Number 80. Allegations of transgressions of the permissions given for the islands and Perú
As an argument for that course, it is alleged that notable transgressions are committed in regard to the two permissions for Filipinas and Perú. Although this memorial only defends that of the islands, the one is most completely verified by treating likewise of the other; and the illegal acts in both consist rather in the exaggeration with[50] which they are mentioned than in the arguments by which they are proved. Who has ever said, or what possibility can there be, that the two ships which come every year from the islands to Acapulco, whose permitted cargo is of 250,000 pesos (not of 500,000, as is affirmed), carry four millions in merchandise? That, even in pearls and diamonds, seems impossible to be contained in two small vessels; and how much more so in the goods of so great bulk as those that are carried in them! The schemer tries [to say] that those four millions are worth eight in Nueva España, or even ten for the returns [on investments]; and that that sum goes back to the islands with the 500,000 pesos allowed by the permission, with another 600,000 which is sent as the ordinary aid, granting the net profits at one hundred and fifty per cent, or at the least at one hundred per cent. Were that so, those islands would be most wealthy in one year, for their citizens, as has been said, numbering 230 (counting married and single men), if ten millions entered their possession annually, which would be more than 43,000 pesos for each one, neither Venecia [Venençia—MS.], Genova, Sevilla, nor Lisboa, nor these four empires together, would equal their wealth. With the same extravagance does the captain talk of the ship that sails annually to [from—MS.] Perú, [saying that] its permission, which is for 200,000 ducados, extends to three millions of silver that goes unregistered.
Number 81. The violations of law in all commerce, and why they are not remedied
One cannot deny, Sire, that there are illegalities and abuses in all the navigations and commerces in the world, without excepting one; and that, under pretext of the permission and register that goes, which is not permitted and registered. This is known, and is not remedied for two principal reasons. The first is that it is impossible to remedy it, unless a greater damage results from the remedy; for if the bales and boxes were opened in Sevilla, or in other ports of heavy trade, and the articles that enter and leave were measured, weighed, and counted in detail, the employees there would not suffice, nor six times as many; nor would there be time to despatch one-tenth of the trade. Thus the salaries increasing, because of the greater number of administrators, and the trade being embarrassed by this method, it is evident that the damage caused would be greater than the gain acquired. The other reason is that in imposing the duties of import and export, the customs, the excise, the avería, and other similar duties, care is taken that it is not done with the strictness that is due; and thus they amount to more than it would be convenient [to obtain] if it were paid by measuring, weighing, and counting them all. It is a general decision of all who carry on commerce that, if something be not dispensed with in that direction, the trade and traffic cannot be maintained at all. Accordingly, collection is made on the bales by the packings of the cargoes, by the memoranda of the ships, and by the registers, without making any other moral efforts to ascertain whether more is being carried than is declared—punishing what is discovered, but not discovering the fourth of what is hidden.
Number 82. Tacit permission for what is secreted in the commerce
Many examples might be mentioned which prove this truth. Let the first be the one that was disputed in Sevilla by the exporters of the Indias, namely, that they had not furnished sworn invoices of their cargoes. And although the administrators of the customs insisted upon that, the exporters secured [permission] to furnish, as they are doing, mere lists [of the goods]. Nevertheless, they do not open the bales or boxes; and, although at times these contain cloths, silks, and fine Holland linen, and other rich stuffs, they pass as coarse linen,[51] in great part,[52] and at most as Rouen linen; and they pay as duties the fourth part of what they would have paid had the bales been opened. Let the second be the existing ordinance that no bale be opened, until it is apparent by information that it carries more or different articles than are stated on the enclosures. That ordinance is observed in all ports of Europa. The third, the custom that has been introduced into Sevilla of imposing on every bale exported to the Indias a certain duty above the amount of the invoice and measure of it that is presented. That can only be justified by the presumption from evidence that the bale carries different goods from what are declared. In the Indias, in the appraisals that are made at Cartagena for the collection of the customs, although it is apparent to the royal officials that the merchants are selling the entire invoices at a profit of ten or twelve per cent over the cost in España, they add to them forty-four per cent of the cost that they [nominally] bear, and then collect ten per cent on the bulk of all. That would be an excessive burden and grievance, if it were not understood as certain that this is charged upon what is shipped registered and what is concealed by substituting some goods for others. Let the fourth be the notable denunciation made in the year 624 by Don Christoval de Balvas, while factor of Tierrafirme, in which he gave information against seventy exporters and merchants concerned with the one fleet that went that year under command of Don Gaspar de Azevedo Bonal. He ascertained that they had carried and shipped to Perú by the house of Cruzes, located between Puerto Velo and Panamá, besides 1,446,346 pesos which were registered, another 7,597,559 pesos, by which the royal duties were defrauded of 1,370,656 pesos. And when it was feared that for so flagrant a violation of the law there would be an equal punishment, the affair was all settled for 200,000 pesos, besides 6,000 which were given to the informant, whereupon the whole case and matter was relegated to silence; and there was no change in the despatch [of the ships], nor in the registers, nor in anything else of the previous practices. For if the burdens of your vassals are not eased in this manner, so that they can make up their losses, risks, injuries, expenses, and other damages that they suffer in so long voyages and so distressing navigations, everything will be ruined. If that has been experienced in Sevilla, and in the trade of the Indias, the magnitude of which is what is known, and where rigor would be more important than in Acapulco (which can not at all be compared to the other), why, if the greater transgression is overlooked (although there is the same and stronger argument), should not the less be excused, and why should not the islands be treated like all the ports of the world?
Number 83. The illegalities in the two commerces of the islands and Perú cannot be such as are alleged, in the withdrawal of silver.
It follows that it is not to be denied that in the two traffics permitted to Filipinas and Perú the same illegal acts might be found as in the other parts where there is trade; but it is not conceded that these excesses are so enormous as are represented. Nor are they greater than those in other regions, where, in the shadow of 200,000 ducados of silver, 50,000 go concealed, while in that of 250,000 in merchandise will come another 60,000; and perhaps both one and the other will be so much less that they merit no attention, and never [is the concealed merchandise] so much more that it exceeds the principal. Some arguments can be advanced on this point. The first is that there is no place whence so much silver can be obtained that three millions of it should be sent from Perú to Nueva España, and ten from Nueva España to the Filipinas. For if six millions and upwards come every year from Perú to these kingdoms, one remains in their land, and three go to Acapulco, then their mines yield from ten to eleven millions. Those of Potosi never amount to six,[53] while all the others together do not yield two. Consequently, the supposition that eleven millions are mined is false. That will be better proved by what has come [thence] and what shall come in the future; for since it is ordered that the ship that was permitted shall not sail from Perú, it will be necessary for three millions more than usual to come from its provinces, since those who trafficked by way of the South Sea cannot let their money remain idle, and must employ it on the Northern Sea. The same consideration ought to hold for Nueva España. Three millions are sent [here] annually from that country, and one-half or one [no—MS.] million remains there in the country. Let us suppose that ten millions are sent to Filipinas. It is proved that the three millions cannot be sent from Perú; but admitting for the sake of the argument that they can be sent, it follows that it [i.e., Nueva España] alone yields another eleven millions from its mines—which is impossible, as is gathered from the royal fifths, and from the facts that in some years ships do not go to Filipinas, and that more silver is not for that reason sent to these kingdoms, as would be necessary.
Number 84. The concealment of silver in the galleons argues for the two permissions
All people say openly and believe that much silver is sent unregistered in the galleons of the royal armada for the trade-route of the Indias, and as its vessels number eight, and sometimes twelve, and it acts as convoy to twenty or thirty other and smaller vessels, the highest figure named by those who exaggerate this excess is one million; but never, by dint of diligent efforts and the experience of so many years, has there been known, found, or discovered one-half million. Therefore, if it can scarcely be supposed with probable foundation that thirty or forty ships, with a registered cargo of nine or ten millions, carry one million hidden, how can one believe that three millions can go unregistered in only one vessel (and that a small one), and that ten millions can go in two? The fact is, that he who is looking for transgressions does not think that he is accomplishing his purpose unless he increases them. Besides, if three millions are sent from Perú, it is in order to have them returned in investments in the merchandise of Nueva España (all of which are bulky), for those who send their money [there] will not do so for the purpose of having it remain there. And three millions of investments (which will amount to four millions in Perú), in one ship of three hundred toneladas—[why,] there is no one who will even express an opinion that such a ship can be found that can hold so much. Hence, it is inferred that the above sums are imaginary, fantastic, and fabulous, and consequently, [so is] whatever is based on them.