Inasmuch as this amount does not suffice for the expenses that are incurred, the royal treasury of Nueva España sends annually to that of the Filipinas, in addition to the above revenues, some assistance in money—a greater or less sum, as necessity requires. For his Majesty has thus provided for it from the proceeds of the ten per cent duties on the Chinese merchandise that are collected at the port of Acapulco in Nueva España. This assistance is given into the keeping of the royal officials in Manila, and they take charge of it, with the rest of the revenues that they manage and collect.

From all this gross sum of his Majesty's revenue, the salaries of the governor and royal Audiencia are paid, as well as the stipends of prelates and ecclesiastical prebendaries, the salaries of the magistrates, and of the royal officials and their assistants; the pay of all the military officers and regular soldiers; his Majesty's share of the stipends for instruction, and the building of churches and their ornaments; the concessions and gratifications that he has allowed to certain monasteries, and private persons; the building of large vessels for the navigation to Nueva España, and of galleys and other vessels for the defense of the islands; expenses for gunpowder and ammunition; the casting of artillery, and its care; the expense arising for expeditions and individual undertakings in the islands, and in their defense; that of navigations to, and negotiations with, the kingdoms in their vicinity, which are quite common and necessary. Consequently, since his Majesty's revenues in these islands are so limited, and his expenses so great, the royal treasury falls short, and suffers poverty and need. [422]

The proceeds from the ten per cent duties and the freight charges of the ships, which are collected at Acapulco in Nueva España, on the merchandise sent there from the Filipinas, although considerable, are also not always sufficient for the expenses incurred in Nueva España with the ships, soldiers, ammunition, and other supplies sent annually to the Filipinas. These expenses are generally greatly in excess of those duties, and the amount is made up from the royal treasury of Mexico. Consequently, the king our sovereign derives as yet no profit from any revenues of the Filipinas, but rather an expenditure, by no means small, from his revenues in Nueva España. He sustains the Filipinas only for the christianization and conversion of the natives, and for the hopes of greater fruits in other kingdoms and provinces of Asia, which are expected through this gateway, at God's good pleasure.

Every year the Audiencia audits the accounts of the royal officials of his Majesty's revenues, strikes the balances, and sends the accounts to the tribunal of accounts in Mexico. [423]

In the city of Manila, and in all those Spanish settlements of the islands, reside Sangleys, who have come from Great China, besides the merchants. They have appointed settlements and are engaged in various trades, and go to the islands for their livelihood. Some possess their pariáns and shops. Some engage in fishing and farming among the natives, throughout the country; and go from one island to another to trade, in large or small champans. [424]

The annual vessels from Great China bring these Sangleys in great numbers, especially to the city of Manila, for the sake of the profits that are gained from their fares. As there is a superabundance of population in China, and the wages and profits there are little, they regard as of importance whatever they get in the Filipinas.

Very great annoyances result from this; for, not only can there be little security to the country with so many infidels, but the Sangleys are a wicked and vicious race. Through intercourse and communication with them, the natives improve little in Christianity and morals. And since they come in such numbers and are so great eaters, they raise the price of provisions, and consume them.

It is true that the city could not be maintained or preserved without these Sangleys; for they are the mechanics in all trades, and are excellent workmen and work for suitable prices. But a less number of them would suffice for this, and would avoid the inconvenience of so many people as are usually in Manila when the ships arrive—to say nothing of the many Chinese who go about among the islands, under pretext of trading with the natives, and there commit innumerable crimes and offenses. At the least, they explore all the country, the rivers, creeks, and ports, and know them better than the Spaniards do; and they will be of great harm and injury in case of any revolt or hostile invasion of the islands.

In order to remedy all the above, it was ordered that the vessels should not bring so many people of this kind, under penalties that are executed; that, when the vessels return to China, they take these Sangleys back with them; that only a convenient number of merchants remain in Manila, in the Parián, and the mechanics of all necessary trades; and that these must have written license, under severe penalties. In the execution of this, an auditor of the Audiencia is engaged by special commission every year, together with some assistants. On petition of the city cabildo, he usually allows as many Sangleys to remain as are necessary for the service of all trades and occupations. The rest are embarked and compelled to return in the vessels going to China, and a great deal of force and violence [425] is necessary to accomplish it.

Those merchants and artisans who remained in Manila before the revolt of the year six hundred and three had settled the Parián and its shops. The Parián is a large enclosed alcaicería of many streets, at some distance from the city walls. It is near the river, and its location is called San Graviel. There they have their own governor, who has his tribunal and prison, and his assistants; these administer justice to them, and watch them day and night, so that they may live in security, and not commit disorders.