With the coming of the Spaniards, domestic trade was upset. First of all, restrictions were imposed upon trade; communication between the villages was restrained.[5] Though later ordinances allowed freedom of commerce between villages and provinces,[6] the spirit of restriction predominated until modern times.[7]
Then, the government officials, though in many decrees and ordinances prohibited to engage in trade,[8] used their position as a means of gaining profits in trade.[9] This evil prevailed till later days.[10] However, as seen by Dr. Tavera, trading by the officials was not without its good effect.[11]
Trade relations with oriental countries.
The coming of the Spaniards opened a new market to the products of the Orient, and Manila soon became the great distributing center of the East.[12] “The merchants and business men form the bulk of the residents of the islands, because of the great amount of merchandise brought there—outside of native products—from China, Japan, Maluco, Malacca, Siam, Cambojia, Borneo, and other districts.”[13]
From China, from thirty to forty ships sailed every year usually in March, and reached Manila in fifteen or twenty days; here the traders sold their goods, and, with the exception of some of the larger dealers, returned towards the end of May or during the first days of June, in order to avoid the stormy season. Morga gives a detailed list of the goods imported from China.[14]
The merchandise brought by the Chinese were unloaded into champans (bancas), and taken to the Parian (Chinese quarter), or to other houses and magazines outside of the city, and there freely sold. No Spaniard, Sangley (Chinese trader), or any other person was allowed to go to the ship to buy or trade merchandise, food, or anything else. The purchase price was paid in silver and reals, for the Sangleys did not want gold, or any other articles, and would not take other things to China.
From Nagasaki, Japan, came Japanese and Portuguese merchants, who brought excellent wheat-flour and highly prized salt meats.[15] The bulk of the merchandise was used in the country. Returning to Japan, during the months of June and July, they carried with them raw Chinese silk, gold, deerskin, and brazil-wood for their dyes; also honey, manufactured wax, palm and Castilian wine, civet-cats, large tibors in which to store their tea, glass, cloth, and other curiosities from Spain.
From the Moluccas, Malacca, and India, the Portuguese imported many articles,[16] and in return took with them to the Moluccas rice, wine, crockery-ware, and other wares needed there; to Malacca, gold and money, besides a few special trinkets and curiosities from Spain, and emeralds.
Smaller vessels belonging to natives of Borneo also came to Manila, bringing well-made palm-mats, a few slaves, sago, and tibors; large and small jars, and excellent camphor; these articles were bought more by the Filipinos than by the Spaniards. The Borneans took with them wine and rice, cotton cloth, and other wares of the Philippines.