Of the prohibitory system pursued by Spain towards her colonies, it may perhaps be said, with as much justice as of her wars, that it was, “en faire un desert pour s’en assurer l’empire;”[83] for few systems could have been better calculated to assure the first object; the last has miserably disappointed its advocates, and left a striking lesson to the world, at which humanity has cause to rejoice.
With jealousy of foreigners exceeding even the bounds of credibility, she invariably refused them admittance,[84] whether for scientific or commercial purposes;[85] or when from accident or influence this was obtained, the people following, and often exceeding the lessons of their rulers, by civil and religious persecutions, and contempt, contrived to render their existence almost a burden. It would appear to have become an axiom amongst them, remarkable only for its illiberality, that “a dollar gained by foreigners was one taken from the pocket of a Spaniard;”[86] and that in all cases where the interests of the merchants of the mother country and those of the colonies were opposed, the latter were to be sacrificed.[87] Her own subjects were, from the same miserable narrow policy, embarrassed with restrictions and conditions—permissions from the Consejo de las Yndias, &c. &c. that it became by no means a trifling affair to be able to embark for the Phillippines, unless at the risk of being sent home from there by the local authorities.
Unable herself, from the want of manufactures and energy, to profit by her colonies, she obstinately refused to allow others to do so, and in this she invariably persisted. The fruits of such a system were such as might have been expected; the colonies submitted—(while they were obliged by force to do so), smuggled to a large amount, remonstrated, resisted, and declared themselves independent; and thus has Spain forever lost those advantages which a more liberal policy might have secured to her through a long course of time.[88]
In the Philippines, this system, though followed for a long time, has been of late years successively relaxed, and the good effects of this modification are visible to the most indifferent observer: it has however left deep traces of its operations, and much is still wanting: the foreign merchant or adventurer, how much soever he may be smiled upon and caressed, has still to contend against a rooted and long cherished jealousy of all that is not Spanish.
The Acapulco trade is another and a principal cause of the very confined state of the commerce of this valuable colony. A few remarks will be sufficient to justify the apparent paradox.
The merchant of Manila (says Comyn), is “entirely different from the merchant of other parts of the world; he has no extensive correspondence, no books, or intricate accounts; his operations are confined to a shipment of bales to Acapulco, and to receiving the silver in return: and in 40 years, only one or two instances have occurred wherein bankrupts have been able to produce a correct set of books to the Consulado (or Chamber of Commerce)!” This description was doubtless correct at the time when it was written (1809); but it is just to observe that they are now much improved, and though not excessively enterprising, are better acquainted with the true principles of commerce. Such were the merchants: let us examine a little the trade.
The basis of it was, and is, the funds called “Obras Pias”[89] (Pious Works). These are funds under various denominations, whose origin was the piety of well-meaning Spaniards, who dying rich have bequeathed large sums for the purpose of lending to deserving traders to commence or continue their career with. The administration of these is confided to various religious and charitable institutions, or to civil associations—the trustees forming a board, at which the sums to be lent, &c. are determined. Their statutes differ in many unessential points;[90] but their general tenour is the same, viz. that sums not exceeding two thirds of the fund shall be lent on respondentia at certain rates of interest, which are fixed according to the risk of the voyages; and these, when repaid, shall be added, principal and interest, to the original fund. The interests are 25 per cent. to Acapulco, 15 to Bengal, and so in proportion. The total of the capitals of these establishments (there are 12 or 14 of them), amounted to about three millions and a half of dollars in 1820, of which about two millions are due to the funds on various risks, principally those of New Spain: of this the major part is considered as lost by those best qualified to judge of the subject.
The principal employ of these funds has been in the commerce to Acapulco; and from the facility with which capital was procured, the excessive gambling spirit which this introduced, as well as the system of mutual accommodations from the trustees of different funds, and the utter absence of the wholesome restraint of public examinations of their accounts, it has resulted that more harm than good has been done by these establishments. The original intentions are entirely perverted, a few small sums being lent to young adventurers (when they have powerful friends), but far the greatest part is employed by the trustees themselves under the name of a relation or friend.[91]
When, without risking any capital of his own, the merchant might thus share the enormous profits of this trade, with no more exertion than signing the invoices and letters (they were written by Indian clerks), and receiving the treasure on the return of the vessel, it is not surprising that for nearly two centuries they neglected all the other commercial advantages which surrounded them, or that such a commerce produced such merchants: the history of it and of them for that period may be confined to a few words:—they were the agents of the merchants of Madras and Bengal, receiving and shipping their goods, and returning their proceeds, while their profits were confined to a large commission on them.[92]
This trade was anciently confined to a single ship annually, the famous Galleon. She was fitted out, manned and armed, at the king’s expense, and commanded by a king’s officer. This was reimbursed by a duty of 33⅓ per cent. on the registered cargo, the merchants contributing to her provisionment, and to the payment of 20,000 dollars as a bounty to her commander. She was calculated to carry 3,000 bales of a certain size, and the privilege of shipping these was confined to the holders of 1,000 tickets called “boletas,” which were divided amongst different public bodies, charitable and religious institutions, the widows of the officers, &c., these tickets being saleable to others:[93] and of the enormous profit on this trade, some idea may be formed, when it is known, that with the very heavy expenses attendant on every stage of it, 500 dollars have been paid for a ticket entitling the holder to ship three bales!