The Spanish galleons which used to sail the Pacific Ocean between Manila and Mexico have been the subject of many a romance. The world never tires of reading the stories written about them. They seem to belong to the age of romance and poetry. The galleons come, however, pretty close to modern times. The last one left Manila for Mexico in 1811, and the last one for Manila sailed from Acapulco in 1815.

These ships were in shape something like a half-moon. They were very high at bow and stern, short from fore to aft, and very wide. They were of about 1,500 tons burden, with light draught. They usually had four decks, and always carried big guns.

The galleons were the Spanish mail ships, and the only carriers for trade between the islands and Mexico. This trade with Mexico was the colony’s only source of income. The local government had no money of its own. It could not act independently; all that it brought in tribute and taxes to the royal treasury belonged to the Crown, to be disposed of at the king’s will.

Not only were the islands governed through Mexico, but all their trade was with that country. So severe were the laws that restricted their trade, that the people were not allowed to go even to China and Japan to buy goods. They might buy only such goods as Chinese and Japanese traders brought to Manila.

Once a year, usually in July, a galleon left Manila laden with goods from the islands. These were sold in Mexico, and the money which they brought, or an equal value in Mexican goods, was sent back on the return galleon. We have seen how great were the risks which these ships ran in making their voyages. The enemies of Spain often captured them, while some were lost at sea and never again heard from. It was not all romance, the life of those who sailed and manned the galleons. Often there was greed and cruelty to contend with, rather than poetry and story to be lived. Always there was danger, and it was not the spirit of adventure, but the desire for gain that sent these men to sea.

The many risks which the galleons ran made shipping ventures uncertain. Nor was this the greatest ill which the Manila merchants had to bear. The merchants of Spain were always jealous of them, for they were afraid that the island trade with China and with Mexico would hurt their own business. So they were always clamoring for laws that should keep Manila merchants from dealing with those countries.

By the beginning of the eighteenth century very harsh laws had been made governing all shipments. Goods might be shipped only in bales of a certain size and weight, and only a limited number of bales might be sent by each galleon. Nor did the restrictions end here. There were some goods in which Manila merchants might not deal at all. They could ship no woven stuffs save the finest linen. If the goods sent to Mexico by the Philippine Government brought more than a certain amount in Mexico, the full sum could not be sent back in money. The islands must take the surplus in Mexican goods.

So business suffered, and each year the country grew poorer. At the same time the men who ruled the country grew very rich. One acting governor-general, in less than two years of service, got together a fortune of $250,000. There were other officials, as well, who managed to take home with them to Spain sums nearly as large.

All this, of course, worked hardship in the islands. Money was very scarce. Merchants became bankrupt and had to go out of business. Often the government itself had no money with which to pay for public work. The army, too, suffered. The soldiers had no barracks, but lived as they could, and wherever they found shelter. Often there were long periods when no rations were issued to them, and they begged their food from house to house. When their demands were not granted, they would take by force what they wished, and this led to great evil.

A large army was needed to control the people and to enforce payment of tribute. This tribute was collected from the natives for the support of the government. Those who had not yet been baptized were taxed only a small sum; those who belonged to the Church paid more.

Few, however, paid in money. Nearly all paid in kind—in goods which they made, or produce which they raised from the land. All tribute in goods was kept in the royal storehouses until the galleon was about to sail. Then the goods were sent to Mexico, to be sold. Sometimes, however, some of these goods were traded for merchandise brought to the islands by Chinese dealers.

A certain per cent. of the price which the shipments brought in Mexico was sent back to Manila to pay government expenses. Usually, however, this fixed percentage was not sufficient to meet these expenses. It was needful, then, to increase it by a further sum from the royal treasury. This additional sum was called the “Real Situado” (rā´äl sē tö´ä dō).

One galleon a year was not enough to meet the needs of merchants who wished to ship goods to Mexico. In 1724, therefore, a royal decree was made public that thereafter two galleons of 500 tons each would be sent. This decree, however, limited the number of merchants who might ship goods, and the amount which each might send. It also fixed the amount in cash that might be taken in payment. All values over this amount must be taken in Mexican goods.

A few years later this decree was revoked. Only one galleon a year was to be sent, and new and more severe restrictions were put upon all shipments. It became more and more difficult, as time went on, for the merchants of Manila to carry on trade.

During the eighteenth century no foreign merchants were allowed to do business in Manila. Spain, in fact, did all that she could to kill trade and industry in the islands. At the same time she compelled those who ruled the country to enforce payment of the last penny’s value of tribute that could be drained from the country.

The governor-general at this time (1754–1759) was Pedro de Arandia (dā ä rän´dē ä). He was one of the most able and enterprising officials the islands had thus far had. He tried to make a good many reforms in the country, and to build up its commerce. He is said to have died of worry and regret that he could not rule the land as he thought right, and at the same time be at peace with those about him who were also in authority.

Arandia showed himself to be something of a statesman. He made reforms in the army, and tried to bring the wild tribes to acknowledge Spain’s rights in the islands. At the same time he did many dishonest things. He made a great fortune for himself while in office. Perhaps he was sorry for his dishonesty afterwards, for when he died he left his fortune to religious institutions. In those days men saw no wrong or absurdity in devoting ill-gotten wealth to carrying on good works.

It was Arandia who formed the first real military body in the country. This was a regiment made up of five companies of Filipino soldiers and four companies of Europeans. The latter Arandia had brought with him from Mexico. He called the whole corps the “King’s Regiment,” and took great pride in it. As troops came in from the provinces they were added to the regiment, until at last it numbered about 2,000 soldiers in two battalions of ten companies each. In October of 1754 the soldiers, for the first time in the history of the islands, were quartered in barracks. They were also, both officers and men, paid regularly every two weeks.

In 1755 the Chinese question came up again. This time it was decided to send home all those Chinese who would not be baptized. They were given a few months to wind up their business, and a day was set when they should leave the islands. All who accepted baptism were allowed to remain, and a good many did this. Over 2,000, however, were sent out of the country on June 30, 1755.

Need now arose for shops and for small traders to carry on business in place of these Chinese. To supply this need a trading company of Spanish and half-Spanish was formed in Manila. This trading company was in existence for some years, but was never very successful. It could not buy on as good terms as the Chinese had been able to make, nor could it sell to such good advantage. It received a great deal of aid from the government, but finally made a bad failure and went out of business.

The ruling which sent the Chinese out of the islands worked other harm to the business of the country. Not only were there none to do the work which the Chinese had done, but their going was a direct money loss to the government. The Chinese had been heavily taxed, and when they were sent away a shortage of $30,000 in the tax receipts followed as a direct result. This made money so scarce in Manila that a petition was sent to Spain asking for a reduction of the royal dues. These royal dues were the amount which the colony had each year to raise for the king, and the government was now scarcely able to collect it from the people.

But Spain was in great need of money. Wars with other nations had almost emptied her treasury, and the petition for reduction was refused. A decree was passed, however, which made things a little easier for the merchants. The islands must pay the full amount of the royal dues, but merchants might send by the galleon more goods and goods of a finer quality than before. They might also bring back more Mexican goods. In this way they could make more money, and thus the country was better able to raise the sums demanded.

Summary.—The only trading ships that carried shipments of goods from Manila were the Spanish galleons. The entire trade of the islands was with Mexico, and was restricted by very severe laws. A galleon sailed but once a year, and the amount of goods which could be sent by her was limited by law. The great risks which the galleons ran made shipments uncertain of return, and business was at a disadvantage. In 1724 a decree was made public allowing two galleons a year, of 500 tons each, to be sent. The number of merchants who could ship goods was now limited, and the amount that each could send. Later this decree was revoked. Only one galleon could be sent, and more severe restrictions were put upon shipments. No foreign merchants were allowed to do business in Manila. In 1754 Pedro de Arandia became governor-general. He made many improvements in the army, and tried to build up trade. He formed the first real military body in the islands, and called it the “King’s Regiment.” In 1755 a law was made that all Chinese who refused baptism should be sent out of the country on June 30. Over 2,000 were sent away on that day. This made a dearth of traders, and a trading company of Spanish and half-Spanish was formed. It was never a success, however. The departure of these Chinese cost the country a loss of $30,000 in taxes that year. This made times so hard that the colony prayed the king for a reduction in the royal dues. Their petition was refused, but some of the restrictions in regard to shipments by the galleon were made lighter. Merchants could ship more and better goods. This made matters easier, and the country could better meet the demands of the Crown.

Questions.—What were the Spanish galleons? How often did they sail? When did the last one leave Manila for Mexico? Why were such severe restrictions put upon the trade of the islands? What were some of these restrictions? What improvements did Governor-General Arandia make in the army? Give an account of the decree expelling the Chinese from the islands. What effect followed the departure of the Chinese?