oncessions granted to
one foreigner and another from the beginning of last century, it was
not until the port of Manila was unrestrictedly opened to resident
foreign merchants in 1834 that a regular export trade with the whole
mercantile world gradually came into existence.

It is said that whilst the charter of the "_Real Compania
de Filipinas_" was still in force (1785-1830) a Mr. Butler [118]
solicited permission to reside in and open up a trade between Manila
and foreign ports; but his petition was held to be monstrous and
grievously dangerous to the political security of the Colony; hence it
was rejected. The Spaniards had had very good reason to doubt foreign
intercourse after their experience of 1738, when they preferred a
war with England to a gross abuse of the _Asiento_ contract entered
into under the Treaty of Utrecht. [119] Subsequently the American firm
already mentioned, Russell & Sturgis, made a request to be allowed to
trade, which, having the support of the Gov.-General of the day, was
granted; and Mr. Butler, taking advantage of this recent precedent,
also succeeded in founding a commercial house in Manila. To these
foreigners is due the initiation of the traffic in those products
which became the staple trade of the Colony and paved the way for the
bulk of the business being, as it is to-day, in the hands of European
and American merchants.

The distrustful sentiment of olden times (justifiable in the 18th
century) pervaded the Spaniards' commercial and colonial policy up to
their last day. Proposed reforms and solicitations for permission
to introduce modern improvements were by no means welcomed. In
the provinces clerical opposition was often cast against liberal
innovations, and in the Government bureaux they were encompassed with
obstructive formalities, objections, and delays. [120]

By Royal Ordinance of 1844 strangers were excluded from the interior;
in 1857 unrepealed decrees were brought forward to urge the prohibition
of foreigners to establish themselves in the Colony; and, as late
as 1886, their trading here was declared to be "prejudicial to the
material interests of the country." [121]

The support of the friars referred to in p. 255 became a thing of
the past. Colonists had increased tenfold, the means of communication
and of exit were too ample for the security of the lenders, who, as
members of religious communities, could not seek redress at law, and,
moreover, those "lucky hits