Centuries before Spanish discovery the Filipinos were in regular
intercourse with the neighboring countries of China, Japan, Borneo,
and others. In the work of Chao Ju-kua, a Chinese geographer of
the thirteenth century, there is a chapter on Philippine trade,
from which we learn that the "foreign traders import porcelain,
commercial gold, iron vases for perfumes, leaden objects, glass,
pearls of all colors, iron needles," [76] black damask, and other silk
fabrics, fish nets, and tin, and also silk umbrellas, and a kind of
basket woven from rattan. In exchange, the Filipinos exported cotton
(perhaps the "kapok" or tree cotton), yellow wax, strange cloth
(foreign cloth: sinamay, a light fabric made from abacá,--and other
textiles of the country.--Blumentritt's note), coconuts, onions,
(camotes?--Blumentritt's note), and fine mats; also pearls, shells
(i. e., tortoise-shell.--Blumentritt's note), betelnuts, and jute
(yuta) textiles. (Yu-ta seems to be the abacá.--Blumentritt's
note). [77]
Domestic trade.
The first Spaniards who came to the Philippines observed a lively
commercial intercourse, not only among the peoples of the different
islands, but also with the near-by countries. [78] The chief method
of exchange was by means of barter, [79] though oftentimes gold dust
was used.
With the coming of the Spaniards, domestic trade was upset. First
of all, restrictions were imposed upon trade; communication between
the villages was restrained. [80] Though later ordinances allowed
freedom of commerce between villages and provinces, [81] the spirit
of restriction predominated until modern times. [82]
Then, the government officials, though in many decrees and ordinances
prohibited to engage in trade, [83] used their position as a means
of gaining profits in trade. [84] This evil prevailed till later
days. [85] However, as seen by Dr. Tavera, trading by the officials
was not without its good effect. [86]
Trade relations with oriental countries.
The coming of the Spaniards opened a new market to the products of
the Orient, and Manila soon became the great distributing center of
the East. [87] "The merchants and business men form the bulk of the
residents of the islands, because of the great amount of merchandise
brought there--outside of native products--from China, Japan, Maluco,
Malacca, Siam, Cambojia, Borneo, and other districts." [88]
From China, from thirty to forty ships sailed every year usually
in March, and reached Manila in fifteen or twenty days; here the
traders sold their goods, and, with the exception of some of the
larger dealers, returned towards the end of May or during the first
days of June, in order to avoid the stormy season. Morga gives a
detailed list of the goods imported from China. [89]
The merchandise brought by the Chinese were unloaded into champans
(bancas), and taken to the Parian (Chinese quarter), or to other houses
and magazines outside of the city, and there freely sold. No Spaniard,
Sangley (Chinese trader), or any other person was allowed to go to the
ship to buy or trade merchandise, food, or anything else. The purchase
price was paid in silver and reals, for the Sangleys did not want gold,
or any other articles, and would not take other things to China.
From Nagasaki, Japan, came Japanese and Portuguese merchants, who
brought excellent wheat-flour and highly prized salt meats. [90]
The bulk of the merchandise was used in the country. Returning to
Japan, during the months of June and July, they carried with them
raw Chinese silk, gold, deerskin, and brazil-wood for their dyes;
also honey, manufactured wax, palm and Castilian wine, civet-cats,
large tibors in which to store their tea, glass, cloth, and other
curiosities from Spain.
From the Moluccas, Malacca, and India, the Portuguese imported many
articles, [91] and in return took with them to the Moluccas rice,
wine, crockery-ware, and other wares needed there; to Malacca, gold
and money, besides a few special trinkets and curiosities from Spain,
and emeralds.
Smaller vessels belonging to natives of Borneo also came to Manila,
bringing well-made palm-mats, a few slaves, sago, and tibors; large
and small jars, and excellent camphor; these articles were bought
more by the Filipinos than by the Spaniards. The Borneans took with
them wine and rice, cotton cloth, and other wares of the Philippines.
"Very seldom a few vessels came from Siam and Camboja, carrying
'benzoin, ivory, and cotton cloth; rubies and sapphires, badly cut
and set; a few slaves; rhinoceros horns, and the hides, hoofs, and
teeth of this animal; and other goods.'" [92]
It was the goods that were imported into Manila by the Oriental
traders, especially the Chinese, that formed the bulk of the
commerce between the Philippines and New Spain. The only products
of Philippine industry dealt with in the so-called galleon trade
were gold, cotton cloth, mendriñaque, and cakes of white and yellow
wax. [93] By buying from the Oriental traders their merchandise, and
sending them to Mexico, the Spaniards in the Philippines made fabulous
profits. It is due to this trade that those engaged in it amassed
great wealth in a short time, and Manila became a great distributing
center of the East. [94] The prosperity of Manila during the first
years after the conquest is attributed to the fact that commerce was
then unrestrained. [95] To the same cause was due the settlement of
many Chinese and Japanese and other Orientals in the country. [96]
To say, however, that the later restrictions upon commerce killed
off all prosperity, would not be justified. [97]