5. Those who carry away the silver from Acapulco are all Spaniards, and the greater part of it accumulates in the empire of China, which has not waged war against us, nor will she do so, with the gains that we allow her; but those who carry away the silver which reaches Cadiz are the foreigners, and it is going to remain with the powers who are harassing and ruining us with our own wealth. Let these points of difference be compared, and decide whether it is not a weak argument, that of the export [of silver from Nueva España], against which so much clamor has been made by the commerce of Cadiz—or, to speak more correctly, the convenience of the foreigners—and I believe that it will be outweighed, not only by the loss of the royal duties which are yielded to the royal treasury by the silver which goes to Cadiz, but by the injury that is caused to us by the profits which we furnish to the foreigners. Moreover, the silver carried away from Acapulco can yield the same [amount in] duties, in order to avoid the aforesaid loss, if it be considered of much importance—which it is not; for even if two millions of pesos were carried away each year, and the royal treasury deprived of the duties thereon (for which privation there is no necessity), that is not a sum which merits the great opposition, if not bitter hatred, of the commerce of Cadiz for this poor commerce [of Manila].
6. The other argument, that of the retardment which our manufactures of España would suffer [in competition] with those of China, is as easily overthrown. It is certain that our factories cannot furnish all the goods which are consumed in our dominions, and that on this account the silks, fabrics, hose, ribbons, etc., of other powers are allowed entrance therein; and what more need is there, in the case of these wares than of those of China, for declaiming against the injury which the latter, but not the former, occasion? There is no further difference except that the Spaniards trade with one class of the goods, and the foreigners with the other. Against the foreigners there is no one to raise objections, as some of them do against our own people; and as in these clamors there is no mention of the name of Englishmen, Frenchmen, Dutch, Swedes, Danes, Irishmen, etc., but [only] of the commerce of Cadiz and of its Spanish traders, the motive for this opposition is better hidden, the injury which they exaggerate is more readily believed, the minds of people are preoccupied with impressions of this sort; and the commerce of Manila, which has neither capital nor fame nor authority, and not so much influence as that of Cadiz, is the one which always suffers, which is permitted [only] with restrictions, and which cannot repair the damages experienced by the merchants of Cadiz without knowing them.
7. Before this, I had already mentioned the great amount of silk, both raw and woven, which foreigners bring from China, and that with this they supply their own manufactures, and [likewise] obtain money from us by selling in España the fabrics from Canton as if they came from Paris, Londres, Amsterdam, etc. Is this, or is it not, detrimental to our manufactures? and, if it is, why is not an outcry made against it by the merchants of Cadiz? They will say that it is impossible to prohibit this commerce, while our own manufactures are in so backward a condition; but why will this argument not avail the Spanish merchants of Manila? They will say also that the foreigners introduce into España not fabrics from China, but those of their own manufacture; that, whether it be from one country or from another, the injury to our manufactures is the same. But what cannot be denied is, that the foreigners who obtain so great an amount of silk from China trade it in our dominions, and that we cannot do the same in order to deprive them of those enormous gains. If, then, the company of Spaniards were formed in these islands, they could convey from China a great deal of raw silk for our factories, and many special fabrics which would be of as good quality as those of Europa; they could furnish them more cheaply than the foreigners do; and, above all, the profits would remain among the Spaniards. Our commerce would steadily flourish; we would have more ships, to make our dominions safe; the marine service would be increased; and necessarily there would be diminution in the commerce of the foreigners, for which our deluded Spaniards are pleading.
8. The royal duties will be the same, if the silk and fabrics of China are carried by our ships of the company, as if they were carried by the foreigners; and even if the kindness of our sovereign makes some reduction [in the duties], in order to favor the said company and subvert those that are hostile to it, other advantages, of greater importance than the aforesaid duties, will result to the crown, in the certain knowledge that, in the present state of things, that is prohibited to the Spaniards which is allowed to foreigners—that is, the introduction of goods from China which are difficult to recognize in España, on account of the facility with which European fabrics are imitated in Canton.
9. By allowing to the aforesaid company the importation of Chinese goods into España, while the prohibition to foreigners remains in force, the trading-fleets and galleons will be supplied; and these commodities will be purchased less from foreigners, in order that our own manufactures and commerce may gain some growth.
10. All the silk which our company will put on the market will diminish the amount sold by the foreigners; and if they have not a market for this commodity they will take on smaller cargoes of it in China, Cochinchina, Canton, Tonquin, Tripara, Bengala, and Achem, and the said company will find it easier to purchase the silk. Before the nations of Europe carried away the silk from Canton, it could be bought at very low prices; but since they began to carry on this commerce—which was in the year 1685, in which the emperor of China opened his ports to all nations—up to the present time, the prices have risen more than three hundred per cent, as some merchants of this city have informed me.
11. In the six years that I have spent in Manila, the [price of] silk has risen every time; and because so much was being sent out of the country [of China], the emperor forbade, under the most rigorous penalties, the exportation of this product—of which an enormous amount is consumed in his empire, where it was already becoming scarce in the year 759—that it might be used by his vassals, whom he regards with the most extraordinary affection.
12. Finally, when the merchants of Cadiz become shareholders in the said company there will be no more talk of the export of silver by way of Acapulco, or of the injury to our manufactures from the fabrics of China; or the only ones who will cry out against it will be the foreigners connected with the said commerce [of Cadiz], when their names are made known, for they will not [then] have Spaniards to talk, as the saying is, “through a goose’s mouth.” If it shall be considered expedient (as it seems to me it is) that the aforesaid company may ship freely, and without any restriction, such wares as it shall think best to the kingdom of Nueva España, the royal duties can be so adjusted that the royal treasury will not suffer a great loss, under the certainty that the goods of the said commercial company will all be duly registered, as also the silver which they bring in return; for its directors will possess no authority for anything except what is according to the rules in the like method of commerce. This legality in the declarations [of goods shipped] will result in great benefit to the aforesaid royal duties, even though these be more moderate than the duties which are exacted from private persons whose greed for gain urges them to convey, and to bring [here], many contraband articles.
13. For greater security on this point, it could be so regulated that there would not be the slightest uncertainty, by causing the agents or directors whom it will be necessary to have in this city, to write out the invoices of what they ship, according to the entries in their cash-books, and the same with the silver and the goods that are brought back in return—information of all this being sent from here to the officials at Acapulco, and reciprocally from that port to the officials at this capital, in order that on each side any possible infraction of the law may be known, and those engaged in the commerce be restrained from committing such. This exhibition of invoices and the returns in silver can be compared with the statements which the directors of the company will furnish, in order to ascertain whether the former agree with those which will be contained in the said statements. I take for granted that in the presentation, examination, and approval of these accounts there will be the supervision of some person appointed for that purpose by our sovereign—whose royal and benevolent disposition will, it is to be believed, place some capital in the company that I have mentioned, as a foundation for this great work; and in this case it is hardly possible that the least crevice will be found by which the royal duties might suffer loss.
14. The nobility of España, from the highest rank down; the guilds of Madrid, who now form a commercial body of much importance; all the merchants of España, the kingdom of Mexico, Peru, and these islands; some foreigners; and many religious communities which have set aside the produce of their funds for pious purposes—all these will, without doubt, become shareholders in the aforesaid company, if they are convinced of the benefit of this commerce, and of the prosperity which will ensue to the Spanish nation; and when the said merchants have their gains by means of these seas assured, and a means of supplying the kingdom of Mexico with a great part of the goods which its people need, without the burden of the royal duties, it is certain that they will not desire to purchase foreign goods, except at such advantage as will prove detrimental to the foreigners.