Part 2 (1/2)
Restrictions.
The continued protests of the Spanish merchants finally led to the prohibition of the s.h.i.+pment from New Spain to Peru or Tierra-Firme of Chinese cloths brought from the Philippines. [103] ”And in order that what was prohibited in one way might not be obtained in another, decrees were despatched on February 6 and December 18, 1591, ordering the total cessation of commerce between the islands and Peru. That was later extended to Tierra-Firme and Guatimala, by decrees of January 12, 1593, and July 5, 1595, forbidding the trade of China and its merchandise to all the Indias, except to Nueva Espana, which was left open to the Philippines.” [104] In 1593 a decree absolutely limited the trade between Mexico and the Philippines to 250,000 pesos annually for the exports to Mexico, and to 500,000 pesos for the imports from Mexico, [105] to be carried in two s.h.i.+ps not to exceed three hundred tons burden. [106] It was also decreed that ”no person trade or traffic in the kingdom or in any part of China, and that no goods be s.h.i.+pped from that kingdom to the Philippine Islands, on the account of the merchants of those islands. The Chinese themselves shall convey their goods at their own account and risk, and sell them there by wholesale.” [107] Further, it was ordered that ”the Chinese merchandise and articles which have been and shall be s.h.i.+pped from Filipinas to Nueva Espana, can and shall be consumed there only, or s.h.i.+pped to these kingdoms after paying the duties. They can not be taken to Peru, Tierra-Firme, or any other part of the Indias, under penalty of confiscation....” [108]
”Fortunately,” says Azcarraga, [109] ”that tyrannical provision, meeting with the opposition of the private interests, which it so greatly injured, and among which were included those of the authorities and officials who were called upon to enforce it--was prevented from being carried in force, and thus, in reality, the Acapulco trade continued unlimited until the year 1604, when, by another decree the enforcement of previous laws was ordered.” [110]
However, evasion of the law was a common practice, and the galleons usually carried very much more cargo than was allowed. The abuses became so apparent that in 1635, at the instigation of the merchants of Cadiz and Seville, a special commissioner was sent to Manila, [111]
who strictly enforced the law. And, in order to prevent all evasions of the law, it was decreed in 1636 to the viceroys of Peru and New Spain ”to prohibit and suppress, without fail, this commerce and trade between both kingdoms, by all the ways and means possible.” [112]
The rest of the seventeenth century found Manila still engaged in a great commercial controversy with the merchants of Spain; the endless number of pet.i.tions sent from the Philippines to the king bears ample testimony to the magnitude of the problem. [113]
Further pet.i.tion from Manila resulted in the decreeing in 1702 that in the Philippine Islands two s.h.i.+ps should be built, each of 500 toneladas burden, which should transport the goods permitted to that trade; that the citizens should be authorized to convey in these to Nueva Espana the amount of 300,000 pesos in their products and other commodities, and on the return to the Philippines to carry 600,000 pesos in silver, allowing 100 per cent gain minus the duties and expenses. [114] It was further provided in the decree that in the enumeration of the traders should be included the Spaniards in the country, and the military men stationed in the port of Cavite, excluding, however, ecclessiatical ministers, whether secular or regular, and foreigners. [115] And he who had no goods to lade was not allowed to give up his right in favor of a third person, but a new distribution was made. [116]
Induced by protests by Cadiz and Seville based on the ground that the galleons carried more cargo than allowed, and that the great abundance of silk in America had caused the decrease of the textile industry, thus causing the decline of factories in Toledo, Valencia, Seville, and Granada, a royal decree of January 8, 1718, prohibited the carrying in the galleon of silk, woven or raw, from China. [117] The only trade which could be carried on was in linen goods, porcelain, wax, cinnamon, cloves, and other goods which were not brought from Spain. [118]
More pet.i.tions came from Manila, and, finally, a royal decree of June 17, 1724, repealed that of 1720, and allowed once more the importation of Chinese silk. [119] An attempt on the part of the Viceroy of Mexico to put a stop to the importation of Chinese silk resulted in the royal decree of April 8, 1734, which, besides allowing trade in silk, increased the amount of the trade permitted to Manila to 500,000 pesos of investment and 1,000,000 of returns. [120]
The galleon trade continued during the rest of the eighteenth century, until 1811 when the last galleon sailed from Manila, and 1815, when the final return voyage was made. The next period in the history of Philippine commerce is characterized by the opening of the country to foreign influence.
Before, however, going into the next period let us see who were ent.i.tled to partic.i.p.ate in the galleon trade. The right to s.h.i.+p was known as boleta or ticket, and there were as many boletas as divisions in the s.h.i.+p. On the average there were 1,500 such divisions, each worth from 200 to 225 pesos, a good portion of which were given to the governor-general, the religious corporations, the regidores, the favorites and privileged, and the widows of retired Spaniards. Those who had no capital to invest in merchandise sold their boletas to the merchants, and in spite of prohibition, this practice continued with impunity. The cargo consisted chiefly of Chinese and Indian silk and cotton cloths, and gold ornaments, and were sold at one hundred per cent profit in New Spain. [121] Almost all the merchants secured loans from the ”Obras Pias,” [122] which were funds donated for pious purposes, and two-thirds of which loaned at the following rate of interest: for Acapulco, fifty per cent; for China, twenty-five per cent; for India, thirty-five per cent; the rest of the funds formed the reserve. Besides the merchandise and silver the galleons transported the official correspondence, arms, troops, missionaries, and public officials. The officers of the galleon were highly paid. The commander, who had the t.i.tle of general, made 40,000 pesos per voyage, the pilot about 20,000, [123] and the mates, 9,000 each. Most of the crew were natives. [124]
Effects of the galleon trade
What were the effects of the Manila-Acapulco trade upon the economic growth of the Philippines? There are two answers to this question. On the one hand, those who believe that the policy of restriction was necessary in order to protect the industries of Spain, of course, say that such policy was beneficial. Furthermore, it is alleged that no other economic activity could have been possible during the early part of Spanish domination because, at the time, there were no products of the country which would serve as the basis of a rich and flouris.h.i.+ng commerce; there was no capital sufficient to exploit the natural resources of the Philippines. And to show that Manila was benefited by acting as a distributing point of Oriental goods, the prosperity of Singapore and Hongkong is cited; what prosperity would these cities enjoy if it were not for the fact that they act as entrepots of the East? [125] The very retention of the Philippines depended upon its ability to support itself in part, and the profits from the trade as a whole made that possible.
On the other hand, the galleon trade absorbed too much of the attention of the Spaniards, [126] and caused the neglect of Philippine extractive industries, especially agriculture. [127] It attracted the Spaniards into Manila, and, thus, left the rest of the country without the benefit of whatever good they could have done; and in Cebu, the point was reached when, at one time, there was not a sufficient number of persons to fill the offices of alcalde and regidores, and it was necessary to a.s.sign to the city a few boletas from Manila. [128]
Lastly, it enriched only the few, [129] and the resulting economic depression checked the growth of population. [130]
Not everything, however, is to be attributed to the influence of the galleon trade; a good deal of the neglect of the country's natural resources was due to Spanish dislike of industrial activity. Azcarraga explains that characteristic by saying that the eight centuries of continuous struggle to drive out the Moors from Spain created a chivalrous spirit and a love of risky undertakings; the discovery of the New World furnished a wide sphere of action to that adventurous spirit, and the resulting emigration to the newly discovered lands depopulated the Peninsula to such an extent that labor could be had neither for the factories nor for agriculture. ”The current of precious metals flowing into Spain from the mines of Mexico and Peru fascinated the Spaniards; created easy-going and indolent habits; held them off the mechanical arts, formerly called servile, and all desired to gird the word and enjoy the spoils of conquest.” [131]
This was the real cause of the decadence of Spanish industries, and not, as alleged by the monopolists of Spain, the compet.i.tion of the Manila-Acapulco trade. With such causes operating to check development, it is no wonder that Philippine industries were in a primitive state down to the last years of Spanish domination.
V. THE NINETEENTH CENTURY AND ECONOMIC DEVELOPMENT
Towards the close of the eighteenth century there were events which indicated the coming of greater liberty. Direct communication was established in 1765 between Manila and Spain by means of a wars.h.i.+p which was to sail annually from Cadiz, with European goods, and to come back loaded, not only with the products of the Philippines, but also with Oriental merchandise, including goods from China and j.a.pan. However, the innovation was not well received in Manila, due perhaps to the monopolistic habit of the merchants, and, in 1783, these annual voyages were discontinued. [132]
The coming of Governor Jose de Basco y Vargas marked a new era in the economic history of the country, for two important events happened during his term: the establishment of the Sociedad Economica de Amigos del Pais, in 1781, and of the Real Compania de Filipinas, in 1785. These may be considered to be the most serious attempts of Spain throughout her rule, to develop the natural resources of the Philippines.
The Sociedad Economica de Amigos del Pais.
Basco's idea was to make the Philippines economically self-sufficing, and not dependent on Mexico. For this reason, he encouraged the development of agriculture by offering prizes to those who would excel in the cultivation of cotton, spices, sugar and silk; those who would open up the various kinds of mines; those who invented useful things, and those who excelled in the arts and sciences. Likewise, he issued circulars and pamphlets explaining the method of cultivating the different Philippine crops. In order to get the community's co-operation in carrying out his economic plan, he induced the King to issue a decree establis.h.i.+ng the Economic Society. In spite of serious opposition on the part of many, the society was auspiciously inaugurated in 1782. It seemed, however, as if Basco's ideas were too advanced for his time, for the society led a declining life up to 1822. A memoir published by the Society [133], and containing a list of its achievements, shows its activity to have consisted of discussions of economic subjects; the publication of pamphlets dealing with the cultivation of coffee, sugar, indigo, silk, gutta-percha, hemp, cacao, and other plants; the offering of prizes to persons who succeeded in weaving cloths, making dyes, inventing hemp-stripping machines, and contributing other useful things to agriculture; and the introduction of agricultural implements of various kinds from the United States. The Society lived for over a century, till 1890. Another means resorted to by Basco to free the Philippines from its dependence on Mexico was the establishment of the tobacco monopoly by the government. This proved to be a good source of revenue, and, at the same time, was instrumental in bringing into cultivation large tracts of land. However, the evils attending it were many; the abuses of the government officials in enforcing the regulations, and in trying to make profits for themselves; the lack of incentive on the part of the producer to improve the quality of his tobacco; the existence of smuggling and bribery, and the poverty of the farmer; all these were attributed to the tobacco monopoly. [134]