a year by Spain's enemies.

The abortive attempt to annex the British Isles to the Spanish Crown in
1588 brought about the collapse of Spain's naval supremacy, enabling
English mariners to play havoc with her galleons from America. The
Philippine Islands, as a colony, had at that date only just come into
existence, but during the series of Anglo-Spanish wars which preceded
the "Family Compact" (_vide_ p. 87), Philippine-Mexican galleons
laden with treasure became the prey of British commanders, notably
Admiral Anson. The coasts were beset by Anson's squadron. He was the
terror of the Philippines from the year 1743. His exploits gave rise
to consternation, and numerous councils were held to decide what to
do to get rid of him. The captured galleon _Pilar_ gave one-and-a-half
million pesos to the enemy--the _Covadonga_ was an immense prize. All
over the Islands the Spaniards were on the alert for the dreaded foe;
every provincial Governor sent look-outs to high promontories with
orders to signal by beacons if the daring Britisher's ships were seen
hovering about, whilst, in Manila, the citizens were forewarned that,
at any moment, they might be called upon to repel the enemy.

Not only in fleets of gold-laden vessels did Spain and her dependencies
lose immense wealth through her hostile ambition, for in view of the
restrictions on Philippine trade, and the enormous profits accruing
to the Spanish merchants on their shipments, British, Dutch, French,
and Danish traders competed with them. Shippers of these nationalities
bought goods in Canton, where they established their own factories,
or collecting-stores. In 1731 over three millions of Mexican dollars
(pesos) were taken there for making purchases, and these foreign ships
landed the stuffs, etc., in contraband at the American ports, where
Spaniards themselves co-operated in the trade which their absolute King
declared illicit, whilst the traders considered it a natural right.

As the Southern (Peninsula) Spanish merchants were helpless to stay
this competition, which greatly affected their profits, their rancorous
greed made them clamour against the Philippine trade, to which they
chose to attribute their misfortunes, and the King was petitioned to
curtail the commerce of this Colony with Mexico for their exclusive
benefit. But it was not Spanish home trade alone which suffered:
Acapulco was so beset by smugglers, whose merchandise, surreptitiously
introduced, found i