[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, 296 1/2 arrobas of storax, 1,977 1/2
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.]
163-185. [The viceroy, Marqués de Casa-Fuerte, wrote to one of the
royal Council, Don Joseph Patiño (November 1, 1731), giving his opinion
in regard to the regulation of the Philippine commerce. Estimating
roughly the returns from the annual Manila galleon at 2,000,000
pesos when before the sum of 600,000 only was allowed, he regards the
present permission as injurious to the commerce of España and to the
commercial interests of Nueva España as well; for three vessels come
from Philipinas to one trading-fleet from España, and, by carrying out
of the country some six millions of pesos, they render the disposal
of the merchandise brought on the fleets difficult, besides handing
over the treasures of the Spanish domain to infidels. He advocates
the reduction of the permission to such amount as will produce not
more than 1,000,000 pesos of returns for Manila; and thinks that
there is foundation for the remonstrances of the Spanish merchants,
although they have exaggerated the amount of the money sent to Manila
and the damage to their own trade therefrom. That damage arises
almost entirely from the Chinese silks and ribbons sent to Acapulco,
which at the fair in that year (1731) were sold for the estimated
amount of a million pesos; he therefore recommends that Manila be
strictly prohibited from shipping to Acapulco any silk, of any kind
or quality whatsoever, except raw, twisted, and floss silk, hose,
and white sayasayas; and that the value and amount of all the goods
sent thither be judiciously regulated, so that prices may be kept
within bounds. This result also depends considerably on the fact that
in Mexico large quantities of cotton are raised, from which are made
various fabrics; "and in the bishopric of La Puebla the elephant stuffs
(which are a sort of Rouen cloth, but made from cotton, which serves
for the shirts of very poor people, and for the linings of garments,
like the thin hollands), which form a considerable part of the cargo of
the ship from Philipinas, are so well imitated that they would and do
check a rise in the prices of the cotton goods from China. In this City
[of Mexico] all the raw silk which comes from Philipinas (a sufficient
amount, so that the fleets [from España] do not bring it) is worked up,
and in this industry many poor persons are employed, thus obtaining
a suitable means of livelihood; and the fabrics which are made by
them are consumed in this kingdom only." With these restrictions
and precautions, the viceroy would recommend that the regulations
of 1726 continue. He would also remit the payment now made by the
citizens of 20,000 pesos annually to the treasury; but this loss,
and that in the customs duties from the lack of the Chinese silks,
would be recompensed by the better sales which would thus be afforded
to the Spanish silk goods. In January, 1732, the viceroy consulted his
fiscal, who thought that the Manila trade should be restricted, say
to a million pesos of investments, and prohibiting the Chinese silks;
that this would benefit the Spanish traders, and would also secure
the opening of Peru to trade with Nueva España. In the following
month, the viceroy called together a junta of auditors and other
experienced persons to discuss this subject; they favored Manila,
and advised that no definite action be taken as yet. The viceroy,
hearing that from Mexico and other cities more than 1,500,000 pesos in
silver was being sent to Acapulco, presumably intended for Filipinas,
felt the necessity of taking measures to prevent the despatch of too
much merchandise from Manila in the future galleons, since the five
years' term allowed to that city would expire in 1733. He therefore
referred to the junta the question whether he should write to Manila
that the galleon of 1734 must come with a cargo in accordance with
the former plan of 300,000 pesos' investment and 600,000 for returns;
and whether he should enforce the decree of 1720 by prohibiting
that galleon from carrying any Chinese silks. The junta decided both
these questions in the affirmative, advising the viceroy to notify
Manila accordingly--these regulations to be made, provided that the
king meanwhile did not give new orders. The viceroy therefore sent
despatches to Don Fernando Valdés Tamón, the governor of Filipinas,
and to the city of Manila, to that effect (March 20 and 25, 1732);
[3] and on April 3 following sent a report of all these proceedings
to Don Joseph Patiño. He recommends that Manila be allowed only 3,000
piezas in all, of which only 100 chests be permitted for the finer
grades of cotton goods, entirely prohibiting the silk goods from
China, except those mentioned in his letter of November 1 preceding;
that besides the 3,000 piezas, the citizens be allowed to send wax
and porcelain at their pleasure, as these are commodities of little
value, and needed by Nueva España; that any smuggled silks be publicly
burned, and very rigorous penalties imposed on transgressors; that
more rigorous inspection of the lading be made at Manila, to prevent
any contraband goods being sent, not only in the shipments of traders,
but in the chests of passengers, officers, and others on the galleons;
that suspected packages be opened at Acapulco; that the returns sent
back to Manila be in no case allowed to exceed a million of pesos;
and that the contribution of 20,000 pesos be remitted to the Manila
shippers.]
186-188. [The viceroy's letter was referred to the royal Council; the
deputies from Filipinas--at that time, Lorenzo de Rugama y Palacio,
and Miguel Fernandez Munilla--thereupon asked for all the documents
belonging to the Council which bore upon this subject; the Council
consented (March 26, 1733) to do so, with the reservation of certain
documents, and the deputies then drew up a long memorial protesting
against the proposed restrictions on their commerce.]
189-190. [This memorial may be "reduced to five points: In the
first it is proved that, for the preservation of the islands, and the
propagation of the Catholic faith in them and in the adjoining regions,
their commerce with Nueva España is necessary. In the second, it is
declared that for the above result it is necessary that the commerce
be carried on and allowed with a capital corresponding to the returns
of 1,200,000 pesos every year. In the third, it is made plain that
returns to that amount are impossible, if the traffic in the silken
fabrics and goods from China, and their transportation, are prohibited
to the merchants of Manila. In the fourth, it is demonstrated that no
value should be attached to the exaggerated statement that damages will
ensue to the commerce of España if that of Manila be allowed to embark
and convey silk fabrics to Acapulco. In the fifth, it is explained how
desirable is the continuation of the last regulation of the commerce,
granted to the islands in the year 1726; and the advantages which
result from that ordinance, notwithstanding the representations
made by the viceroy." This memorial presents a brief résumé of the
various royal orders and decrees and the principal events connected
with the Manila-Acapulco commerce during its history, from 1587 to
1726; another, of the investigations made by the viceroy of Mexico
regarding the galleon of 1731; and another, of the proceedings of the
junta which he called together for discussion of the measures to be
taken regarding the galleon of 1734. Then the above five points are
considered seriatim, and at considerable length--mainly by restating
and enforcing the arguments formerly employed, rather than by adducing
new ones. In section i, the king is reminded that the islands serve as
a safeguard and defense to Nueva España, and have kept the foreigners,
infidels, and pagans of the East from getting a foothold therein by way
of the Pacific coast; and it closes thus: "Thus, Sire, if this commerce
ceases--the only foundation on which rests the maintenance of these
islands--the Spaniards will abandon them; without their protection,
the [religious] ministers will be persecuted to the utmost; the works
of piety and charity in which the holy house of La Misericordia and
the other foundations in Manila distribute enormous sums will cease;
the religious orders will be reduced to uselessness; those villages
will be desolated, by which your Majesty will lose many vassals; the
foreigners and infidels adjoining those countries will make themselves
masters of the islands; and (which is most cause for grief), when
the fortunate advancement of our religion which has been secured
there ceases, those who had embraced the faith will go to seek their
living in the lands of the pagans, with evident risk of relapsing into
the errors which they had detested. These dangers are worthy of the
profound consideration of your Majesty, and cannot be averted if the
commerce of Philipinas with Nueva España fails." In section ii, the
deputies protest against the returns of 1731 being made the standard
for the regular value of this commerce, as the gains of that year's
Acapulco fair were phenomenally large. They declare that in order to
maintain themselves they need not less than 1,200,000 pesos annually,
especially as the number of citizens in Manila is now larger than in
former years--in view of which, the amount for which they ask is very
moderate, being even less in proportion than it was then. The following
statements of population are interesting: in 1636-37, the number of
Spaniards in Manila was 230; in 1702, there were 400; and in 1722,
882, a number which has since increased [this memorial being prepared
in 1733]. What Manila asks will barely allow to each inhabitant, on
the average, an investment of 800 pesos, which is hardly enough for a
decent mode of living. What encouragement does this give to Spaniards
to settle in such a country, and how can they thus better their
fortunes? The opinions of various high officials (including viceroys
of Mexico) are cited in support of this claim. Not only the Spaniards
who are citizens of Manila are to be considered in this question, but
the two millions of Christian natives who depend on the Spanish power,
not to mention the 1,500 ecclesiastics who are occupied in maintaining
the Catholic faith in the islands. In section iii, it is argued that
the people of Filipinas must be allowed the trade in Chinese silks in
order to secure any profit from their commerce. Manila claims that
the restrictions imposed by the decree of 1720 were procured by the
efforts of Cadiz, without the consent of the people of Filipinas, to
whom those restrictions brought much distress; that the Acapulco trade
was granted to them in the first place in order to attract Spaniards
as colonists, in order that intercourse with them might be the means
of entrance and extension for the Catholic faith among pagans and
infidels; that España produces hardly enough silk goods for its own
consumption, and imports much from foreign countries, so that there
is no just reason for prohibiting this trade to Filipinas. "Since
what the Sangleys chiefly trade in is the silken fabrics and ribbons,
if the shipment of these goods to Nueva España is forbidden that is
the same as prohibiting intercourse with the Sangleys, because the
consumption of the said silks and ribbons is very small, or not any,
in Philipinas." The customs duties and alcavalas on the silk trade
at Manila amount to some 40,000 pesos a year, which would be lost
to the royal treasury by the failure of that trade; it will also
have no means with which to buy the rice produced by the Indians. No
profit can be made on the linens and other common fabrics prescribed
in the decree of 1720, as they are of little esteem in Nueva España,
and the demand for them is small, as also is their value, "since in
one bale of these goods only the value of sixty or seventy pesos can be
contained." If at the Acapulco fair these goods, even when the amount
shipped is uncertain, bring prices so low that there is but little
profit over the duties, freight-charges, and other costs, it may be
imagined how unprofitable this sort of investment will be when (if
that decree be enforced) the buyers there regard the cargo as composed
mainly of these goods, "and the venders are not able to practice the
maxim of concealing the [amount of the] merchandise, in order to secure
the highest price for it, its abundance, which lowers the price, not
being known." The sayasayas and hose, the only form of silk fabrics
permitted to Manila, are productive of but little profit; and even that
would be entirely lost if they were shipped in large enough quantities
to complete the amount of investment allowed to Manila, for the prices
in Nueva España would thus be greatly lowered. Even if this were not
so, one voyage of the galleon would so fully provide the warehouses of
Mexico that no more would be needed for the next three or four years,
which would ruin Manila's market for these goods. It is impossible that
of these bulky goods any adequate quantity could be shipped within the
number of piezas at present allotted to the citizens of Manila, which,
indeed, is all that their one galleon can carry. Manila claims that the
viceroy had no right to give the order regarding the galleon of 1734,
and that both he and the junta rashly assumed that the prosperous
Acapulco fair of 1731 was the standard by which to judge the results
of that commerce--when in reality that was an accidental and unusual
success; nor did the royal officials of Acapulco propose that the
trade in Chinese silks should be prohibited to Manila, but only that
the number of 4,000 piezas allowed it should be reduced. Section
iv refutes the arguments brought forward by Andalusia against the
trade in Chinese silks as injuring Spanish trade and manufactures,
declaring them to be exaggerations and misrepresentations of the real
facts. "It has very recently been made evident by that very commerce
[of Cadiz] that the fabrics of España are not able to supply those
provinces [of America], by the fact that in the company which, with
the name of 'Philipinas,' has been established in the city of Cadiz,
by royal decree of March 29, in this present year of 1733, among
the articles and agreements which have been set down therein is one
providing that in each ship of those which (without limitation) may
be allowed to them for their traffic the silken fabrics from China
may be freighted, to the extent of fifty toneladas, a little more
or less; and, bringing those goods to these kingdoms [of España],
they may sell them therein--not for consumption here, for this is
prohibited; but that they may export those goods to foreign countries
and to America, where they may be sold and consumed. From this it
is evident, in spite of the complaints which the commerce of Cadiz
has so often repeated on this point--while the merchants of Manila
have never consented to this company, rather, always protesting and
speaking against it, and when what may be offered to them is found
by experience to be prejudicial to the preservation and maintenance
of those islands--that the silk goods which are made in España are
of so small amount that they cannot supply America, nor can those of
China injure the consumption and satisfactory disposal of the Spanish
goods." [4] Manila claims that this new company will draw from the
Spanish empire a much greater quantity of silver for the benefit of
infidels than Manila can spend in buying the goods which have been
sent thence to Acapulco; and that Cadiz has no room for complaints
against the other commerce, since its own merchants are interested
in this company--and all without the weighty motives which led to
the concession of the Philippine commerce, the propagation of the
Catholic faith, the preservation of the Spanish power in Eastern Asia,
and the advancement of the Christian religion there. The establishment
of this "Royal Company of Philipinas," in which traders of Cadiz have
shares, shows plainly that all their complaints against the injuries
to Spanish commerce from the Manila silk-trade were "merely a pretext
for their securing the slender profits which that trade yielded to
the islands." The trading-fleets and galleons which are sent out from
Cadiz every two years are laden mainly with products made by foreign
nations--English, Dutch, Genoese, Venetians, and others--and this
traffic alienates from the Spanish crown each year more than eight
millions of pesos; and even greater drain of money results from the
traffic which those foreign nations carry on in the Indias. [5] Much
more money is taken out of Nueva España by the Spanish trading-fleets,
laden mainly with articles produced by foreigners and shipped thither
by the merchants of Cadiz, than by the Manila galleon which carries
thither goods bought from the Chinese. In the former case, the money
is used to injure and harass the Spanish power; in the second, it
goes to the Chinese, who are able neither to invade Spanish territory
nor to aid the enemies of the crown. These foreign trading nations,
moreover, carry to China and other countries of Eastern Asia more
than four millions of pesos of Mexican and Peruvian coinage, which
they spend there for the purchase of silks and other commodities,
"in order to introduce these goods into the Indias, either illicitly
or through the agency of the traders of Cadiz." In the junta convened
by the viceroy of Mexico in February, 1732, one of the leading
arguments for continuing the increased permission to Manila was,
"that the returns of silver produced by the fabrics of foreign
manufacture which the aforesaid [traders of Cadiz] send in fleets
and galleons to the Indias were in tens of millions, which from
the ports of España pass to foreign dominions, and from these to
the infidels of the Orient." The aforesaid Company of Philipinas
has obtained permission that in each ship sent out by its members
(the number of vessels not being limited) they may convey, besides
the goods, the amount of 500 pesos fuertes in silver money--more
or less, according to the needs of their business--to be invested
in Oriental goods, with freedom to change for gold any surplus that
may be left of that capital. [6] This permission leads to the drain
of much silver from the country, opens the door for great frauds,
and is manifestly unfair to Manila if the latter is to be deprived
of its China trade. As for the ruin of the silk industry in España,
"the city of Sevilla itself openly confessed (in a memorial dated
April 24, 1696) that the ruin of its looms and the deterioration of
its commerce arose from the single cause of the manufactures which the
French, English, and Dutch had, since the middle of the past century,
introduced into their dominions, and from the lack of assiduous
industry in the natives of these [kingdoms of España]; and that for
this reason those peoples carried to their own countries our wools,
in order to return them in the shape of cloths and other goods,
which their industry was able to manufacture from those wools. The
same thing occurs with the silks which (as we are experiencing)
they are introducing into these kingdoms, [made] from the [raw] silk
which they obtain here; and they sell in the Orient various stuffs
and fabrics, with which usually the people of rank in these kingdoms
are clothed; and such people in the Indias wear the goods which the
merchants of España convey in fleets and galleons--as may be known
by the books of the customs duties, in which appears all the above,
and the increased amount of silken fabrics which the foreigners are
introducing through the port of Cadiz, and others that open on the
Mediterranean Sea." Cadiz is reminded that its commerce penetrates into
Peru, Buenos Ayres, Honduras, and other regions which are forbidden
to Manila; that it has no more successful fairs in Peru than in Nueva
España (indeed, obtaining even larger profits in the latter country);
notwithstanding the alleged ruinous competition of Manila; and that
the contraband trade carried on in the Western Indias by the foreign
industrial nations causes far more damage to Cadiz than does the small
amount of trade allowed to Manila. Cadiz has made no complaint against
the shipment by Manila of stuffs from India and spices, doubtless
because the prohibition of these would injure the trade of the English
[7] and the Dutch, from whom Manila buys those goods, and whom Cadiz
favors and tries to enrich at the expense of the Philippine vassals of
the crown, regardless of the injurious effects of such procedure on the
propagation of the faith and the welfare of the former heathen who have
been converted to it in the East. Manila asserts that the necessity
of buying Chinese goods for the maintenance of the islands, and the
increasing competition of the European nations in Eastern markets,
have so raised the prices of those goods that Manila no longer can
obtain the large profits which they formerly brought in Nueva España,
but must now sell them at a very moderate advance over their cost
(including of course therein transportation, duties, etc.). The prompt
despatch of the Manila galleon from Acapulco has been caused mainly by
the necessity of its sailing at certain times to secure favorable winds
and weather; but this haste has been an injury to the Manila shippers,
"for it hinders them from selling their goods at a higher value, so
they often dispose of them, for this reason, at the prices that the
Mexicans are willing to pay for them, and at other times leave them
for sale on commission [en encomienda], with the danger of losing them,
and with the evident arrearage which is caused to the shippers by the
lack of the money [which should have been received] from their sale,
for use in their investments in the following galleon." The memorial
concludes with section v, in which Manila urges, in view of all the
foregoing, that the permission of 1726 be continued to the islands,
and consequently, that the recent orders of the viceroy of Nueva
España regarding the lading of the next galleon be revoked. These
orders were at least premature, as the shipments from Manila under the
new permission did not begin until 1730, so that the galleon of 1734
was entitled to a cargo of the sort allowed therein; moreover, the
viceroy acted against the advice of the junta which he had convened
to discuss this question. Manila claims that in 1732 the galleon
did not carry back to the islands even what they needed for their
maintenance, the returns from its cargo (although that contained the
4,000 piezas of permission) amounting to only 1,100,000 pesos; and in
the present year of 1733 the returns will be hardly one-half of what
the shippers received, on the average, in the years preceding the new
permission--the Acapulco fair being a poor one this year, on account
of the large cargoes brought by the fleet from Cadiz, and the large
amount of fabrics brought by "the English ship." Manila needs 1,200,000
pesos annually, at the least; and in order to secure that amount needs
the extension of trade permitted in 1726. The returns of 1731, as has
been proved, cannot be taken as the measure of its value, especially
when allowance is made for the possibility of storms, shipwreck, or
other disaster to the galleon. Manila also asks that if the returns
should fall below 1,200,000 pesos, its annual contribution of 20,000
pesos to the royal treasury be dispensed with. The king is reminded of
the great services which the people of Filipinas have always rendered
to the crown, in opposing the encroachments of the Dutch and others
against the Spanish power in the East, in defending the natives of the
islands against the Moro pirates, in contributions for building royal
ships and for meeting other pressing needs of the royal treasury,
and always freely offering their lives and their property for the
defense or aid of the crown--to say nothing of their devotion to
the observance and extension of the Catholic faith, their support
of missionaries, and their zeal in converting the heathen. Manila
asks for the extension in perpetuity of the permission of 1726, with
various minor concessions; if this be not granted, then it is asked
for another five years, with the proviso that no change be made at
the instance of Andalusia only, or without opportunity being given
to Manila to express its wishes and set forth its needs.]
191-192. [This memorial was sent by the Council to the fiscal;
his reply was handed in on November 10, 1733. He thinks that the
islands need indispensably the traffic to Nueva España, including the
Chinese silks, notwithstanding the remonstrances of the viceroy of
that country; and that the prohibition made by the latter ought to be
raised. Moreover, he finds that the royal treasury is the gainer by
the new arrangement: the duties up to 1702 amounted to 74,000 pesos,
and from that time to 1729, to 100,000 pesos; but in 1730 (the first
year in which goods were shipped under the permission of 1726) the
duties, including the 20,000 pesos of contribution, were 202,754 pesos,
and in the following year 229,552 pesos. He would not make a positive
regulation regarding the Manila-Acapulco trade until the five-years'
term is completed; but he makes the following recommendations: that
the commerce be free in all kinds of goods, not excluding the Chinese
silks and ribbons, but that the lading of the galleon be restricted
to 3,600 piezas, of which 400 may be in those silk goods and others
which do not allow the use of the press; and that the duties on all
packages be the same as those specified in the decree of 1726, and
that Manila be freed from the contribution of 20,000 pesos. He also
recommends that Manila be allowed to send wax in cakes of eighteen
(instead of twelve) arrobas net; and that his proposed arrangement be
put in force for five years, in order to test its practicability--or,
if the king so prefer, that the decree of 1726 be extended for another
term of five years.]
193-197. [In this place is presented the informatory report of the
royal accountant at Mexico to the viceroy in 1730, because it is
frequently cited in this controversy; but it is concerned mainly
with the size of the packages on the Manila galleon. [8] It appears
that these were measured by the vara de Ribera, [9] instead of the
Castilian vara, the former being "longer than the Castilian, by four
dedos and part of another;" but allowance was afterward made for this
difference. Ardila, the accountant, also recommended to the viceroy
the enlargement of Manila's permission to 1,200,000 pesos of returns,
and the reopening of the commerce between Nueva España and Peru. The
royal Council discussed the fiscal's reply and other documents, and
advised the king (December 19, 1733) to order the viceroy to recall
his obnoxious orders relative to the galleons of 1734 and succeeding
years, and to regulate the cargoes by the decrees in force from 1712 to
1720--"excluding absolutely the regulation of the permission by piezas,
and commanding that this be made in future strictly by invoices and
sworn declarations." The ministers did not agree on the question of
the amount of returns to be permitted to Manila, five being of opinion
that no change should be made in the allowance of 300,000 pesos of
investment and 600,000 of returns, and the five others advocating an
increase to 500,000 and 1,000,000 pesos respectively. (The names of
the first five are: Don Manuel de Sylva, the Marqués de Almodobar, Don
Antonio de Sopeña, Don Fernando Verdes Montenegro, and Don Francisco
Antonio de Aguirre; of the last five, Don Diego de Zuñiga, the Marqués
de Montemayor, Don Matheo Ibañez de Mendoza, Don Antonio Alvarez de
Abreu, and Don Joseph de Valdiviesso. Abreu was the compiler of the
Extracto.) The reasons for each of these opinions are given in detail.]
198-200. [When this opinion was ready to be sent to the king, letters
arrived from the governor and Audiencia of Filipinas, remonstrating
against the orders of the viceroy regarding the galleon of 1734. At the
same time, the Manila deputies at Madrid presented another memorial
to the Council, which accordingly held a new conference over this
matter. On December 23 (after having consulted the fiscal), they
reported to the king their opinion, which they said had not been
changed by the aforesaid despatches. The king approved of their
advice in regard to recalling the viceroy's orders, and in regard
to the controverted point of the amount which should be allowed to
Manila, he approved the opinion of Zuñiga and his associates, that
of the increase to 500,000 and 1,000,000 pesos. The letters from the
governor and Audiencia ask that the cargoes be estimated by piezas,
and propose 300 or 400 chests of Chinese silk goods, instead of the
500 formerly asked; the memorial of the deputies urges that the sales
for the first three of the five years had averaged only 1,350,000
pesos, and the succeeding ones could not exceed 1,200,000 pesos,
which latter sum was necessary for the preservation of the islands.]
201-212. [On February 23, 1734, the Manila deputies presented a new
memorial, under eight heads, making various minor requests in regard
to the new regulation for the commerce, some of which were granted,
and some refused. On April 8, a royal decree was issued making such
regulation; [10] after briefly reviewing the various proceedings and
documents which had appeared since the decree of 1726, command is
given that the viceroy's orders be revoked, and the commerce continued
in accordance with the decrees of 1702, 1712, and 1724--prohibiting
the valuation on the basis of piezas, and prescribing that this be
accomplished by invoices and sworn declarations; and increasing
the amount of the trade permitted to Manila to 500,000 pesos of
investment and 1,000,000 of returns. As for duties, they shall be paid
as commanded in the decree of 1702 (which fixed 100,000 pesos as the
amount to be paid at Acapulco for the round trip of the galleon),
pro rata therewith on the increase from 300,000 to 500,000 pesos;
but this shall be paid as required duties, and not under the name
of indult. No alcavala shall be paid on sales at Acapulco, but it
shall be paid on goods which shall first be sent to other provinces
of Nueva España. The duties are estimated on the basis of about 17
per cent of the returns on the cargo, and as the king pays "the cost
of the building, careening, and repairing of the ships, the pay of
the crews and officers, and the provisions, supplies, and ammunition
needed for each voyage, without receiving more than 44 ducados for
each tonelada of the lading allotted, not only will there remain no
profit to my royal exchequer, but it will be necessary that it supply
a considerable amount in order to maintain and preserve this traffic
and commerce to the natives of Philipinas, which is all the bounty that
my royal munificence can exercise;" but if the Manila shippers do not
wish to accept this adjustment of the duties, they can (as before)
pay the exact amount of the duties on each consignment of goods,
without any dispensation or remission. No one to whom space has been
assigned may transfer it to others, save in the case of poor persons
and widows. Any excess of returns over the 1,000,000 pesos shall be
divided among the shippers pro rata on their allotments of space and
valuations of goods at Manila, and they may carry it back in products
and commodities of Nueva España, but not in money; if the returns
fall short of the above sum, the deficiency shall not be made up,
the royal officials being strictly forbidden to allow any infraction
of this rule. Citizens of Nueva España are prohibited under heavy
penalties from participating in this trade as shippers, of either
goods or money. The measures used in regulating the size of packages
shall be those which the Manila shippers have been accustomed to use,
allowance having been made for the difference between these and the
Castilian standards, as decreed in 1702 and 1733. The committee of
distribution at Manila shall be composed of the following persons:
the governor of the islands; the senior auditor of the Audiencia,
or, as his substitute, the auditor next longest in service; the
royal fiscal; the archbishop of Manila, or, as his substitute, the
dean of the cathedral; one of the alcaldes-in-ordinary, and one of
the regidors, of the city of Manila; and one of the eight arbitrators
[compromissarios] who compose the commercial body [11] there--provided
that the regidor and the arbitrator be chosen in turn, so that this
duty shall fall, successively, on all the members of those respective
bodies. Despatches to this effect were sent to the officials of Mexico,
Acapulco and Filipinas. (The compiler of the Extracto thinks it worth
while to call attention to the opinion of the royal fiscal of Mexico,
given upon reading this decree, that it was "a just one, and generally
advantageous to both commerces.")]
[At this point (fol. 214 verso-264) is inserted the Memorial
informatorio presented to the Council of the Indias in 1637 by Juan
Grau y Monfalcón, procurator-general for the Philippine Islands at
the court of Madrid; we have already published this document, in our
VOL. XXVII, pp. 53-212. Abreu says that he places it here (as "an
appendix to Period ii") simply because he did not find it until after
the fortieth sheet of the Extracto had been printed; and he speaks
of it as "treating of the subjects of that undiscovered memorial"
of 136 numbers which was cited in "Period ii" of the Extracto (see
our VOL. XXX, p. 25)--"plainly showing that whatever discussion of
this matter has occurred in these late years, and what will be said
in the future, in regard to the commerce of that region is new talk,
but not talk of a new thing [es decir con novedad, pero no decir
cosa nueva]." For "Periods i and ii" of the Extracto, which, with
Monfalcón's memorial, should be read as a preliminary to the present
summary of that work, see our VOL. XXX, pp. 23-109. Cf. the earlier
memorial by Monfalcón (1635) in VOL. XXV, pp. 48-73.]