The merchants of the corporation of the city of Los Reyes, Peru,
declare that, in the commerce between that kingdom and this one of
[Nueva?] España, they regard it as so necessary, that should it
cease, it would mean complete destruction. On this account it must be
preserved, and to this end all the means possible must be sought out.
Further, they declare that the merchandise brought to the kingdom of
Peru from China is not the cause of this decline of commerce between
the Yndias and España, but the inadequate regulation of the war and
merchant fleets, and the winter seasons, which are the utter ruin and
destruction of the merchants. This is plainly evident, since before
the wars with Ynglatierra, when this matter was properly attended to,
the commerce was extensive and profitable--although there was no need
of so much merchandise as there is now, when the population of Peru
is so much larger than at that time--and the merchants not only of
España but of Peru were amassing wealth. But now they are not doing
so, for the reason that is here named. All is going to destruction:
payments cannot be met when due; and duties are excessive, for in
order to send money to España, the shippers pay seven and one-half
per cent for the galleons to guard the money, and when goods are
shipped from Sevilla, they pay as much as three and one-half per
cent. The principal cause of this loss is the time [required to
transact business]; for from the day when the money leaves Callao
(the port of Lima) until it returns in merchandise to the same point
there is an interval of at least three years, counting the winters;
and before they can secure returns from the merchandise another year,
or even a year and one-half, must pass, for not all the merchandise
can be sold for cash. Consequently this money can gain its profit only
once in four years, when it could, as formerly, be thus handled twice
in that time. And however great the amount of the profit, it cannot
approach that of the two profits [in the four years], especially with
the loss involved in the aforesaid duties for the fleets, and the new
impositions of duty for the armed vessels that carry, in the South Sea,
the money from Lima to Panama--and this is in addition to the duties
paid to his Majesty. Thus it results that the merchants of Lima, who
were formerly very rich and had ample credit, have become debtors;
and this is the reason why the merchants of Sevilla do not make the
same profits as formerly. Therefore there is a cry against Chinese
goods, as they imagine that to be the cause of their loss. This is
evident likewise, because the commerce existing formerly between
Peru and Nueva España was very slight and now has increased greatly,
and the Peruvian merchants prefer to go to Nueva España to make their
investments rather than to España, because they can make the voyage
to Nueva España in one year; and therefore can make many investments
with their money. And although it is true that they bring Chinese
merchandise in their shipments from that which arrives in that kingdom
of Nueva España, still the greater part of the cloth bought by them is
from España. Although this costs them more, the shortness of the time
is of so great importance to them that they consider it more profitable
than going to España, for the reason expressed above regarding the
delay in time. Thus, with suitable arrangements regarding galleons
and merchant-vessels, commerce is prosperously carried on.
Further, they declare that the kingdom of Peru has greatly increased,
during the last twenty years, in its Spanish population, both in
Spaniards born there, and in those who have gone thither from España,
so that there are at least three times as many people. All these
people live very luxuriously. All wear silk, and of the most fine
and costly quality. The gala dresses and clothes of the women are
so many and so excessive, that in no other kingdom of the world are
found such; so that if four merchant-vessels went to Peru annually,
all the cloth goods would be sold, as well as everything else of the
cargo. Because vessels go there only at long intervals, the people make
use of goods from Nueva España and China. However, in the case of the
Chinese goods, they are worn only by the very poor, and the negroes
and mulattoes (both male and female), sambahigos, [9] many Indians,
and half-breeds, and this in great number. The silks of China are much
used also in the churches of the Indians, which are thus adorned and
made decent; while before, because of inability to buy the silks of
España, the churches were very bare. As long as goods come in greater
abundance, the kingdom will feel less anxiety, and the cheaper will
be the goods. The increase to the royal exchequer will be greater,
since the import duties and customs increase in proportion to the
merchandise; and this increase cannot take place, if the fleets are
laid up for the winter, for by this delay the merchant-vessels cannot
be despatched annually--on which, and upon their money not lying idle,
depend the profits of the merchants.
Therefore the merchants of Peru declare that commerce should be opened
with China, and that they should be permitted to send one million
[ducados] annually in two vessels, and that this million bring back
merchandise to the same port of Callao. This merchandise will yield
six millions, of which ten per cent, paid to his Majesty, will amount
to six hundred thousand ducados. And if the license for one million
is not given, it should be for one-half, the duties on which would
be three hundred thousand ducados.
Further they declare that, if this be not conceded to them, they
should be permitted to buy and carry to Peru the merchandise taken from
China to Nueva España. There the duties on this merchandise would be
imposed, and they would pay seven per cent on them, notwithstanding
that only five per cent is paid in Nueva España. Paying seven per
cent on the merchandise from China bought in Mexico, it will be seen
of what little importance the four to six millions of ducados that
Sevilla pays to his Majesty are to the royal estate, because it does
not consent that goods from China may enter Peru.
And I assert that, should his Majesty ask me for my opinion, I would
tell him that, if it is true that the Chinese merchandise can in
no way injure the commerce of España, while its benefit to Peru is
certain--especially to the poor and common people, of whom there is
a great number--and since it seems desirable, for the adornment of
the churches of the Indians, that there should be goods from China, my
opinion would be that license should be given for only one-half million
(ordering under heavy penalties that this sum be not exceeded), to be
used in the following manner: Four hundred thousand ducados' worth of
merchandise should be brought, and one hundred thousand worth of gold
bullion. The latter is likewise merchandise in China; but traders do
not like to take it as it yields them no more than fifty per cent,
while on the other merchandise they make five hundred per cent and
upward. Thus if this silver should be allowed to them, they would
obtain gold, and this one-half million would yield three millions
in Peru from merchandise which will be worth three hundred thousand
ducados in import duties to his Majesty, besides the other dues imposed
on the aforesaid goods. Thus the customs will increase, and, as said,
these five hundred thousand ducados need not to be considered, as it
is thought that this amount cannot diminish the commerce with España;
for every year the merchandise of Peru yields six or seven millions,
and if the trading fleets and armed galleys are sent at the same
time, much more money will go to España, which on this account does
not go there. These five hundred thousand ducados have, in previous
years, always gone from China to Peru by way of Mexico; and as the
merchants say truly, the winterings and increased duties and expenses
of the winterings are causing the commerce to deteriorate. This
is proved by the above arguments of the merchants, evidently cited
from actual facts. Thus, if the merchants were provided with money,
and were able to dispose of their cargoes every two years, and with
the proceeds thereof begin new commercial enterprises, they would not
be only exhausted and ruined, but rather they would be placed in easy
circumstances and the country would be relieved from its difficulties
by the gains thus made. With more goods, it is evident that the royal
exchequer would benefit more as aforesaid. Therefore it would not be
advisable to prohibit all commerce with China.
And at the very least, the five hundred thousand ducados should be
granted, so that the merchandise taken to Mexico from China can
be purchased in Mexico. Collecting in Peru the customs on these
Chinese goods purchased in Mexico, seven per cent would be levied
thereon, which plus the five per cent paid in Mexico, makes twelve per
cent. The kingdom would feel greatly aggrieved if they were deprived
entirely of this commerce. And if Mexico continues to have trade with
China, a considerable quantity of Chinese goods will, however many
precautions will be taken, be hidden in the Mexican ships for Peru;
while but very little of it will be seized, and his Majesty will
lose almost four hundred thousand ducados, because the goods do not
enter publicly. Therefore it would be advisable that this license be
granted perpetually, with the above limitation.
+
A great lack of money has made itself felt in this colony; and,
after having thoroughly investigated the cause thereof, it has been
ascertained that it proceeds in part from the very great sum taken
out annually for China. It is also attributed in part to the issue of
the money from the treasury--not that it has been less than in other
years, but it has always been much more limited than it might be,
and than is advisable for a commerce that is increasing in extent
and value so much as is that of this kingdom. And since it would
be greatly to the advantage of the treasurer to coin more money,
they impute to him that, by not spending something at present, he is
thus niggardly in making the necessary provision, and that by this he
loses much and the state more. These two difficulties are reënforced
by another--that since there have hitherto been, for various reasons,
very few traders who were inclined to buy silver from private persons
and send it to the mint to have it coined on their account, it has
resulted that four or five men have made themselves the masters of
this traffic; consequently there has been a great increase this year
in the loss incurred by those who sell their silver in order to be
furnished with coin. All this has been observed at the time of the
vessels and trading fleet; and it is a matter of much moment, in which
it has seemed best to me to inform your Majesty, inasmuch as I have
undertaken to institute a reform. This, please God, will be made with
energy, as in breaking open a package. When the correctives usual
in this region (which are mild) do not suffice, I will propose to
your Majesty other and more severe measures, which might be adopted
by the Council, and one might be of sufficient advantage to your
Majesty. However, it were not advisable to discuss this, but that
the necessity of the public government demands it and invokes it,
since only at such times can it be called just or used as an argument.
I consider your Majesty's permit in regard to the money going to the
Philipinas as liberal and beyond the excess of what is carried as
contraband, which is a very large amount. It is almost impossible to
put a stop to this, notwithstanding that I do not give permission,
expressed or tacit, in that commerce for one real more than the
amount allowed; and I have ordered vigorous investigations on this
point at the time of the despatch of the vessels. But if it is easy
to hide the money, there is little to fear in the penalties, although
orders are given that they be executed. Accordingly, in case of the
cloth that can be brought to and unloaded at Acapulco, I think that,
as it has bulk, it can be locked up in some warehouse and examined,
or (which would be more efficacious), that no limit be placed on the
use of this class of goods in Nueva España, so that those persons whom
the viceroy considers needy might not be restricted in wearing it. I
fear greatly that in the case of the money, as it is so easy to hide,
no sufficient reform can be instituted for this evil, as I see that
there is no remedy in other things of like nature, either in the armed
ships or the trading vessels from those kingdoms. There, however,
is less damage; for this is all in money which goes to infidels and
never returns, and thus militates against this country, and that
[España], and greatly weakens the commerce of both. I recently made
arrangements with Don Pedro de Acuña (as I wrote to your Majesty on
another occasion) for making a personal inspection at Acapulco; it
was decided that I should reject the money, and, because there have
never been confiscations that cause fear, that some part of each one's
share should be actually applied to the treasury, and that the same
should be done in Manila. Since letters received from there state
that goods are very dear because of the great quantities of money
that go there, it must be that this inspection was not promptly made;
and I fear that there is too much laxity there. For it would appear
that those islands should grow rich with the increase of money,
and that if they buy at high prices they must sell the goods here
at high prices; and on this account regard and favor for that land
must not give the governor and Audiencia opportunity to take severe
measures toward this region. I intend to use rigor at the coming of
the ships this year; for this is demanded by the prevalent excesses
and our actual experience of the difficulties that result therefrom.
[_Endorsed _: "Copies of parts of letters from the Conde de Monterey,
[10] written to his Majesty, May 15, 1602."]
Points in the Petition from the Filipinas Islands in Regard to Their
Commerce
_First point_
That the commanders, captains, and officers of the vessels plying on
the line, be inhabitants of the said islands, and not of Nueva España,
so that the losses, frauds, and injuries that they cause in loading
their goods, and in the transportation by the ships of enormous sums
of pesos in consignment and trust, may cease. This would save for his
Majesty's treasury the salaries paid the officers of the vessels,
and would benefit the islands. The citizens of the islands would
receive such posts, when it should pertain to them, as a reward for
their services, as the governors have been ordered to grant them to
meritorious men.
The bishops of Paraguay and Nueva Segovia declare in information
given on this matter, at the order of the Council, that for its remedy
and the aid of the islands, it would be very advisable to establish
a consulate in Manila; and that the [royal] ships, together with
the vessels of the merchants, should go on its account. His Majesty
should be given the hulls of the ships, and the masters and officials
appointed in the said islands, to whom money from Mexico should not
be committed, nor should it be given them in trust. The expense caused
to his Majesty by them would thus be saved.
_Second point_
That the governors be ordered not to sell tonnage in the ships plying
in the line to Nueva España, no matter what expenses are incurred.
The bishops assert that it is not advisable to sell any space,
but that, in case of great necessity, it be done by the consulate;
it would be better, however, not to sell it, for if it is sold,
then there will be no freight-money for navigating the vessels.
_Third point_
That the viceroy of Nueva España be ordered not to give permission for
any Piruvian merchants to go to the islands from Piru, under pretext
that they are going to become citizens of the islands--because of the
injuries that the islands receive therefrom; because of those merchants
carrying, as they do, large sums of money belonging to themselves and
others, and to companies; and because they only come to invest the same
and return. On this account the prices of merchandise have risen more
than fifty per cent. After investing their money, the commanders and
masters, because of a money consideration, take these merchants back
to Nueva España, without it being possible to institute any reform.
The bishops say that it is advisable that they should not go [to
the islands] unless for the purpose of becoming actual citizens,
for there the difficulties referred to in this point exist.
_Fourth point_
That the fund for the pay of the troops be placed in the treasury on a
separate account, and that the said troops be paid therefrom, and from
no other account, in order to avoid the disadvantages that result,
and the many offenses and injuries committed by the soldiers under
stress of their necessities and the opportunities that arise. This
would provide a source for what money might be necessary, not only
for the equipment of ships, and provision of ammunition and other
military supplies, but for the pay of the soldiers, which is now
spent in other things.
The bishops declare this to be inconvenient, and that the half-real
which is given for the prebendaries should also be placed in the
treasury on a separate account.
_Fifth point_
That the cabildo, magistracy, and regimiento of Manila be ordered to
allot annually the lading of the vessels to the citizens of Manila,
for much harm has resulted to the citizens from the governor allotting
it--the lading being made illegally, and the governor having allotted
it to many of his servants and relatives to the prejudice of the
citizens and those born in this country. By this method the allotment
would be honestly made without wrong to any one.
The bishops say that if his Majesty orders the consulate to be
established in Manila, in such case it would be advisable for
the consuls to make the allotment; and the governor cannot feel
aggrieved thereby, since the consuls must navigate the vessels with
the freight-money. However, if there are no consuls, it should be
determined that the cabildo make the allotment, even though the
governor be aggrieved.