The ruling which sent the Chinese out of the islands worked other harm to the business of the country. Not only were there none to do the work which the Chinese had done, but their going was a direct money loss to the government. The Chinese had been heavily taxed, and when they were sent away a shortage of $30,000 in the tax receipts followed as a direct result. This made money so scarce in Manila that a petition was sent to Spain asking for a reduction of the royal dues. These royal dues were the amount which the colony had each year to raise for the king, and the government was now scarcely able to collect it from the people.

But Spain was in great need of money. Wars with other nations had almost emptied her treasury, and the petition for reduction was refused. A decree was passed, however, which made things a little easier for the merchants. The islands must pay the full amount of the royal dues, but merchants might send by the galleon more goods and goods of a finer quality than before. They might also bring back more Mexican goods. In this way they could make more money, and thus the country was better able to raise the sums demanded.

Summary.—The only trading ships that carried shipments of goods from Manila were the Spanish galleons. The entire trade of the islands was with Mexico, and was restricted by very severe laws. A galleon sailed but once a year, and the amount of goods which could be sent by her was limited by law. The great risks which the galleons ran made shipments uncertain of return, and business was at a disadvantage. In 1724 a decree was made public allowing two galleons a year, of 500 tons each, to be sent. The number of merchants who could ship goods was now limited, and the amount that each could send. Later this decree was revoked. Only one galleon could be sent, and more severe restrictions were put upon shipments. No foreign merchants were allowed to do business in Manila. In 1754 Pedro de Arandia became governor-general. He made many improvements in the army, and tried to build up trade. He formed the first real military body in the islands, and called it the “King’s Regiment.” In 1755 a law was made that all Chinese who refused baptism should be sent out of the country on June 30. Over 2,000 were sent away on that day. This made a dearth of traders, and a trading company of Spanish and half-Spanish was formed. It was never a success, however. The departure of these Chinese cost the country a loss of $30,000 in taxes that year. This made times so hard that the colony prayed the king for a reduction in the royal dues. Their petition was refused, but some of the restrictions in regard to shipments by the galleon were made lighter. Merchants could ship more and better goods. This made matters easier, and the country could better meet the demands of the Crown.

Questions.—What were the Spanish galleons? How often did they sail? When did the last one leave Manila for Mexico? Why were such severe restrictions put upon the trade of the islands? What were some of these restrictions? What improvements did Governor-General Arandia make in the army? Give an account of the decree expelling the Chinese from the islands. What effect followed the departure of the Chinese?

Chapter X.
THE ISLANDS UNDER ARANDIA’S RULE.

It was while Pedro de Arandia was governor-general that the famous overflow of Taal volcano took place. At that time the crater of Taal was torn open so that it measured more than a mile and a half across, and from this awful opening poured down a broad stream of melted lava, killing and destroying everything that it touched. It rushed down the side of the mountain and fell hot and hissing into the lake. Great clouds of steam arose from the heated waters, and such a shower of ashes and stones fell as made the people think the world was coming to an end.

For six months terrible storms raged in that part of Luzon. The volcano broke out on the 15th day of May, 1754, and it was then that the boiling lava began to flow. Huge stones shot up from the crater and fell into the lake, or were hurled down upon the land. Darkness reigned, and the people were filled with terror.

This state of things lasted until about the second day of June. Then, suddenly, a mighty column of smoke arose from the mountain, thick, black, and awful. Higher and higher it mounted, until it spread over the sky, and the sun shone through it with a sickly yellow light.