III. Trade and Commerce at the Time of Discovery and Conquest
Centuries before Spanish discovery the Filipinos were in regular intercourse with the neighboring countries of China, Japan, Borneo, and others. In the work of Chao Ju-kua, a Chinese geographer of the thirteenth century, there is a chapter on Philippine trade, from which we learn that the “foreign traders import porcelain, commercial gold, iron vases for perfumes, leaden objects, glass, pearls of all colors, iron needles,”1 black damask, and other silk fabrics, fish nets, and tin, and also silk umbrellas, and a kind of basket woven from rattan. In exchange, the Filipinos exported cotton (perhaps the “kapok” or tree cotton), yellow wax, strange cloth (foreign cloth: sinamay, a light fabric made from abacá,—and other textiles of the country.—Blumentritt’s note), coconuts, onions, (camotes?—Blumentritt’s note), and fine mats; also pearls, shells (i. e., tortoise-shell.—Blumentritt’s note), betelnuts, and jute (yuta) textiles. (Yu-ta seems to be the abacá.—Blumentritt’s note).2
Domestic trade.
The first Spaniards who came to the Philippines observed a lively commercial intercourse, not only among the peoples of the different islands, but also with the near-by countries.3 The chief method of exchange was by means of barter,4 though oftentimes gold dust was used.
With the coming of the Spaniards, domestic trade was upset. First of all, restrictions were imposed upon trade; communication between the villages was restrained.5 Though later ordinances allowed freedom of commerce between villages and provinces,6 the spirit of restriction predominated until modern times.7
Then, the government officials, though in many decrees and ordinances prohibited to engage in trade,8 used their position as a means of gaining profits in trade.9 This evil prevailed till later days.10 However, as seen by Dr. Tavera, trading by the officials was not without its good effect.11
Trade relations with oriental countries.
The coming of the Spaniards opened a new market to the products of the Orient, and Manila soon became the great distributing center of the East.12 “The merchants and business men form the bulk of the residents of the islands, because of the great amount of merchandise brought there—outside of native products—from China, Japan, Maluco, Malacca, Siam, Cambojia, Borneo, and other districts.”13
From China, from thirty to forty ships sailed every year usually in March, and reached Manila in fifteen or twenty days; here the traders sold their goods, and, with the exception of some of the larger dealers, returned towards the end of May or during the first days of June, in order to avoid the stormy season. Morga gives a detailed list of the goods imported from China.14
The merchandise brought by the Chinese were unloaded into champans (bancas), and taken to the Parian (Chinese quarter), or to other houses and magazines outside of the city, and there freely sold. No Spaniard, Sangley (Chinese trader), or any other person was allowed to go to the ship to buy or trade merchandise, food, or anything else. The purchase price was paid in silver and reals, for the Sangleys did not want gold, or any other articles, and would not take other things to China.
From Nagasaki, Japan, came Japanese and Portuguese merchants, who brought excellent wheat-flour and highly prized salt meats.15 The bulk of the merchandise was used in the country. Returning to Japan, during the months of June and July, they carried with them raw Chinese silk, gold, deerskin, and brazil-wood for their dyes; also honey, manufactured wax, palm and Castilian wine, civet-cats, large tibors in which to store their tea, glass, cloth, and other curiosities from Spain.
From the Moluccas, Malacca, and India, the Portuguese imported many articles,16 and in return took with them to the Moluccas rice, wine, crockery-ware, and other wares needed there; to Malacca, gold and money, besides a few special trinkets and curiosities from Spain, and emeralds.
Smaller vessels belonging to natives of Borneo also came to Manila, bringing well-made palm-mats, a few slaves, sago, and tibors; large and small jars, and excellent camphor; these articles were bought more by the Filipinos than by the Spaniards. The Borneans took with them wine and rice, cotton cloth, and other wares of the Philippines.
“Very seldom a few vessels came from Siam and Camboja, carrying ‘benzoin, ivory, and cotton cloth; rubies and sapphires, badly cut and set; a few slaves; rhinoceros horns, and the hides, hoofs, and teeth of this animal; and other goods.’”17
It was the goods that were imported into Manila by the Oriental traders, especially the Chinese, that formed the bulk of the commerce between the Philippines and New Spain. The only products of Philippine industry dealt with in the so-called galleon trade were gold, cotton cloth, mendriñaque, and cakes of white and yellow wax.18 By buying from the Oriental traders their merchandise, and sending them to Mexico, the Spaniards in the Philippines made fabulous profits. It is due to this trade that those engaged in it amassed great wealth in a short time, and Manila became a great distributing center of the East.19 The prosperity of Manila during the first years after the conquest is attributed to the fact that commerce was then unrestrained.20 To the same cause was due the settlement of many Chinese and Japanese and other Orientals in the country.21 To say, however, that the later restrictions upon commerce killed off all prosperity, would not be justified.22
1 Chao Ju-kua’s Description of the Philippines.—Bl. and Rb., Vol. 34, pp. 183–191.
Rizal, La Indolencia. (All quotations from this work are taken from the Derbyshire translation.):
“Indolence in the Philippines is a chronic malady, but not a hereditary one. The Filipinos have not always been what they are, witnesses whereto are all the historians of the first years after the discovery of the Islands.
“Before the arrival of the Europeans, the Malayan Filipinos carried on an active trade, not only among themselves but also with all the neighboring countries. A Chinese manuscript of the 13th century, translated by Dr. Hirth (Globus, Sept. 1889), which we will take up at another time, speaks of China’s relations with the islands, relations purely commercial, in which mention is made of the activity and honesty of the traders of Luzon, who took the Chinese products and distributed them throughout all the islands, traveling for nine months, and then returned to pay religiously even for the merchandise that the Chinamen did not remember to have given them. The products which they in exchange exported from the islands were crude wax, cotton, pearls, tortoise-shell, betelnuts dry-goods, etc.”
2 The method of trading is thus described by Chao Ju-kua:
“When (Chinese) merchantmen arrive at that port they cast anchor at a place (called) the place of Mandarins. That place serves them as a market, or site where the products of their countries are exchanged. When a vessel has entered into the port (its captain) offers presents consisting of white parasols and umbrellas which serve them for daily use. The traders are obliged to observe these civilities in order to be able to count on the favor of those gentlemen.
“In order to trade, the savage traders are assembled (the Chinese call all foreigners savages except the Japanese, Koreans, and people of Anam.—Blumentritt) and have the goods carried in baskets, and although the bearers are often unknown, none of the goods are ever lost or stolen. The savage traders transport these goods to other islands, and thus eight or nine months pass until they have obtained other goods of value equivalent to those that have been received (from the Chinese). This forces the traders of the vessels to delay their departure, and hence it happens that the vessels that maintain trade with Ma-yi are the ones that take the longest to return to their country.” * * *
“When foreign traders come to one of their villages, they must not touch the ground, but must remain aboard their vessel, which is anchored in the middle of the current, and announce their presence by beat of drum. Thereupon the savage traders approach in their light craft, in which they carry cotton, yellow wax, strange cloth, coconuts, onions, and fine mats, and all those things they offer for sale in exchange (for the articles of the Chinese). In case of misunderstanding in the price of the goods, it is necessary to summon the chief of the traders of that place, so that he may present himself in person, and arrange the tariff to the satisfaction of all.” * * *
3 The first thing noticed by Pigafetta, who came with Magellan in 1521, on arriving at the first island of the Philippines, Samar, was the courtesy and kindness of the inhabitants and their commerce. “To honor our captain,” he says, “they conducted him to their boats where they had their merchandise, which consisted of cloves, cinnamon, pepper, nutmegs, mace, gold and other things; and they made us understand by gestures that such articles were to be found in the islands to which we were going.”
Further on he speaks of the vessels and utensils of solid gold that he found in Butuan, where the people worked mines. He describes the silk dresses, the daggers with long gold hilts and scabbards of carved wood, the gold sets of teeth, etc. Among cereals and fruits he mentions rice, millet, oranges, lemons, panicum, etc.
That the islands maintained relations with neighboring countries and even with distant ones is proven by the ships from Siam, laden with gold and slaves, that Magellan found in Cebu. These ships paid certain duties to the King of the island. In the same year, 1521, the survivors of Magellan’s expedition met the son of the Rajah of Luzon, who, as captain-general of the Sultan of Borneo and admiral of his fleet, had conquered for him the great city of Lave (Sarawak?). Might this captain, who was greatly feared by all his foes, have been the Rajah Matanda whom the Spaniards afterwards encountered in Tondo in 1570?
In 1539 the warriors of Luzon took part in the formidable contests of Sumatra, and under the orders of Angi Siry Timor, Rajah of Batta, conquered and overthrew the terrible Alzadin, Sultan of Atchin, renowned in the historical annals of the Far East. (Marsden, Hist. of Sumatra, Chap. XX.)
At that time, that sea where float the islands like a set of emeralds on a paten of bright glass, that sea was everywhere traversed by junks, paraus, barangays, vintas, vessels swift as shuttles, so large that they could maintain a hundred rowers on a side (Morga); that sea bore everywhere commerce, industry, agriculture, by the force of the oars moved to the sound of warlike songs of the genealogies and achievements of the Philippine divinities. (Colin, Labor Evangelica, Chap. XV.)
Legaspi’s expedition met in Butuan various traders of Luzon with their boats laden with iron, wax cloths, porcelain, etc. (Gaspar de San Agustin), plenty of provisions, activity, trade, movement in all the southern islands.
They arrived at the Island of Cebu, “abounding in provisions, with mines and washings of gold, and peopled with natives,” as Morga says; “very populous, and at a port frequented by many ships that came from the islands and kingdoms near India,” as Colin says; and even though they were peacefully received discord soon arose. The city was taken by force and burned. The fire destroyed the food supplies and naturally famine broke out in that town of a hundred thousand people, as the historians say, and among the members of the expedition, but the neighboring islands quickly relieved the need, thanks to the abundance they enjoyed. (La Indolencia, Rizal.)
Dr. J. A. Robertson in a note to the English translation of this work says:
“There is no doubt of the frequency of interisland trade among the peoples of the Philippines at an early period. Trade was stimulated by the very fact that the Malay peoples, except those who have been driven into the mountainous interiors, are by their very nature a seafaring people. The fact of an interisland traffic is indicative of a culture above that possessed by a people in the barbarian stage of culture. Of course, there was considerable Chinese trade as well throughout the islands.”
4 “Their customary method of trading was by bartering one thing for another, such as food, cloth, cattle, fowls, lands, houses, fields, slaves, fishing-grounds, and palm-trees (both nipa and wild). Sometimes a price intervened, which was paid in gold, as agreed upon, or in metal bells brought from China. These bells they regard as precious jewels; they resemble large pans and are very sonorous. They play upon these at their feasts, and carry them to the war in their boats instead of drums and other instruments. There are often delays and terms for certain payments, and bondsmen who intervene and bind themselves, but always with usurious and excessive profits and interests.” (Antonio de Morga, Sucesos; Bl. and Rb., Vol. 16, p. 128.)
5 “The natives are free to move from one island to another, and from one province to another, and pay their tribute for that year in which they move and change their residence in the place to which they move; and to move from a Christian village that has instruction to another village possessing it. But on the other hand, they may not move from a place having instruction to one without it, nor in the same village from one barangay to another, nor from one faction to another. In this respect, the necessary precautions are made by the government, and the necessary provisions by the Audiencia, so that this system may be kept, and so that all annoyances resulting from this moving of the settled natives of one place to another may be avoided.
“Neither are the natives allowed to go out of their villages for trade, except by permission of the governor, or of his alcaldes-mayores and justices, or even of the religious, who most often have been embarrassed by this, because of the instruction. This is done so that the natives may not wander about aimlessly when there is no need of it, away from their homes and settlements.” (Morga’s Sucesos.—Bl. and Rb., Vol. 16, pp. 162–163.)
6 “17. (Commerce is to be free to all Indians of whatever jurisdiction they be, throughout the Philippines; and no license is required, nor can any fee be charged. This will ensure a good supply of provisions and other necessities, and promote the cultivation of the land. Good treatment must be shown to them, and their passage from one place to another facilitated, under penalty of a fine of 100 pesos, and a charge in the residencia of the one who transcends this order.)” (Ordinances of Good Government by Corcuera, 1642, and Cruzat y Gongora, 1696.—Bl. and Rb., Vol. 50, p. 203).
7 “70. (Interprovincial trade of the various products shall not be prohibited, as such prohibition is in violation of law vii, título xviii, book iv and law xxv, título i, book vi, in accordance with which laws trade is to be encouraged. The Indians may cut timber in accordance with law xiv, título xvii, book iv. The desire to gain, however, shall not be allowed to cause the Indians to send out of any province the products necessary for its conservation. This may be prohibited with the consent of the father minister, from whom the alcalde-mayor shall ask a certification for his own protection. Without the certification, he shall not make such prohibition, under penalty of the penalties of the preceding ordinance. The natives shall pay no fees for the privilege of interprovincial trade; and, if any alcalde-mayor violates this, he shall incur a fine of 100 pesos, besides the responsibility of making good all the loss occasioned by his action. This shall be a charge in the residencia.) (Raon’s Ordinance, February 26, 1768.—Bl. and Rb., Vol. 50, pp. 250–251.)
This is one of the reasons adduced by Rizal to explain the decay of agriculture in this country:
“Of no little importance were the hindrances and obstacles that from the beginning were thrown in the farmers’s way by the rulers, who were influenced by childish fear and saw everywhere signs of conspiracies and uprisings. The natives were not allowed to go to their labors, that is, their farms, without permission of the governor, or of his agents and officers and even of the priests as Morga says. Those who know the administrative slackness and confusion in a country where the officials work scarcely two hours a day; those who know the cost of going to and returning from the capital to obtain a permit; those who are aware of the petty retaliations of the little tyrants will well understand how with this crude arrangement it is possible to have the most absurd agriculture. True it is that for some time this absurdity, which would be ludicrous had it not been so serious, has disappeared; but even if the words have gone out of use other facts and other provisions have replaced them. The Moro pirate has disappeared but there remains the outlaw who infests the fields and waylays the farmer to hold him for ransom. Now then, the government, which has a constant fear of the people, denies to the farmers even the use of a shotgun, or if it does allow it does so very grudgingly and withdraws it at pleasure; whence it results with the laborer, who, thanks to his means of defense, plants his crops and invests his meager fortune in the furrows that he has so laboriously opened, that when his crop matures, it occurs to the government, which is impotent to suppress brigandage, to deprive him of his weapon; and then, without defense and without security he is reduced to inaction and abandons his field, his work, and takes to gambling as the best means of securing a livelihood. The green cloth is under the protection of the government, it is safer! A mournful counselor is fear, for it not only causes weakness but also in casting aside the weapons strengthens the very persecutor!”—(La Indolencia.)
8 There were other earlier decrees to the same effect as the following:
“6. (Alcaldes-mayor and corregidors are not to accept any presents, even of food, during the term of their office, as their hands will be bound thereby. They must pay a just price for what they purchase. During the term of their office they are not to purchase a ranch or any lands in the territory of their jurisdiction; neither are their secretaries or alguacils-mayor to buy them: for many evils follow therefrom. They are to build no sailing craft under any consideration, ‘under penalty of loss thereof and two hundred pesos, applied half to fines for the treasury and fortifications, because of the great harm caused to the natives by such constructions. For when you need any vessel, you can charter one.’ Likewise they are forbidden to engage in any trade with the natives and citizens of their jurisdiction, either directly or through agents.”) (Ordinances of Good Government, by Corcuera, 1642.—Bl. and Rb., Vol. 50, p. 195.)
9 “106. The chief aim of the alcaldes-mayor, corregidors, and assistants, is trade. They buy up by wholesale the products of the land, especially rice and other food supplies, exactly as is said above concerning the religious of certain curacies, and their interpreters and helpers.
“111. It is not advantageous for these alcaldes-mayor and corregidors, or their assistants or friends, to receive the royal collections, for they perpetrate the numberless frauds and cheats, both against the royal treasury and against the Indians; and there is no remedy for this, as they themselves administer justice. They hold the collections in their possession for a long time, trading with them, and the royal treasury is the loser.” (Report of Conditions in the Philippines, by Antonio de Morga; Bl. and Rb., Vol. 10, pp. 94–95.)
Referring to the religious men, Morga says in the same report:
“2. They trade and make a profit in their districts, from rice, wax, wine, gold, boats, fowls, cloth, and deerskins, to the great detriment of the Indians, as well as that of the entire country.
“3. They deal openly in merchandise of the above-mentioned articles, as well as in those of China, in the trade with Nueva España.”
“Before the governor Don Gonzalo Ronquillo came, there were not more than three or four alcaldes-mayor in all these islands; but now there are sixteen and most of them are men who came with him. As they came poor, and as the salaries are small, they have taken the Indians—as all affirm, and it is common talk—at the time for harvesting rice; and they buy up all other provisions, and many profit by selling them again. In this way everything has become dear, because, as they have forbidden the Indians to trade and traffic, they sell at whatever price they wish. Formerly the Indians brought their products to the gates, and sold it at very low prices; for they are satisfied with very little gain, which is not true of the Spaniards.” (Affairs in the Philippine Islands, Fray Domingo de Salazar. (Manila, 1593).—Bl. and Rb., Vol. 5, p. 217.)
10 Rizal, La Indolencia.—“We will not cite our own experiences, for aside from the fact that we do not know which to select, critical persons may reproach us with partiality; neither will we cite those of other Filipinos who write in the newspapers; but we shall confine ourselves to translating the words of a modern French traveler who was in the Philippines for a long time:
“‘The good curate,’ he says with reference to the rosy picture a friar had given him of the Philippines, ‘had not told me about the governor, the foremost official of the district, who was too much taken up with the ideal of getting rich to have time to tyrannize over his docile subjects; the governor, charged with ruling the country and collecting the various taxes in the government’s name, devoted himself almost wholly to trade; in his hands the high and noble functions he performs are nothing more than instruments of gain. He monopolizes all the business and instead of developing on his part the love of work, instead of stimulating the too natural indolence of the natives, he with abuse of his powers thinks only of destroying all competition that may trouble him or attempt to participate in his profits. It matters little to him that the country is impoverished, without cultivation, without commerce, without industry, just so the governor is quickly enriched!”
11 Resultados del Desarrollo Económico de Filipinas; in “Revista Económica,” November, 1912:
“In imposing a tax payable in articles of food or dress, the foundations of the Philippine industry were unwittingly laid. It is natural for a person manufacturing a piece of cloth for the purpose of paying tribute with it to have an interest in making another like piece to sell or to exchange for some other needed object. At the same time, as the encomendero and alcaldes mayores engaged in trade sold the articles received as tribute, a market for industrial products was in this wise created which provoked a demand for such merchandise.”
12 Azcarraga, La Libertad de Comercio de Filipinas, p. 40.
“To this abundance and fertility was added the proximity of China, India, Japan, Malacca, and Maluco. From China they not only began to ship their riches in silks and glazed earthenware, as soon as they learned of our wealth of four and eight real pieces: * * *.” (Relación de las Islas Filipinas, Pedro Chirino, S. J.; Roma, 1604.—Bl. and Rb., Vol. 12, p. 191.)
13 Morga’s Sucesos.—Bl. and Rb., Vol. 16, p. 176.
14 “These vessels come laden with merchandise, and bring wealthy merchants who own ships, and servants and factors of other merchants who remain in China. They leave China with the permission and leave of the Chinese viceroys and mandarins. The merchandise that they generally bring and sell to the Spaniards consists of raw silk in bundles, of the fineness of two strands (“dos cabezas”), and other silk of poorer quality; fine untwisted silk, white and of all colors, wound in small skeins; quantities of velvets, some plain, and some embroidered in all sorts of figures, colors, and fashions—others with body of gold, and embroidered with gold; woven stuffs and brocades, of gold and silver upon silk of various colors and patterns; quantities of gold and silver thread in skeins over thread and silk—but the glitter of all the gold and silver is false, and only on paper; damasks, satins, taffetans, gorvaranes, picotes (coarse stuff made of goat’s hair, or a glossy silk stuff; probably the latter is intended in the text. Gorvaran or gorgoran is a sort of silk grogram), and other cloths of all colors, some finer and better than others; a quantity of linen made from grass, called ‘lencensuelo’ (handkerchief). (This fabric is now called Piña); and white cotton cloth of different kinds and qualities, for all uses. They also bring musk, benzoin, and ivory; many bed ornaments, hangings, coverlets, and tapestries of embroidered velvet; damask and gorvaran of different shades; tablecloths, cushions, and carpets; horse-trappings of the same stuff, and embroidered with glass beads and seed-pearls; also some pearls and rubies, sapphires and crystal-stones; metal basins, copper kettles, and other copper and cast-iron pots; quantities of all sorts of nails, sheet-iron, tin and lead; saltpetre and gunpowder. They supply the Spaniards with wheat flour; preserves made of orange, peach, ‘scorzonera,’ pear, nutmeg, and ginger, and other fruits of China; salt pork and other salt meats; live fowls of good breed, and very fine capons; quantities of green fruit, oranges of all kinds; excellent chestnuts, walnuts, pears, and ‘chicueyes’ (both green and dried, a delicious fruit); quantities of fine thread of all kinds, needles, and knick-knacks; little boxes and writing-cases; beds, tables, chairs, and gilded benches, painted in many figures and patterns. They bring domestic buffaloes; geese that resemble swans; horses, some mules and asses; even caged birds, some of which talk, while others sing, and they make them play innumerable tricks. The Chinese furnish numberless other gewgaws and ornaments of little value and worth, which are esteemed among the Spaniards; besides a quantity of fine crockery of all kinds; canganes, (this must be the cloth and not the porcelain of Kaga, which even today is so highly esteemed.—Rizal), sines, and black and blue robes; ‘tacley,’ which are beads of all kinds; strings of cornelians, and other beads and precious stones of all colors; pepper and other spices; and rarities—which, did I refer to them all, I would never finish, nor have sufficient paper for it.” (Ibid., pp. 178–180.)
15 “They also bring some fine woven silk goods of mixed colors; beautiful and finely-decorated screens done in oil and gilt; all kinds of cutlery; many suits of armor, spears, catans, and other weapons, all finely wrought; writing cases, boxes and small cases of wood, japanned and curiously marked; other pretty gewgaws; excellent fresh pears; barrels and casks of good salt tunny; cages of sweet-voiced larks, called “fimbaros;” and other trifles.” (Ibid., p. 183.)
16 ”* * * They take merchandise consisting of spices—cloves, cinnamon, and pepper; slaves, both black and Cafres; cotton cloth of all sorts, fine muslins (caniquies), linens, gauzes, rambuties, and other delicate and precious cloths; amber, and ivory; cloths edged with pita, for use as bed covers; hangings, and rich counterpanes from Vengala (Bengal), Cochin, and other countries; many gilt articles and curiosities; jewels of diamonds, rubies, sapphires, topazes, balas-rubies, and other precious stones, both set and loose; many trinkets and ornaments from India; wine, raisins, and almonds; delicious preserves, and other fruits brought from Portugal and prepared in Goa; carpets and tapestries from Persia and Turquia, made of fine silks and wools; beds, writing-cases, parlor-chairs, and other finely-guilded furniture, made in Macao; needle-work in colors and in white, of chain-lace and royal point lace, and other fancy-work of great beauty and perfection. Purchases of all the above are made in Manila, and paid in reals and gold. The vessels return in January with the brisas, which is their favorite monsoon. They carry to Maluco provisions of rice and wine, crockery-ware, and other wares needed there; while to Malacca they take only the gold or money, besides a few special trinkets and curiosities from España, and emeralds. The royal duties are not collected from these vessels.” (Morga’s Sucesos, 1609.—Bl. and Rb., Vol. 16, pp. 184–185.)
17 Ibid., pp. 185–186.
18 Ibid., p. 186.
19 “All of these things (referring to the trade of the Philippines) make life in that region pleasant and an object of desire to men; and indeed it seems a copy of that Tyre so extolled by Ezequiel.” (Relación de las Islas Filipinas, Pedro Chirino.—Bl. and Rb., Vol. 13, p. 192.)
“The capital of our colony was, therefore, a few years after the conquest, an emporium of wealth which, by its commercial activity, gained in those seas the title of Pearl of the Orient.” (La Libertad de Comercio, Azcarraga, p. 41.)
“The commerce of these islands began with their second discovery and the first settlement, which was in the year 1565. However, it was at the first scanty and of little weight, until during the government of Guido de Labazarris, in the year 1576, the trade of China was introduced, and with it considerable profits, which extended it freely to Nueva España, Guatimala, Tierrafirme, and Perú, by a royal decree of April 14, 1579.” (Informatory Memorial addressed to the king, Juan Grau y Monfalcon; Madrid, 1637.—Bl. and Rb., Vol. 27, pp. 157–158.)
20 “For thirty years after the conquest the commerce of the islands was unrestricted and their prosperity advanced with great rapidity.” (Historical Introduction, E. G. Bourne.—Bl. and Rb., Vol. 1, p. 61.)
“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.” (Juan Grau y Monfalcón in Extracto Historial by Antonio Alvarez de Abreu; Madrid, 1736.—Bl. and Rb., Vol. 30, p. 50.)
This is the point of view taken by Azcarraga in his La Libertad de Comercio en Filipinas.
21 “In 1603, that is, when our colony had only thirty-two years of existence, there were already in the capital 25,000 Chinese, and the number of Japanese must have been also quite considerable, since they formed a colony which occupied the barrios of San Anton and San Miguel, at present inhabited by natives and a great portion of the white population.” (Azcarraga, La Libertad de Comercio, p. 44.)
22 “37. Accordingly the commerce of this city is extensive, rich, and unusually profitable; for it is carried on by all these Chinese and their ships, with those of all the islands above mentioned and of Tonquin, Cochinchina, Camboja, and Siam—four separate kingdoms, which lie opposite these islands on the continent of Great China—and of the gulfs and the numberless kingdoms of Eastern India, Persia, Bengala, and Ceilan, when there are no wars; and of the empire and kingdom of Xapon. The diversity of the peoples, therefore, who are seen in Manila and its environs is the greatest in the world; for these include men from all kingdoms and nations—España, Francia, Inglaterra, Italia, Flandes, Alemania, Dinamarca, Suecia, Polonia, Moscobia; people from all the Indias, both eastern and western; and Turks, Greeks, Moros, Persians, Tartars, Chinese, Japanese, Africans, and Asiatics. And hardly is there in the four quarters of the world a kingdom, province, or nation which has not representatives here, on account of the voyages that are made hither from all directions—east, west, north, and south.” Description of Filipinas Islands, Bartholomé de Letona, O. S. F.; La Puebla, Mexico, 1662.—Bl. and Rb., Vol. 36, p. 205.)
IV. Trade and Commerce: the Period of Restrictions
Hardly had wealth been created by the commerce of the first years after the conquest, when the policy of restriction found its strong supporters in the merchants of Cadiz and Seville, who, accustomed to monopolize the trade with America, looked with jealous eyes upon the rapidly growing prosperity of Manila, the new center of trade. The cotton and silk cloths from China were underselling in Mexico those coming from Spain and Peru, and a good deal of the silver was going, not to Spain, but to the East; hence, the long drawn-out rivalry between Manila, on the one hand, and Cadiz, and Seville, on the other, with America as a third party, also working for her own interest. This commercial activity was the phenomenon which dominated the Philippines for over two centuries, and had such marked influence upon its whole economic development.
Before giving the various decrees passed from time to time to regulate this commerce, it is advisable to discuss the arguments advanced by the two sides. The Spanish merchants contended that the competition of goods coming from the East would destroy the manufactures on the Peninsula; and, further, that the sending of silver to the Orient, would drain the supply available for Spain, and, therefore, in accordance with the mercantilist doctrine, should be prevented. Manila answered by saying that the goods that she exported to New Spain were different from those coming from Spain; therefore, there was really no competition between them. In other words, the demand for either kind of goods was separate from, and independent of, the demand for the other.1 Other arguments were advanced to prove that Manila should be treated with consideration; the driving out of the Dutch from the Moluccas by the Philippine government,2 the preservation of the missionary conquests in the Far East,3 and the maintenance of the prestige of the Spanish crown,4 all of these would result from the maintenance of the Philippines, by making it possible for her to support herself with the galleon trade. These, added to the fact that the trade with New Spain was not so profitable as commonly reported5 on account of the many perils involved in it, entitled Manila to a more liberal treatment.
Restrictions.
The continued protests of the Spanish merchants finally led to the prohibition of the shipment from New Spain to Perú or Tierra-Firme of Chinese cloths brought from the Philippines.6 “And in order that what was prohibited in one way might not be obtained in another, decrees were despatched on February 6 and December 18, 1591, ordering the total cessation of commerce between the islands and Perú. That was later extended to Tierra-Firme and Guatimala, by decrees of January 12, 1593, and July 5, 1595, forbidding the trade of China and its merchandise to all the Indias, except to Nueva España, which was left open to the Philippines.”7 In 1593 a decree absolutely limited the trade between Mexico and the Philippines to 250,000 pesos annually for the exports to Mexico, and to 500,000 pesos for the imports from Mexico,8 to be carried in two ships not to exceed three hundred tons burden.9 It was also decreed that “no person trade or traffic in the kingdom or in any part of China, and that no goods be shipped from that kingdom to the Philippine Islands, on the account of the merchants of those islands. The Chinese themselves shall convey their goods at their own account and risk, and sell them there by wholesale.”10 Further, it was ordered that “the Chinese merchandise and articles which have been and shall be shipped from Filipinas to Nueva España, can and shall be consumed there only, or shipped to these kingdoms after paying the duties. They can not be taken to Perú, Tierra-Firme, or any other part of the Indias, under penalty of confiscation....”11
“Fortunately,” says Azcarraga,12 “that tyrannical provision, meeting with the opposition of the private interests, which it so greatly injured, and among which were included those of the authorities and officials who were called upon to enforce it—was prevented from being carried in force, and thus, in reality, the Acapulco trade continued unlimited until the year 1604, when, by another decree the enforcement of previous laws was ordered.”13 However, evasion of the law was a common practice, and the galleons usually carried very much more cargo than was allowed. The abuses became so apparent that in 1635, at the instigation of the merchants of Cadiz and Seville, a special commissioner was sent to Manila,14 who strictly enforced the law. And, in order to prevent all evasions of the law, it was decreed in 1636 to the viceroys of Perú and New Spain “to prohibit and suppress, without fail, this commerce and trade between both kingdoms, by all the ways and means possible.”15
The rest of the seventeenth century found Manila still engaged in a great commercial controversy with the merchants of Spain; the endless number of petitions sent from the Philippines to the king bears ample testimony to the magnitude of the problem.16
Further petition from Manila resulted in the decreeing in 1702 that in the Philippine Islands two ships should be built, each of 500 toneladas burden, which should transport the goods permitted to that trade; that the citizens should be authorized to convey in these to Nueva España the amount of 300,000 pesos in their products and other commodities, and on the return to the Philippines to carry 600,000 pesos in silver, allowing 100 per cent gain minus the duties and expenses.17 It was further provided in the decree that in the enumeration of the traders should be included the Spaniards in the country, and the military men stationed in the port of Cavite, excluding, however, ecclessiatical ministers, whether secular or regular, and foreigners.18 And he who had no goods to lade was not allowed to give up his right in favor of a third person, but a new distribution was made.19
Induced by protests by Cadiz and Seville based on the ground that the galleons carried more cargo than allowed, and that the great abundance of silk in America had caused the decrease of the textile industry, thus causing the decline of factories in Toledo, Valencia, Seville, and Granada, a royal decree of January 8, 1718, prohibited the carrying in the galleon of silk, woven or raw, from China.20 The only trade which could be carried on was in linen goods, porcelain, wax, cinnamon, cloves, and other goods which were not brought from Spain.21
More petitions came from Manila, and, finally, a royal decree of June 17, 1724, repealed that of 1720, and allowed once more the importation of Chinese silk.22 An attempt on the part of the Viceroy of Mexico to put a stop to the importation of Chinese silk resulted in the royal decree of April 8, 1734, which, besides allowing trade in silk, increased the amount of the trade permitted to Manila to 500,000 pesos of investment and 1,000,000 of returns.23
The galleon trade continued during the rest of the eighteenth century, until 1811 when the last galleon sailed from Manila, and 1815, when the final return voyage was made. The next period in the history of Philippine commerce is characterized by the opening of the country to foreign influence.
Before, however, going into the next period let us see who were entitled to participate in the galleon trade. The right to ship was known as boleta or ticket, and there were as many boletas as divisions in the ship. On the average there were 1,500 such divisions, each worth from 200 to 225 pesos, a good portion of which were given to the governor-general, the religious corporations, the regidores, the favorites and privileged, and the widows of retired Spaniards. Those who had no capital to invest in merchandise sold their boletas to the merchants, and in spite of prohibition, this practice continued with impunity. The cargo consisted chiefly of Chinese and Indian silk and cotton cloths, and gold ornaments, and were sold at one hundred per cent profit in New Spain.24 Almost all the merchants secured loans from the “Obras Pias,”25 which were funds donated for pious purposes, and two-thirds of which loaned at the following rate of interest: for Acapulco, fifty per cent; for China, twenty-five per cent; for India, thirty-five per cent; the rest of the funds formed the reserve. Besides the merchandise and silver the galleons transported the official correspondence, arms, troops, missionaries, and public officials. The officers of the galleon were highly paid. The commander, who had the title of general, made 40,000 pesos per voyage, the pilot about 20,000,26 and the mates, 9,000 each. Most of the crew were natives.27
Effects of the galleon trade
What were the effects of the Manila-Acapulco trade upon the economic growth of the Philippines? There are two answers to this question. On the one hand, those who believe that the policy of restriction was necessary in order to protect the industries of Spain, of course, say that such policy was beneficial. Furthermore, it is alleged that no other economic activity could have been possible during the early part of Spanish domination because, at the time, there were no products of the country which would serve as the basis of a rich and flourishing commerce; there was no capital sufficient to exploit the natural resources of the Philippines. And to show that Manila was benefited by acting as a distributing point of Oriental goods, the prosperity of Singapore and Hongkong is cited; what prosperity would these cities enjoy if it were not for the fact that they act as entrepots of the East?28 The very retention of the Philippines depended upon its ability to support itself in part, and the profits from the trade as a whole made that possible.
On the other hand, the galleon trade absorbed too much of the attention of the Spaniards,29 and caused the neglect of Philippine extractive industries, especially agriculture.30 It attracted the Spaniards into Manila, and, thus, left the rest of the country without the benefit of whatever good they could have done; and in Cebu, the point was reached when, at one time, there was not a sufficient number of persons to fill the offices of alcalde and regidores, and it was necessary to assign to the city a few boletas from Manila.31 Lastly, it enriched only the few,32 and the resulting economic depression checked the growth of population.33
Not everything, however, is to be attributed to the influence of the galleon trade; a good deal of the neglect of the country’s natural resources was due to Spanish dislike of industrial activity. Azcarraga explains that characteristic by saying that the eight centuries of continuous struggle to drive out the Moors from Spain created a chivalrous spirit and a love of risky undertakings; the discovery of the New World furnished a wide sphere of action to that adventurous spirit, and the resulting emigration to the newly discovered lands depopulated the Peninsula to such an extent that labor could be had neither for the factories nor for agriculture. “The current of precious metals flowing into Spain from the mines of Mexico and Perú fascinated the Spaniards; created easy-going and indolent habits; held them off the mechanical arts, formerly called servile, and all desired to gird the word and enjoy the spoils of conquest.”34 This was the real cause of the decadence of Spanish industries, and not, as alleged by the monopolists of Spain, the competition of the Manila-Acapulco trade. With such causes operating to check development, it is no wonder that Philippine industries were in a primitive state down to the last years of Spanish domination.
1 “Number 96. Distinctions in products from the islands, and their qualities with respect to those of España.
“All these products that are trafficked from the islands are divided into six (sic) classes. The first is of silk, in skeins, thread, and trama. The second, the silk textiles. The third, the cotton textiles. The fourth, the products of the islands. The fifth, other small wares and articles that are brought. Of these, the last class amounts to but little, and is not harmful to the commerce of España, as it is composed of rarities and foreign products. The fourth class, namely, that of the products of the islands, by that very fact ought to be exported—a claim that is founded on justice; since it is not usual to prohibit to any province its own trade, and the exportation of its products wherever they may have a sale, even though foreign commerce be denied to it. Besides, this sort has the characteristic of the third, namely, that these wares are so cheap that their like cannot be supplied from España, as has been said, on account of the great difference of their prices. (In the margin: “In number 95.”) Hence, the wares of these kingdoms would not be used any more, even did those of the islands fail; nor less, even if there were an over-supply. For the Indians and negroes care only for the linens of China and Filipinas, and, if they do not have them, they get along without them; for they have no wealth to give eight reals for what costs them one and one-half reals. One thousand bales of linen which is shipped from Sevilla in each trading fleet always finds a sale, and no more can be carried (to Nueva España)—because that would create a lack in España, and it would, moreover, be too advantageous to the foreigners, to whom almost all this commodity belongs. Two thousand bales of cotton textiles exported from Manila are also consumed (there); and the fact that there is less or more does not cause any considerable loss in the linen made from flax and hemp, nor does it involve much money; for the two thousand bales of cotton are worth one hundred and fifty thousand pesos, while one thousand of fine linen are worth more than one million.” (Informatory Memorial addressed to the King, Juan Grau y Monfalcon, Procurator General; Madrid, 1637.—Bl. and Rb., Vol. 27, pp. 200–201.)
2 Ibid., pp. 98–104.
3 Ibid., pp. 115–116.
4 Ibid., pp. 120.
5 Ibid., pp. 186–197.
6 Ibid., p. 158.
7 Ibid.
8 Recopilación de Leyes, Lib. IX, Tit. XXXV, Ley VI. In Bl. and Rb., Vol. 17, pp. 30–31. Jan. 11, 1593.
9 Ibid., Ley XV.—Bl. and Rb., Vol. 17, pp. 31–32. Jan. 11, 1593.
10 Ibid., Ley XXXIV.—Bl.and Rb., Vol. 17, p. 32. Jan. 11, 1593.
11 Ibid., Ley LXVIII.—Bl. and Rb., Vol. 17, p. 33. Jan. 11, 1593.
12 La Libertad de Comercio, p. 49.
13 Recopilación, Lib IX, Tit. XXXV, Leyes LXXIV, LXXV, and LXXVI.—Bl. and Rb., Vol. 17, pp. 42–44.
14 Pedro Quiroga.
15 Recopilación, ibid., Ley LXXVIII.—Bl. and Rb., Vol. 17, pp. 44–45.
16 As to the effect of these restrictions Azcarraga says: “* * * thus, at the end of that century, there was nothing but poverty and discontent in the city; the white population had hardly increased; commerce, confined within the narrow sphere of periodic voyages to Acapulco, was languishing, without attempting to engage in any other kind of traffic; and poverty was reflected even in the very troops stationed in the city, who did duty unshod and without uniform (camisa), frequently committing robberies at the Chinese stores. * * *” (La Libertad, p. 54.)
17 Extracto Historial, Antonio Alvarez de Abreu.—Bl. and Rb., Vol. 44, p. 231.
18 Ibid., p. 236.
19 Ibid., p. 232.
20 Ibid., pp. 256–258.
Also Azcarraga, La Libertad, pp. 58–59.
21 Royal decree of October 27, 1720, enforcing that of 1718, provides further that: “The values of the lading which the said ships are to carry from the Philippines to the port of Acapulco may be up to the amount of 300,000 pesos, which must come invested strictly and solely in the following kinds of merchandise: gold, cinnamon, elephants, wax, porcelain, cloves, pepper, cambayas, and linens woven with colors (lienzos pintados), chitas, chintzes, gauzes, lampotes, Hilocos blankets, silk floss and raw silk spun, cordage, and other commodities which are not silks.” These ships are prohibited from carrying silken fabrics, “satins, pitiflores, velvets, damasks, Pekin silks (Pequines), sayasayas, brocades, plain satins, grograms, taffetas; silver and gold brocades; embroidered pieces of silk stuff for (covers of) beds, the (hangings for) drawing-rooms (estrados), and women’s petticoats; silken gauzes flowered with gold and silver; pattern pieces for petticoats, figured or embroidered; dressing-gowns, chimones, or made-up garments; hose, ribbons, or handkerchiefs; or any fabric which contains silk.” (Commerce in the Philippines with Nueva España, 1640–1736, by Antonio Alvarez de Abreu; Madrid, 1736. (From Extracto Historial.—Bl. and Rb., Vol. 44, pp. 266–268.)
22 Ibid., p. 306.
23 Extracto Historial, Antonio Alvarez de Abreu.—Bl. and Rb., Vol. 45, pp. 57–59.
24 For a detailed list of the goods sent to Mexico, and as to what was done with them there, see Informatory Memorial addressed to the King, Juan Grau y Monfalcon, 1637.—Bl. and Rb., Vol. 27, pp. 198–200.
“Number 95. Trade of the islands necessary in Nueva España, because of their goods.
“In regard to the first part, which pertain to the merchandise, the trade of the Filipinas is so necessary today in Nueva España, that the latter country finds it as difficult as do the islands to get along without that trade; and its lack cannot be supplied with merchandise from these kingdoms. The wares taken to Acapulco are plain and figured velvets, satins, and damasks; grograms, taffetas, and picotes; headdresses and stockings; silk, loose and twisted, in skeins, that reeled on spindles, and woven; thread; tramas, plushes, and other silk stuffs and textiles. Of cotton, there are sinavafas, fine glazed buckrams (bocacies), glazed linen (olandilla), fine muslins (canequies), and semianas; and of cotton and silk, beds, curtains, coverlets, quilts, and other pieces. (They also carry) civet, musk, and amber; gold and pearls; crockery-ware, cabinets, and articles made of wood and other things; and the products of the islands themselves, of which mention has been made (in the margin: “In number 15”). But the bulk of the commerce is reduced to the silk and cotton textiles; for there is but little else that is rare or elegant, or that has much export. From the skeined silk, and the silk thread, and trama are manufactured in Nueva España velvets, veils, headdresses, passementeries, and many taffetas, which were taken to Perú when there were ships that went to Callao, and to other parts of the Indias—where the black, brown, and silver-colored goods that are sent from Sevilla do not arrive in good shape, because the sea rots them. It is known that the skein silk of China is more even and elegant for delicate and smooth fabrics than is the Misteca which is produced in that kingdom; besides that, there is less of the latter kind than is necessary in the country. By this trade and manufacture, more than fourteen thousand persons support themselves in Mexico, La Puebla, and Antequera, by their looms, the whole thing being approved by royal decrees. Of the cotton textiles, linens (lienzos) are used in Nueva España more than any other stuff, as they are so cheap that they sell for one and one-half or two reals per vara. Therefore, they are desired by the Indians and negroes; and when these are lacking, even though there should be an over-supply of the linens of Europa, they do not want them or use them, as those are dear and not so much used by them; and they get along with their own cloths from Campeche or La Guasteca, and others that they weave.”
25 “The basis of it was, and is, the funds called “Obras Pías” (Pious Works). These are funds under various denominations, whose origin was the piety of well-meaning Spaniards, who dying rich have bequeathed large sums for the purpose of lending to deserving traders to commerce or continue their career with. The administration of these is confided to various religious and charitable institutions, or to civil associations—the trustees forming a board, at which the sums to be lent, etc., are determined. Their statutes differ in many unessential points; but their general tenor is the same, viz., that sums not exceeding two-thirds of the fund shall be lent on respondentia at certain rates of interest, which are fixed according to the risk of the voyages; and these, when repaid, shall be added, principal and interest, to the original fund. The interests are 25 per cent. to Acapulco, 15 to Bengal, and so in proportion. The total of the capitals of these establishments (there are 12 or 14 of them), amounted to about three millions and a half of dollars in 1820, of which about two millions are due to the funds on various risks, principally those of New Spain: of this the major part is considered as lost by those best qualified to judge of the subject.
“The principal employ of these funds has been in the commerce to Acapulco; and from the facility with which capital was procured, the excessive gambling spirit which this introduced, as well as the system of mutual accommodations from the trustees of different funds, and the utter absence of the wholesome restraint of public examinations of their accounts, it has resulted that more harm than good has been done by these establishments. The original intentions are entirely perverted, a few small sums being lent to young adventurers (when they have powerful friends), but far the greatest part is employed by the trustees themselves under the name of a relation or friend.” (Remarks on the Philippine Islands, and their capital Manila, 1819–1822, by an Englishman.—Bl. and Rb., Vol. 51, pp. 148–149.)
26 Zuñiga, Estadismo de las Islas Filipinas.
Historia General de Filipinas, José Montero y Vidal, Chapter XXVIII.
27 It is represented that the seamen are allowed to carry each 30 pesos’ worth of goods as a private investment, in order to encourage Spaniards to enter the marine service; but this ought to be increased to 300 pesos (the allowance made to the men on the fleets that go to the Indias), for more Spaniards are needed on the Acapulco trade-route—hardly one-third of the men on the galleon being of Spanish birth, the rest being Indians—and on the rivera of Cavite.” Extracto Historial, Antonio Alvarez Abreu, 1736.—Bl. and Rb., Vol. 44, Pp. 307–308.
28 Azcarraga, La Libertad, pp. 81–95.
29 “This trade and commerce is so great and profitable, and easy to control—for it only lasts three months in the year, from the time of the arrival of the ships with their merchandise, until those vessels that go to Nueva España take that merchandise—that the Spaniards do not apply themselves to, or engage in, any other industry. Consequently, there is no husbandry or field-labor worthy of consideration. Neither do the Spaniards work the gold mines or placers, which are numerous. They do not engage in many other industries that they could turn to with great profit, if the Chinese trade should fail them. That trade has been very hurtful and prejudicial in this respect, as well as for the occupations and farm industries in which the natives used to engage. Now the latter are abandoning and forgetting those labors. Besides, there is the great harm and loss resulting from the immense amount of silver that passes annually by this way (of the trade), into the possession of infidels, which can never, by any way, return into the possession of the Spaniards.” (Morga’s Sucesos.—Bl. and Rb. Vol. 16, p. 187).
“When, without risking any capital of his own, the merchant might thus share the enormous profits of this trade, with no more exertion than signing the invoices and letters (they were written by Indian clerks), and receiving the treasure on the return of the vessel, it is not surprising that for nearly two centuries they neglected all the other commercial advantages which surrounded them, or that such a commerce produced such merchants; the history of it and of them for that period may be confined to a few words:—they were agents of the merchants of Madras and Bengal, receiving and shipping their goods, and returning their proceeds, while their profits were confined to a large commission on them.” (Remarks on the Philippine Islands and on their capital Manila, 1819–1822, by an Englishman.—Bl. and Rb., Vol. 51, p. 150.)
30 ”... This I say, then, Sire, that it is a most pitiable thing that there is not a man in all these Philippine Islands—Spaniard, or of any other nation—saving some religious, who make their principal aim and intent the conversion of these heathen, or the increase of the Christian faith; but they are only moved by their own interests and seek to enrich themselves, and if it happened that the welfare of the natives was an obstacle to this they would not hesitate, if they could, to kill them all in exchange for their temporal profit. And since this is so, what can your Majesty expect will happen if this continues? From this inordinate greed arises the violation of your Majesty’s decrees and mandates, as everyone is a merchant and trader—and none more so than the governor, who has this year brought ruin upon the country. There comes each year from Nueva España a million in money, contrary to the mandate of your Majesty, all of which passes on to the heathen of China. From here, in violation of your Majesty’s decrees, cargoes are loaded for the Peruvians and the merchants of Mexico, without leaving room for those of this country—especially the poor, who are unable to secure any interest therein except for a wretched bundle which is allowed them as a cargo. If I were to go into the multitude of evils which are connected with this, I should have to proceed ad infinitum.” (Letters from the archbishop of Manila to Felipe II; Ignacio de Santibañez; Manila, June 24 and 26, (1598);—Bl and Rb. Vol 10, p. 145.)
31 Azcarraga: La Libertad, p. 68.
32 “By this system for two centuries the South American market for manufactures was reserved exclusively for Spain, but the protection did not prevent Spanish industry from decay and did retard the well-being and progress of South America. Between Mexico and the Philippines a limited trade was allowed, the profits of which were the perquisites of the Spaniards living in the Philippines and contributed to the religious endowments. But this monopoly was of no permanent advantage to the Spanish residents. It was too much like stock-jobbing, and sapped all spirit of industry. Zúñiga says that the commerce made a few rich in a short time and with little labor, but they were very few; that there were hardly five Spaniards in Manila worth $100,000, nor a hundred worth $40,000, the rest either lived on the King’s pay or in poverty. ‘Every morning one could see on the streets of Manila, in greatest poverty and asking alms, the sons of men who had made a fine show and left much money, which their sons had squandered because they had not been well trained in youth.’ The great possibilities of Manila as an entrepôt of the Asiatic trade were unrealized; for although the city enjoyed open trade with the Chinese, Japanese, and other orientals, it was denied to Europeans and the growth of that conducted by the Chinese and others was always obstructed by the lack of return cargoes owing to the limitations placed upon the trade with America and to the disinclination of the Filipinos to work to produce more than was enough to insure them a comfortable living and pay their tributes. That the system was detrimental to the economic progress of the islands was always obvious and its evils were repeatedly demonstrated by Spanish officials. Further it was not only detrimental to the prosperity of the islands but it obstructed the development of Mexico.” (Historical Introduction, by Edward Gaylord Bourne.—Bl. and Rb., Vol. 1, pp. 67–68.)
33 “Trade between America and the Far East all passed for a time through the port of Manila. This commerce was greatly desired by the Spanish colonists of Mexico, Perú, and Chile, but the selfish and rapacious merchants of Spain so influenced the policy of the mother country as to throttle this trading and prevent for more than two hundred years the legitimate development of the islands. From the early part of the seventeenth century until 1837 the Philippines were in the grasp of a protective monopoly, which not only prevented the productive development of the soil, but kept the Filipinos down to those necessarily restricted numbers which attend a population that raises nothing in excess of its daily needs. If there is one thing to be learned from this and every other study of increase of population in a fertile and tropical country it is that population increases in exact proportion to the agricultural production and export.” (Dr. D. P. Barrows, in Philippine Census, 1903, Vol. 1, p. 247.)
34 ”* * * All thrifty activity was regarded as despicable. No trader had a seat in the Cortes of Aragon. As late as 1781 the Academy of Madrid was obliged to offer as the subject for a prize essay the proposition that there was nothing derogatory in the useful arts. Every tradesman and manufacturer sought only to make enough money to enable him to live on the interest of it or to establish a trust fund for his family. If he was successful he either entered a cloister or went to another province in order to pass for a noble. In Cervantes we find the maxim: ‘Whoever wishes to make his fortune seeks the church, the sea (i. e., service in America), or the king’s house.’ The highest ambition of the nation in its golden age was to be to Europe just what the nobility, the clergy, and the army were to single nations. Consequently there was an enormous preponderance of personal service in the industrial organism, and much of this was purely for ostentation. Nowhere in the world were there so many nobles, so many officers, civil and military, so many lawyers and clerks, priests and monks, so many students and school-boys, with their servants. But as truly, nowhere in the world were there so many beggars and vagabonds.” (The Spanish Colonial System, by Wilhelm Roscher, pp. 3–4.)