One galleon a year was not enough to meet the needs of merchants who wished to ship goods to Mexico. In 1724, therefore, a royal decree was made public that thereafter two galleons of 500 tons each would be sent. This decree, however, limited the number of merchants who might ship goods, and the amount which each might send. It also fixed the amount in cash that might be taken in payment. All values over this amount must be taken in Mexican goods.
A few years later this decree was revoked. Only one galleon a year was to be sent, and new and more severe restrictions were put upon all shipments. It became more and more difficult, as time went on, for the merchants of Manila to carry on trade.
During the eighteenth century no foreign merchants were allowed to do business in Manila. Spain, in fact, did all that she could to kill trade and industry in the islands. At the same time she compelled those who ruled the country to enforce payment of the last penny’s value of tribute that could be drained from the country.
The governor-general at this time (1754–1759) was Pedro de Arandia (dā ä rän´dē ä). He was one of the most able and enterprising officials the islands had thus far had. He tried to make a good many reforms in the country, and to build up its commerce. He is said to have died of worry and regret that he could not rule the land as he thought right, and at the same time be at peace with those about him who were also in authority.
THE SANTA LUCIA GATE, MANILA.
Arandia showed himself to be something of a statesman. He made reforms in the army, and tried to bring the wild tribes to acknowledge Spain’s rights in the islands. At the same time he did many dishonest things. He made a great fortune for himself while in office. Perhaps he was sorry for his dishonesty afterwards, for when he died he left his fortune to religious institutions. In those days men saw no wrong or absurdity in devoting ill-gotten wealth to carrying on good works.
It was Arandia who formed the first real military body in the country. This was a regiment made up of five companies of Filipino soldiers and four companies of Europeans. The latter Arandia had brought with him from Mexico. He called the whole corps the “King’s Regiment,” and took great pride in it. As troops came in from the provinces they were added to the regiment, until at last it numbered about 2,000 soldiers in two battalions of ten companies each. In October of 1754 the soldiers, for the first time in the history of the islands, were quartered in barracks. They were also, both officers and men, paid regularly every two weeks.
In 1755 the Chinese question came up again. This time it was decided to send home all those Chinese who would not be baptized. They were given a few months to wind up their business, and a day was set when they should leave the islands. All who accepted baptism were allowed to remain, and a good many did this. Over 2,000, however, were sent out of the country on June 30, 1755.
Need now arose for shops and for small traders to carry on business in place of these Chinese. To supply this need a trading company of Spanish and half-Spanish was formed in Manila. This trading company was in existence for some years, but was never very successful. It could not buy on as good terms as the Chinese had been able to make, nor could it sell to such good advantage. It received a great deal of aid from the government, but finally made a bad failure and went out of business.