ain. Commerce should be maintained between the colonies
and the mother-country. At present the conditions and results of this
trade are ruinous. Loyola advocates the establishment at Manila of
a "consulate" of trade, like that at Mexico; strict prohibition of
Mexican participation in the China trade; and its monopoly by the
inhabitants of the Philippines. Letters from the viceroy of Mexico
state that the merchants of Peru who trade with Spain are being
ruined, on account of the long time during which they must wait for
returns on their money, and the excessive duties charged on their
goods. As a result, they are sending their goods to Mexico; and they
demand permission to trade direct with China. Monterey recommends
that this be allowed to a limited extent, and that no restrictions
be placed on the use of Chinese goods in Nueva Espana. He has used
severe measures in regard to infringements of the ordinances regarding
commerce, but there is evidently remissness in the customs inspection
at Manila. Another paper gives an abstract of certain points in a
petition sent from the Philippines. It is requested that the officers
of vessels trading with Nueva Espana be inhabitants of the islands;
that no space in the ships be sold; that Peruvian merchants be not
allowed to go to the Philippines; that the troops be paid from a
special and separate account; and that the lading of the trading
ships be placed in charge of the Manila cabildo. All these points
are commented upon by certain bishops whose advice is apparently
requested by the Council of the Indias. Various memoranda follow,
on the trade between the Philippines and Nueva Espana; these include
recommendations for a commercial consulate at Manila, diminished
coinage of money, allowance of a limited amount of trade to Peru,
government custom-houses at Acapulco and Manila, etc. A letter
from Morga (December 1, 1602) informs the king that Governor Acuna
has aided the expedition sent from India to seize Maluco; and that
some of the trading ships sent to Nueva Espana have returned without
crossing the ocean, after great losses by storms, and having risked
seizure on the Japanese coast.

In May, 1603, three Chinese mandarins visit Manila. Salazar y Salcedo,
the fiscal, informs the king of this, and sends him a translation
of the letter presented by the mandarins to the governor (in which
they explain that they have come in search of a mountain of gold,
of which report had reached