Philippine Progress Prior to 1898 Part 18

"As for the second point, the amount of the commerce, this was formerly without any limitation; and during the time (which was short) while that condition lasted the islands acquired what strength and wealth and grandeur they now possess." (Juan Grau y Monfalcon in Extracto Historial by Antonio Alvarez de Abreu; Madrid, 1736.--Bl. and Rb., Vol. 30, p. 50.)

This is the point of view taken by Azcarraga in his La Libertad de Comercio en Filipinas.

[96] "In 1603, that is, when our colony had only thirty-two years of existence, there were already in the capital 25,000 Chinese, and the number of j.a.panese must have been also quite considerable, since they formed a colony which occupied the barrios of San Anton and San Miguel, at present inhabited by natives and a great portion of the white population." (Azcarraga, La Libertad de Comercio, p. 44.)

[97] "37. Accordingly the commerce of this city is extensive, rich, and unusually profitable; for it is carried on by all these Chinese and their ships, with those of all the islands above mentioned and of Tonquin, Cochinchina, Camboja, and Siam--four separate kingdoms, which lie opposite these islands on the continent of Great China--and of the gulfs and the numberless kingdoms of Eastern India, Persia, Bengala, and Ceilan, when there are no wars; and of the empire and kingdom of Xapon. The diversity of the peoples, therefore, who are seen in Manila and its environs is the greatest in the world; for these include men from all kingdoms and nations--Espana, Francia, Inglaterra, Italia, Flandes, Alemania, Dinamarca, Suecia, Polonia, Moscobia; people from all the Indias, both eastern and western; and Turks, Greeks, Moros, Persians, Tartars, Chinese, j.a.panese, Africans, and Asiatics. And hardly is there in the four quarters of the world a kingdom, province, or nation which has not representatives here, on account of the voyages that are made hither from all directions--east, west, north, and south." Description of Filipinas Islands, Bartholome de Letona, O. S. F.; La Puebla, Mexico, 1662.--Bl. and Rb., Vol. 36, p. 205.)

[98] "Number 96. Distinctions in products from the islands, and their qualities with respect to those of Espana.

"All these products that are trafficked from the islands are divided into six (sic) cla.s.ses. 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 cla.s.s amounts to but little, and is not harmful to the commerce of Espana, as it is composed of rarities and foreign products. The fourth cla.s.s, 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 Espana, 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 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 Espana)--because that would create a lack in Espana, and it would, moreover, be too advantageous to the foreigners, to whom almost all this commodity belongs. 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." (Informatory Memorial addressed to the King, Juan Grau y Monfalcon, Procurator General; Madrid, 1637.--Bl. and Rb., Vol. 27, pp. 200-201.)

[99] Ibid., pp. 98-104.

[100] Ibid., pp. 115-116.

[101] Ibid., pp. 120.

[102] Ibid., pp. 186-197.

[103] Ibid., p. 158.

[104] Ibid.

[105] Recopilacion de Leyes, Lib. IX, t.i.t. x.x.xV, Ley VI. In Bl. and Rb., Vol. 17, pp. 30-31. Jan. 11, 1593.

[106] Ibid., Ley XV.--Bl. and Rb., Vol. 17, pp. 31-32. Jan. 11, 1593.

[107] Ibid., Ley x.x.xIV.--Bl.and Rb., Vol. 17, p. 32. Jan. 11, 1593.

[108] Ibid., Ley LXVIII.--Bl. and Rb., Vol. 17, p. 33. Jan. 11, 1593.

[109] La Libertad de Comercio, p. 49.

[110] Recopilacion, Lib IX, t.i.t. x.x.xV, Leyes LXXIV, LXXV, and LXXVI.--Bl. and Rb., Vol. 17, pp. 42-44.

[111] Pedro Quiroga.

[112] Recopilacion, ibid., Ley LXXVIII.--Bl. and Rb., Vol. 17, pp. 44-45.

[113] As to the effect of these restrictions Azcarraga says: "* * *

thus, at the end of that century, there was nothing but poverty and discontent in the city; the white population had hardly increased; commerce, confined within the narrow sphere of periodic voyages to Acapulco, was languishing, without attempting to engage in any other kind of traffic; and poverty was reflected even in the very troops stationed in the city, who did duty unshod and without uniform (camisa), frequently committing robberies at the Chinese stores. * * *"

(La Libertad, p. 54.)

[114] Extracto Historial, Antonio Alvarez de Abreu.--Bl. and Rb., Vol. 44, p. 231.

[115] Ibid., p. 236.

[116] Ibid., p. 232.

[117] Ibid., pp. 256-258.

Also Azcarraga, La Libertad, pp. 58-59.

[118] Royal decree of October 27, 1720, enforcing that of 1718, provides further that: "The values of the lading which the said ships are to carry from the Philippines to the port of Acapulco may be up to the amount of 300,000 pesos, which must come invested strictly and solely in the following kinds of merchandise: gold, cinnamon, elephants, wax, porcelain, cloves, pepper, cambayas, and linens woven with colors (lienzos pintados), chitas, chintzes, gauzes, lampotes, Hilocos blankets, silk floss and raw silk spun, cordage, and other commodities which are not silks." These ships are prohibited from carrying silken fabrics, "satins, pitiflores, velvets, damasks, Pekin silks (Pequines), sayasayas, brocades, plain satins, grograms, taffetas; silver and gold brocades; embroidered pieces of silk stuff for (covers of) beds, the (hangings for) drawing-rooms (estrados), and women's petticoats; silken gauzes flowered with gold and silver; pattern pieces for petticoats, figured or embroidered; dressing-gowns, chimones, or made-up garments; hose, ribbons, or handkerchiefs; or any fabric which contains silk." (Commerce in the Philippines with Nueva Espana, 1640-1736, by Antonio Alvarez de Abreu; Madrid, 1736. (From Extracto Historial.--Bl. and Rb., Vol. 44, pp. 266-268.)

[119] Ibid., p. 306.

[120] Extracto Historial, Antonio Alvarez de Abreu.--Bl. and Rb., Vol. 45, pp. 57-59.

[121] For a detailed list of the goods sent to Mexico, and as to what was done with them there, see Informatory Memorial addressed to the King, Juan Grau y Monfalcon, 1637.--Bl. and Rb., Vol. 27, pp. 198-200.

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

"In regard to the first part, which pertain to the merchandise, the trade of the Filipinas is so necessary today in Nueva Espana, 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, plushes, and other silk stuffs and textiles. Of cotton, there are sinavafas, 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 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 Espana velvets, veils, headdresses, pa.s.s.e.m.e.nteries, and many taffetas, which were taken to Peru 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 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 Espana 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 get along with their own cloths from Campeche or La Guasteca, and others that they weave."

[122] "The basis of it was, and is, the funds called "Obras Pias"

(Pious Works). These are funds under various denominations, whose origin was the piety of well-meaning Spaniards, who dying rich have bequeathed large sums for the purpose of lending to deserving traders to commerce or continue their career with. The administration of these is confided to various religious and charitable inst.i.tutions, or to civil a.s.sociations--the trustees forming a board, at which the sums to be lent, etc., are determined. Their statutes differ in many unessential points; but their general tenor is the same, viz., that sums not exceeding two-thirds of the fund shall be lent on respondentia at certain rates of interest, which are fixed according to the risk of the voyages; and these, when repaid, shall be added, princ.i.p.al and interest, to the original fund. The interests are 25 per cent. to Acapulco, 15 to Bengal, and so in proportion. The total of the capitals of these establishments (there are 12 or 14 of them), amounted to about three millions and a half of dollars in 1820, of which about two millions are due to the funds on various risks, princ.i.p.ally those of New Spain: of this the major part is considered as lost by those best qualified to judge of the subject.

"The princ.i.p.al employ of these funds has been in the commerce to Acapulco; and from the facility with which capital was procured, the excessive gambling spirit which this introduced, as well as the system of mutual accommodations from the trustees of different funds, and the utter absence of the wholesome restraint of public examinations of their accounts, it has resulted that more harm than good has been done by these establishments. The original intentions are entirely perverted, a few small sums being lent to young adventurers (when they have powerful friends), but far the greatest part is employed by the trustees themselves under the name of a relation or friend." (Remarks on the Philippine Islands, and their capital Manila, 1819-1822, by an Englishman.--Bl. and Rb., Vol. 51, pp. 148-149.)

[123] Zuniga, Estadismo de las Islas Filipinas.

Historia General de Filipinas, Jose Montero y Vidal, Chapter XXVIII.

[124] It is represented that the seamen are allowed to carry each 30 pesos' worth of goods as a private investment, in order to encourage Spaniards to enter the marine service; but this ought to be increased to 300 pesos (the allowance made to the men on the fleets that go to the Indias), for more Spaniards are needed on the Acapulco trade-route--hardly one-third of the men on the galleon being of Spanish birth, the rest being Indians--and on the rivera of Cavite." Extracto Historial, Antonio Alvarez Abreu, 1736.--Bl. and Rb., Vol. 44, Pp. 307-308.

[125] Azcarraga, La Libertad, pp. 81-95.

[126] "This trade and commerce is so great and profitable, and easy to control--for it only lasts three months in the year, from the time of the arrival of the ships with their merchandise, until those vessels that go to Nueva Espana take that merchandise--that the Spaniards do not apply themselves to, or engage in, any other industry. Consequently, there is no husbandry or field-labor worthy of consideration. Neither do the Spaniards work the gold mines or placers, which are numerous. They do not engage in many other industries that they could turn to with great profit, if the Chinese trade should fail them. That trade has been very hurtful and prejudicial in this respect, as well as for the occupations and farm industries in which the natives used to engage. Now the latter are abandoning and forgetting those labors. Besides, there is the great harm and loss resulting from the immense amount of silver that pa.s.ses annually by this way (of the trade), into the possession of infidels, which can never, by any way, return into the possession of the Spaniards." (Morga's Sucesos.--Bl. and Rb. Vol. 16, p. 187).

"When, without risking any capital of his own, the merchant might thus share the enormous profits of this trade, with no more exertion than signing the invoices and letters (they were written by Indian clerks), and receiving the treasure on the return of the vessel, it is not surprising that for nearly two centuries they neglected all the other commercial advantages which surrounded them, or that such a commerce produced such merchants; the history of it and of them for that period may be confined to a few words:--they were agents of the merchants of Madras and Bengal, receiving and shipping their goods, and returning their proceeds, while their profits were confined to a large commission on them." (Remarks on the Philippine Islands and on their capital Manila, 1819-1822, by an Englishman.--Bl. and Rb., Vol. 51, p. 150.)

[127] "... This I say, then, Sire, that it is a most pitiable thing that there is not a man in all these Philippine Islands--Spaniard, or of any other nation--saving some religious, who make their princ.i.p.al aim and intent the conversion of these heathen, or the increase of the Christian faith; but they are only moved by their own interests and seek to enrich themselves, and if it happened that the welfare of the natives was an obstacle to this they would not hesitate, if they could, to kill them all in exchange for their temporal profit. And since this is so, what can your Majesty expect will happen if this continues? From this inordinate greed arises the violation of your Majesty's decrees and mandates, as everyone is a merchant and trader--and none more so than the governor, who has this year brought ruin upon the country. There comes each year from Nueva Espana a million in money, contrary to the mandate of your Majesty, all of which pa.s.ses on to the heathen of China. From here, in violation of your Majesty's decrees, cargoes are loaded for the Peruvians and the merchants of Mexico, without leaving room for those of this country--especially the poor, who are unable to secure any interest therein except for a wretched bundle which is allowed them as a cargo. If I were to go into the mult.i.tude of evils which are connected with this, I should have to proceed ad infinitum." (Letters from the archbishop of Manila to Felipe II; Ignacio de Santibanez; Manila, June 24 and 26, (1598);--Bl and Rb. Vol 10, p. 145.)

[128] Azcarraga: La Libertad, p. 68.

[129] "By this system for two centuries the South American market for manufactures was reserved exclusively for Spain, but the protection did not prevent Spanish industry from decay and did r.e.t.a.r.d the well-being and progress of South America. Between Mexico and the Philippines a limited trade was allowed, the profits of which were the perquisites of the Spaniards living in the Philippines and contributed to the religious endowments. But this monopoly was of no permanent advantage to the Spanish residents. It was too much like stock-jobbing, and sapped all spirit of industry. Zuniga says that the commerce made a few rich in a short time and with little labor, but they were very few; that there were hardly five Spaniards in Manila worth $100,000, nor a hundred worth $40,000, the rest either lived on the King's pay or in poverty. 'Every morning one could see on the streets of Manila, in greatest poverty and asking alms, the sons of men who had made a fine show and left much money, which their sons had squandered because they had not been well trained in youth.' The great possibilities of Manila as an entrepot of the Asiatic trade were unrealized; for although the city enjoyed open trade with the Chinese, j.a.panese, and other orientals, it was denied to Europeans and the growth of that conducted by the Chinese and others was always obstructed by the lack of return cargoes owing to the limitations placed upon the trade with America and to the disinclination of the Filipinos to work to produce more than was enough to insure them a comfortable living and pay their tributes. That the system was detrimental to the economic progress of the islands was always obvious and its evils were repeatedly demonstrated by Spanish officials. Further it was not only detrimental to the prosperity of the islands but it obstructed the development of Mexico." (Historical Introduction, by Edward g.a.y.l.o.r.d Bourne.--Bl. and Rb., Vol. 1, pp. 67-68.)

[130] "Trade between America and the Far East all pa.s.sed for a time through the port of Manila. This commerce was greatly desired by the Spanish colonists of Mexico, Peru, and Chile, but the selfish and rapacious merchants of Spain so influenced the policy of the mother country as to throttle this trading and prevent for more than two hundred years the legitimate development of the islands. From the early part of the seventeenth century until 1837 the Philippines were in the grasp of a protective monopoly, which not only prevented the productive development of the soil, but kept the Filipinos down to those necessarily restricted numbers which attend a population that raises nothing in excess of its daily needs. If there is one thing to be learned from this and every other study of increase of population in a fertile and tropical country it is that population increases in exact proportion to the agricultural production and export." (Dr. D. P. Barrows, in Philippine Census, 1903, Vol. 1, p. 247.)

[131] "* * * All thrifty activity was regarded as despicable. No trader had a seat in the Cortes of Aragon. As late as 1781 the Academy of Madrid was obliged to offer as the subject for a prize essay the proposition that there was nothing derogatory in the useful arts. Every tradesman and manufacturer sought only to make enough money to enable him to live on the interest of it or to establish a trust fund for his family. If he was successful he either entered a cloister or went to another province in order to pa.s.s for a n.o.ble. In Cervantes we find the maxim: 'Whoever wishes to make his fortune seeks the church, the sea (i. e., service in America), or the king's house.' The highest ambition of the nation in its golden age was to be to Europe just what the n.o.bility, the clergy, and the army were to single nations. Consequently there was an enormous preponderance of personal service in the industrial organism, and much of this was purely for ostentation. Nowhere in the world were there so many n.o.bles, so many officers, civil and military, so many lawyers and clerks, priests and monks, so many students and school-boys, with their servants. But as truly, nowhere in the world were there so many beggars and vagabonds." (The Spanish Colonial System, by Wilhelm Roscher, pp. 3-4.)

[132] Azcarraga, pp. 117-118.

[133] See Bl. and Rb., Vol. 52, pp. 307-322. Also Vidal, Historia General de Filipinas, Vol. 2, pp. 285-297; Mas, Informe Sobre el Estado de las Islas Filipinas en 1842, part II, pp. 28-31; and the Boletin de la Sociedad Economica for the different years.

[134] Jagor, Travels in the Philippines, chapter 25.