The Philippine Islands, 1493-1898 — Volume 14 of 55 / 1606-1609 / 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

Trade of the Philippines with Mexico

Report from the Council of State

Sire:

Your Majesty was pleased to order that the enclosed reports from the Council of the Indias and that of Portugal be examined in the Council, and that they should make such recommendations as they deemed proper; and having examined them, the members gave their opinions as follows:

The chief comendador[1] of Leon, in a meeting held at Valladolid, insisted that it was not desirable that there should be trade from Nueva España to the Filipinas on account of the great drain of silver thus caused; it is occasioned by the large profits obtained by investing the silver in the merchandise which comes to those islands from China—partly through the cheapness of these goods, and partly through the great value of silver. He also stated the difficulties which are presented, in that, through this trade, the need for the merchandise from these regions would cease, and with it the dependence of those colonies, which it is so important to preserve. It should be considered that, although the trade of Nueva España with China should be prohibited, this would be of no use if trade with the Philipinas were left open; for by that means the Chinese will have an outlet for their merchandise. Accordingly it seemed best that this should be prohibited, so that there would be no trade from Nueva España with the Philipinas. But, as it must also be considered that the total prohibition thereof would cause a hindrance to conversion and would put an end to settlement, he thought it best, in order to maintain both the one and the other, that two merchant ships should be permitted to go each year from Nueva España to the Philipinas, of the capacity and under the conditions which are at present in use there. Since, if the people of the Philipinas are able to trade with Macan, there will be the risk of their introducing through that channel a trade with China, and consequently a drain of silver from Nueva España, it seems best not to give an opportunity for this. On the contrary, the decree should be observed which was despatched in the time of the king our lord (who rests in glory), prohibiting the trade between Macan and the Philipinas, for it is to be believed that this was issued after mature deliberation and reflection; for that conduct would be greatly to the satisfaction of the Portuguese, and we would avoid the difficulties of opening that port to the trade from China, as it is so important for these kingdoms to maintain what they hold in Peru and Nueva España. But it would be very desirable to order that there shall be considerable understanding and correspondence between the governors, so that in case the ships from one region make port at the other, driven by the weather, they may be well received and treated; and also that they may help each other in times of need, with money and whatever shall be necessary of provisions, munitions, and other supplies pertaining to the defense of the land and operations against the enemy.

The Marques de Velada said that if the trade of Nueva España with the Philipinas could be kept within moderate bounds, and if nothing came from China to the Philipinas except what was needed there, he would consider it good; but he regards this as difficult, and therefore supports the chief comendador of Leon.

The Conde de Chinchon said that the preservation of the Indias consisted in this, that, through their need of articles which are not produced there, they always depend upon this country; and it would be the means of losing them if their wants could be supplied elsewhere. To think that if there were trade between Nueva España and the Philipinas there would cease to be any with China would be an evident mistake, and therefore it should be closed. In so far as concerns Macan, order should be given that the decree which has been issued be observed, as the chief comendador of Leon has said. In this state of affairs it has seemed best to him to advise your Majesty that it ought to be carefully considered whether it is expedient that each year there should be carried to Eastern India a million eight-real pieces for articles of so little importance as are those which are brought thence; and what plan could be made to obviate this drain of silver, as we are in such need of it here.

The constable of Castilla said that the reports [from the other councils] discussed only the trade of the Philipinas with Macan; and it seemed to him that the plan which had been followed should be maintained, as it ought to be changed only after having examined and considered well the pros and cons, and there should be very urgent reasons for making such change.

Your Majesty will order this to be examined and such measures to be taken as shall be most satisfactory. Madrid, December 18, 1607.

[Endorsed, in the king’s hand: “All has been carefully considered, but the remedy is not easy.”]

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[1] The name applied to any knight of a military order who received one of die ecclesiastical benefices called encomiendas. These were suitably-endowed dignities conferred on knights of those orders.