However, besides the subsidy, the Colony had certain other sources of public revenue, as will be seen by the following:—
Philippine Budget for the Year 1757
| Income. | |
| ₱ cts. | |
| Stamped Paper | 12,199 87½ |
| Port and Anchorage Dues | 25,938 00 |
| Sale of Offices, such as Notaries, Public Scribes, Secretaryships, etc. | 5,839 12½ |
| Offices hired out | 4,718 75 |
| Taxes farmed out | 28,500 00 |
| Excise duties | 4,195 00 |
| Sale of Encomiendas, and 22 provincial govts. hired out | 263,588 00 |
| Divers taxes, fines, pardons, etc. | 18,156 00 |
| Tribute, direct tax | 4,477 00 |
| Sudsidy from Mexico | 250,000 00 |
| Deficit | 79,844 00 |
| ₱ 697,455 75 |
| Expenditure. | |
| ₱ cts. | |
| Supreme Court | 34,219 75 |
| Treasury and Audit Office | 12,092 00 |
| University | 800 00 |
| Cost of the annual Galleon | 23,465 00 |
| Clergy | 103,751 00 |
| Land and sea forces all over the Philippines including offensive and defensive operations against Moros—Staff and Material | 312,864 00 |
| Salaries, Hospital and Divers Expenses | 70,158 00 |
| Remittance in Merchandise to Mexico on account of the Subsidy | 140,106 00 |
| ₱ 697,455 75 |
When the merchant citizens of Manila were in clover, they made donations to the Government to cover the deficits, and loans were raised amongst them to defray extraordinary disbursements, such as expeditions against the Mahometans, etc. In the good years, too, the valuation of the merchandise shipped and the corresponding returns were underrated in the sworn declarations, so that an immensely profitable trade was done on a larger scale than was legally permitted. Between 1754 and 1759, in view of the reduced profits, due to the circumstances already mentioned, the Manila merchants prayed the King for a reduction of the royal dues, which had been originally fixed on the basis of the gross returns being equal to double the cost of the merchandise laid down in Acapulco. To meet the case, another Royal Decree was issued confirming the fixed rate of royal dues and disbursements, but in compensation the cargo was thenceforth permitted to include 4,000 pieces of fine linen, without restriction as to measure or value; the sworn value was abolished, and the maximum return value of the whole shipment was raised to one-and-a-half millions of pesos. Hence the total dues and disbursements became equal to 11⅓ per cent. instead of 17 per cent., as heretofore, on the anticipated return value.
In 1763 the Subsidy, together with the Consulado shippersʼ returns, amounted in one voyage to two-and-a-half millions of pesos (vide p. [88]). After the independence of Mexico (1819), tribute in kind (tobacco) was, until recently, shipped direct to Spain, and Peninsula coin began to circulate in these Islands (vide Currency).
Consequent on the banishment of the non-christian Chinese in 1755, trade became stagnant. The Philippines now experienced what Spain had felt since the reign of Phillip III., when the expulsion of 900,000 Moorish agriculturists and artisans crippled her home industries, which needed a century and a half to revive. The Acapulco trade was fast on the wane, and the Manila Spanish merchants were anxious to get the local trade into their own hands. Every Chinese shop was closed by Government order, and a joint-stock trading company of Spaniards and half-breeds was formed with a capital of ₱76,500, in shares of ₱500 each. Stores were opened in the business quarter, each under the control of two Spaniards or half-breeds, the total number of shopmen being 21. The object of the company was to purchase clothing and staple goods of all kinds required in the Islands, and to sell the same at 30 per cent. over cost price. Out of the 30 per cent. were to be paid an 8 per cent. tax, a dividend of 10 per cent. per annum to the shareholders, and the remainder was to cover salaries and form a reserve fund for new investments. The company found it impossible to make the same bargains with the Chinese sellers as the Chinese buyers had done, and a large portion of the capital was soon lost. The funds at that date in the Obras Pias amounted to ₱159,000, and the trustees were applied to by the company for financial support, which they refused. The Governor was petitioned; theologians and magistrates were consulted on the subject. The theological objections were overruled by the judicial arguments, and the Governor ordered that ₱130,000 of the Obras Pias funds should be loaned to the company on debentures; nevertheless, within a year the company failed.
A commercial company, known as the “Compañia Guipuzcoana de Carácas,” was then created under royal sanction, and obtained certain privileges. During the term of its existence, it almost monopolized the Philippine-American trade, which was yet carried on exclusively in the State galleons. On the expiration of its charter, about the year 1783, a petition was presented to the Home Government, praying for a renewal of monopolies and privileges in favour of a new trading corporation, to be founded on a modified basis. Consequently, a charter (Real cédula) was granted on March 10, 1785, to a company, bearing the style and title of the “Real Compañia de Filipinas.” Its capital was ₱8,000,000, in 32,000 shares of ₱250 each. King Charles III. took up 4,000 shares; another 3,000 shares were reserved for the friars and the Manila Spanish or native residents, and the balance was allotted in the Peninsula.
The defunct company had engaged solely in the American trade, employing the galleons; its successor left that sphere of commerce and proposed to trade with the East and Europe.
”[6]To the ʼReal Compañia de Filipinasʼ was conceded the exclusive privilege of trade between Spain and the Archipelago, with the exception of the traffic between Manila and Acapulco. Its ships could fly the Royal Standard, with a signal to distinguish them from war-vessels. It was allowed two years, counting from the date of charter, to acquire foreign-built vessels and register them under the Spanish flag, free of fees. It could import, duty free, any goods for the fitting out of its ships, or shipsʼ use. It could take into its service royal naval officers, and, whilst these were so employed, their seniority would continue to count, and in all respects they would enjoy the same rights as if they were serving in the navy. It could engage foreign sailors and officers, always provided that the captain and chief officer were Spaniards. All existing Royal Decrees and Orders, forbidding the importation into the Peninsula of stuffs and manufactured articles from India, China, and Japan were abrogated in favour of this company. Philippine produce, too, shipped to Spain by the company, could enter duty free. The prohibition on direct traffic with China and India was thenceforth abolished in favour of all Manila merchants, and the companyʼs ships in particular could call at Chinese ports. The company undertook to support Philippine agriculture, and to spend, with this object, 4 per cent, of its nett profits.”