and not only innocent, but that it is pious, it is useful, it is holy; and all this whether considered with reference to its laws, to its maxims, or to its objects. Those who have attempted to detract from its merits, have only called down upon their lies and contradictions the contempt and detestation of all good and impartial men." It was not until 1773 that the Society of Jesus was suppressed by orders of the Pope.

Most Holy Father,

Your holiness is well aware that the first duty of a sovereign is to watch over the peace and preservation of his state, and to provide for the good government and internal tranquillity of his subjects. In compliance with this principle, I have been under the imperious necessity of resolving upon the immediate expulsion of all the Jesuits who were established in my kingdoms and dominions, and to send them to the state of the church, under the immediate, wise, and holy direction of your most holy beatitude, most worthy father and master of all the faithful.

I should fall under the obliquy of throwing a heavy charge upon the apostolic privy council, by obliging it to exhaust its treasures in the supporting of those poor Jesuits who happen to have been born my vassals, had I not made previous provision, as I have, for the payment to each individual of a sum sufficient to maintain him for life.

On such understanding, I pray your holiness to view this my determination simply as an indispensable step of political economy, taken only after mature examination, and the most profound reflection.

Doing me the justice to believe this (as I pray you will), your holiness will assuredly grant your holy and apostolic benediction on this measure, as well as on all my actions, which have for their object, in the same way, the promotion of the honor and glory of God.

(Signed) Yo EL REY

1 Robertson, Letters from Paraguay, II, 83.

ECONOMIC AFFAIRS OF THE INDIES

46. ROYAL DECREE PROHIBITING TRADE BETWEEN THE INDIES AND CHINA 1

[Madrid, February 11, 1593. Blair and Robertson, The Philippine Islands, VIII, 316-318.]

The restrictions enumerated in this royal decree on the commerce between China and the Indies are by no means either unusual or extraordinary. They were in keeping with the notions of the economic doctrines of the sixteenth century. Colonies existed, it was held, primarily for the purpose of advancing the interests of the mother country. In the following decree the merchants of the mother country, and more especially those of Seville, were given the preference over those of the Indies.

The King: Inasmuch as, whenever we have promulgated ordinances prohibiting trade between the Western Yndias2 and China, and regulating that of the Philipinas, I have been informed that there has been neglect in the execution thereof; and that, as the merchants and other persons in the Northern Sea who trade in these our kingdoms of Castilla, and in the Yndias, have suffered so many losses during past years, and those engaged in the profits of the Chinese trade have gained so much, the latter has increased greatly, while the commerce of these my said kingdoms has declined, on which account both these kingdoms and my royal income have received great damage: therefore, since it is so important that the commerce of these my said kingdoms and of the Yndias be preserved and increased, and that there be quite usual communication and trade between them, I have, with the concurrence of my royal Council of the Yndias, determined to prohibit by new orders as by this present I do prohibit, forbid, and order - in the

1 Reprinted by permission of the publishers, The Arthur H. Clark Company of Cleveland, from The Philippine Islands, 1493-1898. Cleveland, 1903 to 1909. 2 The word "Indies" was not infrequently spelled Yndies or Yndias in Spanish.

future, in any manner and under any circumstances whatever, any vessel from sailing from the provinces of Peru, Tierra Firme, Guatimala, Nueva España, or any other part of our Western Yndias, to China, for trade or traffic or for any other purpose. Neither can they go to the Philipinas Islands, except those from Nueva España, which are permitted to go by another decree of this same date. We have ordained that, should this be done, such vessel will be regarded as confiscated, with all its money, merchandise, and other cargo. One third part of all of this shall be applied to our exchequer, a second third to him who shall give information thereof, and the other third to the judge who shall pass sentence. And further, we forbid that any merchandise brought to the said Nueva España from the Philipinas Islands be transferred to the said provinces of Peru and Tierra Firme, even when the duties imposed on such merchandise have been paid. For our purpose and will is that nothing from China and the Philipinas Islands be used in the said provinces of Peru and Tierra Firme, except what may be there at present, and for which we allow them four years, to be determined from the date on which this our decree shall be promulgated. For this purpose every person shall register what he has at present before the justice of the city, town, or hamlet, where he lives, or of which he is a citizen. Henceforth whatever of the aforesaid merchandise shall be taken to the above-named provinces, or whatever shall be found in the possession of any person whatsoever, outside of the said register, or after the conclusion of the above timelimit, we order that it be confiscated also, and divided and shared as above stated. But we permit them to bring to these kingdoms, anything of the above-named articles that they may have had hitherto, within the limit of the said four years. I order my viceroys of Peru and Nueva España, my governor and captain-general of the Philipinas, the presidents and auditors of my royal audiencias of the Yndies, and all other magistrates therein, that they observe and fulfil this our decree, strictly, inviolably, and punctually; and that they execute the penalties contained herein without any remission or dispensation whatever, as is thus my will, and as is fitting for my service. They shall promulgate it in all places where this shall be necessary and desirable, so that all may have notice of it, and none plead ignorance. Given in Madrid, February eleven, one thousand five hundred and ninety-three. I THE KING

47. EXCERPTS FROM TWO LETTERS FROM THE COUNT OF MONTEREY TO THE KING OF SPAIN CONCERNING THE TRADE OF NEW SPAIN 1

[May 15, 1602. Blair and Robertson, The Philippine Islands, XII, 61-69.]

The Count of Monterey, the viceroy of New Spain and later of Peru, dealt in the first of these letters with the complaints of the merchants of Peru. He agreed with them that it was not the merchandise of China but the inadequate regulation and control of that trade which would and did injure the trade of Peru with Spain. In the second he dealt with the large flow of money from New Spain to the Philippine Islands. He did not favor stopping this flow of money, but urged that the rules and regulations governing it should be more strictly enforced.

The merchants of the corporation of Los Reyes, Peru, declare that, in the commerce between that kingdom and this one, [Nueva?] España, they regard it as so necessary, that should it cease, it would mean complete destruction. On this account it must be preserved, and to this end all the means possible must be sought out.

Further, they declare that the merchandise brought to the kingdom of Peru from China is not the cause of this decline of commerce between the Yndias and España, but the inadequate regulation of the war and merchant fleets, and the winter seasons, which are the utter ruin and destruction of the merchants. This is plainly evident, since before the wars with Ynglatierra, when this matter was properly attended to, the commerce was extensive and profitable — although there was no need of so much merchandise as there is now, when the population of Peru is so much larger than at that time and the merchants not only of España but of Peru were amassing wealth. But now they are not doing so, for the reason that is here named. All is going to destruction: payments cannot be met when due; and duties are excessive, for in order to send money to España, the shippers pay seven and one-half per cent for the galleons to guard the money, and when goods are shipped from Sevilla, they pay as much as three and

1 Reprinted by permission of the publishers, The Arthur H. Clark Company of Cleveland, from The Philippine Islands, 1493-1898. Cleveland, 1903 to 1909.

one-half per cent. The principal cause of this loss is the time [required to transact business]; for from the day when the money leaves Callao (the port of Lima) until it returns in merchandise to the same point there is an interval of at least three years, counting the winters; and before they can secure returns from the merchandise another year, or even a year and one-half, must pass, for not all the merchandise can be sold for cash. Consequently this money can gain its profit only once in four years, when it could, as formerly, be thus handled twice in that time. And however great the amount of the profit, it cannot approach that of the two profits [in the four years], especially with the loss involved in the aforesaid duties for the fleets, and the new impositions of duty for the armed vessels that carry, in the South Sea, the money from Lima to Panama - and this is in addition to the duties paid to his Majesty. Thus it results that the merchants of Lima, who were formerly very rich and had ample credit, have become debtors; and this is the reason why the merchants of Sevilla do not make the same profits as formerly. Therefore there is a cry against Chinese goods, as they imagine that to be the cause of their loss. This is evident likewise, because the commerce existing formerly between Peru and Nueva España was very slight and now has increased greatly, and the Peruvian merchants prefer to go to Nueva España to make their investments rather than to España, because they can make the voyage to Nueva España in one year; and therefore can make many investments with their money. And although it is true that they bring Chinese merchandise in their shipments from that which arrives in that kingdom of Nueva España, still the greater part of the cloth bought by them is from España. Although this costs them more, the shortness of the time is of so great importance to them that they consider it more profitable than going to España, for the reason expressed above regarding the delay in time. Thus, with suitable arrangements regarding galleons and merchant-vessels, commerce is prosperously carried on.

Further, they declare that the kingdom of Peru has greatly increased, during the last twenty years, in its Spanish population, both in Spaniards born there, and in those who have gone thither from España, so that there are at least three times as many people. All these people live very luxuriously. All wear silk, and of the most fine and costly quality. The gala dresses and clothes of the women are so many and so excessive, that in no other kingdom of the world are found such;