poverty. [112] "Every morning one could see in the streets of Manila,
in the greatest poverty and asking alms, the sons of men who had made a
fine show and left much money, which their sons had squandered because
they had not been well trained in youth." [113] The great possibilities
of Manila as an entrepot of the Asiatic trade were unrealized; for
although the city enjoyed open trade with the Chinese, Japanese,
and other orientals, [114] it was denied to Europeans and the growth
of that conducted by the Chinese and others was always obstructed
by the lack of return cargoes owing to the limitations placed upon
the trade with America and to the disinclination of the Filipinos to
work to produce more than was enough to insure them a comfortable
living and pay their tributes. That the system was detrimental to
the economic progress of the islands was always obvious and its evils
were repeatedly demonstrated by Spanish officials. Further it was not
only detrimental to the prosperity of the islands but it obstructed
the development of Mexico.

Grau y Monfalcon in 1637 reported that there were fourteen thousand
people employed in Mexico in manufacturing the raw silk imported
from China. This industry might be promoted by the relaxation of
the restrictions on trade. It would also be for the advantage of the
Indians of Peru to be able to buy for five pence a yard linen from
the Philippines, rather than to be compelled to purchase that of Rouen
at ten times the price. [115] But such reasoning was received then as
it often is now, and no great change was made for nearly two centuries.

We have now passed in review the political, ecclesiastical, and
commercial administration of the Philippines in the olden time; and
a general survey of some of the more striking results of the system
as a whole may now be made. This is especially necessary on account