COMMERCE OF THE PHILIPPINES WITH NUEVA ESPAÑA
(Concluded)
PERIOD IX
[Here] is set forth what occurred in regard to the commerce of Philipinas from the year 1730 until that of 1733, in consequence of the practice of the ordinance of the year 1726, with occasion of the complaint made by the merchants of Andalucia.
128–162. [In July, 1729, the consulate and merchants of Cadiz sent to the king a memorial protesting against the favor recently granted to Manila, which the latter was abusing to such an extent as to endanger the very existence of the Spanish commerce with Nueva España. So much Chinese silk had been sent by Manila to Acapulco that Cadiz had determined to send in this year’s trading-fleet no Spanish fabrics; but this would result in the destruction of its commerce and of its manufactures. Cadiz claims that Manila carries away from Nueva España three to four millions of pesos annually, a sum which falls into the hands of foreigners and infidels; and asks that the permission given to Manila for the export of Chinese silks be revoked. The king thereupon ordered the viceroy of Mexico to see on foot a thorough investigation of the Manila commerce, its actual character and extent, its profits, and other particulars, which is done. The year 1731 was selected for this investigation; the sales at Acapulco were unusually profitable that year, as all kinds of fabrics were then scarce in Nueva España, and the Chinese goods were advanced 25 per cent over their usual prices. The officials found that the total sales from that year’s cargo amounted to 2,096,874 pesos (making the average value of each pieza of lading more than 500 pesos); deducting from this the royal duties, 229,547 pesos (including the contribution of 20,000 pesos made by the shippers), the amount of returns for the citizens of Manila was 1,877,327 pesos. This amount would probably be equaled in subsequent voyages of the galleon (even if the sales at Acapulco were not so profitable), so long as the present permission continued; for the 500 half-chests of Chinese fabrics made an enormous amount, and of great value. The amount of silver embarked that year for Filipinas was as follows: “1,691,465 pesos, as proceeds of the merchandise sold at the fair that year [this being the previously-mentioned amount, with the royal duties deducted from it]; 566,828, in sums remaining from the previous year; and 175,828, on the account of his Majesty for the royal situado and other special situados of those islands, and for the pay of the crew of the galleon.” Investigation being made of the past years of this commerce, “the castellan of Acapulco replied, that from the year 1692 until that of 1702 the Philipinos had been able to lade their ships with goods to the value of 250,000 pesos, the returns for which were 500,000 pesos, without assigning a definite number of piezas—in which time they paid for all kinds of duties 75,000 pesos, which was equivalent to thirty per cent on the cargo and fifteen per cent on the returns. That in the year 1702 their permission had been increased to 300,000 pesos of capital [invested], and 600,000 of returns, with the obligation of paying for the shipment of the latter a charge of two per cent. This had been punctiliously observed until the year 1717, when other quantities [of merchandise] had been shipped outside of the permitted amount, for the causes and reasons which would appear from the acts drawn up on account of this proceeding; and for what was thus shipped outside the permission duties had been paid at four per cent (which amounted to 365,000 pesos), and adding to this the six per cent of alcavala,[1] the duties were ten per cent, which was collected. That this regulation had been in vogue up to the year 1720, in which the Marqués de Valero had allowed to the Philipinos the lump payment of 100,000 pesos which before had been refused them, including in this amount all the dues which they must pay [to the royal treasury], and permitting to them, as before, the shipment of the 600,000 pesos of returns; and that, although this amount only was what they ought to embark in virtue of the permission, they carried other funds also (and not a few)—the reason being that many persons were resolving at that time to become citizens of the islands, and, as consequently their wealth must be conveyed thither, the papers had been given to them for doing so, in virtue of which they embarked their funds, paying on them ten per cent. That for the last ten years many sums of money had gone to Philipinas outside of the permitted amount, on various warrants, for which orders had been previously given, regarding which the bureau of accounts could supply information; but, as in this matter the officials acted independently of the castellan, he had been unable to take cognizance of those transactions.” The royal officials of Acapulco—who, with the castellan, were at that time in the City of Mexico—advised the viceroy not to make any change in the permission for the next annual galleon; and gave as their opinion that, comparing the shipments of merchandise, returns therefrom, and duties paid to the treasury, by Manila in the last forty years, if in those islands there had not been an increase of their commerce, at least it had not declined.[2] The officials regarded the present amount of trade granted to Manila as far in excess of what it had before (on which earlier amount the islands had been able to support themselves), and the great withdrawal of money from Nueva España as injurious to the commerce of both that country and España; and they advised that the permission be reduced to 2,750 piezas of Philippine products and ordinary fabrics, and 250 half-chests of Chinese fabrics. If this were done, Manila would still have a million pesos of returns, even after deducting all the duties and imposts, which would surely be enough, since before they had maintained themselves with 600,000 pesos annually. As it was, the royal revenue was much impaired, since the duties paid by Manila now did not include certain ad valorem duties imposed under the old arrangement. At the command of the viceroy, the bureau of accounts of Mexico furnished him a summary of all the remittances of money from Nueva España to Manila during the years 1723–31 inclusive; this report showed that in each year more than the amount of the permission had been conveyed—sometimes stated as arrearages from previous shipments, sometimes as allowed by special permit from the viceroy. The yearly situado was stated as being 250,000 pesos, the amount actually sent being such balance of this sum as remained to the credit of Manila in the treasury of Mexico, which varied yearly from 73,000 to 93,000 pesos. The galleon of 1731 had carried the following cargo: 2,767 bales, 477 chests (of Chinese silks), 554 bags of cinnamon, 147 cakes of wax, 51 cases of porcelain, 296½ arrobas of storax, 1,977½ arrobas of pepper; besides this, and outside of the permission, four half-bales and nineteen chests were sent by the religious orders in Manila—Dominicans, Franciscans, Augustinians, and Hospitallers of St. John of God—for the clothing of the religious in their hospices in the City of Mexico; and by the governor, Marqués de Torre-Campo, 45 piezas for (purchasing?) furniture.]
View of port of Tacloban, in the island of Leyte
[From photograph procured in Madrid]