hat the merchants of that
country are greatly disappointed that trade with the Philipinas Islands
should be taken away from them; for, although the satins, damasks, and
other silken goods, even the finest of them, contain very little silk,
and others are woven with grass (all of which is quite worthless),
the people mainly resort to this cheap market, and the prices of silks
brought from Spain are lowered. Of these latter, taffetas had come
to be worth no more than eight reals, while satins and damasks had
become very cheap. He feared that, if this went further, it would not
be needful to import silks from Espana. He says, moreover, that all
goods carried from the said islands are mere trifles, from which the
land derives no profit--such as porcelains, escritoires, caskets, fans,
and parasols, all flimsy and very unprofitable. We can trade with the
Chinese only with gold and silver, since they have more than enough of
everything else. The letter written to your Majesty by the commander
of the fleet which is in Nueva Espana was also examined. He states
therein that the trade in thin fabrics imported from these kingdoms
to that land is steadily decreasing, on account of the trade which
is carried on there with the Philipinas Islands. This letter was the
occasion for issuing a decree, to which your Majesty was pleased to
set your royal hand, calling for a report from the viceroy of Nueva
Espana. This is an affair which requires a much more expeditious
remedy. We have investigated the state of affairs in those regions,
of which a detailed report was made to us. Besides the little value of
those wares, a large amount of silver and coin is carried thither in
exchange for them. Although a portion of this money remains in those
islands, all the rest is carried away by the Chinese who go thither
from the mainland to sell these wares.

In this way the commerce of these kingdoms is falling away, and
the bringing of money hither is impeded; both these are matters of
consequence and importance. This is not the way to maintain our trade,
since the settlement of the land must be through its richness and
fertility, and the prospect of other discoveries that are being made
daily, and not through trade. Those who are engaged in this trade are
merely transients, and those islands are merely a place of lading for
this commerce; for all, or the greater part, of the merchandise comes
from China. The Spaniards derive two, three, or four thous