Trade with the Moro Malays of the South.--The spread of Mohammedanism and especially the foundation of the colony of Borneo brought the Philippines into important commercial relations with the Malays of the south. Previous to the arrival of the Spaniards these relations seem to have been friendly and peaceful. The Mohammedan Malays sent their praos northward for purposes of trade, and they were also settling in the north Philippines as they had in Mindanao.
When Legaspi's fleet, soon after its arrival, lay near the island of Bohol, the "Maestro de Campo" had a hard fight with a Moro vessel which had come up for trade, and took six prisoners. One of them, whom they call the "pilot," was closely interrogated by the Adelantado and some interesting information obtained, which is recorded by Padre San Augustin. [14] Legaspi had a Malay slave interpreter with him and San Augustin says that Padre Urdaneta "knew well the Malayan language." The pilot said that "those of Borneo brought for trade with the Filipinos, copper and tin, which was brought to Borneo from China, porcelain, dishes, and bells made in their fashion, very different from those that the Christians use, and benzoin, and colored blankets from India, and cooking-pans made in China, and that they also brought iron lances very well tempered, and knives and other articles of barter, and that in exchange for them they took away from the islands gold, slaves, wax, and a kind of small seashell which they call 'sijueyes,' and which passes for money in the kingdom of Siam and other places; and also they carry off some white cloths, of which there is a great quantity in the islands."
Butúan, on the north coast of Mindanao, seems to have been quite a trading-place resorted to by vessels from all quarters. This country, like many other parts of the Philippines, has produced from time immemorial small quantities of gold, and all the early voyagers speak of the gold earrings and ornaments of the natives. Butúan also produced sugarcane and was a trading-port for slaves. This unfortunate traffic in human life seems to have been not unusual, and was doubtless stimulated by the commerce with Borneo. Junks from Siam trading with Cebu were also encountered by the Spaniards.