[The Chinese were at first allowed in Filipinas only to cultivate
the soil and work in handicrafts; but they have drawn into their
possession the control of trade and commerce, "winning the good-will
of the government and the tolerance of the inhabitants of Manila
with a thousand intrigues unknown in the country. They have done in
Filipinas what the Europeans ought to have done, that is, to acquire
wealth and send it, or themselves go with it, to their own country to
establish commercial houses;" and thus they have added a marvelous
amount to the wealth of China. Their method of doing business is
explained--practically the same as is done in the United States at
the present time; united capital and effort, division of the gains
accordingly, quick sales and small profits, etc. They have obtained the
exclusive retail trade in Manila, and a great part of the wholesale
trade, "and thereby have aroused the hostility of corporations and
private persons, notwithstanding that they are a class of peaceable and
industrious people in the country." Bernaldez thinks that their tax of
six pesos a year is much too small, considering the advantages which
they enjoy and the large fortunes which they acquire in the islands;
in Batavia the Chinese pay the government as much as thirty pesos a
month for merely the permission to trade. The tax on them at Manila is
farmed out to a Chinaman, and does not yield as much as it should. The
following recommendations are made:] That measures be immediately taken
to correct and render accurate the registration of the Chinese settled
in Filipinas. That the individuals of that nation be divided into three
classes: first, wholesale merchants, understanding by that term all
those who embark for China and receive thence goods on commission or
for their own account; second, retail merchants, or shopkeepers; third,
artisans of every class. That these be distributed by groups under
head-men [por cabecerias], which shall not exceed sixty individuals to
each one. That every Chinaman, as soon as he is registered, shall be
joined to one of these groups, the head-man becoming responsible for
him. That these Chinese heads of barangay must give security for the
tribute from those under them, and collect the tax and deliver it to
the alcalde-mayor of their respective province, being responsible in
every case for the residence and occupation of their tribute-payers;
and for this commission collecting the three per cent. That in future
the tax on the Chinese already settled and those who shall settle
in Filipinas shall be as follows: the wholesale merchant, ten pesos
fuertes a month; the retail merchant, four pesos ditto; the artisan of
every class, two pesos ditto. That every Chinaman settled there shall
be free to return to his own country, provided he is not married,
the limit of six months being allowed for this. That the Chinaman,
of whatever class, who shall not pay his respective tax within one
year shall be sent and delivered up to one of the ranch-owners for
compulsory labor [por repartimiento], in order that there he may work
at the day-wages agreed upon, which must not fall below two reals a
day and food-rations of rice; and that the ranchman shall with these
wages pay the tax [due], at the rate of two pesos a month.
[Among the advantages derived from this arrangement will be that
of sending out of the islands the many poor and useless Chinese who
have been gradually multiplying there, and have been infecting the
natives with their vices. It will even benefit the Chinese themselves,
"who with two reals a day, which make 7 1/2 dollars a month clear"
(thus showing that Sunday labor was exacted), "can pay two pesos of
tax and be exceedingly prosperous."] [149]