed: "+ Memorial from the bishop of Rio de la Plata, in which he declares what reform should be effected in the commerce of the Filipinas and Mexico; and asserts that the action of the council in Buenos Ayres has had very good effect.">[

Extracts of Two Letters from the Conde de Monterrey

The merchants of the corporation of the city of Los Reyes, Peru, declare that, in the commerce between that kingdom and this one of [Nueva?] España, they regard it as so necessary, that should it cease, it would mean complete destruction. On this account it must be preserved, and to this end all the means possible must be sought out.

Further, they declare that the merchandise brought to the kingdom of Peru from China is not the cause of this decline of commerce between the Yndias and España, but the inadequate regulation of the war and merchant fleets, and the winter seasons, which are the utter ruin and destruction of the merchants. This is plainly evident, since before the wars with Ynglatierra, when this matter was properly attended to, the commerce was extensive and profitable—although there was no need of so much merchandise as there is now, when the population of Peru is so much larger than at that time—and the merchants not only of España but of Peru were amassing wealth. But now they are not doing so, for the reason that is here named. All is going to destruction: payments cannot be met when due; and duties are excessive, for in order to send money to España, the shippers pay seven and one-half per cent for the galleons to guard the money, and when goods are shipped from Sevilla, they pay as much as three and one-half per cent. The principal cause of this loss is the time [required to transact business]; for from the day when the money leaves Callao (the port of Lima) until it returns in merchandise to the same point there is an interval of at least three years, counting the winters; and before they can secure returns from the merchandise another year, or even a year and one-half, must pass, for not all the merchandise can be sold for cash. Consequently this money can gain its profit only once in four years, when it could, as formerly, be thus handled twice in that time. And however great the amount of the profit, it cannot approach that of the two profits [in the four years], especially with the loss involved in the aforesaid duties for the fleets, and the new impositions of duty for the armed vessels that carry, in the South Sea, the money from Lima to Panama—and this is in addition to the duties paid to his Majesty. Thus it results that the merchants of Lima, who were formerly very rich and had ample credit, have become debtors; and this is the reason why the merchants of Sevilla do not make the same profits as formerly. Therefore there is a cry against Chinese goods, as they imagine that to be the cause of their loss. This is evident likewise, because the commerce existing formerly between Peru and Nueva España was very slight and now has increased greatly, and the Peruvian merchants prefer to go to Nueva España to make their investments rather than to España, because they can make the voyage to Nueva España in one year; and therefore can make many investments with their money. And although it is true that they bring Chinese merchandise in their shipments from that which arrives in that kingdom of Nueva España, still the greater part of the cloth bought by them is from España. Although this costs them more, the shortness of the time is of so great importance to them that they consider it more profitable than going to España, for the reason expressed above regarding the delay in time. Thus, with suitable arrangements regarding galleons and merchant-vessels, commerce is prosperously carried on.

Further, they declare that the kingdom of Peru has greatly increased, during the last twenty years, in its Spanish population, both in Spaniards born there, and in those who have gone thither from España, so that there are at least three times as many people. All these people live very luxuriously. All wear silk, and of the most fine and costly quality. The gala dresses and clothes of the women are so many and so excessive, that in no other kingdom of the world are found such; so that if four merchant-vessels went to Peru annually, all the cloth goods would be sold, as well as everything else of the cargo. Because vessels go there only at long intervals, the people make use of goods from Nueva España and China. However, in the case of the Chinese goods, they are worn only by the very poor, and the negroes and mulattoes (both male and female), sambahigos, [9] many Indians, and half-breeds, and this in great number. The silks of China are much used also in the churches of the Indians, which are thus adorned and made decent; while before, because of inability to buy the silks of España, the churches were very bare. As long as goods come in greater abundance, the kingdom will feel less anxiety, and the cheaper will be the goods. The increase to the royal exchequer will be greater, since the import duties and customs increase in proportion to the merchandise; and this increase cannot take place, if the fleets are laid up for the winter, for by this delay the merchant-vessels cannot be despatched annually—on which, and upon their money not lying idle, depend the profits of the merchants.

Therefore the merchants of Peru declare that commerce should be opened with China, and that they should be permitted to send one million [ducados] annually in two vessels, and that this million bring back merchandise to the same port of Callao. This merchandise will yield six millions, of which ten per cent, paid to his Majesty, will amount to six hundred thousand ducados. And if the license for one million is not given, it should be for one-half, the duties on which would be three hundred thousand ducados.

Further they declare that, if this be not conceded to them, they should be permitted to buy and carry to Peru the merchandise taken from China to Nueva España. There the duties on this merchandise would be imposed, and they would pay seven per cent on them, notwithstanding that only five per cent is paid in Nueva España. Paying seven per cent on the merchandise from China bought in Mexico, it will be seen of what little importance the four to six millions of ducados that Sevilla pays to his Majesty are to the royal estate, because it does not consent that goods from China may enter Peru.

And I assert that, should his Majesty ask me for my opinion, I would tell him that, if it is true that the Chinese merchandise can in no way injure the commerce of España, while its benefit to Peru is certain—especially to the poor and common people, of whom there is a great number—and since it seems desirable, for the adornment of the churches of the Indians, that there should be goods from China, my opinion would be that license should be given for only one-half million (ordering under heavy penalties that this sum be not exceeded), to be used in the following manner: Four hundred thousand ducados' worth of merchandise should be brought, and one hundred thousand worth of gold bullion. The latter is likewise merchandise in China; but traders do not like to take it as it yields them no more than fifty per cent, while on the other merchandise they make five hundred per cent and upward. Thus if this silver should be allowed to them, they would obtain gold, and this one-half million would yield three millions in Peru from merchandise which will be worth three hundred thousand ducados in import duties to his Majesty, besides the other dues imposed on the aforesaid goods. Thus the customs will increase, and, as said, these five hundred thousand ducados need not to be considered, as it is thought that this amount cannot diminish the commerce with España; for every year the merchandise of Peru yields six or seven millions, and if the trading fleets and armed galleys are sent at the same time, much more money will go to España, which on this account does not go there. These five hundred thousand ducados have, in previous years, always gone from China to Peru by way of Mexico; and as the merchants say truly, the winterings and increased duties and expenses of the winterings are causing the commerce to deteriorate. This is proved by the above arguments of the merchants, evidently cited from actual facts. Thus, if the merchants were provided with money, and were able to dispose of their cargoes every two years, and with the proceeds thereof begin new commercial enterprises, they would not be only exhausted and ruined, but rather they would be placed in easy circumstances and the country would be relieved from its difficulties by the gains thus made. With more goods, it is evident that the royal exchequer would benefit more as aforesaid. Therefore it would not be advisable to prohibit all commerce with China.

And at the very least, the five hundred thousand ducados should be granted, so that the merchandise taken to Mexico from China can be purchased in Mexico. Collecting in Peru the customs on these Chinese goods purchased in Mexico, seven per cent would be levied thereon, which plus the five per cent paid in Mexico, makes twelve per cent. The kingdom would feel greatly aggrieved if they were deprived entirely of this commerce. And if Mexico continues to have trade with China, a considerable quantity of Chinese goods will, however many precautions will be taken, be hidden in the Mexican ships for Peru; while but very little of it will be seized, and his Majesty will lose almost four hundred thousand ducados, because the goods do not enter publicly. Therefore it would be advisable that this license be granted perpetually, with the above limitation.

+

A great lack of money has made itself felt in this colony; and, after having thoroughly investigated the cause thereof, it has been ascertained that it proceeds in part from the very great sum taken out annually for China. It is also attributed in part to the issue of the money from the treasury—not that it has been less than in other years, but it has always been much more limited than it might be, and than is advisable for a commerce that is increasing in extent and value so much as is that of this kingdom. And since it would be greatly to the advantage of the treasurer to coin more money, they impute to him that, by not spending something at present, he is thus niggardly in making the necessary provision, and that by this he loses much and the state more. These two difficulties are reënforced by another—that since there have hitherto been, for various reasons, very few traders who were inclined to buy silver from private persons and send it to the mint to have it coined on their account, it has resulted that four or five men have made themselves the masters of this traffic; consequently there has been a great increase this year in the loss incurred by those who sell their silver in order to be furnished with coin. All this has been observed at the time of the vessels and trading fleet; and it is a matter of much moment, in which it has seemed best to me to inform your Majesty, inasmuch as I have undertaken to institute a reform. This, please God, will be made with energy, as in breaking open a package. When the correctives usual in this region (which are mild) do not suffice, I will propose to your Majesty other and more severe measures, which might be adopted by the Council, and one might be of sufficient advantage to your Majesty. However, it were not advisable to discuss this, but that the necessity of the public government demands it and invokes it, since only at such times can it be called just or used as an argument.

I consider your Majesty's permit in regard to the money going to the Philipinas as liberal and beyond the excess of what is carried as contraband, which is a very large amount. It is almost impossible to put a stop to this, notwithstanding that I do not give permission, expressed or tacit, in that commerce for one real more than the amount allowed; and I have ordered vigorous investigations on this point at the time of the despatch of the vessels. But if it is easy to hide the money, there is little to fear in the penalties, although orders are given that they be executed. Accordingly, in case of the cloth that can be brought to and unloaded at Acapulco, I think that, as it has bulk, it can be locked up in some warehouse and examined, or (which would be more efficacious), that no limit be placed on the use of this class of goods in Nueva España, so that those persons whom the viceroy considers needy might not be restricted in wearing it. I fear greatly that in the case of the money, as it is so easy to hide, no sufficient reform can be instituted for this evil, as I see that there is no remedy in other things of like nature, either in the armed ships or the trading vessels from those kingdoms. There, however, is less damage; for this is all in money which goes to infidels and never returns, and thus militates against this country, and that [España], and greatly weakens the commerce of both. I recently made arrangements with Don Pedro de Acuña (as I wrote to your Majesty on another occasion) for making a personal inspection at Acapulco; it was decided that I should reject the money, and, because there have never been confiscations that cause fear, that some part of each one's share should be actually applied to the treasury, and that the same should be done in Manila. Since letters received from there state that goods are very dear because of the great quantities of money that go there, it must be that this inspection was not promptly made; and I fear that there is too much laxity there. For it would appear that those islands should grow rich with the increase of money, and that if they buy at high prices they must sell the goods here at high prices; and on this account regard and favor for that land must not give the governor and Audiencia opportunity to take severe measures toward this region. I intend to use rigor at the coming of the ships this year; for this is demanded by the prevalent excesses and our actual experience of the difficulties that result therefrom.

[Endorsed : "Copies of parts of letters from the Conde de Monterey, [10] written to his Majesty, May 15, 1602.">[

Points in the Petition from the Filipinas Islands in Regard to Their
Commerce

First point

That the commanders, captains, and officers of the vessels plying on the line, be inhabitants of the said islands, and not of Nueva España, so that the losses, frauds, and injuries that they cause in loading their goods, and in the transportation by the ships of enormous sums of pesos in consignment and trust, may cease. This would save for his Majesty's treasury the salaries paid the officers of the vessels, and would benefit the islands. The citizens of the islands would receive such posts, when it should pertain to them, as a reward for their services, as the governors have been ordered to grant them to meritorious men.

The bishops of Paraguay and Nueva Segovia declare in information given on this matter, at the order of the Council, that for its remedy and the aid of the islands, it would be very advisable to establish a consulate in Manila; and that the [royal] ships, together with the vessels of the merchants, should go on its account. His Majesty should be given the hulls of the ships, and the masters and officials appointed in the said islands, to whom money from Mexico should not be committed, nor should it be given them in trust. The expense caused to his Majesty by them would thus be saved.

Second point

That the governors be ordered not to sell tonnage in the ships plying in the line to Nueva España, no matter what expenses are incurred.

The bishops assert that it is not advisable to sell any space, but that, in case of great necessity, it be done by the consulate; it would be better, however, not to sell it, for if it is sold, then there will be no freight-money for navigating the vessels.

Third point

That the viceroy of Nueva España be ordered not to give permission for any Piruvian merchants to go to the islands from Piru, under pretext that they are going to become citizens of the islands—because of the injuries that the islands receive therefrom; because of those merchants carrying, as they do, large sums of money belonging to themselves and others, and to companies; and because they only come to invest the same and return. On this account the prices of merchandise have risen more than fifty per cent. After investing their money, the commanders and masters, because of a money consideration, take these merchants back to Nueva España, without it being possible to institute any reform.

The bishops say that it is advisable that they should not go [to the islands] unless for the purpose of becoming actual citizens, for there the difficulties referred to in this point exist.

Fourth point

That the fund for the pay of the troops be placed in the treasury on a separate account, and that the said troops be paid therefrom, and from no other account, in order to avoid the disadvantages that result, and the many offenses and injuries committed by the soldiers under stress of their necessities and the opportunities that arise. This would provide a source for what money might be necessary, not only for the equipment of ships, and provision of ammunition and other military supplies, but for the pay of the soldiers, which is now spent in other things.

The bishops declare this to be inconvenient, and that the half-real which is given for the prebendaries should also be placed in the treasury on a separate account.

Fifth point

That the cabildo, magistracy, and regimiento of Manila be ordered to allot annually the lading of the vessels to the citizens of Manila, for much harm has resulted to the citizens from the governor allotting it—the lading being made illegally, and the governor having allotted it to many of his servants and relatives to the prejudice of the citizens and those born in this country. By this method the allotment would be honestly made without wrong to any one.

The bishops say that if his Majesty orders the consulate to be established in Manila, in such case it would be advisable for the consuls to make the allotment; and the governor cannot feel aggrieved thereby, since the consuls must navigate the vessels with the freight-money. However, if there are no consuls, it should be determined that the cabildo make the allotment, even though the governor be aggrieved.

The licentiate Alonso Fernandez de Castro

Various Memoranda

The question of limiting and restricting the trade between the Philipmas and Mexico has been discussed recently, and two points touching this have been determined: one, that it is not advisable for this trade to take place by way of Yndia; the other that it is not expedient to prohibit all trade between Pyru and Nueva España. There still remain five other points to be decided concerning this matter: (1) How many vessels shall take part in this trade. (2) How many toneladas shall be allowed. (3) What persons shall be permitted to take part in this trade. (4) Whether those who go from Mexico to the Philippinas shall be permitted to return. (5) Whether the sending of Sangleys to Manila be limited.

Filipinas

To lessen the coinage of pieces of four and of eight reals. [11]
It should be noted that 200,000 and 400,000 ducados have been minted.

To grant a portion of what is confiscated to the informer.

To regulate the merchant-fleets.

To increase the dues, and impose customs.

The first four sections [12] refer to what is ordained in regard to this trade.

The fifth declares the irregularity in the appointments of officers for this fleet.

The sixth, seventh, and eighth treat of the disadvantages which result from not observing the ordinances, and of their violation.

From the ninth to the thirteenth and last, are given the remedies that appear suitable for the correction of these evils.

Five points of the recent document look to the correction of illegal acts, and aim at securing the observance of the ordinances and the accomplishment of other things.

It is noted that the ordinances permit merchandise to be sent by way of Rio de la Plata, which the Sevilla merchants have violently opposed.

The tranquillity of the Indians.

Other remedies proposed by the Conde de Monterrey, who states that he will send others, showing the violations of law. This is in his letter of May 25, of this year.

The conclusion was, the relationship between the said kingdoms, and the increase of trade. It is readily seen that the increase in the manufacture of wines, and in the production of grains, olives, and other foods, and the maintenance of stock-raising by means of the cultivation of grain—all aim at the same object.

It should be noted whether it would be advisable to forbid the coinage of pieces of four and eight, beyond a certain number and quantity—namely, only that necessary to supply the needs there, and for what must be brought here.

To make arrangements for the despatch of the fleet.

To ascertain whether the bishop of Yucatan was the one who had those contentions with the governor, and of whom the friars are talking. He is proposed for the bishopric of Mechoacan.

Remedies

Considering that the trade should be preserved, and that the officials on the ships should be inhabitants of the Filipinas, and appointed there. That there be a consulate there, which should control the pancada. That the coinage of money be diminished. That the third part [of confiscated goods] go to the informer. That the duties be increased. That if Peru be allowed to trade, it be to a limited amount; and that dues and customs be imposed. That the trading fleets and armed vessels act in concert. That there be a warehouse in Acapulco, wherein to register the merchandise, and where violations of law may be detected; and that the same be done in Manila, with goods sent there. To forbid the use of stuffs for clothing from China.