93–94. [These replies by the merchants of Andalusia call forth another memorial from the Manila deputies, which occupies fourteen printed sheets. They repeat their former arguments, enforcing them by reference to the despatches from the Audiencia of Manila, the archbishop, and the various religious bodies there, and still more to the letters previously addressed to the king by the viceroys of Nueva España; and they adduce various instances from the history of the Manila-Acapulco trade to the same effect. They also undertake to refute the charges made by the merchants of Sevilla and Cadiz, and claim that the latter have misrepresented certain facts. We note here some points made by the Manila envoys, as giving new information on the matter at issue. They say that the maintenance of Filipinas, including the missions and military posts, costs the Spanish crown annually 515,568 pesos, for which sum the royal treasury of Mexico should be responsible, according to the laws of the Indias; but it sends thither only 40,000 pesos in money and some 60,000 in goods, and even this remittance comes from the duties which the Manila galleon pays at Acapulco. But in 1637 and for some years later, the situado sent to the islands amounted to more than 325,000 pesos in money, and enough goods to make up the 500,000 pesos. This, however, was largely the result of the failure of the Manila merchants to ship goods to Mexico, a proceeding caused by the undue harshness and severity of the royal visitor Pedro de Quiroga;[25] but it led to the abolition (by royal decree of September 3, 1639) of the restriction on the kinds of goods permitted to Manila, only limiting the amount of their investments. It is strange that Manila has pursued this commerce for one hundred and forty years without any protest from Andalusia until now; the decadence of the latter is due rather to lack of economy in the use of their wealth than to the competition of Filipinas; and Andalusia has always encountered trouble, since the persons interested in the greater part of the lading of the galleons and fleets have been and are foreigners—French, English, and Dutch. Andalusia claims that the galleon unlades at Acapulco more than 12,000 piezas, half of them containing silk goods; but the certificates of the royal officials show that in the ten years from 1710 to 1720 the total number of piezas (in ten galleons) was 36,895, including therein the 4,299 half-chests in which the silk goods were shipped—making the average lading of each galleon only 3,660 piezas. The detention of Velasco’s fleet was not due to the arrival of the Manila galleon, but to other causes. The fleet of 1698, in charge of General Mascarùa, was sent lightly laden, and in 1699 Velasco’s fleet followed it, but encountered the other at Vera Cruz; the presence of the two large fleets at one time, and the ravages of yellow fever [bomito negro, i.e., “black vomit”] at that port, rendered it impossible to sell the goods to advantage, to transport them to Mexico, or to equip the vessels for the return voyage. When Velasco could set out for Spain, he received news of the death of Carlos II, and the danger of war between Spain and other powers, which made the merchants unwilling to risk their property on the seas at that time. Finally the Spanish fleet was escorted to Spain by a French squadron of warships, but on reaching Vigo was attacked by an English and Dutch fleet, which inflicted considerable loss on the Spaniards. Moreover, the trading-fleets sent from Spain to Nueva España are nearly twice as large in the last few years as they used to be, which overstocks the colonial markets with goods. Manila claims that the decadence of the silk industry in Andalusia is due to the pest which ravaged that province (with especial mortality in Sevilla) in the middle of the past century; and that part of the remaining population had emigrated to Murcia and Valencia, where they had cultivated mulberry-trees and built up the manufacture of silk goods. Another reason assigned by some writers for the decrease of prosperity in Andalusia was the imposition, at that time, of heavy war-taxes. As early as 1666, the city and the merchants of Sevilla had represented to the crown “their lamentable condition, and the ruin of their looms, caused by the imposition of the millones[26] and the concourse of foreigners to Cadiz to introduce their own merchandise.” This led to a resolution by the royal Council that the decree of January 25, 1661, should be enforced, which provided that the custom-house and collection of duties for the Indias should be withdrawn from Cadiz, and that the galleons and fleets should take on their lading in the river of Sevilla and the port of San Lucar. As for the stuffs from foreign countries which, it is alleged, are brought to España and crowd out the manufactures of that country, these are only the fabrics which the more industrious French, English, and Dutch make with the raw material, both wool and silk, which España exports. In 1696 Sevilla complained to the king of the injury which it was experiencing from the importation of foreign goods, but did not mention the Chinese stuffs among these. “In Madrid and Valencia the manufacturers are at present complaining that the price of silk has risen very high, not because the crop [that is raised in España] is not an abundant one, so much as on account of the so great export, not only from that kingdom but from other regions, to foreign countries, that which the French alone have bought this year amounting to more than 300,000 doubloons; and if asked about this, any dealer in these goods or any official will answer with entire candor, without blaming the commerce of Manila.” The foreigners bring back these silk goods to España, in order to supply with them not only that country but the Indias, through the fleets and galleons; “and this is what the consulate [of Cadiz] is defending, in order that these goods may, by not introducing into Mexico those from China, be sold [there] with a higher reputation.” The highest authorities all concur in the statement that the Spanish silks sent to Nueva España do not amount to one hundred and twenty-five toneladas. The statement that the Manila galleon carries from that country 4,000,000 pesos is unwarranted; the only possible ground for it is that in 1717 the viceroy allowed the galleon to carry to Manila 2,000,000 pesos, because for three years past no money had been sent to the islands—on account of poor sales at Acapulco, a galleon forced back to the islands by storms, etc.—on condition that the king’s ten per cent be paid on that amount. In other years the amount of money illegally shipped has been very small. Cadiz has alleged that money has been scarce there for some years; but Manila declares that from December, 1720 to July, 1723 over 40,000,000 pesos worth of gold and silver, in coin and bullion, has been landed at Cadiz, without including the value of the other products of the Indias. Cadiz asserts that the money obtained from Nueva España goes to the Turks, the enemies of the Catholic faith; but the Spanish merchants are continually furnishing money to other enemies of the faith, the English and Dutch. Moreover, the commodities which the Manila galleon carries are not obtained from the Turks, but (through the European factories) from Indostan, Tunquin, Lao, China, Japon, and the Philippine Islands; while Manila is not even permitted to trade with Arabia and Persia, whose products are carried to the ports of the Levant, and at those fairs the traders from all the European nations buy those goods, with money which has come from the Indias. Manila declares that the trading-fleets carry to Vera Cruz no Spanish products save wines, brandies, oil, raisins, and almonds, and the previously-mentioned small amount of silk goods; all else in their cargoes is of foreign make. The spices which the decree of 1720 allows to the islands will not suffice to pay the expenses of the voyage, especially when Manila must compete with the trading-fleets from Spain in the shipment of these products. The collection of royal duties on goods is regulated by “cubic palmos in accordance with the measurement of the bales [frangotes] and piezas which are shipped.” As for the memorial by Calderòn, Manila asserts that it does not bear on the present question; that auditor, in the time of Governor Curuzalaegui (in which occurred an uprising of the Sangleys), sent a letter to the king remonstrating against the liberty given to the Chinese, and advising that they be not allowed to have intercourse with the Indian natives, or even to live in the Parián. This tolerance had been extended to them for the sake of attracting them to the Christian faith, but Calderòn regarded it as no longer necessary, since they had, even then, a number of Christian missionaries in their own country. In his letter, he cited Father Ricci in support of some of his statements. While the Spanish silks sent to Nueva España amount to only one hundred and twenty-five toneladas, those of foreign make sent thither from Spanish ports are more than a thousand toneladas. The French, English, and Dutch trade at Canton, where the main part of their commerce is in raw silk.]
95–96. [The above memorial was referred by the Council to the fiscal, on October 6, 1723; and on December 22 following, a printed answer to both of those by Manila was placed before the Council by the consulate and merchants of Cadiz. They remind the king that when Filipinas was first discovered the ships brought back to España abundance of gold, pearl, amber, civet, wax, and fabrics of Ilocos; and for some time afterward these and many other valuable products were exported from Manila, which became the emporium of both Eastern and Western India. In those early times, when so much zeal and energy for the conversion of the heathen was displayed, it was not necessary to the missions to depend upon the trade in Chinese silks; but, for the sake of benefiting the natives of the islands, and to check the drain of silver to foreign nations, the Spanish government (by decrees of 1589 and 1596) authorized the barter and exchange of the products of Filipinas for those of China, under the system called pancada. But Manila has distorted this into the assumption that the Chinese trade was intended for the maintenance of the Spanish colony in Filipinas, and that it was to be without restriction, save in its amount—although, as a fact, the trade in silk fabrics of China was not introduced until many years later. The system of distributing the commerce among the citizens of Manila replaced the earlier pancada, and led to such abuses that Felipe III attempted to check them by a severe decree (1620); and later enactments placed the Acapulco commerce on such footing that it flourished greatly, to the mutual advantage of Filipinas and Nueva España, and to the enrichment of Manila and its citizens. That commerce benefited the poor citizen as well as the rich; but the trade in silks is only for the benefit of the wealthy merchant and the rich consumer, as they are articles of luxury. The earlier commerce of Manila also supported and stimulated the consumption of Spanish silks in Nueva España and Peru, and the silk industry flourished in the mother-country; but the later introduction of Chinese silks into the American colonies, and the frauds and excess connected with this trade, have ruined the silk industry on both sides of the Atlantic, and even impaired the prosperity of Manila. Cadiz claims that the merchants of Mexico have committed many frauds, and transgressed the ordinances, and prevented the execution of these, in regard to the Manila trade, and do so with the collusion and aid of the officials: for instance, the galleon “Nuestra Señora del Rosario” arrived at Acapulco on January 11, 1699, and the Manila citizens attempted to compound the duties on the cargo for 100,000 pesos; but the royal fiscal opposed this, showing that the ship had brought 6,754 piezas of lading, without counting a considerable quantity of pepper and other goods outside of the registration. It was also found that although the law restricted the entire cargo to the value of 250,000 pesos, and its ownership to the citizens of Manila, this vessel contained goods to the amount of 233,966 pesos which belonged to the citizens of Puebla alone, and it was estimated that it must contain at least a million pesos’ worth of goods belonging to merchants in the City of Mexico. The Mexican government compelled the payment on these goods of duties amounting to 50,000 pesos more, and would have investigated the whole matter, to ascertain the exact amount of the illegal shipments; but the commercial interests of Mexico exerted such influence against this that the Audiencia desisted from the undertaking. Again Cadiz accuses the importation of Chinese silks into Nueva España of having ruined the silk industry in España; although those goods are so thin and poor that they are worn out even before the Manila galleon leaves Acapulco, they are so cheap and showy that they undersell the better goods from España even competing with the latter in Vera Cruz, where the Chinese goods are purchased by the traders of Habana, Puerto Rico, Cartagena, and other Spanish colonies; and all this is overlooked by the Spanish officials in high places, because they profit by this illegal traffic. If the king will prohibit the importation of silk woven with silver and gold, and “check the hand which Mexico moves at the command of Manila,” the silk industry will be revived in España, its people will be kept from idleness and poverty, and foreign countries will no longer drain its resources. Cadiz desires Manila to content itself with the spice-trade, which is a staple and profitable line of commerce, and which Manila can carry on more cheaply and promptly than Spanish merchants can; the spices sent from España on Chacón’s fleet were needed to supply the scarcity of them at that time, as the Manila trade had been interrupted temporarily; but if the latter be regular, such shipment from España could not occur again. From the year 1690, the indult ran from 50,000 to 74,000 pesos, on the basis of the 250,000 pesos allowed to the Manila trade; but it is evident that the duties ought now to amount to above 500,000 pesos, on the enormous quantities of Chinese silks that the galleon of 1,000 toneladas carries.]
97–105. [This memorial, with like protests from the cities of Toledo, Ezija, and Murcia, was sent to the fiscal, who on March 16, 1724, handed in his opinion on the question at issue—that is, whether the decree of 1720 should be changed or enforced. He lays down three propositions: First, that the trade in Chinese stuffs should not be prohibited to the citizens of Filipinas, since it is necessary to their maintenance, those islands having no profitable mines or commercial products; moreover, the introduction and propagation of the Catholic faith therein is an obligation of justice as well as of religious zeal, and was so recognized by Felipe II, when he refused to abandon Filipinas; and to fulfil this obligation the Spanish colony there should be sustained. For this purpose the trade with Nueva España had been granted to Manila, to such extent as should be necessary for its preservation, that is, to the amount of 250,000 pesos, and 500,000 in returns; and in the permission given to Manila to trade with China there had been, and should be, no restriction as to the woven silks of that country. Second, this trade ought, nevertheless, to be strictly confined to the amount of their permission, and all frauds to be prevented; for the complaints of Spanish producers and merchants had been caused by the frauds and abuses in the Manila trade, rather than by the mere fact of its including Chinese goods; the fiscal even suggests that they have an official representative at Acapulco to aid in the unlading and inspection of the Manila galleon, and report thereon to the viceroy, which would aid in preventing frauds and enable the Spanish merchants to discuss the question more intelligently. Third, that in case the trade in Chinese silks be prohibited to Manila, that in spices should be absolutely prohibited to the Spanish merchants and given exclusively to those of Filipinas; while the American trade in silks should be free to the Spaniards.]
106–111. [The Council considered this question on April 6, and decided that the decree of 1720 should be changed; they recommended that the Filipinas trade be continued as before the decree, and employing but one large galleon; that the decree of 1702 should be enforced, save that the goods should be valued not by actual inspection of the bales but by invoices presented by the shippers, with their sworn statements that the goods were their own; nor should any indult, payment of double duties, or other form of composition be tolerated; and that the royal officials at Manila, Cavite, Acapulco, and Mexico should be held responsible for the fulfilment of these regulations, under severe penalties. This proceeding was approved by the king, who issued despatches in accordance therewith (June 17, 1724) to the viceroy of Nueva España and other officials concerned therein; and on August 8 the merchants of Cadiz were invited to nominate a deputy to watch the Acapulco commerce.]
PERIOD VIII
Relates the plan presented by the deputies of Philipinas for regulating the commerce of that country, in the year 1724; and its results, up to that of 1730.
112–113. [On September 28, 1724, the deputies from Philipinas presented to the Council another printed memorial, in which they proposed a plan for preventing the abuses of the Manila-Acapulco trade. This document contains ninety-four paragraphs; it enumerates the provisions of the decree of 1720, the objections made thereto at Manila, the difficulties of navigation on the Pacific, and the reasons why one large galleon is better for that commerce than two small ones; describes the frauds and injustice practiced in the lading of the galleon, for which the responsibility rests mainly on the governors of the islands, who use their great power for their own personal advantage, regardless of the rights of the citizens; and opposes the requirements that each shipper must swear that the goods he sends are his own, that no one to whom space is allotted may sell or transfer it to another person, that the valuations of goods must be made by samples, and some other restrictions which seriously embarrass the citizens who have but little wealth to invest. It is represented that the seamen are allowed to carry each 30 pesos’ worth of goods as a private investment, in order to encourage Spaniards to enter the marine service; but this ought to be increased to 300 pesos (the allowance made to the men on the fleets that go to the Indias), for more Spaniards are needed on the Acapulco trade-route—hardly one-third of the men on a galleon being of Spanish birth, the rest being Indians and on the rivera of Cavite. The citizens of Manila ought to be allowed to carry back all the produce of their shipments, since but few of the products of Nueva España are adapted to their needs in the altogether different climate and other conditions of the islands. They also ask that they be allowed to compound the payment of dues at 100,000 pesos each voyage, or less pro rata if the amount of goods shipped fall below the 300,000 pesos allowed for the trade. The transgressions of law connected with the Acapulco commerce have been mainly committed by high officials, but have not been so great, or so injurious to Spanish trade, as Sevilla and Cadiz represent; the deputies assert that “these abuses cannot be checked, or most of them even ascertained, so long as the terms of the concession are in pesos,” and that it ought to prescribe a definite number of piezas, of specified measures and weight. They therefore propose a new ordinance for regulating the traffic, which embodies the above suggestions and requests, with some additional points. They ask for a permission of 4,000 piezas, of which 500 shall be half-chests filled with silks and very fine cotton goods, “which do not admit the use of the press;” the size and weight of the piezas is fully described. They ask permission to ship pepper and storax besides the amount of the permission, without restriction of quantity. The galleon for carrying these goods should be of dimensions here specified—the keel sixty codos [or cubits] long, the breadth of the vessel twenty codos, and the inside depth of the hold ten codos—and its crew should contain 250 men, besides the officers. The governor should not be allowed to act on the committee for distributing the allotments of lading-space; in his place is proposed the archbishop, the other members to represent the Audiencia, the municipality, and the merchants. The amount of merchandise which may be sent by the governor and all other royal officials ought to be limited to one hundred piezas, and this should go outside of the permitted amount. A share in the lading is asked for the ecclesiastical cabildo of Manila, on account of their poverty and their high dignity and character; also for the officers on the galleons, and for the widows of merchants and military officers. An allotment of space should be made transferable; and permission should be given to send some packages of goods intended as gifts to friends, affidavit being made that these are not intended for sale. The governor and officials of the port of Acapulco should not be allowed to exercise any authority or pressure over the Manila traders, beyond the proper inspection of the vessels and lading and the collection of duties; and the traders should be allowed to sell their goods as they please, either in or out of the fair there, or transport them to Mexico, if they prefer. They should not be expected to pay alcabala on the first sale at Acapulco, or any extraordinary imposts. The memorial specifies the provisions to be made for the lading and inspection of goods at both Manila and Acapulco, the functions of certain officials, the penalties for transgression of the regulations, and the customs duties to be paid on each kind of goods; and offers certain payments to be made by the Manila merchants, which will add much to the royal revenues. It states the present number of “citizens and traders” in Manila as 868.]
114–121. [The above document was handed to the fiscal, who advised the Council not to make the concessions therein asked, as they would destroy the entire system on which that commerce had thus far been conducted, and abrogate the provisions of the decree but recently granted for the benefit of Manila, which gave that city sufficient advantage. On January 12, 1725, the Council requested one of the ministers, Don Antonio de la Pedrosa, to examine the scheme proposed by Manila, and render an opinion thereon. He was willing to grant a number of the concessions requested, but would insist that the total of the permitted trade be restricted to 300,000 pesos, and the returns to 600,000 pesos, as before; and he proposed even harsher penalties for the transgression of the laws governing the trade. The Manila deputies, on learning of the opinions of the aforesaid royal officials, desisted from their efforts to obtain further concessions from the Council, but appealed to the king, who sent to the Council a decree (dated July 22, 1726) permitting the scheme of Manila to be tested (although with some restrictions), for two years.]
122–127. [The deputies of Manila were not satisfied that this concession should be limited to a term of two years, and again petitioned the king, asking that the trial be made for two or three five-year terms, on account of the many difficulties which that commerce must encounter. The king consented (October 21, 1726) to extend the term to five years, and a despatch of September 15 prescribes the conditions and regulations under which the trial of the new plan should be made—for a term of two years, extended to five by another decree of October 31. The annual galleon shall carry no more than 4,000 piezas, 500 of these being half-chests [medios caxones] containing the silken fabrics and the finer ones of cotton; the rest shall be half-bales [medios fardillos] bags [churlas] of cinnamon, cases of porcelain, and cakes of wax. The size or weight respectively of these packages is prescribed: the half-chests and half-bales shall be each 1¼ vara long, ⅔ vara wide, and ⅓ vara deep,[27] an allowance of two dedos on each measure being made for the outside cover or packing of the half-chest and for the compression used on the half-bale. The bag of cinnamon shall weigh 150 libras gross (that is, including all packing and covers), but at Acapulco it may be allowed four or five libras more of weight, the difference between the weight of Manila and that of Nueva España. The case [balsa] of porcelain must be one vara high and 2¼ varas in circumference at the mouth, no allowance being made. The cakes of wax must weigh twelve arrobas at Manila, four or five libras being allowed at Acapulco for the difference in standards of weight. Besides the 4,000 piezas, unlimited pepper and storax may be shipped; and Chinese cabinets and screens [biombos] may go in larger boxes than the regulation size, provided that the capacity of these be figured in terms of piezas. Passengers on the galleons are allowed each two chests containing their personal property, without any articles of merchandise. The dimensions and crew of the galleon shall be as stated by the Manila deputies. The committee for allotting lading-space shall be as suggested by them, save that the governor shall be included therein. Space is allowed to the extent of 100 piezas to the governor and other royal officials for their personal shipments, but these must come out of the 4,000 piezas. A limited amount of space is allotted to the ecclesiastical cabildo and to the officers on the galleons; also to the widows of traders and military officers. Allotments of space may be transferred to other persons who are approved by the committee. Due provision is made for the valuation, registration, and lading of goods at Manila, and the inspection and sale at Acapulco; for the allowance of small quantities of merchandise to the Spanish seamen and artillerists; for the shipment of the returns from the investments, whether in money or goods; and for penalties against transgressors. The Manila merchants are to pay alcabala on any sales outside of Acapulco; 25,000 pesos annually on each galleon which shall arrive at Acapulco (afterward changed to 20,000 pesos a year during the five years’ term), as a contribution to the royal service; duties of five per cent at Acapulco “for the embarkation of the entire product from the aforesaid 4,000 piezas, and the pepper and storax, which is the same that the traders of España pay at Cadiz;” and the following specific duties: for each half-chest, 45 pesos; each half-bale, 30 pesos; each bag of cinnamon, 25 pesos; each cake of wax, 18 pesos; each case of porcelain, 12 pesos; each chest of cabinets or screens, 18 pesos for each of the piezas to which the chest is equivalent; and each arroba of pepper or storax, 12 silver reals.]