s through
its erroneous system of operation, and the incapacity of its officials
(it paid, for example, $13.50 for a picul of pepper which cost from
three to four dollars in Sumatra).

[Entrance of foriegn ships and firms.] In 1789 foreign ships were
allowed to import Chinese and Indian produce, but none from Europe. In
1809 an English commercial house obtained permission to establish
itself in Manila. [24] In 1814, after the conclusion of the peace
with France, the same permission, with greater or less restrictions,
was granted to all foreigners.

[Trade free but port charges discriminating.] In 1820 the direct
trade between the Philippines and Spain was thrown open without any
limitations to the exports of colonial produce, on the condition
that the value of the Indian and Chinese goods in each expedition
should not exceed $50,000. Ever since 1834, when the privileges
of the Compania expired, free trade has been permitted in Manila;
foreign ships, however, being charged double dues. Four new ports
have been thrown open to general trade since 1855; and in 1869 the
liberal tariff previously alluded to was issued.

[Port's importance lessened under Spain.] Today, after three centuries
of almost undisturbed Spanish rule, Manila has by no means added to the
importance it possessed shortly after the advent of the Spaniards. The
isolation of Japan and the Indo-Chinese empires, a direct consequence
of the importunities and pretensions of the Catholic missionaries, [25]
the secession of the colonies on the west coast of America, above all
the long continuance of a distrustful commercial and colonial policy--a
policy which exists even at the present day--while important markets,
based on large capital and liberal principles, were being established
in the most favored spots of the British and Dutch Indies; all these
circumstances have contributed to this result and thrown the Chinese
trade into other channels. The cause is as clear as the effect,
yet it might be erroneous to ascribe the policy so long pursued to
short-sightedness. The Spaniards, in their schemes of colonisation,
had partly a religious purpose in view, but the government discovered
a great source of influence in the disposal of the extremely lucrative
colonial appointments. The crown itself, as well as its favorites,
thought of nothing but extracting the most it could from the colony,
and had neither the intention or the power to develop the natural
wealth