Such was the commencement, and such were the early regulations of this commerce; but its present condition being a much more interesting subject, I must beg leave to dwell longer on this head, and to be indulged in a more particular narration, beginning with a description of the island of Luconia, and of the port and bay of Manila.

The island of Luconia, though situated in the latitude of 15° north, is esteemed to be in general extremely healthy, and the water that is found upon it is said to be the best in the world. It produces all the fruits of the warm climates, and abounds in a most excellent breed of horses, supposed to be carried thither first from Spain. It is very well seated for the Indian and Chinese trade; and the bay and port of Manila, which lies on its western side, is perhaps the most remarkable on the whole globe, the bay being a large circular bason, near ten leagues in diameter, great part of it entirely land-locked. On the east side of this bay stands the city of Manila, which is large and populous, and which, at the beginning of this war, was only an open place, its principal defence consisting in a small fort, which was almost surrounded on every side by houses; but they have lately made considerable additions to its fortifications, though I have not yet learnt after what manner. The port, peculiar to the city, is called Cabite, and lies near two leagues to the southward: and in this port all the ships employed for the Acapulco trade are usually stationed.

The city of Manila itself is in a healthy situation, is well watered, and is in the neighbourhood of a very fruitful and plentiful country; but as the principal business of this place is its trade to Acapulco, it lies under some disadvantage from the difficulty there is in getting to sea to the eastward: for the passage is among islands and through channels, where the Spaniards, by reason of their unskilfulness in marine affairs, waste much time, and are often in great danger.

The trade carried on from this place to China and different parts of India is principally for such commodities as are intended to supply the kingdoms of Mexico and Peru. These are spices, all sorts of Chinese silks and manufactures, particularly silk stockings, of which I have heard that no less than fifty thousand pair were the usual number shipped in each cargoe; vast quantities of Indian stuffs, as callicoes and chints, which are much worn in America, together with other minuter articles, as goldsmiths' work, etc., which is principally wrought at the city of Manila itself by the Chinese; for it is said there are at least twenty thousand Chinese who constantly reside there, either as servants, manufacturers, or brokers. All these different commodities are collected at Manila, thence to be transported annually in one or more ships to the port of Acapulco in the kingdom of Mexico.

This trade to Acapulco is not laid open to all the inhabitants of Manila, but is confined by very particular regulations, somewhat analogous to those by which the trade of the register ships from Cadiz to the West Indies is restrained. The ships employed herein are found by the King of Spain, who pays the officers and crew; and the tunnage is divided into a certain number of bales, all of the same size: these are distributed amongst the convents at Manila, but principally to the Jesuits, as a donation to support their missions for the propagation of the Catholick faith; and the convents have thereby a right to embark such a quantity of goods on board the Manila ship as the tunnage of their bales amounts to; or if they chuse not to be concerned in trade themselves, they have the power of selling this privilege to others: nor is it uncommon, when the merchant to whom they sell their share is unprovided of a stock, for the convent to lend him considerable sums of money on bottomry.

The trade is by the royal edicts limited to a certain value, which the annual cargoe ought not to exceed. Some Spanish manuscripts I have seen, mention this limitation to be 600,000 dollars; but the annual cargoe does certainly surpass this sum, and though it may be difficult to fix its exact value, yet from many comparisons I conclude that the return cannot be much short of three millions of dollars.

As it is sufficiently obvious that the greatest share of the treasure returned from Acapulco to Manila does not remain in that place, but is again dispersed into different parts of India; and as all European nations have generally esteemed it good policy to keep their American settlements in an immediate dependence on the mother country, without permitting them to carry on directly any gainful traffick with other powers; these considerations have occasioned many remonstrances to be presented to the court of Spain against this Indian trade allowed to the kingdom of Mexico. It has been urged that the silk manufactures of Valencia and other parts of Spain are hereby greatly prejudiced, and the linens carried from Cadiz much injured in their sale: since the Chinese silks coming almost directly to Acapulco, can be afforded considerably cheaper there than any European manufactures of equal goodness, and the cotton from the Coromandel coast makes the European linens nearly useless. So that the Manila trade renders both Mexico and Peru less dependant upon Spain for a supply of their necessities than they ought to be, and exhausts those countries of a considerable quantity of silver, the greatest part of which, were this trade prohibited, would center in Spain, either in payment for Spanish commodities, or in gains to the Spanish merchant: whereas now the only advantage which arises from it is the enriching the Jesuits, and a few particular persons besides, at the other extremity of the world. These arguments did so far influence Don Joseph Patinho, who was formerly prime minister, and an enemy to the Jesuits, that about the year 1725 he had resolved to abolish this trade, and to have permitted no Indian commodities to be introduced into any of the Spanish ports in the West Indies, except such as were brought thither by the register ships from Europe. But the powerful untrigues of the Jesuits prevented this regulation from taking place.

This trade from Manila to Acapulco and back again is usually carried on in one or at most two annual ships, which set sail from Manila about July, and arrive at Acapulco in the December, January, or February following; and having there disposed of their effects, return for Manila some time in March, where they generally arrive in June; so that the whole voyage takes up very near an entire year. For this reason, though there is often no more than one ship freighted at a time, yet there is always one ready for the sea when the other arrives; and therefore the commerce at Manila is provided with three or four stout ships, that in case of any accident the trade may not be suspended. The largest of these ships, whose name I have not learnt, is described as little less than one of our first-rate men-of-war; and indeed she must be of an enormous size, as it is known that when she was employed with other ships from the same port to cruise for our China trade, she had no less than twelve hundred men on board. Their other ships, though far inferior in bulk to this, are yet stout large vessels, of the burthen of twelve hundred tun and upwards, and usually carry from three hundred and fifty to six hundred hands, passengers included, with fifty odd guns. As these are all king's ships, commissioned and paid by him, there is usually one amongst the captains stiled the general, and he carries the royal standard of Spain at the main topgallant mast-head, as we shall more particularly observe hereafter.

And now having described the city and port of Manila, and the shipping employed by its inhabitants, it is necessary to give a more circumstantial detail of the navigation from thence to Acapulco. The ship having received her cargo on board, and being fitted for the sea, generally weighs from the mole of Cabite about the middle of July, taking the advantage of the westerly monsoon, which then sets in. It appears that the getting through the channel called the Boccadero, to the eastward, must be a troublesome navigation, and in fact it is sometimes the end of August before they compleat it. When they have cleared this passage, and are disintangled from the islands, they stand to the northward of the east, till they arrive in the latitude of thirty degrees or upwards, where they expect to meet with westerly winds, before which they stretch away for the coast of California.