The Former Philippines thru Foreign Eyes | Page 6

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 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