Handouts in Econ 115: Manila-Acapulco Galleon Trade PDF

handouts in econ115 02_spanish pt1 Alcaiceria  In 1756, the Spanish government commissioned Antonio Mazo to build the Alcaiceria de...

handouts in econ115 02_spanish pt1 Alcaiceria  In 1756, the Spanish government commissioned Antonio Mazo to build the Alcaiceria de San Fernando, a permanent marketplace that housed shops and transient residences for the merchant Chinese  Designed by Lucas de Jesús  Served as the eighth and last Parian Illustration by Jericho Moral Alcaiceria location in Manila (Chinatown Museum) (from Chinatown Museum) Alcaiceria Meisic  Ground floor serves as shops,  From the play of words, may usually silk or textiles; second floor Intsik, where the wealthy served as lodging area for Chinese resides (located in merchants and stockpile of Binondo, Manila) goods (from Chinatown Museum)  Current location is the Pedro Guevarra High School in San Nicolas, Manila Alcaiceria Illustration by Jericho Moral master plan (Chinatown Museum) Quiroga Manila-Acapulco galleon trade  Chapter 16, El Filibusterismo (1891)  Trade between the Spanish East Indies and the  Dreams of establishing a Chinese Iberian Spain (Cadiz and Sevilla), through Acapulco, consulate in Manila Mexico: plan to monopolize and restrict trade—thus  Debt relief from Simoun through a the Manila-Acapulco galleon trade (1565-1815) deal: use of warehouse as a rifle  Regarded as the longest shipping line in history, and storage facility the first global trade agreement in the world  Character reflects Rizal’s sentiment  Réal Consulado: an all-powerful board of trade against the Chinese, as which is composed of the leaders of a monopoly unscrupulous traders profiting at the association of shippers expense of indios Don Carlos Palanca Tan Quien-Sien basis for the character of Quiroga LCAbueg, econ@uplb 1 handouts in econ115 02_spanish pt1 Manila-Acapulco galleon trade  Two galleons from Manila annually, with cargo not exceeding 250,000, sailing to Acapulco by end June; and not exceeding 500,000, sailing back to Manila in December  Estimate: 250 million worth of silver and 50 million worth of gold in 250-year period  Problems: English pirates, tropical depressions in June  Used the Urdaneta Route, due to Fray Andres de Urdaneta (from his experiences in the Loaisa and Legazpi expeditions) Replica of Galleon San Agustin Church and Museum Intramuros, Manila Manila-Acapulco galleon trade  First galleon (San Pablo) to arrive in Acapulco in 1565, directed by Urdaneta, using only compass and some knowledge in wind and tide for navigation Fray Andres de  General intent: monopolize sourcing our of Chinese goods Urdaneta signature from Asia by Spain, thru Acapulco, and thus, would bring “instant revenue” to the Spanish crown—a rather mercantilist policy—and to further mobilize bullion from Acapulco (silver) [and possibly from Manila (gold)] to Spain  Effect: at the initial years of Spanish colonization, “pesos” as Fray Andres de Urdaneta the official money of the colony is precisely Mexican pesos. San Agustin Church and Museum Intramuros Manila LCAbueg, econ@uplb 2 handouts in econ115 02_spanish pt1 Manila-Acapulco galleon trade Manila-Acapulco galleon trade  Other docking ports: Cavite (where Thirdly, the East Indies is another market for the the largest galleons were built), produce of the silver mines of America, and a market which, from the time of the first discovery of those Sorsogon, Masbate, Marinduque, mines, has been continually taking off a greater and a and Camarines greater quantity of silver. Since that time, the direct  Under the framework of trade between America and the East Indies, which is mercantilism: the belief that carried on by means of the Acapulco ships, has been “wealth consists in money, or in continually augmenting, and the indirect intercourse by the way of Europe has been augmenting in a still gold or silver” (Adam Smith, 1776) greater proportion. … It is the most valuable article in the Acapulco ships which sail to Manilla. … Manila-Acapulco galleon trade … The annual importation of the precious metals into Cadiz and Lisbon, indeed, is not equal to the whole annual produce of the mines of America. Some part is sent annually by the Acapulco ships to Manilla; some part is employed in the contraband trade which the Spanish colonies carry on with those of other European nations; and some part, no doubt remains in the country. The mines of America, besides, are by no means the only gold and silver mines in the world. They are, however, by far the most abundant. Adam Smith , Bk 1 Ch XI, Pt 2 Twenty Pounds banknote, reverse, Bank of England (Central Bank of the United Kingdom) Circulation: 2006 (2007), until 2015 A cross-section of the Spanish galleon, illustrated by Stephen Biesty (published by Dorling Kindersley, 1992) Recall: mercantilism  not really a homogeneous system of ideas  promoted to a “system” by later writers as a caricature or straw man i. mercantilism (Victor de Mirabeau, 1763) ii. mercantile system (Adam Smith, 1776)  Differences in specific policy-prescriptions but with a common aim: promoting the political power of the nation- state. i. A striving after economic power (William Cunningham, The growth of English industry and commerce ) LCAbueg, econ@uplb 3 handouts in econ115 02_spanish pt1 Recall: mercantilism ii. Essentially a policy of economic unity (Gustav Schmoller, Das merkantilsystem in seiner historischen Bedeutung ) iii. Economic unity is only the “frame”; the purpose of unity is to strengthen the powers of the state in competition with other states. The end is the power of the state itself (Heckscher, Mercantilism ) iv. Mercantilists aimed for national advantage and relative strength (JM Keynes, The general theory of employment, interest, and money ) Manila-Acapulco galleon trade: local route and stations R. Baldwin, London Magazine (1763) Manila Bay San Bernardino and Cavite (1) Strait (5) Puerto Galera  Originally a corregimiento and a refuge from susceptible Moro (Muslim) attacks and seasonal tropical depressions (typhoons), it was established in 1574 as the original seat of the provincia/alcaldia of Mindoro  Name literally means port of the galleons, a docking port of galleons for the Manila-Acapulco Galleon trade Taal Lake and Pansipit Puerto Galera, Capul Island, River (2) Myndoro (3) Samal (4) Ports: Cavite, Marinduque, Catanduanes, Sorsogon LCAbueg, econ@uplb 4 handouts in econ115 02_spanish pt1 Nearby Pansipit River – which connects Taal Lake to Balayan Bay and Taal Lake and Pansipit River the West Philippine Sea – was partially buried. River and lake waters displaced by the ejected debris had submerged, not only Taal, but also old Lipa, Tanauan, and Sala.  Before the 1754 Taal eruption (the The eruption, and others that followed it, led the transfer of the towns to recorded longest and most other sites. Today, Taal town is farther from the southern shores of Taal devastating eruption since 1572), Lake and closer to Balayan Bay. galleons can pass through the The site of old Taal is now occupied by a new town, San Nicolas. Pansipit River and docking on the Pia Ranada, Rappler Taal Lake 23 May 2015  The eruption of 1754 changed the Before the 1754 eruption, a channel wide and deep enough to allow topography of the area, making Pansipit River and Taal Lake galleons to pass through connected the lake to Balayan Bay. This Pansipit unpassable Fray Pedro Murillo Velarde (1754) eruption, which went on for seven months, closed the channel. Where the channel was, Lemery now sits. Alex Magno, Philippine Star 16 January 2020 Capul Island The galleon trade  Last station before sailing to The Manila Galleon was the first medium to Pacific Ocean, via San reduce the world to a village. Bernardino Strait Manila, my Manila: a history for the young (1990)  Name from the word “Acapulco”  Dialect: Inabaknon, from the Sama language of the Sulu Archipelago Nick Joaquin 1917-2004 National Artist for Literature (1991) Dutch intermission, 1646 LCAbueg, econ@uplb 5 handouts in econ115 02_spanish pt1 Dutch “intermission” Dutch “intermission”  [Warhistoryonline.com] Earliest record was in 1609  Goal of the Dutch also to in the Mexican publication “Events of the Philippine circumnavigate the world: establish Islands” presence in the Moluccas (first  Plan was set as early as 1598 as part of the attempt), and setup trade in China “terrorism” plan against Spain [and Portugal]; later (second attempt) setting up a headquarters at Batavia [now Jakarta,  Problem: the Treaty of Zaragoza, Indonesia]: the Dutch East India Company and the “hate of the Spaniards” to their former European colony Admiral Olivier van Noort [1558-1627] Head of the four-ship expedition to Filipinas in 16 October 1600 Dutch “intermission” Dutch “intermission” The financial position of the colony was repeatedly in great  Five battles culminated 1646 (only two Spanish fleet danger because of this narrow economic basis on which it was versus the four Dutch war vessels), later declared built; this was the case especially when the Acapulco galleon miraculous wars in 1662 stayed away one or even more years in succession. …  planned as early by 1600 by the Dutch captivation of The Dutch had a very clear understanding of the situation,… Formosa (now Taiwan), 1642—the Battle of San Salvador aimed at hitting the Spaniards at their weakest spot. A (started in 1641 in a correspondence by protocol of blockade of Manila, preferably combined with pirating one of Catholic states pursuing war) the silverships from America served a threefold aim: weakening  Part of the Eighty Year’s War (the Dutch War of the Spanish empire, strengthening their own trade position by Independence from Spain): also during the reign of Philip acquiring silver so indispensable in Asia, and, lastly, diverting the Chinese junks to the Dutch factories. [Roessingh 1968:62-63] II of Spain (of the Habsburgs) who also became the last ruler of the Netherlands (the Seventeen Provinces) Dutch “intermission”  The plans to attack Manila was believed to have interceded by the Virgin Mary despite the “bad lucks” and gross situation of Filipinas prior to 1645 i. volcanic eruptions, 1633-1640 ii. Mindanao rebellion led by Sultan Kudarat (called the Sangley Rebellion of 1635) iii. Manila earthquake (West Valley Fault), 1645 Sangleys pacification campaign Nuestra Señora de Santissimo Rosario (1593) iv. death of Archbishop of Manila document under Governor General Sebastian Hurtado de Corcuera, 1640 de la Naval de Manila (1662) LCAbueg, econ@uplb 6 handouts in econ115 02_spanish pt1 Nuestra Señora La Naval  Crowned by Pope Pius X in 1907, the first in Manila  Devotion initially believed to have also interceded in the Battle of Lepanto (1571) against the Ottoman Turks  Survived the later occupations of the British (1762-64) Aside: the and Japanese (1942-45)  Transfer of shrine from Intramuros to Quezon Avenue (in Spanish Formosa 1954): famous for death processions of B Aquino Jr (1626-1642) (1983) and F Poe Jr (2010), the Santo Domingo Church (where Angelicum College is located) Isla Hermosa Fort Santo Domingo  Known as Formosa to the  Second fort in 1628 (wooden) Europeans, and to the Spanish and 1937 (stone) as a military as the “Beautiful Island” base in the colony (initially: Santissima Trinidad)  Destroyed by the Spanish  Official government name: themselves upon the defeat Gobernación de Hermosa under Governor General Española (led by a Sebastian Hurtado de Corcuera governorate under the  Rebuilt by the Dutch in 1644 and governor-general of Manila) named Fort Antonio  Two forts: San Salvador (1626),  Functioned as British Consulate Santo Domingo (1628) Fort Santo Domingo (from in 1868, closed in WW2 Fort Santo Domingo (from taiwantravelgeek.com) taiwantravelgeek.com) Isla Hermosa British consulate residence in Fort Santo Doming,  Governance: patterned after Binondo— 1891 (from exclusion of Chinese (called Sangleys as taiwantravelgeek. com) in Manila)—exactly opposite of the Dutch governance in the south  Recall: lament of Corcuera in a report to Felipe IV having Spanish Soldiers suffering in sickness due to tropical climate; and defeat to Sultan Kudarat  Defeat of Corcuera led to his downfall— Sebastian Hurtado de imprisonment in Manila for five years Corcuera [1587-1660]; Spanish Governor General (also due to his enemies in Manila) 1635-1644 LCAbueg, econ@uplb 7 handouts in econ115 02_spanish pt1 Isla Hermosa Isla Hermosa  Intended for extension of the  Dutch conquest as a response to Manila-Acapulco Galleon trade, revolt against the Spanish and expansion of trade to Chinese Habsburgs, and plans to conquer locals and Japanese traders Spanish colonies in Asia—  Problem: sakoku edict decreed by including Filipinas (initially led by the new shogun, Iemitsu Tokugawa, Noort in 1600) closed Japan to the world in 1635  Intent to conquer the Spanish North in 1641 by the Dutch governor Paulus Traudenius—as a protocol of Catholic nations engaging into war Spanish Hermosa and Dutch Keelung and Tamsui Harbor, 1626 Formosa, 1626 Internal church dynamics, and state affairs Spanish “presence” Spanish “presence”  Contrary to other colonies of other Europeans, Spaniards 1810 around 3,500 to 4,000; relative to the 509,000 were relatively scarce compared to the natives estimate population of the natives 1565 300 men with Legazpi upon arrival in Cebu, and 1898 peak of Spanish population, about 34,000— requested for 700 reinforcements (for the small in absolute and relative terms, compared period 1565-1573) to the growth in the native population 1575 estimate of 500 Europeans as percent of Year Colony total population 1621 estimate of 3,500 1801 Philippines 0.0006  Conquest period (1565-1700) average: at least 2,000 and 1825 Spanish America 18.00 at most 3,000 1793 Mexico 18.00 1795 Peru 12.60 1825 US and Canada 79.60 LCAbueg, econ@uplb 8 handouts in econ115 02_spanish pt1 Spanish “presence” Spanish “presence”  General issue (also shared by some of the European—and  “Bad accounts” in Mexico (Viceroy) later American—colonizers): the mismatch of the home 1629 Governor General Juan Niño de Tabora climate and the colony climate, making it “unhealthy” for regarded Manila having “little health” that the Europeans to stay in the colonies (general in Asia) causes death among Spaniards and natives 1593 initially reported by Governor General Gomez 1636 report of Governor General Sebastian Hurtado Perez de Dasmariñas to Felipe II that the de Corcuera to Felipe IV attributed death of Philippines is “unhealthful” Spanish soldiers to “unhealthy climate and 1596 Antonio de Morga, in his Sucesos de las Islas great heat” Filipinas, reported that the peninsulares who migrate to Filipinas die in its defense Spanish “presence” Spanish “presence” 1668 death of some 50,000 people from a peste The type of colonist who was attracted to the Philippines was perhaps general (probably smallpox) which noted a small not so much committed to remain in the islands as were colonists who settled in South America. The chief complaint voiced by clerics and number mortality of Spaniards—not attributed to government officials was that there was a revolving population of improved conditions—reflecting the general lack merchants, principally from Mexico, who came to the Philippines with of interest of Spaniards in Filipinas (recall of the the intention of remaining only long enough to strike it rich in the thoughts to abandon the colony) galleon trade and then return to New Spain. Those who came to the 1842 Sinibaldo de Mas reported that more than three Philippines intended to stay for three years at most and many of these were escaped criminals, merchants or a few nobles who percent of the Spaniards die in the Islands accompanied the governor. Spaniards were further discouraged from annually; recommended that at least 15 serving as government officials or emigrating as colonists to the individuals must migrate to Filipinas annually to Philippines by the high mortality rate of Europeans in general. “maintain presence” [Cushner (1971), cited in Cruz (2014)] Spanish “presence” Spanish “presence” The possibility that criminals will agree to migrate to the colony is high  1563: law that restricted the settlement of the Spanish despite the perceived high value of risk of mortality. This was evident, among the natives—alcaldes (with staff) and the for example, when all criminals in Mexico in 1677 were offered pardon clergy—to prevent the repetition of the demographic plus a salary of 125 pesos annually if they would enlist for service in Filipinas. [Corpuz (1997), discussed in Cruz 2014:69] disaster in the Spanish Americas  Since an alcalde was in cabecerra (provincial capital), only the friar curates were the Spanish in the pueblos  Members of the clergy praised the law, and according to them, would prevent the natives from imitating the bad manners of the lay Spanish LCAbueg, econ@uplb 9 handouts in econ115 02_spanish pt1 Spanish “presence” The power of the “regulars”  1751: repeal of the 1593 law, but few Spaniards desired  Two types of priests: to settle in Filipinas i. Regular: members of missionary orders, who are  The clergy harassed those who wanted to establish tasked to go out of the frontier and convert residence because they do not want competitors in people to Christianity trade (the Don Rafael Eibarramendia - Fray Damaso ii. Secular: priests directly under the supervision of a Vardolagas conflict in Noli Me Tangere ) bishop  Moreover, recall the immense power of the friar curate;  Idea: once the parish is setup by a regular priest, it must and his persona being an authority of the Church can be turned over to a secular priest direct actions of the natives  Problem: the above did not happen The power of the “regulars” The power of the “regulars”  Council of Trent (1563) decreed that all parishes—  Spanish crown (1624) extended the practice in the including those under the regular clergy—were subject Viceroyalty of Peru: vacancy requires three nominations to the visitation, jurisdiction, and correction of the bishop submitted to the Governor-General (as Vice-Patron),  Archbishop Diego Vasquez de Mercado (1611): first and choose the successor; otherwise, the new priest will secular archbishop of Manila; called for visitation due to not get regular stipend from government report of abuses, but threatened by the regular clergy  Problems: that they will all go back to Spain i. difficulty in finding nominees because the supply  Archbishop Miguel Garcia Serrano (1621): successor of of priests is very low, plus the high mortality of Vasquez de Mercado, and also called for visitation priests in Filipinas ii. Filipinos were not allowed to priesthood unlike the creoles The power of the “regulars” The power of the “regulars”  Governor General Pedro Antonio Salazar (1835)  1826: royal edict stipulates that “secularization of any recommended that 200 friars must be sent to Filipinas, so curacy should not be proceeded with, except by that local monasteries will not be held by local priests express order of the king”  Clergy were also successful in ousting governor Year Regular priests Secular priests Total generals—even archbishops in Manila—if these people 1595 134 0 134 are not in their favor 1649 185 59 254  Threatening the priests by the bishop through visitation 1750 427 142 569 (and eventually removing them from the parish) leads to a bigger threat of the priest leaving the colony LCAbueg, econ@uplb 10 handouts in econ115 02_spanish pt1 The archipelago—islands without gold—began and never ceased to be a missionary field that the Castilian Crown didn’t want to know anything about. Then, from the middle of the 18th century up to the overthrow of Isabella II, Spain forced itself to make the Philippines a colony like the Dutch Indies. It was a failure. Spain lacked commercial power to enrich itself with the trading of the country’s natural resources and the forced labor of the natives, as the Dutch did. It also lacked the industry to supply the colony with competitively priced export goods, as did England. Moreover, peninsular Spanish migration was very insignificant. A colonization is one continuous armed robbery, but when it’s perpetrated by a end of §2. econ115 country with an excess of vitality, plundering is consolidated, and the robber enriches himself. Spain was a sick country, deeply rooted in itself, and was a tyrannical master and an exploiter as cruel and incompetent that it singlehandedly earned the loss of its colonies. Jaime Gil de Biedma y Alba (1929-1990), Spanish poet, in diary entry (1956) LCAbueg, econ@uplb 11