China, and
increased the maximum value of the annual freightage to Acapulco to
$500,000 (silver) and that of the return trade to twice the amount.

[Higher limit on suspension of galleon voyages.] After the galleons to
Acapulco, which had been maintained at the expense of the government
treasury, had stopped their voyages, commerce with America was
handled by merchants who were permitted in 1820, to export goods
up to $750,000 annually from the Philippines and to visit San Blas,
Guayaquil and Callao, besides Acapulco.

[ British occupation inspired new wants.] This concession, however,
was not sufficient to compensate Philippine commerce for the injuries
it suffered through the separation of Mexico from Spain. The possession
of Manila by the English, in 1762, made its inhabitants acquainted with
many industrial products which the imports from China and India were
unable to offer them. To satisfy these new cravings Spanish men-of-war
were sent, towards the close of 1764, to the colony with products of
Spanish industries, such as wine, provisions, hats, cloth, hardware,
and fancy articles.

[Manila oppositions to trade innovations.] The Manila merchants,
accustomed to a lucrative trade with Acapulco, strenuously resisted
this innovation, although it was a considerable source of profit to
them, for the Crown purchased the Indian and Chinese merchandise for
its return freights from Manila at double their original value. In
1784, however, the last of these ships arrived.

[Subterfuges of European traders.] After the English invasion,
European vessels were strictly forbidden to visit Manila; but as
that city did not want to do without Indian merchandise, and could
not import it in its own ships, it was brought there in English and
French bottoms, which assumed a Turkish name, and were provided with
an Indian sham-captain.

[The "Philippine Company" monopoly.] In 1785, the Compania de Filipinas
obtained a monopoly of the trade between Spain and the colony, but it
was not allowed to interfere with the direct traffic between Acapulco
and Manila. The desire was to acquire large quantities of colonial
produce, silk, indigo, cinnamon, cotton, pepper, etc., in order to
export it somewhat as was done later on by the system of culture in
Java; but as it was unable to obtain compulsory labor, it entirely
failed in its attempted artificial development of agriculture.

[Losses by bad management.] The Compania suffered great losse