[A decree of the same date and of like tenor, addressed to the fiscal of the Manila Audiencia, Juan de Quesada Vitado y Mendoça, follows, in which he is ordered to prosecute the case. A decree of the same date is also addressed to the royal officials; which, after the same general statement at the beginning, continues: “And although I order that Audiencia by another of my decrees of equal date with this to attend to the remedy of this damage, and the fiscal to plead in prosecution what he sees to be necessary, I have thought it best to advise you of it, so that after you have understood it, if you are sure that there is fraud in the collection and administration of my royal duties, you also shall plead what you consider to be advisable, since you see what is your obligation by virtue of your office. And of what you shall hear, and what shall be done, you shall keep me advised.”]
Sire:
Don Juan Grau y Monfalcon, procurator-general of the noble and loyal city of Manila, metropolis and capital of the Philipinas Islands, declares that the past year he represented to your Majesty the great damages and injuries which the inhabitants of that city are experiencing from the Portuguese of Macan having introduced the custom of going to buy their merchandise at the fair of Canton in China, and bringing the same to the city of Manila to retail it—where they make a monopoly of it, without the inhabitants [of Manila] being able to make any profit, such as they had before when the Chinese came to the said city to sell their merchandise. The latter, besides selling the merchandise for very suitable prices, gave credit for them until they came back again. Without spending money, the inhabitants then were benefited, and sent the said merchandise to Nueva España, and made very great profits on it. All this has ceased with the coming of the Portuguese, who not only give no credit, but sell the merchandise for excessive prices. If they do not receive the pay that they wish for the goods, they send them to Mexico at their own account. As they are settled in Manila, they keep the merchandise from one year to another. The Sangleys did not do that; for, in order to be able to return, they sold the goods at very suitable prices, or gave credit for them, by which the inhabitants made considerable profits. As that profit has ceased, they are becoming very poor, and have no capital, and there is no help for it. What they gained the Portuguese now gain; and the latter withdraw thrice as much money from Manila as the Sangleys did. The latter exchanged a great part of their merchandise for products of the country, which the Portuguese do not do, but take away the money in bars and reals. And although they allege in their favor, in order to continue the trade, that they are vassals of his Majesty, and that it is right for them to trade and traffic in Manila as in Castilla and in other parts of España, the fact is excluded that the inhabitants of that city have conquered those islands and shed their blood in that conquest, and always have arms in their hands for their defense. It is right that they alone should have this advantage (as your Majesty orders by the many decrees which have been despatched in regard to this), and not the Portuguese, who have and have always had places to trade and traffic in Portuguese India, Japon, China, and many other parts. It is not right to snatch the bread from the hands of the inhabitants of Manila, who have no other trade or means of gain save that in the merchandise of China. If relief is not given in this very quickly, all the commerce of that city will be destroyed, and it is now so fallen for this reason. Besides, it is prohibited to the inhabitants of those islands by decrees, and in particular by one of the year 593, to go to the Canton fair or to China, as the Portuguese go to buy. It is also prohibited by many decrees for any Portuguese, notwithstanding that they are vassals of your Majesty, to trade or traffic in the provinces of the Indias without special permission. This same thing must be observed in Manila, just as it is observed in Nueva España and Piru.
Certain reasons that were presented having been examined in the royal Council of the Indias, it was ordered by a decree despatched November ten, one thousand six hundred and thirty-four, to send all the papers which were presented in behalf of that city to the governor and Audiencia of Manila; and commission was given to them so that, after examination of the documents by the fiscal and the royal officials (to whom a decree of like tenor was sent), they might apply in this matter such remedy as they deemed most advisable, and as a matter so important for the preservation of those islands demands.
King Don Felipe Second, having considered and foreseen the many difficulties [involved in decreeing] that no one of his vassals go to China to buy merchandise from the Chinese, ordered the said decree to be despatched January eleven, of the said year, one thousand five hundred and ninety-three (a copy of which is here presented), by which he ordered Gomez Perez Dasmariñas, governor of Manila, not to allow any inhabitants of those islands to go to China to buy merchandise from the Chinese; but to have the latter come to that city to sell them, at their own risk. That decree was enforced until the year one thousand six hundred and six; but it is now violated because the Portuguese have crossed over, contrary to the order of the said decree. They go to China, which is the act prohibited in the decree; and not only do they cause that damage, but they also deprive the inhabitants [of Manila] of the benefit which they had of receiving on credit the merchandise from the Chinese who go to that city. Further, they bought the goods at very low prices, since, in accordance with the terms of the said decree, the governor and the city set the prices for the merchandise, which was a thing of great importance. And in order that the Chinese might return to Manila, and the inhabitants enjoy the profits and accommodations of former times, and the terms of the said decree of 593 might be obeyed, in which all the trouble that happens now was anticipated; and for confirmation of the above statement, and so that your Majesty may see that not only do the inhabitants of that city suffer damage because the Portuguese go to it with Chinese merchandise, but that your Majesty also loses vast sums of which the royal duties are defrauded: will you be pleased to order the certification which the writer presents, from the accountant of the official visit to be examined. From this, it is apparent that during the last thirteen years while the Sangleys had the trade in that city—from the year one thousand six hundred and six until that of one thousand six hundred and eighteen—they paid in duties to your Majesty, 574,627 pesos and six tomins; and that in another thirteen years while the said Portuguese of Macan have had the said trade, they have paid only 90,041 pesos. Figuring one period against the other, the royal treasury has had a shortage of 483,986 pesos and four tomins, a considerable quantity in only thirteen years. And, in order that this truth may be apparent to your Majesty, the writer presents the said certification of the annual amounts of the said duties, for both the thirteen years of the Portuguese and the thirteen of the Chinese.
[He also invites] consideration of the fact that the purpose of the said royal decree of 593 is subverted and violated by the commerce which the Portuguese of Macan carry on in China in order to take the merchandise by way of retail to the said city of Manila; for the said purpose declared in the said royal decree is that the said merchandise of China shall enter into the said Manila through the hands of the said Chinese, and at their own account and risk, as the said decree says, without any other persons being authorized to meddle in it at all, or any merchants save the said Chinese. Thus the said violation is manifest, since the said Portuguese are the ones who carry and deliver the merchandise in the said city, by means of the said commerce which they have in China. Without that it would be impossible to take them to Manila, or to violate the said royal decree. Since they are not deserving of greater favor or benefit than the inhabitants of the said city—in whom concur so many merits and services, as is well known, and to whom the said commerce is denied by the said decree of 593—nor is there any cause or reason why the said Portuguese, who can not urge the said services, and who only think of the said retailing of goods and of their own interest and greed, should be permitted to trade; he petitions and beseeches your Majesty to be pleased to have a second decree of like tenor to that of the year 593 issued, so that it may be observed and obeyed exactly, as is stated therein. In it also should be included the case above mentioned, or it should be ordered anew that the said Portuguese shall not conduct or continue the said commerce in the said city—at least making it an offense to carry to Manila the said merchandise for which they trade in China, imposing therefor heavy penalties of confiscation, and others more severe in case of violation. By this the royal treasury will receive great benefit and increase, and avoid the so considerable injury and loss that has been set forth; and the said city and its inhabitants will receive an especial favor and grace, as is hoped from the greatness and the royal authority of your Majesty.
Further, he besought your Majesty to have filed with this memorial the letters which were in the secretary’s office, written by the governor and Audiencia in regard to what is represented in the memorial; so that after the whole has been examined, the decision most fitting to the service of your Majesty and the preservation of those islands may be made. And that the great troubles that follow from the aforesaid may be seen, he petitions that an examination he ordered to be made of the memorial of seventeen articles which was presented by Jusepe de Naveda, regidor of that city.
Decree of our sovereign King Don Felipe Second, by which it is prohibited that any one go to China to buy merchandise from the Chinese; but the latter must go to the city of Manila to carry them, and sell them at their own cost and risk—in which decree are to be included the Portuguese of Macan.
The King. To Gomez Perez Dasmariñas, my governor and captain-general of the Philipinas Islands, and any other person who shall hereafter serve in the said office: know that I have been informed that many persons of those islands are going to Macan and other ports of China to trade and traffic with the Chinese for the profit that results from it. From that result higher prices for the merchandise, and other notable inconveniences. And as it is fitting that a remedy be applied in this matter, I have determined to prohibit and to order—as I do by this present prohibit, forbid, and order—that no person, now and henceforth, shall trade or traffic in any part of China; nor shall any merchandise, on account of the merchants of the said islands, be carried or permitted to be carried from that kingdom to the islands, unless the Chinese themselves, at their own account and risk, shall carry it to the said islands, and sell it therein by wholesale. For this, you, together with the city council of the city of Manila, shall appoint each two or three persons whom you shall consider most suitable to value and appraise the said merchandise. They shall take it at wholesale from the Chinese, paying them the amount for the goods; and afterward it shall be divided among all the citizens and natives of the islands at that price, in accordance with their wealth, so that all may share the profit which results from this trade. You shall order that the said persons thus appointed keep a book, in which shall be entered the amount of money which is invested each time, and the price at which each kind of merchandise is appraised; among what persons it is divided; and the quantity that falls to each one’s share. And I charge you straitly to have especial care to ascertain in what manner the persons deputed for that purpose exercise that commission. You shall not permit those who have held it one year to be chosen for it the following year. You shall send me a relation of all the aforesaid, signed by them, and another to the viceroy of Nueva España. And I order you, and also all other justices and judges, to observe and obey, and cause to be observed and obeyed, and executed to the letter, the contents of this our decree; for thus it is fitting for my service. Given in Madrid, January eleven, one thousand five hundred and ninety-three.