Once a year, usually in July, a galleon left Manila laden with goods from the islands. These were sold in Mexico, and the money which they brought, or an equal value in Mexican goods, was sent back on the return galleon. We have seen how great were the risks which these ships ran in making their voyages. The enemies of Spain often captured them, while some were lost at sea and never again heard from. It was not all romance, the life of those who sailed and manned the galleons. Often there was greed and cruelty to contend with, rather than poetry and story to be lived. Always there was danger, and it was not the spirit of adventure, but the desire for gain that sent these men to sea.
The many risks which the galleons ran made shipping ventures uncertain. Nor was this the greatest ill which the Manila merchants had to bear. The merchants of Spain were always jealous of them, for they were afraid that the island trade with China and with Mexico would hurt their own business. So they were always clamoring for laws that should keep Manila merchants from dealing with those countries.
By the beginning of the eighteenth century very harsh laws had been made governing all shipments. Goods might be shipped only in bales of a certain size and weight, and only a limited number of bales might be sent by each galleon. Nor did the restrictions end here. There were some goods in which Manila merchants might not deal at all. They could ship no woven stuffs save the finest linen. If the goods sent to Mexico by the Philippine Government brought more than a certain amount in Mexico, the full sum could not be sent back in money. The islands must take the surplus in Mexican goods.
THE ARRIVAL OF A SPANISH GALLEON.
So business suffered, and each year the country grew poorer. At the same time the men who ruled the country grew very rich. One acting governor-general, in less than two years of service, got together a fortune of $250,000. There were other officials, as well, who managed to take home with them to Spain sums nearly as large.
All this, of course, worked hardship in the islands. Money was very scarce. Merchants became bankrupt and had to go out of business. Often the government itself had no money with which to pay for public work. The army, too, suffered. The soldiers had no barracks, but lived as they could, and wherever they found shelter. Often there were long periods when no rations were issued to them, and they begged their food from house to house. When their demands were not granted, they would take by force what they wished, and this led to great evil.
A large army was needed to control the people and to enforce payment of tribute. This tribute was collected from the natives for the support of the government. Those who had not yet been baptized were taxed only a small sum; those who belonged to the Church paid more.
Few, however, paid in money. Nearly all paid in kind—in goods which they made, or produce which they raised from the land. All tribute in goods was kept in the royal storehouses until the galleon was about to sail. Then the goods were sent to Mexico, to be sold. Sometimes, however, some of these goods were traded for merchandise brought to the islands by Chinese dealers.
A certain per cent. of the price which the shipments brought in Mexico was sent back to Manila to pay government expenses. Usually, however, this fixed percentage was not sufficient to meet these expenses. It was needful, then, to increase it by a further sum from the royal treasury. This additional sum was called the “Real Situado” (rā´äl sē tö´ä dō).