Number 72. The Filipinas do not damage the commerce of España
The above and many other causes which might be mentioned are those which have weakened and are ruining the commerce of the Indias; and although it would be more advisable to counteract some of them, or to seek reparation for those which are most hurtful, the Filipinas Islands come to be the ones that suffer the penalty, without being implicated in the guilt. And although their commerce is in the lowest condition that it has ever experienced or suffered, yet even in this condition they are not allowed or permitted [to improve] it, and there are some who propose its destruction as a remedy, so that it may share in the universal destruction of all trade; and this is in so far as it touches the commerce of España.
Number 73. Beginning of the commerce of the islands
The commerce of these islands began with their second discovery and the first settlement, which was in the year 565. [52] However, it was at the first scanty and of little weight, until during the government of Guido de Labazarris, in the year 576, the trade of China was introduced, and with it considerable profits, which extended it freely to Nueva España, Guatimala, Tierrafirme, and Perú, by a royal decree of April 14, 579. As it continued to increase, it was believed necessary to restrict it; and accordingly, by a decree of November 11, 587, it was ordered that Chinese cloth brought from Filipinas should not pass from Nueva España to Perú or to Tierrafirme. That decree was later confirmed by others of February 13, and June 13, 599. And in order that what was prohibited in one way might not be obtained in another, decrees were despatched on February 6 and December 18, 591, ordering the total cessation of commerce between the islands and Perú. That was later extended to Tierrafirme and Guatimala, by decrees of January 12, 593, and July 5, 595, forbidding the trade of China and its merchandise to all the Indias, except to Nueva España, which was left open to the Filipinas.
Number 74. Permission for the commerce of the Indias, and its final form
The commerce of Sevilla was not satisfied with even these orders and restrictions. That commerce continued to decrease, although the cause was unknown. They regretted the damage, and tried to apply the remedy, but in vain. As the trade of Filipinas was already the stone of offense, they immediately descended on that. Not only was the prohibition of commodities from the islands strengthened, but their quantity was limited, reducing it to a fixed amount that was permitted, and a certain form. It was ordered that only four ships should ply in that trade-route--two which should sail to Nueva España, and two to the islands, and all at the account of the royal treasury. In these could be carried two hundred and fifty thousand pesos' worth of such merchandise as they should have in Manila; and in return they could take five hundred thousand in silver, including in this sum the principal and the profits. And inasmuch as this permission, from its beginning, was never in favor of Nueva España, but of the islands, it was declared that only the citizens of the islands could navigate and trade, as was already ruled by a royal decree of January 11, 593. In accordance with this, the commander [of the fleet] was despatched on the last of December, 604, with various instructions and declarations, which gave form to this commerce. And since his permission was for only the citizens of the islands, and those who were not residents of the islands but of Nueva España had begun to take part in it, it was ordered that the toneladas of the two ships which sailed should be distributed in Manila by the governor, the archbishop (or the senior auditor), the fiscal, and two regidors. That order was confirmed by decrees of May 4, 619, and May 29, 620, and by others, which regulate this matter, and declare that the respective shares of the silver which must be sent back as returns for the merchandise must be allotted in Nueva España.