48 THE ECONOMIC CONDITION OF THE PHILIPPINES 



port and trading place in the East, and forms the center of 

 the trade between China, Japan, the Dutch archipelago, and 

 Australia. The position of the Philippines is likewise extremely 

 favorable for the west coast of America, and Manila should be 

 the natural mart of eastern Asia. That it does not already oc- 

 cupy this position is owing to the bad system of administration 

 on the part of the government. Had it been otherwise, I am 

 exceedingly doubtful whether Hongkong could ever have reached 

 its present state of importance in the face of Manila. 



During the northeast monsoon most ships going through the 

 straits to China run right across to Luzon to get protection 

 against the strong adverse winds. It would therefore be quite 

 in their course to touch at Manila, but they avoid the port for 

 the reason stated above — the chicanery of the customs officials. 

 For the same reason the regular steamers between Hongkong 

 and Australia steam right past the Bay of Manila without run- 

 ning in. Passengers from Manila to Australia have therefore 

 first to cross to Hongkong, and then take passage from there, 

 returning again directly past Manila and Zamboanga (so close 

 to the latter that the people may almost be recognized on the 

 shore), to the first touching place — Thursday island or Port 

 Darwin. 



After 1572 trade commenced also between Manila and New 

 Spain, which for individual Spaniards in Manila proved very 

 profitable. Between 1590 and 1595, however, the citizens of 

 Manila petitioned several times to the King for liberty of trade, 

 but always in vain ; the restriction on commerce remained as 

 before. In 1610 the Seville merchants begged that the trade 

 between Manila and New Spain might be closed, as they wanted 

 to do business direct by the Cape with Manila without the inter- 

 vention of the American colonies. This was, nevertheless, im- 

 possible, on account principally, no doubt, of the fact that the 

 Acapulco silk trade gave occupation to over 14,000 persons in 

 Mexico. 



Galleons were sent every year from Manila to Navidad, and 

 from 1602 to Acapulco, containing merchandise to the value of 

 $250,000, the maximum permitted by the government, and 

 bringing back double the price. Later this maximum rose to 

 $300,000, and in 1734 to $500,000. Finally the amount reached 

 $600,000, and the home freight double the value. From Manila 

 the galleons, called news, took spices, cotton fabrics, silks, etc., 

 with gold articles and other products of China, India, and the 

 Philippines. Fifty thousand silk stockings are also especially 



