the theories regarding colonial administration then held by certain
Spanish statesmen--and, more or less, of the policy then pursued by
the Spanish government: for Montesclaros had already been a viceroy
of Spanish colonies in America for nine years, at the time of this
report, and was highly regarded by his home government. He describes
the progress of commerce since the colonization of the New World
began, and shows that the markets of the latter are overstocked with
European merchandise, and thus the profits of the trade are greatly
decreased. The viceroy carefully analyzes the proposal to transfer
the Philippine trade to Spain, and shows its probable results. The
Manila merchandise is almost entirely silk; this could be replaced in
Mexico with the cotton fabrics made by the Indians in that country,
and the silk industry might be introduced into Mexico and made a
success there. Nevertheless, the Philippines would be injured by
the suppression of their Mexican trade, and there would not even
be a corresponding benefit to Spain. He has not much confidence in
the disinterestedness of the Sevilla merchants, and refutes some
of their arguments. The Spanish goods sent to Manila via Acapulco
are mainly articles of luxury, and in small quantity; and the cloth
stuffs of Spain are not desired in Japan or Luzón. He disapproves any
course which would bring the Chinese silks into Spain, for thus the
silk industry of that country would be ruined; moreover, the Chinese
goods are poor and have little durability. Montesclaros emphatically
denies that the stoppage of Philippine trade will materially affect
the outflow of silver from Nueva España, or benefit Spain; and advises
the king not to favor the Seville merchants or the Portuguese of India
to the neglect of his Castilian subjects. He compares the advantages
of the two routes between Manila and Spain, and considers that by
the Pacific Ocean the better. The viceroy discusses the matter of
sending reenforcements to the Philippines, and suggests that it