50 THE ECONOMIC CONDITION OF THE PHILIPPINES 



withstanding this, they, with their cost!}' cargo, sometimes fell 

 a prey to privateers, pirates, and the warships of hostile powers. 

 In June, 1743, Lord Anson, on board the Centurion, captured 

 the Nuestra Seriera de Cabadonga, a much larger galleon, com- 

 manded by Don Jeronimo de Montero, off Cape Esj)iritu Santo, 

 on the Samar coast. 



The captain of a galleon, who bore the title "general," re- 

 ceived in the Acapulco trade a percentage amounting to about 

 $40,000 for each voyage. The first officer also was paid a com- 

 mission. 



Toward the end of the last century the profits began to de- 

 cline, decreasing more and more; sometimes the ships even 

 found the market in Acapulco perfectly flat, without any de- 

 mand. This was chiefly because of American traders and 

 English merchants supplying all the requirements direct from 

 Europe; but smuggling also played its part. Thus it often 

 happened that the ships were unable to return for long periods 

 of time. The last nao which left Manila in 1811 did not return 

 from Acapulco until 1815. 



In 1785 the Real Compania de Filipinas (Royal Company of 

 the Philippines) was started, having its seat in Cadiz and with 

 a capital of $7,000,000. This company more or less monopolized 

 the whole trade until, on August 15, 1789, a decree was issued 

 permitting European vessels to import Asian produce and to 

 export only such Spanish, Philippine, and American produce 

 as the compania had imported. A second decree, dated October 

 15, 1803, deprived the compania of still further privileges and 

 declared the harbor of Manila open to all nations. Certain 

 rights, however, the compania still retained. In 1814 absolute 

 liberty of trade was allowed to the whole world. As the result 

 of the introduction of the new Codigo de Comercio, July 15, 

 1833, the privileges of the compania ceased altogether in 1834. 

 A year later the exportation of manufactured tobacco and cigars 

 was also permitted. 



Until the close of the last century (1792) foreigners were not 

 allowed to settle in Manila (although La Perouse, 1787, mentions 

 the French merchant Sebir in connection with that town). As 

 soon as the permission was granted the first foreign houses were 

 established, and the number has continually increased, so that 

 today the external trade is almost exclusively in foreign hands. 

 The year 1851 saw the establishment of the Banco Espanol 

 Filipino ; but by reason of bureaucratic formalities and the strict 



