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Dated at [word partly illegible; Aranjuez?] September 27, one thou sand six hundred and eight.

I THE KING

Certified to by JUAN DE CIVICA and signed by the members of the Council of War of the Yndias.

The King To Don Luis de Velasco, my viceroy, governor and captain-general of the provinces of Nueva España, or to the person or persons in whose charge the government may be. Having understood that as a way-station for the vessels in the Philippine trade, one of these islands, Rrica de Oro and Rrica de Plata, would be more suitable than the port of Monte Rey - which had been explored, and for the opening and colonization of which orders had been issued because the former are in a better situation: by a decree of the twenty-seventh of September of the past year, I commanded you to suspend for the time being the opening and settlement of the said port of Monte Rey, and to undertake the exploration, settlement, and opening of one of those two islands, Rrica de Oro and Rrica de Plata, as it appeared better and more suitable for the object desired; and you were to spend from my royal exchequer whatever money was necessary for this, and settle other matters, as should be expedient. You were to concede to the settlers the same privileges as were accorded to those who were to go to settle the port of Monte Rey; and in case it still appeared to you that the latter was better fitted than either of the two islands, you were to execute what I had ordered you to do in connection with its settlement and opening, as is explained more at length in my said decree, to which I refer you. But now Hernando de los Rios Coronel, procurator-general of the said islands, has represented to me that in any case it is best that the said exploration should be made from the Filipinas, and not from Nueva España - both to avoid the great expense which would fall on the royal exchequer, if the ships for this expedition were built there, as all marine supplies are very dear in your country, and difficult to procure; and also because it would be necessary to make that voyage at hazard, mainly, and there would be great danger of not finding the islands and of losing the results of the voyage and the expenses incurred. For they are in a high latitude, and far distant from your country of Nueva España;

and, besides, as all those who should go on this expedition would necessarily take a large amount of money to invest in the Philipinas (for, as the ships are to go back empty, they would take the opportunity to lade them with merchandise), they might, in order not to lose their goods by going on the exploration, draw up an information on the ship (as has been done at other times), saying that on account of storms, or for some other reason, they were unable to make the islands. But if the said discovery were made from the Philipinas, all these difficulties would be avoided; for it is evident that the cost and danger would be much less, as the two islands to be discovered are so near at hand that they can almost go and take them with their merchant ships. All the rest may be arranged merely by ordering that, having made the discovery, they shall come back to the Philipinas without going to Nueva España; for in this way there will be no reason for them to lade their vessels with merchandise. Furthermore, there are in the Philipinas trustworthy persons for this affair, to whom it may be entrusted; and the sailors there are more competent, since they have more experience. Having again considered this in our Council for the Yndias, it has seemed best to command you, and you are so commanded and ordered, that if you have not begun to carry out the preparations for this exploration, as I have ordered you to do, and if you have not so advanced them as to make it inconvenient or very expensive to abandon it, you shall examine and consider with especial attention whether, for the suitable execution and less cost of the exploration, it would be expedient to place it in the hands of my governor and captain-general of the said Philipinas Islands, so that he may proceed to undertake it from those islands. And if it appear to you that this plan is expedient, you shall send at the first opportunity to my said governor the letter which will accompany this, for him, in which he is so ordered; and at the same time you will remit to him the money that in your opinion may be necessary, which is not to exceed the twenty thousand ducats, which I had granted for the settlement of the port of Monte Rey. Dated at San Lorenzo el Real, on the third of May of the year one thousand six hundred and nine.

I THE KING

Countersigned by Juan de Civica; signed by the members of the

Council.

50. SUMMARY OF GRAU Y MONFALCÓN'S MEMORIAL

TO THE KING 1

[Madrid, 1637. Blair and Robertson, The Philippine Islands, XXVII, 207-212.]

Don Juan Grau y Monfalcón was the procurador general of the city of Manila and for the Philippine Islands as a group. In this capacity he resided at the Spanish capital. He prepared a lengthy document called the Memorial informatorio al Rey, which was published in Madrid in 1637. The question at issue — namely, the effect on the trade of the Philippines of the many restrictions on that commerce was dealt with in great detail. The memorial closed with the following brief summary:

Therefore they once more represent to your Majesty what is contained in greater detail in this memorial. The charges made against their commerce, inasmuch as these were based on malicious reports and in less knowledge than was required by the matter, have disturbed, changed, and altered it, so that it is in danger of being lost or suspended (which amounts to the same thing), and with it all the Filipinas, whose importance is so well known. That can be understood from the strong arguments advanced for the abandoning them when they were less necessary than now, when the fact of that importance has been established by so decisive a resolution. To this can serve as new motives the extraordinary manner of their discovery; the greatness of their territory, and therein the notable and especial greatness of the city of Manila which, as the mistress of so many seas, and capital of so many archipelagos, is the second pole of this monarchy; and the estimation in which their qualities are held, both for the nature of their lands and from what has been acquired from their commerces, which, if they are small as regards their own products, [in their beginnings MS.] are most opulent as regards those of foreign lands.

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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 Consult Blair and Robertson, The Philippine Islands, XXVII, 23-212, for a translation of the whole of this document. It should be studied in connection with the memorial which Grau y Monfalcón presented to Palafox y Mendoza, given in XXX, 25-109, of the same general work.

That is facilitated by their remarkable situation, which, as it is the center of so many islands and powerful kingdoms, is, if not in advance of all of them, superior to many, as it is the key of the ancient and ever rich commerce of the Orient. That commerce, after so many changes, came into the possession of Portugal, and through the Filipinas was communicated to Castilla. It has been usurped in part by the enemies of this crown (who now go to search for it, and carry it on in various ports of its origin), against whom India and the islands are defending and maintaining it. The islands especially protect the commerce of China and that in cloves, as they are now lords of the islands of Maluco which they recovered after they had been lost, and which they preserve, although infested [by enemies], at the cost of the blood and the possessions of their inhabitants. They are exposed always to the raids of powerful opponents, who in order not to lose what they have had the good fortune to acquire, the Oriental trade and that of Maluco (which is of the greatest value), spend the most of what they gain in forts, presidios, and fleets, that they may resist the Filipinas. If the islands are important for that reason, not less important are they for the effects that result from their preservation. These effects are the promulgation of the Catholic faith, and the extension of the gospel preaching through so extensive regions, and so remote kingdoms of pagans and Moors which in spite of the northern heresy, has been received by some, while others are ready to receive it; the assurance of safety for India, which has doubled its strength because of the nearness of the islands, which on all occasions reënforce it; the prevention and hindrance of the enemies from the trade in which they most wish to be absolute masters, and which they would obtain were it not for that valiant resistance, and that fortified camp; the relief of the Western Indias from their raids, which because of this diversion have rest; and finally, the maintenance of the reputation of this crown, in the most remote part of its domain. And since, in order to obtain these and other effects, it is sufficient that the Filipinas be maintained in the force and renown that they have at present, for that only two methods are to be found, which consist either in spending from the royal treasury the amount necessary for them, or in giving them a commerce such that all the cost of the islands may be derived from it. Each method is impossible alone, for the expense of the islands is considerable, and the amount that they contribute is

not sufficient, as those of Maluco are dependent on them, while the royal treasury is exhausted. The commerce ought not to be opened so widely that its duties supply all [the cost of the islands], because of the injury that this would cause to the commerce of España, which is more important. The only remedy comes to be (and it is that admitted by experience) the union of both these means, each sharing a portion of the expense. With this the royal treasury will be relieved, the commerce permitted, and the islands maintained. In order to provide a guarantee for this obligation, it is advisable to favor the inhabitants of the islands, who have attended and are attending to their defense (as that is the chief part of their preservation) with so abundant aid and so liberal expense. For this, taking a middle course between the damages and the advantages, the restricted commerce with Nueva España, without which they cannot live, is permitted to them. And although results from that concession the withdrawal of a quantity of silver (which if it came to these kingdoms could enrich them more), and its passage to the foreigners, besides the bringing of merchandise from which results a less consumption of the goods of these kingdoms: as this is not the only cause that weakens the trade of the Indias, but there are others very different from it, it is necessary, in order that that trade be not ruined, that this of Filipinas be preserved, but not more than in the quantity that is sufficient for its maintenance, and that is not harmful. Thus has the commerce been given its present form, conceding it alone to the inhabitants of the islands, restricted as to the amount of its merchandise and the silver for its returns, by imposing on both the latter and the former a fixed and determined quantity, as also on the ships which are to carry it. That is the condition least damaging to each part which, attentive to the state of so many kingdoms and the mutual relations of so many provinces, it has been possible to arrange. Although great illegalities have been ascribed to this permission, which are not lacking in any part of the world, and are found in all commerces, and are tolerated - either because it is impossible to correct them, or because it is not advisable to reduce them to the full rigor of the orders - those that are found in this commerce are not greater than those of others; for neither the silver nor the merchandise which is hidden can exceed the amount permitted so greatly as has been represented, as has been [herein] stated. If there is any violation, there are sufficient prece

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