prolonged struggle before the Council of the Indies ensued, and in
1734 the prohibition was revoked and the east and west cargoes fixed
at $500,000 and $1,000,000 respectively. [108] The last _nao_, as
the Manila-Acapulco galleon was called, sailed from Manila in 1811,
and the final return voyage was made in 1815. After that the commerce
fell into private hands, the annual exports were limited to $750,000
and the ports of San Blas (Mexico), Guayaquil (Ecuador), and Callao
(Peru) were opened to it.

Other changes were the establishment of direct communication with
Spain and trade with Europe by a national vessel in 1766. [109] These
expeditions lasted till 1783 and their place was taken in 1785 by the
Royal Philippine Company, organized with a capital of $8,000,000, and
granted the monopoly of the trade between Spain and the islands. [110]
The Manila merchants resented the invasion of their monopoly of the
export trade, and embarrassed the operations of the company as much
as they could. [111] It ceased to exist in 1830.

By this system for two centuries the South American market for
manufactures was reserved exclusively for Spain, but the protection did
not prevent Spanish industry from decay and did retard the well-being
and progress of South America. Between Mexico and the Philippines a
limited trade was allowed, the profits of which were the perquisites
of the Spaniards living in the Philippines and contributed to the
religious endowments. But this monopoly was of no permanent advantage
to the Spanish residents. It was too much like stock-jobbing, and
sapped all spirit of industry. Zúñiga says that the commerce made a
few rich in a short time and with little labor, but they were very few;
that there were hardly five Spaniards in Manila worth $100,000, nor a
hundred worth $40,000, the rest either lived on the King's pay or in