Page:The Philippine Islands, 1493-1803 (Volume 01).djvu/66

 The Seville merchants through whose hands the Spanish export trade to the New World passed looked with apprehension upon the importation of Chinese fabrics into America and the exportation of American silver to pay for them. The silks of China undersold those of Spain in Mexico and Peru, and the larger the export of silver to the East the smaller to Spain. Consequently to protect Spanish industry and to preserve to Spanish producers the American market, the shipment of Chinese cloths from Mexico to Peru was prohibited in 1587. In 1591 came the prohibition of all direct trade between Peru or other parts of South America and China or the Philippines, and in 1593 a decree—not rigorously enforced till 1604—which absolutely limited the trade between Mexico and the Philippines to $250,000 annually for the exports to Mexico, and to $500,000 for the imports from Mexico, to be carried in two ships not to exceed three hundred tons burden. No Spanish subject was allowed to trade in or with China, and the Chinese trade was restricted to the merchants of that nation.

All Chinese goods shipped to New Spain must be consumed there and the shipping of Chinese cloths to Peru in any amount whatever even for a gift, charitable endowment, or for use in divine worship was absolutely prohibited. As these regulations were