250,000 00
Deficit 79,844 00
------- --
P 697,455 75

Expenditure.
P cts.
Supreme Court 34,219 75
Treasury and Audit Office 12,092 00
University 800 00
Cost of the annual Galleon 23,465 00
Clergy 103,751 00
Land and sea forces all over the Philippines
including offensive and defensive operations
against Moros--Staff and Material 312,864 00
Salaries, Hospital and Divers Expenses 70,158 00
Remittance in Merchandise to Mexico on account
of the Subsidy 140,106 00
------- --
P 697,455 75

When the merchant citizens of Manila were in clover, they made
donations to the Government to cover the deficits, and loans were
raised amongst them to defray extraordinary disbursements, such as
expeditions against the Mahometans, etc. In the good years, too, the
valuation of the merchandise shipped and the corresponding returns were
underrated in the sworn declarations, so that an immensely profitable
trade was done on a larger scale than was legally permitted. Between
1754 and 1759, in view of the reduced profits, due to the circumstances
already mentioned, the Manila merchants prayed the King for a reduction
of the royal dues, which had been originally fixed on the basis of
the gross returns being equal to double the cost of the merchandise
laid down in Acapulco. To meet the case, another Royal Decree was
issued confirming the fixed rate of royal dues and disbursements, but
in compensation the cargo was thenceforth permitted to include 4,000
pieces of fine linen, without restriction as to measure or value; the
sworn value was abolished, and the maximum return value of the whole
shipment was raised to one-and-a-half millions of pesos. Hence the
total dues and disbursements became equal to 11 1/3 per cent. instead
of 17 per cent., as heretofore, on the anticipated return value.

In 1763 the Subsidy, together with the _Consulado_ shippers' returns,
amounted i