Volume XLV, 1736

Edited and annotated by Emma Helen Blair and James Alexander Robertson with historical introduction and additional notes by Edward Gaylord Bourne.

The Arthur H. Clark Company Cleveland, Ohio MCMVI

CONTENTS OF VOLUME XLV

Preface 11

Document of 1736

Commerce of the Philippines with Nueva España, 1640-1736 (concluded). Antonio Álvarez de Abreu; Madrid, 1736. [From Extracto historial.] 29

Bibliographical Data 89

Appendix: Education in the Philippines

Letter from the ecclesiastical cabildo to Felipe III. Juan de Bivero, and others; Manila, July 12, 1601 97 The college of San José. In two parts. I--Francisco Colin, S.J.; Madrid, 1663. [From his Labor evangelica.] II--Summary of history, compiled from various sources 101 The college and university of Santo Tomás. In three parts. I--Baltasar de Santa Cruz, O.P.; Zaragoza, 1693. [From his Historia.] II--Cárlos III; El Pardo, March 7, 1785. III--Evarista Fernandez Arias, O.P., Manila, July 2, 1885 141 Royal college of San Felipe de Austria. In two parts. I--Casimiro Diaz, O.S.A.; Valladolid, 1890. [From his Conquistas (written in the first half of the eighteenth century).] II--Summary of history, from notes in Pastells's edition of Colin's Labor evangélica, Barcelona, 1904 170 Secular priests in the Philippines. Felipe Pardo, O.P.; [Manila], June 6, 1680 182 Royal decree concerning native schools. Cárlos II; Madrid, June 20, 1686 184 College-seminary of San Felipe. In two parts. I--Felipe V; Madrid, March 3, 1710. II--Juan de la Concepción, Sampaloc, 1788-1792. [From his Historia general.] 187 College of San Juan de Letran. Vicente Salazar, O.P.; Manila, 1742. [From his Historia.] 208 Law regulating marriages of students. Cárlos IV; Aranjuez, June 11, 1792 218 Royal decree ordering the teaching of Spanish in native schools. Cárlos IV; Madrid, December 22, 1792 221 Conciliar seminaries. In two parts. I--Governor Rafael María de Aguilar y Ponce de Leon; Manila, March 26, 1803. II--Modern conditions; excerpts from various sources 223 Nautical school. In two parts. I--Chacon; Madrid, May 9, 1839. II--History; from various sources 240 Boys' singing school. [From Archipiélago filipino, Washington, 1900.] 244 Public instruction. Sinibaldo de Mas, Madrid, 1843. [From his Informe.] 246 Educational institutions and conditions. J. Mallat; Paris, 1846. [From his Les Philippines.] 263 Privileges granted to students.----Arrazola; Madrid, December 2, 1847 279 Superior school of painting, sculpture, and engraving. Compiled from various sources 282 Ateneo municipal. Compiled from various sources 284 Educational suggestions. Vicente Barrantes; Madrid, 1870. [From Apuntes interesantes.] 286 Public instruction. José Montero y Vidal; Madrid, 1886. [From his Archipiélago filipino.] 296 Girls' schools in Manila and the provinces. Compiled from various sources 304 School of agriculture. Compiled from various sources 315 Government reorganization of education in the university of Santo Tomás. Dr. E. Montero Rios, and others; Madrid, October 29, 1890 319

ILLUSTRATIONS

View of port of Tacloban, in the island of Leyte; from photograph procured in Madrid 33 Chart of the stockfarm of Biñán belonging to the college of Santo Tomás, of Manila, 1745; photographic facsimile from original manuscript by the land-surveyor, Francisco Alegre, in Archivo general de Indias, Sevilla 143 Autograph signature of Juan de la Concepción, et al.; photographic facsimile from original MS. in Archivo general de Indias, Sevilla 193 A Cebú coal mine; from photograph procured in Madrid 225

PREFACE

The text proper of the present volume is entirely commercial. In the conclusion of the Extracto historial, is seen the continuance, between the merchants of Spain and the colonies, of the struggle for commercial supremacy. Demands and counter-demands emanate from the merchants of Cadiz and Manila respectively; and economic questions of great moment are treated bunglingly. The jealousy, envy, and distrust of the Cadiz merchants sees in the increasing prosperity of the Manila trade, especially that in Chinese silks, only their own ruin. The Manila merchants, on the other hand, who have the best of the controversy, quite properly object to an exchange of the silk trade for the exclusive right in the spice trade. The laws of supply and demand seem to be quite left out of consideration. The appendix is an attempt to show the influences and factors making for education in the Philippines during the Spanish régime, and the various educational institutions in the archipelago. In it one will see that, while apparently there has been great activity, results have been meager and superficial.

At the close of the preceding volume, we saw in the Extracto historial the "Manila plan" for regulating the commerce between the Philippines and Nueva España, and its adoption (1726) by the Spanish government for a limited period. Three years later (July, 1729) Cadiz protests against this concession, complaining of the abuses practiced in the Manila-Acapulco trade, and of the injury done to Spanish commerce by the importation of Chinese silks into Nueva España. In consequence of this, an investigation is ordered in Acapulco and Mexico, from which it appears that the amount of Manila's commerce is rapidly increasing; the viceroy therefore advises the home government to restrict it, as being injurious to the commercial interests not only of the mother-country but of Nueva España, especially in the matter of Chinese silks. Meanwhile, he notifies Manila that the galleon of 1734 must be laden in accordance with the old scheme, the five years' term having expired. At this, Manila enters a vigorous protest, and demands that the permission of 1726 be continued to the islands. After much discussion pro and con, a royal decree is issued (April 8, 1734) to regulate that commerce; the viceroy's order is revoked, the amount of trade permitted to Manila is increased, but otherwise the decrees of 1702, 1712, and 1724 shall be in force (with some minor changes). In the following year, Cadiz again complains of the Manila-Acapulco trade, and proposes that Chinese silks be excluded from it--offering, by way of compensation, to surrender to Manila the exclusive right to the spice trade in the American colonies. The royal fiscal disapproves this, for various practical reasons, and recommends that the whole matter be discussed at a conference in Mexico, attended by delegates from Manila and Cadiz. The Manila deputies place before the Council another long memorial (dated March 30, 1735), refuting the arguments and denying the charges made by Cadiz; the latter's offer of the spice trade in Nueva España is regarded as useless and in every way unsatisfactory. Cadiz answers these objections (June 1, 1735), and urges the court to cut off the trade of Manila in Chinese silks, adducing many arguments therefor. Again the fiscal refuses to endorse the policy of Cadiz; and the Council call (November 16, 1735) for a summary report of the entire controversy, with the documents concerned therein, preparatory to their final review and decision.

The educational appendix, which occupies most of this volume, opens with a petition from the Manila ecclesiastical cabildo, to the effect that no religious order be allowed to establish a university in Manila (as has been petitioned), as such a procedure would be prejudicial to the secular clergy, by reason of the fact that the religious would hold all the chairs in such institution. The petition also recommends that all ecclesiastical posts be given indiscriminately to members of all the orders until there are sufficient secular priests to hold them.

The second document, consisting of two parts, relates to the college of San José. The first part is the account by Colin in his Labor evangelica, and is a brief history of the institution from its foundation until 1663; the second is a compilation from various sources. The efforts of the Jesuits for a college are first realized through the Jesuit visitor, Diego Garcia, who is well assisted by Pedro Chirino. Luis Gomez, the first rector, secures the necessary civil and ecclesiastical permissions, in 1601. The college opens with thirteen fellowships, which are given to the sons of influential citizens, a number soon increased to twenty. Rules and regulations are made for teachers and scholarships. As early as 1596, Esteban Rodriguez de Figueroa has left directions in his will, in case either of his minor daughters dies, for the endowment of a college under the care of the Jesuits. One of his daughters dying, the will becomes operative, and in consequence, the second establishment of the college takes place February 28, 1610, the act of foundation being given. The Jesuits have some trouble in getting the funds decreed by the will, but are finally successful. In 1647, the college obtains the favorable decision as to right of seniority in its contest with the Dominican institution of Santo Tomás. The second part of this document traces (mainly by reference to and citation from original documents), the history of the college of San José from its foundation to the present time, necessarily mentioning much touched upon by Colin. The royal decree of May 3, 1722, granting the title of "Royal" to the college is given entire. The various fellowships in the college are enumerated. The expulsion of the Jesuits in 1768 has a direct bearing on the college, which is at first confiscated by the government, but later restored to the archbishop who lays claim to it. The latter converts it into an ecclesiastical seminary, thus depriving its students of their rights; but the king disapproves of such action, and the college is restored to its former status and given into the charge of the cathedral officials. Its later management does not prove efficient, and the college finally falls under the supervision of the Dominican university. In the decade between 1860 and 1870, the plans of making a professional school of it are discussed, and in 1875 faculties of medicine and pharmacy are established there. The Moret decrees of 1870 secularize the institution, but the attempt is successfully blocked by the religious orders. Since American occupation of the islands, the question of the status of the college has been discussed before the government, and the case is still unsettled.

The next document, consisting of three parts, treats of the Dominican college and university of Santo Tomás. The first part is the account as given by Santa Cruz, and treats especially of the erection of the college into a university. After unsuccessful efforts made by the Dominicans with Pope Urban VII in 1643 and 1644 to obtain the pontifical permission for this step, it is at length obtained from Pope Innocent X in 1645. In 1648, the Audiencia and the archbishop give their consent to the erection. Rules and regulations are made by the rector of the new university, Fray Martin Real de la Cruz, in imitation of those of the university of Mexico. The second part of this document is the royal decree of March 7, 1785, granting the title of "Royal" to the institution, on condition that it never petition aid from the royal treasury. The third part is an account of the university by Fray Evarista Fernandez Arias, O.P., which was read at the opening of the university in 1885. He traces briefly the history of the foundation and growth of the college and university. Pope Paul V grants authority to it to confer degrees to its graduates for ten years, a permission that is later prolonged. The brief of Innocent X erecting the college into a university in 1645 is later extended by Clement XII in 1734. The first regulations of the university are revised in 1785, when the faculties of law and theology are extended (the departments of jurisprudence and canon law having been established early in the eighteenth century). These laws are the ones still in force in 1885 except in so far as they have been modified by later laws. It becomes necessary to abolish the school of medicine and the chairs of mathematics and drawing. In 1836, the chair of Spanish law is created. Between the years 1837 and 1867 the question of reorganization is discussed. In 1870, the university is secularized as the university of the Philippines by the Moret decree, but the decree is soon repealed. The college of San José is placed definitely under the control of the university, and becomes its medical and pharmaceutical department. In 1876, a notarial course is opened, and in 1880, courses in medicine, pharmacy, and midwifery are opened. Since this date the college has had complete courses in superior and secondary education.

The next document is one of unusual interest because it is the earliest attempt to form an exclusively royal and governmental educational institution in the Philippines--the royal college of San Felipe de Austria, founded by Governor Sebastián Hurtado de Corcuera. The first part of this document, which consists of two parts, is an extract from Diaz's Historia. Corcuera assigns the sum of 4,000 pesos annually from the royal treasury for the support of the twenty fellowships created, those preferences being designed for the best Spanish youth of Manila. The new institution is given into the charge of the Jesuits. The college is, however, suppressed at the close of Corcuera's government, as it is disapproved by the king, the decree of suppression being inexorably executed by Fajardo. The Jesuits are compelled to repay the 12,000 pesos that have been paid them for the support of the college for the three years of its existence. A later royal college, called also San Felipe, is created by order of Felipe V. The second part of the present document is condensed from notes in Pastells's edition of Labor evangélica, and is a brief sketch of the founding, duration, and suppression of the institution founded by Corcuera. The latter founds it at the instance of the secular cabildo of Manila, and the charge of it is given to the Jesuits, although the Dominicans offer to dispense with the 4,000 pesos granted it from the royal treasury. Twenty fellowships and six places for Pampango servants are created by the act of foundation, December 23, 1640. The 4,000 pesos are met from Sangley licenses. An abstract of the rules of the new institution, thirty-three in all, is given. They cover the scholastic, moral, and religious life of the pupils. Corcuera's letter of August 8, 1641, reporting the foundation and asking certain favors, is answered by the royal decree of suppression, which is entrusted to the new governor, Fajardo. The 12,000 pesos, which the Jesuits are ordered to pay, is repaid them (if they have paid it) by a royal decree of March 17, 1647, and the incident of the short-lived college is closed.

The following document--the summary of a letter from the famous Archbishop Pardo--is the answer to a royal decree ordering the education of natives for the priesthood. He states the inefficiency of the natives for that pursuit, and the necessity of sending religious from Spain. It is followed by a royal decree of June 20, 1686, directing the strict observance of the laws for native schools and the study of Spanish in the Spanish colonies.

The college-seminary of San Clemente, or San Felipe, as it was called later, forms the subject of the next document, which consists of two parts. The first is a royal decree of March 3, 1710, in which the king disapproves of the methods employed in the founding of the seminary which he had ordered Governor Zabalburu to found with 8 seminarists. Instead of following orders, the governor allows the archbishop and the "patriarch" Tournon to establish the institution, which is thrown open to foreigners, and has over eighty instead of eight seminarists. This disobedience occasions the removal and transfer of Archbishop Camacho, and the foreigners are ordered to be expelled, and only sixteen Spanish subjects are to be allowed in the seminary as boarders, in addition to the eight seminarists. The second part of the document is from the Recollect historian, Juan de la Concepción. Governor Cruzat y Gongora, in answer to a royal decree recommending the establishment of a seminary, declares such to be unnecessary. Its foundation is, however, ordered, and is finally consummated, but the conditions of the actual founding, which was entrusted to the governor, are altered by the neglect of the latter and the intrusion of Tournon and the archbishop who work in concert. The king, hearing of the turn affairs have taken, not through direct communication, but through the papal nuncio, orders the refounding of the institution along the lines indicated by him, and the name is changed to San Felipe. The formal founding of the latter is left by the governor to Archbishop Francisco de la Cuesta, who draws up new rules, but at the same time deprives the king of the private patronage, usurping it for himself, although it is a lay creation.

In the following document, the college of San Juan de Letran is discussed. It is founded in 1640 by Juan Geronimo Guerrero, for the purpose of aiding and teaching poor orphan boys. Many alms are given for the work by charitable persons, and Corcuera grants some in the king's name, and an encomienda in the Parián is given it. At the same time, a Dominican lay-brother undertakes the care of poor orphan boys in the porter's lodge of the Manila convent. As Guerrero ages, finding it impossible to look after his orphan boys, he entrusts them to the care of the Dominican lay-brother, who has by this time formed a congregation under the name of San Pedro y San Pablo. The consolidation is known for some time by the latter name, although the transfer is made under the name of the College of San Juan de Letran, which is later definitely adopted. Rules for the college are made by Sebastian de Oquendo, prior of the Manila convent, which are revised later by the provincial chapter. After being housed for some years in the lower part of the convent, the college is moved into a house opposite the same; but that house being destroyed by the earthquake of 1645, a wooden building is erected outside the walls near the Parián. In 1669, finding their quarters uncomfortable, as the students are compelled to go to the university for their studies, the college is again moved inside the walled city. Priestly, military, and other professions are recruited from this institution.

A royal decree of June 11, 1792 requires the permission of the royal representative, and of those in authority at the institutions of learning, for all students, men and women, attending any such institution subject to the royal patronage and protection, before the contraction of marriage. Another decree of December 22, 1792, directs the governor to observe the previous decrees concerning the teaching of Spanish in schools for the natives. Nothing but Spanish is to be spoken in the convents.

Conciliar seminaries are treated in a document of two parts. The first part is a decree of March 26, 1803, in regard to the three per cent discount which is ordered to be made from the salary of all parish priests for the maintenance of conciliar seminaries. A decree of July 30, 1802 is enclosed therein, which orders such collection, notwithstanding the objections raised by the parish priests; and the payment must be made in money. Special provisions are made in regard to the seminary of Nueva Segovia. The second part consists of extracts from various sources. The first two of the extracts relate to the five Roman Catholic conciliar seminaries, and give their status since 1862. The third extract is the provision made by the Aglipay or independent church of the Philippines for seminaries for the education of priests, and the plan for the studies to be carried on therein.

The Nautical school of Manila is also treated in two parts, the first being a decree of May 9, 1839, approving the new regulations for the pilots' school of July 20, 1837; and the second extracts from various sources giving a brief history of this institution which is established first in 1820 by the Consulate of Commerce, and later taken under control of the government. This school is now maintained by the Americans.

The boys' soprano school is an interesting institution founded by Archbishop Rodriguez in 1742 for the purpose of furnishing boy singers to the cathedral. The education, which is chiefly musical, embraces training in both vocal and instrumental music, although on account of their tender age the boys are, as a general rule, debarred from using wind instruments. High merit is obtained by these boys.

Public instruction in the Philippines is discussed by Mas in the following document. He declares that the education of the Philippines is in a better state proportionally than it is in Spain. There are schools in each village, attendance at which is compulsory, except at seeding and harvest times. Expenses are met from the communal funds. Women also share in the education. The books commonly used are those of devotion. Besides communal and private schools there are also public institutions in Manila. Brief histories and descriptions are given of the following institutions: university of Santo Tomás; college of San José; college of San Juan de Letran; the charity school founded in 1817 by distinguished citizens; the nautical academy; the commercial school founded in 1840; seminary of Santa Potenciana, which was founded by a royal decree of 1589; Santa Isabel, founded by the confraternity of Misericordia, in 1632; beaterio of Santa Catalina de Sena, founded in 1696; beaterio de San Sebastian de Calumpang, founded in 1719; beaterio de San Ignacio, founded in 1699; beaterio de Santa Rosa, founded in 1750; and the beaterio de Pásig, or Santa Rita, founded in 1740.

This is followed by Mallat's account, which uses Mas largely as authority. Mallat praises the advanced state of education in the Philippines, and dwells at considerable length on their culture in poesy and music, and their allied branches of art; and gives in general a recast of the conditions of the educational influences in the archipelago.

A superior order of December 2, 1847, legalizes in Spain degrees taken in the educational institutions of the colonies, and vice versa; and professions authorized in one country may be practiced in the other, on sufficient proof. A short document on the academy of painting, sculpture, and engraving, compiled from various sources, follows. This academy was founded in 1849 by the Sociedad Económica de Amigos del País, and reorganized in 1892. Another document, also compiled from various sources, treats of the Ateneo municipal, which is an outgrowth of the old Escuela pía, which was given into the control of the Jesuits upon their return to the Philippines in 1859. The latter school receives its present name in 1865. Its expenses are defrayed by the community of Manila.

A document taken from Apuntes interesantes asserts that the university has many enemies, not because the Dominicans are in control of it, but because they believe the study of law unadvisable therein. Such a view is anti-liberal. The writer believes that the Filipinos would give better results in medicine and surgery, and the advisability of a medical school could be sustained, but that medicine and even pharmacy which are both sorely needed in the islands could be established in the university. Foreign professors should be allowed to enter. Superstitions, abuses, and ignorance abound in regard to medicine and pharmacy among the natives. Drugs are allowed to be sold by peddlers, and adulterations are frequent. Parish priests are called in to act as physicians but often only after the native doctor, who works mainly with charms, has been unable to combat the ailment of his patient. But for all his inefficiency, the natives prefer their mediquillo to the priest. Many reforms are needed. The naval school, the author declares, is poorly organized and directed. The graduates aspire only to fine berths and are not content to accept what is really within their powers. The school could profitably be reorganized into a school for training pilots exclusively for the coasting trade. Primary instruction, so far as the government is concerned, is in an incipient state. Spanish is taught only in Manila and some of the suburbs; but there are schools for boys in the native dialects, and some as well for girls. The government salaries are not sufficient and priests and officials find it necessary to determine means for buildings, etc., and salaries are even paid from the church funds. There is no suitable director for primary education, but in reading, writing, and religion, the children are more advanced than those of Spain. The government has tried to improve the instruction in the Spanish language, and has succeeded somewhat. The writer advises the government to introduce all the improvements possible, and to extend the normal school, which has but slight results at present. Teachers are needed, also.

Montero y Vidal in Archipiélago filipino, gives a recast of educational conditions in 1886. He shows that public instruction is somewhat widespread, but that it is lacking in efficiency. He gives some statistics, but they are inadequate, owing to the inefficiency of the public officials. The native lawyers are poor and they sow discord against Spain. He strongly recommends industrial education.

The following document on girls' schools in Manila and the provinces contains much of interest. This account, taken from the Dominican report of 1887, describes and gives a list of the schools of Santa Isabel, Santa Rosa, Santa Catalina, and La Concordia, or school of the Immaculate Conception. In these schools primary and secondary education are given. An account is also given of the school of San José of Jaro which was opened first in Iloílo in 1872, but closed in 1877 for lack of funds, and was soon thereafter reëstablished in Jaro through the intermediation of the bishop. The convent of San Ignacio, founded in 1669, is directed by the Jesuits, but after their expulsion is taken charge of by the provisor of the archbishop. It has had a school since 1883. Various other institutions where instruction is given to girls are mentioned.

The school of agriculture, both under Spanish and American dominion, is discussed in the next document. First established in 1889 by the Spanish government for theoretical and practical instruction, the school has not had great success. Various agricultural stations are established in various provinces by the government to supplement the work of the school. Since American occupation the work has been taken up, and appropriations made for the building of a school in the rich agricultural island of Negros.

The last document of this volume, a state discussion (1890) as to the reorganization of education in the university of Santo Tomás (signed among others by the famous Maura) suggests the arguments advanced by both the civil and ecclesiastical governments in the Philippines. The questions under discussion are: 1. Whether the ministry has a right to reorganize education in the university without considering the religious order of the Dominicans. 2. Whether the university may offer legal opposition, and by what means. The conclusions reached are: 1. The ministry cannot apply the funds and properties of the university of private origin to any institution that it organizes; and hence cannot reorganize education in the university. 2. Should the ministry do so, then the university may take legal means to oppose such determination, the best method being through the ordinary court of common law. This is a highly interesting document, in view of the vital legal educational questions touched upon, some of which may have application in the present San José college case. The educational appendix will be concluded in VOL. XLVI.

The Editors

October, 1906.

EXTRACTO HISTORIAL

Commerce of the Philippines with Nueva España, 1640-1736 (concluded). By Antonio Álvarez de Abreu; Madrid, 1736.

Source: Concluded from VOL. XLIV, q.v.

Translation: See VOL. XLIV.

COMMERCE OF THE PHILIPPINES WITH NUEVA ESPAÑA

(Concluded)

PERIOD IX

[Here] is set forth what occurred in regard to the commerce of Philipinas from the year 1730 until that of 1733, in consequence of the practice of the ordinance of the year 1726, with occasion of the complaint made by the merchants of Andalucia.

128-162. [In July, 1729, the consulate and merchants of Cadiz sent to the king a memorial protesting against the favor recently granted to Manila, which the latter was abusing to such an extent as to endanger the very existence of the Spanish commerce with Nueva España. So much Chinese silk had been sent by Manila to Acapulco that Cadiz had determined to send in this year's trading-fleet no Spanish fabrics; but this would result in the destruction of its commerce and of its manufactures. Cadiz claims that Manila carries away from Nueva España three to four millions of pesos annually, a sum which falls into the hands of foreigners and infidels; and asks that the permission given to Manila for the export of Chinese silks be revoked. The king thereupon ordered the viceroy of Mexico to see on foot a thorough investigation of the Manila commerce, its actual character and extent, its profits, and other particulars, which is done. The year 1731 was selected for this investigation; the sales at Acapulco were unusually profitable that year, as all kinds of fabrics were then scarce in Nueva España, and the Chinese goods were advanced 25 per cent over their usual prices. The officials found that the total sales from that year's cargo amounted to 2,096,874 pesos (making the average value of each pieza of lading more than 500 pesos); deducting from this the royal duties, 229,547 pesos (including the contribution of 20,000 pesos made by the shippers), the amount of returns for the citizens of Manila was 1,877,327 pesos. This amount would probably be equaled in subsequent voyages of the galleon (even if the sales at Acapulco were not so profitable), so long as the present permission continued; for the 500 half-chests of Chinese fabrics made an enormous amount, and of great value. The amount of silver embarked that year for Filipinas was as follows: "1,691,465 pesos, as proceeds of the merchandise sold at the fair that year [this being the previously-mentioned amount, with the royal duties deducted from it]; 566,828, in sums remaining from the previous year; and 175,828, on the account of his Majesty for the royal situado and other special situados of those islands, and for the pay of the crew of the galleon." Investigation being made of the past years of this commerce, "the castellan of Acapulco replied, that from the year 1692 until that of 1702 the Philipinos had been able to lade their ships with goods to the value of 250,000 pesos, the returns for which were 500,000 pesos, without assigning a definite number of piezas--in which time they paid for all kinds of duties 75,000 pesos, which was equivalent to thirty per cent on the cargo and fifteen per cent on the returns. That in the year 1702 their permission had been increased to 300,000 pesos of capital [invested], and 600,000 of returns, with the obligation of paying for the shipment of the latter a charge of two per cent. This had been punctiliously observed until the year 1717, when other quantities [of merchandise] had been shipped outside of the permitted amount, for the causes and reasons which would appear from the acts drawn up on account of this proceeding; and for what was thus shipped outside the permission duties had been paid at four per cent (which amounted to 365,000 pesos), and adding to this the six per cent of alcavala, [1] the duties were ten per cent, which was collected. That this regulation had been in vogue up to the year 1720, in which the Marqués de Valero had allowed to the Philipinos the lump payment of 100,000 pesos which before had been refused them, including in this amount all the dues which they must pay [to the royal treasury], and permitting to them, as before, the shipment of the 600,000 pesos of returns; and that, although this amount only was what they ought to embark in virtue of the permission, they carried other funds also (and not a few)--the reason being that many persons were resolving at that time to become citizens of the islands, and, as consequently their wealth must be conveyed thither, the papers had been given to them for doing so, in virtue of which they embarked their funds, paying on them ten per cent. That for the last ten years many sums of money had gone to Philipinas outside of the permitted amount, on various warrants, for which orders had been previously given, regarding which the bureau of accounts could supply information; but, as in this matter the officials acted independently of the castellan, he had been unable to take cognizance of those transactions." The royal officials of Acapulco--who, with the castellan, were at that time in the City of Mexico--advised the viceroy not to make any change in the permission for the next annual galleon; and gave as their opinion that, comparing the shipments of merchandise, returns therefrom, and duties paid to the treasury, by Manila in the last forty years, if in those islands there had not been an increase of their commerce, at least it had not declined. [2] The officials regarded the present amount of trade granted to Manila as far in excess of what it had before (on which earlier amount the islands had been able to support themselves), and the great withdrawal of money from Nueva España as injurious to the commerce of both that country and España; and they advised that the permission be reduced to 2,750 piezas of Philippine products and ordinary fabrics, and 250 half-chests of Chinese fabrics. If this were done, Manila would still have a million pesos of returns, even after deducting all the duties and imposts, which would surely be enough, since before they had maintained themselves with 600,000 pesos annually. As it was, the royal revenue was much impaired, since the duties paid by Manila now did not include certain ad valorem duties imposed under the old arrangement. At the command of the viceroy, the bureau of accounts of Mexico furnished him a summary of all the remittances of money from Nueva España to Manila during the years 1723-31 inclusive; this report showed that in each year more than the amount of the permission had been conveyed--sometimes stated as arrearages from previous shipments, sometimes as allowed by special permit from the viceroy. The yearly situado was stated as being 250,000 pesos, the amount actually sent being such balance of this sum as remained to the credit of Manila in the treasury of Mexico, which varied yearly from 73,000 to 93,000 pesos. The galleon of 1731 had carried the following cargo: 2,767 bales, 477 chests (of Chinese silks), 554 bags of cinnamon, 147 cakes of wax, 51 cases of porcelain, 296 1/2 arrobas of storax, 1,977 1/2 arrobas of pepper; besides this, and outside of the permission, four half-bales and nineteen chests were sent by the religious orders in Manila--Dominicans, Franciscans, Augustinians, and Hospitallers of St. John of God--for the clothing of the religious in their hospices in the City of Mexico; and by the governor, Marqués de Torre-Campo, 45 piezas for (purchasing?) furniture.]

163-185. [The viceroy, Marqués de Casa-Fuerte, wrote to one of the royal Council, Don Joseph Patiño (November 1, 1731), giving his opinion in regard to the regulation of the Philippine commerce. Estimating roughly the returns from the annual Manila galleon at 2,000,000 pesos when before the sum of 600,000 only was allowed, he regards the present permission as injurious to the commerce of España and to the commercial interests of Nueva España as well; for three vessels come from Philipinas to one trading-fleet from España, and, by carrying out of the country some six millions of pesos, they render the disposal of the merchandise brought on the fleets difficult, besides handing over the treasures of the Spanish domain to infidels. He advocates the reduction of the permission to such amount as will produce not more than 1,000,000 pesos of returns for Manila; and thinks that there is foundation for the remonstrances of the Spanish merchants, although they have exaggerated the amount of the money sent to Manila and the damage to their own trade therefrom. That damage arises almost entirely from the Chinese silks and ribbons sent to Acapulco, which at the fair in that year (1731) were sold for the estimated amount of a million pesos; he therefore recommends that Manila be strictly prohibited from shipping to Acapulco any silk, of any kind or quality whatsoever, except raw, twisted, and floss silk, hose, and white sayasayas; and that the value and amount of all the goods sent thither be judiciously regulated, so that prices may be kept within bounds. This result also depends considerably on the fact that in Mexico large quantities of cotton are raised, from which are made various fabrics; "and in the bishopric of La Puebla the elephant stuffs (which are a sort of Rouen cloth, but made from cotton, which serves for the shirts of very poor people, and for the linings of garments, like the thin hollands), which form a considerable part of the cargo of the ship from Philipinas, are so well imitated that they would and do check a rise in the prices of the cotton goods from China. In this City [of Mexico] all the raw silk which comes from Philipinas (a sufficient amount, so that the fleets [from España] do not bring it) is worked up, and in this industry many poor persons are employed, thus obtaining a suitable means of livelihood; and the fabrics which are made by them are consumed in this kingdom only." With these restrictions and precautions, the viceroy would recommend that the regulations of 1726 continue. He would also remit the payment now made by the citizens of 20,000 pesos annually to the treasury; but this loss, and that in the customs duties from the lack of the Chinese silks, would be recompensed by the better sales which would thus be afforded to the Spanish silk goods. In January, 1732, the viceroy consulted his fiscal, who thought that the Manila trade should be restricted, say to a million pesos of investments, and prohibiting the Chinese silks; that this would benefit the Spanish traders, and would also secure the opening of Peru to trade with Nueva España. In the following month, the viceroy called together a junta of auditors and other experienced persons to discuss this subject; they favored Manila, and advised that no definite action be taken as yet. The viceroy, hearing that from Mexico and other cities more than 1,500,000 pesos in silver was being sent to Acapulco, presumably intended for Filipinas, felt the necessity of taking measures to prevent the despatch of too much merchandise from Manila in the future galleons, since the five years' term allowed to that city would expire in 1733. He therefore referred to the junta the question whether he should write to Manila that the galleon of 1734 must come with a cargo in accordance with the former plan of 300,000 pesos' investment and 600,000 for returns; and whether he should enforce the decree of 1720 by prohibiting that galleon from carrying any Chinese silks. The junta decided both these questions in the affirmative, advising the viceroy to notify Manila accordingly--these regulations to be made, provided that the king meanwhile did not give new orders. The viceroy therefore sent despatches to Don Fernando Valdés Tamón, the governor of Filipinas, and to the city of Manila, to that effect (March 20 and 25, 1732); [3] and on April 3 following sent a report of all these proceedings to Don Joseph Patiño. He recommends that Manila be allowed only 3,000 piezas in all, of which only 100 chests be permitted for the finer grades of cotton goods, entirely prohibiting the silk goods from China, except those mentioned in his letter of November 1 preceding; that besides the 3,000 piezas, the citizens be allowed to send wax and porcelain at their pleasure, as these are commodities of little value, and needed by Nueva España; that any smuggled silks be publicly burned, and very rigorous penalties imposed on transgressors; that more rigorous inspection of the lading be made at Manila, to prevent any contraband goods being sent, not only in the shipments of traders, but in the chests of passengers, officers, and others on the galleons; that suspected packages be opened at Acapulco; that the returns sent back to Manila be in no case allowed to exceed a million of pesos; and that the contribution of 20,000 pesos be remitted to the Manila shippers.]

186-188. [The viceroy's letter was referred to the royal Council; the deputies from Filipinas--at that time, Lorenzo de Rugama y Palacio, and Miguel Fernandez Munilla--thereupon asked for all the documents belonging to the Council which bore upon this subject; the Council consented (March 26, 1733) to do so, with the reservation of certain documents, and the deputies then drew up a long memorial protesting against the proposed restrictions on their commerce.]

189-190. [This memorial may be "reduced to five points: In the first it is proved that, for the preservation of the islands, and the propagation of the Catholic faith in them and in the adjoining regions, their commerce with Nueva España is necessary. In the second, it is declared that for the above result it is necessary that the commerce be carried on and allowed with a capital corresponding to the returns of 1,200,000 pesos every year. In the third, it is made plain that returns to that amount are impossible, if the traffic in the silken fabrics and goods from China, and their transportation, are prohibited to the merchants of Manila. In the fourth, it is demonstrated that no value should be attached to the exaggerated statement that damages will ensue to the commerce of España if that of Manila be allowed to embark and convey silk fabrics to Acapulco. In the fifth, it is explained how desirable is the continuation of the last regulation of the commerce, granted to the islands in the year 1726; and the advantages which result from that ordinance, notwithstanding the representations made by the viceroy." This memorial presents a brief résumé of the various royal orders and decrees and the principal events connected with the Manila-Acapulco commerce during its history, from 1587 to 1726; another, of the investigations made by the viceroy of Mexico regarding the galleon of 1731; and another, of the proceedings of the junta which he called together for discussion of the measures to be taken regarding the galleon of 1734. Then the above five points are considered seriatim, and at considerable length--mainly by restating and enforcing the arguments formerly employed, rather than by adducing new ones. In section i, the king is reminded that the islands serve as a safeguard and defense to Nueva España, and have kept the foreigners, infidels, and pagans of the East from getting a foothold therein by way of the Pacific coast; and it closes thus: "Thus, Sire, if this commerce ceases--the only foundation on which rests the maintenance of these islands--the Spaniards will abandon them; without their protection, the [religious] ministers will be persecuted to the utmost; the works of piety and charity in which the holy house of La Misericordia and the other foundations in Manila distribute enormous sums will cease; the religious orders will be reduced to uselessness; those villages will be desolated, by which your Majesty will lose many vassals; the foreigners and infidels adjoining those countries will make themselves masters of the islands; and (which is most cause for grief), when the fortunate advancement of our religion which has been secured there ceases, those who had embraced the faith will go to seek their living in the lands of the pagans, with evident risk of relapsing into the errors which they had detested. These dangers are worthy of the profound consideration of your Majesty, and cannot be averted if the commerce of Philipinas with Nueva España fails." In section ii, the deputies protest against the returns of 1731 being made the standard for the regular value of this commerce, as the gains of that year's Acapulco fair were phenomenally large. They declare that in order to maintain themselves they need not less than 1,200,000 pesos annually, especially as the number of citizens in Manila is now larger than in former years--in view of which, the amount for which they ask is very moderate, being even less in proportion than it was then. The following statements of population are interesting: in 1636-37, the number of Spaniards in Manila was 230; in 1702, there were 400; and in 1722, 882, a number which has since increased [this memorial being prepared in 1733]. What Manila asks will barely allow to each inhabitant, on the average, an investment of 800 pesos, which is hardly enough for a decent mode of living. What encouragement does this give to Spaniards to settle in such a country, and how can they thus better their fortunes? The opinions of various high officials (including viceroys of Mexico) are cited in support of this claim. Not only the Spaniards who are citizens of Manila are to be considered in this question, but the two millions of Christian natives who depend on the Spanish power, not to mention the 1,500 ecclesiastics who are occupied in maintaining the Catholic faith in the islands. In section iii, it is argued that the people of Filipinas must be allowed the trade in Chinese silks in order to secure any profit from their commerce. Manila claims that the restrictions imposed by the decree of 1720 were procured by the efforts of Cadiz, without the consent of the people of Filipinas, to whom those restrictions brought much distress; that the Acapulco trade was granted to them in the first place in order to attract Spaniards as colonists, in order that intercourse with them might be the means of entrance and extension for the Catholic faith among pagans and infidels; that España produces hardly enough silk goods for its own consumption, and imports much from foreign countries, so that there is no just reason for prohibiting this trade to Filipinas. "Since what the Sangleys chiefly trade in is the silken fabrics and ribbons, if the shipment of these goods to Nueva España is forbidden that is the same as prohibiting intercourse with the Sangleys, because the consumption of the said silks and ribbons is very small, or not any, in Philipinas." The customs duties and alcavalas on the silk trade at Manila amount to some 40,000 pesos a year, which would be lost to the royal treasury by the failure of that trade; it will also have no means with which to buy the rice produced by the Indians. No profit can be made on the linens and other common fabrics prescribed in the decree of 1720, as they are of little esteem in Nueva España, and the demand for them is small, as also is their value, "since in one bale of these goods only the value of sixty or seventy pesos can be contained." If at the Acapulco fair these goods, even when the amount shipped is uncertain, bring prices so low that there is but little profit over the duties, freight-charges, and other costs, it may be imagined how unprofitable this sort of investment will be when (if that decree be enforced) the buyers there regard the cargo as composed mainly of these goods, "and the venders are not able to practice the maxim of concealing the [amount of the] merchandise, in order to secure the highest price for it, its abundance, which lowers the price, not being known." The sayasayas and hose, the only form of silk fabrics permitted to Manila, are productive of but little profit; and even that would be entirely lost if they were shipped in large enough quantities to complete the amount of investment allowed to Manila, for the prices in Nueva España would thus be greatly lowered. Even if this were not so, one voyage of the galleon would so fully provide the warehouses of Mexico that no more would be needed for the next three or four years, which would ruin Manila's market for these goods. It is impossible that of these bulky goods any adequate quantity could be shipped within the number of piezas at present allotted to the citizens of Manila, which, indeed, is all that their one galleon can carry. Manila claims that the viceroy had no right to give the order regarding the galleon of 1734, and that both he and the junta rashly assumed that the prosperous Acapulco fair of 1731 was the standard by which to judge the results of that commerce--when in reality that was an accidental and unusual success; nor did the royal officials of Acapulco propose that the trade in Chinese silks should be prohibited to Manila, but only that the number of 4,000 piezas allowed it should be reduced. Section iv refutes the arguments brought forward by Andalusia against the trade in Chinese silks as injuring Spanish trade and manufactures, declaring them to be exaggerations and misrepresentations of the real facts. "It has very recently been made evident by that very commerce [of Cadiz] that the fabrics of España are not able to supply those provinces [of America], by the fact that in the company which, with the name of 'Philipinas,' has been established in the city of Cadiz, by royal decree of March 29, in this present year of 1733, among the articles and agreements which have been set down therein is one providing that in each ship of those which (without limitation) may be allowed to them for their traffic the silken fabrics from China may be freighted, to the extent of fifty toneladas, a little more or less; and, bringing those goods to these kingdoms [of España], they may sell them therein--not for consumption here, for this is prohibited; but that they may export those goods to foreign countries and to America, where they may be sold and consumed. From this it is evident, in spite of the complaints which the commerce of Cadiz has so often repeated on this point--while the merchants of Manila have never consented to this company, rather, always protesting and speaking against it, and when what may be offered to them is found by experience to be prejudicial to the preservation and maintenance of those islands--that the silk goods which are made in España are of so small amount that they cannot supply America, nor can those of China injure the consumption and satisfactory disposal of the Spanish goods." [4] Manila claims that this new company will draw from the Spanish empire a much greater quantity of silver for the benefit of infidels than Manila can spend in buying the goods which have been sent thence to Acapulco; and that Cadiz has no room for complaints against the other commerce, since its own merchants are interested in this company--and all without the weighty motives which led to the concession of the Philippine commerce, the propagation of the Catholic faith, the preservation of the Spanish power in Eastern Asia, and the advancement of the Christian religion there. The establishment of this "Royal Company of Philipinas," in which traders of Cadiz have shares, shows plainly that all their complaints against the injuries to Spanish commerce from the Manila silk-trade were "merely a pretext for their securing the slender profits which that trade yielded to the islands." The trading-fleets and galleons which are sent out from Cadiz every two years are laden mainly with products made by foreign nations--English, Dutch, Genoese, Venetians, and others--and this traffic alienates from the Spanish crown each year more than eight millions of pesos; and even greater drain of money results from the traffic which those foreign nations carry on in the Indias. [5] Much more money is taken out of Nueva España by the Spanish trading-fleets, laden mainly with articles produced by foreigners and shipped thither by the merchants of Cadiz, than by the Manila galleon which carries thither goods bought from the Chinese. In the former case, the money is used to injure and harass the Spanish power; in the second, it goes to the Chinese, who are able neither to invade Spanish territory nor to aid the enemies of the crown. These foreign trading nations, moreover, carry to China and other countries of Eastern Asia more than four millions of pesos of Mexican and Peruvian coinage, which they spend there for the purchase of silks and other commodities, "in order to introduce these goods into the Indias, either illicitly or through the agency of the traders of Cadiz." In the junta convened by the viceroy of Mexico in February, 1732, one of the leading arguments for continuing the increased permission to Manila was, "that the returns of silver produced by the fabrics of foreign manufacture which the aforesaid [traders of Cadiz] send in fleets and galleons to the Indias were in tens of millions, which from the ports of España pass to foreign dominions, and from these to the infidels of the Orient." The aforesaid Company of Philipinas has obtained permission that in each ship sent out by its members (the number of vessels not being limited) they may convey, besides the goods, the amount of 500 pesos fuertes in silver money--more or less, according to the needs of their business--to be invested in Oriental goods, with freedom to change for gold any surplus that may be left of that capital. [6] This permission leads to the drain of much silver from the country, opens the door for great frauds, and is manifestly unfair to Manila if the latter is to be deprived of its China trade. As for the ruin of the silk industry in España, "the city of Sevilla itself openly confessed (in a memorial dated April 24, 1696) that the ruin of its looms and the deterioration of its commerce arose from the single cause of the manufactures which the French, English, and Dutch had, since the middle of the past century, introduced into their dominions, and from the lack of assiduous industry in the natives of these [kingdoms of España]; and that for this reason those peoples carried to their own countries our wools, in order to return them in the shape of cloths and other goods, which their industry was able to manufacture from those wools. The same thing occurs with the silks which (as we are experiencing) they are introducing into these kingdoms, [made] from the [raw] silk which they obtain here; and they sell in the Orient various stuffs and fabrics, with which usually the people of rank in these kingdoms are clothed; and such people in the Indias wear the goods which the merchants of España convey in fleets and galleons--as may be known by the books of the customs duties, in which appears all the above, and the increased amount of silken fabrics which the foreigners are introducing through the port of Cadiz, and others that open on the Mediterranean Sea." Cadiz is reminded that its commerce penetrates into Peru, Buenos Ayres, Honduras, and other regions which are forbidden to Manila; that it has no more successful fairs in Peru than in Nueva España (indeed, obtaining even larger profits in the latter country); notwithstanding the alleged ruinous competition of Manila; and that the contraband trade carried on in the Western Indias by the foreign industrial nations causes far more damage to Cadiz than does the small amount of trade allowed to Manila. Cadiz has made no complaint against the shipment by Manila of stuffs from India and spices, doubtless because the prohibition of these would injure the trade of the English [7] and the Dutch, from whom Manila buys those goods, and whom Cadiz favors and tries to enrich at the expense of the Philippine vassals of the crown, regardless of the injurious effects of such procedure on the propagation of the faith and the welfare of the former heathen who have been converted to it in the East. Manila asserts that the necessity of buying Chinese goods for the maintenance of the islands, and the increasing competition of the European nations in Eastern markets, have so raised the prices of those goods that Manila no longer can obtain the large profits which they formerly brought in Nueva España, but must now sell them at a very moderate advance over their cost (including of course therein transportation, duties, etc.). The prompt despatch of the Manila galleon from Acapulco has been caused mainly by the necessity of its sailing at certain times to secure favorable winds and weather; but this haste has been an injury to the Manila shippers, "for it hinders them from selling their goods at a higher value, so they often dispose of them, for this reason, at the prices that the Mexicans are willing to pay for them, and at other times leave them for sale on commission [en encomienda], with the danger of losing them, and with the evident arrearage which is caused to the shippers by the lack of the money [which should have been received] from their sale, for use in their investments in the following galleon." The memorial concludes with section v, in which Manila urges, in view of all the foregoing, that the permission of 1726 be continued to the islands, and consequently, that the recent orders of the viceroy of Nueva España regarding the lading of the next galleon be revoked. These orders were at least premature, as the shipments from Manila under the new permission did not begin until 1730, so that the galleon of 1734 was entitled to a cargo of the sort allowed therein; moreover, the viceroy acted against the advice of the junta which he had convened to discuss this question. Manila claims that in 1732 the galleon did not carry back to the islands even what they needed for their maintenance, the returns from its cargo (although that contained the 4,000 piezas of permission) amounting to only 1,100,000 pesos; and in the present year of 1733 the returns will be hardly one-half of what the shippers received, on the average, in the years preceding the new permission--the Acapulco fair being a poor one this year, on account of the large cargoes brought by the fleet from Cadiz, and the large amount of fabrics brought by "the English ship." Manila needs 1,200,000 pesos annually, at the least; and in order to secure that amount needs the extension of trade permitted in 1726. The returns of 1731, as has been proved, cannot be taken as the measure of its value, especially when allowance is made for the possibility of storms, shipwreck, or other disaster to the galleon. Manila also asks that if the returns should fall below 1,200,000 pesos, its annual contribution of 20,000 pesos to the royal treasury be dispensed with. The king is reminded of the great services which the people of Filipinas have always rendered to the crown, in opposing the encroachments of the Dutch and others against the Spanish power in the East, in defending the natives of the islands against the Moro pirates, in contributions for building royal ships and for meeting other pressing needs of the royal treasury, and always freely offering their lives and their property for the defense or aid of the crown--to say nothing of their devotion to the observance and extension of the Catholic faith, their support of missionaries, and their zeal in converting the heathen. Manila asks for the extension in perpetuity of the permission of 1726, with various minor concessions; if this be not granted, then it is asked for another five years, with the proviso that no change be made at the instance of Andalusia only, or without opportunity being given to Manila to express its wishes and set forth its needs.]

191-192. [This memorial was sent by the Council to the fiscal; his reply was handed in on November 10, 1733. He thinks that the islands need indispensably the traffic to Nueva España, including the Chinese silks, notwithstanding the remonstrances of the viceroy of that country; and that the prohibition made by the latter ought to be raised. Moreover, he finds that the royal treasury is the gainer by the new arrangement: the duties up to 1702 amounted to 74,000 pesos, and from that time to 1729, to 100,000 pesos; but in 1730 (the first year in which goods were shipped under the permission of 1726) the duties, including the 20,000 pesos of contribution, were 202,754 pesos, and in the following year 229,552 pesos. He would not make a positive regulation regarding the Manila-Acapulco trade until the five-years' term is completed; but he makes the following recommendations: that the commerce be free in all kinds of goods, not excluding the Chinese silks and ribbons, but that the lading of the galleon be restricted to 3,600 piezas, of which 400 may be in those silk goods and others which do not allow the use of the press; and that the duties on all packages be the same as those specified in the decree of 1726, and that Manila be freed from the contribution of 20,000 pesos. He also recommends that Manila be allowed to send wax in cakes of eighteen (instead of twelve) arrobas net; and that his proposed arrangement be put in force for five years, in order to test its practicability--or, if the king so prefer, that the decree of 1726 be extended for another term of five years.]

193-197. [In this place is presented the informatory report of the royal accountant at Mexico to the viceroy in 1730, because it is frequently cited in this controversy; but it is concerned mainly with the size of the packages on the Manila galleon. [8] It appears that these were measured by the vara de Ribera, [9] instead of the Castilian vara, the former being "longer than the Castilian, by four dedos and part of another;" but allowance was afterward made for this difference. Ardila, the accountant, also recommended to the viceroy the enlargement of Manila's permission to 1,200,000 pesos of returns, and the reopening of the commerce between Nueva España and Peru. The royal Council discussed the fiscal's reply and other documents, and advised the king (December 19, 1733) to order the viceroy to recall his obnoxious orders relative to the galleons of 1734 and succeeding years, and to regulate the cargoes by the decrees in force from 1712 to 1720--"excluding absolutely the regulation of the permission by piezas, and commanding that this be made in future strictly by invoices and sworn declarations." The ministers did not agree on the question of the amount of returns to be permitted to Manila, five being of opinion that no change should be made in the allowance of 300,000 pesos of investment and 600,000 of returns, and the five others advocating an increase to 500,000 and 1,000,000 pesos respectively. (The names of the first five are: Don Manuel de Sylva, the Marqués de Almodobar, Don Antonio de Sopeña, Don Fernando Verdes Montenegro, and Don Francisco Antonio de Aguirre; of the last five, Don Diego de Zuñiga, the Marqués de Montemayor, Don Matheo Ibañez de Mendoza, Don Antonio Alvarez de Abreu, and Don Joseph de Valdiviesso. Abreu was the compiler of the Extracto.) The reasons for each of these opinions are given in detail.]

198-200. [When this opinion was ready to be sent to the king, letters arrived from the governor and Audiencia of Filipinas, remonstrating against the orders of the viceroy regarding the galleon of 1734. At the same time, the Manila deputies at Madrid presented another memorial to the Council, which accordingly held a new conference over this matter. On December 23 (after having consulted the fiscal), they reported to the king their opinion, which they said had not been changed by the aforesaid despatches. The king approved of their advice in regard to recalling the viceroy's orders, and in regard to the controverted point of the amount which should be allowed to Manila, he approved the opinion of Zuñiga and his associates, that of the increase to 500,000 and 1,000,000 pesos. The letters from the governor and Audiencia ask that the cargoes be estimated by piezas, and propose 300 or 400 chests of Chinese silk goods, instead of the 500 formerly asked; the memorial of the deputies urges that the sales for the first three of the five years had averaged only 1,350,000 pesos, and the succeeding ones could not exceed 1,200,000 pesos, which latter sum was necessary for the preservation of the islands.]

201-212. [On February 23, 1734, the Manila deputies presented a new memorial, under eight heads, making various minor requests in regard to the new regulation for the commerce, some of which were granted, and some refused. On April 8, a royal decree was issued making such regulation; [10] after briefly reviewing the various proceedings and documents which had appeared since the decree of 1726, command is given that the viceroy's orders be revoked, and the commerce continued in accordance with the decrees of 1702, 1712, and 1724--prohibiting the valuation on the basis of piezas, and prescribing that this be accomplished by invoices and sworn declarations; and increasing the amount of the trade permitted to Manila to 500,000 pesos of investment and 1,000,000 of returns. As for duties, they shall be paid as commanded in the decree of 1702 (which fixed 100,000 pesos as the amount to be paid at Acapulco for the round trip of the galleon), pro rata therewith on the increase from 300,000 to 500,000 pesos; but this shall be paid as required duties, and not under the name of indult. No alcavala shall be paid on sales at Acapulco, but it shall be paid on goods which shall first be sent to other provinces of Nueva España. The duties are estimated on the basis of about 17 per cent of the returns on the cargo, and as the king pays "the cost of the building, careening, and repairing of the ships, the pay of the crews and officers, and the provisions, supplies, and ammunition needed for each voyage, without receiving more than 44 ducados for each tonelada of the lading allotted, not only will there remain no profit to my royal exchequer, but it will be necessary that it supply a considerable amount in order to maintain and preserve this traffic and commerce to the natives of Philipinas, which is all the bounty that my royal munificence can exercise;" but if the Manila shippers do not wish to accept this adjustment of the duties, they can (as before) pay the exact amount of the duties on each consignment of goods, without any dispensation or remission. No one to whom space has been assigned may transfer it to others, save in the case of poor persons and widows. Any excess of returns over the 1,000,000 pesos shall be divided among the shippers pro rata on their allotments of space and valuations of goods at Manila, and they may carry it back in products and commodities of Nueva España, but not in money; if the returns fall short of the above sum, the deficiency shall not be made up, the royal officials being strictly forbidden to allow any infraction of this rule. Citizens of Nueva España are prohibited under heavy penalties from participating in this trade as shippers, of either goods or money. The measures used in regulating the size of packages shall be those which the Manila shippers have been accustomed to use, allowance having been made for the difference between these and the Castilian standards, as decreed in 1702 and 1733. The committee of distribution at Manila shall be composed of the following persons: the governor of the islands; the senior auditor of the Audiencia, or, as his substitute, the auditor next longest in service; the royal fiscal; the archbishop of Manila, or, as his substitute, the dean of the cathedral; one of the alcaldes-in-ordinary, and one of the regidors, of the city of Manila; and one of the eight arbitrators [compromissarios] who compose the commercial body [11] there--provided that the regidor and the arbitrator be chosen in turn, so that this duty shall fall, successively, on all the members of those respective bodies. Despatches to this effect were sent to the officials of Mexico, Acapulco and Filipinas. (The compiler of the Extracto thinks it worth while to call attention to the opinion of the royal fiscal of Mexico, given upon reading this decree, that it was "a just one, and generally advantageous to both commerces.")]

[At this point (fol. 214 verso-264) is inserted the Memorial informatorio presented to the Council of the Indias in 1637 by Juan Grau y Monfalcón, procurator-general for the Philippine Islands at the court of Madrid; we have already published this document, in our VOL. XXVII, pp. 53-212. Abreu says that he places it here (as "an appendix to Period ii") simply because he did not find it until after the fortieth sheet of the Extracto had been printed; and he speaks of it as "treating of the subjects of that undiscovered memorial" of 136 numbers which was cited in "Period ii" of the Extracto (see our VOL. XXX, p. 25)--"plainly showing that whatever discussion of this matter has occurred in these late years, and what will be said in the future, in regard to the commerce of that region is new talk, but not talk of a new thing [es decir con novedad, pero no decir cosa nueva]." For "Periods i and ii" of the Extracto, which, with Monfalcón's memorial, should be read as a preliminary to the present summary of that work, see our VOL. XXX, pp. 23-109. Cf. the earlier memorial by Monfalcón (1635) in VOL. XXV, pp. 48-73.]

PERIOD X

Relation is made of what occurred in regard to this commerce from November in 1734 until the present month of May in 1736, with occasion of the petition made by the consulate and commerce of Andalucia, proposing to surrender to that of Manila the traffic and transportation of all the cinnamon, pepper, and cloves which the kingdom of Nueva España can consume; and that Manila may ship the chintzes (of fine, middling, and ordinary qualities), and the silk, raw and spun [beneficiada], if these are separated from the commerce in the silken fabrics and ribbons of China.

215-221. [It was supposed that the foregoing decree had settled the question of the Manila-Acapulco trade "for many years;" but on November 27, 1735, the king sent to his Council a memorial by Don Joseph Lopez Pintado, consul and deputy of the commerce of Cadiz, and an informatory report which had been made on that subject by the lieutenant-general of marine, Don Manuel Lopez Pintado; on these papers the king asked for the advice and opinions of the Council. The memorial of Cadiz states the two main points of the controversy: the first is, whether or not the commerce of España is injured by the inclusion of the Chinese silks and ribbons in the cargo of the Manila galleon. Cadiz has long claimed that this was so, while Manila answered that that trade was necessary for the maintenance of the islands, "and for the propagation of the holy gospel in them"--which argument, Cadiz says, "has always been the Achilles to oppose the just representations of the commerce of España." The second point is whether, if the silks are prohibited to Manila traders, any goods of equal value remain to them by which they can secure the returns which they claim to need. The first point is stated as in previous remonstrances, that the Manila trade in Chinese silks has ruined both the sale and the manufacture of Spanish silks, especially since the execution of the decree of 1724; the latter goods can now find no market in America, for the Chinese silks have made their way not only into Nueva España but into Peru, the colonies on the northern coast of South America, and all the Windward Islands, "nor can their importation be checked by all the efforts and vigilance of the officials." Manila has probably abused the royal liberality and has transgressed the limits of its permission; for the deputies and appraisers there have valued the goods so low at Manila that at Acapulco they obtain for them three or four times the amount permitted to them by royal decree--for confirmation of which statement is cited the report made by order of the viceroy of Mexico, on August 23, 1731, by Don Francisco de Fagoaga, one of the leading merchants of Mexico, who was a witness of this infraction of law. It is these abuses of the Manila permission which aroused the viceroy to issue the orders of 1732, hoping to check the illegal excess therein. Cadiz now offers to surrender to Manila "forever the traffic and transportation of all the cinnamon, pepper, and cloves which the kingdom of Nueva España can consume," as also all the trade in chintzes of various qualities, and in silk raw and spun; in these Manila ought to find sufficient compensation for giving up the silks, but, even if it does not, its losses cannot compare with those of España from the permission given to Manila to trade in those goods, and the interests of the former ought to be preferred. General Pintado's informatory report makes a bitter complaint of the frauds and infringements in the Manila permission to trade. [12] He states that in the first galleon sent to Acapulco under the regulation of 1726 (which entered Acapulco in the year 1729) [13] goods were confiscated by order of the viceroy to the following amount: 285 bales, 49 bags of cinnamon containing 7,105 libras, more than a thousand arrobas of wax, nineteen chests of silk fabrics, and many other goods. In the second galleon (that of 1730) were confiscated 319 bales, and 694 piezas of various bulky goods--cinnamon, wax, pepper, storax, and porcelain. Cadiz claims that at first (about 1690) the Chinese goods carried to Nueva España were in so small quantity and so inferior quality "that no one valued such goods; nor did these injure the commerce of España or its manufactures, until, two ships of Philipinas having been wrecked, that same viceroy [Conde de Galvez], as a measure of precaution, despatched General Don Andrés de Arriola with a patache to ascertain the cause for the delay in the arrival of those ships; and, that commander having returned to Acapulco in the following year, 1692, with this occasion the citizens of Mexico promoted the plan of furnishing capital for another new ship. Various citizens of Mexico, and others from Perù, went thither, and, carrying specimens of our [Spanish] fabrics, started the establishment [of factories] in Pequin, Cantòn, and China; [they also set the Chinese to work] to make these goods of finer quality, and to manufacture fabrics like those specimens, and of the same quality. Both qualities were introduced [into Nueva España] by that ship and by those which regularly followed it, in proportion to the amount that they found to be consumed in Nueva España; and this was considerable, on account of the fact that four years intervened between the trading-fleet of Conde de Sanrrami and that of Don Ignacio de Barrios, and seven years from that of the latter to the fleet of Don Manuel de Velasco and its return to España. That was the time when the traders of Philipinas reached the height of their traffic in the silk fabrics; and, finding in those years that there was no trading-fleet in Nueva España, they gathered in the rich treasures against which the consulate and commerce of Andalucia have with reason remonstrated." Pintado declares that he has been an eyewitness of these things ever since 1692, and that only during that time has Manila enjoyed this silk trade which it now claims as belonging to it by free possession and long usage. Cadiz has frequently protested against the injury thus caused to the silk industry of España, but has not before exposed the real condition of affairs; but, "even if the 300,000 pesos of the permission which was granted and enjoyed up to the year 1728 inclusive had all been spent for goods of the silk made in China, without [the galleon] carrying anything else, at the prices which they were fairly worth in Manila, and even if twice as much were furnished at these prices, how was that trade [of Manila] capable of supplying [with those goods] Nueva España, the Windward Islands [Islas de Barlobento], the new kingdom of Granada, Tierra-Firme, and Perù, as we have seen for the last forty years, when, as those who are intelligent [in these matters] understand, it is not possible to do so even with two millions' worth of goods of the said class?" Manila is accused of fraud, bad faith, and deceit in the conduct of that trade and in misrepresenting it to the government; and the royal officials, of collusion in the illegal trade, and disobedience to the royal decrees which commanded that the original invoices and sworn statements of goods should be sent to the Council of the Indias. The only way to check this procedure is to prohibit entirely to Manila the trade in Chinese silks; and Cadiz offers to make up this lack by ceding to Manila the entire spice trade in Nueva España. The following estimate, based on the amount of spices carried thither by the trading-fleet, is made of the value of this trade: Of cinnamon, that country needs 250,000 libras annually, which, estimated at eight silver reals a libra (although it has been worth at Manila nine reals), would amount to 250,000 pesos; 100,000 libras of pepper, at one silver real in Manila, 12,500 pesos; 10,000 libras of cloves, at twelve reals, 15,000 pesos; in all, 277,500 pesos, which is somewhat more than half of the amount of investment now allowed to Manila. "It is certain that if only the merchants of Philipinas trade in these commodities, they will advance the price more than 150 per cent, obtaining their money in Acapulco." Besides the spices, they have permission to trade in many other commodities which are generally desirable for the trade with Nueva España, where the consumption of these is great; and there is more than enough of these to fill out the 500,000 pesos' worth of goods allowed them. The result of this arrangement would be to revive the ruined silk industry of España (and "experience makes it plain to us that there is no other fabric than silk, of our own weaving, which can produce any profits"), besides retaining within the domains of España the money which now goes to heathens and infidels. "While the commerce of Philipinas shall last, as it is now carried on, neither the conquests, nor the reduction of the Indians, will proceed with the increase that people confidently believe; but rather these will be diminished," because the Spaniards who have money care only for commerce and not for the propagation of the faith. This is proved by their neglect of the interests of the natives in Luzón; for "we do not see that the Spaniards apply themselves to what is so much their obligation, since they so loudly profess it; and consequently they will not reëstablish the manufactures of cotton fabrics, which can very well be done in those same islands--by which industry the natives furnish this product, and others which are yielded there can be more easily obtained; and in this case it would be money for those citizens if they would apply themselves to this enterprise, instead of the commerce which they have with the Chinese and other infidels." These papers were, as usual, sent to the fiscal, whose reply came before the Council on January 8, 1735. He disapproves the proposals of Cadiz, since the prices of cinnamon and other commodities are liable to fluctuation, and the amount of profit for Manila would be uncertain and variable; cinnamon is a bulky product, and the necessary amount could not be carried in the galleon now assigned to the Manila trade; the merchants could not be sure of a favorable sale at Acapulco, "which at the fairs is secured by the diversity and abundance of commodities;" moreover, the Dutch, from whom the cinnamon was bought, would raise its price as soon as they should learn that the Spaniards of Filipinas were the only ones to whom was permitted the shipment of spices to America. If the Manila shippers failed to secure the full amount for returns, the royal treasury would not receive as much from customs duties as usual, and must therefore make up the resulting deficiency in the situado sent to the islands. "It would also follow that even if the merchants of España should religiously observe the agreement which they propose, of not trading in that merchandise, the illicit importations into that kingdom [of Nueva España] would be attempted with even greater activity; and as in that country there is so general a use of chocolate, in the manufacture of which would be consumed the greater part of the cinnamon, all that extensive kingdom would find itself compelled to buy [cinnamon] at one port only, and through one agency--being always exposed [to the danger] that in a year when the Philipinas ship could not make the voyage (as has happened), or encountered mishaps through accidents which might occur, that country would experience the deprivation of this article of sustenance, or at least a great scarcity in a commodity so generally used, as is well known." The fiscal also reminds the Council that the trade in spices may be shared with the Royal Company of England, which is "authorized to trade, in its annual ship, in the goods which it shall choose, in which it could include the cinnamon, and through this agency introduce it into Mexico; in this it would seriously injure the commerce of Manila during all the time which remains for the fulfilment of this agreement, and would be opposed to the freedom of his Majesty in proroguing it, or making it anew with some other power. Such action could not be hindered by the commerce of España, and as little by the Royal Company of Cadiz, founded by his Majesty on March 29, 1733, which could introduce this commodity into Mexico." The fiscal recommends that a junta be convened in Mexico to discuss this subject, and give their opinions and advice thereon to the Council; and that Manila and Cadiz be invited to send representatives to this conference. On February 9 the Council agreed to send to the deputies of Filipinas a copy of the Cadiz memorial, with a statement of the arguments advanced by General Pintado (but suppressing the name of the author), in order that they might answer it.]

223-224. [The Filipinas deputies made answer to this attack by Cadiz, in a long memorial dated March 30, 1735. Manila claims to have enjoyed the possession of the silk trade with China from the discovery of the islands, and that these goods were never excluded from its trade with Nueva España--to which country that trade was not confined until the decrees of 1587-93--until 1720, when, at the instance of Andalusia, a prohibition of the Chinese silks was made, although it lasted only four years. The charges by Cadiz of frauds in the lading of the Manila galleon have no foundation in fact; the cited statement by Don Francisco Fagoaga does not appear among the documents on the subject, and is "a fanciful supposition;" and the valuations are made by appraisers appointed by the governor of Filipinas, under their solemn oath to fulfil their duties faithfully and well, while the royal fiscal acts as superintendent of both the valuations and the lading. Manila's former assertions refuting in detail, and with citations from the official records of Manila and Acapulco, the accusations of infractions and excess of the permission, are repeated here, as also the statements regarding the Mexican junta of 1732 and the concessions made to the Company of Philipinas, formed among the Cadiz shippers. The overstocking of the markets in Nueva España is caused, not by the silk goods shipped from Manila, but by the enormous quantities of cloth and stuffs (largely manufactured outside of España) sent to that country by the Cadiz merchants; they have sent eighteen or twenty ships [14] in each fleet, although formerly there were but ten or twelve--"on account of which excess his Majesty has finally resolved that only eight shall go in the next armada, without doubt because of the great outcry regarding this by the commerce of Mexico." Moreover, those same traders of Cadiz have secured the concession of fifty toneladas of Chinese silks for each ship that they may send out, to be sold in America; the little that is shipped from Manila ought not to be considered in comparison with that traffic, and is intended, besides, for the poorer classes, who cannot afford to buy the more expensive fabrics. If the Western Indias have been inundated with Chinese silks, it is caused not by the shipments from Manila, but by the great trade in these goods which is carried on by the English and Dutch, who have factories and warehouses in Jamayca and Curazau [i.e., Curaçao], which they supply from China and other Oriental countries with fleets of more than forty ships, and trade those goods in the American islands (as Cadiz is well aware). As for the offer of Cadiz to yield to Manila all the trade in spices to Nueva España, that trade has never been prohibited to Manila nor has it been the exclusive privilege of Cadiz, so the offer amounts to nothing. Nor has Cadiz any right to dictate to Nueva España its source of supply for spices, since both the English and the Cadiz companies have the privilege of trading there in these goods; moreover, large quantities of pepper are produced in the Mexican districts of Chiapa and Tabasco; both these causes tend to injure the sale of spices carried from Manila thither. As these spices (except pepper, which has but little value in any case) are monopolized by the Dutch, they are likely to refuse to sell them to the Filipinas merchants (as has occurred frequently before), because the Dutch need them for lading their own fleets; or they will raise the prices, supposing that Filipinas must buy from them. The cinnamon is so bulky (as it cannot be pressed) that much space on the galleon is thus lost, as well as by the necessity of carrying two-thirds more ballast than usual, because of the light weight of the cinnamon; and the voyage of the Manila galleon is incomparably longer, more difficult, and more perilous than that of the Spanish ships to America. The amount of spices allotted to the galleon by Pintado would fill all its available capacity, leaving no room for any other goods; and it would be impossible for the shippers to secure any profit from such a cargo--for which they could not find a market in Nueva España, for lack of the other goods. Nor would it be possible to dispose of more than half the amount of pepper and cloves which Cadiz proposes for them, since that is enough to supply the needs of that country. In any case, the profit on the spices will be insufficient, if Manila is restricted to these goods, without the silks, to produce the amount which those islands need for their support. This is proved by tabulated statements of the prices, costs, and returns on each one of the three kinds of spices concerned; these we present here in somewhat condensed form. A churlo [15] of cinnamon, of the measure which the commerce of Manila orders to be observed, weighs 150 libras gross, but the net weight is twelve libras less, after deducting the weight of the coverings and wrappings. The cost in Manila is nine silver reals a libra; for the space which the churlo occupies is usually paid forty pesos; for porterage, royal duties, notary's fees, etc., 8 pesos. On the voyage it loses two per cent in weight, so that but 135 libras remain for sale; it brings at Acapulco eighteen reals a libra, amounting to 303 pesos, 6 reals. From this must be deducted the following payments: royal duties, 32 pesos; unlading at Acapulco, notary's fees, etc., 7 pesos, 2 reals; commission to the agent for its sale, at five per cent, 15 pesos, 1 1/2 reals; five per cent royal duties on shipment of the returns to Manila, 12 pesos, 3 reals; two and 1/2 per cent on the net returns, paid to the keeper of the silver, 5 pesos, 6 1/2 reals. From these figures it appears that it costs 203 pesos, 2 reals to place the churlo of cinnamon on shipboard at Manila, and 72 pesos, 5 reals to sell it and return the money to the shipper there; deducting these expenses from the amount received for its sale, the profit of the shipper is but 27 pesos, 7 reals, or about 13 1/2 per cent. Pepper: 100,000 libras of this product make 4,000 arrobas; this quantity (since each pieza is estimated at six arrobas or 150 libras, without the wrappers) makes 666 piezas. Pepper is sold at Manila at one real a libra, so that the pieza costs for purchase 18 pesos, 6 reals; it costs 43 pesos more to place it on the ship, and 18 pesos, 7 reals besides for expenses of sale and shipment of returns--in all, 80 pesos, 5 reals. At Acapulco it would sell at four reals a libra, the pieza, therefore, bringing 75 pesos; the shipper, then, instead of gaining any profit has lost 5 pesos 5 reals by the transaction. Cloves: These are packed in chests containing 150 libras each; the purchase at Manila costs twelve reals a libra, so the chest costs 225 pesos. Add to this the cost of placing it aboard, duties, cost of unlading and sale at Acapulco, and for the shipment of returns, 146 pesos, 7 reals, and the total cost is 371 pesos, 7 reals. The cloves shrink on the voyage, involving a wastage of three per cent; at Acapulco they sell at three pesos a libra, and the 145 1/2 libras thus bring 436 pesos, 4 reals--the net profit to the shipper being 64 pesos, 5 reals, or about 24 per cent. The prices quoted above are based on those which have been current in Manila and Acapulco for the past five years. It is evident, therefore, that the spice trade could not compensate in any way for the loss of that in silks; nor has Cadiz made allowance for the possible failure of a galleon to reach Acapulco, which would ruin the market for the one which should arrive in the following year, since the spices thus lacking would be supplied through the Atlantic ports of Nueva España. The customs duties would be much less on a cargo of spices, and thus impair the royal revenues; for each chest of silk pays 55 pesos for duties, and each bag of cinnamon only 35. The incomes of the Spaniards in Filipinas would be so reduced that they could no longer defend the islands from the Moro pirates, or from the Dutch, who would thus become masters of them; and the Spanish colony and the Christian churches formed among the natives would alike be ruined.]

225-233. [This memorial from the Philipinas deputies was communicated to the deputy from the commercial interests of España, Joseph Lopez Pintado, on March 31, 1735; and on the first of June following he presented another in reply, accompanied by various illustrative documents. The former arguments are repeated, but various interesting data are adduced in their support. Pintado states that the looms for making silk fabrics in España numbered more than 70,000 in the days when that industry flourished there. Nueva España was forbidden to cultivate the vine and the olive, in order to protect those industries in España. The commerce of Manila in Chinese silks has ruined the silk manufacture not only in España but in Mexico, where formerly was worked up the raw silk carried by the Manila galleon. Cadiz claims that the decree of April 8, 1734, was obtained on the strength of the representations made by the Manila deputies, without giving Cadiz any opportunity for remonstrance; Abreu furnishes at this point a marginal note to explain this, saying that the king asked the Council of the Indias to report on the matter as quickly as possible, and that the action which he wished to take brought the question back to the status which it had on previous occasions of this sort, when the commerce of Andalusia had had a full hearing; they had therefore considered it unnecessary to hear its arguments again. The enactments of 1593 are cited to show that not until then was the commerce of Manila restricted, and that because it was injuring that of España; but this and succeeding laws show that it was the royal intention to allow Manila sufficient trade to provide for its needs and support. Moreover, after the islands were conquered a large territory was allotted to Manila (as to other Spanish colonies) for its support; and in its early history these lands produced abundantly for the maintenance of the inhabitants. Besides these, the cotton fabrics made by the natives were more than enough to supply the islands, and became the basis of the exchange and barter trade with China. Manila ought to return to these industries for its support, and has no right to expect that it be supported without them. All the realms of España are under obligation to support the crown; but Manila asks the crown to support it, at the expense of great injury to the interests of España itself. The citizens of Manila have yielded to idleness and sloth, and have allowed the idolatrous Sangleys to monopolize and manage the industries and even the commerce of the islands. Some of the mestizos had erected looms for the manufacture of the finer kinds of cotton fabrics, but the Sangleys succeeded in breaking up this enterprise. A section of the memorial is devoted to proving that the permission to Manila to trade in Chinese silks has not been and is not of use for the increase and propagation of the Catholic faith in those regions, which has flourished without Manila and its commerce; on the other hand, the success and profits of that commerce have been caused largely by the work of the missionaries, especially in China. As for the Chinese who are converted at Manila (drawn thither by the opportunity for trade), they usually become Christians for selfish and worldly ends, and soon relapse into their former heathenism. They even have a proverb: "In Manila, [do] as in Manila; in China, [do] as in China." Their infidelity and atheism have a bad influence on the Indian converts, who learn many evil things from the Chinese, as also do the converts in China itself; and the citizens of Manila are reproached for their familiar relations with those infidels. They have also allowed the Chinese to get control of affairs and commerce in Manila, and the latter are living on their blood. In España, both canon and civil law prohibit intercourse with Mahometans and idolaters, and it is not long since the Moriscos were expelled from that country--notwithstanding "the great products of their industry, the tributes which they paid into the royal treasury, the commerce of the province [of Andalusia] which through them was greater than that of the other realms, and even (which is more important) their being the sheep [of the Church], which Manila says ought to be sought out and preserved; for, as it had been found impossible to secure the purity of religion by the means which the law set forth, it was necessary, in view of the duty of preserving and maintaining the holy Catholic faith in the kingdom in quiet, peace, and security, to expel and cast out those people. Accordingly, in order to preserve the faith in Philipinas, which is a matter that should receive careful attention, the prohibition of their commerce [with the Chinese] is necessary, which is of even less estimation than that of those expelled Moriscoes." In another section, Cadiz reminds the king that in the compilation of the statutes of the realm provision is made that no decree or ordinance which is contrary to law and right, or which is injurious to certain regions, shall have force; and this should apply to the decree of 1734 permitting to Manila the commerce in silks, since that has deprived the Spanish traders of their rights and privileges in the results of their commerce, and has ruined the silk industry in that country. Thus is greatly injured the prosperity of the provinces in which it was exercised; and this reacts on the entire kingdom of España, reducing so many artisans to poverty, causing them to abandon their families or their native places, and bringing many to idleness and crime. Cadiz again alleges the frauds in the Manila commerce, declaring that the goods sent to Acapulco are appraised at less than the fourth of their current value in Manila, and are sold at 100 per cent advance on that actual value; and that these illegal acts are promoted by the merchants of Mexico, in collusion with those of Manila--all of which may be proved by the documents in the archives of the Council of the Indias. This trade of Manila in silks from China enriches a small class of wealthy merchants (in both Manila and Mexico), the only ones who have the wealth to engage in and profit by it--and this at the expense of the poor and those who have but moderate funds, by absorbing the opportunities and profits in which the latter ought by right to have a share. The Chinese goods, moreover, are of poor and flimsy quality, and last only one-fourth to one-half the time that the Spanish fabrics do. Cadiz supports its arguments by many citations from the laws of the realm; among these are prohibitions against exporting the products or commodities of one province or city to another--as, no salt, wine, must, or vinegar might enter Castilla from Aragón or Navarra; and the silk of Calabria and Napoles must not be imported into the cities of Segovia, Zamora, Salamanca, Cordova, and Cuenca--although all these were parts of the Spanish empire. In line with these is the desired prohibition of the silk trade to Manila, especially since that trade is so injurious to the commerce and industry of the mother-country. In that case Manila should have (by another law cited) an equivalent benefit; and Cadiz has already proposed this, in the spice trade--to which it has a right, but is willing to cede it to Manila. The arguments brought forward by Manila as to the consumption of spice in Nueva España, the bulky character of that merchandise, the costs of transportation and sale, duties, etc., are met by Cadiz with others to refute or weaken the former. The Manila galleon brought to Acapulco in 1729 cinnamon to the amount of 99,233 libras, and in the following year 167,100 libras. The fleets from España carried thither the following cargoes of that spice: In 1723, 105,201 libras; in 1725, 143,629 libras; in 1729, 225,012 libras; in 1732, 182,163 libras. Add to this the amounts which the Manila galleons transport; those which are carried in pack-cloth bales [arpillería] (subject to palméo [16]), in order to gain the benefit of the [reduced?] freight charges; and, besides, those which the licensed ship from Inglaterra conveys (of which no definite calculation can be made): it is morally certain that the annual consumption of Nueva España will amount to and even exceed the 250,000 libras. Even if it should fall below that, there are other facts to be considered. It is true that "when the traders from España, England, and Filipinas all come at the same time--that is, in the month of March, when the fairs are held (for the first two nations, at Xalapa; and for the last, at Acapulco)--the price is usually broken to 18 reals of silver a libra, as the deputies state; but they omit what is more worthy of consideration. This is, that in the intermediate years between the trading-fleets, and according to the circumstances of the times, the price of this commodity rises to so excessive a degree that, from the year 1706 to that of 1709, on account of the wars in Europa and the failure of fleets to go to Nueva España, a libra of cinnamon was maintained at twelve to thirteen pesos, this great profit being secured by the ships from Philipinas, which came in those years to Acapulco. And from the year 1725 to that of 1730 (at which time the petitioner [i.e., Pintado] was in Mexico) I knew from experience that in the ship which came in the year 1728 the Philipinos sold the cinnamon at five pesos a libra; and those who did not return in the galleon, and conveyed to Mexico some quantities of the cinnamon, succeeded in selling it at eight to nine pesos. In the year 1729, it was disposed of in Acapulco at thirty silver reals [or 3 3/4 pesos]. This is what occurs, and always will occur, on the aforesaid occasions of interval [between fleets], and, too, [it occurred] when the trade was carried on by both parties (which is what deprives commodities of value, through being handled by many persons); the exclusive control [of this spice], then, remaining in the [hands of the] Philipinos, from their being the only ones who transport it, the reputation and value which they can give it, and the lucrative profits which (without contest) they will obtain, are not doubtful." The objections raised by Manila in regard to expected competition are not well founded: the Company of Philipinas is in an inactive condition, and its directors have apparently abandoned their scheme, but in any case Cadiz would feel responsible for not allowing that company to injure Manila's spice trade; and, as for the English ship, the king can persuade or prevent its owners from including spices in their cargoes. The prices of spice charged to Manila by the Dutch are much more likely to fall than to rise, when Manila has the exclusive control of that trade. Cadiz asserts that the costs of trade enumerated by Manila are too large, and modifies them thus: Cinnamon (of which, as in all other commodities, there are three grades--poor, medium, and excellent) ought to cost but 8 reals at Manila. The duties paid there, on the basis of 44 ducados (of 11 reals each) a tonelada, should be only 13 pesos a churlo, according to its measurement in palmos; and the other expenses of placing it on board amount to 3 pesos--so that it costs only 154 pesos a sack to convey the cinnamon to Acapulco, instead of 203, as Manila claims. The profit, therefore, amounts to 77 pesos, 1 real, which is equal to 50 per cent, instead of 13. In the same way Cadiz reckons the gain on pepper at 96 per cent, and on cloves at 43 per cent, against Manila's estimate of a loss on pepper and a gain of 24 per cent on cloves. It must be noted, too, that Manila is not satisfied with less than 100 per cent gain, while the Spanish traders are hardly able to make good the principal cost of their wares. The amount of ballast required for a light cargo is also overstated; this matter has been duly investigated by the officials of the India House at Cadiz, and it appears that the maximum amount of ballast for a ship of 1,000 toneladas, of the usual construction and of American timbers, is 333 toneladas for a cargo of light goods (such as cinnamon and bales of cloth). The Philipinas ship carries stone for ballast; the 333 toneladas of this, each weighing twenty quintals, are equivalent (by cubic measure) to 117 toneladas of the vessel's lading-space or capacity, which leaves 883 toneladas of space in the hold for the cargo. To augment the above amount of ballast would too greatly reduce the cargo, and even the necessary supplies for the voyage. Cadiz criticises the construction of the Manila galleons, especially as they are evidently built so as to carry a larger cargo than that which is allowed by the permission--as is confirmed by the large amounts of property that have been confiscated at Acapulco. The "elephant" lienzos may be estimated to fill 800 bales, each containing 20 piezas, and each pieza being valued at 3 pesos; and the cotton stuffs and raw silk, etc., 1,512 bales, each worth at least 125 pesos. These cotton stuffs, when fine, are handsome, and find a large demand and sale in Nueva España; moreover, the raw silk imported into that country is worked up in Mexico, and is an important article of commerce. When the importation of Chinese silks is prohibited there, "the manufactories which had begun to be established in Mexico will be protected; in these many persons were occupied, and were supported by working floss and twisted silk into fringes [galon], and into the fabrics which were used in Mexico, produced by those factories." The "elephant" stuffs, "being equivalent to Rouen linen, and conveniently supplied, are purchased in Nueva España not only to be used as white goods, but they are dyed for linings and other purposes." The extent of their consumption is shown by the quantities of them that the Manila galleon brings to Nueva España: 3,117 bales in 1729, and 2,432 in 1730; but even these large importations did not overstock the market there. The customs duties are not diminished, as Manila claims, by the prohibition of Chinese silks; the cargo proposed by Cadiz would yield the regular amount of these duties, amounting to 17 per cent of the returns, as follows: on 168 sacks of cinnamon, at 32 pesos, they amount to 54,016 pesos; on 2,312 bales of cotton stuffs, etc., at 30 pesos each, 69,360 pesos; the five per cent exacted on the shipment of the silver for returns, figured only on a return of 900,000 pesos, 45,000 pesos. This leaves a balance of only 1,624 pesos to be levied on the wax, pepper, and other miscellaneous wares of the cargo, to fill out the 17 per cent demanded by the crown. Manila has omitted to include any estimate of the import duties which would be collected in that city on the cinnamon which Cadiz desires it to handle; these would certainly indemnify Manila for the losses incurred by the lack of the Chinese silks. Among the papers accompanying this memorial are official certificates of the amounts of spice carried to Nueva España by the trading-fleets from Cadiz during 1723-32; the quantity of cinnamon in each has been already mentioned, cloves were not included in any of their cargoes, and pepper diminished from 54,804 libras in 1723 to none in 1732. Another document is the report of an investigation made at Cadiz as to the measures of bales and chests and of the churlo in which the cinnamon is transported; this last was found to measure 30 cubic palmos outside the vessel's hold, but 38 palmos when within it. Arquéo is defined as "the computation or estimate which is made of the bulk of the lading which the ship contains in its hold; this burden was measured by toneladas, each one of which contained 8 cubic codos, and each codo consisted of 33 dedos of the 48 into which the Castilian vara (which is commonly called 'the vara of measure') was divided. The tonelada, having as its [cubic] root two codos, or 66 dedos, contains 287,496 cubic dedos; dividing this number by 1,728, the number of cubic dedos in a cubic palmo, or quarter of a vara, each tonelada of arquéo is equivalent to 166 3/8 cubic palmos; from this it is deduced that if the ship is one of 1,000 toneladas, it will contain 166,375 cubic palmos, and in the same ratio for any other tonnage. As for the regulation of the spaces between decks [entrepuentes] by the capacity of their storerooms, no general rule could be given, on account of the great irregularity which was observed in them; for this matter was at the discretion of the shipbuilders, and according to the object for which the vessel was built."]

237-241. [This memorial having been sent to the fiscal, he replied (November 10, 1735) that the proposal of Cadiz was not a fair one; for the purchase of 250,000 libras of cinnamon, and the costs of placing that amount in the Acapulco market, would amount, even at Cadiz's own figures, to an investment of 277,008 pesos, and at Manila's to 331,024 pesos, while Cadiz had assumed but 250,000 as the amount to be put into cinnamon by Manila. The result would be that Manila either would not transport all that quantity to Nueva España, or would lose part of the profit on its shipment. The profits at Acapulco are not sufficient, on either class of commodities proposed by Cadiz, to yield the amount which is permitted to Manila as returns on its shipments. The spices can never be an equivalent (as Cadiz would claim) for the Chinese silks; for a tonelada of cinnamon, which space is occupied with only 600 libras, is worth at Manila 600 pesos, and a tonelada of silk goods is worth 4,000 pesos, if not more. The amount of cinnamon proposed by Cadiz would occupy 416 2/3 toneladas, and the ballast (on a galleon of 900 toneladas) 300 more; this would leave for the cotton stuffs, etc. (all of which are bulky goods) only 183 1/3 toneladas, with which it would be impossible to complete the 250,000 pesos of investment allowed to Manila. But when they are allowed to carry Chinese silks, these are contained in 500 piezas, which occupy but 62 1/2 toneladas, each tonelada worth 4,000 pesos; and there remain to the shippers 3,500 piezas for the cheaper and bulky goods. The fiscal declares that even if the spices were an equivalent in value for the silk trade, the proposed commerce in them would be injurious to all parties concerned. "The losses to the royal exchequer would consist in the less value of the duties which the 250,000 libras of cinnamon would contribute [to it] in España than in Acapulco. For in that port they would amount, as the fiscal has been informed, to 21,944 pesos; and in Cadiz the import duties alone for the millon and alcavala pay 34 pesos a quintal of 100 libras, and, with those of export for the Indias (which, according to plan, are 20 pesos a quintal), would amount to 160,000 pesos. To this sum ought to be added at least 50 per cent for the greater value of money in Cadiz, where his Majesty will receive it [for the duties] immediately, than in the Indias; and with all these the royal exchequer will be defrauded to the extent of 218,056 pesos." The price of cinnamon will rise, when only the amount actually needed is sold; and this will be a burden on the general public. If the spice trade be limited to the Philippine merchants, there is nothing to hinder those of Mexico from "cornering" the market, and selling such quantities only as they please, at enormous prices; moreover, the failure of the annual shipment from Manila (which is possible in any year) would cause great scarcity of this product throughout the great kingdom of Nueva España, and this would be a serious injury to its citizens--"especially in an article [like this], for the lack of which there is no equivalent which can make it good; nor is its expenditure limited by the variety of uses [to which it can be put], or by the frequent inconstancy of fashions, like other merchandise, but depends on a certain and assured consumption." This compulsory spice trade would injure Manila itself not only for the reasons already cited, but because it is possible that the Dutch would refuse to sell the cinnamon to the Philippine shippers; and then, with the Chinese silks cut off from them, they would find it impossible to continue their commerce with Nueva España. In any case, the Dutch would have it in their power to demand whatever price they might choose to place on their commodities; and the interruption of that traffic for two or three years would not hurt the Dutch, for they could sell it to European traders and be sure of their profits; but the injurious effects of such proceeding would react on the Manila merchants, the people of Nueva España, and the income of the Spanish treasury. If at any time cinnamon should bring in Nueva España the enormous prices which Cadiz has previously quoted, that would not help Manila, since its returns are limited to 1,000,000 pesos; the unusual profits would only benefit the Mexican traders who had bought the spice by wholesale at Acapulco. The assertion of Cadiz that the Manila merchants gain on the cinnamon 150 per cent at Acapulco does not count, for it entirely ignores the costs and expenses which, as has been demonstrated, reduce their net gain to 50 per cent. For all these reasons, the fiscal declines to approve the proposals of Cadiz. In view of this reply, the Council agreed (November 16) to call for a summary view of the whole question, with all the documents concerned. At this point, information was received from Cadiz that the fleet which had just arrived had brought a sack of cinnamon as a specimen of that which was produced in the Philippine Islands, and that the quality of this surpassed that of the cinnamon brought from the Dutch colonies. On January 21, 1736, the deputies from Filipinas presented a new but brief memorial, refuting some arguments by Cadiz in regard to the proposed substitution of the spice trade for that in silks, and for this purpose citing a royal decree of 1638 in their favor, which Cadiz had declared not to be in the Recopilación of the laws, and proving, by duly attested declarations, that the said decree existed in the Manila archives. At the end of these appears a final paragraph by Abreu, the compiler of the Extracto: "All that is thus far set forth is what up to the present time has been done and appears in the Expediente of the important and long-standing negotiation in regard to the commerce of Philipinas with Nueva España, according to the acts, royal decrees, memorials, and other documents furnished to us by the office of the secretary for Nueva España, in order that this Summary [Extracto] might be drawn up and arranged, in obedience to the order of the Council. The series of the proceedings in regard to the 'Equivalent' [17] (which this 'Period x' comprises) remains, however, imperfect until they shall be concluded and ended by the advisory report of the Council and the decision of the king; but it seemed best not to wait for that, for the sake of facilitating, by this Summary, the more exact understanding of the gentlemen who are to express their opinions in regard to the 'Equivalent.' At Madrid, May 11, 1736."]

BIBLIOGRAPHICAL DATA

The matter in the present volume comes from many widely different sources. They are as follows:

1. Commerce of the Philippines.--See bibliographical data of VOL. XLIV, no. 6.

2. Letter from ecclesiastical cabildo.--MS. from Archivo general de Indias, Sevilla, bearing pressmark, "Simancas-Eclesiastico; Audiencia de Filipinas; Cartas y espedientes del cabildo eclesiastico de Filipinas vistos en el consejo, años 1586 á 1670; estante 68, cajón I, legajo 35."

3. The College of San José.--I, from Colin's Labor evangelica (Madrid, 1663), book iii, part of chapter xviii, pp. 414-418; from a copy of the original work belonging to Edward E. Ayer. II, compiled from various sources, fully credited in footnotes.

4. The college and university of Santo Tomás.--I, from Baltasar de Santa Cruz's Historia (Zaragoza, 1693), book i, chapter xxxvi, pp. 168-172; from a copy of the original work belonging to Edward E. Ayer. II, from Algunos documentos relativos á la universidad de Manila (Madrid, 1892), pp. 35-37. III, from Census of the Philippines (Washington, 1905), iii, pp. 622-626.

5. Royal college of San Felipe de Austria.--I, from Casimiro Diaz's Conquistas (Valladolid, 1890), book ii, portion of chapter xxxv, pp. 446, 447. II, from notes of Pablo Pastells, S.J., in his edition of Colin's Labor evangélica (Barcelona, 1904), ii, pp. 261-268, 493, 494.

6. Secular priests in the Philippines.--From Ventura del Arco MSS. (Ayer library), iii, pp. 9, 10.

7. Royal decree concerning native schools.--From Vicente Barrantes's Instrucción primaria (Madrid, 1869), pp. 74-76; from copy belonging to the Library of Congress.

8. College-seminary of San Felipe.--I, from MS. in Archivo-histórico Nacional, Madrid, where it is found in legajo 10 of the Jesuit papers. II, from Juan de la Concepción's Historia general (Sampaloc, 1788-1792), viii, parts of chapters xiii and xiv, pp. 315-338; from a copy of the original work in the possession of the Editors.

9. College of San Juan de Letran.--From Vicente Salazar's Historia (Manila, 1742), book i, chapter ii, pp. 7-12; from a copy belonging to Edward E. Ayer.

10. Law regulating marriages of students.--From Colección de autos acordados (Manila, 1861-1866), i, pp. 149, 150; from a copy belonging to Edward E. Ayer.

11. Royal decree ordering the teaching of Spanish in native schools.--From Barrantes's Instrucción primaria, pp. 80-82.

12. Conciliar seminaries.--I, from Colección de autos acordados, v, pp. 15-17. II, from Archipiélago filipino (Washington, 1900), i, pp. 343, 344; and Doctrina y reglas constitucionales de la iglesia filipina independiente (Manila, 1904), pp. 14, 15, 42, 43, and 67, 68.

13. Nautical school.--I, from Colección de autos acordados, i, pp. 318, 319. II, from Archipiélago filipino, i, p. 349; and Census of Phil., iii, p. 613.

14. Boys' singing school.--From Archipiélago filipino, i, pp. 349, 350.

15. Public instruction.--From Sinibaldo de Mas's Informe (Madrid, 1843), ii, no. 12.

16. Educational institutions and conditions.--From J. Mallat's Les Philippines (Paris, 1846), ii, pp. 239-253; from copy belonging to Edward E. Ayer.

17. Privileges granted to students.--From Colección de autos acordados, ii, pp. 128, 129.

18. Superior school of painting, sculpture, and engraving.--From Archipiélago filipino, i, p. 349; and Census of Phil., iii, p. 614.

19. Ateneo municipal.--From Archipiélago filipino, i, p. 343; and Census of Phil., iii, pp. 603, 604.

20. Educational suggestions.--From Vicente Barrantes's Apuntes interesantes (Madrid, 1870), pp. 218-225; from a copy belonging to Rev. T. C. Middleton, O.S.A.

21. Public instruction.--From José Montero y Vidal's Archipiélago filipino (Madrid, 1886), pp. 187-193.

22. Girls' schools in Manila and the provinces.--From Dominican report, 1887, copied from Census of Phil., iii, pp. 616-620.

23. School of agriculture.--From Reports of Philippine Commission (Washington), 1900, i, p. 39, 1901, i, p. 145, 1900-1903, p. 601; and Reports of Commissioner of Education (Washington), 1897-1898, i, p. 980, 1899-1900, ii, pp. 1625, 1626, 1902, ii, pp. 2233, 2234.

24. Government reorganization of education in the university of Santo Tomás.--From MS. belonging to Edward E. Ayer.

APPENDIX: EDUCATION IN THE PHILIPPINES

Letter from the ecclesiastical cabildo to Felipe III. Juan de Bivero, and others; July 12, 1601. The college of San José. In two parts. I--Francisco Colin, S.J.; 1663. II--Summary of history compiled from various sources. The college and university of Santo Tomás. In three parts. I--Baltasar de Santa Cruz, O.P.; 1693. II--Cárlos III, March 7, 1785. III--Evarista Fernandez Arias, O.P.; July 2, 1885. Royal college of San Felipe de Austria. In two parts. I--Casimiro Diaz, O.S.A.; Valladolid, 1890. II--Pastells's notes in his edition of Colin's Labor evangélica; 1904. Secular priests in the Philippines. Felipe Pardo, O.P.; June 6, 1680. Royal decree concerning native schools. Cárlos II; June 20, 1686. College-seminary of San Felipe. In two parts. I--Felipe V; March 3, 1710. II--Juan de la Concepción; 1788-1792. College of San Juan de Letran. Vicente Salazar, O.P.; 1742. Law regulating marriages of students. Cárlos IV; June 11, 1792. Royal decree ordering the teaching of Spanish in native schools. Cárlos IV; December 22, 1792. Conciliar seminaries. In two parts. I--Governor Rafael María de Aguilar y Ponce de Leon; March 26, 1803. II--Excerpts from various sources. Nautical school. In two parts. I-- ---- Chacon; May 9, 1839. II--Compiled from various sources. Boys' singing school. 1901. Public instruction. Sinibaldo de Mas; 1843. Educational institutions and conditions. J. Mallat; 1846. Privileges granted to students. ---- Arrazola; December 2, 1847. Superior school of painting, sculpture, and engraving. Compiled from various sources. Ateneo municipal. Compiled from various sources. Educational suggestions. Vicente Barrantes; 1870. Public instruction. José Montero y Vidal; 1886. Girls' schools in Manila and the provinces. Compiled from various sources. School of agriculture. Compiled from various sources. Government reorganization of education in the university of Santo Tomás. Dr. E. Montero Rios, and others; October 29, 1890.

Sources: The material for this appendix is obtained as follows: I. MS. in Archivo general de Indias, Sevilla. II. I--Francisco Colin's Labor evangelica (Madrid, 1663), book iii, part of chapter xviii, pp. 414-418, from a copy belonging to Edward E. Ayer; II--compiled from various sources, fully credited in footnotes. III. I--Baltasar de Santa Cruz's Historia (Zaragoza, 1693), book i, chapter xxxvi, pp. 168-172, from copy belonging to Edward E. Ayer; II--Algunos documentos relativos á la universidad de Manila (Madrid, 1892), pp. 35-37; III--Census of the Philippines (Washington, 1905), iii, pp. 622-626. IV. I--Casimiro Diaz's Conquistas (Valladolid, 1890),