Number 63. Why the islands need the commerce of Nueva España
This matter being thus explained, it is also supposed that the Filipinas retain the trade above described with various kingdoms of the Orient; and that all that trade is free and open without any restriction, except that of China, and that of the Western Indias, which they maintain and observe in a certain manner. For since all those different traffics require the return of suitable kinds of merchandise in order to sustain the exchange in which they consist, and the islands need them--for the rice, cotton, wines, blankets, textiles, and other products, are not desired by China, Japon, Sian, or any other pagan nation, because they abound in the same products, or have better ones--those different branches of commerce must necessarily cease, if there were not another foreign and different commerce, which, desiring the products of those regions, can extend and carry on another trade, which their nations desire and crave. This is that of the Indias, from which is conveyed and bartered silver (a most noble commodity), in return for which are carried the drugs and merchandise that are produced in China and other Oriental kingdoms and provinces, and traded in Filipinas, by which all come to be sustained, united, and joined.
Number 64. Commerce of the islands: why it is injurious to España
This commerce of the Indias with the Filipinas is to the prejudice of España for two causes or reasons, from which result great disadvantages. The first, because the silver is withdrawn and conveyed to the islands, whence it passes into the possession of the enemies of religion and of this crown, Moors and pagans; and finally remains in China--which, according to what we understand, is the general center for the silver of Europe and Asia. For as it always is current, gaining and increasing in value until it reaches that great kingdom, whence it must issue with a loss, it does not issue, and remains perpetually among those inhabitants. From that cause result many damaging effects: such as enriching our enemies, giving them the most noble product of all the commerce of the globe; making easy for them the possession of that which private persons among them maintain, and increasing their number; preventing that silver from going to España so that the royal duties might increase thereby, the avería and the commerce be sustained; and, in short, making this crown lose and its enemies gain. The second cause is that, in addition to the aforesaid losses (which are obvious) from the withdrawal of silver, no less are the damages that are experienced on what is sent in return for it to Nueva España, and passes to Perú--namely, a great quantity of the merchandise of China in textiles of gold, silk, and cotton, and other articles. [These are sold] at so low prices that, when the merchandise of these kingdoms arrives (which is worth more, as it is of better quality), it is not sold and has no outlet, as the country is full of the others [from China]; so that those who ship it lose. Consequently, losses are multiplied; and from all results so extreme weakening of the commerce of España with the Indias, that it is almost extinct and will be diminished just as that of Filipinas increases.