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Commerce between the Philippines and Nueva España
Period II
Of the debates on this commerce which occurred in the royal Council of the Indias up to the year 1640, and the commissions which on that account were entrusted to Señor Don Juan de Palafox, who, being an official of the [India] House, went as bishop of Puebla de los Angeles
Justification of the maintenance of the Philipinas Islands and their commerce
Point second

Оглавление

As for the permission [to trade] which the islands have enjoyed since 1604 – which is to the amount of 250,000 pesos that may be carried in merchandise, and 500,000 pesos which may be sent back in silver, on the two ships which are allotted for that trade – the islands have petitioned his Majesty that he would graciously increase the 250,000 pesos’ worth of merchandise to 500,000, and the 500,000 pesos of silver to 800,000; this is referred to the inquiry of your illustrious Lordship. And although I have in the said memorial discussed the main arguments for this request, I will, since these are related to the entire subject of those islands, here reduce them to six or seven principles.

First: because, as I have stated and proved, this commerce began in the year 1565, and was carried on without any restriction of its amount until 1604, when it was limited to the amount above stated. The islands could endure this limitation because they then possessed three attributes which they now lack. The first was, that the citizens were rich and strong through having enjoyed free trade almost forty years; and therefore they possessed, and have had thus far, the means to bear expense and losses. But since, from their trade being reduced to so small an amount, it resulted that their profits were diminished and their obligations increased; their fortunes have so steadily declined that, if the trade permitted to them is not increased, they cannot improve their fortunes, nor even preserve the remnants of these. The second was, that those islands had few enemies, and were less infested and harried by them [than now]; for until the year 1600 neither did the Dutch cause any anxiety in those seas, nor was there any other nation which visited them with hostile acts or fleets. Since that year the profits obtained from the cloves, the plunder of the ships from China, and friendly relations with the Japanese, have all been such inducements to the Dutch to frequent the seas in that region that they have kept the [Philipinas] Islands continually in arms, rendering them an active military frontier. Hardly a year has passed without a sea-fight; and, moreover, the Dutch have incited the Mindanaos, the Japanese, and other barbarians also to make war on us. The result has been that the citizens [of the islands] have spent their fortunes in serving his Majesty, which they have done with their property and persons – as is described in the said memorial, nos. 59 and 60. And as the profits from their commerce have become less, and the expenses for war greater and more continual, their poverty has become so great that they are in need of more favor than they have thus far enjoyed; for if (as has been proved) their commerce only is adequate to support those islands, and that which they have hitherto carried on is steadily declining, it must necessarily be increased, in order that they may not perish and be destroyed. This is confirmed by the third of the circumstances mentioned above, the excessive and enormous losses of property which the citizens of Manila have suffered since the year 1575 – which are mentioned, in due order, in the said memorial, no. 107. Some of these misfortunes occurred before the year 1604, and, as until then the commerce was free, they had some reparation for their losses; but those which have occurred since then have had, on account of the limitation of trade, but little relief and scanty reparation. The result has been that, although the injurious effects and great loss have not been noticed every year, they are in the course of all those years so keenly felt that a special means of restoration is needed; and there can be no other save that of increasing their commerce, for their relief must come from the same quarter as that whence their losses came.

Second: [This relief should be given] because when the permit for 250,000 pesos was granted there were in Manila fewer citizens and soldiers; and now the number of these and the [size of the] city have increased, and more aid has become necessary, not only with the course of the thirty-six years which have elapsed, but because there is more war. It appears that those who are occupied in his Majesty’s service on pay, including those who have been sent to the islands and those who are born there, number 3,338 Spaniards, and 2,540 Indians of various nationalities – not counting the citizens, or the traders, or other persons who are pursuing various crafts (as is stated in the said memorial, no. 55) – which is twice the number employed in the year 1604. And as it is requisite that all participate in the commerce, and that – although it must be through the medium of the citizens, among whom the amount allowed is distributed – all persons may have some share in it, it becomes necessary, since there are twice as many people as there formerly were, that the amount of trade permitted should also be doubled; for if this be not done, and that which formerly belonged to few be shared among many, no one will have enough for his needs.

Third: this argument being sufficient for the increase and enlargement of the amount permitted, it is asserted that this amount is less than what was first granted; for, as concerns the distribution (which is made by toneladas), the governors have introduced the practice of giving these to hospitals and convents, and often to the mariners and artillerists, to those who go on expeditions and embassies, and to other persons. Thus is consumed a large part of this permitted amount, and consequently of the 500,000 pesos’ worth of returns – from which are deducted the legacies, donations, contributions for charitable purposes, wages of the seamen and soldiers, wrought silver, and all the rest that is shipped (as is ordained by the decree of 1606, cited in the said memorial, no. 90), by which, it is at once evident, the amount granted by the permission is diminished to just that extent.

Fourth: even if it be granted that some illegalities have been committed in that trade, these must have been in exporting more merchandise and bringing back more silver than what the permission decreed; and the cause must have been the pressing need of the inhabitants. For since their numbers are greater, and the amount of trade allowed them is less in quantity, and the share of each one is less because there are more persons concerned in it, the amount that some receive will be so little that it will compel them to infringe the permission, and to export or bring back more than is allotted to them, in order that they may be able to support themselves and meet their obligations. These illegal acts will cease when the amount permitted shall be increased and extended; for, as each person will have a share sufficient to employ his capital, he will not expose it to risk, or carry goods without registry. With this, not only will the inhabitants be enriched, but the illegalities will cease; and, as the royal dues will increase, his Majesty will not have to supply anything for the maintenance of the islands, but instead will be much profited by them.

Fifth: because the main reason for having limited this commerce was the injury which has resulted from it to Sevilla, not only with the merchandise which it carries to Nueva España, but with the silver which it drains thence – as has been noticed in the said memorial, nos. 71–79 and 116–119. And although this difficulty is there solved, and this concession is thus made easier – because when the cause ceases, the effect ceases also – another argument is here adduced; this is as follows. The [accusations of] illegal acts in that commerce which are made public are either true or false; if they are false, our object is attained. But, if they are true and those things are done, how can it be said that, in place of the 250,000 pesos [allowed], four millions’ worth of merchandise come to Nueva España; and that for the 500,000 pesos of returns they carry ten millions in silver? What difficulty is there in [allowing that for] the four millions that are shipped, a half-million should come under registry, and one out of the ten millions that are returned should go registered, and that on this million and a half the royal dues be collected, since actually more than 750,000 pesos are carried each way without paying these? And even if those illegal acts be checked, and it be granted that for the 250,000 pesos are shipped 500,000, and for the 500,000 pesos of returns a million be carried: if the excess [now] goes and comes without registry, how much more certain is it that the goods will be registered and the royal dues paid? But this argument is made even stronger by the great probability that the excess over the amounts allowed only extends or can extend to the investments of the shippers; and since these actually are only citizens of Philipinas, the citizens neither have four millions to export, nor can they get ten millions in returns; for in this way they would be, in four years, at the rate of six millions of profits a year, the wealthiest in the world, while they are at this time the poorest. And if that result is not evident, how can the cause [assigned] be regarded as infallible? Let us grant, then, that they will infringe the rule if besides the amount permitted as much more be carried; and even that is much. But if this permission were ample enough to include the funds of all those who lade goods, it is evident that the infractions of law would cease, and that it would not be possible to have them, or means to commit them; and this becomes more credible, if the urgency with which this increase of the permission is requested be noted. And how is it to be supposed that those who are carrying their goods without registry (which is more profitable) prefer to carry them registered, except in order not to exceed the privilege that is given to them? And thus it is certain that if a more extensive permission be granted to them, there will not be illegal shipments, nor will the injury [to Spanish trade] be greater, nor as much as is now assumed.

The sixth and last argument is reduced to what was proved in the said memorial, nos. 101–106: that the profits of this commerce, on account of the many burdens imposed upon it, are more limited than has been understood; and that in order for the exporters to make any gain, they need more liberal concessions. For [even] if the gain be thirty to forty per cent, it is consumed in costs and management, if the amount laden be small; and the increase of the principal must incur almost the same costs, for they will only be greater in [paying] the duties. The exporters demand with justice that they be authorized to ship twice as much merchandise, since the benefit that they will experience is evident, and no injury will result, as has been proved.

I observe that it would seem a very proper measure to place a limit to the permission only on the returns in silver, and that the shipment of merchandise be free, under the direction of the governor. One reason is, that by this means the amount of merchandise would remain limited; since it is plain that the citizens will not leave their funds in Nueva España, and that therefore they will not carry back more than they are entitled to in the returns [for their goods]. The other, because in this no innovation arises, but it accords with the usage which has hitherto prevailed, the lading being regulated more by the burden of the ships, their capacity in toneladas, and the bulk of the commodities, than by its actual and intrinsic value; and giving opportunity for the registration of the products of the country itself, even outside of the permission, as will soon be discussed. And if no difficulty has been found in this practice, and if the governors and the viceroys have overlooked this, and if Don Pedro de Quiroga, with all his severity, never paid any attention to the merchandise being in excess of the 250,000 pesos that were allowed, unless the goods were shipped unregistered, or incorrectly appraised: it is not a new or injurious arrangement that such a method be continued, and that the limitation of the amount allowed be imposed only on the silver that is carried as returns.

The Philippine Islands, 1493-1898, Volume 30 of 55

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