to such as deserve them, that they may be able to live and maintain themselves.  Such a course, in addition to being worthy of your Majesty’s greatness, will have the important effect of animating the others to do good service on occasion, stimulated as they will be by the hope of reward.  Our Lord protect the Catholic person of your Majesty in the happiness necessary to the good of Christendom.  Manila, the twenty-sixth of October, 1602.

Don Pedro de Acuna

[Endorsed:  “Manila.  To his Majesty; Don Pedro de Acuna, the [twenty-sixth] of October.  Let it be seen if this is a duplicate, and if the original has been filed.”  “Filed and registered within.  Let attention be paid to the part on which a consultation is directed.”  “Two sections have already been epitomized, and were sent on to the council of war in Valladolid, on the twenty-eighth of June, 1605.”]

PRINCIPAL POINTS IN REGARD TO THE TRADE OF THE FILIPINAS

First Point

The quantity of merchandise which may be traded with; and that which, contrary to the prohibition, is brought from the Western Indias to the Filipinas.

By decrees of his Majesty, of January 11, 93, and of July 9 and 5, 95, the trade of the Western Indias with China and the Filipinas Islands is prohibited.  It is only permitted therein that the citizens of the Filipinas may trade with Nueva Espana; and that two ships, each of no more than three hundred toneladas, shall sail from Nueva Espana every year, in which may be sent 250,000 pesos of Tepuzque [6] in coin, and which may carry back the proceeds thereof in merchandise, which, under fixed penalties, shall not exceed another 250,000 pesos—­that is, in all, 500,000 pesos.

Notwithstanding these prohibitions, and although the same is also commanded by other decrees to be strictly observed, two million reals are usually taken out of the Indias for the Filipinas, according to advices from the viceroy of Nueva Espana, and from Senor Don Bernardino de Avellaneda.

Second Point

To whom it is permitted to trade and traffic in the Filipinas Islands.

By the aforesaid decree, it is permitted solely to the citizens of the said islands, for the space of six years.  This license is not to be renewed, and trade and commerce is unqualifiedly prohibited to any other person whatsoever of the Western Indias, under the penalty of confiscation of his merchandise.

Nevertheless, under cover of commissions, the citizens of both Piru and Nueva Espana engage in trade, and they send their money in the ships going from Nueva Espana—­some registered, and some secretly.

Third Point

That Chinese merchandise be not brought to Piru.

By the same decree it is ordered that the merchandise brought to Nueva Espana from the Filipinas be not taken to Piru and Tierra Firme; and that the goods which had already been brought be disposed of within four years.