Number 1. Intention of this memorial, in which are discussed all the principal matters of the Filipinas Islands
Sire:
Don Juan Grau y Monfalcon, procurator-general of the distinguished and ever loyal city of Manila, capital of the Filipinas Islands, makes, by authority of that city, the following declaration. Since the preservation of the islands is the most efficient means for that of all the states which this crown holds and possesses in Eastern India and adjacent parts, and consequently [of all those] in the Western Indias; and as it is positively known that there is no other way of assuring this end except by the commerce conceded to the islands with Nueva España—which is in such a condition that by only reducing it, or by deranging it as regards its amount, or the manner in which it is carried on, it will be necessary that it cease; and that if the inhabitants lose what supports them, all the islands will be lost: some persons, and especially Captain Francisco de Vitoria Baraona, with less attention and knowledge than is requisite in treating a matter so remote, serious, and politic—which demands so much more than ordinary foundation for its proper understanding [on account of not understanding it—MS.]—proposed to your Majesty certain expedients or counsels; but, although these should be directed to the increase of the forces which the arms of España maintain in the seas of the Orient, in order to oppose them to the numerous enemies who are trying to overthrow our power in those seas, and have the desire to end it, one would believe that they were directed with especial purpose to weaken and obscure that power, and thereby to extinguish the best and most creditable [finest—MS.] military post that this great monarchy possesses outside of Europa. And inasmuch as the matter pertains not only to the conservation of those vassals, but also to the general subject of your Majesty’s service, your vassals, attending more to this consideration than to even that result—although the one does not suffer without the other, since some orders originating from the expedients proposed by the said Captain Francisco de Vitoria, have begun to be put in force in Nueva España—and recognizing from their beginnings how much the issues are in danger and how important it is to heed in time the dangers that threaten, and successfully to prevent them, on account of the impossibility that they can be checked later (for it is easy, at the beginning, to overcome what, when it is once introduced, is usually impossible to conquer), are attempting to represent those dangers in this informatory memorial, which they lay at your Majesty’s royal feet. In it, taking occasion from that which is most important and weighty, all the affairs of the Filipinas Islands will be touched upon, and those of their conservation, government, and commerce—and all with the truth, thoroughness, accuracy and knowledge that ought to be used, not only in general, but in each one specifically; so that once explained, in a complete report of the disadvantages and advantages existing in each point, the decision most advantageous to the service of God and of your Majesty, and to the welfare of those islands, may be made in them all. The claims made in behalf of the islands are reduced to the petitions which are presented in a separate memorial, through which the inhabitants hope to receive the favors that their necessities and condition demand.
Number 2. Condition of the commerce of the islands, and dangers from any changes therein
To begin with the fact that furnished a reason for so purposely discussing these matters: it is presupposed that the commerce of the Filipinas to Nueva España was carried on with some degree of prosperity, although with all the restriction that could be endured—albeit the royal orders were in certain cases less closely observed than seemed desirable, and it was an obligation to attend only to what demanded correction, and to what was sufficient to adjust the commerce, and reduce it to its best method. But another method was proposed which would have completely checked or suppressed it, by advising measures that would so alter the former one that, even if there were any irregularities in the old method which are avoided in this, that is accomplished by impeding and ruining the commerce; so that it will become necessary, in order not to permit one slight loss, to cause many, so irreparable that either the ruin of the islands will follow from them, or the total expense of their conservation will fall back on your Majesty’s royal treasury. And although it is always right (and today more than ever) to take care that since your revenue is not increased, it be not diminished, it is not a successful expedient to represent the saving of expense and the increase of income, if from what is gained on the one side, results on the other, either the loss of what it is advisable to defend, or the addition of heavier expenses for its defense. For there are matters which have attained so even and regular an equilibrium and balance, that, from whichever of its parts one subtracts or adds, the other side inclining is unsettled, and the structure that they compose is destroyed. One can easily understand that if your Majesty were to dispense with the payment of avería5 on the royal treasure that comes from the Indias in the war and trading fleets of their line, there would be a clear gain annually of more than half a million, in both silver and gold; but from that gain would result the failure of means to maintain the principal. And if the freighters, and those who are interested in the rest [of the trade] can with just cause excuse themselves from attending to the avería; and it is necessary that this treasure, as well as that of private persons which is brought with it, be accompanied by an armed force sufficient to resist those who have so great desire to pillage it: the alternative is either that it come without that force, and thus liable to lose more in one year than the expense for its defense in ten, or that all the cost be loaded on to your Majesty’s treasury, by which doing away with the avería would be a greater expense than would paying it. Who can deny that if the customs duties in the ports of España were to go up to fifty or one hundred per cent, they would not be worth ten times more than they are worth at present? But who would say that such an expedient would ensure the duration of commerce, and the ability of your vassals and the foreigners to maintain it? If the immediate result of increasing the duties must be the loss of the principal from which they are collected, the ruin of trade, the desertion of the ports, the impoverishment of your vassals, the depopulation of the cities, and the ruin of everything, one can easily understand that this scheme would, under pretext of increasing the royal treasury, ruin it and destroy the kingdom. These examples are no different from what is observed in the commerce of Filipinas. It is represented that, by the measures which are ordered to be put in force, the duties in the port of Acapulco alone will be increased one million seven hundred thousand pesos; and although this calculation, as will be seen, has no foundation, supposing that it did have, that increase would result in such a decline of trade there that everything would go to ruin. [In the margin: “In numbers 83, 85, and 91.”]6 And if the wealth on which that trade depends should fail, either your Majesty will alone sustain the Filipinas, or you will have to abandon them. The first is almost impossible without spending twice as much as is now spent. The second has the disadvantage that will be explained. [In the margin: “In numbers 6–44.”] Therefore the execution of the methods proposed at once carries with it irreparable injuries, which, after they have happened, will be so difficult of remedy, that the return of things to their present condition may not be possible. As this [present] condition has become established during the course of many years, it is preserved both by the wealth that those who sustain it have acquired during those years, and by merely allowing it to continue. But, if those two requisites fail, first will be experienced the loss of courage in the ruin [that will ensue], as the return [of courage] can be seen in the restoration [of the present condition].
Number 3. Commissions given to Licentiate Quiroga, and their execution
Your Majesty was pleased to order Licentiate Don Pedro de Quiroga y Moya, who went to Nueva España the past year of 635, on this and other affairs, by instructions in regard to the commerce of Filipinas, to establish a new system in the port of Acapulco, which is the point where their ships arrive. And although it is understood that the mandate was general, in order to correct and prevent the illegalities which are committed at that port in the trade of the islands by taking greater quantities of silver away from Nueva España, and bringing in more cloth from China, than is allowed by the [royal] permission; and although he was ordered to attend to this with the greatest care—not only to investigate the past but to provide for the future—and that he should issue ordinances