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in others, as they have an understanding with the surrounding kings. For the king of Daquen gives them eighty thousand ducados annually in order to have them protect his country, and so that his vassals may go and navigate safely in those straits on their trade and traffic with the islands surrounding his kingdom. All of that obliges the said city of Manila and its other islands to be more watchful and to maintain larger forces and supplies. For were there neglect in this, the power and invasion of the said Dutch, who have so frequented and learned the said straits (of which they have so thoroughly taken possession and with so many forces, as above narrated), could be feared.

      Although the said city and its inhabitants have been and are always very careful and vigilant (as is very well known); defending, at the cost of their lives and goods, the land from the incessant bombardments, surprises, and attacks of the said Dutch, with the forced obligation of very generally keeping their arms in readiness all the time; enduring a servile life full of annoyance and danger, although they could leave it, and it would be better and more worth living if it were less grievous, and free from so many dangers and difficulties: nevertheless they endure them, in consideration of the service of your Majesty, and in continuation of the many services which they have rendered in the defense and preservation of that country; and hoping that the greatness and liberality of your Majesty will protect and relieve them, so that they may accomplish their purpose better. Particularly do they ask that you order to be repealed the collection of the two per cent, the imposition of which was ordered by a decree of the former year six hundred and four on the merchandise exported from the said islands to the said Nueva España, in addition to the three per cent paid on them by the merchants of the said city—which heard and received notice of the said royal decree in the year of six hundred and seven, while Don Rodrigo de Vibero was governor. At that time the decree was not made effective or fulfilled, as the difficulty and great disadvantages that accompany it were recognized. Consequently, it remained in that condition until the year six hundred and eleven, when the collection of the said duty was again charged to Governor Don Juan de Sirva [i.e., Silva]. He, trying to carry out its provisions, recognized the same difficulties, for the many reasons advanced by the city, which were so just and relevant that they obliged him to call a treasury council. Having there discussed and conferred upon those reasons, and it having been seen that they were so urgent and necessary that they strictly prevented and ought to prevent the execution of the said royal decree of 604, he suspended it for the time being, giving your Majesty notice [thereof]. The decree remained in this condition until the year six hundred and twenty-five, in which the royal officials again discussed the matter of the collection of the said two per cent, during the government of Don Fernando de Silva. He, recognizing the same obstacles, and that those obstacles were much greater then because of the worse condition and the notable change and damage to which the affairs of the said city had come—the property, traffic, and means of gain of its inhabitants—with a great reduction and difference from that which they had in the said year of six hundred and seven, concurred with what had been provided by his predecessor, the said Don Juan de Silva, and ordered that no innovation be made in it. The same was done by the governor who succeeded him, Don Juan Niño de Tabora. Thus, the said governors, as each confronted the matter, always came to see very plainly the said difficulties, which at present are not only of the above-mentioned character, but are impossible to overcome because of the condition of affairs, the poverty of the inhabitants, and the great decrease and diminution of the trade and commerce of former times. That is given more prominence by the efforts of the visitor, Licentiate Don Francisco de Rojas, who made strenuous efforts to have the collection of the two per cent carried out. Nevertheless, he saw with his own eyes the said disadvantages that resulted from the said collection. One of them was the resolution of the inhabitants not to export their goods and merchandise; nor could they do so, because of the great losses, both past and present, which they have encountered. This is the greatest damage that can happen to the royal treasury; for if the export and commerce ceases, not only will the said two per cent be lacking, but also the old three per cent which has always been paid, as well as the other three per cent which was lately imposed upon the merchandise which the Chinese Indians bring to the said city and the Filipinas Islands. Accordingly, if the commerce of the islands with Nueva España fails, it is certain and infallible that that of the said Chinese, which forms the whole export to Nueva España, will also fail.

      Therefore, the said visitor, notwithstanding the great desire which he showed of putting the said collection into execution, did not dare to do it; but considered it better to suspend it, and report to your Majesty. Although he tried to have it collected as a voluntary service for the future, the citizens, seeing their great lack of wealth, could not conform to that measure, although for that time only they gave a subsidy of four thousand pesos, on condition that it should not serve as a precedent for the future, and that there should be no further talk of the said collection [of the said two per cent] until, after your Majesty had examined it, a suitable decision should be adopted. They petition your Majesty to be pleased to consider the very necessary and urgent causes and reasons why the said collection of the said two per cent should not be carried on, but that its execution be abrogated, which are as follows:

      First, that the motive and cause declared in the said decree of six hundred and four for the said imposition, was the declaration that there was suffering because of the great profits of those who were trading and trafficking in the Filipinas commerce. It was said that the profits were one hundred per cent, and at times two hundred. Although the said Sangleys, antecedent to the said year of six hundred and four, brought the merchandise from China to the said city, and sold it at prices so low that when taken and sold in Nueva España it allowed a very great profit: still that ceased many years ago, from the said year of six hundred and four, when the Dutch enemy and pirates began to continue in and infest those islands with many different plunderings of the merchandise that the Chinese ships brought to the said city of Manila. On that account the said trade has gone on diminishing from day to day, very fast and steadily, to the pass to which the said Dutch have brought it by their pursuit and pillaging of the said Chinese ships. From that has resulted the ruin of the said commerce, and for the same reason the profits of it [have declined] to so great a degree that scarcely can one now buy one pico of silk for the price that he formerly paid for two and one-half picos. This has been the reason why, since the merchandise of the Chinese was lacking to the inhabitants for their investments, they have had to buy the goods from the Portuguese of Macan, at prices so high and excessive that they make no considerable profit in Nueva España. Consequently, the profits that the inhabitants of Manila formerly had have come to be made by the said Portuguese of Macan. Thus the reason and motive for the said royal decree has entirely and surely disappeared; and this same fact ought to do away with its ruling.

      The second reason also is founded on the expense and cost that had to be incurred for the security and defense of the trading ships from the said islands to Nueva España, with the fifty soldiers, military captain, and other officers; that the said ships had to be of a certain tonnage; and that for this reason of the said expenses and costs, the said decree ordered the imposition of the said two per cent in order that it should be unnecessary to have recourse to the royal treasury. It ordered the proceeds therefrom to be deposited in a separate fund and account, for the said expenses which had to be incurred with the said ships and their crews. That reason likewise has had no effect, for the said expenses have not been made, nor are they made; nor do the said military captain, soldiers, or other officers sail in the said ships. Neither are the said ships—those that there are—of the said burden and tonnage, but smaller. Therefore the said expenses and costs cease, upon which the said decree is grounded; accordingly, that which is ruled and ordered by it ceases, for the reason stated, and, indeed, should cease.

      Third, because by the former year of six hundred and eleven, the said governor, Don Juan de Silva, seeing the unsatisfactory method and arrangements existing for the collection of the said two per cent, tried to supply it—and did so—by the method that he thought least harmful, and of greater profit to the royal treasury—namely, to impose in its stead another duty of three per cent on the merchandise brought by the Chinese to sell in the said city of Manila. But, although the said imposition is ostensibly on the said Chinese, it comes, in fact, to be imposed on the inhabitants of Manila themselves; for the latter, being the purchasers, necessarily have to pay more, the Chinese sellers taking into consideration the new charge and imposition which has been levied on them. Consequently, the said

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