The Philippine Islands, 1493-1898, Volume 44, 1700-1736 / Explorations by early navigators, descriptions of the islands and their peoples, their history and records of the Catholic missions, as related in contemporaneous books and manuscripts, showing the political, economic, commercial and religious conditions of those islands from their earliest relations with European nations to the close of the nineteenth century.

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23. That the city of Manila should itself make the distribution for the lading of the two ships, without the intervention of any official.

24. That the merchants and those interested in the trade should present within a specified time-limit the commodities, invoices, and articles which they were to send to Nueva España; that these should be placed in the royal storehouses, and the estimate of their value be made. This must be done by the agreement of two persons of experience, deputed by the city and the trade, with royal officials and the fiscal of the Audiencia of Manila, and the fiscal must superintend the entire valuation. If any merchant should feel aggrieved in the enumeration he should go before the committee [of distribution], in order that his just rights might be guarded; and if the committee did not take care of this, he should have right of appeal to the Audiencia.

25. That he who had no goods to lade should not be allowed to give up his right in favor of a third person, but it should accrue to the rest, a new distribution of that part being made.

26. That the registration be made by the royal officials, with the assistance of the fiscal; that the goods shipped and their valuation should be carefully ascertained; and that the decisions of the officials, or a copy of them, be sent to Acapulco for the use of officials there.

27. That in Acapulco must be ascertained the quantity of silver which should be shipped on the return voyage, and, if the goods sold should perchance exceed the 600,000 pesos, they [i.e., the Manila owners] should not be allowed to take away the excess in silver, but [must take it] in goods.

28. That if the sale of the goods shall not fill this amount of 600,000 pesos of the permission, the merchants of Nueva España cannot under any pretext, no matter how just, make up the deficiency, or place in the ship the remaining amount of silver, for this was perpetually prohibited by his Majesty from the time when these orders were issued; and whatever might be done in contravention of these should be punished with special severity. For it had been learned that under this pretext those born in Nueva España or resident there were steadily introducing their trade into Philipinas, thus causing most serious losses to the royal treasury, and bringing that commerce to the state which was acknowledged, with great detriment to the trade of España. In regard to this matter the viceroy was charged to devote himself with the utmost activity to the strictest fulfilment of this order, without overlooking the slightest thing.

29. That if it were found that any portion of silver belonged to a native or resident of Nueva España it should be regarded as confiscated, and applied in thirds;[4] and, besides, the delinquent should pay to the royal treasury three times the amount thus confiscated. If he repeated the offense, the penalty should be imposed upon him of loss of goods, and exile from these provinces for ten years.

30. That thenceforth should likewise be prohibited the acceptance of declarations of goods [manifestaciones], nor should they for any reason be accepted, even if his Majesty should lose the double duties that belong to them, since on no account would he allow them to be tolerated.

31. That in order to avoid confusion in the decree of the year 1697 already cited (and leaving these points settled and in use, in such form that they should be permanent), if the governor and merchants of Philipinas in giving the 100,000 pesos, should come to offer it by way of adjustment [regulacion][5] of the duties in each voyage, and not under the name of indult [indulto], as had been proposed, they should be entirely released from payment of all the duties which they must make good in Acapulco, not only on the outward but on the return voyage. It was also declared that goods sold at that port or shipped from it should not pay alcavala on the first sale; for it was certain that the contribution of the 100,000 pesos from the permission would cost seventeen per cent, leaving eighty-three per cent gain to those who were interested in the trade. Moreover, as his Majesty paid the expense of the building, cleaning, and equipment of the ships, and supplying them with soldiers, provisions, supplies, and ammunition, without receiving more than forty-four ducados for each tonelada, it would not only be advantageous, but even necessary to the royal treasury to furnish a considerable amount for preserving their commerce and traffic to the natives of the island, which was all the favor which his royal munificence could exercise. If, however, an agreement should not be reached by the trade in the adjustment of the 100,000 pesos, the royal duties must be exacted and collected in full, without excepting anything.

32. That in the enumeration of the traders should be included the Spaniards born in the country, and the military men stationed in the port of Cavite; and these might engage in that traffic—excluding, however, ecclesiastical ministers, whether secular or regular, and those who were foreigners to those Philipinas Islands.