The Former Philippines thru Foreign Eyes | Page 7

strictly prohibited throughout the whole of the Spanish
possessions in both hemispheres. A decree of 1734 (amplified in 1769)
once more permitted trade with China, and increased the maximum
value of the annual freightage to Acapulco to $500,000 (silver) and that
of the return trade to twice the amount.
[Higher limit on suspension of galleon voyages.] After the galleons to
Acapulco, which had been maintained at the expense of the government
treasury, had stopped their voyages, commerce with America was
handled by merchants who were permitted in 1820, to export goods up
to $750,000 annually from the Philippines and to visit San Blas,
Guayaquil and Callao, besides Acapulco.
[ British occupation inspired new wants.] This concession, however,
was not sufficient to compensate Philippine commerce for the injuries
it suffered through the separation of Mexico from Spain. The
possession of Manila by the English, in 1762, made its inhabitants
acquainted with many industrial products which the imports from
China and India were unable to offer them. To satisfy these new
cravings Spanish men-of-war were sent, towards the close of 1764, to
the colony with products of Spanish industries, such as wine,
provisions, hats, cloth, hardware, and fancy articles.
[Manila oppositions to trade innovations.] The Manila merchants,
accustomed to a lucrative trade with Acapulco, strenuously resisted this
innovation, although it was a considerable source of profit to them, for
the Crown purchased the Indian and Chinese merchandise for its return
freights from Manila at double their original value. In 1784, however,
the last of these ships arrived.
[Subterfuges of European traders.] After the English invasion,
European vessels were strictly forbidden to visit Manila; but as that city
did not want to do without Indian merchandise, and could not import it
in its own ships, it was brought there in English and French bottoms,
which assumed a Turkish name, and were provided with an Indian
sham-captain.

[The "Philippine Company" monopoly.] In 1785, the Compañía de
Filipinas obtained a monopoly of the trade between Spain and the
colony, but it was not allowed to interfere with the direct traffic
between Acapulco and Manila. The desire was to acquire large
quantities of colonial produce, silk, indigo, cinnamon, cotton, pepper,
etc., in order to export it somewhat as was done later on by the system
of culture in Java; but as it was unable to obtain compulsory labor, it
entirely failed in its attempted artificial development of agriculture.
[Losses by bad management.] The Compañía suffered great losses
through its erroneous system of operation, and the incapacity of its
officials (it paid, for example, $13.50 for a picul of pepper which cost
from three to four dollars in Sumatra).
[Entrance of foriegn ships and firms.] In 1789 foreign ships were
allowed to import Chinese and Indian produce, but none from Europe.
In 1809 an English commercial house obtained permission to establish
itself in Manila. [24] In 1814, after the conclusion of the peace with
France, the same permission, with greater or less restrictions, was
granted to all foreigners.
[Trade free but port charges discriminating.] In 1820 the direct trade
between the Philippines and Spain was thrown open without any
limitations to the exports of colonial produce, on the condition that the
value of the Indian and Chinese goods in each expedition should not
exceed $50,000. Ever since 1834, when the privileges of the Compañía
expired, free trade has been permitted in Manila; foreign ships,
however, being charged double dues. Four new ports have been thrown
open to general trade since 1855; and in 1869 the liberal tariff
previously alluded to was issued.
[Port's importance lessened under Spain.] Today, after three centuries
of almost undisturbed Spanish rule, Manila has by no means added to
the importance it possessed shortly after the advent of the Spaniards.
The isolation of Japan and the Indo-Chinese empires, a direct
consequence of the importunities and pretensions of the Catholic
missionaries, [25] the secession of the colonies on the west coast of
America, above all the long continuance of a distrustful commercial

and colonial policy--a policy which exists even at the present
day--while important markets, based on large capital and liberal
principles, were being established in the most favored spots of the
British and Dutch Indies; all these circumstances have contributed to
this result and thrown the Chinese trade into other channels. The cause
is as clear as the effect, yet it might be erroneous to ascribe the policy
so long pursued to short-sightedness. The Spaniards, in their schemes
of colonisation, had partly a religious purpose in view, but the
government discovered a great source of influence in the disposal of the
extremely lucrative colonial appointments. The crown itself, as well as
its favorites, thought of nothing but extracting the most it could from
the colony, and had neither the intention or the power to develop