Legaspi soon perceived the advantages which would accrue to his conquest by fostering the development of commerce with these Islands; and, as an inducement to the Chinese to continue their traffic, he severely punished all acts of violence committed against them.
In the course of time the Chinese had gained sufficient confidence under European protection, to come ashore with their wares. In 1588, Chinese were already paying rent for the land they occupied. Some writers assert that they propagated their religious doctrines as well as their customs, but nothing can be found to confirm this statement, and a knowledge of Chinese habits inclines one to think it most improbable. In their trading junks they frequently carried their idols, as a Romish priest carries his missal when he travels. The natives may have imitated the Chinese religious rites years before the Spaniards came. There is no evidence adduced to prove that they made any endeavour to proselytize the natives as the Spaniards did. On the other hand, there is reason to believe that some idols, lost by the Chinese in shipwreck and piratical attacks, have been, and still are, revered by the natives as authenticated miraculous images of Christian Saints (vide “Holy Child of Cebú” and “Our Lady of Cagsaysay”).
The Chinese contributed, in a large measure, to bring about a state of order and prosperity in the new Colony, by the introduction of their small trades and industries; and their traffic in the interior, and with China, was really beneficial, in those times, to the object which the conquerors had in view. So numerous, however, did they become, that it was found necessary to regulate the growing commerce and the modus vivendi of the foreign traders.
In the bad weather they were unable to go to and from their junks, and, fearing lest under such circumstances the trade would fall off, the Government determined to provide them with a large building called the Alcayceria. The contract for its construction was offered to any private person or corporation willing to take it up on the following terms, viz.:—The original cost, the annual expense of maintenance, and the annual rents received from the Chinese tenants were to be equally shared by the Government and the contractor. The contract was accepted by a certain Fernando de Mier y Noriega, who was appointed bailiff of the Alcayceria for life, and the employment was to be hereditary in his family, at a salary of 50 pesos per month. However, when the plan was submitted to the Government, it was considered too extensive, and was consequently greatly reduced, the Government defraying the total cost (₱ 48,000). The bailiffʼs salary was likewise reduced to ₱ 25 per month, and only the condition of sharing rent and expense of preservation was maintained. The Alcayceria, was a square of shops, with a back store, and one apartment above each tenement. It was inaugurated in 1580, in the Calle de San Fernando, in Binondo, opposite to where is now the Harbour-Masterʼs Office, and within firing range of the forts. In the course of years this became a ruin, and on the same site Government Stores were built in 1856. These, too, were wrecked in their turn by the great earthquake of 1863. In the meantime, the Chinese had long ago spread far beyond the limits of the Alcayceria, and another centre had been provided for them within the City of Manila. This was called the Parian, which is the Mexican word for market-place. It was demolished by Government order in 1860, but the entrance to the city at that part (constructed in 1782) still retains the name of Puerta del Parian.
Hence it will be seen that from the time of the conquest, and for generations following, the Spanish authorities offered encouragement and protection to the Chinese.
Dr. Antonio Morga, in his work on the Philippines, p. 349, writes (at the close of the 16th century): “It is true the town cannot exist without the Chinese, as they are workers in all trades and business, and very industrious and work for small wages.”
Juan de la Concepcion writes[1] (referring to the beginning of the 17th century); “Without the trade and commerce of the Chinese, these dominions could not have subsisted.” The same writer estimates the number of Chinese in the Colony in 1638 at 33,000.[2]
In 1686 the policy of fixing the statutory maximum number of Chinese at 6,000 was discussed, but commercial conveniences outweighed its adoption. Had the measure been carried out, it was proposed to lodge them all in one place within easy cannon range, in view of a possible rising.
In 1755 it was resolved to expel all non-Christian Chinese, but a term was allowed for the liquidation of their affairs and withdrawal. By June 30, 1755, the day fixed for their departure from Manila, 515 Chinamen had been sharp enough to obtain baptism as Christians, in order to evade the edict, besides 1,108 who were permitted to remain because they were studying the mysteries and intricacies of Christianity. 2,070 were banished from Manila, the expulsion being rigidly enforced on those newly arriving in junks.
Except a few Europeans and a score of Western Asiatics, the Chinese who remained were the only merchants in the Archipelago. The natives had neither knowledge, tact, energy, nor desire to compete with them. The Chinese were a boon to the Colony, for, without them, living would have been far dearer—commodities and labour of all kinds more scarce, and the export and import trade much embarrassed. The Chinese and the Japanese are really the people who gave to the natives the first notions of trade, industry, and fruitful work. The Chinese taught them, amongst many other useful things, the extraction of saccharine juice from the sugar-cane, the manufacture of sugar, and the working of wrought iron. They introduced into the Colony the first sugar-mills with vertical stone crushers, and iron boiling-pans.