The Philippine Islands, 1493-1898, Volume 30 of 55

If the Philipinas are to be maintained, it now remains to ascertain how and in what manner this shall be done, in order to secure their preservation, and [at the same time] to avoid any considerable injury to the royal exchequer and to the other kingdoms of this crown. For this there are but two methods, and these alone; no other can be found which is adequate and efficacious. The first one is, the method which is adopted for the island of San Martin, and for all the military posts which his Majesty maintains in the Indias and in other regions, and for his fleets and armies; this is, to furnish from the royal treasury all that shall be necessary for this purpose. Granting that the islands cost annually 850,000 pesos and furnish revenues of 244,000 pesos, his Majesty will have to supply 606,000 pesos. Although this is a great sum of money, the preservation of those islands is so desirable, and so much more will have to be lost and spent if the islands are lost, that, in case there shall be no other way, it will be necessary and compulsory to accept and carry out the above method – although even that would not be enough, for the islands now cost 850,000 pesos [only] because the citizens of Manila give much aid, and render service with their persons and property. In one year they have thus given more than 200,000 pesos, as is made evident in the larger memorial, nos. 59 and 60. Accordingly, this method is exceedingly costly, and even more so than it would seem, for the reason that I have stated.

There remains, then, the second method, the only one [available]; this consists in granting commerce to those islands, which would suffice to secure three results. The first of these is, to preserve the present revenue of 244,000 pesos that they yield; for that sum, or the greater part of it, is based on the wealth which the islands obtain from their commerce, and if this fails them they will produce much less, and therefore much more will have to be supplied [from without]. The second, to give the royal treasury the benefit of the 606,000 pesos which (or the greater part of that sum) are deficient for the usual expense account, as has been shown. The third, to furnish the citizens with means by which they can, in emergencies, aid the extraordinary expenses – as they always have done, and still do – by having a commerce to support them; but without this it will be necessary, as they would lack the means to render such aid, that the king should bear these expenses. These three results being granted, the preservation of those islands readily follows.

The question then remains as to the character, amount, and form of this commerce, which are three principal topics. As for the character of this commerce, it is noted in the larger memorial (no. 15) that the islands have a domestic and a foreign commerce. It has been shown that this is scanty, except what proceeds from Moluco; but that this might be very rich, since it is the trade in cloves (as may be seen in nos. 28, 30, 34, and 36 of the said memorial). But, as this trade is reserved for the Portuguese and prohibited to the Castilians, it is useless to consider it for this purpose – although it is worth notice that whatever advantage the crown of Portugal derives from that trade is due to the Philipinas, and results from their preservation. I shall soon make some observations on the remaining portion of this domestic commerce, and what can be obtained from it.

Their foreign commerce is with many regions of the Orient, as is stated in the said memorial, from no. 20 on; and in no. 37 it is shown that only the inhabitants of the Philipinas can carry on the commerce with China, because they have means for this only – exporting that merchandise to Nueva España, and obtaining the returns from it in silver, with which to maintain it; for they have no other commodity which the Chinese crave, as is proved in the said memorial, no. 70. From this the conclusion is drawn that the islands cannot be preserved without commerce, and that this must necessarily be conducted with Nueva España in Chinese merchandise, and in some of their own products.

As for the second point, the amount of the commerce, this was formerly without any limitation; and during the time (which was short) while that condition lasted the islands acquired what strength and wealth and grandeur they now possess. After a time certain difficulties arose – which are discussed in the said memorial, nos. 80, 81, 94, 117, and 118 – all being to the prejudice of España’s commerce; on account of these it became expedient to limit the commerce of the islands, reducing it to a fixed amount of 250,000 pesos’ worth of merchandise and 500,000 pesos in returns. Although the citizens resented this, and saw that if it were successful they could [only] preserve their wealth without being able to increase it much, they went on under this decree from the time when it began to be executed (in 1605) until 1635 – when Don Pedro de Quiroga went [to Mexico], and by his rigorous measures reduced this permission to terms so restricted that it was rather taking away the permission entirely than carrying out its intent. This falling upon the necessity of the islands that the stated amount of their merchandise be increased, on account of the many shipwrecks, misfortunes, and expenses which they had experienced – of which I have made a brief relation in the said memorial, no. 107 – to take away the permission that they had without granting them a more liberal one, was more than they could endure; it may readily be seen what results this would cause. And as divine Providence did not cause these troubles to cease with the death of him who caused them, it may well be believed that the islands are today in so miserable a condition that they will either be ruined or can no longer be reached by the remedy which the kind attention of the council has begun to furnish them – entrusting its final application to the inquiry to be made by your illustrious Lordship, who is well informed of the losses, advantages and disadvantages, and all the circumstances of which knowledge is necessary for your decision in a matter so serious as this, on which depends the preservation of the Philipinas and of all that depends upon them. Their citizens hope that your decision will be what is expedient and necessary for those vassals, always so loyal, but always harassed by enemies, and even by friends.

There remains, then, the third point of the three that I have stated; that is, the form which must be adopted and followed in this commerce of the islands with Nueva España. Don Pedro de Quiroga proceeded in this matter with measures so rigorous and unusual that he tried to establish regulations different from those which are respected and observed in all the ports of España, of the Indias, and of the world. He undertook to open and weigh the bundles and chests, and to count, weigh, and measure the commodities and wares, without any preceding denunciation, information, or [even] indication that these exceeded the registration. He laid an embargo on all, without there being any guilt on the part of the owners, or prohibition of the articles; and for only raising this so unjust embargo he extorted from the commerce 300,000 pesos – excluding from composition 600,000 pesos’ worth besides, which are included in the [right of] composition by express, clear, and plain provisos [of the ordinances]. He collected the dues on whatever appraisement of the goods it suited him to make, although it was evident to him that they were being sold at half that rate in Acapulco, and even in Mexico. He hindered the return of the proceeds from the merchandise, which is allowed by the royal decree; and it cannot be denied that he who carries his goods to sell, [even though] with permission, may not exact the price that he shall obtain for them. For granting that permission, he demanded new dues and imposed new burdens; compelled the shippers to do whatever he wished, and harassed the mariners on that trade-route until he made them leave it – when it is known (and the islands are making representations to that effect) that it is for what is most needed in those islands that the governors in Manila make concessions to their citizens when the latter ask for these, in order to constrain them by kindness to what could not be obtained by severity; and the Council is conferring upon those citizens privileges and distinctions, in order that many may be encouraged to become mariners and artillerists. All this was done by Don Pedro de Quiroga under pretext of serving his Majesty; but it caused his royal exchequer the great loss which has been experienced in the failure, for two years, of ships to arrive from Philipinas. By this has been lost, in dues alone, 660,000 pesos, and as much more through the suspension of commerce; and still greater were the losses to the vassals of his Majesty, to say nothing of the danger in which those islands were left, and to which they are still exposed. To speak of the plan which should be established in this commerce, it seems as if it were sufficient to place before your illustrious Lordship what Don Pedro de Quiroga did, and what resulted from that, in order to understand that if by his proceedings he destroyed and ruined the commerce it is not expedient to follow his example. Rather should be followed those of Sevilla, Cartagena, Portovelo, Vera Cruz, and the other ports of the Indias and of these kingdoms, in which royal laws, decrees, and ordinances have ordained what shall be observed in these matters; and since these regulations are not annulled or broken in favor of the islands, it will not be just if they are broken or annulled to the loss or injury of that colony. For neither do those vassals merit less than this, nor is their commerce of different character from the other commerce that belongs to this crown.

Although representations have been made, with more exaggeration and less in accordance [with the facts] than would be desirable, of serious infractions of law that have been committed in this commerce – which representations I have answered at length and in detail in the said memorial, from no. 94 to no. 99 – it may be observed that, if there are any (which, if I do not admit, I do not deny), they are not of greater extent nor of different character than those which are every year experienced in the fleets and galleons on the India trade-route. These infractions consist in shipping more merchandise than what is registered, and different commodities from what are declared, and in carrying back more silver than is shown by the registers; and there are not and cannot be on the ships of Philipinas other infractions than the shipment of more goods and the return of more silver than appear on the registers. Let, then, the remedy be ascertained which is applied at Sevilla, Cadiz, and San Lucar, at Cartagena, Portovelo, Vera Cruz, and Habana, and let the same be applied at Manila and Acapulco.7 Let guards be placed, and informers allowed, and goods declared – with rewards to encourage, and punishments to warn; but it would be a chance success to ascertain in detail what would be shipped at Sevilla and unloaded in the ports of the Indias. This would be to establish not order but disorder in that commerce, as I state in the said memorial, no. 95; and soon the same thing would be noticed in that of the islands.

And although it may be represented that the infractions in the Philipinas trade, considering their amount, cause more loss than those in the commerce of España, especially in the exportation of the silver – since that which is brought in the galleons outside of the kingdom finally comes to Castilla; and that which is carried in the ships of Philipinas soon finds its way to China, and thus is lost, and the commerce is taken away from the vassals of this crown – reply may thus be made. The illegal shipments on the Philipinas route cause much less loss than do those on the India route, as is incurred when a galleon laden with silver is lost at sea, as compared with one that is captured by enemies; in the former case there is only our own loss, but in the latter is the same loss, and an advantage to our enemies. It cannot be denied that the silver which goes unregistered in the ships of Philipinas is lost, but no enemy of this crown benefits thereby; for that silver comes to a halt in China, from which country it never emerges – as is stated in the said memorial, no. 72 – nor does it work any harm there, whether it be more or less; for neither do we wage war with China, nor do the Chinese aid any other nation which wages war with us. As for the silver which comes [to España] unregistered in the galleons, those who best understand the subject consider that it would cause less damage if it remained in the Indias (and even some extend this idea to its being lost in the sea); because, under the pretext of its coming concealed, it either does not come into Sevilla, or, if it does come in, soon goes out again. In both these cases, it remains in the hands of the French, English, Flemish, and Portuguese, and most of it is anchored in their ships, by which Inglaterra, Francia, and Holanda are enriched; while that which goes to Portugal is carried to India, and there it is shared by the Dutch, Persians, Arabs, Mogous, and other hostile nations, until it reaches China, which is its center [of equilibrium]. It may be judged, then, which is the greater injury; and since the loss caused by the illegal shipments on the vessels of Philipinas is less, let that be done with those ships that is done with the galleons. But let it not be proposed that the commerce be taken from them, or its amount limited, or that unusual methods and severity be employed in dealing with them, since these are not used in the commerce of the Indias, and, comparing them together, one is no less necessary than the other.

From these considerations we draw the final conclusion that if the Philipinas Islands are, as has been proved, absolutely necessary to this crown on account of the eminent advantages and benefits which result to it from them, and that, in order to preserve them, there are but two methods: one, for his Majesty to support them; the other, to grant them commerce by which they can sustain themselves – the first costly and difficult, the second easy and obvious – the latter ought to be accepted and carried out. [This can be done] by giving them the commerce which they have hitherto enjoyed with Nueva España, to the amount that is expedient, and in the usual manner, without adding conditions that will diminish or render it difficult; for that will be to withdraw and consequently to destroy and end it, and with it those islands, which are so important to this Catholic monarchy. Your illustrious Lordship will make such report on this point and argument as [his Majesty’s] vassals there expect and desire from your great ability and zeal.

Point second

As for the permission [to trade] which the islands have enjoyed since 1604 – which is to the amount of 250,000 pesos that may be carried in merchandise, and 500,000 pesos which may be sent back in silver, on the two ships which are allotted for that trade – the islands have petitioned his Majesty that he would graciously increase the 250,000 pesos’ worth of merchandise to 500,000, and the 500,000 pesos of silver to 800,000; this is referred to the inquiry of your illustrious Lordship. And although I have in the said memorial discussed the main arguments for this request, I will, since these are related to the entire subject of those islands, here reduce them to six or seven principles.

First: because, as I have stated and proved, this commerce began in the year 1565, and was carried on without any restriction of its amount until 1604, when it was limited to the amount above stated. The islands could endure this limitation because they then possessed three attributes which they now lack. The first was, that the citizens were rich and strong through having enjoyed free trade almost forty years; and therefore they possessed, and have had thus far, the means to bear expense and losses. But since, from their trade being reduced to so small an amount, it resulted that their profits were diminished and their obligations increased; their fortunes have so steadily declined that, if the trade permitted to them is not increased, they cannot improve their fortunes, nor even preserve the remnants of these. The second was, that those islands had few enemies, and were less infested and harried by them [than now]; for until the year 1600 neither did the Dutch cause any anxiety in those seas, nor was there any other nation which visited them with hostile acts or fleets. Since that year the profits obtained from the cloves, the plunder of the ships from China, and friendly relations with the Japanese, have all been such inducements to the Dutch to frequent the seas in that region that they have kept the [Philipinas] Islands continually in arms, rendering them an active military frontier. Hardly a year has passed without a sea-fight; and, moreover, the Dutch have incited the Mindanaos, the Japanese, and other barbarians also to make war on us. The result has been that the citizens [of the islands] have spent their fortunes in serving his Majesty, which they have done with their property and persons – as is described in the said memorial, nos. 59 and 60. And as the profits from their commerce have become less, and the expenses for war greater and more continual, their poverty has become so great that they are in need of more favor than they have thus far enjoyed; for if (as has been proved) their commerce only is adequate to support those islands, and that which they have hitherto carried on is steadily declining, it must necessarily be increased, in order that they may not perish and be destroyed. This is confirmed by the third of the circumstances mentioned above, the excessive and enormous losses of property which the citizens of Manila have suffered since the year 1575 – which are mentioned, in due order, in the said memorial, no. 107. Some of these misfortunes occurred before the year 1604, and, as until then the commerce was free, they had some reparation for their losses; but those which have occurred since then have had, on account of the limitation of trade, but little relief and scanty reparation. The result has been that, although the injurious effects and great loss have not been noticed every year, they are in the course of all those years so keenly felt that a special means of restoration is needed; and there can be no other save that of increasing their commerce, for their relief must come from the same quarter as that whence their losses came.

Second: [This relief should be given] because when the permit for 250,000 pesos was granted there were in Manila fewer citizens and soldiers; and now the number of these and the [size of the] city have increased, and more aid has become necessary, not only with the course of the thirty-six years which have elapsed, but because there is more war. It appears that those who are occupied in his Majesty’s service on pay, including those who have been sent to the islands and those who are born there, number 3,338 Spaniards, and 2,540 Indians of various nationalities – not counting the citizens, or the traders, or other persons who are pursuing various crafts (as is stated in the said memorial, no. 55) – which is twice the number employed in the year 1604. And as it is requisite that all participate in the commerce, and that – although it must be through the medium of the citizens, among whom the amount allowed is distributed – all persons may have some share in it, it becomes necessary, since there are twice as many people as there formerly were, that the amount of trade permitted should also be doubled; for if this be not done, and that which formerly belonged to few be shared among many, no one will have enough for his needs.

Third: this argument being sufficient for the increase and enlargement of the amount permitted, it is asserted that this amount is less than what was first granted; for, as concerns the distribution (which is made by toneladas), the governors have introduced the practice of giving these to hospitals and convents, and often to the mariners and artillerists, to those who go on expeditions and embassies, and to other persons. Thus is consumed a large part of this permitted amount, and consequently of the 500,000 pesos’ worth of returns – from which are deducted the legacies, donations, contributions for charitable purposes, wages of the seamen and soldiers, wrought silver, and all the rest that is shipped (as is ordained by the decree of 1606, cited in the said memorial, no. 90), by which, it is at once evident, the amount granted by the permission is diminished to just that extent.

Fourth: even if it be granted that some illegalities have been committed in that trade, these must have been in exporting more merchandise and bringing back more silver than what the permission decreed; and the cause must have been the pressing need of the inhabitants. For since their numbers are greater, and the amount of trade allowed them is less in quantity, and the share of each one is less because there are more persons concerned in it, the amount that some receive will be so little that it will compel them to infringe the permission, and to export or bring back more than is allotted to them, in order that they may be able to support themselves and meet their obligations. These illegal acts will cease when the amount permitted shall be increased and extended; for, as each person will have a share sufficient to employ his capital, he will not expose it to risk, or carry goods without registry. With this, not only will the inhabitants be enriched, but the illegalities will cease; and, as the royal dues will increase, his Majesty will not have to supply anything for the maintenance of the islands, but instead will be much profited by them.

Fifth: because the main reason for having limited this commerce was the injury which has resulted from it to Sevilla, not only with the merchandise which it carries to Nueva España, but with the silver which it drains thence – as has been noticed in the said memorial, nos. 71–79 and 116–119. And although this difficulty is there solved, and this concession is thus made easier – because when the cause ceases, the effect ceases also – another argument is here adduced; this is as follows. The [accusations of] illegal acts in that commerce which are made public are either true or false; if they are false, our object is attained. But, if they are true and those things are done, how can it be said that, in place of the 250,000 pesos [allowed], four millions’ worth of merchandise come to Nueva España; and that for the 500,000 pesos of returns they carry ten millions in silver? What difficulty is there in [allowing that for] the four millions that are shipped, a half-million should come under registry, and one out of the ten millions that are returned should go registered, and that on this million and a half the royal dues be collected, since actually more than 750,000 pesos are carried each way without paying these? And even if those illegal acts be checked, and it be granted that for the 250,000 pesos are shipped 500,000, and for the 500,000 pesos of returns a million be carried: if the excess [now] goes and comes without registry, how much more certain is it that the goods will be registered and the royal dues paid? But this argument is made even stronger by the great probability that the excess over the amounts allowed only extends or can extend to the investments of the shippers; and since these actually are only citizens of Philipinas, the citizens neither have four millions to export, nor can they get ten millions in returns; for in this way they would be, in four years, at the rate of six millions of profits a year, the wealthiest in the world, while they are at this time the poorest. And if that result is not evident, how can the cause [assigned] be regarded as infallible? Let us grant, then, that they will infringe the rule if besides the amount permitted as much more be carried; and even that is much. But if this permission were ample enough to include the funds of all those who lade goods, it is evident that the infractions of law would cease, and that it would not be possible to have them, or means to commit them; and this becomes more credible, if the urgency with which this increase of the permission is requested be noted. And how is it to be supposed that those who are carrying their goods without registry (which is more profitable) prefer to carry them registered, except in order not to exceed the privilege that is given to them? And thus it is certain that if a more extensive permission be granted to them, there will not be illegal shipments, nor will the injury [to Spanish trade] be greater, nor as much as is now assumed.