The royal decree of August 25, 1818, by which it was decided that
the exaction of import and export duties should be made in the Manila
custom-house from the owners of the vessels, without considering the
ownership of their lading, and that if the vessel were Spanish it
should pay three per cent, and if foreign six per cent, has been a
special favor or privilege granted to half a dozen Spanish ship-owners
(for those who conduct the commerce with China and Bengala cannot be
more than that number), with serious loss to the exchequer. This is,
of course, annually deprived of the considerable income of the three
per cent rebate on all foreign goods imported into Manila, which is
a direct benefit to the foreigners who own nearly all the commerce
in those goods. The manufacturers of Filipinas, especially those of
cotton fabrics--which are able to compete with, and even exceed in
cheapness, those of China, since the cotton of which these are made
is of their own raising--are being ruined, because that rebate of
duties brings the prices of the Chinese goods so near to those of
their infant industry that the former ought always to be preferred;
and, finally, the above arrangement has also given opportunity for
various frauds proceeding from the pretended sale of foreign vessels
to Spaniards, solely for the purpose of availing themselves of the
rebate of duties on their cargoes, and to the possession (under
assumed names) by Chinese settled in Manila of Spanish vessels.
[Bernaldez states the considerations which should regulate these
duties, and the following recommendations for the payment of duties on
various classes of merchandise, this amount to cover in each case the
entire exaction: On national goods in transit, carried to Manila--on a
Spanish vessel, three per cent; on a foreign ship, six per cent. The
same goods for consumption in the country shall pay nine and ten per
cent respectively. On foreign goods from India and China, for domestic
consumption, ten and fifteen per cent respectively; from this class
should be excepted the wines, brandies, pig iron, small articles of
cast iron, dry beans, and foreign paper, which should pay twenty and
twenty-five per cent respectively. Goods, whether national or foreign,
not declared as in transit at leaving Manila shall pay two and four per
cent respectively; but those registered on a Spanish ship from India,
China, and all Asia for España, ten per cent. Coined silver and gold,
and silver bullion, shall pay no entrance duty at Manila, but on
leaving that port shall pay three and six per cent respectively;
and foreign gold in bullion shall pay eight per cent at entering
Manila (whether on Spanish or foreign vessels). National products,
and those of the industries of Filipinas, shall pay when exported
eight per cent on a foreign vessel, but nothing on a Spanish ship. The
duty of the merchant's peso [peso marchante] which the municipality
of Manila collects should be abolished as obstructive to commerce;
for the legal origin of this imposition is unknown, and it is very
unsuitable for a municipality which is rich through its rents,
revenues, and imposts. Bernaldez believes that this tariff would
promote agriculture, industry, and navigation, and benefit the royal
treasury. More coin would be brought into the islands, the plan of
exempting it from duties having been adopted for that purpose by
all the other governments of Asia. The burden of these duties will
fall mainly on the rich class, and not on the Indians. The "infant
industries" [fabricas nacientes] will be protected, and the Spanish
merchant marine will be given the advantage over the foreigners.]