[Bettered conditions.] The most noteworthy points of the decree are
the moderation of the differential duties, and their entire extinction
at the expiration of two years; the abrogation of all export duties;
and the consolidation of the more annoying port dues into one single
charge.

[Pre-Spanish foreign commerce.] When the Spaniards landed in the
Philippines they found the inhabitants clad in silks and cotton stuffs,
which were imported by Chinese ships to exchange for gold-dust,
sapan wood, [18] holothurian, edible birds' nests, and skins. The
Islands were also in communication with Japan, Cambodia, Siam, [19]
the Moluccas, and the Malay Archipelago. De Barros mentions that
vessels from Luzon visited Malacca in 1511. [20]

[Early extension under Spain.] The greater order which reigned in
the Philippines after the advent of the Spaniards, and still more the
commerce they opened with America and indirectly with Europe, had the
effect of greatly increasing the Island trade, and of extending it
beyond the Indies to the Persian Gulf. Manila was the great mart for
the products of Eastern Asia, with which it loaded the galleons that,
as early as 1565, sailed to and from New Spain (at first to Navidad,
after 1602 to Acapulco), and brought back silver as their principal
return freight. [21]

[Jealousy of Seville monopolists.] The merchants in New Spain and Peru
found this commerce so advantageous, that the result was very damaging
to the exports from the mother country, whose manufactured goods were
unable to compete with the Indian cottons and the Chinese silks. The
spoilt monopolists of Seville demanded therefore the abandonment of a
colony which required considerable yearly contributions from the home