# The Philippine Islands, 1493–1898/Volume 6/Measures

MEASURES REGARDING TRADE WITH CHINA
LETTER TO FELIPE II
Sacred Royal Catholic Majesty:
In order to discuss your Majesty's commands regarding the commerce between the Philipinas Islands and Nueva España, Don Cristobal Mora and I met yesterday and examined a long report which Ledesma had drawn up from many papers which have been sent from both sides, together with a certain clause of a letter to your Majesty by the viceroy, Don Martin Enriquez, written on the twentieth of March of the past year, eighty [-five]. In this letter he says that the merchants of that country are greatly disappointed that trade with the Philipinas Islands should be taken away from them; for, although the satins, damasks, and other silken goods, even the finest of them, contain very little silk, and others are woven with grass (all of which is quite worthless), the people mainly resort to this cheap market, and the prices of silks brought from Spain are lowered. Of these latter, taffetas had come to be worth no more than eight reals, while satins and ​damasks had become very cheap. He feared that, if this went further, it would not be needful to import silks from España. He says, moreover, that all goods carried from the said islands are mere trifles, from which the land derives no profit—such as porcelains, escritoires, caskets, fans, and parasols, all flimsy and very unprofitable. We can trade with the Chinese only with gold and silver, since they have more than enough of everything else. The letter written to your Majesty by the commander of the fleet which is in Nueva España was also examined. He states therein that the trade in thin fabrics imported from these kingdoms to that land is steadily decreasing, on account of the trade which is carried on there with the Philipinas Islands. This letter was the occasion for issuing a decree, to which your Majesty was pleased to set your royal hand, calling for a report from the viceroy of Nueva España. This is an affair which requires a much more expeditious remedy. We have investigated the state of affairs in those regions, of which a detailed report was made to us. Besides the little value of those wares, a large amount of silver and coin is carried thither in exchange for them. Although a portion of this money remains in those islands, all the rest is carried away by the Chinese who go thither from the mainland to sell these wares.
In this way the commerce of these kingdoms is falling away, and the bringing of money hither is impeded; both these are matters of consequence and importance. This is not the way to maintain our trade, since the settlement of the land must be through its richness and fertility, and the prospect of other discoveries that are being made daily, and ​not through trade. Those who are engaged in this trade are merely transients, and those islands are merely a place of lading for this commerce; for all, or the greater part, of the merchandise comes from China. The Spaniards derive two, three, or four thousand ducats from anchorage alone; this is the fee for the privilege of anchoring the ship. The lure of the cheapness of the merchandise overcomes all other considerations. This hinders the prosperity of the people, and furnishes them no aid in the most important thing, namely, the settlement of the islands, and the discovery and operation of the gold mines there. We came to the conclusion that the trade and commerce of the said islands, as far as the said merchandise is concerned, should be abolished, and that these wares should not be carried to Nueva España or other parts of the Indias, in order that the trade of these kingdoms—a most important matter—may continue. A communication to this effect should be addressed to the viceroy of Nueva España, recounting to him the aforesaid disadvantages; and advising him that, unless he shall encounter other obstacles so great as to prevent him from taking such action, he should prohibit the traffic in the above-mentioned merchandise from China, and order the cessation of such commerce with that country. If he find too great difficulties in the way, then he should give advice thereof, together with his opinion. In the meantime, he should make such provision as he shall find most expedient. To save time, the decree in accordance with this recommendation accompanies the present communication; and it shall be sent by this fleet, if your Majesty will have the goodness to sign it. Madrid, June 17, 1586.
DECREE REGARDING CHINESE TRADE
The King: To the Marques de Villamanrrique, my kinsman, and viceroy, governor, and captain-general of Nueva España. Having understood that the silks brought from China and the Philipinas Islands to your realms are quite worthless, but that nevertheless, because of the low price set upon them, they are sold and distributed; and because, if that trade continues, the trade in cloth exported from these realms would cease or be greatly decreased; and also that these silks, like other articles brought thence (all of which are of trifling value, and of no profit to the country), are bartered only for gold, silver, or coin, for there is abundance of everything else there—a matter, too, of considerable importance, both on account of the large amount that is withdrawn and would be withdrawn for the benefit of a foreign kingdom, and because these kingdoms [Spain and Portugal] lose that whole amount, their trade being more profitable for the common good, on account of the excellence of its wares, which in their lasting qualities more than make up for the difference in price; neither is this the best means for the settlement of the said islands, since they serve only as a lading-station for this trade, and it proves a hindrance to ​the settlers by being of no assistance in whatever concerns their permanence and fixed residence: therefore, having carefully considered this as well as other inconveniences set forth, it has seemed best to discontinue this trade with the Philipinas Islands and China, since, even besides the aforesaid, it has evidently caused delay in despatching the fleets, as must be the case if this sort of cargo continues to diminish. Since the present is a fitting occasion to furnish a remedy, as so important a matter demands, I order you—after considering the aforesaid points and others of which you may be advised (since the matter is a current one), and difficulties that might arise, if you find, to the contrary, no others so important as to overbalance them—to give orders that there be no further trade or importation of the said merchandise and Chinese wares to that land for the purpose of sale. You will have the merchants engaged in this commerce advised and notified of this decree. You will provide for its public proclamation, indicating the penalty to be incurred by those who bring in contraband goods. If you find in the execution thereof such special difficulties, as above-mentioned, as oblige you to desist, you will inform me of what occurs, together with your opinion, taking in the meantime such measures as shall seem to you most advisable. Given at Sant Lorenço, on the nineteenth of June in the year one thousand five hundred and eighty-six.
I, the King Countersigned, Matheo Vargas
Approved by the Council.
[A separate sheet reads as follows: "His Majesty ​has ordered me to send your Lordship the enclosed copy of deliberations of the Council of the Indias, and the papers accompanying it, concerning the trade and commerce between the Filipinas Islands and China, so that, together with any that your Lordship may have concerning this matter, everything enacted may be examined personally. Your Lordship will advise his Majesty of your opinion. May God preserve your Lordship. Sant Lorenço, July 31, 1590."]
LETTER FROM MARQUES DE VILLAMANRIQUE TO FELIPE II
Year 86. Copy of two sections of a letter written by the Marques de Villa Manrrique, viceroy of Nueva España, to the king, our lord, on the fifteenth of November, 86, describing the importance of maintaining trade and commerce, and the great inconveniences which result [from its discontinuance].
[After citing the royal decree of June 19, 1586 (q. v. ante), in regard to trade between the Philippines and China, in words similar to the decree, the viceroy continues:]
Regarding the whole matter I have procured detailed information from people who are familiar with it and have an extensive knowledge of the affairs of those regions from the beginning of their settlement, and from the correspondence that they maintain therein. It appears that, since the time when Don Luis de Velasco was viceroy and governor for your Majesty in this kingdom, your Majesty has spent in the pacification of those islands more than three millions [of pesos?] for soldiers, ships, and other ​supplies— in order that the natives of those parts might recognize and profess the Catholic faith, and the sovereignty of your Majesty. As a result, there are already among them six Spanish settlements, and more than forty monasteries of friars of various orders in many native villages, whose inhabitants are converted and baptized. By this, God our Lord is well served, and your Majesty's glory and renown augmented. With the assiduity exercised by all these ministers, the Christian church appears to be increasing in those places, in such wise that in a short time it is hoped that the sect of Mahoma and the idolatries of which they were full, will be eradicated from them. Not only has this been done and continued among the people of the said islands, but also among many natives of China who have come, and continue to come, to live in the islands. They are baptized and have become Christians, which seems a good beginning; this will be an excellent way of pursuing the pious work and the objects which, as your Majesty has always made plain, you have had in the pacification and settlement of those places, and of acquiring greater favor and grandeur than is now possessed in all these kingdoms.
Although the ships and soldiery that have ordinarily been here have been also of great effect in placing affairs in their present state, it seems that the traffic and commerce which has been encouraged with the natives of the Filipinas and those of China and other nations, and the friendship and good treatment which has been accorded them, have been of considerably greater importance, since they are a well-armed and numerous people. It seems very difficult to subject them or negotiate with them against their will; and ​as they live for the most part by commerce, it will be seen, that, by the advantage accruing to them therefrom, they will not only become Christians, but, with the lapse of time, they will be profitable to your Majesty and instruments for whatever your Majesty would like to undertake among those nations. And if this should come to an end, it is well known also that this people, because of our recent knowledge of them, and because of their covetousness, would drop Christianity, return to their idolatries and old customs, and close the door which they are now opening for their gain and self-interest. That might be of greater importance than the annoyance of enduring and supporting them with some loss, especially as the trade and commerce that comes from those parts to this kingdom [of Mexico] usually amounts to one ship and sometimes two, aboard which arrive the returns from the encomenderos of the said islands—silk, both raw and woven, cotton cloth, iron, copper, earthenware, and other things of no great worth, carried to those islands from the said land of China. As these are in no greater quantities than heretofore, the success achieved in this trade, and the benefit that might result from it, seem to be held in greater account than the damage which occurs, as I have said. Although the figured silks are most usually not so fine as those that come from España, some are good; and those that are not, are of such a price that, considering the price of those that come from España, there is no comparison—because, as a rule, the damask is better than the taffeta from España, and costs hardly half as much. The same holds with regard to all other cloth. The raw silk is very good and profitable in this city. As it is made, it is better than the native ​product; and from it are made good fabrics. In the first, second, and further sales of it that are made, your Majesty's customs also receive greater increase, rather than diminution, from that which used to come from España, and now does not come for this reason.
Also with this trade and profit many merchants and other people from España and this land are going to live in those islands, and continue to settle there. Thus the country is made safe, because, when any necessity arises, they take arms and incur the dangers of war, so that the natives of the said islands and of those surrounding are peaceable, and fear the Spaniards. If these and the trade that they now maintain should fail, and if your Majesty should not supply as many more men at his own cost, it is well-known that with the instability and suspicious nature of those peoples, they would rebel, and recover the liberty that they have lost. Worse than that, they would return to the heresy or the heathenisms which they professed a little while ago.
Moreover, by this means the encomenderos and settlers of those islands get a profit out of the customs, trade, and commerce, because from their tributes and profits they derive a good income. Before they had it, they were in need. From the said China they provide themselves with biscuit, flour, meat, fruits, clothes, gunpowder, iron, and many other things which they greatly need, and which the said islands lack. If they had to bring those articles from this kingdom, they might not have them on account of their dearness, and since they, without their trade, are so poor. Accordingly, it not only does not embarrass or hinder the settlement of the said islands; but rather they find it very difficult to support themselves and ​achieve success without the said trade and commerce. It will surely result in greater cost to your Majesty, if the trade can [not] be conducted as heretofore; and if provision must be made as on the frontiers of Oran, Tanger, or Melilla. Even those who avoid sending their money to those districts, send it to the islands. It is not in such a way as understood hitherto, that the prompt despatch of the fleets is hindered; because, although they do not send their money thither now, they will be able to send it—namely, to Piru and Guatemala—and to employ it in other ways in this land, without obliging them necessarily to send it to España, if the gains that they attain are not so certain as they would have them.
Likewise it appears that, if the said trade should cease, the annual departure of ships and people, as it is at present, would cease; and that would be a greater incentive to the natives who are peaceful, and those who until now have had no desire for peace, to rise and rebel, seeing that the gain which they derive from trade is taken away from them, and ships and Spaniards go thither no longer—through fear of whom they dare not rise from the subjection and obedience which they now observe. The said trade being in the present condition, it might be so regulated, that the expense to your Majesty in ships, men, and supplies for their navigation should end by having them furnished from the merchant service, as on the routes by the Northern Sea. This I have written your Majesty in the eighteenth section of my letter of May 10 of this year, in which I said that greater economy and profit will result than loss be incurred in continuing the trade of the said islands. This I shall try to secure by every possible means.
​And because these difficulties seem serious and the harm that might result does not come to pass, I have seen fit to disregard your Majesty's orders, until you direct me further. In the meantime, I shall see that the affairs of those parts remain in their present state, so that the vessels leaving this kingdom for the said islands, shall take half the money that they could carry according to their tonnage. The shipment shall consist in such part of gold as will supply the present want of silver and coin—which are withdrawn as I have written your Majesty in the same section of the said letter. Your Majesty will give directions therein at your pleasure.
And in order that this navigation may be accomplished by the medium of merchants, which is a matter truly important for your Majesty's royal service, and in order to avoid the increased expense of the port of Acapulco, I have today ordered that every tonelada of cloth brought in your Majesty's ships shall pay a duty in conformity with those paid on the Northern Sea. This is done to oblige the merchants, by incurring this duty, to turn their attention to buying ships, in order to economize and enjoy greater profits; also in order that in the interim, while this is being established, it may prove of some help for the great expense incurred by the ships. For hitherto—as I have written to your Majesty in section 9 of my letter of February 23, 86—they had not paid and were not paying more than nine ducats per tonelada; now they will pay from thirty-two to thirty-four. Your Majesty will order all according to your will.
[Endorsed: "Sections from the letter of Marques de Villa Manrrique, viceroy of Nueva España, to his Majesty."]
* ↑ In the original, ochenta only—y cinco evidently omitted by some oversight, as the date is written "1586" at the end of the document.
* ↑ Alvaro Manrique de Zúñiga, Marques de Villa Manrique, was viceroy of Nueva España from October 17, 1585, to February, 1590.
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