TRADE IN THE PHILIPPINES.
The Spanish galleons which used to sail the Pacific Ocean between Manila
and Mexico have been the subject of many a romance. The world never
tires of reading the stories written about them. They seem to belong to
the age of romance and poetry. The galleons come, however, pretty close
to modern times. The last one left Manila for Mexico in 1811, and the
last one for Manila sailed from Acapulco in 1815.
These ships were in shape something like a half-moon. They were very
high at bow and stern, short from fore to aft, and very wide. They were
of about 1,500 tons burden, with light draught. They usually had four
decks, and always carried big guns.
The galleons were the Spanish mail ships, and the only carriers for
trade between the islands and Mexico. This trade with Mexico was the
colony’s only source of income. The local government had no money of its
own. It could not act independently; all that it brought in tribute and
taxes to the royal treasury belonged to the Crown, to be disposed of at
the king’s will.
Not only were the islands governed through Mexico, but all their trade
was with that country. So severe were the laws that restricted their
trade, that the people were not allowed to go even to China and Japan to
buy goods. They might buy only such goods as Chinese and Japanese
traders brought to Manila.
Once a year, usually in July, a galleon left Manila laden with goods
from the islands. These were sold in Mexico, and the money which they
brought, or an equal value in Mexican goods, was sent back on the return
galleon. We have seen how great were the risks which these ships ran in
making their voyages. The enemies of Spain often captured them, while
some were lost at sea and never again heard from. It was not all
romance, the life of those who sailed and manned the galleons. Often
there was greed and cruelty to contend with, rather than poetry and
story to be lived. Always there was danger, and it was not the spirit of
adventure, but the desire for gain that sent these men to sea.
The many risks which the galleons ran made shipping ventures uncertain.
Nor was this the greatest ill which the Manila merchants had to bear.
The merchants of Spain were always jealous of them, for they were afraid
that the island trade with China and with Mexico would hurt their own
business. So they were always clamoring for laws that should keep Manila
merchants from dealing with those countries.
By the beginning of the eighteenth century very harsh laws had been made
governing all shipments. Goods might be shipped only in bales of a
certain size and weight, and only a limited number of bales might be
sent by each galleon. Nor did the restrictions end here. There were some
goods in which Manila merchants might not deal at all. They could ship
no woven stuffs save the finest linen. If the goods sent to Mexico by
the Philippine Government brought more than a certain amount in Mexico,
the full sum could not be sent back in money. The islands must take the
surplus in Mexican goods.
[Illustration:
THE ARRIVAL OF A SPANISH GALLEON.
]
So business suffered, and each year the country grew poorer. At the same
time the men who ruled the country grew very rich. One acting
governor-general, in less than two years of service, got together a
fortune of $250,000. There were other officials, as well, who managed to
take home with them to Spain sums nearly as large.
All this, of course, worked hardship in the islands. Money was very
scarce. Merchants became bankrupt and had to go out of business. Often
the government itself had no money with which to pay for public work.
The army, too, suffered. The soldiers had no barracks, but lived as they
could, and wherever they found shelter. Often there were long periods
when no rations were issued to them, and they begged their food from
house to house. When their demands were not granted, they would take by
force what they wished, and this led to great evil.
A large army was needed to control the people and to enforce payment of
tribute. This tribute was collected from the natives for the support of
the government. Those who had not yet been baptized were taxed only a
small sum; those who belonged to the Church paid more.
Few, however, paid in money. Nearly all paid in kind—in goods which they
made, or produce which they raised from the land. All tribute in goods
was kept in the royal storehouses until the galleon was about to sail.
Then the goods were sent to Mexico, to be sold. Sometimes, however, some
of these goods were traded for merchandise brought to the islands by
Chinese dealers.
A certain per cent. of the price which the shipments brought in Mexico
was sent back to Manila to pay government expenses. Usually, however,
this fixed percentage was not sufficient to meet these expenses. It was
needful, then, to increase it by a further sum from the royal treasury.
This additional sum was called the “Real Situado” (rā´äl sē tö´ä dō).
One galleon a year was not enough to meet the needs of merchants who
wished to ship goods to Mexico. In 1724, therefore, a royal decree was
made public that thereafter two galleons of 500 tons each would be sent.
This decree, however, limited the number of merchants who might ship
goods, and the amount which each might send. It also fixed the amount in
cash that might be taken in payment. All values over this amount must be
taken in Mexican goods.
A few years later this decree was revoked. Only one galleon a year was
to be sent, and new and more severe restrictions were put upon all
shipments. It became more and more difficult, as time went on, for the
merchants of Manila to carry on trade.
During the eighteenth century no foreign merchants were allowed to do
business in Manila. Spain, in fact, did all that she could to kill trade
and industry in the islands. At the same time she compelled those who
ruled the country to enforce payment of the last penny’s value of
tribute that could be drained from the country.
The governor-general at this time (1754–1759) was Pedro de Arandia (dā ä
rän´dē ä). He was one of the most able and enterprising officials the
islands had thus far had. He tried to make a good many reforms in the
country, and to build up its commerce. He is said to have died of worry
and regret that he could not rule the land as he thought right, and at
the same time be at peace with those about him who were also in
authority.
[Illustration:
THE SANTA LUCIA GATE, MANILA.
]
Arandia showed himself to be something of a statesman. He made reforms
in the army, and tried to bring the wild tribes to acknowledge Spain’s
rights in the islands. At the same time he did many dishonest things. He
made a great fortune for himself while in office. Perhaps he was sorry
for his dishonesty afterwards, for when he died he left his fortune to
religious institutions. In those days men saw no wrong or absurdity in
devoting ill-gotten wealth to carrying on good works.
It was Arandia who formed the first real military body in the country.
This was a regiment made up of five companies of Filipino soldiers and
four companies of Europeans. The latter Arandia had brought with him
from Mexico. He called the whole corps the “King’s Regiment,” and took
great pride in it. As troops came in from the provinces they were added
to the regiment, until at last it numbered about 2,000 soldiers in two
battalions of ten companies each. In October of 1754 the soldiers, for
the first time in the history of the islands, were quartered in
barracks. They were also, both officers and men, paid regularly every
two weeks.
In 1755 the Chinese question came up again. This time it was decided to
send home all those Chinese who would not be baptized. They were given a
few months to wind up their business, and a day was set when they should
leave the islands. All who accepted baptism were allowed to remain, and
a good many did this. Over 2,000, however, were sent out of the country
on June 30, 1755.
Need now arose for shops and for small traders to carry on business in
place of these Chinese. To supply this need a trading company of Spanish
and half-Spanish was formed in Manila. This trading company was in
existence for some years, but was never very successful. It could not
buy on as good terms as the Chinese had been able to make, nor could it
sell to such good advantage. It received a great deal of aid from the
government, but finally made a bad failure and went out of business.
The ruling which sent the Chinese out of the islands worked other harm
to the business of the country. Not only were there none to do the work
which the Chinese had done, but their going was a direct money loss to
the government. The Chinese had been heavily taxed, and when they were
sent away a shortage of $30,000 in the tax receipts followed as a direct
result. This made money so scarce in Manila that a petition was sent to
Spain asking for a reduction of the royal dues. These royal dues were
the amount which the colony had each year to raise for the king, and the
government was now scarcely able to collect it from the people.
But Spain was in great need of money. Wars with other nations had almost
emptied her treasury, and the petition for reduction was refused. A
decree was passed, however, which made things a little easier for the
merchants. The islands must pay the full amount of the royal dues, but
merchants might send by the galleon more goods and goods of a finer
quality than before. They might also bring back more Mexican goods. In
this way they could make more money, and thus the country was better
able to raise the sums demanded.
_Summary._—The only trading ships that carried shipments of goods from
Manila were the Spanish galleons. The entire trade of the islands was
with Mexico, and was restricted by very severe laws. A galleon sailed
but once a year, and the amount of goods which could be sent by her
was limited by law. The great risks which the galleons ran made
shipments uncertain of return, and business was at a disadvantage. In
1724 a decree was made public allowing two galleons a year, of 500
tons each, to be sent. The number of merchants who could ship goods
was now limited, and the amount that each could send. Later this
decree was revoked. Only one galleon could be sent, and more severe
restrictions were put upon shipments. No foreign merchants were
allowed to do business in Manila. In 1754 Pedro de Arandia became
governor-general. He made many improvements in the army, and tried to
build up trade. He formed the first real military body in the islands,
and called it the “King’s Regiment.” In 1755 a law was made that all
Chinese who refused baptism should be sent out of the country on June
30. Over 2,000 were sent away on that day. This made a dearth of
traders, and a trading company of Spanish and half-Spanish was formed.
It was never a success, however. The departure of these Chinese cost
the country a loss of $30,000 in taxes that year. This made times so
hard that the colony prayed the king for a reduction in the royal
dues. Their petition was refused, but some of the restrictions in
regard to shipments by the galleon were made lighter. Merchants could
ship more and better goods. This made matters easier, and the country
could better meet the demands of the Crown.
_Questions._—What were the Spanish galleons? How often did they sail?
When did the last one leave Manila for Mexico? Why were such severe
restrictions put upon the trade of the islands? What were some of
these restrictions? What improvements did Governor-General Arandia
make in the army? Give an account of the decree expelling the Chinese
from the islands. What effect followed the departure of the Chinese?
[Illustration]