The Former Philippines thru Foreign Eyes | Page 6

increased harbor dues; almost an impossibility for foreign ships, on
account of the differential customs rates, which acted almost as a
complete prohibition. The result was that foreign vessels came there
only in ballast, or when summoned for some particular object.
[Export taxes.] The exports of the colony were almost entirely limited
to its raw produce, which was burdened with an export duty of three
per cent. Exports leaving under the Spanish flag were only taxed to the

amount of one per cent.; but, as scarcely any export trade existed with
Spain, and as Spanish vessels, from their high rates of freight, were
excluded from the carrying trade of the world, the boon to commerce
was a delusive one. [16]
[Laws drove away trade.] These inept excise laws, hampered with a
hundred suspicious forms, frightened away the whole carrying trade
from the port; and its commission merchants were frequently unable to
dispose of the local produce. So trifling was the carrying trade that the
total yearly average of the harbor dues, calculated from the returns of
ten years, barely reached $10,000.
[Manila's favorable location.] The position of Manila, a central point
betwixt Japan, China, Annam, the English and Dutch ports of the
Archipelago and Australia, is in itself extremely favorable to the
development of a world-wide trade. [17] At the time of the
north-eastern monsoons, during our winter, when vessels for the sake
of shelter pass through the Straits of Gilolo on their way from the
Indian Archipelago to China, they are obliged to pass close to Manila.
They would find it a most convenient station, for the Philippines, as we
have already mentioned, are particularly favorably placed for the west
coast of America.
[The 1869 reform.] A proof that the Spanish Ultramar minister fully
recognizes and appreciates these circumstances appears in his decree,
of April 5, 1869, which is of the highest importance for the future of
the colony. It probably would have been issued earlier had not the
Spanish and colonial shipowners, pampered by the protective system,
obstinately struggled against an innovation which impaired their former
privileges and forced them to greater activity.
[Bettered conditions.] The most noteworthy points of the decree are the
moderation of the differential duties, and their entire extinction at the
expiration of two years; the abrogation of all export duties; and the
consolidation of the more annoying port dues into one single charge.
[Pre-Spanish foreign commerce.] When the Spaniards landed in the
Philippines they found the inhabitants clad in silks and cotton stuffs,

which were imported by Chinese ships to exchange for gold-dust,
sapan wood, [18] holothurian, edible birds' nests, and skins. The Islands
were also in communication with Japan, Cambodia, Siam, [19] the
Moluccas, and the Malay Archipelago. De Barros mentions that vessels
from Luzon visited Malacca in 1511. [20]
[Early extension under Spain.] The greater order which reigned in the
Philippines after the advent of the Spaniards, and still more the
commerce they opened with America and indirectly with Europe, had
the effect of greatly increasing the Island trade, and of extending it
beyond the Indies to the Persian Gulf. Manila was the great mart for the
products of Eastern Asia, with which it loaded the galleons that, as
early as 1565, sailed to and from New Spain (at first to Navidad, after
1602 to Acapulco), and brought back silver as their principal return
freight. [21]
[Jealousy of Seville monopolists.] The merchants in New Spain and
Peru found this commerce so advantageous, that the result was very
damaging to the exports from the mother country, whose manufactured
goods were unable to compete with the Indian cottons and the Chinese
silks. The spoilt monopolists of Seville demanded therefore the
abandonment of a colony which required considerable yearly
contributions from the home exchequer, which stood in the way of the
mother country's exploiting her American colonies, and which let the
silver of His Majesty's dominions pass into the hands of the heathen.
Since the foundation of the colony they had continually thrown
impediments in its path. [22] Their demands, however, were vain in
face of the ambition of the throne and the influence of the clergy; rather,
responding to the views of that time the merchants of Peru and New
Spain were forced, in the interests of the mother country, to obtain
merchandise from China, either directly, or through Manila. The
inhabitants of the Philippines were alone permitted to send Chinese
goods to America, but only to the yearly value of $250,000. The return
trade was limited to $500,000. [23]
[Prohibition of China trading.] The first amount was afterwards
increased to $300,000, with a proportionate augmentation of the return

freight; but the Spanish were forbidden to visit China, so that they were
obliged to await the arrival of the junks. Finally, in 1720, Chinese
goods were