ns for paying their tributes in kind or in money,
at their option; for it has led to their neglecting their former
industries, and thus to the general damage of the country. Slavery
still exists among them, but the Spaniards have been forbidden to
enslave the natives. Personal services of various sorts are due
from the latter, however, to their encomenderos, to the religious,
and to the king, for all of which they receive a moderate wage; and
all other services for the Spaniards are voluntary and paid. Close
restrictions are laid upon the intercourse of the Spaniards with
natives. Various information is given regarding appointments to
office, residencias, elections, town government, and finances; also
of the ecclesiastical organization, expenses, and administration,
as well as of the incomes of the religious orders. Morga recounts
the numbers, character, pay, and organization of the military and
naval forces in the islands. The bulk of the citizens are merchants
and traders, commerce being the chief occupation and support of the
Spanish colony. Manila is a market for all the countries of Eastern
Asia, from Japan to Borneo. The China trade is restricted to the
inhabitants of the Philippines; Morga describes its nature and extent,
and the manner in which it is conducted, as well as the character
and methods of the Chinese traders. A similar account is given of the
trade carried on with the Philippines by the Japanese, Borneans, and
other neighboring peoples, and of the shipment to Nueva Espana of the
goods thus procured. This last commerce is "so great and profitable,
and easy to control, that the Spaniards do not apply themselves to,
or engage in, any other industry," and thus not only they neglect to
avail themselves of and develop the natural resources of the country,
but the natives are neglecting and forgetting their former industries;
and the supply of silver in the country steadily flows out of it and
into the hands of infidels. Morga enumerates the officials, revenues,
and expenditures of the colonial government. As its income is too small
for its necessary expenses, the annual deficit is made up from the
royal treasury of Nueva Espana. But this great expense is incurred
"only for the Christianization and conversion of the natives, for
the hopes of greater fruits in other kingdoms and provinces of Asia."

The large extent of the Chinese immigration to the islands is
disapproved by Morga, as unsafe to the Spaniards