Number 1. Intention of this memorial, in which are discussed all the principal matters of the Filipinas Islands.

Sire:

Don Juan Grau y Monfalcon, procurator-general of the distinguished and ever loyal city of Manila, [ 56 ] capital of the Filipinas Islands, makes, by authority of that city, the following declaration. Since the preservation of the islands is the most efficient means for that of all the states which this crown holds and possesses in Eastern India and adjacent parts, and consequently [of all those] in the Western Indias; and as it is positively known that there is no other way of assuring this end except by the commerce conceded to the islands with Nueva España—which is in such a condition that by only reducing it, or by deranging it as regards its amount, or the manner in which it is carried on, it will be necessary that it cease; and that if the inhabitants lose what supports them, all the islands will be lost: some persons, and especially Captain Francisco de Vitoria Baraona, with less attention and knowledge than is requisite in treating a matter so remote, serious, and politic—which demands so much more than ordinary foundation for its proper understanding [on account of not understanding it— MS. ]—proposed to your Majesty certain expedients or counsels; but, although these should be directed to the increase of the forces which the arms of España maintain in the seas of the Orient, in order to oppose them to the numerous enemies who are trying to overthrow our power in those seas, and have the desire to end it, one would believe that they were directed with especial purpose to weaken and [ 57 ] obscure that power, and thereby to extinguish the best and most creditable [finest— MS. ] military post that this great monarchy possesses outside of Europa. And inasmuch as the matter pertains not only to the conservation of those vassals, but also to the general subject of your Majesty’s service, your vassals, attending more to this consideration than to even that result—although the one does not suffer without the other, since some orders originating from the expedients proposed by the said Captain Francisco de Vitoria, have begun to be put in force in Nueva España—and recognizing from their beginnings how much the issues are in danger and how important it is to heed in time the dangers that threaten, and successfully to prevent them, on account of the impossibility that they can be checked later (for it is easy, at the beginning, to overcome what, when it is once introduced, is usually impossible to conquer), are attempting to represent those dangers in this informatory memorial, which they lay at your Majesty’s royal feet. In it, taking occasion from that which is most important and weighty, all the affairs of the Filipinas Islands will be touched upon, and those of their conservation, government, and commerce—and all with the truth, thoroughness, accuracy and knowledge that ought to be used, not only in general, but in each one specifically; so that once explained, in a complete report of the disadvantages and advantages existing in each point, the decision most advantageous to the service of God and of your Majesty, and to the welfare of those islands, may be made in them all. The claims made in behalf of the islands are reduced to the petitions which are presented in a separate memorial, through which the inhabitants hope to [ 58 ] receive the favors that their necessities and condition demand.

Number 2. Condition of the commerce of the islands, and dangers from any changes therein

To begin with the fact that furnished a reason for so purposely discussing these matters: it is presupposed that the commerce of the Filipinas to Nueva España was carried on with some degree of prosperity, although with all the restriction that could be endured—albeit the royal orders were in certain cases less closely observed than seemed desirable, and it was an obligation to attend only to what demanded correction, and to what was sufficient to adjust the commerce, and reduce it to its best method. But another method was proposed which would have completely checked or suppressed it, by advising measures that would so alter the former one that, even if there were any irregularities in the old method which are avoided in this, that is accomplished by impeding and ruining the commerce; so that it will become necessary, in order not to permit one slight loss, to cause many, so irreparable that either the ruin of the islands will follow from them, or the total expense of their conservation will fall back on your Majesty’s royal treasury. And although it is always right (and today more than ever) to take care that since your revenue is not increased, it be not diminished, it is not a successful expedient to represent the saving of expense and the increase of income, if from what is gained on the one side, results on the other, either the loss of what it is advisable to defend, or the addition of heavier expenses for its defense. For there are matters which have attained so even and [ 59 ] regular an equilibrium and balance, that, from whichever of its parts one subtracts or adds, the other side inclining is unsettled, and the structure that they compose is destroyed. One can easily understand that if your Majesty were to dispense with the payment of avería 2 on the royal treasure that comes from the Indias in the war and trading fleets of their line, there would be a clear gain annually of more than half a million, in both silver and gold; but from that gain would result the failure of means to maintain the principal. And if the freighters, and those who are interested in the rest [of the trade] can with just cause excuse themselves from attending to the avería; and it is necessary that this treasure, as well as that of private persons which is brought with it, be accompanied by an armed force sufficient to resist those who have so great desire to pillage it: the alternative is either that it come without that force, and thus liable to lose more in one year than the expense for its defense in ten, or that all the cost be loaded on to your Majesty’s treasury, by which doing away with the avería would be a greater expense than would paying it. Who can deny that if the customs duties in the ports of España were to go up to fifty or one hundred per cent, they would not be worth ten times more than they are worth at present? But who would say that such an expedient would ensure the duration of commerce, and the ability of your vassals and the foreigners to maintain it? If the immediate result of [ 60 ] increasing the duties must be the loss of the principal from which they are collected, the ruin of trade, the desertion of the ports, the impoverishment of your vassals, the depopulation of the cities, and the ruin of everything, one can easily understand that this scheme would, under pretext of increasing the royal treasury, ruin it and destroy the kingdom. These examples are no different from what is observed in the commerce of Filipinas. It is represented that, by the measures which are ordered to be put in force, the duties in the port of Acapulco alone will be increased one million seven hundred thousand pesos; and although this calculation, as will be seen, has no foundation, supposing that it did have, that increase would result in such a decline of trade there that everything would go to ruin. [ In the margin : “In numbers 83, 85, and 91.”] 3 And if the wealth on which that trade depends should fail, either your Majesty will alone sustain the Filipinas, or you will have to abandon them. The first is almost impossible without spending twice as much as is now spent. The second has the disadvantage that will be explained. [ In the margin : “In numbers 6–44.”] Therefore the execution of the methods proposed at once carries with it irreparable injuries, which, after they have happened, will be so difficult of remedy, that the return of things to their present condition may not be possible. As this [present] condition has become established during the course of many years, it is preserved both by the wealth that those who sustain it have acquired during those years, and by merely allowing it to continue. But, if those two [ 61 ] requisites fail, first will be experienced the loss of courage in the ruin [that will ensue], as the return [of courage] can be seen in the restoration [of the present condition].

Number 3. Commissions given to Licentiate Quiroga, and their execution

Your Majesty was pleased to order Licentiate Don Pedro de Quiroga y Moya, who went to Nueva España the past year of 635, on this and other affairs, by instructions in regard to the commerce of Filipinas, to establish a new system in the port of Acapulco, which is the point where their ships arrive. And although it is understood that the mandate was general, in order to correct and prevent the illegalities which are committed at that port in the trade of the islands by taking greater quantities of silver away from Nueva España, and bringing in more cloth from China, than is allowed by the [royal] permission; and although he was ordered to attend to this with the greatest care—not only to investigate the past but to provide for the future—and that he should issue ordinances for everything, give instructions, and advise your Majesty in the royal Council of the Indias, with full commission limited to certain times among both the officials and those who are not, with appeals to the tribunal whence it emanated: orders were also given him to go to Acapulco to visit the ships from the islands, and ascertain whether they transgressed the law by carrying either more than was allowed, or without register what they were allowed to carry in the ship, in order to escape the royal duties. This is what is known of his commissions in general terms; and in [ 62 ] detail some memorials were given to him and information of the damages, and of the remedies that could be applied; so that from these he could accept what was practicable, and might either execute or give advice of what he deemed most advisable, both in the increase of the duties, and in making the appraisals of the merchandise, in which consists the most serious and the most dangerous aspect of the matter.

Number 4. Uneasiness caused in Nueva España, and what can be feared in the islands

The innovation and disquiet caused by these commissions in Nueva España (where it is known that they have arrived) has been very great, and as notable is the uneasiness and embarrassment among the citizens and exporters of Filipinas, who—without recognizing in themselves any guilt which accuses them, any crime which burdens them, or any proof which condemns them—have, for the sole purpose of not becoming liable to denunciations, 4 whether false or true (for all denunciations are troublesome), and to what ignorant witnesses, the evil-intentioned, or their enemies may depose, tried to serve your Majesty beyond what their wealth allows and their abilities permit. On that account, so great has been the assessment on the inhabitants of Filipinas, that it will be impossible to pay it without their total ruin, and [ 63 ] they are not those who are guilty of the violations of law which some are attempting to prove. Consequently, the inhabitants have petitioned that this assessment be not made. Nothing is said at present of the other things that will result from it to [the harm of] the islands. [ In the margin : “In numbers 45 and 87.”— Ex. his. ] This memorial will hint at some things, and time will continue to show them, if not by the causes that are now operating, then by the effects, which will reveal themselves. And even if these are less than those that may be expected, they will require very considerable attention and cause very sensible injury—as is usual with any innovation of the magnitude of this; for that which only changes and embarrasses the course of affairs, causes more damage than gain in what it reforms.

[V. Purpose to which this memorial is directed.—Ex. his.]

In order to avert the dangers that threaten, it is the intention to present some measures and the reasons on which they are based; so that, without departing from what must be considered in the first place (namely, the service of your Majesty), and then the conservation of those islands and of their citizens and residents, the evils may be corrected, the violations of law prevented, and the welfare of that so remote and afflicted community attended to—which, although so far away, attends so conscientiously to its obligations, ever preferring those duties to the possessions and lives of those who form and sustain that colony, risking and even losing them for the defense of that (although remote) very important part of this Catholic monarchy. [ 64 ]

[VI. Proposition to abandon the islands, and its foundations.—Ex. his.]

The Filipinas Islands, which dominate the archipelago of Sant Lazaro, merit, for many claims, causes, and reasons, the esteem in which they have always been held. Contrary to all these, it was represented already, in the times of the sovereigns your Majesty’s grandfather and father, that it seemed advisable to abandon the islands, and leave them to whomever cared to occupy them. It was remarked in the Council of State, where the matter was ventilated, and where a consultation was held, the question being presented with the motives for this resolution, that those islands not only did not increase the royal revenues, but even decreased and diminished them, and were a continual cause of great and fruitless expense, as they are so many, so remote, and so difficult of conservation. The instigators of this proposition availed themselves, as says the author of the History of the Malucas , 5 of the example of the kings of China—who being the sovereigns of the islands, and so near that they could reënforce them in a short time, as being so adjacent and near their great continent, abandoned them, in order not to be under obligation for the expenses and cares that were necessary to maintain them. They said that España’s method of governing them was very burdensome and prejudicial to the monarchy, and was without any hope of being improved, because of the great amount of silver that was sent to the islands from the Indias on that account, both for the ordinary expenses of war, and for the conservation of commerce—all of that [ 65 ] silver passing to Assia, whence it never issued. They said that the states, so scattered and so weakened by so many wide expanses of water and remote climes, could scarcely be reduced to union; nor was human foresight sufficient to introduce union in that which nature itself, and the way in which the world was put together, separated by so distinct bounds. That was proved not only by reason but also by experience, which had discovered and proved how difficult and even impossible was the conservation of those islands, unless the cost were very greatly in excess of the profit—although, in this matter, one should first decide whether [questions of] honor and polity counted for anything.

Number 7. More attention should be paid to the conservation of states than to the increase of the royal revenues.

These reasons, and others which were advanced, were originated and accepted by some who paid more heed to the increase of the royal revenues than to the advantage with which those revenues ought to be, and generally are, spent; for, although kings are obliged to regard that increase as the blood of the mystical body of their states, it must be without injury to the reputation of the states. For since, as is a fact, they must try to acquire riches in order to preserve their reputation and to increase their treasure by avoiding superfluous and little-needed expenses, it will not be a well-founded argument that, in order to avoid spending their revenues, they should allow what they already possess and enjoy legitimately to be lost. Such a course would be to prefer the less to the greater, and the means to the ends; since we see not [ 66 ] few millions spent on the conservation of a fortified post to which belongs, at times, nothing but the reputation of arms. If its defense is justifiable for that reason, it would be more justifiable if on such a place depends not only the reputation of the crown, but the preservation of many other reputations, which would be risked by losing that post, and which will be assured by maintaining it. Such is the peculiar importance of the Filipinas Islands, as will be proved in this memorial. [ In the margin : “In numbers 41, 42, and 43.”]

Number 8. As, and for the reasons that, Flandes is preserved, the islands should be preserved

What state does your Majesty possess that costs as much as Flandes, although it is almost the least one of this monarchy? Because in Flandes all the reasons may be verified that are alleged in regard to the islands—namely, that they are costly, difficult to preserve, a drain of so much money, and separated from the other states—would it be prudent to influence [the crown] by those reasons to abandon that state? There can be no doubt that even the first proposition of such a nature would be condemned as imprudent, and lacking the basis of policy that such measures ought to have; and that from its execution would result, leaving aside other damages, the loss of many states of this crown, and their allies, which are now maintained by only maintaining Flandes, although at the price of so costly a war. Therefore, if the Filipinas possess that same importance, and if the conservation of the two Yndias results from their conservation—or at least from their being less exposed to notorious risks, which, were that Flandes of [ 67 ] the new world lacking, would threaten them—what more notable reason of state can there be for not deserting them, and for characterizing as justifiable and necessary all that is spent in them, as is above mentioned?

Number 9. Resolution of preserving the islands well founded

Giving more heed to this than to all the propositions [made to him], King Felipo [Phelipe—MS.] Second, not lending ear to so pernicious an opinion, resolved that the Filipinas should be preserved as they had been thus far, by adding strength to the judiciary and military—one of which maintains and the other defends kingdoms—devoting and applying them both to the propagation of the holy gospel among those remote nations, although not only Nueva España, but also old España were to contribute for that purpose from their incomes. And thus did that most prudent monarch declare, in order that it might not be understood that preaching was denied to them, and that he excused himself from sending them ministers for it, because of the lack of gold and silver, even though it should cost him other provinces. He put into effect that Christian axiom, that kings possess some states because they need them, and others because those states have need of them. 6 Well are these two propositions proved in the Filipinas; [ 68 ] for they were ordered to be maintained because their natives and neighbors need [to be under] the seigniory of this monarchy in order not to lose the faith which they have received, and to make it easier for others to receive it. Also, as has been said, and as will be proved, [ In the margin : “In numbers 19, 34, 35, 36, 41, 42, and 43.”] this crown needs those islands now more than then, in order to preserve other posts not less important, since in losing them much more would be lost than what is spent on them. Consequently, both then and afterward, that talk of deserting the Filipinas was and has been regarded as worth little consideration, and was ill received and considered unworthy the greatness, Christian zeal, and obligation of the kings of España; and accordingly it has sunk into eternal silence.

Number 10. The conservation of the islands is more necessary today

If these reasons could so powerfully influence the devout minds of the so Catholic princes in that epoch, much more should they influence that of your Majesty in this, wherein they have not only the same but greater force, because of the many unexpected difficulties that have been encountered through the entrance of the rebels of Olanda into so many parts of the two Indias. Consequently, if the Filipinas be now deserted, not indeed for the sake of authority and reputation, but only for political convenience, the advantage that might result would be very doubtful, and the loss very evident. And although the effort is not at present made directly to have the islands abandoned, expedients are being or have been proposed from which one fears, not indeed the [ 69 ] abandonment of them willingly, but what is worse, the loss of them unwillingly. Before proving that the measures which are beginning to be executed may conduce to that end, the reasons on which their conservation, importance, and necessity are today founded will be discussed; so that, what is advisable being understood with all clearness and certainty—since it is not expedient to add to their forces, as that is now impossible, nor to deprive them of what force they possess—the reader may draw as a conclusion that, if the weakening of the islands follow from the orders issued, and their loss be risked, those orders may either be corrected or suspended, or the most prudent decision in all respects may be adopted.

Number 11. First reason of the importance of the islands: their discovery

The first reason for which the Filipinas should be valued is that of their discovery, which was made by Hernando de Magallanes in the year of 1519, after so many hardships, by the new navigation through the strait until then undiscovered, to which he gave his name. That expedition was not for the discovery of lands or wealth, as were others, but to obey the order and satisfy the desire of the emperor Carlos V, of glorious memory—who, years before, had made known this desire and endeavored to carry it into effect; and at that time he succeeded in doing so, by making the agreement for that heroic voyage, which astonished and encompassed the world. It is to be noted that that discovery was directed toward the islands of Maluco, so that the crown of Castilla, which was then separate from that of Portugal, might enjoy for itself alone the trade in the spices [ 70 ] that grow there. That was obtained, and the vassals of both crowns having fought together for the conservation of those islands, their weapons were reduced to pens, and to various councils and disputes as to the situation and demarcation of the islands. Although it was recognized that they belonged to Castilla, according to the division of the world made by the apostolic see—as it then had no other lands or islands near those of Maluco, from which to succor them, except Nueva España which is so distant—yet, as it was judged difficult to maintain them, in a region so remote, against the invasions of Moros 7 and pagans, and against the obstinacy of the Portuguese (who could never be persuaded that those islands were not theirs); and seeing that the action of abandoning them was unworthy of him who had spent so great a sum in their discovery, and in planting therein the gospel: it was accepted as a more creditable and expedient resolution to dispose of them in pledge 8 to the crown of Portugal. That country held and maintained them alone, until the year 1564, when the Castilians, under the command of Adelantado Miguel Lopez de Legazpi, continuing what Magallanes had commenced, went to settle [ 71 ] the Filipinas Islands, by the proximity and protection of which they recovered the islands of Maluco; and more, when these two crowns had been united, was the mutual aiding of their vassals facilitated. In order to assure their defense, by the agreement of both countries (the circumstances of the transfer having become almost obscured) the Malucos were detached from the crown of Portugal and joined to that of Castilla; and they became subject, as today, to the Filipinas. Consequently, the argument with which the author of the History of the Malucas affirms that if God had permitted the king of that time to exclude the Filipinas from his monarchy, leaving them exposed to the power who should first occupy them, Maluco would have so bettered the condition of its affairs that it would have been impregnable, is not very clear. That statement must be understood with reference to the Moro kings, who would have been more powerful had not the proximity of the Filipinas subjected them; since it is evident that, if when the emperor disposed of the one [group of islands], the others had been settled, he would not have made that bargain, but would have defended them and kept them all. That is verified, because when Felipe II, having succeeded to the crown of Portugal, wrote to the governor of Filipinas to reënforce the Malucas and other places in India whenever he had an opportunity, that was a matter of so great fear to their kings that the king of Terrenate, Sultan Babu, feeling himself oppressed by a greater and nearer force, sought defense in peace, and to secure it sent, as ambassador to these kingdoms, Cachil Nayque. From the above it is inferred that, if the first intent was to discover the [ 72 ] Malucos because of the wealth of their trade—which is now united with that of the Filipinas, as will be seen; [ In the margin : “In number 29.”] and if the maintenance of the one group consisted in that of the others, even when they belonged to different crowns: now that they all belong to Castilla, more necessary is the conservation of the Filipinas, in order that the islands of the Malucos may not decrease from what they were then.

Number 12. Second reason for the importance of the islands: their size and number

The second reason is that of their size and number. Cosmographers recognize five archipelagos in that sea that is included between China, the Javas, and Nueva Guinea 9 —namely, that of Moro or Batochina, that of the Celebes, that of the Papuas, that of Maluco, and that of San Lazaro, which is that of the Filipinas or Luzones. [The last name is given] because the principal island is that of Luzón, whose form is that of a tenterhook, one hundred and thirty leguas along its longest side and seventy along the shortest. The islands renowned after that island are Mindoro, Luban, Borney, Marinduque, the island of Cabras, the island of Tablas, Masbate, Zebu [Zubu— MS. ], Capul, Ybabao, Leyte, Bohol, island of Fuegos, island of Negros, Ymares, Panay, Cayahan, Cuyo, Calamianes, Parauan, Tendaya [Tandaya— MS. ], Camar, Catenduanes, Mindanao, and Burias, besides other smaller islands. They number in all forty, without counting the small and desert islands, which are many. Among those named are some larger than España, some as large, and [ 77 ] some smaller. One of these it Zebu, which is 10 fifty leguas in circumference. Near to it are the islands of Maluco, which are properly five in number, namely, Terrenate, Tirode [ i.e. , Tidore], Motiel, Maquien, and Bachian—although the last named is not one island, but a group formed of many small islands, which are divided by various arms, straits, and channels of the sea; but which are reckoned as one island, as they all belong to one king. That of Tirode belongs to another king, and that of Terrenate with the two remaining ones to another, as well as so many islands adjacent to these that they number in all seventy-two. Those two archipelagos of Maluco and Filipinas occupy more than twenty-six degrees of latitude, running from two or three degrees south of the equator to twenty-four north of it; and extend more than four hundred and fifty leguas, while they are one thousand four hundred in circuit.

Number 13. Grandeur and characteristics of the distinguished and very loyal city of Manila

The center of all that distant region is the famous city of Manila, which on account of its remarkable characteristics deserves equal rank with the greatest and most celebrated cities of the world. It is located on the island of Luzón, in the angle made by its two aides or points, with a capacious, deep, and strong harbor. It was anciently the settlement of the Luzón islanders; it was occupied by the Spaniards, and the government established there, in the year 1572. On account of its location, renown, and prominence, it was given by a royal decree of June 21, 1574, the [ 78 ] honored title of distinguished and ever loyal, 11 together with that of capital and chief city among all the cities in those islands. By a decree of November 19, 1595, it was decreed that it could enjoy all the privileges enjoyed by all the cities that are capitals of kingdoms; and by another decree of March 20, 1596, it was granted a special coat-of-arms, which it uses; 12 while another decree of May 8, of the same year, allows it jurisdiction for five leguas around. However, it has greater jurisdiction in regard to government and superiority than any other of this monarchy, since the district of the royal Audiencia resident therein, according to the declaration by provinces, of the fifth of May, 1583, and the twenty-sixth of May, 1596, consists of the island of Luzón, with all the Filipinas of the archipelago of China (including the five already mentioned [ i.e., the Malucos]), and the mainland of China, discovered or to be discovered hereafter, which is an immense distance. Its inhabited part—although it has suffered great disasters, which will be mentioned later [ In the margin : “In number 93.”] and in spite of which it endures—is today very sightly in its buildings and plan, as they are mostly of stone, and as it is surrounded by a wall in the modern manner, with sufficient fortification. But what most ennobles it is the valor and loyalty of its inhabitants, who, notwithstanding their small numbers in proportion to those of the enemies, sustain the city with so much reputation and renown, that it is one of the best military posts in all the Orient, and one in which the royal standards of your Majesty preserve the valor [ 79 ] and fame of Spaniards—who are feared and respected by all the kings who rule in those islands and regions—and of all the fleets that plough their seas. All the above makes that city, and the region that it governs in the most remote places of the world meritorious; this crown, therefore, should preserve that city for its dignity, and maintain it as the daughter of its power.

Number 14. Third reason of the importance of the islands: their native and acquired character

The third reason is the character, both native and acquired, of the Filipinas Islands. That of Luzón produces a quantity of gold, of which a quantity has always been found and obtained in its rivers. Rich mines have been discovered, now more considerable than ever. By a decree of August 12, 1578, the [reduction of the] royal fifth to the tenth was conceded to the inhabitants. 13 That had some extensions later, from which it is inferred that metals were obtained. There are persistent rumors regarding the Pangasinan hills, which are forty leguas away from Manila, namely, that they are all full of gold-bearing ore. In the year 620, 14 Alférez Don Diego de Espina [España— MS. ] 15 discovered the rich mine of Paraculi in Camarines. It extends for nine leguas, and it is hoped that it will have a considerable output. That has occasioned the command that the privileges of miners in those islands be observed, [ 80 ] by a decree of September 22, 1636. They also abound in copper, which is brought from China with so much facility that the best artillery imaginable is cast in Manila, with which they supply their forts, the city of Macan and other cities of India, and it is taken to Nueva España; for the viceroy, the Marqués de Cerralvo, sent the governor, Don Juan Niño de Tabora, twenty-four thousand pesos, in return for which the latter sent him eighteen large pieces to fortify Acapulco. Of not less importance is the quicksilver of the Filipinas, whither the Chinese carry it in great quantities. It can be shipped—as is permitted and ordered by different royal decrees of August 15, 1609, and May 15, 16 1631—to supply the deficiency of that metal for working the mines of Nueva España.

Number 15. Commerce of the islands, domestic and foreign; and in what the domestic consists

The greatest treasure of those islands, and that in which their wealth consists, is commerce, which demands a more extended treatment. It is divided into domestic and foreign. Of the latter, which is the rich commerce, we shall treat later. [ In the margin: “In the year— sc. : number—20 to 37.”] The domestic, which is slight, consists in the fruits and commodities produced in their lands, which are cultivated by their inhabitants: rice in the husk, and cleaned; cotton, palm wine, salt, wax, palm oil, and fowls; lampotes, tablecloths, Ilocan blankets, and medriñaques. These are the products in which the Indians pay their tributes, and in nothing else— [ 81 ] except some who pay them in taes of gold, of eighteen carats, which is that obtained in those islands, and which is worth eight reals. Nutmeg, as good as that of Borneo, is found in them, as is mentioned in a royal decree of October 9, 623, in which it was ordered to bring some to these kingdoms. 17 There is abundance of swine and cattle, deer, and carabaos or buffaloes. The coast waters are full of fish, the fields of fruits, the gardens of produce and vegetables. The most useful plant is the palm, from which an infinite number of articles are obtained. There are groves of them, as there are vineyards in España, although they require less labor and care. From the rice they make the ordinary bread, which they call morisqueta . What most shows the wealth of the country is the gold that its natives wear; for scarcely is there an Indian of moderate means, who is not adorned with a chain of this rich metal, of which the women use most.

Number 16. Number and diversity of Indians in the islands

What most assures the provinces of the new world is the greater or less number of the natives. In that the Filipinas are eminent, for there are the indigenous Indians, who are tributarios; but these are not many, as not all of them are pacified. Of those who have been pacified some, the larger encomiendas, have been assigned to the royal crown. There are other foreign Indians whose number is great in Manila and its environs, and where there are Spaniards, to whose service the Indians engage themselves for their day’s wages. These include an [ 82 ] infinite number of nations: Chinese, Japanese, Champanes, Malucans, Borneans, Joas [ i.e. , Javanese], Malays, and even Persians and Arabs. But those who are tributary to the royal crown are:

Number 17. Indians tributary to the royal crown in the Indias

In the provinces of Oton and Panay, twelve chief villages, which have 6,035 tributes.

In the island of Zebu, three which have 2,529 tributes.

In that of Camarines, there are 87 tributes of vagrant Indians and Sangleys (who are Chinese Christians).

In Mindoro and Luban, 1,612 tributes.

In the province of Tayavas, in five villages 1,343 tributes.

In that of Bay, in nine villages, 2,232 tributes.

On the coast of Manila, in twenty-eight villages, 4,250 tributes.

The vagrant Indians of Manila and its environs amount to 781 tributes.

The Japanese foreigners, 218 tributes.

The Christian Sangleys of the village of Baybay, outside the walls of Manila, 580 tributes.

In the province of Pampanga, in six villages, 3,650 tributes.

In the province of Pangasinan, in four villages, 899 tributes.

In the province of Ilocos, in five villages, 2,988 tributes.

In the province of Cagayan, in eight villages, 2,192 tributes.

Consequently, the royal crown has 44,763 tributes, [ 83 ] as appears from an official statement made in the year 630. At ten reals per tribute, the amount reaches 53,715 pesos.

Among private persons there are distributed and assigned as encomiendas 48,000 other tributes, which for the 230 citizens of Manila—without reckoning those of the cities of [Santísimo] Nombre de Jesus, [Nueva] Caceres, and [Nueva] Segovia, and the town of Arebalo, who number about 300 more—does not amount to 160 tributes per man. They amount to a like number of pesos of eight reals, for the two additional reals are for the royal crown. And even on the eight reals so many charges are made that there is left but six or a trifle more. This is the wealth, and natural and proper commerce of the Filipinas.

Number 18. Fourth reason for the importance of the islands: their location, as 18 is explained

The fourth reason which persuades one to value and conserve them is the one drawn from their notable location, almost opposite this hemisphere of España. Consequently, some think that Manila is the antipodes of Sevilla. Although according to the latitude of the world that is not exact—as it is in a different latitude from that required to be opposite by a straight line which passes through the center of the earth—according to the longitude the idea is not so far wrong; for although both cities are not on one great circle, their meridians lack only a difference of two or three hours to be diametrically opposite. From this it follows that, as the world has two poles upon which its frame moves and [ 84 ] rotates, so does this monarchy also have two, one of them being España, and the other the Filipinas, which is the most remote part of España’s possessions. And although in respect to the Indias, which led to the discovery of Filipinas, they are called the Western Islands, yet if sought by the voyage by way of India, they are the most eastern, and the finest that have been discovered in that ocean—whose dominion belongs to them even by nature and by their relative position among all the islands of that hemisphere. Therein they are surrounded by an infinite number of rich islands, which were formerly frequented; these promised great increase in the promulgation of the gospel, and no small hope based on the wealth of their commerce, before the rebels of Flandes entered those seas and embarrassed their navigation and trade. The islands are also at equal or proportionate distances with the kingdoms which extend from the straits of Sincapura 19 and of Sunda (or Sabaon), to China and Japon.

Number 19. Importance of the islands because they offer opposition to the Dutch

From this so unusual location results the best proof of the importance of those islands—an importance well understood by the Dutch, who are striving, by means of immense military expenses, fleets, and numerous presidios, which they sustain in their seas and environs, as will be seen [ In the margin : “In number 32.”] to blockade, restrict, infest, and attack the islands, with no other end in view [ 85 ] than their seizure. For they believe (and not without reason) that if they should attain this end, and remove that obstacle (which is the one that restricts the course of their fortunes in those regions), they would be absolute masters of all that extends on from the straits; and that they would cause from there so great anxiety and danger to India, that they would oblige its citizens to spend on its defense a greater sum than is now spent on the conservation of the Filipinas. And now, when the Dutch have been unable to gain a foothold in any of the islands because the arms of your Majesty sustain that country with the same reputation as in Flandes, the enemy maintain themselves by aggressive measures against the Spaniards—usually keeping for that purpose in the seas of those islands forty or fifty armed vessels, which are used to pillage whatever they can find, and to guard the presidios which they have established, and the commerce which they have introduced of the most precious drugs and commodities valued by Europa, whither they take them. However, that is done at a greater cost than they are willing to pay, because of the opposition made against them by the Filipinas. In order for the Dutch to overcome the Filipinas, it has not been sufficient for them to unite and ally themselves with the Moro and pagan kings of other islands and lands of Asia, persuading them that they should take arms against the vassals of España, whose defense lies in the Filipinas alone. And if the banners of your Majesty were driven from the islands, the power and arrogance of Olanda, which would dominate all the wealth of the kingdoms of the Orient, would greatly increase with the freedom and ease of commerce; [ 86 ] while they would gain other and greater riches in Europa, and would so further their own advancement that more would be spent in this part of the world in restraining them than is spent in driving them away in those regions [ i.e. , the Orient]. Consequently, those islands are the bit that restrains the enemy, the obstacle that embarrasses them, the force that checks them, and the only care that causes them anxiety, so that they cannot attain their desires—an evident proof of the importance of those islands, and a fundamental reason for their conservation.

Number 20. The foreign and general commerce of the islands makes them more valuable

The above is not the sole motive of the Dutch for desiring to gain control of the Filipinas, but they recognize that they are, by their location, the most suitable of all the islands in the Orient for carrying on the general commerce of these kingdoms and nations. Already we have discussed the domestic and private commerce that is now conducted, which is scanty and limited; and we have stated that what most enriches the islands, and makes them most valuable, is the foreign trade. For it is rich and of great volume, and furnishes so great profits to the European merchants that, for the sake of these, in spite of the expenses, risks, and dangers of so long a voyage, the Portuguese go to seek it by way of India, the Castilians by Nueva España; the Turks by way of Persia, the Venetians by way of Egipto; and the Dutch, now by the Eastern route, entering India, or by the Western, crossing the immense open stretch of the South Sea, or even by way of the north and Nueva Zembla. [ 87 ]

Number 21. Estimation of the commerce of the Orient, and its condition

That commerce, then, consists, according to what the Filipinas can enjoy of it, in different products and trades because of the difference of the kingdoms or islands with which they do or can communicate. And inasmuch as the explanation of this commerce is the chief part of the matter; and so that one may see in what estimation it has always been held, and what it deserves, and that there is no other medium by which to maintain this crown except by the conservation of India and the Filipinas: we will here describe, as briefly as possible, the times through which that trade has run, and its varying conditions up to the present. Now it all belongs to the two royal crowns of Castilla and Portugal, but it is usurped in part from both by the Dutch, whose only aim is to secure possession of it; and this they will attain on that day when either of the two extremes presented [for which these— MS. ] which are maintained shall fail. 20

Number 22. Oriental commerce; why it is valued

For many centuries has the oriental commerce been known as the foremost, and most valuable and rich in the world, as appears from Divine and human writings. 21 The kingdoms of Europa, Asia [ 88 ] Minor, and part of Africa produce, for their mutual intercourse, certain fruits almost the same, and commodities for merchandise, which differ rather in quality or quantity than in essence. But in Asia and the regions of the Orient, God created some things so precious in the estimation of men, and so peculiar to those provinces, that, as they are only found or manufactured therein, they are desired and sought by the rest of the world. Accordingly, different voyages and routes have been taken, which have been varied by the change of monarchies, on which such accidents depend.

Number 23. Beginnings of the Oriental commerce by way of Persia

The islands of Maluco, to begin with what is most suitable for my purpose, were peopled by Chinese [ sic ] and Jaos, who, with the practice of navigation, commenced to traffic in cloves, a precious and peculiar drug of the forests there, with India, there meeting the traders in pepper, cinnamon, and other articles; thus going from port to port and from nation to nation, all these spices reached the Persian Gulf. There came together various peoples, with still greater diversity of drugs, perfumes, and precious stones, which were brought into Persia; and, being disseminated throughout Asia, these commodities were imparted, although at a great price, to the eastern lands of Africa, and to the south of Europa. That commerce having become known for the precious and wonderful character of its wares, was at once esteemed so highly that it was one of the causes which induced Alexander the Great to direct his conquests toward India, in order to make himself [ 89 ] master of the kingdoms which he imagined (and without error) to be the richest of the world, as from them originated the most precious thing that was known in it.

Number 24. Commerce of the Orient through the Arabian Gulf and other parts

Later, the monarchy of the Persians having become extinct and ruined, a part of that commerce passed, on account of the division of the states and the increase of trade among the peoples, by way of the Red Sea to the Arabian Gulf. Then, entering by way of the two Arabias, the nations of Asia Minor snared the spices and drugs; and through Africa they went down by the river Nilo to Egipto, stopping now in Cayro by land, now in Alexandria by water. As the latter was a frequented port in the Mediterranean, the communication of that commerce was easy, almost without knowing from what beginnings it sprang. By that voyage, the commerce increased so greatly that the king Ptolomeo Auleta 22 collected there as many as one thousand five hundred talents in duties: if these were Attic talents, they amounted to nine and one-half million Castilian escudos. The Romans came into the monarchy, and, having made Egipto a province of the empire, they enjoyed that commerce by way of the Arabian Gulf—by which the spice-trade penetrated at that time (even to the city of Arsinoe, or that of Berenice), and by the Nile, or went overland to Alexandria, which came to be one of the richest cities in the world because [ 90 ] of this trade. Later, as the sultans of Babilonia went on gathering power, until they gained possession of the best part of Asia, the spice again came to have an exit more by way of Persia and Trapisonda [ i.e. , Trebizond] to the Caspian Sea, whence it was taken down to the ports of the Mediterranean, and in one or another place, was received by the merchants of Italia, who imparted it, in the utmost abundance, to Europa. In Asia Minor, the Ottoman house succeeded, and the Turks got control of that commerce, which they divided—directing it, through the cities of Juda and Meca, to the interior of their lands; and, by the gulf and port of Suez, to Alexandria.

Number 25. Commerce of India confined to Portugal

The Turks did not enjoy the commerce for many years, for after the year 1497 23 the Lusitanian banners in India conquered their coasts, and the Portuguese, masters of the navigation of the Orient, blockaded the ports of the two gulfs—the Persian and the Arabic—with their fleets, preventing the entrance of that commerce there; and, conducting it by the Atlantic Ocean, they made the great city of Lisboa universal ruler over all that India produces. Thither [ i.e. , to Lisboa] resorted immediately not only the European nations, but also those from Africa and Asia, by which they despoiled the Turks of the source of their greatest incomes, forcing them to beg from these kingdoms what all had formerly bought from theirs. The wealth of Portugal increased so greatly by the commerce of India that, [ 91 ] in the time of the king Don Manuel, payments of money in copper were more esteemed than those in gold. That trade furnished the profits with which to maintain wars, squadrons, and great presidios in the Orient, with which the Portuguese defended their coasts and seas, not only from the native kings, but also from the fleets that the Turks sent up through the Red Sea in order to recover what they so resented losing. Those fleets always returned either conquered or without the result for which they had sailed, until, having lost hopes of the restoration of that commerce through their lands, they desisted from the attempt—contenting themselves with some ships which, with the danger of encountering the Portuguese ships, they take to certain ports and lade with such spice as the fear of robbers allows them to take.

Number 26. Entrance of the Dutch into India, and their commerce

The commerce of the Orient lasted in Lisboa, without any other nation but the Portuguese sharing it, for almost one hundred years, which appears to have been the fatal century of their career. But as always they set upon that trade the value which has been made known in the wars of Flandes and the prohibition of trading with Olanda, their rebels determined to try to secure it; and in the year 1595 their first armed fleet entered India, to carry a portion of the spice to their islands, imparting it through them to all the northern nations, and even to those of the Levant by way of the strait of Gibraltar. Returning merchandise of great richness, they introduced a new trade, so remunerative as may be [ 92 ] understood from the peril that they undergo, and from the expenses that they incur, in order to maintain it. Whatever they have acquired by that voyage (and it is not little) they have pillaged from this crown. The Dutch spreading through the Orient, recognizing the wealth of those regions, established their business, took part in barter there, erected factories, built presidios, fortified ports, and (what can well cause more anxiety) collected sea forces, by which they have succeeded even in driving out the Spaniards from their houses, in disquieting them, and, at times, in blockading them. They began to go out to the ocean with this trade, becoming the general pirates of the two Indias—where there are those who affirm that they have pillaged more than one hundred and thirty millions in less than forty years. They established the chief seat of this commerce in Bantan, 24 the principal port of Java Major, whither people go from all the islands—Banda, Maluco, Gilolo, Sumatra, Amboino—and from the mainland of Coroman [Goroman— MS. ], Siam, Pegu, Canboxa [Ganboxa— MS. ], Patan, Champa, and China. Turks, Arabs, Persians, Gusarates, Malays, Jaos, Egyptians, and Japanese go there. Consequently, with the presence of so many nations and so various sects (all of which are evil) Bantan may better be called “the Oriental Ginebra [ i.e. , Geneva].” There are two markets or fairs held there daily, at which more than thirty thousand persons come together to buy and sell. [ 93 ]

Number 27. Commerce of the Orient, which the Dutch carry on from Ba[n]tan

The commerce acquired by the Dutch from that place is notable and large; for it consists of all the drugs, perfumes, and products found in those seas. The money carried by the Dutch is Castilian silver, as that is the kind that is most valued throughout the Orient. The money that circulates in the country is that of the leaden caxies [ i.e. , cash], of which one thousand five hundred are given for one real of silver. Two hundred caxies make one satac , and five sataques one sapacou . Rice is carried from the islands of Macaser, Sanbaya, and others. Rice forms the chief food bought by the Dutch, not only for the supply of their forts and fleets, but as a means of gain in that same port. Cocoanuts are taken [thither] from Balamban; this is another product that is consumed widely, and is of great use. They go to the confines of the island for salt, which is very profitable in Ba[n]tan [Bamtan— MS. ]; and which is of greater profit, taking it, as they do, to Sumatra [Samatra— MS. ], where they exchange it for wax from Pegú, white pepper, and various articles made from tortoise-shell. Twelve leguas away lies Jacatra, whence, and from Cranaon, Timor, and Dolimban, they get honey; and from Japara, sugar; from Querimara [Quarimara— MS. ], east of Bornio, iron; 25 from Pera and Gustean, tin and lead; from China come linens, silks, and porcelains. Their most abundant article of trade is pepper, for huge quantities of it are gathered in Java and Sumatra. And inasmuch [ 94 ] as even those islands do not suffice to fill all their ships, they buy the pepper in other parts where they go: as on the coast of Malabar, as far as the cape of Comori—a land that produces whatever is taken to Portugal, and that which the Moors carry to the Red Sea; at Balagate, that which goes to Persia and Arabia; at Malaca, that which goes to Pegu, Sian, and China. The large variety comes from Bengala and Java, while the Canarin, which is the least valuable, is gathered from Goa and Malabar. The best is bought at Bantan, for forty thousand caxies (which amount to 27 reals in silver), per sack of 45 cates, 26 or 56 Castilian libras, and it sells at one-half real [per libra?]. The ships which are unable to lade there—either because many ships go there, or because they are looking for wares that are not carried to their markets, or because they try to get them cheaper at their home market—go to other factories and places of trade. They go even to Meca in the Arabian Gulf, and cast anchor in Juda, twelve leguas away. For that voyage they carry drugs, food, and Chinese merchandise, which they sell for silver money—of which there is a quantity stamped with the arms of your Majesty in this kingdom, while the rest of the money consists of Turkish ducados. With that they go to other ports, and buy very precious commodities, as money is more precious [in those ports] than anything else. They get the aromatic mace from the island of Banda, which belongs to the Filipinas, and where Jacobo Cornelio left the first factors in the year 600; and in that of 608, Pedro [ 95 ] Guillelmo Verrufio erected a fortress, although at the cost of his life. There, then, they barter the mace and the nutmeg, which is grown in no other part of the world, and obtain it there in so great quantity that they can lade annually one thousand toneladas of it. They take it dry, in order to carry it to Europa; and to Meca, Ormuz, and all the Orient in a conserve; for it is highly esteemed, as it is a very delicate relish. With mace, pepper, nutmeg, and other drugs they go to Pegu and Sian, where they trade rubies and wax in their factories. They barter those substances in Sumatra for pepper, which they also carry to Ormuz. There and at certain ports of Cambaya, they buy indigo (a royal product, and of which there is a monopoly in India), manna (a medicinal drug of Arabia and Persia), and rhubarb. What they are most eager to buy at Ormuz are the pearls that are fished from the Persian Gulf as far as Besorà. They also get them between Ceylan and Comori, between Borneo and Anion, and in Cochinchina. At Ormuz they trade most for precious stones 27 —fine bezoars, turquoises, chrysolites, amethysts, jacinths, garnets, topazes from Cahanor, Calecut, and Cambaya, copper wire, and not very good agates. They have a factory in Patan, since—although they do not desire the trade of those people, as it consists only of silver money—a great quantity of Chinese merchandise is found there; and, as the Dutch cannot enter that country, they barter there [ i.e. , at Patan] for silk in the skein and woven, porcelain ware, and other things, and for calambuco wood, which is found in [ 96 ] Sian, Malaca, Sumatra, and Cambaya. They get ginger from Malabar, not to take to Olanda—where they have too much with what they plunder in the Windward [ Barlovento ] Islands—but to take to Ormuz, which with that from Malaca, Dabul, and Bacain is traded in Persia [Percia— MS. ] and Arabia. They trade cardamomum in Malabar, Calecut, and Cananor, [that plant] being used throughout the Orient to sweeten the breath. From the coasts of Sofala, Melinde, and Mozambique, they get gold, ivory, amber, and ebony, which they also get from Champá, whose mountains apparently raise no other [varieties of] woods. From Bengala they get civet, and mother-of-pearl. The best benzoin is that of Ceylan and Malaca; but as the Dutch have but little trade in those parts, they get along with that of the Javas, which is not so good, and with some of fine quality that they obtain in fairs and ports. The same is true of cinnamon which they are unable to obtain at Ceylan, except through third persons; accordingly, they secure but little, and content themselves with the wild cinnamon of Malabar, although it is very poor. Sandalwood was formerly the most profitable product in India, and was traded by the Portuguese. It was obtained in the island of Timor, where they had a fortress; but, as it is near Bantan, the Dutch have gained possession of it and its trade. This is the white sandalwood, for the red comes from Coromandel and Pegu. They buy snakewood [ palo serpentino ], 28 brought from Ceylan [Seilan— MS. ], in the fairs of Sumatra; eaglewood [ 97 ] from Coromandel; camphor in Sunda and Chincheo, but better in Borneo; myrobalans 29 in Cambaya, Balagate, and Malabar; incense from Arabia; myrrh from Abasia [Abaçia— MS. ]; aloes-wood from Socotora; all of which they obtain at Ormuz. They trade but few diamonds, for the fine ones come from Bisnaga and Decan, and are taken to the fair of Lispor, between Goa and Cambaya; and since the Dutch do not go thither, they have no share in them, but they get some at the fair in Sumatra.

Number 28. Commerce in cloves, and how the Dutch entered it, and took possession of Maluco

The most noble product, and that which is must earnestly desired, as it is of the greatest profit and gain, is the clove. Cloves are produced in the celebrated islands of Maluco and that of Amboyno; and a little in the islands of Ires, Meytarana, Pulo, Cavali, Gilolo, Sabugo, Veranula, 30 and other islands adjacent to the Malucas—which are the chief producers of cloves, and produce the best quality. As now, it was formerly the most valued product of the Orient; and now it forms one of the royal commodities of its commerce. In the islands where it is grown, one bare costs 460 Castilian reals. [The bare] has 640 libras, so that it does not amount to 25 31 maravedis [per libra]; while it is sold for at least one ducado in Europa, so that each libra gains fourteen, which is an excessive profit. From the [ 98 ] time when those islands were sold to the crown of Portugal, for the above-mentioned reason, for the sum of three hundred thousand ducados, that crown possessed them and the clove trade until the year 1598, when Jacobo Cornelio Nec went to India with eight ships. Dispersing those ships through its kingdoms, two of them went to Terrenate, where they left six factors, the first that Olanda had in that archipelago [ In the margin : “In the year 11”]. In the year 601, of twelve other ships which entered the Orient, seven went to Amboyno, and by an arduous attempt gained the fort held there by the Portuguese; and although it was immediately recovered by Andres de Mendoca Furtado, commander of the fleet of India, and he, victorious, overran the islands of Maluco, subduing those of Tidore and Maguso [Magusié— MS. ], he was unable to enter that of Terrenate [Teranete— MS. ], where the Dutch had taken refuge and made its king rebel—the reënforcement of two hundred soldiers sent (in one ship and four fragatas, in charge of Captain Juan Galinato) by Don Pedro de Acuña, governor of Filipinas, being of no use. Thereupon everything was in a ruinous condition. In the year 605 [ sic ] Estevan Drage, who went to India with twelve galleons, attacked Amboyno and recaptured the fortress; and, going to Tidore and the rest of the Malucas, gained possession of them all.

Number 29. Recovery of Maluco by the governor of Filipinas, and its annexation thereto

That loss was felt keenly in España. The difficulty of relief from India having been recognized—as that country was so distant, and its forces were [ 99 ] so broken; while those of the Filipinas, because they were greater and nearer, were more suitable—letters were sent to the governor of those islands, with orders that, aided by the Portuguese, they should endeavor to recover Maluco and restore it to this crown. Don Pedro de Acuña, having determined to make that expedition, and being already in possession of the aid that India could furnish, assembled a fine fleet in Iloylo, consisting of five large ships, six galleys, three Portuguese galliots, another open galliot, four junks, three champans, two English lanchas, and fourteen fragatas; and with them thirty-eight small boats, one thousand four hundred and twenty-three Spaniards, one thousand six hundred natives, seventy-five pieces of artillery, and everything else needed. With that he gained Terrenate, reduced Tidore, and subdued Siao, Sula, and Tacome, Gilolo, Sabugo, Gamocanora; and left those islands obedient. He moved the fortress of Terrenate to a better site, and garrisoned it with six hundred Spaniards, as it was the capital of all the other islands. Thus he placed on the enemy a curb, which some disasters have [since] removed. Inasmuch as the Malucos had been recovered by the Filipinas, and obtain from the latter the most certain succor, it was deemed inexpedient to return them to the crown of Portugal, or to its viceroy of India, which is so far distant from them, by the consent of both crowns; and a royal decree of October 29, 607, ordered that all the Malucas should remain, as at present, in charge of the governor of Filipinas. [ 100 ]

Number 30. The clove trade, which is carried on by way of India

In regard to the clove trade, it was proposed that it be introduced by way of Nueva España, carrying to barter for it the products of the island of Panay and the merchandise of China at the account of the royal treasury; and that with the 100,000 ducados that would be invested in that, one might trade for all the cloves that were gathered in those islands. In the five chief islands alone that amounts to 4,400 bares of cloves of prime quality (which is the selected spice). At 640 libras, that amounts to 2,816,000 libras, in which two millions are concerned annually, for the maintenance of those islands, and the gaining of large increases for the royal treasury. In regard to it a decree of instruction had been given February 16, 602; but it was not then considered advisable to disturb that trade of India, either because of the injury that the Portuguese would receive, or in order not to cause a greater withdrawal of silver from Nueva España. However, that argument had little force; for, in exchange for the 100,000 ducados, two millions would be returned. Accordingly, although Maluco remained under the crown of Castilla, it was ordered that the clove trade be carried on by way of India, by a decree of November 17, 607; and the Portuguese go from India to buy the cloves at Manila, and take them to Malaca. Only what is needed there it shipped to Nueva España, and the rest is conveyed to various parts and kingdoms of the Orient which are convenient to Manila and the Malucas. The Dutch have again attempted to usurp that trade, as will be told later. [ 101 ]

Number 31. The Dutch return to Maluco; and the deeds of the governor of Filipinas

Don Juan de Silva, who succeeded Don Pedro de Acuña in the government, tried to preserve during his term what his predecessor had gained. Immediately upon his arrival, learning that four ships from Olanda were near Manila, he prepared five ships and three galleys, and went to give them battle with one thousand Spaniards. Of the three ships that he found, one was destroyed by fire, and the other two surrendered; and their booty amounted to more than two hundred thousand ducados. That victory was not sufficient to make the enemy lose their liking for that commerce, and they returned in greater force to seek it. Don Juan de Silva made an expedition against them, and went to find them in the strait of Maluco; but that expedition did not have the desired success. Having written to the viceroy of India, by a secret letter of arrangements, dated December 32 13, 615, asking the latter to join with him to endeavor to drive the Dutch from those seas once for all, he resolved to put forth his utmost efforts in order to accomplish it; and had he had the good fortune to carry out that plan as he desired, it would have been an exploit worthy of his great courage and valor. He built seven galleons of one thousand or one thousand five hundred toneladas, in addition to three others that he had; and cast one hundred and fifty large pieces of artillery—although, for lack of master-workmen, they did not turn out well. He sent to request ten other galleons and six galleys from the viceroy of India, and sent sixteen thousand pesos for the purchase of certain [ 102 ] articles. That was taken by Don Christoval de Azqueta and forty Spaniards, who were never seen again, the disaster of that expedition thus commencing. The governor repeated the embassy by means of Father Juan de Ribera of the Society of Jesus. The latter obtained a reënforcement of four galleons and four galliots, and a few poorly-disciplined men; and (what was worse) they left so far ahead of time, that they had to await Don Juan de Silva at Malaca before the season to arrive, and at the worst time possible; for scarcely had they entered port when the king of Achen attacked them with four hundred boats. He fought with the four galleons of Goa, and burned one of them, whereupon he desisted from the blockade. As soon as the Jaos had gone, six galleons from Olanda entered, and after fighting with the three galleons of Portugal, burned them. Learning that Don Juan de Silva was coming, the Dutch retired to their forts, in fear of the force that he was carrying. Then the governor left Manila with ten galleons, the best that have ever been on that sea, and four galleys, in the year 616. He learned of the loss of the Portuguese, and although he ought to have attacked Bantan, where the enemy were fearing him, he entered Malaca without doing anything; and, while hesitating there as to what he could accomplish, he was seized by the illness from which he died. His fleet, being left without a leader, returned to Manila, destroyed and conquered by itself. The disaster of that voyage was recognized not only in what has been said, but also in that if he had gone to Maluco, as he had been advised, he would have accomplished an important feat of arms. If he had been a fortnight later in leaving Manila, [ 103 ] he would have prevented the depredations committed by the Dutchman Jorje Spilberg. The latter—having entered the South Sea, and fought the battle of Cañete, near Lima, which was of but little consolation for the Peruvians—arrived at the bar of that city [ i.e. , Manila], and then went to Maluco, thinking that the governor had gone to their islands. Hearing that he was in Malaca, he took ten galleons from them, and went to look for him. Not finding him, and hearing of his death, he caused the rebellion of all those who were peaceful. The Mindanaos went out with sixty caracoas, and attacked the province of Camarines, where they caused considerable depredation. Having disagreed, the Mindanaos divided into two companies—one going toward Manila to join the Dutch, the other to the island of Panay. There Captain Lazaro de Torres destroyed them with only seven caracoas; and, capturing four of the Mindanao caracoas, made the rest of them take to the open sea, until they were all lost. The Dutch, with their ten galleons, sighted the same island of Panay, and Captain Don Diego de Quiñones with seventy soldiers fought with seven companies of them that landed, and made them return to their boats with great loss, and but little reputation, so much can a good captain do. The enemy went in sight of Manila again, where the fleet taken out by Don Juan de Silva had already entered; however, it was in so bad condition that it did not have sufficient strength to attack the Dutch. Finally six galleons could be prepared, to oppose the other six which were infesting the coasts. The battle was fought, and the flagship of Olanda was sunk, and two galleons burned, while the almiranta, [ 104 ] with two others, took to flight. But that victory had its diminution, for the galleon “San Marcos,” having become separated [from the others], met two Dutch galleons which had not taken part in the battle. In order to avoid a new battle with them, and the captain losing courage, the “San Marcos” was run ashore and burned. Thus the Spanish side was victorious, but weakened. The enemy, although conquered and having lost three galleons, went to Maluco with the seven remaining ones, and were able to keep what they had acquired. It is recognized that Maluco is of the importance that has been stated, because they have maintained it at the cost of so many losses, fleets, and men.

Number 32. Dutch forts and presidios in the Filipinas district

The above is confirmed by mentioning the forts which they have established with presidios, and which they have now in the district of the Filipinas Islands, both for the defense by their arms and for the continuance of the clove trade. 33

In Terrenate they possess the fort of Malayo, which they call Granoya. There lives the Dutch governor, who has the rest of Maluco in his charge. It is a regular city in which there was usually a garrison of 850 soldiers, but which now has only 150 [140— MS. ]. At a quarter of a legua is Toloco, a strong site, in which there are, for garrison, one alférez with twenty soldiers. Tacubo is also near Malayo, whence they garrison it as is necessary. [ 105 ] Malaca is one-half legua to the north of Malayo. Tacome, which they call Vuillemistat, 34 three leguas from Toloco, is a principal fort, and has a garrison of one company.

They had no fort in Tidore formerly, from the time of the expedition of Don Pedro de Acuña until the year 612, when they gained a small rampart where the governor of Maluco, Don Geronimo de Silva, kept an alférez with 14 [15— MS. ] soldiers. There the Dutch built the fort called Marieco the great, where there is a captain with sixty soldiers. However, they do not get any profit from that island.

Motri [Morri— MS. ], which lies between Tidore and Maquien, became depopulated through the fear of the natives for the men of Tidore. Persuaded by the Terrenatans, the Dutch founded a fort there in its northern part, taking a colony from Gilolo; the natives were thereupon assured of safety, and settled there. It has a captain with fifty soldiers.

There are three forts in Maquin or Muchian, one legua from Motir [Morir— MS. ]: Nofagia, at the north, with one alférez and forty married soldiers; Tafazen, at the west, with one lieutenant of the governor, and one hundred married 35 soldiers; at Tabelole, in the east, a small fort of but slight importance, with one sergeant and twelve soldiers.

In Bachian is the fort of Bernevelt, with one captain and sixty soldiers.

In Gilolo or Batochina, 36 three leguas from the fort maintained there by the Spaniards, the Dutch [ 106 ] maintain that of Tabori, with one alférez and fifty soldiers; and three leguas farther on is another fort, with one lieutenant and twelve soldiers.

In Amborino [ i.e. , Amboina], 37 eighty leguas from Terrenate, is a large fort, with a watered moat capable of floating a galley without its oars. Its garrison consists of a commandant with one hundred soldiers.

In Siao, thirty leguas from Terrenate, the Dutch own Sagu Maruco [Marico— MS. ]. A Spanish alférez was there with five soldiers in the year 614 for a certain purpose. The Dutch came, and after driving out the Spaniards, fortified themselves in that place, as they always crave what España possesses. A sergeant was stationed there with sixteen soldiers, although it is not a post of importance.

They have two forts in Banda: Moçovia and Belgio, each one with one hundred and twenty soldiers. Although the natives are hostile, those presidios are kept up with the hope of reducing them, and because of the nutmeg which is gotten there, which is but little.

In Java Major there are three factories, namely, in Baatan, Jacava, and Japara. Bantan is the chief stronghold that the Dutch have in India. The governor or prefect lives there, in whose charge are all the forts of the Orient. There is kept account of all that is laden and of the ships, so that it is the accountancy and register of their trade. There are two galleys and more than thirty barks, armed and garrisoned, [ 107 ] in which they cross to Jacatra, which is the arsenal and dockyard where their ships are repaired, as it is the first and last station that they make on leaving and on entering by the straits of Sincapura and Sonda. It is one day’s journey from Bantan. However, the English, in confederacy with the Jaos, a few years ago seized certain of those ports. In the year 629, the king of Matalan [ i.e. , Mataram] besieged Jacatra, where he remained for five months. They destroyed the city, and killed three hundred of the Dutch, and the latter only retained their fortress.

In Borneo, which is the most westerly of the Filipinas, and the largest, being five hundred leguas in circumference, the Dutch do not possess fort or factory, but they are allowed to trade there.

In the island of Hermosa, between the Filipinas and China, they have established a presidio and seized a port. España has another fort there, each on its own point, as the island is long. That has caused anxiety, as the island lies on the way to China. Accordingly, the governor [of Filipinas] has been ordered to endeavor to drive the Dutch away.

In the island of Sumatra, at the city of Jambo in the strait of Sincapura, they have a factory for the pepper trade, which is of great importance to them.

In the kingdom of Patan, they have another factory, which ranks with that of Jambo; another in that of Sian; another in Camboxa; and another in Cochinchina. They have no entrance into China; on the contrary, they are the declared and common enemy [of that country] because of the great piracies [ 108 ] that they have committed against those natives. They have a factory in Japon, from which they get food and ammunition, which is worth not a little to them.

They have other ports, which they have abandoned as it was convenient for them to do so—as that of Gemalanor, in Gilolo; the forts of Bouson, Solor, and Timor; the factories of Gresco in Java, and that of Asqueo, because of a war which they had with their king. They abandoned another in Macasar, in the island of the Celebes, where they got a quantity of sago [ segu ], which is the bread of the country, and a quantity of rice. Accordingly, they tried to return there, but were unable.

In all those forts and presidios Jorje Spilberg found, in the year 616, three thousand regular soldiers; one hundred and ninety-three bronze pieces, and three hundred and ten of cast iron, with three hundred swivel-guns; and thirty war galleons, besides those galleons in which they made the journey to and from Olanda.

Number 33. Arguments based on the forts of the Dutch

From this account which has been given of the Dutch forts in the seas of the Filipinas, are deduced certain arguments that belong to the purpose of this memorial and the matters of which it treats.

Number 34. First argument: for the condition and danger of the commerce

The first argument is the quality and importance of the commerce of the Orient, its condition, and the risk to which it is exposed. [ 109 ]

Number 35. Second argument: participation in the clove trade of Maluco

The second is the special point of the trade in the cloves which are obtained in Maluco, in which it is to be noted that the Dutch share by means of the forts that they maintain. Accordingly, they obtain 600 bares [misprinted baus ] from the cloves of Terrenate annually, or 384,000 libras; from Motir, 700 bares, or 468,000 libras; from Maquien, 1,400 bares, or 896,000 libras; from Bachian, 400 bares, or 256,000 libras; from Amboyno, 1,800 bares, or 1,152,000 libras. The total of the cloves obtained from Maluco, exclusive of Amboyno, is 1,098,000 libras. Since the total yield from all those islands is, as has been stated, 2,816,000 libras, there is left for the Spaniards, Portuguese, Castilians, and other nations who get some of it, 1,718,000 libras. Even that is because of the protection and proximity of the Filipinas; and if that protection were lacking, not only would all the clove trade belong to the Dutch, but, not needing the presidios that they maintain for it, they would enjoy all the trade at a much less cost and with greater gains, as can be understood from what is here stated.

Number 36. Third argument: the profits of that commerce, and the effect [on it] of the Filipinas

The third, the great profits of that commerce; since for its maintenance alone the enemy employ and support so many fleets and presidios. And although the states of Olanda are so poor and of so little importance, when compared with the grandeur of the monarchy of España, they obtain [from that [ 110 ] trade] with only good management and the freedom with which they conduct it, so large profits that with that gain they maintain so great a force on the sea; and their profits would be much greater, if the Dutch were not opposed by the force which your Majesty has in the Filipinas Islands. For it is affirmed that when two ships and one patache were coming laden from India to their country, and the ships were wrecked, and the patache saved, from that vessel alone they made up the loss, and had a considerable gain. That shows how advisable it is that the enemy do not increase and that the [colony in the] islands be permanent, and be protected, and its citizens succored.

Number 37. [Fourth argument:] Commerce of China sustains the Filipinas, and how it is carried on.

Returning to the commerce that the islands have and what they can have—namely, all the above and that of Japon and other kingdoms of those regions—the first and chief thing in which consists the preservation of the Filipinas is the Chinese trade. Although the commerce is shared by Portugal, it is with great peril and danger, as the Portuguese have to go through the strait of Sincapura, which is always occupied by the Dutch. It has this difference, that the Portuguese go to China itself to get the goods, where they have a settlement in the city of Macan; while the Castilians enjoy the trade in Manila, to whose port many ships come annually from China, laden with all the products, natural and artificial, that that great kingdom yields. Governor Don Francisco Tello granted permission to Don [ 111 ] Juan Zamudio, in the year 1599, to go to China, and to establish the trade as the Portuguese have it. He went with a ship to the city of Canton, and although he experienced not a little opposition from them, he opened a port for the inhabitants of Filipinas. That of El Pinal was assigned them, and a house in Canton, together with chapas and passports, so that they might go to form a settlement there whenever they liked. Don Luis Perez Das Mariñas being wrecked afterward on the coast of China, the Chinese welcomed him, and the Spaniards entered that port. Although, as that was in violation of the royal decree of 593, a censure was sent to the Audiencia, yet the governor was charged by a secret letter of October 15, 603, to call a council to consider the advisability of continuing that enterprise. From that conference it appears that the royal decree of July 25, 609, resulted, by which that trade of China and Japon was permitted to the citizens of Manila. However, it is a fact that they do not avail themselves of it directly, but that they are content to await the Chinese who bring their merchandise to them, as the citizens have not the forces or the capital to go to their country for it. The Chinese are allowed to sell the goods at wholesale, in accordance with the order that was introduced by Governor Gomez Perez Das Mariñas. The goods are appraised in a lump by persons deputed for that purpose; and then the goods are divided and distributed among the inhabitants, so that all may have a share in the commerce. That method was approved by a letter of instructions of January 17, 593, and is the method called “pancada;” to the governor was left only permission to send one ship annually to Macan, in [ 112 ] order to buy military supplies and no other thing, by a decree of February 4, 608. For some little time past the Portuguese of that city have begun going to Manila, or sending thither merchandise from China. That is a great damage to the citizens, for the Portuguese sell the goods dearer than do the Chinese. Formerly those Chinese goods were taken freely to Nueva España, Guatimala, and Panamá, and passed on to Perú; but on account of their cheapness and the extent to which they were consumed, and the profit made on their cost, they were a menace to those kingdoms, and the damage caused by them to the commerce of Sevilla was regretted. Accordingly, the exportation of those goods to Guatimala and Panamá was forbidden, and afterward their transportation to Perú; and the permission was left only for Nueva España, as will be related, as that is the principal point under discussion. [ In the margin : “From number 62 on.”]

Number 38. Fifth argument for the importance of the islands: their superiority in those seas

Concluding with the arguments that make the Filipinas important, the fifth is the superiority that they have in the Orient over not a few crowned kings. Your Majesty does not provide any post in all the kingdoms of this monarchy, that are equal in that region to that of governor of the islands, unless it be the viceroyalty of India. As such governor, the king of Borneo, confessing himself, although a Mahometan, a vassal of the crown of Castilla, rendered homage to Doctor Francisco de Sande. During the term of Gomez Perez Das Mariñas, the king of another island, Siao, went to Manila and rendered [ 113 ] homage. Don Pedro de Acuña took their king prisoner in the expedition to Terrenate, and kept him in that city [ i.e. , Manila]. When Don Juan Niño de Tavora went [as governor], he bore an order, by a decree of November 10, 626, to give that king his freedom if he considered it advisable; but he was not freed, and died a prisoner in 629, as did also his son shortly before. He was succeeded by a cachil who had been a prisoner with the king, and who remained hostile. The king of Tidore is an ally, and recognizes the governor as his superior; and the arms of España as his protection. A treaty of peace was made in the year 618 with the king of Macasar, as that was important for the maintenance of Terrenate. The watchfulness maintained with the king of Mindanao is constant; and although he has been subdued several times—especially in the year 597, through the valor of Don Juan Ronquillo, who had many encounters in that island with the natives—he has once more revolted. Although he has been severely punished, never is there assurance of him except when he knows that there is a force in the Filipinas. Consequently, such a force is necessary, in order that he may not dare to commit greater depredations, for the Mindanaos who shall be taken in war are declared to be by that very fact slaves, by a royal decree of May 29, 620. By a decree of July 4, 1609, it is ordered that peace be maintained with the emperor of Japon; and harmonious relations were long maintained with him, by sending him a present annually and receiving his, and by admitting ships and commerce between the two countries. [This was done] until the year 634, when the Dutch so angered him against the Catholics that they roused [ 114 ] up a new persecution against them in his kingdoms, and put an end to his friendship with Filipinas. That is no small injury, not only on account of the cessation of intercourse with them, but because that barbarian is powerful, and the Japanese are general pirates. Peace with Great China and its king has been better managed, and is maintained by means of commerce and some presents which are sent. Doctor Sande wrote that he would dare to conquer that kingdom, which was a very confident promise; he was answered on April 9, 586, that he was not to consider such a thing, but to preserve friendship with the Chinese. Accordingly, that has been done, and so many Chinese are in Manila that they have two villages: one that of Vindonoc [ i.e. , Binondo], which is near the city, and composed of married Christians; and the other the Parián—which is, as it were, an enclosed suburb—in which live those who bring merchandise, and all these are called Sangleys. The kingdoms of Champa, Camboxa, and Sian, which occupy the mainland, are frontiers of war. The conquest of Champa is regarded as lawful, by agreement of the theologians, as its natives are notorious pirates on those who pass their coasts, and they have many Christian captives; and because they consent to and defend the law of Mahomet, and are nearly all Moors, as is mentioned in a royal decree of October 13, 600. The king of Camboxa is not so pernicious, and allows woods, which abound in his kingdom, to be taken [thence] for shipbuilding in Filipinas, besides other products and valuable drugs. There is a history of the ambassadors whom the king, Apran Langara, sent to Manila, whence went to him the reënforcement taken to him by Captain Gallinato, [ 115 ] and the success that he had; consequently, that kingdom has always been well affected toward the Spaniards. The king of Sian is like him of Champa; he holds more than fourteen thousand Christians captive, from various nations. In the year 629, that king captured two ships from Manila in his ports, and detained them. Therefore the governor, Don Juan Niño, sent two galleons, which inflicted a sufficient punishment along their coast; and then an embassy to demand satisfaction for the two ships, saying that, if it were not given, they would continue to collect it. The king was dead, and his son agreed to do what was demanded from him. Thereby your Majesty’s arms kept the reputation that they have always preserved in those seas among so many Moorish and pagan kings, and in presence of the forces of Olanda and Inglaterra.

Number 39. Sixth argument for the importance of the islands: the effects of their preservation

The sixth and last argument which shows and proves the importance of the islands, and how advisable is their conservation and maintenance, consists in the excellent and considerable effects that result from it, which, although they are numerous, can be reduced to five chief points.

Number 40. First effect of the conservation of the islands: the promulgation of the faith

The first effect is the conservation of the Catholic faith, and the continuance of its promulgation, which has entered the rich and extensive regions of the Orient through the agency of both crowns of [ 116 ] Castilla and Portugal. In that are seen so 38 miraculous advances that it would be for the kings of España to disregard the obligation that they so much value, in [not] giving them the protection possible—so that while the faith does not advance, it may not decrease, nor lose what has been planted in the vineyard of God our Lord. This will be attained (humanly speaking), as long as the two extremes on which this mean depends do not fail, those two extremes being the states maintained by the two crowns in the Orient: that of Portugal, in India; and that of Castilla, in Filipinas. As India is the gateway for all the kingdoms that belong to this part of the straits, so also are the islands for these kingdoms about them, such as Great China, Japon, the Javas, Nueva Guinea, and the islands of Salomon—for whose discovery three voyages had been made from Lima at great cost, but with little result, although they could be reached with greater ease by sailing from Manila.

Number 41. Second effect of the conservation of the islands: the security of India

The second effect will be to assure the safety of those states, of which as they are found today, one may understand that, if one be lost, the other will become endangered. India has declined in its commerce and wealth, and consequently, in its power, because of the relationship that there is between these two things; for when a kingdom loses its wealth, it loses its strength. Both have been usurped by the Dutch, as is proved; for they, commencing with the commerce, have appropriated it to themselves, [ 117 ] as well as the strength that is annexed to commerce. Therefore India needs to avail itself of the Filipinas, and that not only for such special aid as was requested by the viceroy, Conde de Linares, in the year 631 (who was governing India with the care, prudence, and success that is known by the excellent results that he obtained, and by the great talent and valor of his person, experienced in that and in other charges), to whom Governor Don Juan Niño sent two galleons; but also so that the enemy, being diverted, may have less power. Thus was he [ i.e. , the governor of Filipinas] charged to do by decrees of April 4, 1581, and December 5, 1584. The same must also be understood of the islands, which although they do not now have less strength than for the last forty years, have more enemies and more to which to attend. If India should fail them, they would be maintained with greater difficulty. The Portuguese aided in the expedition made by Don Pedro de Acuña, and also in that of Don Juan de Silva, but not with equal success in both; and it is ordered that the two forces unite for the recovery of the island of Hermosa. The city of Macan, in China, is so far from India that it would be in danger should the islands fail it. The governor of the islands had an order to aid that city, by a decree of December twenty, six hundred and twenty-three. He did so by sending it six pieces of artillery, with ammunition and other supplies, which were of so great importance that the Portuguese averted their danger. That action is recommended by the good treatment and welcome that the men of Filipinas receive in India—especially in Cochin, where they go to buy ships and other things—as was written, in [ 118 ] acknowledgment therefor, to Don Felipe Mascareñas [Mascarenhas— MS. ] in the year 630.

Number 42. Third effect of the conservation of the islands: to deprive Olanda of commerce

The third effect is to deprive the Dutch of a great part of their commerce, not only by España maintaining it in the Filipinas, which otherwise would all belong to the Dutch, as has been said, [ In the margin : “In number 36.”] but also by forcing them to keep the presidios and fleets that have been mentioned, [ In the margin : “In number 32.”] in order to preserve what they have usurped; and thus, the expenses being heavier, consequently the profits would be less. It was already proposed, with arguments that gained no little approbation (thus they secured its execution), how advisable it was for a royal fleet to cruise among the Windward Islands. Among the effects that were assured was one (and the most important), that of compelling the enemy who should go to infest those islands and commit piracies along their coasts, to erect a fort, and form settlements in some [of the islands], as they have done; and to do it with presidios and garrisons, because of their fear of being attacked and punished—and not as they usually do, when with two little ships carrying each six pieces and twenty men, they pillage what they wish; and with a hundred [common] laborers, and one captain to command them, without arms or defense, they settle on this or that island, confident that there is no one on the sea who can oppose them, or attack them ashore. For if they were in fear, and were obliged to carry an armed force, they would, as that requires cost and preparation, [ 119 ] be unable to make so many settlements; nor would their profits be so great that they would not some time or other be ruined and take warning from experience. The Filipinas are doing this in the Orient, and are resisting the enemy in such manner that they not only compel them to maintain forts in their seas, but also to suffer so great losses in them that at times the losses, as is known, exceed the profits. On that account, it is understood that the East [India] Company of Olanda is less rich than formerly; and that, leaving it, they have established the West [India Company]. As the latter does not consume [demand— MS. ] so much expense, although the profits are less, it is more appreciated. This is an argument that ought to be heeded in order to establish a fort in the Windward Islands, as there is in the Filipinas, so that the same result might be experienced in the former as in the latter.

Number 43. Fourth effect of the conservation of the islands: the relief of the Indias

The fourth effect is the relief of the Western Indias; for with the diversion and expense that the enemy encounters in the Eastern Indias and the posts of Maluco, he is forced to pay less attention to the Western Indias, and to infest them with weaker forces—which would be greater if he could dispense with employing them in the Orient to counteract the forces of Filipinas; and the profits of commerce there increasing, he would, freed from the expense [of those armaments], be at liberty to occupy himself in the West. If the Dutch should enter there with all their forces, they would cause much more anxiety [than now], and more costly means of defense than those which are made in Filipinas. [ 120 ]

Number 44. Fifth effect of the conservation of the islands: the reputation of this crown

The fifth and last effect is that this crown will sustain its reputation and renown, a consideration which so urgently persuades it to preserve a post so honored, avoiding the scandal that would result from losing it, or from abandoning as difficult and costly the most noble exploit that has been offered to any prince. That would [will— MS. ] persuade the enemy that it was for lack of forces, or that the gospel ministers whom España sends only go where riches and advantage await them, and not where these are not found. That was one of the motives, if not the greatest, of the kings your Majesty’s father and grandfather; and your greatness has not only to preserve what you inherited by so many legitimate titles, but also to increase it as much as possible.

Number 45. Means existing for the conservation of the islands

Granted, then, and declared by so many and so evident arguments, the importance of the Filipinas, in regard to both its causes and its effects, it is to be noted that there are to be found but two means for the attainment of their conservation. One is for your Majesty to supply from the royal treasury all the expense that should be necessary, without heeding what income they furnish. The other method is to concede to them the commerce with Nueva España, in such quantity and manner that, with what should proceed from it, there should be enough to defend the islands. Each of these means is insufficient by itself, nor is it possible; for your Majesty cannot [ 121 ] spend all that is necessary for the maintenance of Filipinas, and it is not advisable to permit their commerce to the extent that the duties derived from it may equal the expenses incurred for the islands. Consequently, the least damaging and the most certain expedient seems to be to combine these measures so that your Majesty may aid in part, and may protect that commerce in such manner that the islands having the means therefor, may attend to their own wants; since the greater the sum derived from the commerce, without increasing it too much, the less the expense from the royal treasury.

Number 46. Points to which the execution of the means proposed can be reduced

In order to adjust these two means, as they are the only ones for this end, it is necessary to make known what the Filipinas are costing today. This will be the first of five points to which this matter is reduced. The second, what they contribute. The third, what commerce they exercise with Nueva España. The fourth, the present condition of this commerce. The fifth and last, what illegal acts are committed in this commerce, and how these can be avoided or corrected without ruining or destroying it. These points having been declared, the decision that can be rendered in regard to the petitions that are made in behalf of the islands will be clear.

Number 47. First point: of the expenses of the islands; and the first division of it, the administration of justice.

In regard to the first point, namely, the cost and expense of the islands, it consists in what results from [ 122 ] eight branches or main divisions to which it is reduced. The first is that of the justice which your Majesty, as natural seignior, ought to furnish and administer to those vassals. The head of it is the royal Chancillería which resides in the city of Manila. It was first established (for everything is done with a foundation), by a royal decree of March 5, 582, with a president (who was to be governor), three auditors, and one fiscal. 39 The governor and president, who was then Licentiate Santiago de Vera, was assigned a salary of four thousand pesos ensayados ; 40 and the auditors and fiscal, two thousand. For the payment of those salaries, by a royal decree of May 10, 1583, twelve thousand [pesos] ensayados in tributes of the Indians were ordered to be assigned (and they were assigned) to the crown. Later, it having been understood through some less authentic reports that the Audiencia was unnecessary in Manila, it was suppressed by a decree of August 9, 1589; and Gomez Perez Das Mariñas, of the Habit of Santiago, was appointed governor and captain-general, with a salary of 8,000 pesos ensayados, and with authority to have a guard of halberdiers to uphold the dignity of the post (as is done by his successors to this day). It consists of one captain with 240 pesos pay (although this post is always held [ 123 ] by an infantry captain who receives no more than the ordinary pay, which will be mentioned), twelve soldiers at 96 pesos, and one corporal at 108 pesos, making a total of 1,260 pesos of eight reals (all this account and summary being reckoned in pesos of that denomination). He was given a lieutenant-general as counselor, with a salary of 2,000 pesos ensayados. But scarcely was the Audiencia suppressed, than results showed the unreliability of the reports which had led to that step. Don Francisco Tello having succeeded to the government, the Audiencia was again established, and he was given the title of president, on December 21, 595. There were four auditors and one fiscal, who was to be protector of the Indians; and all were given the salary that they had before, except the president, who was left the 8,000 pesos ensayados that had been assigned him as governor. Thus the Audiencia is still maintained, with an expense of 18,000 pesos ensayados, or 29,000 pesos, 2 reals of common gold. To the court scrivener was assigned 300 [pesos]; to one reporter, 600 one fiscal solicitor, 300; to the captain, 350; to one herald, 48: a total of 1,898, to be paid from fines of the exchequer. The sum paid to corregidors is as follows: to two, for the island of Mindoro and the province of Catanduanes, at the rate of 100 pesos, to two, for the islands of Mariveles and Negros, at the rate of 150 pesos; to those of the islands of Leyte, Samare, Ybabao, and to him of Ibalon (who is also a sentinel), at the rate of 200. To twelve alcaldes-mayor of Tondo, Pampanga, Bulacan, Pangasinar, Ilocos, Cagayan, Calamianes, Zebu, Camarines, Laguna de Bay, Balayan, and Atilaya, at the rate of 300 pesos; and to him of Oton, who serves in the post of [ 124 ] purveyor for Terrenate, 700 pesos. Therefore the total in this department is 37,077 pesos.

Number 48. Second division: the conversion, preaching, divine worship, and the hospitals

The second is that which pertains to the conversion, and to preaching, divine worship, and the hospitals. The first bishop appointed for the church of Manila was Fray Domingo de Salazar. He was succeeded by Fray Ignacio de Santivañez, with the pall as archbishop—the church being erected into a metropolitan, and the three of [Nueva] Caceres, Zebu, and [Nueva] Segovia into suffragans, in the year 596, although the latter have no prebends. The archbishop was assigned a competence of 3,000 ducados, and the three bishops each 500,000 maravedis, all from the royal treasury; the tithes enter into the treasury, as their amount is small. Thus the four prelates receive annually, 9,637 and one-half pesos. To the dignitaries of the metropolitan church are paid: to the dean, 600 pesos; to the archdeacon, precentor, treasurer, and schoolmaster, each 500; to four canons, each 400; to two racioneros, each 300; to two medio-racioneros, 200; to two curas, each 50,000 maravedis; to two sacristans, each 25,000 maravedis. To the chaplain of the seminary of Santa Potenciana, which belongs to the royal patronage, 300 pesos. For four regular priests of St. Dominic, four of St. Augustine, and four of the Society of Jesus, who administer instruction in Manila, to each convent are given, 1,072 pesos; and for four others, Augustinian Recollects, 697 pesos to their convent. To two secular assistants of the bishop of Zebu, each 576 pesos, by a decree of March 14, 633; and a like [ 125 ] sum to two of [Nueva] Segovia, by a decree of April 11, 635; and the same to him of [Nueva] Caceres. To twelve curas, and twelve sacristans, in the three cathedrals, and in nine other churches of those islands, each 50,000 maravedis, and 25,000 [respectively]. To two religious who administer the sacraments in the island of Hermosa, each 536 pesos. To the convents of St. Dominic and St. Augustine, each 400; to that of the Society of Jesus, 200; to that of St. Francis, 300; to the nuns of St. Clare, 200. To two infirmaries, maintained by the Dominican religious in Cagayan and Pangasinan, each 400. To the Spanish hospital in Manila, 3,000 pesos; to the physician, 300; to the surgeon, 400; to the barber, 312; to the apothecary, 200; to the steward, 182 and one-half, and one tonelada in the trading ships. To the hospital of Cavite, 700; to that of San Lazaro of the natives, outside the walls, 3,442; to that of Los Baños of Nueva España, of holy 41 waters, 1,472, and 100 more for medicines; to that of the Sangleys of San Gabriel [Graviel— MS. ], 425; to that of Terrenate, 1,000; to that of Cagayan, 300; to that of Oton, 250; to that of Caraga, 50; to that of Zebu, 250; to that of the artillerymen, 500; to that of the trading ships, 1,000. To some churches which have alms of oil are distributed annually 3,940 gantas, which are worth 760 pesos. [The expenses for] this department amount to 37,297 pesos.

Number 49. Third division: the presents sent by the governor

The third is but little, and consists of [the expenses caused by] the custom in those islands of the governor [ 126 ] sending some gifts, donations, and presents to the kings of Japon, Camboxa, Tidore, and others. These are necessary to maintain their friendship, and to keep them well-disposed for what is asked from them; for not one of them receives an embassy favorably, unless it is accompanied by some present. In the year 580 a present was sent from España to Great China, consisting of twelve falcons; twelve horses, with their trappings and saddle-cloths embroidered with the royal arms; and six mules, 42 with their wrought coverings, which carried twelve boxes, filled with various curious articles. For securing this amicable relation, there are spent annually one thousand five hundred pesos.

Number 50. Fourth division: the management of the royal treasury

The fourth division is that of the management of the royal treasury. To the three officials—treasurer, accountant, and factor—are paid salaries of 5,625 pesos. To eight greater and lesser officials, 2,300 pesos; to one computer-in-ordinary of accounts, 1,000; to his chief clerk, who is a royal notary, 450; to three other clerks of accounts, 900; to the assayer and weigher, 550; and to its officer of justice, 300. The full total is 11,550 pesos.

Number 51. Fifth division: land warfare

The fifth division is that of land warfare. There is one master-of-camp in the camp of Manila, with 1,654 and one-half pesos pay; one sargento-mayor, [ 127 ] with 990; two adjutants, with 360; one chaplain of the regiment, with 360; one field captain, with 180; one chief constable, with 96; one head drummer, with 126; ten substitutes stationed near the person of the governor and appointed by your Majesty at different rates of pay, which amounted in the year 635 (the year when all this report was drawn up) to 6,675 pesos; one military notary, with 200 [20— MS. ]; and one procurator for the infantry, with 126. Of the presidios of Manila, the castellan of the fort of Santiago receives 800 pesos, and his one lieutenant, 420; three wardens for the presidios of Zebu, Oton, and Cagayan, each 300; their three lieutenants, each 96; one chaplain for Oton, 180; one lieutenant of the captain-general of Pintados, 800; one lieutenant of the governor and captain-general, for the presidio of the island of Hermosa, 1,200; one sargento-mayor of that presidio, who is also a captain of infantry, has captain’s pay; three adjutants of the sargento-mayor of Oton [Octon— MS. ], Cebu, and Cagayan, each 180; another in the island of Hermosa, 250. The infantry of the camp of Manila, which includes that of the island of Hermosa, consists of eighteen companies—sixteen of them with a like number of captains, and the two which are commanded by the master-of-camp of the army and the castellan of Santiago. All amount generally to 1,576 infantrymen, 88 men to each company. As to pay, the captains receive each 600 pesos; the alférezes, each 240; the sergeants, each 120; the corporals (there being four in each company), each 12 pesos over the common soldier’s pay; the 56 infantrymen, including page, fifer, two drummers, and one standard-bearer, each 96 pesos; the [remaining] infantrymen, [ 128 ] who are musketeers, each 126 pesos. To each company is given 30 escudos per month over the regular pay. The total expense in pay to each company amounts to 9,555 and one-half pesos. And inasmuch as they are never without crippled soldiers, who receive 72 pesos without serving, there is a fund of 1,000 pesos for them. There are 140 other soldiers of the Pampango tribe, who are stationed in the presidios of Manila, Oton, Zebu, Cagayan, and Caraga, who receive each 86 pesos per year. Their captain receives 288, one alférez, 192, one sergeant, 96. Consequently, this company causes an expense of 7,296 pesos. For the artillery, there is one captain who receives 800; four constables, in Manila, the fort of Santiago, the fort of Cavite, and the island of Hermosa, each 300; one hundred and ten artillerymen in the camp and presidios, each 200; the total amounting to 32,596. The total for this department is 229,696 pesos.

Number 52. Sixth division: of the defense of Maluco

The sixth is for the war and defense of Maluco. The castellan and governor of the forts of Terrenate receives 2,750 pesos; two adjutants of the sargento-mayor, each 825. There are seven companies of infantry with 570 soldiers. The captains receive each 600 pesos; each alférez, 240; each sergeant, 120; each corporal, 30 pesos in addition to the regular soldier’s pay; and the others as in Manila. Each company gets 30 escudos in addition to the regular pay. They were ordered to spend [the money for] four substitutes that they had, each of 440 pesos, and that pay was also given as additional pay. Thus each [ 129 ] of these companies causes an expense of 9,809 pesos. In addition there are two Pampango infantry companies, with 200 soldiers. Each captain gets 288 pesos; each alférez, 192; each sergeant, 144; and each infantryman, 72. The two companies cost 13,312 pesos. There is one surgeon who receives 664 pesos; one artillery captain, 480; one constable, 300; one field captain, 330; one war notary, 200; one accountant and factor, 1,150; one chief clerk, 400; another minor clerk, 150; one notary of the royal treasury, 250; one [book]keeper and paymaster, 523; twenty sailors, 150 [pesos] and one ganta of rice apiece; one cura, 50,000 maravedis; one sacristan, 25,000 maravedis; and seven religious, four of St. Francis and three of the Society, to whom are given 1,330 pesos. Consequently, [the expense of] this department amounts to a total of 97,128 pesos, three reals.

Number 53. Seventh division: the navy and marine works

The seventh is that of the navy and what pertains to marine works. There are six galleys, used as a guard for the islands. They have one commander-in-chief, who receives 800 pesos; one lieutenant, 600; six captains, two of whom live in Manila, two in the island of Hermosa, each 422 pesos, and two in Terrenate, each 699 and one-half pesos; one accountant, 400; one chaplain [captain— MS. ], 200. Each galley has one leader, who receives 170 pesos; one master, 300; one boatswain, 43 250; one boatswain’s [ 130 ] mate, 217 and one-half; one alguaçil, 230; one oarmaker, 230; three sailors, each 133. In all [six galleys] there are 1,080 convicts who receive 27 pesos and two reals, and three pesos in clothing. These six galleys cost 45,026 pesos annually. There are twelve pilots in the ports of Cavite, the island of Hermosa, and Terrenate, each of whom receives 200 pesos when he is not afloat (for when afloat they receive more); ten boatswains [ contramaestres ] of as many boats, who are paid each 325 pesos; ten boatswain’s mates, each 225. There are 520 sailors, each of whom receives 175 pesos, among whom are included those who sail to Nueva España, Terrenate, and the island of Hermosa, and other parts. There are 200 common seamen, each of whom receives 60 and one-half pesos; seven coopers, each 325; four Indian coopers, each 72 and one-half; one diver, 350; one hundred and sixty Sangleys (24 of whom are pilots), who serve as sailors in the champans and bring the food and war supplies, all of whom together get 7,504 pesos; twenty Indians, who serve in the boat that acts as a scout-boat in the island of Marivelez, who receive five hundred and forty pesos; one hundred and thirty Lascars, natives of India, who are sailors and common seamen, 9,754 pesos; one master of ropemaking, one hundred and seventy-five pesos; two Indian ropemakers, each 78 pesos; fifty Indians who work at the rigging, each 24 and one-half pesos; six Spanish carpenters, each 325; five hundred and fifty Indians, carpenters along the Cavite coast (six of them, who are bosses, each 97 pesos; 120 workmen and laborers, each 61; and the rest, each 49); 50 other Sangley carpenters and sawyers, who are paid 4,220 pesos; seven Spanish [ 131 ] calkers, each 325; four slave calkers, each 47 and one-half; fourteen Sangley calkers, who get 1,165 pesos; one master of the smithy of Cavite, 425; another of the Manila foundry, 375; another of the smithy of the army, 350; one hundred Indian smiths, for the three smithies, get 5,377 pesos; thirty Sangley smiths, ten of them bosses of forges, are paid 2,280 pesos. Therefore this part amounts to 180,731 pesos.

The ships that sail annually to Nueva España carry one commander-in-chief, or head, who, in addition to four rations that are given him, receives a salary of 4,325 pesos; one admiral, 2,900. Although it is ordered in the royal decree for the grant of the last of December, 604, that these ships have an overseer and accountant, with pay of 2,000 ducados apiece, in order that they may keep account in their books of what is carried and taken, as in the last reports of expenses and salaries, those offices are not found. It is doubtful whether they are provided, and accordingly they are omitted. There are two masters, each of whom receives 400 pesos; four pilots, each 700; two boatswains, each 325; two boatswain’s mates, each 225; two notaries, each 225; two keepers of the arms and stores, each 225; two calkers, each 325; two water guards, each 225; two surgeons, each 225; two constables, each 325; twenty artillerymen, each 225 (who ought to serve a like number of pieces, according to the seventh section of the royal decree of 604); six Cahayanes [ i.e. , Cagayans (Indians)?], each 60; two coopers, each 325. These wages amount to 20,535 pesos, for sailors and common seamen belong to those whose posts are continuous. On the return trip [to Filipinas], when [ 132 ] the usual reënforcements are carried, there is a sargento-mayor, who gets 600 pesos; one adjutant, 412; one royal alférez, 865. It is ordered by a royal decree of December 14, 630, that the latter officers be aided with only four months’ pay at Acapulco, and that they be paid for the time of their service. Furthermore, there is a shoremaster at the port of Cavite, who receives 600 [650— MS. ] pesos; and although it was ordered by a royal decree of April 22, 608, that he should not receive this salary, that office must have appeared indispensable. There is one builder for ships and another for galleys, each of whom receives 690 pesos; one gunner to sight the guns, and an overseer of the royal works of Cavite, 800; one manager for the artillery foundry, 500; one founder, 450; one powder manager, 500; another of the rigging, 272. One galley is built every year, on an average, which costs 20,000 pesos finished and ready for sailing, exclusive of the men who work at it. The purchase and equipment of 18 champans cost 2,300 pesos. Therefore, according to the items above mentioned, the expense of this department amounts to 283,184 pesos.

Number 54. Eighth division: the food, munitions, 44 and other expenses

The eighth and last is that of the food and munitions. As much as 50,000 pesos are given annually to the factor of the royal treasury, for expenses and the purchases of food, and the pay for the careening and repair of ten galleons and six galleys. For flour biscuit for the voyage, besides the rations, are spent 5,000 pesos; for iron, 1,250; for wax, cotton, and other things, 1,300; for balls and fuses, 1,000; for [ 133 ] saltpetre, and the making of powder, 4,000. A quantity of money is sent to the alcaldes-mayor and the persons who bring in the supplies for the provision of the royal magazines, the amount being estimated at 86,000 pesos. On extraordinary watchmen are spent 2,000 pesos. To the keeper of the magazines of Manila is given 750 pesos; to his clerk, 222; to the keeper of those of Cavite, 395; to his clerk, 212; to the keeper of that of Jambolo in Pangasinan, 173; to the keeper of the magazines in the island of Hermosa, 300; to his accountant, 500; to his clerk, 200. The expense of this last department amounts to 153,202 [15,302— MS. ] pesos.

Number 55. Summary of the expenses of the islands, and the persons employed

The above is what is spent annually on the average, more or less according to the times, for all purposes in the Filipinas Islands, a summary of which (both of persons and money) is as follows.

Consequently, exclusive of the four convents and fourteen hospitals which are cared for, and the alms which are given for wine and oil to certain churches, your Majesty pays in the Filipinas Islands and Maluco, and in their navigations and trade-line, salary, pay, and special wages to 5,878 persons, 3,338 of whom are Spaniards, and 2,540 are Indians or men of various nations. The cost of all included in the eight departments here presented, as it appears, is 850,734 pesos of eight reals.

Number 56. Second point: of that which the Filipinas produce

Having seen what it costs to maintain the Filipinas Islands, the second point is to ascertain how far they aid in this cost, and with what they supply your [ 135 ] Majesty’s royal treasury, in which notice is to be taken that there are eleven departments of revenue.

These eleven departments of royal revenue amount to 573,922 pesos; and the Filipinas produce that sum in revenue for your Majesty. 46 [In the margin of Extracto-historial reprint : “Note—This sum seems to be inaccurate, because it should amount only to 543,922 pesos.”]

Number 57. The excess of expenditures for the islands over the receipts

It is ordered by a royal decree that the amount reported from the islands to be lacking for the total amount of situado be sent annually from Nueva España; and as the situado, according to the calculation set forth, is 850,734 pesos, there is an annual deficit of 276,512 pesos or thereabouts; [In the margin of Extracto-historial reprint : “The deficit should be 306,812 pesos.”] for this account is made for only one year, and is not fixed, although it it usual every year. In this matter it is to be noted that this [itemized statement] answers the current report that every year six hundred thousand pesos and more are taken from Nueva España for their [ 138 ] expense. That report gives rise to the belief and understanding that they spend that amount in addition to their receipts. That is an error; for if from the tenth division the sum of 330,000 pesos is made good, which is collected in Acapulco and Mexico, and other parts of Nueva España (and this is recognized to belong to the islands by the above-cited royal decree of 606 and is therefore ordered to be returned to them), when 600,000 or more pesos are sent, not one-half that amount is supply of deficiency, and expense, since more than one-half is returns. And even this is counterbalanced somewhat by what is derived from the bulls of the crusade, the proceeds of which are ordered by a royal decree of December 21, 634, not to be taken to Mexico, but to be kept at Manila, and that to the treasurers in Mexico a like amount be furnished. Although this order is opposed by the crusade, as it is advisable it ought to be executed, and a second decree issued ordering its observance; thus two dangers might be avoided to this sum, one in going and the other in being returned—as is done with the possessions of deceased persons, by a royal decree of December 13, [of the year] 16, which are kept in the Manila treasury, and paid into that of Mexico.

Number 58. The islands contribute more than they spend

From the expenses and contributions of the islands, and the excess of the debits over the credits, some, through lack of acquaintance with the matter, are wont to derive the main argument against them, imagining that the islands are of little use but of great expense. Although the first of these propositions [ 139 ] is quite confuted and answered by what is thus far alleged, the second also lacks foundation in the meaning in which it is put forward, which attributes to the islands more expense than profit; for the Filipinas alone contribute more than what they cost. Until the year 607, the islands of Maluco belonged to the crown of Portugal, which spent a great sum of money on them—as was necessary on account of the great distance from Goa, upon which their government was dependent. Although, nevertheless, those islands were maintained, that appeared impossible after the Dutch entered the Orient; for with their advent the expenses of Maluco were so increased that the islands were lost, inasmuch as there was no money with which to maintain them. It was ordered that the Filipinas recover them, and they did so. In order to assure the safety of the Malucos and to economize expenses for the convenience of both crowns, they were joined and united to them [ i.e. , Filipinas], imposing on the crown of Castilla, and in its name on the Filipinas, the obligation to attend to their wants, thus adding to Filipinas at least 290,000 pesos of expense—the amount of what pertains to Maluco from the second, third, and fourth departments, all the sixth, half the seventh, and a third of the eighth. If your Majesty is petitioned for 276,000 pesos annually for both groups of islands, as is attested, and those of Maluco alone cost 290,000, the deduction is evident that the Filipinas per se cost less than what they contribute—and more, if it is considered that the crown of Portugal saves 400,000 pesos which the Malucas must have cost it when they were under its charge. Since the Filipinas did not ask for that union, and were not a party in causing [ 140 ] it to be made, they ought not to be charged with increase in expenses which those islands cause them.

Number 59. How and in what the inhabitants aid in the support of the islands

But it is proper to remark at this point, what is the kernel of the matter under discussion, that the Filipinas and Malucas are not supported with the 850,000 [890,000— MS. ] pesos, which are the amount of their expenses. Neither that sum nor a much greater one would be sufficient, if the inhabitants of Manila did not serve, aid, and help with their possessions and lives on the occasions that arise, both extraordinary and ordinary. Now [they serve] as soldiers in the wars when the enlisted and paid troops are outside, or are not sufficient to resist the enemy, standing guard and assisting in military duties with the [same] punctuality and discipline as if they drew pay; and although they are few, as has been said, they count for many in the valor, willingness, and generosity with which they serve. Again, they give their slaves to labor on the public works and shipbuilding, and ordinarily for the levies for the galleys, as happens daily; and in the term of Don Alonso Faxardo, had not the inhabitants furnished the crews, the galleys could not have sallied out, as they did, against the enemy. Then they lend, when the aid from Nueva España is delayed or insufficient, very great quantities [of money] for any sudden expense—as was that above mentioned in the case of Don Alonso Faxardo, to whom they lent at that time two hundred and fifty thousand pesos. So they do every year, and always without interest, the payments sometimes being delayed two or three years. In [ 141 ] regard to that, there is a royal decree of February 29, six hundred and thirty-six, in which it is ordered that those who make such loans shall be promptly repaid, in order that the royal treasury may be accredited when it needs help. They help, too, with very large and continuous gifts of money, and food and products (which are generally more important than money), which the governor assigns for the aid of Terrenate, the island of Hermosa, and other posts. They also accept expeditions and embassies, by which they go at their own expense to the kings of those archipelagos. So have gone General Juan Xuarez Gallinato, to the king of Camboxa; Gregorio de Vargas, to him of Tunquin [Tumquin— MS. ]; Juan Tello de Aguirre and Juan Ruiz de Ycoaga, to him of Siam; to whom also went Admiral Andres Lopez de Asaldegui; Don Luis Navarrete Faxardo; and afterward Don Antonio de Arco, to the emperor of Japon, at the cost of life; Don Juan Zamudio to China; and others to other kings—each one spending ten or twelve thousand pesos to serve your Majesty. In short, the occasions that the inhabitants of Manila have for helping, and to which they respond as loyal vassals, are as many as will be seen in the future, and as one can imagine would be found in a post and frontier so infested by so many and so strong enemies—Dutch, Chinese, Japanese, Mindanaos, Terrenates, Zambales, and those of other nations, which keeps the inhabitants in arms continually. Scarcely is there a year when the inhabitants do not engage in hostilities, and it necessarily costs them heavily. If it were all at the expense of the royal treasury, the cost of the islands would increase so that it would almost exceed their possessions. [ 142 ]

Number 60. To what degree the inhabitants of the islands ought to be favored

By all this is represented to your Majesty what those vassals merit who are always and continually serving, not in posts and duties that increase their wealth and advance their households, but in land and naval warfare, in which they lose their lives and possessions—fighting now with the Dutch, who harass them more sharply than in Flandes, and make daily attacks; now with the numerous nations who surround them. Consequently, they deserve that their services be considered, not only in consulting as to rewards, but in giving them; and that they be gratified with honors and rewards—if not equal to their services, as those are so great, at least equivalent to what good government permits, and to what the same land which they defend can support. That is in accordance with the royal decree of February 29, 636, in which the governor is ordered to observe the rules ordering that military offices and encomiendas be given only to those who shall have served under your Majesty’s banners, and always preferring those who shall have rendered most service. It will be proper and very consoling for the deserving citizens and residents of those islands, that the royal Council of the Indias—which, as it were a crucible for the new world, estimates services, approves merits, and deliberates as to rewards, with so much acumen, equality, and justice—allow the claims of Filipinas before those of others who, by serving in Flandes, Italia, and Alemania, try to get hold of the best posts, not alone of the Indias, but even of the islands themselves which they never entered. For, if the [ 143 ] latter do not exceed the former in the hardships, perils, and services that the citizens of the islands suffer and perform, for your Majesty and for that colony, and those citizens should be preferred justly in the rewards of their own land, then they have sufficient ground for asking that they be not despoiled of this favor and privilege, which they try to merit by so many and so repeated acts of valor and loyalty; but that in the dispensing of that favor they may recognize that they may expect sure rewards for their children, by leaving them as an inheritance the blood shed and the property spent in defense of their king and the preservation of their fatherland. And since their services differ so widely in quality from those of others, who have no services, it will be just that their papers and claims be examined with a different kind of attention.

Number 61. It is not advisable that the magistracies of the islands be sold

In this matter also it is to be noted that the magistracies of the city were formerly conferred by the governor on the most deserving and venerable persons who were to be found. They, because of their experience and zeal, accepted those offices, and attended to the duties of those charges as was demanded. In order that those offices might be held by them for life, it was sufficient for them to come to ask for confirmation of them from your Majesty, in accordance with the royal decree of March 17, 1608, and February 8, 1610. And although, since they were ordered to be sold, persons of equal ability and position have bought them, and fill them and attend as they ought to the government of the community [ 144 ] (which in this, above all else, has always been fortunate); and although the governor is ordered by a decree of June [July— MS. ] 12, 636, to employ the regidors of Manila in charges and posts according to their rank and the competency with which they can serve your Majesty, and that he honor, favor, and aid them in whatever else arises: the deserving men of that city cannot be prevented from expressing their resentment that, while there are so few rewards to which they can aspire, so many the occasions in which to serve, and so remote the qualification of their merits, that small part should be taken away from them, and that, in order to enjoy those offices, they should have to be bought. Moreover, the command, by decree of June 3, 620, that the magistracies of the Filipinas be sold only to conquistadors and settlers, or to their descendants (which was only recognizing that it was fitting to do so, but not assuring the reward), is no favor; for those to whom it is ordered to sell them, since it is so just that those who conquered and seeded should govern, are generally the poorest of all. And although they desire to enjoy the offices which belong to them, some of them do not possess the money with which to buy these; while others do not care to spend the little wealth that they have acquired for what is not of any use or profit to them, but rather a burden and inconvenience—since, by defending that community, they have had many contentions with the former governors. Consequently, it is very advisable that the magistracies be given to men of years, and old residents in the colony, who have held military posts, and who can oppose the governors when the latter try to exceed the provisions of your Majesty’s [ 145 ] decrees. For this and other reasons, it has been experienced that eight vacancies have existed in the magistracy of Manila for many years, because there were no buyers for them, as appears from the royal decree of February 29, 636, in which it is mentioned. And since the greatest value of those offices is one thousand one hundred pesos, and, if one consider the twelve magistracies, they do not produce an income of five hundred pesos per year, that is so small a sum, and there are so many damages and disadvantages that may result from it, that it would be a gain for the royal treasury and a great service to your Majesty to have the sale of the said offices stopped, and to have them given as formerly by the governors to the oldest residents, and to men of greatest experience and worth and as favors to individuals—that, while they do not give any profit, they may give honor to the citizens of Manila. Since there is not a city in all the Indias of its rank, nor one in which the inhabitants render so much service and with less advantage, this measure will not be a conclusion of which others may avail themselves to demand the same.

Number 62. Third point: of the commerce of the islands with Nueva España

From the service rendered by the inhabitants of Filipinas, one may deduce how necessary it is to maintain the rich, or to give them capital sufficient for them to attend to their business. For that the only method (and the third point of the five arguments proposed), is the commerce of the islands with Nueva España, for in the proportion in which that shall increase, their possessions will increase, and [ 146 ] with that the defense and security of the islands. For there is no more powerful argument than that which establishes the conservation of a province in the strength, that is, the wealth of its inhabitants, and depends on the abundance of that for its conservation. Commerce is a natural law of nations, by which they make common to all provinces what each one produces, grows, or manufactures—now by selling, now by exchanging. Although commerce ought to be free, and was in the beginning, when kingdoms and seigniories were less powerful (for as they had narrower territories, so they had fewer matters to which to attend), as the monarchies increased and extended it became necessary to limit the commerce in parts, prohibiting it with some, in order to oblige or cause it to be maintained or increased with others. If that of Filipinas with the Indias were free and absolute, as it was immediately after their discovery, it is evident that they would enjoy the greatest prosperity; while Nueva España would have greater abundance of what was necessary to it, and Peru of what it lacked. But the commerce of España, which would perish and be ruined, was opposed to that; for since the goods sent thence to the Indias were dearer than those of Filipinas, if merchandise entered from both parts without restriction it would be to the advantage of the consumers to seek that from Filipinas rather than that from España; and the former commerce would continue to increase, and the latter to decline. Accordingly, it was right and proper to restrain the one so that the other might endure, and that, heeding the principal thing, namely, the conservation of these kingdoms (the heads of the monarchy), trade to them [ 147 ] might be free, and to the others restricted—maintaining such a proportion in this that in securing the prosperity of España the ruin of the Filipinas might not result; for natural laws influence us to concede what is to the advantage of another, when it involves no injury to one’s self. And thus it is no considerable damage that the kingdoms do not increase as much as is possible, if they maintain what they have; for the former is a matter of gaining, and the latter of not losing, until each one is left what is sufficient, if from conceding more results the lack to others of what is necessary. Accordingly, to Perù 47 is conceded one ship annually for Nueva España; to Nueva España two for Filipinas; and to España the number that its commerce demands and is entitled to, in consideration of its amount—so that thus neither may the islands be lost nor Nueva España and Perú be deprived of all the freedom of their trade, nor España feel so much weakness in the trade of the Indias that it should lose that; and that all may remain in suitable relations [to each other], since they are members of the mystical body of this monarchy.

Number 63. Why the islands need the commerce of Nueva España

This matter being thus explained, it is also supposed that the Filipinas retain the trade above described with various kingdoms of the Orient; and that all that trade is free and open without any [ 148 ] restriction, except that of China, and that of the Western Indias, which they maintain and observe in a certain manner. For since all those different traffics require the return of suitable kinds of merchandise in order to sustain the exchange in which they consist, and the islands need them—for the rice, cotton, wines, blankets, textiles, and other products, are not desired by China, Japon, Sian, or any other pagan nation, because they abound in the same products, or have better ones—those different branches of commerce must necessarily cease, if there were not another foreign and different commerce, which, desiring the products of those regions, can extend and carry on another trade, which their nations desire and crave. This is that of the Indias, from which is conveyed and bartered silver (a most noble commodity), in return for which are carried the drugs and merchandise that are produced in China and other Oriental kingdoms and provinces, and traded in Filipinas, by which all come to be sustained, united, and joined.

Number 64. Commerce of the islands: why it is injurious to España

This commerce of the Indias with the Filipinas is to the prejudice of España for two causes or reasons, from which result great disadvantages. The first, because the silver is withdrawn and conveyed to the islands, whence it passes into the possession of the enemies of religion and of this crown, Moors and pagans; and finally remains in China—which, according to what we understand, is the general center for the silver of Europe and Asia. For as it always is current, gaining and increasing in value [ 149 ] until it reaches that great kingdom, whence it must issue with a loss, it does not issue, and remains perpetually among those inhabitants. From that cause result many damaging effects: such as enriching our enemies, giving them the most noble product of all the commerce of the globe; making easy for them the possession of that which private persons among them maintain, and increasing their number; preventing that silver from going to España so that the royal duties might increase thereby, the avería and the commerce be sustained; and, in short, making this crown lose and its enemies gain. The second cause is that, in addition to the aforesaid losses (which are obvious) from the withdrawal of silver, no less are the damages that are experienced on what is sent in return for it to Nueva España, and passes to Perú—namely, a great quantity of the merchandise of China in textiles of gold, silk, and cotton, and other articles. [These are sold] at so low prices that, when the merchandise of these kingdoms arrives (which is worth more, as it is of better quality), it is not sold and has no outlet, as the country is full of the others [from China]; so that those who ship it lose. Consequently, losses are multiplied; and from all results so extreme weakening of the commerce of España with the Indias, that it is almost extinct and will be diminished just as that of Filipinas increases.

Number 65. Reply to the damages of the commerce of Filipinas; and to the first, regarding the withdrawal of the silver.

These two reasons are [alleged as] those which hinder the advancement of the islands, and restrict [ 150 ] its commerce. However, a reply is not lacking, which, if it does not destroy, weakens them. For to the first, regarding the withdrawal of the silver and its retention in China, answer is made, that on the silver which goes [from Nueva España] nine per cent [duties] are paid at Manila, and at Acapulco fourteen per cent, a total of twenty-three per cent. Consequently, the duties on its transportation to España are not lost, for they are paid there in larger measure. The effects are not those which are represented; for, although it is true that the silver goes from Manila, it is for China, and for the very reason that it does not issue from that country, it does no harm. But the retention of what comes to these kingdoms is a greater injury, as it all goes to Olanda, Genova, and Venecia [Venencia— MS. ], and thence to Turquia, while some portion goes to India by way of Portugal, and those same Dutch, and the Persians, Arabs, and Mogores share the silver; and, although at last it goes to remain in China, it is after it has enriched the greatest enemies of this crown. That is not the case with what goes by way of Manila; for, if it goes thence, it is through the hands of your Majesty’s vassals, and it does not reach the hands of the enemies. But even this reply is superfluous, for it is not necessary to the islands nor to their inhabitants that more silver be sent to Manila than is permitted; rather is it important to them that the [amount for which] permission be observed and executed with rigor, as will be said. [ In the margin : “In numbers 98 and 99.”] Therefore, of the damages caused to the commerce of España by that of Filipinas, only that to the merchandise should be made good; for the silver either is within the limits [ 151 ] of the permission, and does not conflict [with this statement] (for neither does it cause any loss, nor can it be dispensed with), or it is in the illegal amount that is stated, and the citizens request that this be corrected and prevented. For if there is any damage to España, it is not any advantage to them; but, on the contrary, destroys and ruins them, as will be seen.

Number 66. Reply to the statement touching the merchandise exported from the islands

As for the second reason—that of the merchandise, and the trade of the islands therein—it is not denied that it would have the effects that have been stated, if it were free, open, and without restriction; but these cease, because experience and good government have chosen a method such that neither the commerce of España should be destroyed, nor that of the islands be annihilated, by permitting the commerce to one in such quantity that it should not prove damaging to the other. And although España petitioned that the commerce from Filipinas be totally suppressed, by which they thought that they would assure their own increase, it was also considered that the islands would surely be lost in that case; and that they would be settled by the Dutch, who would make themselves masters of all the Orient. Consequently, that would not only expose India to evident danger, as has been proved, but would also, by increasing the forces of the Dutch, render them more powerful in the trade of the Indias, and in all the regions where they navigate and traffic. Therefore, if the trade of [the merchants in] España should increase for the one reason, their risks and expenses [ 152 ] would be greater for another; and nearly all the trade of Portugal would be ruined. Thus from an imagined benefit would result damages so certain and considerable that, were they weighed as they ought to be, the present losses would be considered as more tolerable. Such is the mutual relationship of states which are many and extended that, if attention to all of them be difficult, it is advisable that decisions be adjusted to the least harmful course. Accordingly, it is proper that the islands should not continue to increase, but that they be allowed the commerce that is sufficient to maintain them; and that that of España should not be increased in that region, but that the trade of the islands be restricted in such manner that it shall be as little obstructed as possible. For, by each kingdom losing a part of its right, all will be maintained and conserved.

Number 67. Commerce of España with the Indias: why it is decreasing

This will be more apparent with the conditions and the changes which the commerce of Filipinas and that of España in the Indias have sustained and suffered. That of España has decreased so much from its usual status that it appears to be less than the half of its former amount. Although the fault is attributed to the Filipinas, that is because the matter is not probed below the surface, and causes are not sought at their sources. The physician who understands only the effect of a dangerous illness, namely, the death of the patient, generally attributes the sickness to uncertain causes and sometimes so remote that they have no connection with the case in question; and, since he prescribes his remedies for [ 153 ] such causes, the true, proximate, and essential causes which are working out of sight without any check, end, if not by killing the patient, by placing him in evident risk. All see and recognize that the commerce of the Indias is in a feeble condition, that the merchants are losing, that the exporters do not obtain their capital [from what they ship], and that the ships which go are smaller, and return with poorer cargoes. Although this loss is so well known, there are some who ascribe the cause of so great an effect to the Filipinas, and not to the misapprehension of España—which is persuaded that the wealth of the Indias must be inexhaustible, and that the merchants can still gain on their investments the same amounts as fifty years ago, while the causal means of it all have been lacking, which have been noticed by few, and ignored by many.

Number 68. First reason for the decline of the commerce of the Indias

First, the abundance of gold and silver. So great was the abundance of these metals in the Indias, that one could say the same as of Jerusalem in the time of Solomon, that they were regarded as the stones of the street. Accordingly, articles were paid for at so exorbitant prices, as is apparent from the histories of their conquests. That region has failed, for the ores that yielded three hundred pesos per quintal by smelting, now yield eight or six by quicksilver, which costs more than smelting; and [such ores] are worked as good ones. Potosi, which is the heart of the Indias, is threatening to give out; for it alone yielded for forty years an amount that it cannot now yield, although aided by the opening of many mines which [ 154 ] sustain its reputation. The mines of Nueva Reino [ i.e. , New Granada] and of Nueva España have lost a part of what they had. The cost of mining is greater, the mines are poorer, and, consequently, the gains less, and less the amount obtained. Therefore, since this was the first cause of the greatness of the Indias, it is not remarkable that with its deficiency their commerce has declined.

Number 69. Second cause for the decline of the commerce of the Indias

The second cause is the decrease of the Indians and the increase of the Spaniards. The latter number thirty times more than formerly; where there were five hundred, there are now three or four thousand. Without exaggeration, there has been a decrease of the Indians of more than six millions. Although not all of them used Spanish commodities, they consumed many, and to so great an excess that it became advisable to prohibit this to them and order them to dress as did their ancestors. What is most to be regretted is the cessation of the service for the mines, the cultivation of the fields, the gross sum of the tributes, and the local commerce of many provinces. With fewer people and less wealth, there must be less consumption and smaller profits; and, if everything diminish, it is impossible that trade should not do the same.

Number 70. Third cause for the decline of the commerce of the Indias

The third cause has proceeded from the above two; for with the increase of the Spaniards, not only has the consumption not increased, but it has been [ 155 ] and is much less. For, besides the fact that so many stuffs and figured goods are no longer worn out in the Indias as formerly, and he who clad himself in silk now contents himself with cloth, all bulky goods that are exported from Sevilla are manufactured there [in the Indias]—where with the number of people their necessity has increased, and with their necessity their skill. The consumers are fewer, and the officials more; there is little money, and those who seek it are many; and they seek it more eagerly as their courage is small, since their funds are already scant. The springs are drained dry, for there is less water, so that scarcely can they dampen what they formerly soaked. What few formerly shipped and many bought is now quite the contrary, and many send it and there are few who use it—as is evident by the wine which was and now is consumed by Nueva España. On that account it has been necessary that the former profits cease, and that the exportation and consumption of merchandise be restricted—not only on account of the goods which are manufactured there, but because of lack of consumers and lack of wealth, all of which are causal circumstances of the decline of the commerce.

Number 71. Fourth cause for the decline of the commerce of the Indias

The fourth and last cause is the little favor extended to the Indian trade, both in the Indias, and in these kingdoms—either because of the straitness of the times, or because of other accidents—together with the burdens that have fallen upon everything, the imposts and duties increasing, although greater relief was needed as the amount of wealth was less. [ 156 ] The avería, which increased from two and three per cent to six and seven, and was then judged to be so exorbitant that it seemed impossible for the commerce not to be ruined with that excessive tax, has increased so greatly that one year it rose to forty, and with the other expenses is never lower than twenty. What were formerly risks at sea are now great and evident losses, which, aided by the necessities of this crown—which force loans and considerable gifts, and the exchange for juros 48 of what was formerly the capital for commerce—have so weakened commerce, that one is more astonished that it has not been entirely ruined, than that it has declined to its present condition. And all the more justifiable have been the reasons why this crown has profited from the exporters among the merchants of the Indias, and from what has come from the Indias, the greater the loss has been, as it was known to be unavoidable on account of what occurs on land, and more hazardous because of what is risked on the sea—by which some have been ruined, others have retired from trade, and others have changed their business; and all who take part in it are aware that this commerce is ruined, and with it whatever depends on it. It is certain, and has been observed in Manila, that since the loss of the trading fleet of the year 629, and their unfortunate experiences with [storms in] the Northern Sea, the winterings, the disasters, the averías, the embargoes, the delays, and the burdens [imposed] at Sevilla, the merchants in Mexico have decided to export more to Filipinas than to España. And although these things are found by experience to be thoroughly damaging and [ 157 ] irreparable, and [it is evident] that they demanded new exemptions and safeguards, by which the losses might be recuperated, and those who suffer them be encouraged, there has not been lacking a person to propose as an expedient that the duties and customs should be raised still higher in the Indias, affirming that they are the most free, and that they pay less—although they really are quite the opposite, as is known.

Number 72. The Filipinas do not damage the commerce of España

The above and many other causes which might be mentioned are those which have weakened and are ruining the commerce of the Indias; and although it would be more advisable to counteract some of them, or to seek reparation for those which are most hurtful, the Filipinas Islands come to be the ones that suffer the penalty, without being implicated in the guilt. And although their commerce is in the lowest condition that it has ever experienced or suffered, yet even in this condition they are not allowed or permitted [to improve] it, and there are some who propose its destruction as a remedy, so that it may share in the universal destruction of all trade; and this is in so far as it touches the commerce of España.

Number 73. Beginning of the commerce of the islands

The commerce of these islands began with their second discovery and the first settlement, which was in the year 565. 49 However, it was at the first scanty [ 158 ] and of little weight, until during the government of Guido de Labazarris, in the year 576, 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, 579. As it continued to increase, it was believed necessary to restrict it; and accordingly, by a decree of November 11, 587, it was ordered that Chinese cloth brought from Filipinas should not pass from Nueva España to Perú or to Tierrafirme. That decree was later confirmed by others of February 13, and June 13, 599. 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, 591, ordering the total cessation of commerce between the islands and Perú. That was later extended to Tierrafirme and Guatimala, by decrees of January 12, 593, and July 5, 595, forbidding the trade of China and its merchandise to all the Indias, except to Nueva España, which was left open to the Filipinas.

Number 74. Permission for the commerce of the Indias, and its final form

The commerce of Sevilla was not satisfied with even these orders and restrictions. That commerce continued to decrease, although the cause was unknown. They regretted the damage, and tried to apply the remedy, but in vain. As the trade of Filipinas was already the stone of offense, they immediately descended on that. Not only was the prohibition of commodities from the islands strengthened, but their quantity was limited, reducing it to a fixed amount that was permitted, and a [ 159 ] certain form. It was ordered that only four ships should ply in that trade-route—two which should sail to Nueva España, and two to the islands, and all at the account of the royal treasury. In these could be carried two hundred and fifty thousand pesos’ worth of such merchandise as they should have in Manila; and in return they could take five hundred thousand in silver, including in this sum the principal and the profits. And inasmuch as this permission, from its beginning, was never in favor of Nueva España, but of the islands, it was declared that only the citizens of the islands could navigate and trade, as was already ruled by a royal decree of January 11, 593. In accordance with this, the commander [of the fleet] was despatched on the last of December, 604, with various instructions and declarations, which gave form to this commerce. And since his permission was for only the citizens of the islands, and those who were not residents of the islands but of Nueva España had begun to take part in it, it was ordered that the toneladas of the two ships which sailed should be distributed in Manila by the governor, the archbishop (or the senior auditor), the fiscal, and two regidors. That order was confirmed by decrees of May 4, 619, and May 29, 620, and by others, which regulate this matter, and declare that the respective shares of the silver which must be sent back as returns for the merchandise must be allotted in Nueva España.

Number 75. Administration of the permission for the islands for its citizens alone

Notwithstanding this last order, the citizens of Mexico, who had before taken possession of part of [ 160 ] this commerce, continued in it, availing themselves of certain underhand work and management—by which the citizens of Manila perceived the damage that they were receiving, in that others were enjoying what had been conceded to them. Accordingly, as soon as they received the decree of 593, which was the first decree that granted to them exclusively the permission and trade, they decided, in order that they might manage their cargoes, to appoint four or six men to go to Nueva España in the name of all, and there attend to the sale of the merchandise in the ships, and to the returns for it. That determination had no effect then, nor in the year 597, when Governor Don Francisco Tello ordered it executed by an act of January 24. It was again proposed in the year 623, when open cabildo-sessions were held in Manila for that purpose, and persons appointed for it; but neither were they sent, because of certain obstacles in the way. But since the necessity became more urgent, because of the injuries experienced, the matter was undertaken more effectively in the year 629, and six commissaries, citizens of Manila, were actually appointed and went to Nueva España, where they are today administering the commerce permitted to the islands. That has been examined in the royal Council of the Indias, together with all the acts which have been made upon it; and it was approved by a decree of March 25, 635, and extended for four years more than the six (for the one of 593 was for six years), by another decree of February 16, 635. The chief motives that induced the inhabitants of Manila to carry out this resolution, were three. The first was, to prevent the consignments of silver which the merchants of Perú and [ 161 ] Nueva España made through their agents and correspondents, the result of which—to say nothing of the violations of the royal orders in sending silver in excess of the amount allowed—was so prejudicial to the citizens of the islands that it deprived them of the benefit of the permission, while those who were expressly excluded from it enjoyed it. The second was, that with the great amount of silver that entered Manila the price of the Chinese merchandise advanced so greatly that the inhabitants could not buy it. The third was, that prices fell in Nueva España for the same reason, so that the principal could scarcely be realized, as will be told. [ In the margin : “In number 98.”] [Those were] damages that were repaired by the decisive action above mentioned. And lest that should not be sufficient, it will be advisable that, in the distribution of the licensed toneladas that is made in Manila, measures be taken that no one have a share except the citizens [of the islands] in accordance with the third petition. [ In the margin : “In number 103.”]

Number 76. Declaration of what is or is not included in the five hundred thousand pesos allowed.

Inasmuch as there were certain doubts in regard to the sum of the five hundred thousand pesos of the returns, it was declared by royal decree of August 19, 606, that it should include the legacies, bequests, moneys for charities, payments for service, wrought silver, and whatever else might be shipped, except by those who bound themselves to reside for eight years in the Filipinas. Such might carry their possessions in money, in addition to the general permission, [ 162 ] as was declared by a decree of November 20, 608; and the seamen of that trade-route might take their wages in silver, registered, also in addition to the amount permitted.

Number 77. Smuggled Chinese goods shall not be sold in Perú

Peru was excluded from the above-mentioned concession, and the former prohibitions forbidding the importation of Chinese stuffs into Perú remained in force, while the penalties were rendered more severe. Inasmuch as from their enforcement it resulted that merchandise of this character, which was seized as forfeited and confiscated, was sold as smuggled goods, and thus the goods remained in the country, they were (although remaining with that warrant and reason) the cause of as much loss and damage as if they had been brought in either secretly or by permission; for the country was filled with these wares, at more moderate prices than those of España. Accordingly, it was ordered by decrees of April 18, 617, and July 30, 627, that Chinese cloth which should be smuggled, and as such condemned as forfeited in Perú, should not be sold in the provinces; but that, in the same form in which it had been seized, it should be carried to these kingdoms and sold here.

Number 78. Permission to trade between Perú and Nueva España, and its condition

Perú and Nueva España appealed from the mode imposed on the commerce of the islands, and from the above-mentioned prohibitions, representing certain disadvantages that resulted from barring them [ 165 ] from the commerce that those two most opulent states had maintained between themselves, almost by nature, the chief one being that they were deprived, in this manner, of all the mutual relationship and dependence that they ought to enjoy. Therefore another permission was conceded, for two ships: one to leave annually the port of Callao de Lima, and to carry silver to the amount of two hundred thousand ducados to the port of Acapulco, in order to invest it in the products peculiar to Nueva España—of agriculture, stock, and manufactures—and in no others, even though they be products of these kingdoms; and the other, to sail from Acapulco to Callao with these returns. The prohibition of Chinese cloth was left in force, and it was declared that no Chinese cloth could be sent in the returns for the two hundred thousand ducados, nor beyond that sum. Severe penalties were imposed for its enforcement, by decrees of the last of December, 604, June 20, 609, and March 28, 620, which gave final form to this permission. This last is now suspended and ordered to cease by a decree of November 23, 1634, without the reason that has inspired it being known, other than the expedients that have been proposed for the destruction of the islands. And this order, forbidding ships to go to Acapulco from Perú, is so menacing to the Filipinas, that it alone may prove sufficient to ruin them. For if no ships go from Perú to Acapulco the islands are exposed to the failure of their succor, in any year when their ships should not arrive—whether because of having been wrecked, or having put back in distress, or having arrived late—since, in such cases, it is usual to supply their lack with the ships of Perú, sending in them [ 166 ] the ordinary aid of men and money. If the latter do not go and the former do not arrive, there will be no vessels for the above-mentioned purpose; and the islands might remain for several years without the succor that sustains them, and with evident danger of being lost.

Number 79. Fourth, point: of the condition of the commerce between the islands and Nueva España

In regard to the fourth point, which is to declare the present condition of the commerce of the islands, it is supposed that although all the orders above mentioned were to their evident injury—restricting their prosperity, if not prognosticating their ruin—that which was permitted to them was sufficient, when enjoyed by their citizens, to preserve the islands, as it has preserved them, although with some decrease. Moreover, the enemy having increased the expenses and obligations of the islands, they needed, when the succor sent from India, and at times that from Nueva España, failed them, new favors and less strict trading permissions, in order not to be ruined as they fear—being exposed to a more continual and dangerous war than any stronghold of this monarchy endures, with resistance equal to the strongest of them, and with danger greater than that of those most harassed, as they have no other aid than what they themselves can supply. Nevertheless, although it seems as if it were advisable, on account of the importance of their conservation, not only to [let them] go beyond the amount permitted, but also to increase still farther that favor, they find it is greatly restricted, and that their commerce is reduced to such condition and mode that it [ 167 ] will be almost impossible for them to enjoy or to continue it. That which should be considered is, that this innovation does not originate as at other times, from Sevilla—which now, undeceived as to the causes that weaken them, knows better—but from the counsels given for action in the matter by Captain Francisco de Vitoria [Victoria— MS. ]. He, with no knowledge of the past or heed of the future, judged only by a hasty conclusion that for the present a sum of money might be obtained where there is none—although from it may result the damage that can be understood, not only to your vassals, but to the whole monarchy, as if there could be distinctions and peril between the vassals and the monarchy that would not be common.

Number 80. Allegations of transgressions of the permissions given for the islands and Perú

As an argument for that course, it is alleged that notable transgressions are committed in regard to the two permissions for Filipinas and Perú. Although this memorial only defends that of the islands, the one is most completely verified by treating likewise of the other; and the illegal acts in both consist rather in the exaggeration with 50 which they are mentioned than in the arguments by which they are proved. Who has ever said, or what possibility can there be, that the two ships which come every year from the islands to Acapulco, whose permitted cargo is of 250,000 pesos (not of 500,000, as is affirmed), carry four millions in merchandise? That, even in pearls and diamonds, seems impossible to be contained in two small vessels; and how much [ 168 ] more so in the goods of so great bulk as those that are carried in them! The schemer tries [to say] that those four millions are worth eight in Nueva España, or even ten for the returns [on investments]; and that that sum goes back to the islands with the 500,000 pesos allowed by the permission, with another 600,000 which is sent as the ordinary aid, granting the net profits at one hundred and fifty per cent, or at the least at one hundred per cent. Were that so, those islands would be most wealthy in one year, for their citizens, as has been said, numbering 230 (counting married and single men), if ten millions entered their possession annually, which would be more than 43,000 pesos for each one, neither Venecia [Venençia— MS. ], Genova, Sevilla, nor Lisboa, nor these four empires together, would equal their wealth. With the same extravagance does the captain talk of the ship that sails annually to [from— MS. ] Perú, [saying that] its permission, which is for 200,000 ducados, extends to three millions of silver that goes unregistered.

Number 81. The violations of law in all commerce, and why they are not remedied

One cannot deny, Sire, that there are illegalities and abuses in all the navigations and commerces in the world, without excepting one; and that, under pretext of the permission and register that goes, which is not permitted and registered. This is known, and is not remedied for two principal reasons. The first is that it is impossible to remedy it, unless a greater damage results from the remedy; for if the bales and boxes were opened in Sevilla, or in other ports of heavy trade, and the articles that [ 169 ] enter and leave were measured, weighed, and counted in detail, the employees there would not suffice, nor six times as many; nor would there be time to despatch one-tenth of the trade. Thus the salaries increasing, because of the greater number of administrators, and the trade being embarrassed by this method, it is evident that the damage caused would be greater than the gain acquired. The other reason is that in imposing the duties of import and export, the customs, the excise, the avería, and other similar duties, care is taken that it is not done with the strictness that is due; and thus they amount to more than it would be convenient [to obtain] if it were paid by measuring, weighing, and counting them all. It is a general decision of all who carry on commerce that, if something be not dispensed with in that direction, the trade and traffic cannot be maintained at all. Accordingly, collection is made on the bales by the packings of the cargoes, by the memoranda of the ships, and by the registers, without making any other moral efforts to ascertain whether more is being carried than is declared—punishing what is discovered, but not discovering the fourth of what is hidden.

Number 82. Tacit permission for what is secreted in the commerce

Many examples might be mentioned which prove this truth. Let the first be the one that was disputed in Sevilla by the exporters of the Indias, namely, that they had not furnished sworn invoices of their cargoes. And although the administrators of the customs insisted upon that, the exporters secured [permission] to furnish, as they are doing, mere lists [ 170 ] [of the goods]. Nevertheless, they do not open the bales or boxes; and, although at times these contain cloths, silks, and fine Holland linen, and other rich stuffs, they pass as coarse linen, 51 in great part, 52 and at most as Rouen linen; and they pay as duties the fourth part of what they would have paid had the bales been opened. Let the second be the existing ordinance that no bale be opened, until it is apparent by information that it carries more or different articles than are stated on the enclosures. That ordinance is observed in all ports of Europa. The third, the custom that has been introduced into Sevilla of imposing on every bale exported to the Indias a certain duty above the amount of the invoice and measure of it that is presented. That can only be justified by the presumption from evidence that the bale carries different goods from what are declared. In the Indias, in the appraisals that are made at Cartagena for the collection of the customs, although it is apparent to the royal officials that the merchants are selling the entire invoices at a profit of ten or twelve per cent over the cost in España, they add to them forty-four per cent of the cost that they [nominally] bear, and then collect ten per cent on the bulk of all. That would be an excessive burden and grievance, if it were not understood as certain that this is charged upon what is shipped registered and what is concealed by substituting some goods for others. Let the fourth be the notable denunciation made in the year 624 by Don Christoval de Balvas, while factor of Tierrafirme, in which he [ 171 ] gave information against seventy exporters and merchants concerned with the one fleet that went that year under command of Don Gaspar de Azevedo Bonal. He ascertained that they had carried and shipped to Perú by the house of Cruzes, located between Puerto Velo and Panamá, besides 1,446,346 pesos which were registered, another 7,597,559 pesos, by which the royal duties were defrauded of 1,370,656 pesos. And when it was feared that for so flagrant a violation of the law there would be an equal punishment, the affair was all settled for 200,000 pesos, besides 6,000 which were given to the informant, whereupon the whole case and matter was relegated to silence; and there was no change in the despatch [of the ships], nor in the registers, nor in anything else of the previous practices. For if the burdens of your vassals are not eased in this manner, so that they can make up their losses, risks, injuries, expenses, and other damages that they suffer in so long voyages and so distressing navigations, everything will be ruined. If that has been experienced in Sevilla, and in the trade of the Indias, the magnitude of which is what is known, and where rigor would be more important than in Acapulco (which can not at all be compared to the other), why, if the greater transgression is overlooked (although there is the same and stronger argument), should not the less be excused, and why should not the islands be treated like all the ports of the world?

Number 83. The illegalities in the two commerces of the islands and Perú cannot be such as are alleged, in the withdrawal of silver.

It follows that it is not to be denied that in the two traffics permitted to Filipinas and Perú the same [ 172 ] illegal acts might be found as in the other parts where there is trade; but it is not conceded that these excesses are so enormous as are represented. Nor are they greater than those in other regions, where, in the shadow of 200,000 ducados of silver, 50,000 go concealed, while in that of 250,000 in merchandise will come another 60,000; and perhaps both one and the other will be so much less that they merit no attention, and never [is the concealed merchandise] so much more that it exceeds the principal. Some arguments can be advanced on this point. The first is that there is no place whence so much silver can be obtained that three millions of it should be sent from Perú to Nueva España, and ten from Nueva España to the Filipinas. For if six millions and upwards come every year from Perú to these kingdoms, one remains in their land, and three go to Acapulco, then their mines yield from ten to eleven millions. Those of Potosi never amount to six, 53 while all the others together do not yield two. Consequently, the supposition that eleven millions are mined is false. That will be better proved by what has come [thence] and what shall come in the [ 173 ] future; for since it is ordered that the ship that was permitted shall not sail from Perú, it will be necessary for three millions more than usual to come from its provinces, since those who trafficked by way of the South Sea cannot let their money remain idle, and must employ it on the Northern Sea. The same consideration ought to hold for Nueva España. Three millions are sent [here] annually from that country, and one-half or one [no— MS. ] million remains there in the country. Let us suppose that ten millions are sent to Filipinas. It is proved that the three millions cannot be sent from Perú; but admitting for the sake of the argument that they can be sent, it follows that it [ i.e. , Nueva España] alone yields another eleven millions from its mines—which is impossible, as is gathered from the royal fifths, and from the facts that in some years ships do not go to Filipinas, and that more silver is not for that reason sent to these kingdoms, as would be necessary.

Number 84. The concealment of silver in the galleons argues for the two permissions

All people say openly and believe that much silver is sent unregistered in the galleons of the royal armada for the trade-route of the Indias, and as its vessels number eight, and sometimes twelve, and it acts as convoy to twenty or thirty other and smaller vessels, the highest figure named by those who exaggerate this excess is one million; but never, by dint of diligent efforts and the experience of so many years, has there been known, found, or discovered one-half million. Therefore, if it can scarcely be supposed with probable foundation that thirty or forty ships, with a registered cargo of nine [ 174 ] or ten millions, carry one million hidden, how can one believe that three millions can go unregistered in only one vessel (and that a small one), and that ten millions can go in two? The fact is, that he who is looking for transgressions does not think that he is accomplishing his purpose unless he increases them. Besides, if three millions are sent from Perú, it is in order to have them returned in investments in the merchandise of Nueva España (all of which are bulky), for those who send their money [there] will not do so for the purpose of having it remain there. And three millions of investments (which will amount to four millions in Perú), in one ship of three hundred toneladas—[why,] there is no one who will even express an opinion that such a ship can be found that can hold so much. Hence, it is inferred that the above sums are imaginary, fantastic, and fabulous, and consequently, [so is] whatever is based on them.

Number 85. Excess in the merchandise, over the amount permitted to the islands, cannot be what is stated.

In regard to the merchandise, the extravagance of the report is also recognized, namely, that what is carried in each of the two ships is worth four millions; for there is not another like sum in all the Filipinas, even though the cities be sold, with whatever possessions are owned by their citizens and inhabitants. And that such an excess is impossible is apparent for many reasons. First, because the opinion [proposed] regulates the merchandise by the silver that it assumes as the returns. Accordingly, on four millions, with a profit of one hundred [ 175 ] and fifty per cent, it gives ten millions of silver; and if there is no foundation in this sum, as is proved, neither is there any in the other. Second, that there is not enough merchandise with which to increase the permitted cargo of the ships, some years, and fewer toneladas are sent than those that are allowed to be distributed. It is improbable that there should be a deficit in the [amount sent by] permission, and yet that outside of it there should be sent four millions, or one, or a half-million unregistered. In regard to that, the islands make now the ninth petition, which will be seen [later]. [ In the margin : “In number 109.”] The third is the controversy in regard to the distribution of the toneladas—of which the citizens complain that some have been taken away from them, and given to those who are not residents. Thus it is ordered, by the general decree of 604, that no toneladas be assigned to the officers, captains, soldiers, sailors, and artillerymen, and that such cannot receive or buy them. A decree of May 29, 620, orders that there be moderation in the toneladas given for their clothing and ship’s stores to the commanders and chief officers. It cannot be believed that those who carry goods would go to law about two or four additional toneladas of allotment, if they were given as many as they wanted. The fourth is very much to the point. In the year 587, while the Englishman Tomas Candi[sh] was sailing through the South Sea to India and the Malucas, he pillaged the ship “Santa Ana” on the coast of Nueva España, which was one of the most rich and valuable ships that has left the islands for Acapulco [Capuico— MS. ] The very report of the Englishman himself says that nothing was concealed, and [ 176 ] that the valuable merchandise that it carried was worth 122,000 pesos 54 of four English sueldos [ sc. : shillings] apiece, besides some bales of so little value that they were left to burn with the ship. And since that commerce was then free and unrestricted, they could carry more than now, when the commerce is reduced to a certain amount permitted. The fifth is almost evident, because this merchandise comes in two ships of 300 toneladas. Suppose that they are of 500 toneladas, and that they do not carry any products of the islands, nor any ship’s stores, or spices, or anything else but silk, of which every six boxes make one tonelada; accordingly, the thousand toneladas of the two ships would mean 6,000 boxes. Each box is worth 1,500 pesos, and therefore all would be worth 900,000 pesos. Now if from this amount supposed be deducted the toneladas occupied by the men, artillery, ammunition, and food, those toneladas that the ships have below 500, and those toneladas which are of other kinds and not of silk (for those containing cotton cloths are estimated to have a value of 100 pesos and less, and usually exceed [in all] 2,000 and at times 4,000), it easily follows how impossible it is to carry four millions in merchandise in these two vessels—if indeed the three and one-half millions do not come in gold, pearls, and diamonds (products of which 20,000 pesos’ value are not brought).

Number 86. Permission for the merchandise of the islands: how it is understood there

The sixth reason is founded on the truth regarding the commerce of the islands, namely, that in regard [ 177 ] to the value of the two hundred and fifty thousand pesos allotted by the permission, the governors have granted favors in two ways. One is by admitting registers of more merchandise than is included in the permission, for certain reasons and motives that they have had, guiding themselves more by the burden of the ships and their toneladas, and by the volume of the goods, than by their intrinsic and real value. That has not been any fault or transgression in the citizens, nor in the government employees—of the former, because they are masters of what is allotted to them, but not of its restriction or its increase; of the latter, because it is clear that they must have had an order or sufficient reason for it—and even if such order or reason were lacking at the beginning, those who have succeeded and have found them in this practice and procedure, have not greatly transgressed in following it. The other method is by allowing the citizens to export more than the amount ordinarily allowed, in the products of their own land, which they get from their harvests or their encomiendas. Such are white and yellow wax, and civet; talingas , manteles , lampotes (which are cotton fabrics); and certain kinds of blankets [ mantas ] from Ilocos, Moro, and Bemben. Of these products, eight hundred piezas (which make one hundred toneladas) are generally sent; and they are declared and appraised at Acapulco, as will be told of the rest. [ In the margin : “In numbers 96 and 97.”] That practice seems to have been introduced on the ground that it was considered probable that the permission was for the Chinese cloth and other foreign stuffs, and not for those peculiar to and native to the islands; these latter were always admitted, and never [ 178 ] needed any permission to carry them to Nueva España—both because of their little value, and because, as will be said, they do no harm to the commerce of España. This is where the excess [over the permission] lies, and not where it is imagined by him who is not conversant with the facts. It is even to be noted that not eight hundred boxes of those products and commodities are always shipped, nor all of them outside the permission—but at times much less than is contained in the per mission, and sometimes very few, are sent; and these are registered and pay the royal duties, as do the others.

Number 87. Imposition of the two per cent, and the reason why it should be repealed

The seventh and last reason is that which is deduced from the imposition of the two per cent which an effort has been made to introduce, on the merchandise of those islands which is exported to Nueva España, and on the silver which is taken to them, by way of avería. It was ordered that this be collected, by the general decree for the permission of 604, and by another of April 22, 608. Governor Don Rodrigo de Bivero tried to execute the first, and Don Juan de Silva the second, and both found so many disadvantages that they suspended it. In the year 625, the royal officials again insisted upon its observance, during the governorship of Don Fernando de Silva, and later during that of Don Juan Niño de Tabora—who, recognizing that the motives that influenced their predecessors were more cogent than before, because of the greater decline in which they found that commerce, the poverty of the inhabitants, [ 179 ] and the loss in their business, conformed to the earlier decisions. Licentiate Don Francisco de Roxas put forth more diligent efforts for the actual collection of the said two per cent, but he learned by positive evidence that that collection would mean the destruction of the trade of the islands. For their citizens were resolved not to export their goods, or to take advantage of the permission, as it was apparent to them that, if they paid this additional two per cent besides the three per cent that they pay and the other three per cent on the Chinese merchandise, with the freights and expenses of the ships, the duties in entering Acapulco, and afterward on the silver when they depart [thence]; and that, if without that two per cent, they are continually losing, with it they will be completely ruined, and will be able neither to advance, nor even to preserve their wealth for their support: therefore, the inhabitants have represented several arguments of not a little force to your Majesty. First, that although it was a fact that the profits made formerly on the Chinese trade were large, they were indeed quite small after the entrance of the Dutch into those seas; for by their plundering the Chinese merchandise its cost has so increased that the profit made on it is indeed very little, and there are so many risks in it that there are some years when the merchants lose everything. Second, Governor Don Juan de Silva, seeing that it was difficult to enforce this imposition, supplied its place by the three per cent duty that he ordered to be collected on the Chinese merchandise, whereupon its price again rose. Third, because the duties paid and the expenses incurred by the commerce of the islands [ 180 ] are very large. For each thousand pesos the citizens there and in Nueva España pay 270 pesos; and on freight, expenses and costs, 280 more—a total of 550 to the thousand. Fourth, since the costs are so heavy, the profits cannot be large, while the perils are enormous; so that it is impossible for the inhabitants to maintain that commerce; and consequently, they will have to abandon it, and the result will be its total loss. Fifth, the visitor, Don Francisco de Roxas, understood this, and contented himself with getting four thousand ducados for that time, as a gift for suspending the execution [of the two per cent]. Sixth, if from the collection of the two per cent would result the sure and certain cessation of the commerce, or its so great decline that it will bring in less with the greater duties than now with the less, it is better to leave it as at present. Seventh, because of the decline into which the commerce has fallen since the Dutch began to frequent the Orient. Eighth, the services performed, past and present, by the inhabitants of those islands, for which they deserve this and greater rewards. These arguments, although more at length, were presented to your Majesty; and you regarded them as so cogent and sufficient that you were pleased to order that the execution of the decrees for the two per cent should be suspended, by another decree of June 13, 636—by which the inhabitants, on account of their shortness of means, should aid the crown with a gift, in accordance with the condition of the country and their funds. [ 181 ]

Number 88. Scanty profits of the commerce of the islands

Two things are inferred from the above. One is the scanty profits of the commerce of the islands, which are so greatly exaggerated by him who is proposing measures for destroying that commerce; for, were its profits half of what is alleged, it cannot be believed that vassals so loyal and so liberal in your Majesty’s service would hesitate so much about paying two per cent, and gaining less, when there is so great experience of the love and good-will with which they offer you their possessions and lives. This was not the only time in which this imposition was considered, since Governor Gomez Perez Das Mariñas imposed an additional two per cent besides what was stipulated in Nueva España, 55 in the year 591, for the building of the walls of Manila; and although it was confirmed by a letter of instructions of January 17, 593, orders were given, on account of the opposition manifested to it by the inhabitants, that that duty cease when the work was finished, by decree of March 12, 597, which was put in force. For it is certain that considering the expenses, the risks, the hardships, the shipwrecks, and the losses of that voyage from China to Manila, and from Manila to Acapulco—so remote, so long, so troublesome, and so full of dangers, in which many ships have been wrecked, and the enemy have pillaged others, and not a few have put back in distress, and have suffered other disasters, as will be related [ In the margin : “In number 93.”]—the profits become very small and the gains so limited. This is recognized [ 182 ] in the amount of wealth possessed by the citizens of those islands at the end of sixty years, which is the best and most evident proof; since if it were not indeed ten million annually, as has been imagined, but only that which is permitted, without any illegal gain, and the profits one hundred per cent net, the islands would be found in a very different condition from what they are in at present.

Number 89. The new resolution incompatible with that for the two per cent

The second thing that is inferred from the proposed resolution for the two per cent is, that it seems to be incompatible with what it is claimed to introduce. For if there were so many difficulties in adding two per cent on the duties of the commerce, and its execution was suspended after forty-five years of dispute and attempt, and the arguments proposed were considered as sufficient for that step, and your Majesty, yielding to those reasons, approved and confirmed them, how can an increase of duties be suffered now, which will cause so great an innovation in the manner and despatch of the commerce, which will result in so increasing the duties that what is being attempted is exceeded by this way, and did not seem advisable by the other? And [how is it] that the reasons and arguments which were sufficient in order not to impose the lesser burden are not sufficient to prevent the imposition of the greater?

Number 90. Argument for the two per cent that was proposed in Nueva España

That disadvantage was indeed set forth in Nueva España, although in a different manner, making an [ 183 ] argument from this imposition of the two per cent to that which results from the present attempt to disturb the commerce. On account of the attempt of Licentiate Don Francisco de Rojas to enforce that collection, the citizens of Filipinas resolved not to export [any goods] in the ships, nor even to avail themselves of the permission; as they believed that they were going to lose instead of gain, notwithstanding the fancied shipments in excess, as will be [if it is not— MS. ] apparent to your Majesty by the reports of the visitor. The latter recognized therein that, if the duties went farther, all those now derived from that navigation would be lost, which, as has been seen, amount to more than three hundred and sixty thousand pesos [ In the margin : “In number 56”]; and it would be necessary to supply them from the royal treasury, or leave the islands exposed to ruin. And they would have been ruined if the commissions borne by Licentiate Don Pedro de Quiroga had been fulfilled, as these were beyond comparison more rigorous and prejudicial to commerce; and the same effect would result to the inhabitants—as it appears, inevitably. For, not being able to suffer the lesser burden, they could ill endure the greater; and the damage would exceed the benefit by many odds, since in the two or three years that it would take to obtain the decision, even though it were as favorable as that regarding the two per cent, either it would have cost your Majesty the loss of the Filipinas, or you would have spent in their conservation almost two millions, without any recompense. And what is worse is, that those vassals would have become so impoverished that, even though the commerce were to be restored afterward to its first condition, the inhabitants could not enjoy or continue [ 184 ] that condition, or get from the commerce in many years what it now produces and contributes; for, the substance and power in which it consists having been consumed, late or never could that be again accumulated. That is an argument worthy of considerable thought and reflection, which those who propose the measures in question do not answer, although they note and consider it, and they only justify those measures—although your Majesty has a right to impose what duty you please, which is the only thing in which there is no doubt. But they do not avert, for they cannot, the damages which must result.

Number 91. The commerce of the islands pays more duties than any other

By these statements it may be seen how groundless is the supposition that the commerce of the islands pays small duties (and it is seen that in this it not only equals but exceeds that of Sevilla, according to the information concerning that); while in all the Indias it is noted as an incontestable fact that in Filipinas the boxes of the permitted lading are not appraised by the cheapest and worst goods, as is done in other ports, but by the best and those of highest quality and value. [ In the margin : “In number 82.”] For since there are among them those goods which will be hereafter mentioned, and since the most noble and esteemed is silk—as if all the other boxes contained nothing else, each one of them, whatever it may be, passes and pays [duties] for one pico of silk, the equivalent of five arrobas; and conformably to its cost at embarcation, according to the investigation that the royal officials make for its [ 185 ] appraisal, the duties are paid and collected. On arriving at Nueva España, they increase its weight by the fourth or third part, and the pico is held to be about six and one-half arrobas of silk. Then another report is made, of the kinds of silk that are received that year; and, distributing it proportionally through them all, the appraisal is made, and the customs duties are collected, higher than in any other port. For the whole cargo is considered to be silk, although there are in it many other articles, inferior in value and quality. Licentiate Don Pedro de Quiroga, as he had reported, had a box of those which pass for six and one-half arrobas weighed, and found that it contained ten—from which three were deducted and discounted for the wood, nails, tarpaulins, ropes, rattans, papers, and other things which have to be placed around the package to strengthen and secure it for so long a voyage. It was found that one arroba or thereabout was exempted, which, compared to the allowance made on what is sent from España, is very little; and even that is compensated by making the valuation by the [standard of the] most valuable commodity, as above stated, although not all the boxes contain silk. Each box, if of silk, is usually worth one thousand five hundred pesos. It pays as first duties and excise two hundred and thirty pesos, while it is a fact that no bale is sent from Sevilla which pays so much as that, even though it be worth four or six thousand pesos. Therefore the proposition that the commerce of the islands pays more duties than that of Sevilla or any other port seems well proved. [ 186 ]

Number 92. The profits [navigations—MS.] of the citizens of Manila do not equal their losses

But if these duties were less, and the profits greater, or even greater than what they are said to be, the city of Manila would not be compensated for the damages and losses suffered there and in its trade, past and present—partly through serving your Majesty, partly by being bound to danger and difficulty by their navigation (which is a circumstance that should be considered, since the same profit on what is sent from Sevilla to the Indias, or on that which goes from Madrid to Toledo, is not sufficient for Filipinas), and partly because of the special disasters that have happened to it from its foundation. These damages and losses have been so excessive that if they were noted in detail with the attention that they merit it would seem not only inevitable that that city, as noble [notable— MS. ] as unfortunate, would be poor and ruined, but impossible that it should not be finished, destroyed, and deserted; and impossible that, struggling against so many disasters as it has suffered, it should still survive with some luster and wealth. Inasmuch as it is the purpose to avoid in this memorial generalities that do not influence or persuade, the mention of the misfortunes that have happened to Manila has two special and necessary ends. One is the presentation of the services, valor, and merits of its citizens; the other is the notable and lamentable recompense for the profits of its commerce and navigation, since it was necessary that the profits be much greater, to offset thereby the losses and expenses. Their evil will be mentioned by years. Many which are yet unknown, or which are minor, will not be mentioned; and it will be seen [ 187 ] whether that city deserves to be protected, its inhabitants rewarded, its commerce aided, and its petitions decided in the most favorable manner that the matters and cases proposed will permit.

Number 93. Misfortunes, losses, and damages that have been suffered by the city of Manila and its inhabitants.

The Spanish government was established in the distinguished and very loyal city of Manila, as capital of all the islands of those seas, in the year 1572.

In the year 575, the pirate Limahon, a Chinese, attacked it with a fleet of seventy large warships. Finding it in so incipient condition, and poorly fortified, he entered and sacked it. The Spaniards defended it rather by valor than by number, in a small fort that they had built.

In the year 578, while Guido de Labacarris was governor, the ship “San Juanillo” sailed for Nueva España, in command of Captain de Ribera, in which it was thought to recover the loss inflicted by the pirate; but the loss became greater, for that ship was lost, and it was never known how or where.

In the year 580, Captain Don Juan Ronquillo del Castillo sailed for Nueva España, in a ship that carried no small cargo. After having sailed for many days, and having found himself in the neighborhood of Nueva Guinea, he put back in distress in a very bad condition. In this it is to be noted that among the losses which Manila feels keenly, is that the ships of their commerce have to put back in distress; for in that year besides failing to obtain the profits of what they invest, and the investment of what is sent in return, they lose most of the principal, which they [ 188 ] export—not only in averias, but in the costs and expenses.

In the year 581, Governor Don Juan Ronquillo de Peñalosa imposed a duty of two per cent on the merchandise exported to Nueva España, and three per cent on that carried by the Chinese to Manila. Although he was censured for having imposed those duties without having any order for it, they remained.

That year a fleet sailed from Manila, in command of Don Juan Ronquillo, to succor Maluco and protect the Portuguese who were then in possession of those islands; but after the cost, expense, and expedition, in which many of the inhabitants took part, it had no effect.

In the year 583, on February 27, while the funeral honors of the governor were in progress, fire caught in the church of St. Augustine; and as the edifices of that time were of wood, all of the city was burned and made desolate, and not a thing was saved—not even the fort, in which almost all the possessions of the citizens were lost—while some people met death. That was one of the greatest losses that that city has suffered.

That year, building was recommenced; and, in order to avoid a similar damage, it was determined that all the houses should be built of stone. That caused the inhabitants the expense that one may understand, and the city became one of the most beautiful that can be seen.

In the year 584, Captain Pedro Sarmiento went to Maluco with reënforcements, with another fleet, which had the same expense and effect as the first. [ 189 ]

In the year 585, another fleet sailed in command of Captain Juan de Moron, from which, as from the others, Manila derived nothing else than having incurred the expense.

That year, an insurrection that the natives of the country were attempting was discovered. It was quieted with some damage, although less than it might have been.

In the year 587, the Englishman, Tomas Candi[sh] besieged Nueva España, and pillaged and burned the ship “Santa Ana,” which was en route to Acapulco very richly laden.

In the year 588, the same pirate tried to burn a ship in the shipyard of the islands of Pintados. He was resisted by Manuel Lorenzo de Lemos, who was in charge of its building. Some men were killed in this affair, and all the men of the islands were placed under arms.

In the year 590 the royal Audiencia of Manila was suppressed. It had been established in the year 584, [ sic ] and its suppression must also be reckoned among the hardships of that city, because of those which it suffered until the year 597, when the Audiencia was reëstablished.

In the year 591, the commerce of Japon—which was of great advantage, because of the provision of food which was taken thence to Manila—began to be disturbed. That was occasioned by the barbarian emperor Taycocama trying to make the governor of Filipinas pay him vassalage and tribute. That peril lasted as long as the life of the emperor. The islands suffered from it, not only because of the lack of those friendly relations, but because it was necessary to [ 190 ] place themselves in a state of defense against the tyrant, who was threatening them with his fleets.

In the year 593, the two ships “San Felipe” and “San Francisco” sailed for Acapulco. They put back in distress, one at Manila, and the other at the island of Zebre [Zienbre— MS. ], very much crippled and wrecked.

That year was even more unfortunate. For Governor Gomez Perez Das Mariñas sailing for the conquest of Terrenate with nine hundred Spaniards and more than two hundred boats (reckoning galliots, galleys, fragatas, virreys, and other craft), and arriving at the island of Caça, the Chinese who were taken as rowers in the flagship galley mutinied, and killed the governor and forty Spaniards who were with him. Thereupon, the expedition ceased, and the expenses incurred by the citizens for it, as most of them had embarked in it, were lost.

In the year 596, the galleon “San Felipe,” one of the trading ships, under command of Don Matias de Landecho, made port in distress at Japon, where it was wrecked. Those pagans seized the goods aboard the ship, and martyred some of the Spaniards, together with the religious and natives. The Church has placed the latter in the list of the holy martyrs.

In the year 598, Don Luis Das Mariñas left for the expedition to Camboxa with two ships and one galliot, and two hundred Spaniards. After many misfortunes he put in at China, where his vessels were wrecked and beached, some of the men being saved.

In the year 600, two ships under command of Juan Martinez de Guillestigui sailed for Acapulco. Both put back and were lost—the ship “Santa Margarita” [ 191 ] at the islands of the Ladrones. The natives entered it in the island of Zarpana, as it was almost destitute of men, and pillaged all its cargo; and the men who were saved remained there some years. The ship “San Geronimo” put in at the island of Catanduanes, where it was wrecked although the men escaped.

That year the Englishman [ sic ] Oliverio de Noort came in sight of Manila with war vessels, in order to await those ships which were expected from Nueva España. Therefore it was judged advisable to drive him away. Doctor Antonio de Morga, auditor and lieutenant-general of Governor Don Francisco Tello, sailed to attack him. He took one moderate-sized ship, another of less size, one patache, and one galliot, with one hundred Spaniards in each boat. He attacked the pirate, and the flagship, having been conquered, was set afire. Thereupon that of España cast off its grappling-irons, but was so hardly used that it immediately sank. Some of the men escaped in the small boat, and Doctor Morga reached an island by swimming; while the ship was lost, with the rest of the soldiers. The other ship conquered the English almiranta, and took it to Manila. It was an important capture, but very costly.

In the year 601, the galleon “Santo Tomas” en route from Nueva España, under command of Licentiate Don Antonio de Ribera Maldonado (who had been appointed to the post of auditor), having been blown by a storm to the Embocadero of Capul and the bay of Catamban, was driven ashore and was wrecked. However, the men and most of the cargo were saved. The latter was taken to Manila overland and by sea, a distance of eighty leguas. [ 192 ]

In the year 602, Captain Juan Xuarez Gallinato went out in a fleet to attack the Mindanaos, who were infesting the coast of Manila. Although he inflicted some punishment upon them, the cost was greater than the remedy.

That year the ship “Espiritu Santo,” en route to Acapulco, after it had cast out all its cargo because of the gales that it encountered, put in at Japon, where it was in danger of receiving the same treatment as had been given to the ship “San Felipe.” It was saved from that by the watchfulness of Don Lope de Ulloa y Lemos, its commander. The ship “Jesus Maria,” with a like loss, put in at the islands of the Ladrones; and, at the end of five months of navigation, both ships returned to Manila, almost without crew and without cargo.

In the year 603, on the eve of St. Philip and St. James, some houses caught fire; and although many of the edifices were now of stone, the fire leaped to others which were built of wood, and so many were burned that the loss was estimated at more than one million.

That year was one of misfortunes for Manila. The Mindanaos sailed out on a marauding expedition, and went in sight of Manila, pillaging and burning some villages, and taking some Spaniards captive. It was necessary to send a fleet against them, under command of Gaspar Perez, who made them retire.

That year, on the fourth of October, occurred the dangerous uprising of twenty thousand Chinese, who lived in the environs of Manila. Although they were conquered and punished after two months of war, it was at a great loss to the country and to the Spaniards. [ 193 ] In the first onset one hundred and fifty of the best Spaniards were killed, almost all citizens, although there were not more than seven hundred citizens. The island was desolated and destroyed for more than twenty leguas round about the city, which was in danger of being lost. The inhabitants who were left had to sally out, and, pursuing the enemy, finally conquered and made an end of them.

That year, of the two ships that sailed according to the permission, die flagship “Nuestra Señora de los Remedios,” after having cast out a great part of its cargo, and having lost its masts, put in at Manila; while the “San Antonio,” most richly laden, and with many people who, in order to escape the hardships of that city, were going to Nueva España, suffered a greater hardship—for it was swallowed up by the sea, and no one heard what became of it.

In the year 604 was despatched the general decree granting the permission to the islands, which restricted the commerce with Nueva España, as has been declared.

In the year 606, Governor Don Pedro de Acuña made the Maluco expedition, which, although it had a good outcome, was very costly for the citizens of Manila, most of whom took part in it. He took five galleons, four galleys with poop-lanterns, three galliots, four champans, three fustas, two lanchas, two brigantines, one flat-bottomed boat, and thirteen fragatas with high freeboard. He had one thousand three hundred Spaniards serving for pay, besides the volunteers and inhabitants, who were numerous. All incurred the expense that can be imagined in the expedition, without deriving other advantage than their service as loyal vassals. [ 194 ]

That year, while the governor was in Maluco with all the force of the islands, the Japanese revolted in Manila, and the country arose in arms and was in great danger; but, after they had done some damage and caused much, they were subdued.

In the year 608, two ships sailed for Acapulco, under command of Juan Tello de Aguirre, and the flagship was wrecked in the Embocadero of Capul, one hundred leguas from Manila.

In the year 609, three ships sailed under command of Juan Ezquerra. The flagship “San Francisco” was wrecked in Japon, and the ship “Santa Ana,” which went to Nueva España the following year, put in at the same island.

In the year 610, of the two ships that sailed in accordance with the permission, the almiranta returned to put in at Filipinas.

That year Governor Don Juan de Silva sailed with five ships and three galleys to attack four Dutch ships and one patache which had been before Manila for six months, pillaging all the vessels that entered and left, and holding the city almost besieged. He found only three of the ships, burned one, and captured the two others with a loss of many men; for those expeditions, although their outcome is favorable, are always a source of loss to the inhabitants, because of the many who are killed, and because of the expenses incurred in them.

In the year 611, the governor built another fleet, with which he entered Maluco—but without accomplishing more than the cost, which was heavy; and little was the reputation with which he returned.

In the following year, 612, there was nothing with [ 195 ] which to make the despatch of the ships to Nueva España, because of the losses and expeditions above mentioned, and an advice patache alone was sent.

In the year 614, two or three ships from Olanda burned and sacked the town of Arevalo [Arrebalo— MS. ] with all its [surrounding] country.

In the year 616, Governor Don Juan de Silva made the disastrous expedition to Malaca with all the force of the islands, of which mention has been made. He died there, and lost on that occasion all the sum that had been spent, which was so vast that it is affirmed that a million was left owing to Spaniards and Indians. To the extortions that were practiced for this, some attribute the ill-success of the expedition.

That year, while Don Juan de Silva was away with the fleet, the Mindanaos came with sixty caracoas, and burned a ship and two pataches which were being built in the province of Camarines, and pillaged the land, seizing and capturing many people.

That year the trading ships, under command of Don Francisco de la Serna, put back. Fearful of the enemy, one discharged its cargo twenty leguas from Manila, and carried the goods overland. The other went to the island of Cibuyan.

In the year 617, occurred the battle of Playa Honda, which was fought by the commander Don Juan Ronquillo, with seven ships and three galleys pitted against six of the Dutch. He sank the flagship, and one other ship, and another was burned. Of the Spanish ships, the galleon “San Marcos” was run aground and wrecked, as above stated. [ In the margin : “In number 31.”] [ 196 ]

That year two ships sailed to Nueva España, under command of Juan Pardo de Losada, and both of them put back.

In the year 618, advice was received in España of the straitened condition in which the islands were, through so many disasters, losses, and foes; and it was determined to send them a goodly reënforcement by way of East India. The commander, Don Lorenço de Zuaçola, was given one thousand seven hundred soldiers with six huge ships, and two pataches, manned by seven hundred and thirty-two seamen and thirty religious. The fleet left Cadiz, and after sailing twelve days was, on December 26, 619 [ sic ], struck by so fierce a gale that the flagship and almiranta, besides three other large ships, were lost. The ship which was left, with the two battered pataches, 56 returned to España. Thus deprived of the greatest reënforcement that has ever been sent to the islands, and when there was most need of it, the islands were greatly afflicted by that loss; but it was supplied by the valor of their inhabitants, who maintained themselves with their usual reputation at the risk of their lives, at the cost of their possessions, and in spite of their enemies.

In the year 620, of the two ships that sailed under command of Don Fernando Centeno, the flagship was lost, thirty leguas from Manila, through the fault of the pilot, whom they hanged there, while the almiranta put back to Manila.

In the year 625, Governor Don Geronimo de Silva made an expedition, taking for it five galleons (two of which were of 1,400 toneladas), one patache, and two galleys. There were 2,269 soldiers, 152 [ 197 ] pieces of artillery, and five champans, with food and ammunition in as great abundance as if they had sailed from Sevilla to Lisboa.

In the year 631, the ship “Santa Maria Madalena,” while already laden with its cargo in the port of Cavite, and about to sail, went to the bottom—drowning fourteen persons, and losing all the cargo aboard it, as it remained a fortnight under the water. The ship “Santa Margarita,” which was left alone, sailed out, but put back with the losses of other times.

In the year 634, the trade of the Filipinas with Japon was suppressed by the efforts of the Dutch. That was a great loss, and it is not known that it has been revived.

In the year 635, as the city of Manila was so ruined and poor, it had no wealth with which to lade the ships of their permission, and hence the ships did not sail to Nueva España.

These are the chief instances of which our knowledge can make relation, and in which Manila and the islands have suffered misfortunes; and those disasters have been so many that of all the sixty-five years since its foundation only fifteen are free from loss and disaster; and some of those disasters are so great that the prosperity of other years was unable to make up for them. From all of them can easily be inferred the proof of the two propositions—namely, the services of their citizens, and the small profits in their commerce, if, as the former are qualified by valor, the latter are proportioned to the losses, risks, and hardships that they endure in order to maintain it. [ 198 ]

Number 94. Fifth point: in which is explained the commerce of the islands, according to its parts

For the last justification and the final point, this commerce of the islands with Nueva España will be explained. It has two parts, one the coming with the merchandise, and the other the return voyage with the returns [from the merchandise] in silver. Regarding both will be stated what profits they produce, and whether it will be advisable to suppress or restrict the commerce, or how illegal acts can be prevented.

Number 95. Trade of the islands necessary in Nueva España, because of their goods

In regard to the first part, which pertains 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 , 57 plushes, and other silk stuffs and textiles. Of cotton, there are sinavafas , 58 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 [ 199 ] 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 59 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 [ 200 ] get along with their own cloths from Campeche or La Guasteca, and others that they weave. Hence the importation of these linens (which are brought from China) is now proposed as an expedient measure; if that be administered at the account of the royal treasury, it would gain annually more than one hundred and twenty thousand pesos, as is apparent from a decree of November 20, 606.

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 [ 201 ] 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. 60 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.

Number 97. Damage caused to the [sale of] Spanish silks by those of China

The second and first classes of goods are those which may cause more damage, because they come in conflict with those same commodities that are exported from España. Since the latter are dearer, and the former cheaper, while the people are increasing daily, and the wealth decreasing, necessarily they desire the goods that have the more moderate price, even though it is not of the same quality. But this damage, which is the only one, is [ 202 ] not such as is imagined. First, because the prohibition of sending textiles to Perú causes a much smaller quantity to go to Acapulco than formerly. Second, because on account of the danger from the piracies of the Dutch, few silks are shipped from China to Manila, and those cost so dear that it is not the product in which there is greatest profit; nor can so much be bought, since he who formerly bought two or three boxes with one thousand pesos, now buys one. Thus the merchants make the bulk [of their exportations] in cotton linens, and in the products of the islands. Third, because Nueva España is now so full of Spaniards, and they have so little money, that one can understand of them in regard to the silks, what has been said of the Indians in regard to the cotton textiles—namely, that if they find those of China, they use them, and if not, they get along without them. Where this is most true, and where it ought to be considered, is in the mines—where the aviadors 61 do not and cannot use the cloth from Castilla because of its quality and value; but that of China, as it is cheaper and more durable and serviceable. Consequently, with one thousand pesos’ worth of it they maintained their mining operations longer than they could with five thousand worth of that from España. From that it follows that if [the supply of] it were to fail, the mines would necessarily decrease; and that would redound to the greater damage of the royal treasury, and to that of the country, your vassals, and commerce, than what is suffered today, even though what is stated be considered as accurate and true. If there [ 203 ] was an over-supply of textiles when there were fewer people, and now much less rather than more is imported, and there are more consumers, there can be but little resulting damage to the goods that are carried hence. Fourth, because the silk in skeins, as already said, is what is consumed; and, if it should fail, more than fourteen thousand persons who are employed and supported by its manufacture would perish. [ In the margin : “In number 96.”] Fifth, because this [export from España] is already very little, since a great quantity of the silk used by the looms of Granada and Toledo was formerly taken to Sevilla; but, since the year 618, that has been decreasing so much that the workmen of that trade, through lack of silk with which to work, have gone to Nueva España. The cause that lies at the root of this injury is found in the navigation from China to Manila, in which passage the silk is plundered by the Dutch; they carry it to their country, and send it to Castilla by the hands of third persons, and sell it at a great profit. It would be better to have it carried, as formerly, from Manila by way of Mexico, the vassals of this crown thus gaining the profit that its enemies gain. This is a matter of no slight importance, and one which has been advanced as a measure for securing a gain of one-half million for the income of the royal treasury—as appears from a decree of February 16, 602, which was sent to Filipinas; and from the memorials furnished in the year 621 by Oracio Levanto, who tried to make a contract for it. [ 204 ]

[XCVIII.—Ex. his.] The damage caused by the silver that is sent to the islands is not at the charge of their inhabitants.

Fourth, in regard to the second point, which concerns the silver that is carried from Nueva España, it is not denied that it may be damaging and prejudicial to bleed that kingdom on that side; but it is denied that the excess in this is that which is alleged—as has been proved. [ In the margin : “In number 83.”] And if this be conceded, it ought to be noted that this commerce was granted in favor of the citizens of the islands, and not of others; and since most of them are poor, and cannot maintain a commerce of such value as those of Nueva España wish, the residents of Mexico have entered and gained control of a great part of the commerce, under [cover of] the permission granted to the citizens of Manila, and aided by certain persons. The violations of law have resulted from that; for, as the Mexican exporters make those consignments and carry the returns for them—in violation of the royal decrees, and in opposition to the inhabitants of Manila—they are hidden and kept not only from your Majesty’s employees (or they endeavor to keep these under obligations, so that they will not denounce them), but from the citizens of the islands, who are not guilty in that. On the contrary, the inhabitants desire and endeavor to obtain a remedy for this, because of the damage that it causes them, not only in usurping their permission from them (as it has in fact been usurped, by good or evil means), but because, if more silver than what their inhabitants carry goes in the Filipinas ships, as that which exceeds [the permission], [ 205 ] it belongs to the exporters of Mexico. Such money is sent for investment, and to be returned on the first voyage, and those who have it in charge try to buy on their arrival; and to shorten the time of their return, they will force prices in that place so high, that what is bought from the Chinese for one hundred will immediately advance to two hundred. Since the inhabitants have scanty means and considerable expense, in order that they may therewith support themselves their profits must be great; but on account of such proceedings their profits come to amount to nothing, and they become ruined. Consequently, the whole profit is made by the inhabitants of Mexico; and, as they have more money, and are not burdened with the obligations of the islands—their expeditions, wars, and reënforcements—their profits, although smaller, are larger for their commerce than for that of the citizens of Manila; the latter lose, not only in the purchase, for the Mexicans increase the prices of the merchandise, but afterward in the sale which they make in Nueva España. There they are compelled to sell more cheaply, in order to return immediately, or to take silver at high interest—which is not done by the inhabitants of Mexico; for they remain in their houses and sell as they choose; for they sell slowly, and by that means make up the excess of the price in Manila. The citizens of the latter place cannot enjoy that advantage, and hence return ruined, or with so little profits from so long voyages that, at the end, they scarcely realize the principal with which they commenced. Besides, as the greater part of their possessions are those on which the duties are paid, as they come registered, while the others are concealed and unregistered, [ 206 ] by that fact also their costs increase and their profits are diminished.

Number 99. Intention of the inhabitants of the islands in regard to the excesses of the commerce

Therefore it is to be noted that it is not, and cannot be, the intention of the inhabitants of the islands to have the illegal acts that shall have been committed in that commerce remain unpunished, or that liberty be given for the continuance of these and the commission of greater transgressions. They are honest in this, as they ought to be in obeying and observing the royal orders and mandates, which they reverence and respect with so much more obedience, love, and good-will, as the distance which separates them [from España] is greater, and it is more difficult for their great services (for they are great) to be seen and valued, and for them to obtain the rewards and favors which they deserve. What they solicit with the humility of vassals of so Catholic a monarch, and represent under the arguments of expedients and good government which they propose (subject in everything, to what should be of greatest service to your Majesty), is, that the past be punished in such manner that the penalty be not equal for those who have not been equally guilty—and if any have been, it was rather because they have been carried away by their need and hardships than for the sake of the profit of their business; since whatever they have acquired in their business (which, according to the wealth that they possess, is known to be little), has been spent and intended to be spent in your Majesty’s service, in ministering to and maintaining those islands, at the cost of their blood [ 207 ] and possessions. They ask that, at present, attention be given to what is hidden and concealed; and that this be corrected and reduced to the amount that is permitted and ordered, without the inhabitants being proceeded against or punished for what they have done through ignorance, until it shall be known in the islands what they ought to do, and new orders issued. For the future they petition that the increase of duties on the goods within the permission be avoided, whether it be silver or merchandise; that there be no innovation in the appraisals of it; that their boxes be not opened or appraised in a different manner from that which has been observed, followed, and kept—since, as has been seen, they pay more than they are able, although not as much as they owe. [ In the margin : “In number 91.”]

Number 100. Summary of what is alleged in this memorial

Therefore they once more represent to your Majesty what is contained in greater detail in this memorial. The charges made against their commerce, inasmuch as these were based on malicious reports and on less knowledge than was required by the matter, have disturbed, changed, and altered it, so that it is in danger of being lost or suspended (which amounts to the same thing), and with it all the Filipinas, whose importance is so well known. That can be understood from the strong arguments advanced for not abandoning them when they were less necessary than now, when the fact of that importance has been established by so decisive a resolution. To this can serve as new motives the extraordinary manner of their discovery; the greatness [ 208 ] of their territory, and therein the notable and especial greatness of the city of Manila—which, as the mistress of so many seas, and capital of so many archipelagos, is the second pole of this monarchy; and the estimation in which their qualities are held, both for the nature of their lands and from what has been acquired from their commerces, which, if they are small as regards their own products, [in their beginnings— MS. ] are most opulent as regards those of foreign lands. That is facilitated by their remarkable situation, which, as it is the center of so many islands and powerful kingdoms, is, if not in advance of all of them, superior to many, as it is the key of the ancient and ever rich commerce of the Orient. That commerce, after so many changes, came into the possession of Portugal, and through the Filipinas was communicated to Castilla. It has been usurped in part by the enemies of this crown (who now go to search for it, and carry it on in various ports of its origin), against whom India and the islands are defending and maintaining it. The islands especially protect the commerce of China and that in cloves, as they are now lords of the islands of Maluco—which they recovered after they had been lost, and which they preserve, although infested [by enemies], at the cost of the blood and the possessions of their inhabitants. They are exposed always to the raids of powerful opponents, who in order not to lose what they have had the good fortune to acquire, the Oriental trade and that of Maluco (which is of the greatest value), spend the most of what they gain in forts, presidios, and fleets, that they may resist the Filipinas. If the islands [ 209 ] are important for that reason, not less important are they for the effects that result from their preservation. These effects are the promulgation of the Catholic faith, and the extension of the gospel preaching through so extensive regions, and so remote kingdoms of pagans and Moors—which in spite of the northern heresy, has been received by some, while others are ready to receive it; the assurance of safety for India, which has doubled its strength because of the nearness of the islands, which on all occasions reënforce it; the prevention and hindrance of the enemies from the trade in which they most wish to be absolute masters, and which they would obtain were it not for that valiant resistance, and that fortified camp; the relief of the Western Indias from their raids, which because of this diversion have rest; and finally, the maintenance of the reputation of this crown, in the most remote part of its domain. And since, in order to obtain these and other effects, it is sufficient that the Filipinas be maintained in the force and renown that they have at present, for that only two methods are to be found, which consist either in spending from the royal treasury the amount necessary for them, or in giving them a commerce such that all the cost of the islands may be derived from it. Each method is impossible alone, for the expense of the islands is considerable, and the amount that they contribute is not sufficient, as those of Maluco are dependent on them, while the royal treasury is exhausted. The commerce ought not to be opened so widely that its duties supply all [the cost of the islands], because of the injury that this would cause to the commerce [ 210 ] of España, which is more important. The only remedy comes to be (and it is that admitted by experience) the union of both these means, each sharing a portion of the expense. With this the royal treasury will be relieved, the commerce permitted, and the islands maintained. In order to provide a guarantee for this obligation, it is advisable to favor the inhabitants of the islands, who have attended and are attending to their defense (as that is the chief part of their preservation) with so abundant aid and so liberal expense. For this, taking a middle course between the damages and the advantages, the restricted commerce with Nueva España, without which they cannot live, is permitted to them. And although results from that concession the withdrawal of a quantity of silver (which if it came to these kingdoms could enrich them more), and its passage to the foreigners, besides the bringing of merchandise from which results a less consumption of the goods of these kingdoms: as this is not the only cause that weakens the trade of the Indias, but there are others very different from it, it is necessary, in order that that trade be not ruined, that this of Filipinas be preserved, but not more than in the quantity that is sufficient for its maintenance, and that is not harmful. Thus has the commerce been given its present form, conceding it alone to the inhabitants of the islands, restricted as to the amount of its merchandise and the silver for its returns, by imposing on both the latter and the former a fixed and determined quantity, as also on the ships which are to carry it. That is the condition least damaging to each part which, attentive to the [ 211 ] state of so many kingdoms and the mutual relations of so many provinces, it has been possible to arrange. Although great illegalities have been ascribed to this permission, which are not lacking in any part of the world, and are found in all commerces, and are tolerated—either because it is impossible to correct them, or because it is not advisable to reduce them to the full rigor of the orders—those that are found in this commerce are not greater than those of others; for 62 neither the silver nor the merchandise which is hidden can exceed the amount permitted so greatly as has been represented, as has been [herein] stated. If there is any violation, there are sufficient precedents so that it ought to be tolerated, and the greatest reason [for so doing]; for it is impossible for that commerce to last in any other way, or to have capital with which to maintain it. [This is true], not only because of the duties that are paid, which are heavier than those of Sevilla; but because of the great amount that is lost in it by the risks, expenses, and hardships of its navigation, and by the special disasters that the islands and their inhabitants have suffered, and are liable to suffer—which are such and so many, that it is a wonder that they are not destroyed, ruined, and deserted by the onset of their disasters, losses, and diminutions, which it seems that the loyalty, the valor, and the constancy of their inhabitants have opposed. Besides that, their commerce is no longer what it was formerly; nor does it cause the damage that is noted; nor is it such that it can be done away with, without the downfall of the islands, the suffering of Nueva España, peril to [ 212 ] Eastern India, the loss of its commerce, a greater infesting of the Western Indias, and the sorrow of these and those kingdoms for the result of this cause, as it is common to them all, as is proved. Therefore, the procurator-general of the islands, reducing all their affairs to this memorial, petitions your Majesty to grant them favor in the affairs and points which he will request in a separate memorial.

Don Juan Grau y Monfalcon [ 213 ]

[Point 1]

Book 7, folio 284, verso. In regard to the first point, I presuppose that, as appears from the certification of the government notary of those islands, there is not in it the particular reason of an order from his Majesty for the governor of the islands to appoint an auditor of accounts, as all the governors have done for many years past. What appears is, that in years preceding that of 1595 (although it does not appear when this practice was first inaugurated), the governor made an annual appointment of an auditor of accounts, in order that he might audit the general account of the royal officials for the preceding year—as is mentioned by the governor [ 229 ] Don Luis Perez Dasmariñas in the first perpetual title that he gave as auditor of accounts, in the year 595, to Bartolome de Renteria, who was the first to whom it was given with this title. The governor says the following in regard to it:

“Inasmuch as his Majesty has ordered the governor of these islands to audit the account of the royal official judges of the islands annually, by means of an auditor of accounts who should be appointed for that purpose, and to send each year the report that he should make to his Majesty, as has been done; and inasmuch as I am informed of, and see, the disadvantages and dangers that result to the royal estate of having the governors appoint, as is their custom, a new auditor [ contador ] for the said accounts each year, in order to give him that profit that is due him for other services: there is no one in that calling as competent as is necessary. Thence it results that the said accounts are not audited with the clearness and completeness that is advisable, or in the good order and style in which an expert auditor would leave them, and who would learn by experience and by special acquaintance from the times when he should have audited them before, or by his knowledge through the condition of other accounts that he might have audited, the condition of the royal estate. Such a person will try to understand the royal treasury thoroughly, while he who audits the accounts once will do it more carelessly. All that carelessness would cease, as would many other disadvantages which experience has shown; and we could achieve the results that are desirable for the service of his Majesty by appointing an auditor to audit the [ 230 ] accounts every year, without changing or removing him for another, but allowing him to hold the said office continuously.”

The title continues with the appointment of the said Bartolome de Renteria as auditor of accounts, as long as it may be the will of his Majesty and of the said governor in his royal name; and orders that the uncertainties, additions, and results [ resultas ] that shall arise be communicated to the said governor, so that they may be concluded and executed with his decision. The title assigns him a salary of five hundred pesos of common gold, payable from the royal treasury.

Book 7, folio 235. His Majesty despatched a royal decree in the year 596, ordering the establishment of the Audiencia of the said islands. In that provision were inserted the ordinances pertaining to this point, namely, the sixty-seventh, the sixty-ninth, and the ninetieth. 1 They read as follows:

“Ordinance 67. Item : My president shall, together with two auditors [ oidores ], audit the accounts, at the beginning of each year, of the royal officials who shall have had charge of my royal treasury for the past year. They shall conclude it within the months of January and February; and when they are completed, a copy of them shall be sent to my Council of the Indias. I order that if the said two months pass, without the said accounts [ 231 ] being completed, the officials of my royal treasury shall receive no salary until they shall be concluded. Each of the auditors who shall be present at the auditing of the said accounts shall have a gratification of twenty-five thousand maravedis, provided that that salary or gratification be not given them—and it shall not be given them—except for the year for which they shall send the said accounts concluded to my royal Council of the Indias.”

“Ordinance 69. Item : I order that when my president and auditors commence to audit the accounts of my royal estate, in accordance with the provision in regard to it, they shall go first of all to my royal treasury, and weigh and count the gold and silver and the other things that may be there, and take account of it [ In the margin: “Sic.” ]. Then they shall begin the accounts, and, having finished them, shall collect the balance within the time ordered by the said decree. [ In the margin : “I do not find any account, in the records of the visit, of this provision which is cited.”] The amount collected shall be placed in the chest with three keys; and orders shall be given that the balance from the past year shall not be made up from what shall be collected during the time in which the accounts shall be audited.”

“Ordinance 90. Item : The said fiscal shall be at all the meetings which shall be held outside the ordinary Audiencia by the president and auditors, whether of justice or pertaining to my royal estate, with the officials of it, either for matters of government, or in any other manner.”

Book 7, folio 239. In a royal decree of January [ 232 ] 25, 605, directed to the royal officials of the said islands with the ordinances of their offices, the two following touch on this matter:

“Ordinance 29. The accounts that you shall be obliged to give of what is in your charge during the administration of your offices, shall be given annually in the accustomed manner. For that purpose, you shall deliver as an inventory to the person who shall audit them, all the books and vouchers pertaining to them, and those that shall be requested from you, and that shall be necessary for the clear understanding of the accounts. You shall continue the administration of your offices with other similar and new books. The accounts shall be balanced in the presence of my governor, and of an auditor of my royal Audiencia who shall be appointed by the governor and the fiscal of the Audiencia. Should any doubts and additions result from the said accounts, the said my governor and auditor shall adjust and decide them, so that they may be balanced and completed.” 2

“Ordinance 42. You shall send annually the final account of the receipts and expenditures of my royal estate, declaring the same in its distinct heads. In case that an auditor of accounts appointed by the said my governor shall audit your accounts, he shall be obliged to have them made out in accordance with the aforesaid, for the said end.”

Book 7, folio 2. August 24 of the same year 605, his Majesty despatched a royal decree, ordering three tribunals of the exchequer to be established in [ 233 ] the three cities of Lima, Santa Fe [de Bogota], and Mexico, so that the accounts of all the provinces of their [respective] districts might be audited in each one. Its beginning is as follows:

“Don Felipe, etc.: Inasmuch as the accounts of the income and duties that belong to us and which we are to receive in our kingdoms and provinces of our Western Indias, as king and seignior of them, have been and are audited by the persons who have been and are appointed for it by our viceroys and presidents of the audiencias of the said our Indias, and by the corregidors and governors of some districts of them, who have been and are appointed for it; and inasmuch as they are sent to our royal Council of the Indias, so that they may be reviewed and examined therein; and inasmuch as the persons who audit the said accounts do not possess the skill and experience that is required for such an employment, and the accounts, as they are not furnished every year, do not show the accuracy, clearness, and distinctness that is necessary—whence have resulted many disadvantages and losses to our royal estate, as has been shown by experience: in order that such may cease now and henceforth, and the necessary precaution be exercised in everything, we have decided, after conference, examination, and discussion of the matter in our royal Council of the Indias, and in other meetings of ministers of great intelligence and long experience, that there shall be, and shall be established tribunals of the auditors of accounts who live and reside ordinarily in the said our province, so that they may audit the accounts of whatever pertains to us in any way, or that may pertain in the future to all or any persons into whose possession has [ 234 ] entered or shall enter any of our possessions, of which they must and shall inform us. In order that this may be done as is fitting to our service, we have decided, and we will and command, that the following order and form be kept and observed.”

The said decree proceeds, by ordering in its first section that the said three tribunals be founded, in each of which there shall be three auditors [ contadores ], who are to be called and styled “auditors of accounts.” They shall attend to their business by virtue of letters and warrants sealed with the royal seal. Each tribunal shall also have two officers known as “arrangers of accounts” [ ordenadores de cuentas ] and other things that pertain to this. The following declaration occurs in section twenty-two:

“Furthermore, the said our auditors of accounts shall audit and conclude the final account of the said our royal officials and treasury of the said our Yndias for the preceding year, in the year immediately following, without protracting or extending it under any considerations—except that of our royal officials of the province of Chile, and of the persons into whose possession enters the money which we order to be supplied from Piru for the expenses that must be incurred there; and that of the Filipinas Islands, which, as they are so remote and out of the way, must be audited every two years. All the said our officials of the said our royal treasuries in the said our Western Yndias shall be obliged to go, or to send persons with their powers of attorney and adequate documents, to render their accounts before the said our auditors of accounts.”

Book 7, folio 28. The ordinance of the above section does not seem to have been observed; for on [ 235 ] May 16, 1609, a royal decree was despatched which declares that inasmuch as certain doubts have resulted from the foundation of the three said tribunals, in regard to the exercise of the said offices and their jurisdiction, and other things, the following is declared and ordered anew. And in the said decree many of the ordinances contained in the above-cited decree of the year 605, are declared by sections. Section twenty-four, which concerns this point, reads as follows:

“Section 24. Having examined and considered the difficulties which have been represented in regard to [the officials] being able to go to give the accounts to the said tribunals, for the treasuries of the provinces or islands which are very remote and over seas, I have decided and resolved that the accounts of the provinces of Chile and the Philipinas Islands shall be audited as heretofore, in accordance with the ordinances of the audiencias, notwithstanding any rulings of the said ordinances for the auditors of accounts in regard to sending someone to give it at the tribunals. The accounts which shall be thus audited in the said provinces of Chile shall be sent to the tribunal of accounts at Lima, and those of the Philipinas Islands and Maluco shall be taken to that of Mexico. At the beginning of each year, my officials of those treasuries shall send the lists and muster-rolls of the soldiers to the said tribunals.”

Book 7, folio 247. In conformity with the above-cited section, the tribunal of accounts of Mexico despatched a decree in the year 612, ordering the royal officials of the Philipinas to observe and keep it. Notification was given to them, and they obeyed it in the same year. [ 236 ]

Book 7, folio 305. It appears in the fulfilment of the said royal decree, and of section twenty-four of it, that the governor of Philipinas gave the title of auditor of accounts and results [ resultas ] to Francisco Lopez Tamayo, October 6, 610, in the following words:

“Inasmuch as his Majesty has ordered that the office of auditor of accounts be again established in this city, so that the accounts of the royal officials of all the royal estate and other royal possessions that ought to be given might be audited, etc.”

The title proceeds, appointing him for such time as may be the pleasure of his Majesty and of the said governor in his royal name; and the latter assigns him an annual salary of one thousand pesos of common gold, to be paid from the royal treasury in accordance with the resolution made at the preceding meeting of the treasury on September 30 of the said year.

The above-mentioned tribunal of accounts of the governor and two auditors has punctually fulfilled its duties; and, as well as the said office, still exists—although there has been a change in regard to the title of “auditor of accounts,” as will be stated later.

Point 2

In case that your Majesty may be pleased to order that this office exist, will you be pleased also to ordain and determine the manner and form in which it is to be exercised, in order to avoid the differences and encounters that there have been and that may occur between the auditors of accounts and the royal officials. I shall relate in general terms the litigations that they have had hitherto, and the decisions [ 237 ] therein of that Audiencia and the tribunal of accounts.

Book 7, folio 252. The first instance of litigation that I find was for the year 620, when the auditor of accounts claimed that the royal officials ought to deliver to him, not only the books and papers that he asked, but also the account in orderly form, in order that he might audit their general account of the preceding year. The royal officials answered thereto that they had never rendered that account, and that they were not bound to do so, but only to deliver to him the books and papers necessary for the verification [of accounts]. The tribunal decided in favor of the royal officials.

Book 7, folio 261, et seq. The second instance of litigation was in the year 625, the auditor of accounts claiming that the royal officials must deliver to him all the books, vouchers, and papers of the treasury for which he asked; and that he could take them to his house, without any time-limit in which they must be returned. The royal officials claimed the very opposite to the above. Therefore, the Audiencia decreed an act on January 2, 626, ordering the auditor of accounts not to take the said papers from the treasury, but to audit the said account there. The auditor of accounts (at that time Luis de Vera Encalada) having entered a petition, the Audiencia enacted on the twenty-seventh of the said month and year that, notwithstanding the above-mentioned act, the said auditor of accounts, in consideration of the ill-health that he alleges, may exercise his duties in his house; but that he may not demand any paper by act from the royal officials except in virtue of the act from the tribunal of accounts for this purpose [ 238 ] which proceeds, in which he is under obligation to ask for the papers which shall be necessary. From those which shall be ordered to be delivered to him, he shall select what shall be necessary, and shall return them to the treasury in accordance with the ordinance.

Book 7, folio 344. The third instance of litigation was at that same period, on the question whether the auditor of accounts was to audit the accounts of private persons, who should have to account for royal revenues, or whether he was to review those concluded by the royal officials. The Audiencia ordered that the said auditor of accounts should not audit accounts of that class.

Book 7, folios 77–79. After the year 628, the said tribunal of accounts ordered by an act that the auditor of accounts could make additions to and draw up results [ resultas ] from the accounts concluded by the royal officials, provided he do it in a separate blankbook without making notes in the royal books.

The fourth instance of litigation was in regard to the question whether he was to be entitled “auditor of accounts” [ contador de cuentas ] or “auditor-arranger of accounts” [ contador ordenador de cuentas ]. The royal officials claimed that it should be the second, saying that the name “auditor of accounts” belongs only to those of the three tribunals of Lima, Santa Fe, and Mexico, according to the provision of August 24, 605, and the ordinances therein cited. The auditor of accounts claimed that this name belongs to him by virtue of his office, and because he has always been so called. The ordinances give him that name, as appears by ordinance [ 239 ] forty-two given above, and in the warrants despatched by the governors. The Audiencia decreed an act February 14, 626, ordering that he shall not be called “auditor of accounts,” but “auditor-arranger of accounts of the royal treasury;” since the auditing of the accounts does not belong to him, but only the arranging of them, so that the president and auditors, the judges of the accounts, may audit them, and conclude and remit them, as is ordained. Thus was he styled until the visitor altered it.

The last and most acrimonious lawsuit was in regard to the form of the sworn relation which the royal officials must give to the auditor of accounts, in order that he may audit the general accounts of each year. Upon this point arose the charge in the visit, the examination of which was the cause of my being ordered to compile this paper. In that contention, the royal officials have claimed that they do not need to give a sworn statement of the amounts that ought to be collected; but that the auditor of accounts must charge himself with that duty in the general account of each year. In case that the royal officials have to give a sworn statement, [they claim] that it is to be only of the debts incurred during their time; and that they do not need to give a general sworn statement, but only a statement of those kinds of royal revenue which are received into that treasury, and are current through their administration—and not of other things which, although they belong to his Majesty, do not enter into that treasury; and which are disbursed before they enter it, and pass through other hands. They allege that in these islands a very different account of the royal revenue is usual from that furnished in other provinces. [ 240 ] They availed themselves, for all three points of this claim, of the same sections of the ordinances on which the charge was founded, namely, the sections 14 and 22 of “tribunals of accounts, the decree of the year 605,” and section 20 of the decree of the year 60 [ sic ] explanatory of the tribunals—which, copied word for word, are as follows:

“Book 7, folio 5, section 14. Item : We ordain and command that at the time and when the said accounts are to be audited and completed, and before anything else, both the said our royal officials and other persons—of whatever estate, rank, and condition they may be—who may have received, and have had or have, the duty of receiving and collecting our revenue, must deliver—and they shall deliver—to the said our auditors of accounts, sworn statements, signed with their names, of all that they have received, and all that has been delivered to them, as well as what they have disbursed and distributed. They shall take oath, in the form required by law, at the foot of the said sworn statements, that everything therein contained is accurate, faithful, and true; and that they have not received more maravedis than those entered in their accounts, and that they have [actually] paid out all that which is entered therein as spent and disbursed. They shall bind themselves, with their persons and possessions, that if at any time it appear and be found that they have failed to enter anything of what they have received, or have entered as disbursed any sum in excess of what they have honestly and truly paid out, they shall pay such sum, together with a fine of a sum three times as large—to which we declare them immediately condemned, and order that the penalty [ 241 ] be executed on their persons and possessions. One-third part shall be given to the denouncer, one shall be placed in our exchequer, and the remaining third shall be given to the judges who sentence and decide the matter.”

“Section 22. Furthermore, the said our auditors of accounts shall audit and conclude the final account of the said our royal officials of the said our Indias for the year preceding, in the year immediately following, without delaying or extending the time, under any consideration whatever—except that of our royal officials of the province of Chile, and of the persons in whose possession enters the money that we order to be supplied from Piru for the expenses which shall be incurred there; and the accounts of the Filipinas Islands, which, as those islands are so remote and out of the way, shall be audited every two years. All the said our officials of the said our royal treasuries which we possess in the said our Western Indias, shall be obliged to go, or to send persons with their powers and sufficient authority, to render their accounts before the said our auditors of accounts, except those who shall audit the accounts of our royal officials of the imperial city of Potosi, which shall be done as will be declared hereafter. And in the said accounts that shall be audited and concluded for all, entry shall be made of all the said our incomes and duties, which pertain and ought to pertain to us in any manner, in the said year as abovesaid, notwithstanding that they may say and allege that they have not collected nor can collect it; and the balances of their total shall be struck. If they shall present sufficient evidence from which it appears that they made the efforts necessary at the [ 242 ] time when they were obliged, and that they were unable to collect it, they shall be given a brief respite from paying such balance, which, as above said, shall have been struck against them, which time shall be long enough for them to collect it or place it in the said our treasury. And should they, upon the expiration of that time, not have executed it or presented sufficient evidence that they have made the efforts necessary for its collection, they and their bondsmen shall be proceeded against by the full rigor of law, in order that they may place and deposit the amount due in the said our royal treasury. In regard to this action, the necessary executions and investigations shall be made, and by maravedis of our treasury. If it shall appear from the evidence that they shall present, that they have made the necessary efforts, and have been unable to collect, and that they have discharged their duty in this regard, the amount of their accounts shall be received on account, and the said our auditors of accounts shall make the new efforts that appear expedient for its collection, until it shall have been paid into the said our treasury.”

“Section 20 of the explanatory decree. Book 7, folio 16. By section 22 of the ordinances of the said auditors of accounts, and by other royal decrees, is ordained the manner in which my royal officials of my royal revenues, and of the rest of my estate which is in their charge, with obligation to collect those revenues, or show sufficient efforts, shall be held responsible. I have been informed that the said auditors of accounts undertake, when they audit the accounts of the said my royal officials, to proceed according to this order; but that the said my royal officials are generally accustomed to appeal from [ 243 ] some things, and bring a suit. That causes delay and other troubles, for the correction of which I ordain and command the said auditors of accounts to audit the accounts of the said my royal officials, charging them with all my incomes and the other property which must enter into their possession with obligation of collecting it, or else proving [that they have made] sufficient efforts for what shall not have been collected, in accordance with what has been enacted by the said ordinances for auditors [ contadores ] and other decrees; and in no manner shall the said my royal officials be allowed to appeal to the law until what has been ordained regarding this matter be observed and executed.”

Book 7, folio 87. On those three sections the visitor based his charge and the royal officials their rebuttal. The visitor ordered that, notwithstanding what they alleged, the royal officials should give a sworn statement of the collections made and of those still due, for the general account of the year 631.

In charge 3. The disadvantage and loss to the royal treasury alleged by the visitor, because the statements are not so given, is that that has resulted in there being more than sixty thousand pesos of royal revenue to collect, of which results [ resultas ] have been made in the visit against the said royal officials, besides others that are being made.

Point 3

In regard to the inconveniences from having this office or tribunal in those islands, I do not find that the royal officials of the islands, who are the ones who could best make such a representation, have made it. They have only opposed the jurisdiction [ 244 ] and authority that the auditor of accounts has possessed or claimed to possess for the exercise of his duty; and they declare that the tribunal of accounts of those islands, which is composed of the governor and two auditors [ oidores ] is the one that truly holds and exercises this ministry of the auditing department of accounts, and that the auditor [ contador ] whom they call “auditor of accounts” cannot be that official, and cannot be so called, but only “auditor-arranger of accounts.” They say that it is not fitting for one man alone to be superior to the tribunal of the royal officials, for thereby is lost their authority and the superiority and influence that they ought to have for the efficient management and exercise of their duties; and that the expenses incurred with the said auditor of accounts and his clerks ought to be dispensed with, for the said reasons. In this regard what appears from the records of the visit is that Governor Don Juan de Silva, in a treasury meeting held in the year 610 (Book 7, folio 301), resolved to assign to the auditor of accounts and results [ resultas ] (joining those two offices, which had up to that time been divided) a salary of 1,000 pesos of common gold per annum, payable from the royal treasury, for the work of both offices. Until that time, it appears that the auditors of accounts had had only one official notary of accounts, with 250 pesos of salary per annum. By the said resolution it was raised to 300 pesos; and the clerks were increased by three, each with 200 pesos salary per annum—in consideration of the fact that there were many accounts in arrears to catch up with, and that the said two offices were joined into one. Other appointments resembling the one aforesaid were [ 245 ] made in the persons of Pedro de Leuzarra, in the year 618, and Luis de Vera Encalada, in the year 620. At this time the said chief official notary of this exchequer was given a salary of 450 pesos, without its appearing when or why this increase was granted; and that same practice was continued. In the year 626, Alonso Garcia de la Vega was appointed with the title of “auditor-arranger” (Book 7, folio 65), in accordance with the act of the Audiencia above mentioned. In the year 629, Juan Baptista de Zubiaga was appointed [ In the margin : “Memorial, folio 266, Book 1, folios 49, 128”] with the title of “auditor-arranger,” and four clerks, of whom we shall treat at the end of this paper, its proper place.

Against the statements of the royal officials, in regard to its being possible to avoid those expenses, the auditor of accounts, Luis de Encalada, stated in the year 625, in the suit that he had with them, that they could not be avoided, for the tribunal of accounts, consisting of the governor and two auditors [ oidores ] cannot personally arrange or audit them, both because of their occupations and because it is outside their profession; and their only duty is to dispose of the uncertainties and results [ resultas ] which may be proposed to them by the auditor of accounts.

[Point 4]

Papers of the secretary’s office. In regard to the advantages in having this office or tribunal, it seems that Governor Don Alonso Faxardo, in a letter of August 10, 619, 3 petitioned your Majesty to have [ 246 ] intelligent persons sent as clerks; and informed your Majesty that he had appointed Pedro de Leuzarra, a trustworthy person, auditor of accounts, because of the incompetency of Francisco Lopez Tamayo. The Council, upon examining that letter, decreed, November 17, 620, that persons be named for that office, and that it was to be filled from that time thenceforth by his Majesty; and accordingly the appointment by the governor must cease.

That decree does not appear to have had any effect; for since that time and until the present, as has been seen, the governors have filled that office, notwithstanding that the Council gave that advice in the said year, and your Majesty granted the office to Alvaro de Revolledo. As it was then believed that the salary of this office was 500 pesos, the said Alvaro de Revolledo petitioned that it be increased to 2,000 ducados or to 510,000 maravedis, the same as that of the royal officials of those islands, so that he could exercise the said office with greater authority. No decision was made on the petition, and the said Alvaro de Rebolledo was afterward appointed to the accountancy of San Miguel de Piura, with a salary of 300 pesos ensayados.

The tribunal of accounts of Mexico state, in a letter of June 27, 625, that they have seen the necessity, from what they have examined of the accounts of the said Filipinas Islands, of sending a person to visit them who can adjust affairs pertaining to the expenses of the royal estate of those islands, and lay down a system [of conducting them] for the future. The person who must go should be of the ability, authority, and qualifications that the matter demands. He should be highly compensated and honored, [ 247 ] in order that his office be respected and the end in view obtained. It is the most important action for your Majesty’s service, and has most need of reform.

It appears that the said Alvaro de Rebolledo again petitioned, in the year 626, that his warrant be despatched to him, with the salary that your Majesty might be pleased to grant him, so that, its value being known, he might be able to fulfil his duties. February 19, 626, it was decreed by the Council that he should be heard. Thereupon, the Council ordered the viceroy to investigate this matter, and to submit a relation of whatever had happened in regard to the office of auditor of accounts of Manila, and whether this office is necessary, whether it be for life, and what are its qualifications and duties; and of the tribunal of accounts. In obedience to this order, the viceroy, Marquis de Cerralbo, in a letter of May 22, 627, states that what he understands is that it is necessary that this office be permanent, and that very suitable persons trained in the tribunal of accounts and the other duties of the royal estate, should be found [for it]; and that it will be advisable that the official who should exercise it be approved by the governor of Filipinas.

The tribunal of accounts of Mexico, in a letter of May 28, of the same year 627, sent a report regarding the aforesaid which had been drawn up, by order of the viceroy, by one of the auditors [ oidores ] of the tribunal, Gaspar Bello de Acuña. In this it is declared that it is necessary that not only should the accounts of the royal treasury in Manila be audited, but also the accounts of all the royal estate which should be in the keeping of any person whatever; for this was a thing that has never been customary [ 248 ] there, or had regular course, because of the resistance offered by the royal officials. The said accounts are of much more importance than any others; and it is therefore important to appoint a person who is thoroughly competent and reliable to inspect everything pertaining to the royal estate of the said islands; for the accountants hitherto appointed have been remiss in their proceedings. That has arisen from the poverty of the country, and from all being united there; or because those who try to proceed with any show of thoroughness in your Majesty’s service do not find aid in those who can give it in a matter that is of so great importance; and because this office, from what is understood of the condition of the royal estate in those islands, is subject to ordinary occupation and residence, and has a salary of one thousand pesos per annum. Since not more than one is appointed, he will need a clerk to help him in the methodical arrangement of the said accounts, and what is dependent on them. For the said office of accountant, a fully competent person, and one of abilities, will be needed. He should be well equipped, and honored with the necessary writs of prohibition for matters pertaining to his office, and with the privileges that may pertain to it. It is advisable that he should be sent as visitor of all things that concern the royal estate, to audit the accounts that are to be audited, and review those that are concluded, notwithstanding the visitor-general appointed; for the latter cannot have the intelligence, experience, and method which your Majesty orders to be exercised in such matters—which are understood only by those who have gained their knowledge in the chief bureau of accounts of those [ 249 ] kingdoms. Such a person can be appointed with a time-limit, and, at the expiration of that time, he may return; and another man of skill and experience may remain as the ordinary and usual one, with the title of “auditor of accounts” for your Majesty; and he should receive the ordinary salary that your Majesty cares to grant him, and have a clerk to help him.

The Council, upon examination of the above-mentioned reports, decreed on December 6, 627, that the papers that occasioned them should be collected, and taken to the Council. From that time, it does not appear that anything pertaining to this matter has been done in or out of the Council until the year 631, upon the arrival of the visitor, Licentiate Don Francisco de Rojas, at the said islands. He having found Juan Baptista Zubiaga holding the said office of auditor-arranger of accounts and results [ resultas ], by the appointment of the governor in the year 629, ordered the said Juan Baptista to cease to exercise his duties, and to bring the papers in his charge to the visitor’s office; and ruled that there the said Juan Baptista and Diego Ortiz de Vargas, auditor [ contador ] of the visit, should together review all the accounts of the royal treasury and estate, with four other clerks. They were to receive the following salaries: the said Diego de Ortiz de Vargas, 2,000 ducados; the said Juan Baptista, 1,000 pesos, the same as he had received before [when exercising his office]; to one clerk 400 pesos, to another, 350, to another 300, and to the fourth 200.

Later, at the end of the visit in the year 633, the said visitor gave the said Juan Baptista de Zubiaga the title of “auditor of accounts and results” [ resultas ] [ 250 ] with a salary of 1,000 ducados per annum, increasing his salary [ In the margin : “Memorial, folio 266”] because of the extra work which he would have in collecting [the amounts due from] the results [ resultas ] which remained drawn in his possession. He was to get a confirmation from your Majesty for the increase, namely, from the 1,000 pesos which he received before to the 1,000 ducados assigned to him by the visitor, within six years. Besides the above, he was to have two clerks to assist him and commission to audit all the accounts, both general and private, pertaining to the royal estate. [ In the margin : “The title is to be found in the collection of papers for the claim of this man in regard to the confirmation.”]

He made rules in regard to its execution, and ordered them to be obeyed and observed, and to be inscribed in the royal books for that purpose. Although the royal officials were opposed to both things, the visitor ordered them to obey the enactment. Because the said royal officials refused to inscribe the said ordinances in the royal books, he fined them five hundred ducados apiece, which remained in the royal treasury. He had those ordinances inscribed in the books, getting the books for that purpose from the royal treasury, for the royal officials refused to do it [ In the margin : “Memorial, folio 266”]. In the report made for your Majesty by the said visitor in the year 634, regarding the visit, he states that he thinks that those islands have the greatest need of a tribunal of the bureau of accounts, so that the accounts of the royal treasury may be audited there annually for the preceding year, and results made of all for which warrants [ 251 ] have been improperly issued, and that has failed to be collected, thus avoiding the delays which have occurred hitherto. It is very necessary to have not only the said auditor of accounts appointed by him in the said bureau of accounts, but also a greater force of men and more authority in the said bureau of accounts. If that course had been pursued hitherto, it is undeniable that so great a quantity of funds would not have been badly administered, lost, and uncollectible. In his opinion, those islands have much greater need of a tribunal or a bureau of accounts than of an Audiencia, president, and auditors [ oidores ].

By a certification given by the said auditor of accounts and of the visit, Juan Baptista Zubiaga, it appears that the results [ resultas ] drawn up against the royal officials and other private persons during the visit amounted to six hundred and ninety-five thousand and sixty pesos.

The governor of Filipinas, in a letter written to your Majesty August 10, 634, 4 declares that it will be advisable that your Majesty be pleased to send an auditor of accounts, and that such auditor should be a person of authority, who shall receive an adequate salary; and states that he who is holding that office ad interim was a servant of one of the auditors [ oidores ] of those islands, and thinks more of spending his time in maintaining his friendships than in attending to what is necessary. He thinks that with the above appointment, and the correction of some recent ordinances, the condition of affairs would be improved.

A report made from the secretary’s office having [ 252 ] been examined in the Council on September 26, 635, regarding what appeared to be there on this matter, it was ordered that your fiscal should examine it; and that, after also examining what advices had been received concerning it and the letters of the visitor, he should inform the Council in regard to it all. The said your fiscal declared that the ordinances and papers sent by the royal officials had come without authentication; and therefore, until they should come with that requisite, he had nothing to say.

This defect no longer operates, for the above-mentioned ordinances have arrived duly authenticated, in the body of the [records of the] visit; and the officials, in a letter in which they set forth the objections to those ordinances, have sent some authenticated papers for the proof of their statements.

On February 20, 637, the papers on the matter having been examined in the Council, it was ordered that they be taken to your fiscal, with the rest of the papers concerning the visit that touch the royal estates and its accounts—so that, upon receiving his statement, the advisable decision may be made as to whether it is best to send an auditor of accounts to Filipinas, or not. It does not appear that the said your fiscal has as yet answered. This is the condition that appears from the above-cited records; and your Majesty will ordain the measures that seem best to you. [ 253 ]