It was known in the beginning that neither wine nor olive oil was produced in Nueva España, but these were brought from Castilla. Inspired by the example of the profits made by some persons, all—especially the inhabitants of Andalucía—began to plant vineyards and olive-orchards. He who had esteemed any kind of trade a degradation twenty years before, now, with the incentive of sending away his crops, shipped greater cargoes than would a whole fair of merchants. Consequently, the ocean trade increased, in a short time, from at most fifty or one hundred casks of wine and a few more jars of olive-oil—carried by one or two vessels, unauthorized and without register—to cargoes which fill thirty or forty vessels, that sail annually in a trading fleet. The vessel in which this is received is earthen, and of limited capacity; and what was slowly filling it continued to increase. Now this vessel is full to the brim, but still they obstinately continue to pour in more. Is it not evident that what is more than enough to fill it must overflow, and be the same as lost?
Thus was the land conquered in Perú. True reports were published concerning its so great abundance of wealth—that it was considered easier and cheaper to arm men and shoe horses with silver than with iron; and that for one quire of paper ten pesos of gold were paid, for one cloth cloak one hundred pesos, and for one horse three or four thousand pesos. At this report, various kinds of merchandise were brought, and had a continual good outlet and sale; and they were taken in the necessary quantity. Years passed, and the treasure—which was too plentiful, because it was in possession of people who had no use for it—came into the hands of those who finally saw it disseminated through the world—and for this reason the share of each part is less. The account that should be taken of reason and common sense is forgotten, and men persuade themselves blindly that, since they get a thousand for five hundred, with one million they must make two: And as if they could expect the same profit from supplying necessity and from adding to abundance, they multiply their trading-fleets and double their investments. Is it not evident that if their shipments are in excess, their profits must fall short, and that the ratio between the two cannot be equal to what it was before? Let the records of the customs duties belonging to your Majesty be examined, where those who profit and those who lose pay on account of what they produce; and they will tell how not only the commerce has not declined, but also that rather, through its having increased so greatly, the danger of losing the invested money results.
What their provinces can digest and assimilate, Sire, should be exported to the Indias, and a limit should be set to the hope of their increase, and endeavor should be made to preserve them in the extremely flourishing condition which they reached; and if efforts pass those limits, then, instead of causing the Indias to increase, it will be a greater blow, whereby they will slip back more quickly along the coast of decline.
Coming then to the particular matter, the question is one of suppressing the commerce now carried on with the Philipinas Islands by way of the South Sea. This may be advantageous to España in two ways: in making the kingdom of Méjico absolutely dependent on España’s aid, without leaving it any other recourse: and in increasing the proportions of their present trade by adding to that kingdom [i.e., España] that commerce from those islands by way of the Ocean Sea,[3] to which it is desired to direct the trade-route.
In the first place, it will be considered that Nueva-España passed many years without any communication with the Philipinas, and that the same will happen now if that commerce be taken away, although at the outset there may be some ill-feeling among them; and that the prevention of a thing so temporary, and in one province only, ought not to over-balance what is of so different an importance, as that España (the seat of your Majesty’s monarchy) should have plenty of money. For all that México sends to Manila will go to España, and should have an outlet for its merchandise, since from that must be supplied what Nueva-España now receives from the islands.
In order that Nueva-España may preserve itself if this trade be suppressed, the years while it lived without that trade have no consequence; for it would be a mistake to compare a period when that kingdom was in so early an infancy[4] that the royal incomes therein scarcely amounted to thirty or forty thousand ducados, and when in the whole kingdom the amount of outside capital employed did not surpass two hundred thousand, with what El Cerro[5] now alone produces, where one reckons the product by millions and takes no account of the tens and hundreds. From all this one may infer that whoever sits down to a meal, however plentiful, when he sees it growing less would doubtless have sufficient strength to call out and plead his hunger; and much more when we baptise business with the name of diet.
But this has not much force, since it is not intended to suppress, but only to change the mode of this supply. In order to see whether it be feasible, one should consider, that, barring certain articles of adornment and luxury, the chief exports from España to Méjico are wine, oil, and linen, and from the Philipinas woven and raw silk.
The former products, in whatever quantity needed, must always be bought from España. There is no other region that can supply them, nor does Méjico itself produce them; therefore its enforced dependence on España follows. However, in what pertains to linen, Méjico may supply itself in part by using the cloth that the Indians make from cotton. The rest (namely, silks supplied by Manila) may be obtained in great abundance, without begging it from anyone, by only encouraging the industry in any of Méjico’s provinces. These are very suitable for it, especially the province of Misteca,[6] where it could be cultivated and woven admirably.
Admitting the above, my opinion is that, allowing that Nueva-España could be maintained, although with difficulty, without trade with the Philipinas, it must be by means that would prove harmful to those islands alone—which would lose this aid without any resultant good to España; since they would not ask for those products of España which they at present demand, or increase those which they are now exporting because of the increase of money [in Nueva España]. And we have already stated that Nueva-España is incapable of consuming more wine and oil than it now uses.
But if all this should cease, and España should have to supply the above-mentioned necessities because of shutting the door to the trade in the Philipinas, the bulk of silk stuffs would have to be brought from Francia and Flandes, to whom España always gives her treasures in exchange for this merchandise. For Constantinopla is so far from Italia, and so little do gold and silver suit that route—or else the French and the rebels[7] are so skilful in getting this product away from us, that one may doubt whether they do not take it all with them. According to this, he who is not suspicious enough to believe that the merchants of Sevilla alone consider as enemies prejudicial to your Majesty’s crown those who do not trade much with them, should be astonished that they direct and regulate the reform so that the Chinese cannot avail themselves of the silver of Nueva España. For it is a fact that the Chinese do us no other harm than to keep the silver; and that the merchants do not consider that by that other road all tends to come into the hands of him who exerts himself with it in order to attempt and compass to acquire what remains.