15. It is also evident that the aforesaid company will be able to furnish its commodities at lower prices than the foreign companies do; for it does not have to incur so many expenses in maintaining troops, fortresses, etc., as do the Dutch, English, and French; nor will the costs of the navigation be so great, because the voyage is shorter. Moreover, the purchases will be [made] in China, at the same prices as those of the said foreigners; and consequently, the company transporting its merchandise to España, and being able to furnish goods at more reasonable prices than the foreigners do, for these reasons the profits will be greater and the losses of the foreigners more certain. By carrying the goods from these islands to Nueva España, the company will hinder the illicit commerce of the said foreigners, who in sailing from India to Europa, and from Europa to their colonies in America, must incur more expense than the said Spaniards, and will not be able to furnish commodities at the same prices as the latter can.
16. The English who come to trade in China carry these goods to the ports of Inglaterra, pay there the duties on them, and afterward ship them to various regions—among these to Jamayca, from which island they carry on a very extensive illicit commerce with the Windward Islands; with Nueva España, through Honduras, and by way of the coasts of Campeche and Vera Cruz; and with Peru, through the colony of Sacramento, and various other places. The number of laden vessels which enter Jamaica every year exceeds five hundred; and by this can be estimated the value of the goods which are [thus] disposed of (for all of these are carried into our dominions), and the great amount of silver which they carry away from us, thus causing loss to the royal duties of his Majesty—which, in proportion to the said goods and the money which they produce, would be very large.
17. Sabary, whom I have cited, estimates at eight millions of pesos the illicit commerce which the English carry on, from Jamayca alone, with the Spaniards of America; and he states, to the discredit of our nation, that all the ministers and officials, from the highest to the lowest, proceed by agreement to defraud the royal duties, and to become rich at the cost of what they seize from the royal revenues.
18. Probably no less is the amount of the fraudulent commerce carried on by the Dutch from Curazao; and much greater is that which is conducted by the two nations (and even by the French) in Puerto Rico, Cartagena, Buenos Ayres, Campeche, Honduras, Portovelo, Caracas, Guayaquil, and the Canarias Islands, and the other ports of the Windward Islands and the two Americas—as also is made known by the same author whom I have already cited, besides what we all know.
19. The new and very extensive territory which the aforesaid English now possess in North America, and on the Mexican Gulf as far as the Misisipi, renders this illicit commerce much easier for them by means of that coast, especially by way of the new Santender,[49] which has a good harbor for vessels of moderate size, and many rivers; it is not far distant by land from Cretaro [i.e., Queretaro] and other rich cities of Nueva España, and by sea it is not far from Vera Cruz. With these great opportunities, the illicit commerce can be pushed to the utmost; for the ambition and covetousness of the trader despises no means which may bring him profit.
20. The commodities which the English illegally introduce [into our colonies] must necessarily be cheaper than those which go in our trading-fleets by way of Vera Cruz, for the latter pay many duties, and the former none; and the very English who sell in Cadiz to the Spaniards, paying their duties, sell the same commodities in Nueva España at a lower price than in Cadiz. Therefore, if some efficacious remedy be not applied to these illicit importations, I think that our commerce will be ruined; that our trading-fleets will experience great losses; that the royal duties will be diminished; and that in Nueva España the illicit commerce will reach an even greater extent than in Perù. But it also seems to me that if the commerce from these islands to Acapulco is free to our company the aforesaid losses can be in great part averted, for the following reasons.
21. When the foreigners (and especially the English) obtain so much silk, both raw and woven, from China we must believe that they find this commerce profitable, and that the said commodity is very cheap in the said empire, compared with the prices of silks in Europa. The profit is more obvious in the woven goods, because the infinite number of people who inhabit China, and the abundance of workmen in every kind of occupation, cause their manufactures to be exceedingly cheap—as all of us who live in this part of the world know by experience, who every year send to Canton commissions for many articles, because they cost us less than to make the purchases in this city. For instance: The Chinese and the Spaniards carry silver from here to Canton, where it is worth three per cent more; and nevertheless a snuff-box, a salver, and other small articles of silver cost less there than when made here to order—which shows the great saving of [cost in the] manufacture which results from the great abundance of workmen, as I have said.
22. This advantage which the English have through the commerce of Canton—to which port usually come every year thirteen or fourteen ships—can also be enjoyed by our company; and, buying at the same prices [as the English]; it can sell its goods at lower prices in Nueva España, even after paying the royal duties. For the English are obliged to make longer and more costly voyages, as is that from Canton to Inglaterra, and from there to España and Nueva España; while the Spaniards will sail from here to Acapulco. The former pay royal duties in Inglaterra, and the latter will pay these in Acapulco, saving the expenses of the second voyage which the English make, to their colonies in America. Finally, the Spaniards are not obliged to maintain, at so great expense as do the English, fortified posts and many troops, which are supported by their profits; for these reasons, the latter will not be able to sell their goods at the same price as that of the Spanish company. Consequently, they will not make illicit importations [into the Spanish colonies] of silks and [woolen] fabrics; and even those of their linen goads (which are most to be dreaded) can be diminished with [our importations of] the light linen goods of China [liencesillo] (which are used in Nueva España), with “elephants” and other goods from the coast, and, in due time, with the cotton cloths which will be woven in these islands. Here there is abundance of cotton, and of people for its cultivation and manufacture—especially if some masters in this art come from España, or, in case that fail, from the Coromandel or the Malabar coast; and if among the Indians be introduced the spinning-wheels which are already in use in the manufactures of España.
23. From all these arguments it will be possible to conclude whether they are as well adapted to free commerce [of these islands] with the kingdom of Peru, and to that which the two Americas can mutually and reciprocally conduct between each other, in order that all the vassals may have a share in the extension of the commerce which hitherto has been prohibited to them; that the products of all the provinces may be increased, by the market which will be provided for them; that the Southern [i.e., Pacific] coasts of the said Americas may have an abundance of vessels; that they may mutually aid and defend each other from enemies; that by this means all our dominions remote from España may be more securely preserved; that our silver may have wide circulation among the Spaniards, who, occupied in this lawful traffic, will not expose their money to the risks of the illicit commerce; that the commerce of the foreigners may be diminished, without the least loss to the royal exchequer in the duties from them; and, in fine, that with the gains [from this commerce], and with the decreased exportation of silver to the foreign kingdoms of Europa, the prosperity of our monarchy may begin, and it may come to be the most worthy of respect in all the world, with the extension of its commerce—which is the sole and only means of attaining success; for no other means has been found more effectual, by either ancient or modern geniuses.