Number 56. Second point: of that which the Filipinas produce
Having seen what it costs to maintain the Filipinas Islands, the second point is to ascertain how far they aid in this cost, and with what they supply your Majesty’s royal treasury, in which notice is to be taken that there are eleven departments of revenue.
| 1. The tributes of the encomiendas which are assigned to the crown, paid by not only the natives of the islands but the Chinese and Japanese, are annually valued—in reals, and in products which proceed from 44,763 tributarios—at ten reals apiece | 53,715 pesos. |
| 2. In the encomiendas of private persons, who, as has been said, possess 84,439 tributes, there is a [royal] situado of two reals for each tribute—only eight being reserved for the encomenderos, which are valued annually at 21,107 and one-half pesos | 21,107 pesos. |
| 3. The licenses which are given annually to the Sangleys, in order that they may remain for some time in the islands, amount to about 14,000, which at eight pesos that are paid for them as fees, amount to 112,1000 pesos | 112,000 pesos. |
| 4. The tribute of these 14,000 Sangleys at five reals apiece—four for the tribute, and one for the situado—are worth 8,250 pesos | 8,250 pesos. |
| 5. The fifth and tenth of the gold that is collected from what is declared by the natives, is 750 pesos | 750 pesos. |
| 6. The ecclesiastical tithes—which are collected for the royal treasury, because all the clergy are paid from it, as has been seen—amount to 2,750 pesos. | 2,750 pesos. |
| 7. The fares for passengers, who leave the islands for other parts in royal ships, 350 pesos. | 350 pesos. |
| 8. The fines of the exchequer are worth 1,000 pesos annually. | 1,000 pesos. |
| 9. The customs duties on the merchandise of China, India,[45] and other parts, which are imported and exported, 38,000 pesos. | 38,000 pesos. |
| 10. The imposts and freight charges, customs duties, and other charges that are collected in Nueva España on the merchandise exported annually from the islands, are worth 300,000 [309,000—MS.] pesos which is reckoned as income of the Filipinas, for those islands cause it. Accordingly, it is ordered by a royal decree of February 19, 606, that the proceeds from this department be remitted to Manila, and that so much less a sum be sent from Mexico; besides which they ought to make good to it 30,000 more, because of what in Nueva España proceeds from the traffic and commerce of this merchandise for the excise duty and other imposts. | 300,000 pesos. |
| [309,000—MS.] | |
| 11. It cannot be ascertained what the mesada taxes in the ecclesiastical estate, and the half-annats in the secular, are worth; nor that concerning sales and resignations of office, and other petty transactions, for all of which a figure of 6,000 pesos annually is set down...... | 6,000 pesos. |
These eleven departments of royal revenue amount to 573,922 pesos; and the Filipinas produce that sum in revenue for your Majesty.[46] [In the margin of Extracto-historial reprint: “Note—This sum seems to be inaccurate, because it should amount only to 543,922 pesos.”]
Number 57. The excess of expenditures for the islands over the receipts
It is ordered by a royal decree that the amount reported from the islands to be lacking for the total amount of situado be sent annually from Nueva España; and as the situado, according to the calculation set forth, is 850,734 pesos, there is an annual deficit of 276,512 pesos or thereabouts; [In the margin of Extracto-historial reprint: “The deficit should be 306,812 pesos.”] for this account is made for only one year, and is not fixed, although it it usual every year. In this matter it is to be noted that this [itemized statement] answers the current report that every year six hundred thousand pesos and more are taken from Nueva España for their expense. That report gives rise to the belief and understanding that they spend that amount in addition to their receipts. That is an error; for if from the tenth division the sum of 330,000 pesos is made good, which is collected in Acapulco and Mexico, and other parts of Nueva España (and this is recognized to belong to the islands by the above-cited royal decree of 606 and is therefore ordered to be returned to them), when 600,000 or more pesos are sent, not one-half that amount is supply of deficiency, and expense, since more than one-half is returns. And even this is counterbalanced somewhat by what is derived from the bulls of the crusade, the proceeds of which are ordered by a royal decree of December 21, 634, not to be taken to Mexico, but to be kept at Manila, and that to the treasurers in Mexico a like amount be furnished. Although this order is opposed by the crusade, as it is advisable it ought to be executed, and a second decree issued ordering its observance; thus two dangers might be avoided to this sum, one in going and the other in being returned—as is done with the possessions of deceased persons, by a royal decree of December 13, [of the year] 16, which are kept in the Manila treasury, and paid into that of Mexico.
Number 58. The islands contribute more than they spend
From the expenses and contributions of the islands, and the excess of the debits over the credits, some, through lack of acquaintance with the matter, are wont to derive the main argument against them, imagining that the islands are of little use but of great expense. Although the first of these propositions is quite confuted and answered by what is thus far alleged, the second also lacks foundation in the meaning in which it is put forward, which attributes to the islands more expense than profit; for the Filipinas alone contribute more than what they cost. Until the year 607, the islands of Maluco belonged to the crown of Portugal, which spent a great sum of money on them—as was necessary on account of the great distance from Goa, upon which their government was dependent. Although, nevertheless, those islands were maintained, that appeared impossible after the Dutch entered the Orient; for with their advent the expenses of Maluco were so increased that the islands were lost, inasmuch as there was no money with which to maintain them. It was ordered that the Filipinas recover them, and they did so. In order to assure the safety of the Malucos and to economize expenses for the convenience of both crowns, they were joined and united to them [i.e., Filipinas], imposing on the crown of Castilla, and in its name on the Filipinas, the obligation to attend to their wants, thus adding to Filipinas at least 290,000 pesos of expense—the amount of what pertains to Maluco from the second, third, and fourth departments, all the sixth, half the seventh, and a third of the eighth. If your Majesty is petitioned for 276,000 pesos annually for both groups of islands, as is attested, and those of Maluco alone cost 290,000, the deduction is evident that the Filipinas per se cost less than what they contribute—and more, if it is considered that the crown of Portugal saves 400,000 pesos which the Malucas must have cost it when they were under its charge. Since the Filipinas did not ask for that union, and were not a party in causing it to be made, they ought not to be charged with increase in expenses which those islands cause them.
Number 59. How and in what the inhabitants aid in the support of the islands
But it is proper to remark at this point, what is the kernel of the matter under discussion, that the Filipinas and Malucas are not supported with the 850,000 [890,000—MS.] pesos, which are the amount of their expenses. Neither that sum nor a much greater one would be sufficient, if the inhabitants of Manila did not serve, aid, and help with their possessions and lives on the occasions that arise, both extraordinary and ordinary. Now [they serve] as soldiers in the wars when the enlisted and paid troops are outside, or are not sufficient to resist the enemy, standing guard and assisting in military duties with the [same] punctuality and discipline as if they drew pay; and although they are few, as has been said, they count for many in the valor, willingness, and generosity with which they serve. Again, they give their slaves to labor on the public works and shipbuilding, and ordinarily for the levies for the galleys, as happens daily; and in the term of Don Alonso Faxardo, had not the inhabitants furnished the crews, the galleys could not have sallied out, as they did, against the enemy. Then they lend, when the aid from Nueva España is delayed or insufficient, very great quantities [of money] for any sudden expense—as was that above mentioned in the case of Don Alonso Faxardo, to whom they lent at that time two hundred and fifty thousand pesos. So they do every year, and always without interest, the payments sometimes being delayed two or three years. In regard to that, there is a royal decree of February 29, six hundred and thirty-six, in which it is ordered that those who make such loans shall be promptly repaid, in order that the royal treasury may be accredited when it needs help. They help, too, with very large and continuous gifts of money, and food and products (which are generally more important than money), which the governor assigns for the aid of Terrenate, the island of Hermosa, and other posts. They also accept expeditions and embassies, by which they go at their own expense to the kings of those archipelagos. So have gone General Juan Xuarez Gallinato, to the king of Camboxa; Gregorio de Vargas, to him of Tunquin [Tumquin—MS.]; Juan Tello de Aguirre and Juan Ruiz de Ycoaga, to him of Siam; to whom also went Admiral Andres Lopez de Asaldegui; Don Luis Navarrete Faxardo; and afterward Don Antonio de Arco, to the emperor of Japon, at the cost of life; Don Juan Zamudio to China; and others to other kings—each one spending ten or twelve thousand pesos to serve your Majesty. In short, the occasions that the inhabitants of Manila have for helping, and to which they respond as loyal vassals, are as many as will be seen in the future, and as one can imagine would be found in a post and frontier so infested by so many and so strong enemies—Dutch, Chinese, Japanese, Mindanaos, Terrenates, Zambales, and those of other nations, which keeps the inhabitants in arms continually. Scarcely is there a year when the inhabitants do not engage in hostilities, and it necessarily costs them heavily. If it were all at the expense of the royal treasury, the cost of the islands would increase so that it would almost exceed their possessions.