Number 70. Third cause for the decline of the commerce of the Indias
The third cause has proceeded from the above two; for with the increase of the Spaniards, not only has the consumption not increased, but it has been and is much less. For, besides the fact that so many stuffs and figured goods are no longer worn out in the Indias as formerly, and he who clad himself in silk now contents himself with cloth, all bulky goods that are exported from Sevilla are manufactured there [in the Indias]—where with the number of people their necessity has increased, and with their necessity their skill. The consumers are fewer, and the officials more; there is little money, and those who seek it are many; and they seek it more eagerly as their courage is small, since their funds are already scant. The springs are drained dry, for there is less water, so that scarcely can they dampen what they formerly soaked. What few formerly shipped and many bought is now quite the contrary, and many send it and there are few who use it—as is evident by the wine which was and now is consumed by Nueva España. On that account it has been necessary that the former profits cease, and that the exportation and consumption of merchandise be restricted—not only on account of the goods which are manufactured there, but because of lack of consumers and lack of wealth, all of which are causal circumstances of the decline of the commerce.
Number 71. Fourth cause for the decline of the commerce of the Indias
The fourth and last cause is the little favor extended to the Indian trade, both in the Indias, and in these kingdoms—either because of the straitness of the times, or because of other accidents—together with the burdens that have fallen upon everything, the imposts and duties increasing, although greater relief was needed as the amount of wealth was less. The avería, which increased from two and three per cent to six and seven, and was then judged to be so exorbitant that it seemed impossible for the commerce not to be ruined with that excessive tax, has increased so greatly that one year it rose to forty, and with the other expenses is never lower than twenty. What were formerly risks at sea are now great and evident losses, which, aided by the necessities of this crown—which force loans and considerable gifts, and the exchange for juros[48] of what was formerly the capital for commerce—have so weakened commerce, that one is more astonished that it has not been entirely ruined, than that it has declined to its present condition. And all the more justifiable have been the reasons why this crown has profited from the exporters among the merchants of the Indias, and from what has come from the Indias, the greater the loss has been, as it was known to be unavoidable on account of what occurs on land, and more hazardous because of what is risked on the sea—by which some have been ruined, others have retired from trade, and others have changed their business; and all who take part in it are aware that this commerce is ruined, and with it whatever depends on it. It is certain, and has been observed in Manila, that since the loss of the trading fleet of the year 629, and their unfortunate experiences with [storms in] the Northern Sea, the winterings, the disasters, the averías, the embargoes, the delays, and the burdens [imposed] at Sevilla, the merchants in Mexico have decided to export more to Filipinas than to España. And although these things are found by experience to be thoroughly damaging and irreparable, and [it is evident] that they demanded new exemptions and safeguards, by which the losses might be recuperated, and those who suffer them be encouraged, there has not been lacking a person to propose as an expedient that the duties and customs should be raised still higher in the Indias, affirming that they are the most free, and that they pay less—although they really are quite the opposite, as is known.
Number 72. The Filipinas do not damage the commerce of España
The above and many other causes which might be mentioned are those which have weakened and are ruining the commerce of the Indias; and although it would be more advisable to counteract some of them, or to seek reparation for those which are most hurtful, the Filipinas Islands come to be the ones that suffer the penalty, without being implicated in the guilt. And although their commerce is in the lowest condition that it has ever experienced or suffered, yet even in this condition they are not allowed or permitted [to improve] it, and there are some who propose its destruction as a remedy, so that it may share in the universal destruction of all trade; and this is in so far as it touches the commerce of España.
Number 73. Beginning of the commerce of the islands
The commerce of these islands began with their second discovery and the first settlement, which was in the year 565.[49] However, it was at the first scanty and of little weight, until during the government of Guido de Labazarris, in the year 576, the trade of China was introduced, and with it considerable profits, which extended it freely to Nueva España, Guatimala, Tierrafirme, and Perú, by a royal decree of April 14, 579. As it continued to increase, it was believed necessary to restrict it; and accordingly, by a decree of November 11, 587, it was ordered that Chinese cloth brought from Filipinas should not pass from Nueva España to Perú or to Tierrafirme. That decree was later confirmed by others of February 13, and June 13, 599. And in order that what was prohibited in one way might not be obtained in another, decrees were despatched on February 6 and December 18, 591, ordering the total cessation of commerce between the islands and Perú. That was later extended to Tierrafirme and Guatimala, by decrees of January 12, 593, and July 5, 595, forbidding the trade of China and its merchandise to all the Indias, except to Nueva España, which was left open to the Filipinas.
Number 74. Permission for the commerce of the Indias, and its final form
The commerce of Sevilla was not satisfied with even these orders and restrictions. That commerce continued to decrease, although the cause was unknown. They regretted the damage, and tried to apply the remedy, but in vain. As the trade of Filipinas was already the stone of offense, they immediately descended on that. Not only was the prohibition of commodities from the islands strengthened, but their quantity was limited, reducing it to a fixed amount that was permitted, and a certain form. It was ordered that only four ships should ply in that trade-route—two which should sail to Nueva España, and two to the islands, and all at the account of the royal treasury. In these could be carried two hundred and fifty thousand pesos’ worth of such merchandise as they should have in Manila; and in return they could take five hundred thousand in silver, including in this sum the principal and the profits. And inasmuch as this permission, from its beginning, was never in favor of Nueva España, but of the islands, it was declared that only the citizens of the islands could navigate and trade, as was already ruled by a royal decree of January 11, 593. In accordance with this, the commander [of the fleet] was despatched on the last of December, 604, with various instructions and declarations, which gave form to this commerce. And since his permission was for only the citizens of the islands, and those who were not residents of the islands but of Nueva España had begun to take part in it, it was ordered that the toneladas of the two ships which sailed should be distributed in Manila by the governor, the archbishop (or the senior auditor), the fiscal, and two regidors. That order was confirmed by decrees of May 4, 619, and May 29, 620, and by others, which regulate this matter, and declare that the respective shares of the silver which must be sent back as returns for the merchandise must be allotted in Nueva España.