sons who at death leave them bequests because
they see how well is allotted and spent that which is collected. The
income is obtained with much pains, because of the smallness of the
population. Should your Majesty make a grant to the Confraternity,
it could accomplish more in caring for cases of need which every day
occur, requiring aid and claiming pity.

_Pedro Hurtado Desquivel_, clerk of court.

This is an accurate copy of the original section:

_Juan Lopez de Hernani_

Trade of the Philippines with Mexico

_Report from the Council of State_

Sire:

Your Majesty was pleased to order that the enclosed reports from the
Council of the Indias and that of Portugal be examined in the Council,
and that they should make such recommendations as they deemed proper;
and having examined them, the members gave their opinions as follows:

The chief comendador [40] of Leon, in a meeting held at Valladolid,
insisted that it was not desirable that there should be trade
from Nueva Espana to the Filipinas on account of the great drain of
silver thus caused; it is occasioned by the large profits obtained by
investing the silver in the merchandise which comes to those islands
from China--partly through the cheapness of these goods, and partly
through the great value of silver. He also stated the difficulties
which are presented, in that, through this trade, the need for the
merchandise from these regions would cease, and with it the dependence
of those colonies, which it is so important to preserve. It should be
considered that, although the trade of Nueva Espana with China should
be prohibited, this would be of no use if trade with the Philipinas
were left open; for by that means the Chinese will have an outlet for
their merchandise. Accordingly it seemed best that this should be
prohibited, so that there would be no trade from Nueva Espana with
the Philipinas. But, as it must also be considered that the total
prohibition thereof would cause a hindrance to conversion and would put
an end to settlement, he thought it best, in order to maintain both
the one and the other, that two merchant ships should be permitted
to go each year from Nueva Espana to the Philipinas, of the capacity
and under the conditions which are at present in use there. Since,
if the people of the Philipinas are able to trade with Macan, there
will be the risk of their introducing through that channel a trade
with China, and consequently a drain of