Part 18
48. That, his Majesty having granted to the island of Luzòn (in which was located the city of Manila) and to the other islands around it only this, that every year there should go to the port of Acapulco one ship to obtain the situado for the maintenance of the fortified posts, conveying only what pertained to white and colored cotton stuffs, pepper, porcelain, raw silk, and other similar commodities which are produced by the islands which obey [the king of España], and with the prohibition of every kind of woven silk stuffs as contraband--for which reason the latter have always been burned on account of the notion of their being made in China and Japòn (which are countries governed by idolaters, Mahometans, and heretics, who are not under the dominion of this crown)--the abuse of this permission had reached such a state that the ship came with a lading of eleven or twelve thousand bales from China and Japòn, so dexterously packed by those infidels that the largest bale which the commerce of España was shipping to the Indias did not include the volume or the value that was enclosed in a bale of those silks, which was less than a vara deep. Moreover, they put therein imitations of all the satins, velvets, ribbons, mantles, hose, and every kind of silks, which were manufactured in España; [and these were] so showy and beautiful that, not only for this reason but on account of the very moderate prices at which they were sold throughout Nueva España, no other kind of silks were used than those of China. The result of this was that all the silk factories in España (which were paying so enormous duties to the royal treasury) had been broken up and destroyed; and the fortunes of those who were trading in the Indias were ruined by the great losses which they had encountered, since the Spanish commerce was deprived of a line of goods so important and rich as is that of the silk, in all its kinds of fabrics.
49. That this loss had passed over to the woolen goods, such as picotes, barracans, [75] and others which were shipped in the trading-fleets; for those who had clothed themselves with these throughout Nueva España were now despising them, observing that for half of what a woolen garment cost them they could procure another of China silk--being apparently as well clothed, although in the quality of the goods they had been deceived. In this manner the Chinese goods carried out of the country three or four millions of pesos in each ship, which was but little less wealth than that carried by a regular trading-fleet.
50. That the damage which this illegal trade occasioned to the royal treasury and to the Spanish trade enabled one to judge of the great amount of property which those ships transported, of the treasures which they carried, of the loss which they caused to the commerce of España, and of the amount which they did not contribute [to the royal revenues]--augmenting by this means the power and wealth of those infidels, who are enemies to the Christian faith and to the crown. For this reason, and because the consulate and commerce of Sevilla firmly believed that this was the greatest loss and the greatest source and cause of the ruin of the trading-fleets, and that which most urgently called for relief with the most prompt and energetic measures: they concluded by entreating his Majesty that he would deign to give orders that the permission given to Philipinas be strictly observed, under the most severe penalties, commanding that its limits be restricted within the limits of its first concession, for this purpose despatching the most rigorous orders; and that the trading-fleets should go punctually and frequently, each year. On this point they expatiated at length, and it is omitted because it does not belong to this subject.
51. In view of this information and of the proceedings in the Council (of which there is no account in the Expediente) it is found that by decree of January 8, 1718, his Majesty stated to the Council that, having been informed of the quantity of stuffs, silken fabrics, and other merchandise which the ship from Philipinas brought, by which the greater part of the silver of Nueva España was carried out of that country, he had decided to prohibit absolutely the trade in the aforesaid commodities. He declared that the only trade which could be carried on was in linen goods, porcelain, wax, cinnamon, cloves, and other products which are not carried from España, to such an amount of these kinds of goods as the Marqués de Valero should notify to the governor of Philipinas, which must be transported by one of the ships which for the last five years had arrived at Acapulco [from the islands]. His Majesty furnished with this a copy of the order to this purpose which he had given to the Marqués de Valero, the tenor of which is as follows: [Here follows a copy of the decree, dated at Madrid on January 8, 1718.]
53. By another decree of June 20, in the same year, 1718, his Majesty sent to the Council, for its information and guidance in the matters which belonged to it, a copy of another decree (which was issued to the Council of Castilla), prohibiting the importation and use of the fabrics from China and other parts of Assia, since this was to the injury of the manufactures and commerce of España; its tenor is as follows: [A copy of this decree is also given].
PERIOD VI
Of what occurred from the year 1718, in which the commerce of silken fabrics was prohibited, up to the year 1722, in which the merchants of Philipinas protested.
55. The Marqués de Valero, then viceroy of Mexico, in a letter of March 12, 1719--accompanied by a duplicate of another letter dated June 20, 1718, in which he acknowledged the receipt of the despatches in the private correspondence, dated January 8 of that same year, which prohibited all silks in the ship from Philipinas--considered the inconveniences which would result from that commerce being reduced to linen goods, porcelain, wax, pepper, cinnamon, and cloves, excluding stuffs, and raw silk and [silken] fabrics. For, he said, if this prohibition should be put in practice, the result would be the decay of religion, and the risk that it would be neglected, and its extension would be endangered and even exposed to ruin although this matter had cost his Majesty so much solicitude in promoting and assisting the missions for preaching the faith. [He declared] that the Spanish families who were there would abandon the settlements, for they could not maintain themselves in those islands without the trade in the aforesaid commodities, since that in the merchandise allowed to them had no profit, on account of its low price and the little demand for it. That the natives of Nueva España were also included in the prohibition, since their usual material for clothing was the stuffs from China, on account of the moderate prices of these, and because they could not use the cloth from España, since it was more expensive--unless, if they are deprived of the former, it will follow that they consume the latter; for if their need and poverty would permit it they would use the Spanish cloth, since all value it more on account of its greater durability and better quality. That the arrival of the trading-fleets was welcomed by the rich merchants, but that most of the people in the kingdom were much more eager to see the ship from China; and, if its arrival were delayed, one did not fail to notice many expressions of regret. That the royal treasury was notoriously injured; for, with the duties which the silk merchandise yielded, the situado was forwarded to Philipinas and the Marianas Islands, and in default of those duties it would be necessary to make the remittance from the funds in the treasury of Mexico. That would cause arrears in paying the fixed charges which the treasury had to carry, and could hardly meet with all its income, and the royal treasury would also be injured by the loss of the ten per cent which was paid by the silver sent in return for merchandise; and, besides, the few commodities which were carried would not yield enough to cover the cost of the navigation.
56. The fiscal--to whom it was ordered to send these representations, that he might examine them and compare them with the Expediente--made his reply on January 10, in the year 1720, reaffirming the motives which had prevailed, since the discovery and conquest of those islands, in permitting to them the commerce with Nueva España, so far as it was necessary to their preservation. [He also stated] the infractions of law which had changed the amount permitted--250,000 pesos of principal, and 500,000 for the returns (which "Period i" mentions)--and what was ordained by the royal decree of August 12, 1702, for the regulation of the management and continuance of this commerce; and declarations made by his Majesty in regard to unsettled points which arose, in the meeting of the Council in 1712, from which despatches were sent on December 12, of that year (which are mentioned in "Period iii"); and the fact that the abuses with which the merchants of Peru had carried on commerce with Nueva España had made it necessary that in the year 1631 that trade should be entirely prohibited. He was of the following opinion: that the permission to trade ought to be continued to the citizens of Philipinas, for the damages to the commerce of España would be avoided if that of Philipinas did not exceed the 300,000 pesos which were allowed to it.
57. That if this commerce should perish, trade and intercourse in those distant provinces would cease; and if they were cut off from communication with Nueva España they would remain exposed to seeking for commerce with the adjoining nations, and in imminent danger of trading away at the same time their own rights and customs, and of going to perdition--the Catholic faith being extinguished entirely or in part, the propagation and maintenance of which was and always had been the chief care of his Majesty.
58. That although in the royal decrees of January 8, 1718, there was reserved to the islands the trade in sugar, porcelain, linens (called "elephants"), [76] and spices, these commodities were not adequate for maintaining a continued commerce, nor for producing the revenues which those islands needed.
59. That the government should not disregard the consideration brought forward by Señor Valero, of the damage which ensued to the poor vassals of Nueva España from depriving them of the privilege of supplying themselves at less cost with the fabrics from Philipinas; for if they cannot obtain these, and the poor are unable to meet the expenses of the Spanish merchandise on account of its high price, they would be exposed to the wretchedness of destitution. In conclusion, he said that advice should be given to his Majesty that the remonstrance of Señor Marqués de Valero was just; and that deference should be paid to it, by suspending the operation of the above-mentioned decrees and warning all the officials in those regions that they must conform without any variation to the orders given in the decree of the year 1702--with various provisions which he proposed, one of which was the total prohibition of the commerce in case the conditions of that decree were violated.
60. Having considered this reply of the fiscal, it was agreed by an
## act dated February 1, 1720, to advise his Majesty in accordance with
all the preceding recommendations; and the Council was of opinion that it should reiterate the enforcement of [the commands in] the despatches of August 12, 1702, and December 13, 1712, with a strict stipulation that the ship could not be allowed to sail if the value of the 300,000 pesos of the permission were invested in silks only.
61. While this opinion was in the royal hands, an order from his Majesty came down to the Council dated September 5, 1720, in which--influenced by a memorial which had been presented by Don Manuel Lopez Pintado in the name of the consulate and commerce of Cadiz; and by a letter from Marqués de Valero just then received, dated March 8, in the same year--his Majesty commanded that the Council should inform him of their opinions in regard to the prohibition of stuffs and silks from China in the Philipinas ship, after first listening to the memorial from the commerce of Cadiz.
62. The Marqués de Valero in the letter here cited of March 8, 1720, urging what he had set forth in previous letters in regard to the difficulty which he encountered in carrying out the decrees which prohibited the commerce in silken fabrics, also spoke of the new distress in which the islands were, on account of the plague of locusts, failure in their harvest of rice, and the scandalous proceedings of Governor Bustamante. The viceroy said that it seemed to him better for the service of God, and that of his Majesty, to delay the regulations which changed the method in which that commerce had been conducted, until his Majesty should make such decision as pleased him in regard to the viceroy's previous memorials; and he said in conclusion that he had also found it desirable to make this suspension of the decrees because the emperor of China had hindered his vassals for the last two years from trading with the islands--which had resulted in the galleon of that year carrying but few silk goods. Consequently, the greatest scarcity of that merchandise had been experienced, for, even before the arrival of the ship, a libra of silk spun [beneficiada] and dyed was worth 26 to 28 pesos.
63. In consequence of this order of his Majesty there were sent to the consulate of Cadiz copies of the decrees of the year 1718 and of the letters of the Marqués de Valero which have been noted, in order that the consulate might report in regard to its opinions, fully and clearly stating the inconveniences, or the advantages, which might follow the prohibition of the stuffs, silken fabrics, and other merchandise from China. They answered this in a letter of July 16, declaring that on this subject they had made on different occasions the representations which were contained in two official documents which accompanied, and that nothing occurred to them to be added to these (which are the ones noted in nos. 46 and the following, "Period v"). [77] Orders were given that the fiscal should examine the whole matter anew; and he in his reply of September 11, in the same year, 1720, taking into consideration what he had stated in another of January 10 preceding (which is the reply that is indicated in no. 56), added, that the consulate only complained in its memorial and in the remonstrances of its merchants of the illegal manner in which the commerce of Philipinas was carried on; and the fiscal asked that this be restricted within the limits of the permitted amount.
64. He stated that it was a mistake to assume that the permission was only for the products belonging to the native citizens of Philipinas, because the laws which permitted this commerce did not contain such limitation, and continual usage had excluded it; for always the islands had traded in silken fabrics without hindrance, for with the products of the country it would be impossible to carry on an annual commerce to the amount of 300,000 pesos.
65. That the absolute prohibition of that commerce which the consulate proposed in its memorial (it is not in the Expediente), following the precedent of prohibiting the commerce of Peru with Nueva España, ought not to be considered. For the latter prohibition left both those kingdoms free to trade with Castilla, by which the lack of commerce between them was made endurable; but this result could not occur with Philipinas if the commerce of Nueva España were prohibited to them, since there remained no other of which they could avail themselves.
66. That, if the products of the natives of those islands were sufficient to make up the annual [amount of] trade to the extent of 300,000 pesos, it would be just and reasonable that the commerce in silken fabrics be prohibited to them; but as the aforesaid viceroy positively stated that those products were not sufficient for that purpose, it would not be right to deprive them of this privilege without further knowledge of the subject. The conclusion of the fiscal was, that orders should be given to observe the royal decree of August 12, 1702; and that the viceroy and Audiencia of Mexico, and the governor, Audiencia, archbishop, and royal officials of Manila, should send in information very clear and detailed on the question whether the products of the country could fill up the amount, [of exports] assigned to that commerce.
67. The Council, in view of all that is mentioned in this "Period vi," and of a summary of the context of the letters of the Marqués de Valero, and of the replies of the fiscal, were of opinion, in their session of September 23, 1720, that his Majesty should be pleased to command a repetition of the orders given for the fulfilment of the regulations issued on August 12, 1702, and September 13, 1712--with a strict stipulation that the Philipinas ship should not sail with an investment which should exceed 300,000 pesos, and that to be in the commodities which were specified [therein], with exclusion of every kind of silken fabrics; and with other measures and statements which are contained in the despatches that were issued for the enforcement of those decrees, dated October 27, following, of which mention will be made.
68. At this session it pleased his Majesty to make the following decision: "I agree entirely with what the Council proposes; and the corresponding orders shall be immediately given, with the most punctual and strict charge to the officials whom this concerns (and especially the viceroy of Nueva España) that all the above orders shall be carried out promptly, without any objection or alteration--with the warning that, if any neglect or delay in fulfilling this decision is experienced, proceedings shall be brought against them as disobedient to my orders. And in order that those officials, as also private persons in Nueva España and Philipinas, may be fully informed of this determination, a decree shall be drawn up with the utmost clearness and precision, which shall include the whole of this business. This decree shall serve as an ordinance, in which, without reference to others, shall be expressly stated what every person must observe in this commerce, and the penalties which transgressors will incur, in accordance with what the Council proposes, to the end that, by placing an authentic copy of it at the heads of the registers on the ships from Philipinas and making it public, no one can allege ignorance. The Council shall pay especial attention to the manner in which proceedings shall be taken in this matter, not only in Nueva España but in Philipinas, in order to secure the punishment of those who disobey my orders, and of those who shall delay their execution."
69. In consequence of this decision the royal ordinance which was mentioned in it was drawn up, with date of October 27, 1720. It was addressed to the viceroy Marqués de Valero, and the Audiencia of Mexico; the royal officials of Acapulco; the governor, Audiencia, and fiscal of Philipinas; and the archbishop of Manila; and copies of it were given to the consulates and merchants of Cadiz and Manila, at their request, in order that they might print it. Its tenor is as follows:
70. [This decree is addressed to Marqués de Valero, viceroy of Nueva España. After rehearsing the arguments brought forward in previous letters received from Valero, the decree ordains the following rules for the commerce of Philipinas: Two ships shall go annually from the islands to Nueva España, each of 500 toneladas. "The value of the lading which the said ships are to carry from Philipinas 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], [78] chitas, chintzes, gauzes, lampotes, Hilocos [79] 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." The penalties for transgression of this order are confiscation of such goods, payment of three times their value (this amount to be shared between the royal fiscal, the judge, and the informer), and perpetual exile from the Indias; and the confiscated goods are to be burned. Declarations of goods shipped are absolutely prohibited; those who are permitted to trade must be chosen by the city of Manila, without the aid of any official; the duties to be paid are fixed at 100,000 pesos for each voyage, with the express stipulation that this payment is to be called adjustment [regulation] of duties, and not indult; no religious person and no stranger may be allowed to ship goods; every shipper must present an itemized invoice of the goods sent; the ships must not be overloaded; no right to lading space may be transferred to another person. Provision is made for inspection, valuation, and landing of goods, and for the disposition to be made of such as shall be confiscated; and the limit of six months is fixed for the disposal of all Chinese silk goods that may be on hand in Nueva España when the decree is published, after which time all that are found must be burned.]
PERIOD VII
Of what was done in Manila on receiving the decree of October 27, 1720. Recourse to the Council by their deputies. Reply from the commerce of Andalucia, and what was decided in regard to this matter in the year 1724.
71. On August 2, 1722, the governor, Marqués de Torre-Campo, received at Manila the ordinance despatched on October 27, 1720, of which the preceding "Period" speaks. Having caused this decree to be published by a proclamation in that city, record of it was made in the offices, and it was communicated to the municipal council in open session. The cabildo protested against it, promising to obey, but resolving to set forth to the governor in the first place, and afterward to his Majesty, the damages and troubles which would result from its execution to religion, to the royal treasury, and to the greater welfare of those islands, from their not continuing to enjoy the permission to trade in fabrics of silk, which they had possessed for more than one hundred and forty years. They would therefore be obliged to entreat that his Majesty give them permission to retire, with their families, to the lands and domains of his Majesty which they should consider most suitable.