Number 52. Sixth division: of the defense of Maluco

The sixth is for the war and defense of Maluco. The castellan and governor of the forts of Terrenate receives 2,750 pesos; two adjutants of the sargento-mayor, each 825. There are seven companies of infantry with 570 soldiers. The captains receive each 600 pesos; each alfrez, 240; each sergeant, 120; each corporal, 30 pesos in addition to the regular soldier's pay; and the others as in Manila. Each company gets 30 escudos in addition to the regular pay. They were ordered to spend [the money for] four substitutes that they had, each of 440 pesos, and that pay was also given as additional pay. Thus each of these companies causes an expense of 9,809 pesos. In addition there are two Pampango infantry companies, with 200 soldiers. Each captain gets 288 pesos; each alfrez, 192; each sergeant, 144; and each infantryman, 72. The two companies cost 13,312 pesos. There is one surgeon who receives 664 pesos; one artillery captain, 480; one constable, 300; one field captain, 330; one war notary, 200; one accountant and factor, 1,150; one chief clerk, 400; another minor clerk, 150; one notary of the royal treasury, 250; one [book]keeper and paymaster, 523; twenty sailors, 150 [pesos] and one ganta of rice apiece; one cura, 50,000 maravedis; one sacristan, 25,000 maravedis; and seven religious, four of St. Francis and three of the Society, to whom are given 1,330 pesos. Consequently, [the expense of] this department amounts to a total of 97,128 pesos, three reals.



Number 53. Seventh division: the navy and marine works

The seventh is that of the navy and what pertains to marine works. There are six galleys, used as a guard for the islands. They have one commander-in-chief, who receives 800 pesos; one lieutenant, 600; six captains, two of whom live in Manila, two in the island of Hermosa, each 422 pesos, and two in Terrenate, each 699 and one-half pesos; one accountant, 400; one chaplain [captain—MS.], 200. Each galley has one leader, who receives 170 pesos; one master, 300; one boatswain, [46] 250; one boatswain's mate, 217 and one-half; one alguail, 230; one oarmaker, 230; three sailors, each 133. In all [six galleys] there are 1,080 convicts who receive 27 pesos and two reals, and three pesos in clothing. These six galleys cost 45,026 pesos annually. There are twelve pilots in the ports of Cavite, the island of Hermosa, and Terrenate, each of whom receives 200 pesos when he is not afloat (for when afloat they receive more); ten boatswains [contramaestres] of as many boats, who are paid each 325 pesos; ten boatswain's mates, each 225. There are 520 sailors, each of whom receives 175 pesos, among whom are included those who sail to Nueva Espaa, Terrenate, and the island of Hermosa, and other parts. There are 200 common seamen, each of whom receives 60 and one-half pesos; seven coopers, each 325; four Indian coopers, each 72 and one-half; one diver, 350; one hundred and sixty Sangleys (24 of whom are pilots), who serve as sailors in the champans and bring the food and war supplies, all of whom together get 7,504 pesos; twenty Indians, who serve in the boat that acts as a scout-boat in the island of Marivelez, who receive five hundred and forty pesos; one hundred and thirty Lascars, natives of India, who are sailors and common seamen, 9,754 pesos; one master of ropemaking, one hundred and seventy-five pesos; two Indian ropemakers, each 78 pesos; fifty Indians who work at the rigging, each 24 and one-half pesos; six Spanish carpenters, each 325; five hundred and fifty Indians, carpenters along the Cavite coast (six of them, who are bosses, each 97 pesos; 120 workmen and laborers, each 61; and the rest, each 49); 50 other Sangley carpenters and sawyers, who are paid 4,220 pesos; seven Spanish calkers, each 325; four slave calkers, each 47 and one-half; fourteen Sangley calkers, who get 1,165 pesos; one master of the smithy of Cavite, 425; another of the Manila foundry, 375; another of the smithy of the army, 350; one hundred Indian smiths, for the three smithies, get 5,377 pesos; thirty Sangley smiths, ten of them bosses of forges, are paid 2,280 pesos. Therefore this part amounts to 180,731 pesos.

The ships that sail annually to Nueva Espaa carry one commander-in-chief, or head, who, in addition to four rations that are given him, receives a salary of 4,325 pesos; one admiral, 2,900. Although it is ordered in the royal decree for the grant of the last of December, 604, that these ships have an overseer and accountant, with pay of 2,000 ducados apiece, in order that they may keep account in their books of what is carried and taken, as in the last reports of expenses and salaries, those offices are not found. It is doubtful whether they are provided, and accordingly they are omitted. There are two masters, each of whom receives 400 pesos; four pilots, each 700; two boatswains, each 325; two boatswain's mates, each 225; two notaries, each 225; two keepers of the arms and stores, each 225; two calkers, each 325; two water guards, each 225; two surgeons, each 225; two constables, each 325; twenty artillerymen, each 225 (who ought to serve a like number of pieces, according to the seventh section of the royal decree of 604); six Cahayanes [i.e., Cagayans (Indians)?], each 60; two coopers, each 325. These wages amount to 20,535 pesos, for sailors and common seamen belong to those whose posts are continuous. On the return trip [to Filipinas], when the usual renforcements are carried, there is a sargento-mayor, who gets 600 pesos; one adjutant, 412; one royal alfrez, 865. It is ordered by a royal decree of December 14, 630, that the latter officers be aided with only four months' pay at Acapulco, and that they be paid for the time of their service. Furthermore, there is a shoremaster at the port of Cavite, who receives 600 [650—MS.] pesos; and although it was ordered by a royal decree of April 22, 608, that he should not receive this salary, that office must have appeared indispensable. There is one builder for ships and another for galleys, each of whom receives 690 pesos; one gunner to sight the guns, and an overseer of the royal works of Cavite, 800; one manager for the artillery foundry, 500; one founder, 450; one powder manager, 500; another of the rigging, 272. One galley is built every year, on an average, which costs 20,000 pesos finished and ready for sailing, exclusive of the men who work at it. The purchase and equipment of 18 champans cost 2,300 pesos. Therefore, according to the items above mentioned, the expense of this department amounts to 283,184 pesos.



Number 54. Eighth division: the food, munitions, [47] and other expenses

The eighth and last is that of the food and munitions. As much as 50,000 pesos are given annually to the factor of the royal treasury, for expenses and the purchases of food, and the pay for the careening and repair of ten galleons and six galleys. For flour biscuit for the voyage, besides the rations, are spent 5,000 pesos; for iron, 1,250; for wax, cotton, and other things, 1,300; for balls and fuses, 1,000; for saltpetre, and the making of powder, 4,000. A quantity of money is sent to the alcaldes-mayor and the persons who bring in the supplies for the provision of the royal magazines, the amount being estimated at 86,000 pesos. On extraordinary watchmen are spent 2,000 pesos. To the keeper of the magazines of Manila is given 750 pesos; to his clerk, 222; to the keeper of those of Cavite, 395; to his clerk, 212; to the keeper of that of Jambolo in Pangasinan, 173; to the keeper of the magazines in the island of Hermosa, 300; to his accountant, 500; to his clerk, 200. The expense of this last department amounts to 153,202 [15,302—MS.] pesos.



Number 55. Summary of the expenses of the islands, and the persons employed

The above is what is spent annually on the average, more or less according to the times, for all purposes in the Filipinas Islands, a summary of which (both of persons and money) is as follows.

The first department, that of justice, supports 32 Spaniards, and costs 37,077 pesos The second—the conversion [of heathen], worship, and hospitality in most of the convents, and the hospitals and churches—supports 73 Spaniards, and costs 37,297 pesos. The third, the maintenance of friendly relations with the kings, costs 1,500 pesos. The fourth, the management of the royal treasury, in which 19 Spaniards are employed, costs 11,550 pesos. [21,550—MS.] The fifth, the land warfare of Manila and its islands, in which 1,762 [1,702—MS.] Spaniards and 140 Indians are employed, costs 229,696 pesos. The sixth, the war in Maluco and its islands, in which there are 612 Spaniards and 200 Indians employed, costs 97,128 pesos. The seventh, the navy and marine works, in which 832 Spaniards and 2,200 Indians are employed, costs 283,184 pesos. The eighth, the commissariat, in which 8 Spaniards are employed, costs 153,302 pesos. [53,302—MS.] ———- 850,734

Consequently, exclusive of the four convents and fourteen hospitals which are cared for, and the alms which are given for wine and oil to certain churches, your Majesty pays in the Filipinas Islands and Maluco, and in their navigations and trade-line, salary, pay, and special wages to 5,878 persons, 3,338 of whom are Spaniards, and 2,540 are Indians or men of various nations. The cost of all included in the eight departments here presented, as it appears, is 850,734 pesos of eight reals.



Number 56. Second point: of that which the Filipinas produce

Having seen what it costs to maintain the Filipinas Islands, the second point is to ascertain how far they aid in this cost, and with what they supply your Majesty's royal treasury, in which notice is to be taken that there are eleven departments of revenue.

1. The tributes of the encomiendas which are assigned to the crown, paid by not only the natives of the islands but the Chinese and Japanese, are annually valued—in reals, and in products which proceed from 44,763 tributarios—at ten reals apiece 53,715 pesos. 2. In the encomiendas of private persons, who, as has been said, possess 84,439 tributes, there is a [royal] situado of two reals for each tribute—only eight being reserved for the encomenderos, which are valued annually at 21,107 and one-half pesos 21,107 pesos. 3. The licenses which are given annually to the Sangleys, in order that they may remain for some time in the islands, amount to about 14,000, which at eight pesos that are paid for them as fees, amount to 112,1000 pesos 112,000 pesos. 4. The tribute of these 14,000 Sangleys at five reals apiece—four for the tribute, and one for the situado—are worth 8,250 pesos 8,250 pesos. 5. The fifth and tenth of the gold that is collected from what is declared by the natives, is 750 pesos 750 pesos. 6. The ecclesiastical tithes—which are collected for the royal treasury, because all the clergy are paid from it, as has been seen—amount to 2,750 pesos. 2,750 pesos. 7. The fares for passengers, who leave the islands for other parts in royal ships, 350 pesos. 350 pesos. 8. The fines of the exchequer are worth 1,000 pesos annually. 1,000 pesos. 9. The customs duties on the merchandise of China, India, [48] and other parts, which are imported and exported, 38,000 pesos. 38,000 pesos. 10. The imposts and freight charges, customs duties, and other charges that are collected in Nueva Espaa on the merchandise exported annually from the islands, are worth 300,000 [309,000—MS.] pesos which is reckoned as income of the Filipinas, for those islands cause it. Accordingly, it is ordered by a royal decree of February 19, 606, that the proceeds from this department be remitted to Manila, and that so much less a sum be sent from Mexico; besides which they ought to make good to it 30,000 more, because of what in Nueva Espaa proceeds from the traffic and commerce of this merchandise for the excise duty and other imposts. 300,000 pesos. [309,000—MS.] 11. It cannot be ascertained what the mesada taxes in the ecclesiastical estate, and the half-annats in the secular, are worth; nor that concerning sales and resignations of office, and other petty transactions, for all of which a figure of 6,000 pesos annually is set down...... 6,000 pesos.

These eleven departments of royal revenue amount to 573,922 pesos; and the Filipinas produce that sum in revenue for your Majesty. [49] [In the margin of Extracto-historial reprint: "Note—This sum seems to be inaccurate, because it should amount only to 543,922 pesos."]



Number 57. The excess of expenditures for the islands over the receipts

It is ordered by a royal decree that the amount reported from the islands to be lacking for the total amount of situado be sent annually from Nueva Espaa; and as the situado, according to the calculation set forth, is 850,734 pesos, there is an annual deficit of 276,512 pesos or thereabouts; [In the margin of Extracto-historial reprint: "The deficit should be 306,812 pesos."] for this account is made for only one year, and is not fixed, although it it usual every year. In this matter it is to be noted that this [itemized statement] answers the current report that every year six hundred thousand pesos and more are taken from Nueva Espaa for their expense. That report gives rise to the belief and understanding that they spend that amount in addition to their receipts. That is an error; for if from the tenth division the sum of 330,000 pesos is made good, which is collected in Acapulco and Mexico, and other parts of Nueva Espaa (and this is recognized to belong to the islands by the above-cited royal decree of 606 and is therefore ordered to be returned to them), when 600,000 or more pesos are sent, not one-half that amount is supply of deficiency, and expense, since more than one-half is returns. And even this is counterbalanced somewhat by what is derived from the bulls of the crusade, the proceeds of which are ordered by a royal decree of December 21, 634, not to be taken to Mexico, but to be kept at Manila, and that to the treasurers in Mexico a like amount be furnished. Although this order is opposed by the crusade, as it is advisable it ought to be executed, and a second decree issued ordering its observance; thus two dangers might be avoided to this sum, one in going and the other in being returned—as is done with the possessions of deceased persons, by a royal decree of December 13, [of the year] 16, which are kept in the Manila treasury, and paid into that of Mexico.



Number 58. The islands contribute more than they spend

From the expenses and contributions of the islands, and the excess of the debits over the credits, some, through lack of acquaintance with the matter, are wont to derive the main argument against them, imagining that the islands are of little use but of great expense. Although the first of these propositions is quite confuted and answered by what is thus far alleged, the second also lacks foundation in the meaning in which it is put forward, which attributes to the islands more expense than profit; for the Filipinas alone contribute more than what they cost. Until the year 607, the islands of Maluco belonged to the crown of Portugal, which spent a great sum of money on them—as was necessary on account of the great distance from Goa, upon which their government was dependent. Although, nevertheless, those islands were maintained, that appeared impossible after the Dutch entered the Orient; for with their advent the expenses of Maluco were so increased that the islands were lost, inasmuch as there was no money with which to maintain them. It was ordered that the Filipinas recover them, and they did so. In order to assure the safety of the Malucos and to economize expenses for the convenience of both crowns, they were joined and united to them [i.e., Filipinas], imposing on the crown of Castilla, and in its name on the Filipinas, the obligation to attend to their wants, thus adding to Filipinas at least 290,000 pesos of expense—the amount of what pertains to Maluco from the second, third, and fourth departments, all the sixth, half the seventh, and a third of the eighth. If your Majesty is petitioned for 276,000 pesos annually for both groups of islands, as is attested, and those of Maluco alone cost 290,000, the deduction is evident that the Filipinas per se cost less than what they contribute—and more, if it is considered that the crown of Portugal saves 400,000 pesos which the Malucas must have cost it when they were under its charge. Since the Filipinas did not ask for that union, and were not a party in causing it to be made, they ought not to be charged with increase in expenses which those islands cause them.



Number 59. How and in what the inhabitants aid in the support of the islands

But it is proper to remark at this point, what is the kernel of the matter under discussion, that the Filipinas and Malucas are not supported with the 850,000 [890,000—MS.] pesos, which are the amount of their expenses. Neither that sum nor a much greater one would be sufficient, if the inhabitants of Manila did not serve, aid, and help with their possessions and lives on the occasions that arise, both extraordinary and ordinary. Now [they serve] as soldiers in the wars when the enlisted and paid troops are outside, or are not sufficient to resist the enemy, standing guard and assisting in military duties with the [same] punctuality and discipline as if they drew pay; and although they are few, as has been said, they count for many in the valor, willingness, and generosity with which they serve. Again, they give their slaves to labor on the public works and shipbuilding, and ordinarily for the levies for the galleys, as happens daily; and in the term of Don Alonso Faxardo, had not the inhabitants furnished the crews, the galleys could not have sallied out, as they did, against the enemy. Then they lend, when the aid from Nueva Espaa is delayed or insufficient, very great quantities [of money] for any sudden expense—as was that above mentioned in the case of Don Alonso Faxardo, to whom they lent at that time two hundred and fifty thousand pesos. So they do every year, and always without interest, the payments sometimes being delayed two or three years. In regard to that, there is a royal decree of February 29, six hundred and thirty-six, in which it is ordered that those who make such loans shall be promptly repaid, in order that the royal treasury may be accredited when it needs help. They help, too, with very large and continuous gifts of money, and food and products (which are generally more important than money), which the governor assigns for the aid of Terrenate, the island of Hermosa, and other posts. They also accept expeditions and embassies, by which they go at their own expense to the kings of those archipelagos. So have gone General Juan Xuarez Gallinato, to the king of Camboxa; Gregorio de Vargas, to him of Tunquin [Tumquin—MS.]; Juan Tello de Aguirre and Juan Ruiz de Ycoaga, to him of Siam; to whom also went Admiral Andres Lopez de Asaldegui; Don Luis Navarrete Faxardo; and afterward Don Antonio de Arco, to the emperor of Japon, at the cost of life; Don Juan Zamudio to China; and others to other kings—each one spending ten or twelve thousand pesos to serve your Majesty. In short, the occasions that the inhabitants of Manila have for helping, and to which they respond as loyal vassals, are as many as will be seen in the future, and as one can imagine would be found in a post and frontier so infested by so many and so strong enemies—Dutch, Chinese, Japanese, Mindanaos, Terrenates, Zambales, and those of other nations, which keeps the inhabitants in arms continually. Scarcely is there a year when the inhabitants do not engage in hostilities, and it necessarily costs them heavily. If it were all at the expense of the royal treasury, the cost of the islands would increase so that it would almost exceed their possessions.



Number 60. To what degree the inhabitants of the islands ought to be favored

By all this is represented to your Majesty what those vassals merit who are always and continually serving, not in posts and duties that increase their wealth and advance their households, but in land and naval warfare, in which they lose their lives and possessions—fighting now with the Dutch, who harass them more sharply than in Flandes, and make daily attacks; now with the numerous nations who surround them. Consequently, they deserve that their services be considered, not only in consulting as to rewards, but in giving them; and that they be gratified with honors and rewards—if not equal to their services, as those are so great, at least equivalent to what good government permits, and to what the same land which they defend can support. That is in accordance with the royal decree of February 29, 636, in which the governor is ordered to observe the rules ordering that military offices and encomiendas be given only to those who shall have served under your Majesty's banners, and always preferring those who shall have rendered most service. It will be proper and very consoling for the deserving citizens and residents of those islands, that the royal Council of the Indias—which, as it were a crucible for the new world, estimates services, approves merits, and deliberates as to rewards, with so much acumen, equality, and justice—allow the claims of Filipinas before those of others who, by serving in Flandes, Italia, and Alemania, try to get hold of the best posts, not alone of the Indias, but even of the islands themselves which they never entered. For, if the latter do not exceed the former in the hardships, perils, and services that the citizens of the islands suffer and perform, for your Majesty and for that colony, and those citizens should be preferred justly in the rewards of their own land, then they have sufficient ground for asking that they be not despoiled of this favor and privilege, which they try to merit by so many and so repeated acts of valor and loyalty; but that in the dispensing of that favor they may recognize that they may expect sure rewards for their children, by leaving them as an inheritance the blood shed and the property spent in defense of their king and the preservation of their fatherland. And since their services differ so widely in quality from those of others, who have no services, it will be just that their papers and claims be examined with a different kind of attention.



Number 61. It is not advisable that the magistracies of the islands be sold

In this matter also it is to be noted that the magistracies of the city were formerly conferred by the governor on the most deserving and venerable persons who were to be found. They, because of their experience and zeal, accepted those offices, and attended to the duties of those charges as was demanded. In order that those offices might be held by them for life, it was sufficient for them to come to ask for confirmation of them from your Majesty, in accordance with the royal decree of March 17, 1608, and February 8, 1610. And although, since they were ordered to be sold, persons of equal ability and position have bought them, and fill them and attend as they ought to the government of the community (which in this, above all else, has always been fortunate); and although the governor is ordered by a decree of June [July—MS.] 12, 636, to employ the regidors of Manila in charges and posts according to their rank and the competency with which they can serve your Majesty, and that he honor, favor, and aid them in whatever else arises: the deserving men of that city cannot be prevented from expressing their resentment that, while there are so few rewards to which they can aspire, so many the occasions in which to serve, and so remote the qualification of their merits, that small part should be taken away from them, and that, in order to enjoy those offices, they should have to be bought. Moreover, the command, by decree of June 3, 620, that the magistracies of the Filipinas be sold only to conquistadors and settlers, or to their descendants (which was only recognizing that it was fitting to do so, but not assuring the reward), is no favor; for those to whom it is ordered to sell them, since it is so just that those who conquered and seeded should govern, are generally the poorest of all. And although they desire to enjoy the offices which belong to them, some of them do not possess the money with which to buy these; while others do not care to spend the little wealth that they have acquired for what is not of any use or profit to them, but rather a burden and inconvenience—since, by defending that community, they have had many contentions with the former governors. Consequently, it is very advisable that the magistracies be given to men of years, and old residents in the colony, who have held military posts, and who can oppose the governors when the latter try to exceed the provisions of your Majesty's decrees. For this and other reasons, it has been experienced that eight vacancies have existed in the magistracy of Manila for many years, because there were no buyers for them, as appears from the royal decree of February 29, 636, in which it is mentioned. And since the greatest value of those offices is one thousand one hundred pesos, and, if one consider the twelve magistracies, they do not produce an income of five hundred pesos per year, that is so small a sum, and there are so many damages and disadvantages that may result from it, that it would be a gain for the royal treasury and a great service to your Majesty to have the sale of the said offices stopped, and to have them given as formerly by the governors to the oldest residents, and to men of greatest experience and worth and as favors to individuals—that, while they do not give any profit, they may give honor to the citizens of Manila. Since there is not a city in all the Indias of its rank, nor one in which the inhabitants render so much service and with less advantage, this measure will not be a conclusion of which others may avail themselves to demand the same.



Number 62. Third point: of the commerce of the islands with Nueva Espaa

From the service rendered by the inhabitants of Filipinas, one may deduce how necessary it is to maintain the rich, or to give them capital sufficient for them to attend to their business. For that the only method (and the third point of the five arguments proposed), is the commerce of the islands with Nueva Espaa, for in the proportion in which that shall increase, their possessions will increase, and with that the defense and security of the islands. For there is no more powerful argument than that which establishes the conservation of a province in the strength, that is, the wealth of its inhabitants, and depends on the abundance of that for its conservation. Commerce is a natural law of nations, by which they make common to all provinces what each one produces, grows, or manufactures—now by selling, now by exchanging. Although commerce ought to be free, and was in the beginning, when kingdoms and seigniories were less powerful (for as they had narrower territories, so they had fewer matters to which to attend), as the monarchies increased and extended it became necessary to limit the commerce in parts, prohibiting it with some, in order to oblige or cause it to be maintained or increased with others. If that of Filipinas with the Indias were free and absolute, as it was immediately after their discovery, it is evident that they would enjoy the greatest prosperity; while Nueva Espaa would have greater abundance of what was necessary to it, and Peru of what it lacked. But the commerce of Espaa, which would perish and be ruined, was opposed to that; for since the goods sent thence to the Indias were dearer than those of Filipinas, if merchandise entered from both parts without restriction it would be to the advantage of the consumers to seek that from Filipinas rather than that from Espaa; and the former commerce would continue to increase, and the latter to decline. Accordingly, it was right and proper to restrain the one so that the other might endure, and that, heeding the principal thing, namely, the conservation of these kingdoms (the heads of the monarchy), trade to them might be free, and to the others restricted—maintaining such a proportion in this that in securing the prosperity of Espaa the ruin of the Filipinas might not result; for natural laws influence us to concede what is to the advantage of another, when it involves no injury to one's self. And thus it is no considerable damage that the kingdoms do not increase as much as is possible, if they maintain what they have; for the former is a matter of gaining, and the latter of not losing, until each one is left what is sufficient, if from conceding more results the lack to others of what is necessary. Accordingly, to Per [50] is conceded one ship annually for Nueva Espaa; to Nueva Espaa two for Filipinas; and to Espaa the number that its commerce demands and is entitled to, in consideration of its amount—so that thus neither may the islands be lost nor Nueva Espaa and Per be deprived of all the freedom of their trade, nor Espaa feel so much weakness in the trade of the Indias that it should lose that; and that all may remain in suitable relations [to each other], since they are members of the mystical body of this monarchy.



Number 63. Why the islands need the commerce of Nueva Espaa

This matter being thus explained, it is also supposed that the Filipinas retain the trade above described with various kingdoms of the Orient; and that all that trade is free and open without any restriction, except that of China, and that of the Western Indias, which they maintain and observe in a certain manner. For since all those different traffics require the return of suitable kinds of merchandise in order to sustain the exchange in which they consist, and the islands need them—for the rice, cotton, wines, blankets, textiles, and other products, are not desired by China, Japon, Sian, or any other pagan nation, because they abound in the same products, or have better ones—those different branches of commerce must necessarily cease, if there were not another foreign and different commerce, which, desiring the products of those regions, can extend and carry on another trade, which their nations desire and crave. This is that of the Indias, from which is conveyed and bartered silver (a most noble commodity), in return for which are carried the drugs and merchandise that are produced in China and other Oriental kingdoms and provinces, and traded in Filipinas, by which all come to be sustained, united, and joined.



Number 64. Commerce of the islands: why it is injurious to Espaa

This commerce of the Indias with the Filipinas is to the prejudice of Espaa for two causes or reasons, from which result great disadvantages. The first, because the silver is withdrawn and conveyed to the islands, whence it passes into the possession of the enemies of religion and of this crown, Moors and pagans; and finally remains in China—which, according to what we understand, is the general center for the silver of Europe and Asia. For as it always is current, gaining and increasing in value until it reaches that great kingdom, whence it must issue with a loss, it does not issue, and remains perpetually among those inhabitants. From that cause result many damaging effects: such as enriching our enemies, giving them the most noble product of all the commerce of the globe; making easy for them the possession of that which private persons among them maintain, and increasing their number; preventing that silver from going to Espaa so that the royal duties might increase thereby, the avera and the commerce be sustained; and, in short, making this crown lose and its enemies gain. The second cause is that, in addition to the aforesaid losses (which are obvious) from the withdrawal of silver, no less are the damages that are experienced on what is sent in return for it to Nueva Espaa, and passes to Per—namely, a great quantity of the merchandise of China in textiles of gold, silk, and cotton, and other articles. [These are sold] at so low prices that, when the merchandise of these kingdoms arrives (which is worth more, as it is of better quality), it is not sold and has no outlet, as the country is full of the others [from China]; so that those who ship it lose. Consequently, losses are multiplied; and from all results so extreme weakening of the commerce of Espaa with the Indias, that it is almost extinct and will be diminished just as that of Filipinas increases.



Number 65. Reply to the damages of the commerce of Filipinas; and to the first, regarding the withdrawal of the silver.

These two reasons are [alleged as] those which hinder the advancement of the islands, and restrict its commerce. However, a reply is not lacking, which, if it does not destroy, weakens them. For to the first, regarding the withdrawal of the silver and its retention in China, answer is made, that on the silver which goes [from Nueva Espaa] nine per cent [duties] are paid at Manila, and at Acapulco fourteen per cent, a total of twenty-three per cent. Consequently, the duties on its transportation to Espaa are not lost, for they are paid there in larger measure. The effects are not those which are represented; for, although it is true that the silver goes from Manila, it is for China, and for the very reason that it does not issue from that country, it does no harm. But the retention of what comes to these kingdoms is a greater injury, as it all goes to Olanda, Genova, and Venecia [Venencia—MS.], and thence to Turquia, while some portion goes to India by way of Portugal, and those same Dutch, and the Persians, Arabs, and Mogores share the silver; and, although at last it goes to remain in China, it is after it has enriched the greatest enemies of this crown. That is not the case with what goes by way of Manila; for, if it goes thence, it is through the hands of your Majesty's vassals, and it does not reach the hands of the enemies. But even this reply is superfluous, for it is not necessary to the islands nor to their inhabitants that more silver be sent to Manila than is permitted; rather is it important to them that the [amount for which] permission be observed and executed with rigor, as will be said. [In the margin: "In numbers 98 and 99."] Therefore, of the damages caused to the commerce of Espaa by that of Filipinas, only that to the merchandise should be made good; for the silver either is within the limits of the permission, and does not conflict [with this statement] (for neither does it cause any loss, nor can it be dispensed with), or it is in the illegal amount that is stated, and the citizens request that this be corrected and prevented. For if there is any damage to Espaa, it is not any advantage to them; but, on the contrary, destroys and ruins them, as will be seen.



Number 66. Reply to the statement touching the merchandise exported from the islands

As for the second reason—that of the merchandise, and the trade of the islands therein—it is not denied that it would have the effects that have been stated, if it were free, open, and without restriction; but these cease, because experience and good government have chosen a method such that neither the commerce of Espaa should be destroyed, nor that of the islands be annihilated, by permitting the commerce to one in such quantity that it should not prove damaging to the other. And although Espaa petitioned that the commerce from Filipinas be totally suppressed, by which they thought that they would assure their own increase, it was also considered that the islands would surely be lost in that case; and that they would be settled by the Dutch, who would make themselves masters of all the Orient. Consequently, that would not only expose India to evident danger, as has been proved, but would also, by increasing the forces of the Dutch, render them more powerful in the trade of the Indias, and in all the regions where they navigate and traffic. Therefore, if the trade of [the merchants in] Espaa should increase for the one reason, their risks and expenses would be greater for another; and nearly all the trade of Portugal would be ruined. Thus from an imagined benefit would result damages so certain and considerable that, were they weighed as they ought to be, the present losses would be considered as more tolerable. Such is the mutual relationship of states which are many and extended that, if attention to all of them be difficult, it is advisable that decisions be adjusted to the least harmful course. Accordingly, it is proper that the islands should not continue to increase, but that they be allowed the commerce that is sufficient to maintain them; and that that of Espaa should not be increased in that region, but that the trade of the islands be restricted in such manner that it shall be as little obstructed as possible. For, by each kingdom losing a part of its right, all will be maintained and conserved.



Number 67. Commerce of Espaa with the Indias: why it is decreasing

This will be more apparent with the conditions and the changes which the commerce of Filipinas and that of Espaa in the Indias have sustained and suffered. That of Espaa has decreased so much from its usual status that it appears to be less than the half of its former amount. Although the fault is attributed to the Filipinas, that is because the matter is not probed below the surface, and causes are not sought at their sources. The physician who understands only the effect of a dangerous illness, namely, the death of the patient, generally attributes the sickness to uncertain causes and sometimes so remote that they have no connection with the case in question; and, since he prescribes his remedies for such causes, the true, proximate, and essential causes which are working out of sight without any check, end, if not by killing the patient, by placing him in evident risk. All see and recognize that the commerce of the Indias is in a feeble condition, that the merchants are losing, that the exporters do not obtain their capital [from what they ship], and that the ships which go are smaller, and return with poorer cargoes. Although this loss is so well known, there are some who ascribe the cause of so great an effect to the Filipinas, and not to the misapprehension of Espaa—which is persuaded that the wealth of the Indias must be inexhaustible, and that the merchants can still gain on their investments the same amounts as fifty years ago, while the causal means of it all have been lacking, which have been noticed by few, and ignored by many.



Number 68. First reason for the decline of the commerce of the Indias

First, the abundance of gold and silver. So great was the abundance of these metals in the Indias, that one could say the same as of Jerusalem in the time of Solomon, that they were regarded as the stones of the street. Accordingly, articles were paid for at so exorbitant prices, as is apparent from the histories of their conquests. That region has failed, for the ores that yielded three hundred pesos per quintal by smelting, now yield eight or six by quicksilver, which costs more than smelting; and [such ores] are worked as good ones. Potosi, which is the heart of the Indias, is threatening to give out; for it alone yielded for forty years an amount that it cannot now yield, although aided by the opening of many mines which sustain its reputation. The mines of Nueva Reino [i.e., New Granada] and of Nueva Espaa have lost a part of what they had. The cost of mining is greater, the mines are poorer, and, consequently, the gains less, and less the amount obtained. Therefore, since this was the first cause of the greatness of the Indias, it is not remarkable that with its deficiency their commerce has declined.



Number 69. Second cause for the decline of the commerce of the Indias

The second cause is the decrease of the Indians and the increase of the Spaniards. The latter number thirty times more than formerly; where there were five hundred, there are now three or four thousand. Without exaggeration, there has been a decrease of the Indians of more than six millions. Although not all of them used Spanish commodities, they consumed many, and to so great an excess that it became advisable to prohibit this to them and order them to dress as did their ancestors. What is most to be regretted is the cessation of the service for the mines, the cultivation of the fields, the gross sum of the tributes, and the local commerce of many provinces. With fewer people and less wealth, there must be less consumption and smaller profits; and, if everything diminish, it is impossible that trade should not do the same.



Number 70. Third cause for the decline of the commerce of the Indias

The third cause has proceeded from the above two; for with the increase of the Spaniards, not only has the consumption not increased, but it has been and is much less. For, besides the fact that so many stuffs and figured goods are no longer worn out in the Indias as formerly, and he who clad himself in silk now contents himself with cloth, all bulky goods that are exported from Sevilla are manufactured there [in the Indias]—where with the number of people their necessity has increased, and with their necessity their skill. The consumers are fewer, and the officials more; there is little money, and those who seek it are many; and they seek it more eagerly as their courage is small, since their funds are already scant. The springs are drained dry, for there is less water, so that scarcely can they dampen what they formerly soaked. What few formerly shipped and many bought is now quite the contrary, and many send it and there are few who use it—as is evident by the wine which was and now is consumed by Nueva Espaa. On that account it has been necessary that the former profits cease, and that the exportation and consumption of merchandise be restricted—not only on account of the goods which are manufactured there, but because of lack of consumers and lack of wealth, all of which are causal circumstances of the decline of the commerce.



Number 71. Fourth cause for the decline of the commerce of the Indias

The fourth and last cause is the little favor extended to the Indian trade, both in the Indias, and in these kingdoms—either because of the straitness of the times, or because of other accidents—together with the burdens that have fallen upon everything, the imposts and duties increasing, although greater relief was needed as the amount of wealth was less. The avera, which increased from two and three per cent to six and seven, and was then judged to be so exorbitant that it seemed impossible for the commerce not to be ruined with that excessive tax, has increased so greatly that one year it rose to forty, and with the other expenses is never lower than twenty. What were formerly risks at sea are now great and evident losses, which, aided by the necessities of this crown—which force loans and considerable gifts, and the exchange for juros [51] of what was formerly the capital for commerce—have so weakened commerce, that one is more astonished that it has not been entirely ruined, than that it has declined to its present condition. And all the more justifiable have been the reasons why this crown has profited from the exporters among the merchants of the Indias, and from what has come from the Indias, the greater the loss has been, as it was known to be unavoidable on account of what occurs on land, and more hazardous because of what is risked on the sea—by which some have been ruined, others have retired from trade, and others have changed their business; and all who take part in it are aware that this commerce is ruined, and with it whatever depends on it. It is certain, and has been observed in Manila, that since the loss of the trading fleet of the year 629, and their unfortunate experiences with [storms in] the Northern Sea, the winterings, the disasters, the averas, the embargoes, the delays, and the burdens [imposed] at Sevilla, the merchants in Mexico have decided to export more to Filipinas than to Espaa. And although these things are found by experience to be thoroughly damaging and irreparable, and [it is evident] that they demanded new exemptions and safeguards, by which the losses might be recuperated, and those who suffer them be encouraged, there has not been lacking a person to propose as an expedient that the duties and customs should be raised still higher in the Indias, affirming that they are the most free, and that they pay less—although they really are quite the opposite, as is known.



Number 72. The Filipinas do not damage the commerce of Espaa

The above and many other causes which might be mentioned are those which have weakened and are ruining the commerce of the Indias; and although it would be more advisable to counteract some of them, or to seek reparation for those which are most hurtful, the Filipinas Islands come to be the ones that suffer the penalty, without being implicated in the guilt. And although their commerce is in the lowest condition that it has ever experienced or suffered, yet even in this condition they are not allowed or permitted [to improve] it, and there are some who propose its destruction as a remedy, so that it may share in the universal destruction of all trade; and this is in so far as it touches the commerce of Espaa.



Number 73. Beginning of the commerce of the islands

The commerce of these islands began with their second discovery and the first settlement, which was in the year 565. [52] However, it was at the first scanty and of little weight, until during the government of Guido de Labazarris, in the year 576, the trade of China was introduced, and with it considerable profits, which extended it freely to Nueva Espaa, Guatimala, Tierrafirme, and Per, by a royal decree of April 14, 579. As it continued to increase, it was believed necessary to restrict it; and accordingly, by a decree of November 11, 587, it was ordered that Chinese cloth brought from Filipinas should not pass from Nueva Espaa to Per or to Tierrafirme. That decree was later confirmed by others of February 13, and June 13, 599. And in order that what was prohibited in one way might not be obtained in another, decrees were despatched on February 6 and December 18, 591, ordering the total cessation of commerce between the islands and Per. That was later extended to Tierrafirme and Guatimala, by decrees of January 12, 593, and July 5, 595, forbidding the trade of China and its merchandise to all the Indias, except to Nueva Espaa, which was left open to the Filipinas.



Number 74. Permission for the commerce of the Indias, and its final form

The commerce of Sevilla was not satisfied with even these orders and restrictions. That commerce continued to decrease, although the cause was unknown. They regretted the damage, and tried to apply the remedy, but in vain. As the trade of Filipinas was already the stone of offense, they immediately descended on that. Not only was the prohibition of commodities from the islands strengthened, but their quantity was limited, reducing it to a fixed amount that was permitted, and a certain form. It was ordered that only four ships should ply in that trade-route—two which should sail to Nueva Espaa, and two to the islands, and all at the account of the royal treasury. In these could be carried two hundred and fifty thousand pesos' worth of such merchandise as they should have in Manila; and in return they could take five hundred thousand in silver, including in this sum the principal and the profits. And inasmuch as this permission, from its beginning, was never in favor of Nueva Espaa, but of the islands, it was declared that only the citizens of the islands could navigate and trade, as was already ruled by a royal decree of January 11, 593. In accordance with this, the commander [of the fleet] was despatched on the last of December, 604, with various instructions and declarations, which gave form to this commerce. And since his permission was for only the citizens of the islands, and those who were not residents of the islands but of Nueva Espaa had begun to take part in it, it was ordered that the toneladas of the two ships which sailed should be distributed in Manila by the governor, the archbishop (or the senior auditor), the fiscal, and two regidors. That order was confirmed by decrees of May 4, 619, and May 29, 620, and by others, which regulate this matter, and declare that the respective shares of the silver which must be sent back as returns for the merchandise must be allotted in Nueva Espaa.



Number 75. Administration of the permission for the islands for its citizens alone

Notwithstanding this last order, the citizens of Mexico, who had before taken possession of part of this commerce, continued in it, availing themselves of certain underhand work and management—by which the citizens of Manila perceived the damage that they were receiving, in that others were enjoying what had been conceded to them. Accordingly, as soon as they received the decree of 593, which was the first decree that granted to them exclusively the permission and trade, they decided, in order that they might manage their cargoes, to appoint four or six men to go to Nueva Espaa in the name of all, and there attend to the sale of the merchandise in the ships, and to the returns for it. That determination had no effect then, nor in the year 597, when Governor Don Francisco Tello ordered it executed by an act of January 24. It was again proposed in the year 623, when open cabildo-sessions were held in Manila for that purpose, and persons appointed for it; but neither were they sent, because of certain obstacles in the way. But since the necessity became more urgent, because of the injuries experienced, the matter was undertaken more effectively in the year 629, and six commissaries, citizens of Manila, were actually appointed and went to Nueva Espaa, where they are today administering the commerce permitted to the islands. That has been examined in the royal Council of the Indias, together with all the acts which have been made upon it; and it was approved by a decree of March 25, 635, and extended for four years more than the six (for the one of 593 was for six years), by another decree of February 16, 635. The chief motives that induced the inhabitants of Manila to carry out this resolution, were three. The first was, to prevent the consignments of silver which the merchants of Per and Nueva Espaa made through their agents and correspondents, the result of which—to say nothing of the violations of the royal orders in sending silver in excess of the amount allowed—was so prejudicial to the citizens of the islands that it deprived them of the benefit of the permission, while those who were expressly excluded from it enjoyed it. The second was, that with the great amount of silver that entered Manila the price of the Chinese merchandise advanced so greatly that the inhabitants could not buy it. The third was, that prices fell in Nueva Espaa for the same reason, so that the principal could scarcely be realized, as will be told. [In the margin: "In number 98."] [Those were] damages that were repaired by the decisive action above mentioned. And lest that should not be sufficient, it will be advisable that, in the distribution of the licensed toneladas that is made in Manila, measures be taken that no one have a share except the citizens [of the islands] in accordance with the third petition. [In the margin: "In number 103."]



Number 76. Declaration of what is or is not included in the five hundred thousand pesos allowed.

Inasmuch as there were certain doubts in regard to the sum of the five hundred thousand pesos of the returns, it was declared by royal decree of August 19, 606, that it should include the legacies, bequests, moneys for charities, payments for service, wrought silver, and whatever else might be shipped, except by those who bound themselves to reside for eight years in the Filipinas. Such might carry their possessions in money, in addition to the general permission, as was declared by a decree of November 20, 608; and the seamen of that trade-route might take their wages in silver, registered, also in addition to the amount permitted.



Number 77. Smuggled Chinese goods shall not be sold in Per

Peru was excluded from the above-mentioned concession, and the former prohibitions forbidding the importation of Chinese stuffs into Per remained in force, while the penalties were rendered more severe. Inasmuch as from their enforcement it resulted that merchandise of this character, which was seized as forfeited and confiscated, was sold as smuggled goods, and thus the goods remained in the country, they were (although remaining with that warrant and reason) the cause of as much loss and damage as if they had been brought in either secretly or by permission; for the country was filled with these wares, at more moderate prices than those of Espaa. Accordingly, it was ordered by decrees of April 18, 617, and July 30, 627, that Chinese cloth which should be smuggled, and as such condemned as forfeited in Per, should not be sold in the provinces; but that, in the same form in which it had been seized, it should be carried to these kingdoms and sold here.



Number 78. Permission to trade between Per and Nueva Espaa, and its condition

Per and Nueva Espaa appealed from the mode imposed on the commerce of the islands, and from the above-mentioned prohibitions, representing certain disadvantages that resulted from barring them from the commerce that those two most opulent states had maintained between themselves, almost by nature, the chief one being that they were deprived, in this manner, of all the mutual relationship and dependence that they ought to enjoy. Therefore another permission was conceded, for two ships: one to leave annually the port of Callao de Lima, and to carry silver to the amount of two hundred thousand ducados to the port of Acapulco, in order to invest it in the products peculiar to Nueva Espaa—of agriculture, stock, and manufactures—and in no others, even though they be products of these kingdoms; and the other, to sail from Acapulco to Callao with these returns. The prohibition of Chinese cloth was left in force, and it was declared that no Chinese cloth could be sent in the returns for the two hundred thousand ducados, nor beyond that sum. Severe penalties were imposed for its enforcement, by decrees of the last of December, 604, June 20, 609, and March 28, 620, which gave final form to this permission. This last is now suspended and ordered to cease by a decree of November 23, 1634, without the reason that has inspired it being known, other than the expedients that have been proposed for the destruction of the islands. And this order, forbidding ships to go to Acapulco from Per, is so menacing to the Filipinas, that it alone may prove sufficient to ruin them. For if no ships go from Per to Acapulco the islands are exposed to the failure of their succor, in any year when their ships should not arrive—whether because of having been wrecked, or having put back in distress, or having arrived late—since, in such cases, it is usual to supply their lack with the ships of Per, sending in them the ordinary aid of men and money. If the latter do not go and the former do not arrive, there will be no vessels for the above-mentioned purpose; and the islands might remain for several years without the succor that sustains them, and with evident danger of being lost.



Number 79. Fourth, point: of the condition of the commerce between the islands and Nueva Espaa

In regard to the fourth point, which is to declare the present condition of the commerce of the islands, it is supposed that although all the orders above mentioned were to their evident injury—restricting their prosperity, if not prognosticating their ruin—that which was permitted to them was sufficient, when enjoyed by their citizens, to preserve the islands, as it has preserved them, although with some decrease. Moreover, the enemy having increased the expenses and obligations of the islands, they needed, when the succor sent from India, and at times that from Nueva Espaa, failed them, new favors and less strict trading permissions, in order not to be ruined as they fear—being exposed to a more continual and dangerous war than any stronghold of this monarchy endures, with resistance equal to the strongest of them, and with danger greater than that of those most harassed, as they have no other aid than what they themselves can supply. Nevertheless, although it seems as if it were advisable, on account of the importance of their conservation, not only to [let them] go beyond the amount permitted, but also to increase still farther that favor, they find it is greatly restricted, and that their commerce is reduced to such condition and mode that it will be almost impossible for them to enjoy or to continue it. That which should be considered is, that this innovation does not originate as at other times, from Sevilla—which now, undeceived as to the causes that weaken them, knows better—but from the counsels given for action in the matter by Captain Francisco de Vitoria [Victoria—MS.]. He, with no knowledge of the past or heed of the future, judged only by a hasty conclusion that for the present a sum of money might be obtained where there is none—although from it may result the damage that can be understood, not only to your vassals, but to the whole monarchy, as if there could be distinctions and peril between the vassals and the monarchy that would not be common.



Number 80. Allegations of transgressions of the permissions given for the islands and Per

As an argument for that course, it is alleged that notable transgressions are committed in regard to the two permissions for Filipinas and Per. Although this memorial only defends that of the islands, the one is most completely verified by treating likewise of the other; and the illegal acts in both consist rather in the exaggeration with [53] which they are mentioned than in the arguments by which they are proved. Who has ever said, or what possibility can there be, that the two ships which come every year from the islands to Acapulco, whose permitted cargo is of 250,000 pesos (not of 500,000, as is affirmed), carry four millions in merchandise? That, even in pearls and diamonds, seems impossible to be contained in two small vessels; and how much more so in the goods of so great bulk as those that are carried in them! The schemer tries [to say] that those four millions are worth eight in Nueva Espaa, or even ten for the returns [on investments]; and that that sum goes back to the islands with the 500,000 pesos allowed by the permission, with another 600,000 which is sent as the ordinary aid, granting the net profits at one hundred and fifty per cent, or at the least at one hundred per cent. Were that so, those islands would be most wealthy in one year, for their citizens, as has been said, numbering 230 (counting married and single men), if ten millions entered their possession annually, which would be more than 43,000 pesos for each one, neither Venecia [Venenia—MS.], Genova, Sevilla, nor Lisboa, nor these four empires together, would equal their wealth. With the same extravagance does the captain talk of the ship that sails annually to [from—MS.] Per, [saying that] its permission, which is for 200,000 ducados, extends to three millions of silver that goes unregistered.



Number 81. The violations of law in all commerce, and why they are not remedied

One cannot deny, Sire, that there are illegalities and abuses in all the navigations and commerces in the world, without excepting one; and that, under pretext of the permission and register that goes, which is not permitted and registered. This is known, and is not remedied for two principal reasons. The first is that it is impossible to remedy it, unless a greater damage results from the remedy; for if the bales and boxes were opened in Sevilla, or in other ports of heavy trade, and the articles that enter and leave were measured, weighed, and counted in detail, the employees there would not suffice, nor six times as many; nor would there be time to despatch one-tenth of the trade. Thus the salaries increasing, because of the greater number of administrators, and the trade being embarrassed by this method, it is evident that the damage caused would be greater than the gain acquired. The other reason is that in imposing the duties of import and export, the customs, the excise, the avera, and other similar duties, care is taken that it is not done with the strictness that is due; and thus they amount to more than it would be convenient [to obtain] if it were paid by measuring, weighing, and counting them all. It is a general decision of all who carry on commerce that, if something be not dispensed with in that direction, the trade and traffic cannot be maintained at all. Accordingly, collection is made on the bales by the packings of the cargoes, by the memoranda of the ships, and by the registers, without making any other moral efforts to ascertain whether more is being carried than is declared—punishing what is discovered, but not discovering the fourth of what is hidden.



Number 82. Tacit permission for what is secreted in the commerce

Many examples might be mentioned which prove this truth. Let the first be the one that was disputed in Sevilla by the exporters of the Indias, namely, that they had not furnished sworn invoices of their cargoes. And although the administrators of the customs insisted upon that, the exporters secured [permission] to furnish, as they are doing, mere lists [of the goods]. Nevertheless, they do not open the bales or boxes; and, although at times these contain cloths, silks, and fine Holland linen, and other rich stuffs, they pass as coarse linen, [54] in great part, [55] and at most as Rouen linen; and they pay as duties the fourth part of what they would have paid had the bales been opened. Let the second be the existing ordinance that no bale be opened, until it is apparent by information that it carries more or different articles than are stated on the enclosures. That ordinance is observed in all ports of Europa. The third, the custom that has been introduced into Sevilla of imposing on every bale exported to the Indias a certain duty above the amount of the invoice and measure of it that is presented. That can only be justified by the presumption from evidence that the bale carries different goods from what are declared. In the Indias, in the appraisals that are made at Cartagena for the collection of the customs, although it is apparent to the royal officials that the merchants are selling the entire invoices at a profit of ten or twelve per cent over the cost in Espaa, they add to them forty-four per cent of the cost that they [nominally] bear, and then collect ten per cent on the bulk of all. That would be an excessive burden and grievance, if it were not understood as certain that this is charged upon what is shipped registered and what is concealed by substituting some goods for others. Let the fourth be the notable denunciation made in the year 624 by Don Christoval de Balvas, while factor of Tierrafirme, in which he gave information against seventy exporters and merchants concerned with the one fleet that went that year under command of Don Gaspar de Azevedo Bonal. He ascertained that they had carried and shipped to Per by the house of Cruzes, located between Puerto Velo and Panam, besides 1,446,346 pesos which were registered, another 7,597,559 pesos, by which the royal duties were defrauded of 1,370,656 pesos. And when it was feared that for so flagrant a violation of the law there would be an equal punishment, the affair was all settled for 200,000 pesos, besides 6,000 which were given to the informant, whereupon the whole case and matter was relegated to silence; and there was no change in the despatch [of the ships], nor in the registers, nor in anything else of the previous practices. For if the burdens of your vassals are not eased in this manner, so that they can make up their losses, risks, injuries, expenses, and other damages that they suffer in so long voyages and so distressing navigations, everything will be ruined. If that has been experienced in Sevilla, and in the trade of the Indias, the magnitude of which is what is known, and where rigor would be more important than in Acapulco (which can not at all be compared to the other), why, if the greater transgression is overlooked (although there is the same and stronger argument), should not the less be excused, and why should not the islands be treated like all the ports of the world?



Number 83. The illegalities in the two commerces of the islands and Per cannot be such as are alleged, in the withdrawal of silver.

It follows that it is not to be denied that in the two traffics permitted to Filipinas and Per the same illegal acts might be found as in the other parts where there is trade; but it is not conceded that these excesses are so enormous as are represented. Nor are they greater than those in other regions, where, in the shadow of 200,000 ducados of silver, 50,000 go concealed, while in that of 250,000 in merchandise will come another 60,000; and perhaps both one and the other will be so much less that they merit no attention, and never [is the concealed merchandise] so much more that it exceeds the principal. Some arguments can be advanced on this point. The first is that there is no place whence so much silver can be obtained that three millions of it should be sent from Per to Nueva Espaa, and ten from Nueva Espaa to the Filipinas. For if six millions and upwards come every year from Per to these kingdoms, one remains in their land, and three go to Acapulco, then their mines yield from ten to eleven millions. Those of Potosi never amount to six, [56] while all the others together do not yield two. Consequently, the supposition that eleven millions are mined is false. That will be better proved by what has come [thence] and what shall come in the future; for since it is ordered that the ship that was permitted shall not sail from Per, it will be necessary for three millions more than usual to come from its provinces, since those who trafficked by way of the South Sea cannot let their money remain idle, and must employ it on the Northern Sea. The same consideration ought to hold for Nueva Espaa. Three millions are sent [here] annually from that country, and one-half or one [no—MS.] million remains there in the country. Let us suppose that ten millions are sent to Filipinas. It is proved that the three millions cannot be sent from Per; but admitting for the sake of the argument that they can be sent, it follows that it [i.e., Nueva Espaa] alone yields another eleven millions from its mines—which is impossible, as is gathered from the royal fifths, and from the facts that in some years ships do not go to Filipinas, and that more silver is not for that reason sent to these kingdoms, as would be necessary.



Number 84. The concealment of silver in the galleons argues for the two permissions

All people say openly and believe that much silver is sent unregistered in the galleons of the royal armada for the trade-route of the Indias, and as its vessels number eight, and sometimes twelve, and it acts as convoy to twenty or thirty other and smaller vessels, the highest figure named by those who exaggerate this excess is one million; but never, by dint of diligent efforts and the experience of so many years, has there been known, found, or discovered one-half million. Therefore, if it can scarcely be supposed with probable foundation that thirty or forty ships, with a registered cargo of nine or ten millions, carry one million hidden, how can one believe that three millions can go unregistered in only one vessel (and that a small one), and that ten millions can go in two? The fact is, that he who is looking for transgressions does not think that he is accomplishing his purpose unless he increases them. Besides, if three millions are sent from Per, it is in order to have them returned in investments in the merchandise of Nueva Espaa (all of which are bulky), for those who send their money [there] will not do so for the purpose of having it remain there. And three millions of investments (which will amount to four millions in Per), in one ship of three hundred toneladas—[why,] there is no one who will even express an opinion that such a ship can be found that can hold so much. Hence, it is inferred that the above sums are imaginary, fantastic, and fabulous, and consequently, [so is] whatever is based on them.



Number 85. Excess in the merchandise, over the amount permitted to the islands, cannot be what is stated.

In regard to the merchandise, the extravagance of the report is also recognized, namely, that what is carried in each of the two ships is worth four millions; for there is not another like sum in all the Filipinas, even though the cities be sold, with whatever possessions are owned by their citizens and inhabitants. And that such an excess is impossible is apparent for many reasons. First, because the opinion [proposed] regulates the merchandise by the silver that it assumes as the returns. Accordingly, on four millions, with a profit of one hundred and fifty per cent, it gives ten millions of silver; and if there is no foundation in this sum, as is proved, neither is there any in the other. Second, that there is not enough merchandise with which to increase the permitted cargo of the ships, some years, and fewer toneladas are sent than those that are allowed to be distributed. It is improbable that there should be a deficit in the [amount sent by] permission, and yet that outside of it there should be sent four millions, or one, or a half-million unregistered. In regard to that, the islands make now the ninth petition, which will be seen [later]. [In the margin: "In number 109."] The third is the controversy in regard to the distribution of the toneladas—of which the citizens complain that some have been taken away from them, and given to those who are not residents. Thus it is ordered, by the general decree of 604, that no toneladas be assigned to the officers, captains, soldiers, sailors, and artillerymen, and that such cannot receive or buy them. A decree of May 29, 620, orders that there be moderation in the toneladas given for their clothing and ship's stores to the commanders and chief officers. It cannot be believed that those who carry goods would go to law about two or four additional toneladas of allotment, if they were given as many as they wanted. The fourth is very much to the point. In the year 587, while the Englishman Tomas Candi[sh] was sailing through the South Sea to India and the Malucas, he pillaged the ship "Santa Ana" on the coast of Nueva Espaa, which was one of the most rich and valuable ships that has left the islands for Acapulco [Capuico—MS.] The very report of the Englishman himself says that nothing was concealed, and that the valuable merchandise that it carried was worth 122,000 pesos [57] of four English sueldos [sc.: shillings] apiece, besides some bales of so little value that they were left to burn with the ship. And since that commerce was then free and unrestricted, they could carry more than now, when the commerce is reduced to a certain amount permitted. The fifth is almost evident, because this merchandise comes in two ships of 300 toneladas. Suppose that they are of 500 toneladas, and that they do not carry any products of the islands, nor any ship's stores, or spices, or anything else but silk, of which every six boxes make one tonelada; accordingly, the thousand toneladas of the two ships would mean 6,000 boxes. Each box is worth 1,500 pesos, and therefore all would be worth 900,000 pesos. Now if from this amount supposed be deducted the toneladas occupied by the men, artillery, ammunition, and food, those toneladas that the ships have below 500, and those toneladas which are of other kinds and not of silk (for those containing cotton cloths are estimated to have a value of 100 pesos and less, and usually exceed [in all] 2,000 and at times 4,000), it easily follows how impossible it is to carry four millions in merchandise in these two vessels—if indeed the three and one-half millions do not come in gold, pearls, and diamonds (products of which 20,000 pesos' value are not brought).



Number 86. Permission for the merchandise of the islands: how it is understood there

The sixth reason is founded on the truth regarding the commerce of the islands, namely, that in regard to the value of the two hundred and fifty thousand pesos allotted by the permission, the governors have granted favors in two ways. One is by admitting registers of more merchandise than is included in the permission, for certain reasons and motives that they have had, guiding themselves more by the burden of the ships and their toneladas, and by the volume of the goods, than by their intrinsic and real value. That has not been any fault or transgression in the citizens, nor in the government employees—of the former, because they are masters of what is allotted to them, but not of its restriction or its increase; of the latter, because it is clear that they must have had an order or sufficient reason for it—and even if such order or reason were lacking at the beginning, those who have succeeded and have found them in this practice and procedure, have not greatly transgressed in following it. The other method is by allowing the citizens to export more than the amount ordinarily allowed, in the products of their own land, which they get from their harvests or their encomiendas. Such are white and yellow wax, and civet; talingas, manteles, lampotes (which are cotton fabrics); and certain kinds of blankets [mantas] from Ilocos, Moro, and Bemben. Of these products, eight hundred piezas (which make one hundred toneladas) are generally sent; and they are declared and appraised at Acapulco, as will be told of the rest. [In the margin: "In numbers 96 and 97."] That practice seems to have been introduced on the ground that it was considered probable that the permission was for the Chinese cloth and other foreign stuffs, and not for those peculiar to and native to the islands; these latter were always admitted, and never needed any permission to carry them to Nueva Espaa—both because of their little value, and because, as will be said, they do no harm to the commerce of Espaa. This is where the excess [over the permission] lies, and not where it is imagined by him who is not conversant with the facts. It is even to be noted that not eight hundred boxes of those products and commodities are always shipped, nor all of them outside the permission—but at times much less than is contained in the per mission, and sometimes very few, are sent; and these are registered and pay the royal duties, as do the others.



Number 87. Imposition of the two per cent, and the reason why it should be repealed

The seventh and last reason is that which is deduced from the imposition of the two per cent which an effort has been made to introduce, on the merchandise of those islands which is exported to Nueva Espaa, and on the silver which is taken to them, by way of avera. It was ordered that this be collected, by the general decree for the permission of 604, and by another of April 22, 608. Governor Don Rodrigo de Bivero tried to execute the first, and Don Juan de Silva the second, and both found so many disadvantages that they suspended it. In the year 625, the royal officials again insisted upon its observance, during the governorship of Don Fernando de Silva, and later during that of Don Juan Nio de Tabora—who, recognizing that the motives that influenced their predecessors were more cogent than before, because of the greater decline in which they found that commerce, the poverty of the inhabitants, and the loss in their business, conformed to the earlier decisions. Licentiate Don Francisco de Roxas put forth more diligent efforts for the actual collection of the said two per cent, but he learned by positive evidence that that collection would mean the destruction of the trade of the islands. For their citizens were resolved not to export their goods, or to take advantage of the permission, as it was apparent to them that, if they paid this additional two per cent besides the three per cent that they pay and the other three per cent on the Chinese merchandise, with the freights and expenses of the ships, the duties in entering Acapulco, and afterward on the silver when they depart [thence]; and that, if without that two per cent, they are continually losing, with it they will be completely ruined, and will be able neither to advance, nor even to preserve their wealth for their support: therefore, the inhabitants have represented several arguments of not a little force to your Majesty. First, that although it was a fact that the profits made formerly on the Chinese trade were large, they were indeed quite small after the entrance of the Dutch into those seas; for by their plundering the Chinese merchandise its cost has so increased that the profit made on it is indeed very little, and there are so many risks in it that there are some years when the merchants lose everything. Second, Governor Don Juan de Silva, seeing that it was difficult to enforce this imposition, supplied its place by the three per cent duty that he ordered to be collected on the Chinese merchandise, whereupon its price again rose. Third, because the duties paid and the expenses incurred by the commerce of the islands are very large. For each thousand pesos the citizens there and in Nueva Espaa pay 270 pesos; and on freight, expenses and costs, 280 more—a total of 550 to the thousand. Fourth, since the costs are so heavy, the profits cannot be large, while the perils are enormous; so that it is impossible for the inhabitants to maintain that commerce; and consequently, they will have to abandon it, and the result will be its total loss. Fifth, the visitor, Don Francisco de Roxas, understood this, and contented himself with getting four thousand ducados for that time, as a gift for suspending the execution [of the two per cent]. Sixth, if from the collection of the two per cent would result the sure and certain cessation of the commerce, or its so great decline that it will bring in less with the greater duties than now with the less, it is better to leave it as at present. Seventh, because of the decline into which the commerce has fallen since the Dutch began to frequent the Orient. Eighth, the services performed, past and present, by the inhabitants of those islands, for which they deserve this and greater rewards. These arguments, although more at length, were presented to your Majesty; and you regarded them as so cogent and sufficient that you were pleased to order that the execution of the decrees for the two per cent should be suspended, by another decree of June 13, 636—by which the inhabitants, on account of their shortness of means, should aid the crown with a gift, in accordance with the condition of the country and their funds.



Number 88. Scanty profits of the commerce of the islands

Two things are inferred from the above. One is the scanty profits of the commerce of the islands, which are so greatly exaggerated by him who is proposing measures for destroying that commerce; for, were its profits half of what is alleged, it cannot be believed that vassals so loyal and so liberal in your Majesty's service would hesitate so much about paying two per cent, and gaining less, when there is so great experience of the love and good-will with which they offer you their possessions and lives. This was not the only time in which this imposition was considered, since Governor Gomez Perez Das Marias imposed an additional two per cent besides what was stipulated in Nueva Espaa, [58] in the year 591, for the building of the walls of Manila; and although it was confirmed by a letter of instructions of January 17, 593, orders were given, on account of the opposition manifested to it by the inhabitants, that that duty cease when the work was finished, by decree of March 12, 597, which was put in force. For it is certain that considering the expenses, the risks, the hardships, the shipwrecks, and the losses of that voyage from China to Manila, and from Manila to Acapulco—so remote, so long, so troublesome, and so full of dangers, in which many ships have been wrecked, and the enemy have pillaged others, and not a few have put back in distress, and have suffered other disasters, as will be related [In the margin: "In number 93."]—the profits become very small and the gains so limited. This is recognized in the amount of wealth possessed by the citizens of those islands at the end of sixty years, which is the best and most evident proof; since if it were not indeed ten million annually, as has been imagined, but only that which is permitted, without any illegal gain, and the profits one hundred per cent net, the islands would be found in a very different condition from what they are in at present.



Number 89. The new resolution incompatible with that for the two per cent

The second thing that is inferred from the proposed resolution for the two per cent is, that it seems to be incompatible with what it is claimed to introduce. For if there were so many difficulties in adding two per cent on the duties of the commerce, and its execution was suspended after forty-five years of dispute and attempt, and the arguments proposed were considered as sufficient for that step, and your Majesty, yielding to those reasons, approved and confirmed them, how can an increase of duties be suffered now, which will cause so great an innovation in the manner and despatch of the commerce, which will result in so increasing the duties that what is being attempted is exceeded by this way, and did not seem advisable by the other? And [how is it] that the reasons and arguments which were sufficient in order not to impose the lesser burden are not sufficient to prevent the imposition of the greater?



Number 90. Argument for the two per cent that was proposed in Nueva Espaa

That disadvantage was indeed set forth in Nueva Espaa, although in a different manner, making an argument from this imposition of the two per cent to that which results from the present attempt to disturb the commerce. On account of the attempt of Licentiate Don Francisco de Rojas to enforce that collection, the citizens of Filipinas resolved not to export [any goods] in the ships, nor even to avail themselves of the permission; as they believed that they were going to lose instead of gain, notwithstanding the fancied shipments in excess, as will be [if it is not—MS.] apparent to your Majesty by the reports of the visitor. The latter recognized therein that, if the duties went farther, all those now derived from that navigation would be lost, which, as has been seen, amount to more than three hundred and sixty thousand pesos [In the margin: "In number 56"]; and it would be necessary to supply them from the royal treasury, or leave the islands exposed to ruin. And they would have been ruined if the commissions borne by Licentiate Don Pedro de Quiroga had been fulfilled, as these were beyond comparison more rigorous and prejudicial to commerce; and the same effect would result to the inhabitants—as it appears, inevitably. For, not being able to suffer the lesser burden, they could ill endure the greater; and the damage would exceed the benefit by many odds, since in the two or three years that it would take to obtain the decision, even though it were as favorable as that regarding the two per cent, either it would have cost your Majesty the loss of the Filipinas, or you would have spent in their conservation almost two millions, without any recompense. And what is worse is, that those vassals would have become so impoverished that, even though the commerce were to be restored afterward to its first condition, the inhabitants could not enjoy or continue that condition, or get from the commerce in many years what it now produces and contributes; for, the substance and power in which it consists having been consumed, late or never could that be again accumulated. That is an argument worthy of considerable thought and reflection, which those who propose the measures in question do not answer, although they note and consider it, and they only justify those measures—although your Majesty has a right to impose what duty you please, which is the only thing in which there is no doubt. But they do not avert, for they cannot, the damages which must result.



Number 91. The commerce of the islands pays more duties than any other

By these statements it may be seen how groundless is the supposition that the commerce of the islands pays small duties (and it is seen that in this it not only equals but exceeds that of Sevilla, according to the information concerning that); while in all the Indias it is noted as an incontestable fact that in Filipinas the boxes of the permitted lading are not appraised by the cheapest and worst goods, as is done in other ports, but by the best and those of highest quality and value. [In the margin: "In number 82."] For since there are among them those goods which will be hereafter mentioned, and since the most noble and esteemed is silk—as if all the other boxes contained nothing else, each one of them, whatever it may be, passes and pays [duties] for one pico of silk, the equivalent of five arrobas; and conformably to its cost at embarcation, according to the investigation that the royal officials make for its appraisal, the duties are paid and collected. On arriving at Nueva Espaa, they increase its weight by the fourth or third part, and the pico is held to be about six and one-half arrobas of silk. Then another report is made, of the kinds of silk that are received that year; and, distributing it proportionally through them all, the appraisal is made, and the customs duties are collected, higher than in any other port. For the whole cargo is considered to be silk, although there are in it many other articles, inferior in value and quality. Licentiate Don Pedro de Quiroga, as he had reported, had a box of those which pass for six and one-half arrobas weighed, and found that it contained ten—from which three were deducted and discounted for the wood, nails, tarpaulins, ropes, rattans, papers, and other things which have to be placed around the package to strengthen and secure it for so long a voyage. It was found that one arroba or thereabout was exempted, which, compared to the allowance made on what is sent from Espaa, is very little; and even that is compensated by making the valuation by the [standard of the] most valuable commodity, as above stated, although not all the boxes contain silk. Each box, if of silk, is usually worth one thousand five hundred pesos. It pays as first duties and excise two hundred and thirty pesos, while it is a fact that no bale is sent from Sevilla which pays so much as that, even though it be worth four or six thousand pesos. Therefore the proposition that the commerce of the islands pays more duties than that of Sevilla or any other port seems well proved.