What were the effects of the Manila-Acapulco trade upon the economic
growth of the Philippines? There are two answers to this question. On
the one hand, those who believe that the policy of restriction was
necessary in order to protect the industries of Spain, of course,
say that such policy was beneficial. Furthermore, it is alleged
that no other economic activity could have been possible during the
early part of Spanish domination because, at the time, there were
no products of the country which would serve as the basis of a rich
and flourishing commerce; there was no capital sufficient to exploit
the natural resources of the Philippines. And to show that Manila
was benefited by acting as a distributing point of Oriental goods,
the prosperity of Singapore and Hongkong is cited; what prosperity
would these cities enjoy if it were not for the fact that they act
as entrepots of the East? [125] The very retention of the Philippines
depended upon its ability to support itself in part, and the profits
from the trade as a whole made that possible.
On the other hand, the galleon trade absorbed too much of the attention
of the Spaniards, [126] and caused the neglect of Philippine extractive
industries, especially agriculture. [127] It attracted the Spaniards
into Manila, and, thus, left the rest of the country without the
benefit of whatever good they could have done; and in Cebu, the point
was reached when, at one time, there was not a sufficient number of
persons to fill the offices of alcalde and regidores, and it was
necessary to assign to the city a few boletas from Manila. [128]
Lastly, it enriched only the few, [129] and the resulting economic
depression checked the growth of population. [130]
Not everything, however, is to be attributed to the influence of the
galleon trade; a good deal of the neglect of the country's natural
resources was due to Spanish dislike of industrial activity. Azcarraga
explains that characteristic by saying that the eight centuries
of continuous struggle to drive out the Moors from Spain created a
chivalrous spirit and a love of risky undertakings; the discovery of
the New World furnished a wide sphere of action to that adventurous
spirit, and the resulting emigration to the newly discovered lands
depopulated the Peninsula to such an extent that labor could be
had neither for the factories nor for agriculture. "The current of
precious metals flowing into Spain from the mines of Mexico and Perú
fascinated the Spaniards; created easy-going and indolent habits;
held them off the mechanical arts, formerly called servile, and all
desired to gird the word and enjoy the spoils of conquest." [131]
This was the real cause of the decadence of Spanish industries, and
not, as alleged by the monopolists of Spain, the competition of the
Manila-Acapulco trade. With such causes operating to check development,
it is no wonder that Philippine industries were in a primitive state
down to the last years of Spanish domination.