Number 75. Administration of the permission for the islands for its citizens alone
Notwithstanding this last order, the citizens of Mexico, who had before taken possession of part of this commerce, continued in it, availing themselves of certain underhand work and management—by which the citizens of Manila perceived the damage that they were receiving, in that others were enjoying what had been conceded to them. Accordingly, as soon as they received the decree of 593, which was the first decree that granted to them exclusively the permission and trade, they decided, in order that they might manage their cargoes, to appoint four or six men to go to Nueva España in the name of all, and there attend to the sale of the merchandise in the ships, and to the returns for it. That determination had no effect then, nor in the year 597, when Governor Don Francisco Tello ordered it executed by an act of January 24. It was again proposed in the year 623, when open cabildo-sessions were held in Manila for that purpose, and persons appointed for it; but neither were they sent, because of certain obstacles in the way. But since the necessity became more urgent, because of the injuries experienced, the matter was undertaken more effectively in the year 629, and six commissaries, citizens of Manila, were actually appointed and went to Nueva España, where they are today administering the commerce permitted to the islands. That has been examined in the royal Council of the Indias, together with all the acts which have been made upon it; and it was approved by a decree of March 25, 635, and extended for four years more than the six (for the one of 593 was for six years), by another decree of February 16, 635. The chief motives that induced the inhabitants of Manila to carry out this resolution, were three. The first was, to prevent the consignments of silver which the merchants of Perú and Nueva España made through their agents and correspondents, the result of which—to say nothing of the violations of the royal orders in sending silver in excess of the amount allowed—was so prejudicial to the citizens of the islands that it deprived them of the benefit of the permission, while those who were expressly excluded from it enjoyed it. The second was, that with the great amount of silver that entered Manila the price of the Chinese merchandise advanced so greatly that the inhabitants could not buy it. The third was, that prices fell in Nueva España for the same reason, so that the principal could scarcely be realized, as will be told. [In the margin: “In number 98.”] [Those were] damages that were repaired by the decisive action above mentioned. And lest that should not be sufficient, it will be advisable that, in the distribution of the licensed toneladas that is made in Manila, measures be taken that no one have a share except the citizens [of the islands] in accordance with the third petition. [In the margin: “In number 103.”]
Number 76. Declaration of what is or is not included in the five hundred thousand pesos allowed.
Inasmuch as there were certain doubts in regard to the sum of the five hundred thousand pesos of the returns, it was declared by royal decree of August 19, 606, that it should include the legacies, bequests, moneys for charities, payments for service, wrought silver, and whatever else might be shipped, except by those who bound themselves to reside for eight years in the Filipinas. Such might carry their possessions in money, in addition to the general permission, as was declared by a decree of November 20, 608; and the seamen of that trade-route might take their wages in silver, registered, also in addition to the amount permitted.
Number 77. Smuggled Chinese goods shall not be sold in Perú
Peru was excluded from the above-mentioned concession, and the former prohibitions forbidding the importation of Chinese stuffs into Perú remained in force, while the penalties were rendered more severe. Inasmuch as from their enforcement it resulted that merchandise of this character, which was seized as forfeited and confiscated, was sold as smuggled goods, and thus the goods remained in the country, they were (although remaining with that warrant and reason) the cause of as much loss and damage as if they had been brought in either secretly or by permission; for the country was filled with these wares, at more moderate prices than those of España. Accordingly, it was ordered by decrees of April 18, 617, and July 30, 627, that Chinese cloth which should be smuggled, and as such condemned as forfeited in Perú, should not be sold in the provinces; but that, in the same form in which it had been seized, it should be carried to these kingdoms and sold here.
Number 78. Permission to trade between Perú and Nueva España, and its condition
Perú and Nueva España appealed from the mode imposed on the commerce of the islands, and from the above-mentioned prohibitions, representing certain disadvantages that resulted from barring them from the commerce that those two most opulent states had maintained between themselves, almost by nature, the chief one being that they were deprived, in this manner, of all the mutual relationship and dependence that they ought to enjoy. Therefore another permission was conceded, for two ships: one to leave annually the port of Callao de Lima, and to carry silver to the amount of two hundred thousand ducados to the port of Acapulco, in order to invest it in the products peculiar to Nueva España—of agriculture, stock, and manufactures—and in no others, even though they be products of these kingdoms; and the other, to sail from Acapulco to Callao with these returns. The prohibition of Chinese cloth was left in force, and it was declared that no Chinese cloth could be sent in the returns for the two hundred thousand ducados, nor beyond that sum. Severe penalties were imposed for its enforcement, by decrees of the last of December, 604, June 20, 609, and March 28, 620, which gave final form to this permission. This last is now suspended and ordered to cease by a decree of November 23, 1634, without the reason that has inspired it being known, other than the expedients that have been proposed for the destruction of the islands. And this order, forbidding ships to go to Acapulco from Perú, is so menacing to the Filipinas, that it alone may prove sufficient to ruin them. For if no ships go from Perú to Acapulco the islands are exposed to the failure of their succor, in any year when their ships should not arrive—whether because of having been wrecked, or having put back in distress, or having arrived late—since, in such cases, it is usual to supply their lack with the ships of Perú, sending in them the ordinary aid of men and money. If the latter do not go and the former do not arrive, there will be no vessels for the above-mentioned purpose; and the islands might remain for several years without the succor that sustains them, and with evident danger of being lost.
Number 79. Fourth, point: of the condition of the commerce between the islands and Nueva España
In regard to the fourth point, which is to declare the present condition of the commerce of the islands, it is supposed that although all the orders above mentioned were to their evident injury—restricting their prosperity, if not prognosticating their ruin—that which was permitted to them was sufficient, when enjoyed by their citizens, to preserve the islands, as it has preserved them, although with some decrease. Moreover, the enemy having increased the expenses and obligations of the islands, they needed, when the succor sent from India, and at times that from Nueva España, failed them, new favors and less strict trading permissions, in order not to be ruined as they fear—being exposed to a more continual and dangerous war than any stronghold of this monarchy endures, with resistance equal to the strongest of them, and with danger greater than that of those most harassed, as they have no other aid than what they themselves can supply. Nevertheless, although it seems as if it were advisable, on account of the importance of their conservation, not only to [let them] go beyond the amount permitted, but also to increase still farther that favor, they find it is greatly restricted, and that their commerce is reduced to such condition and mode that it will be almost impossible for them to enjoy or to continue it. That which should be considered is, that this innovation does not originate as at other times, from Sevilla—which now, undeceived as to the causes that weaken them, knows better—but from the counsels given for action in the matter by Captain Francisco de Vitoria [Victoria—MS.]. He, with no knowledge of the past or heed of the future, judged only by a hasty conclusion that for the present a sum of money might be obtained where there is none—although from it may result the damage that can be understood, not only to your vassals, but to the whole monarchy, as if there could be distinctions and peril between the vassals and the monarchy that would not be common.