Page:The Philippine Islands, 1493-1803 (Volume 01).djvu/71

 Other changes were the establishment of direct communication with Spain and trade with Europe by a national vessel in 1766. These expeditions lasted till 1783 and their place was taken in 1785 by the Royal Philippine Company, organized with a capital of $8,000,000, and granted the monopoly of the trade between Spain and the islands. The Manila merchants resented the invasion of their monopoly of the export trade, and embarrassed the operations of the company as much as they could. It ceased to exist in 1830.

By this system for two centuries the South American market for manufactures was reserved exclusively for Spain, but the protection did not prevent Spanish industry from decay and did retard the well-being and progress of South America. Between Mexico and the Philippines a limited trade was allowed, the profits of which were the perquisites of the Spaniards living in the Philippines and contributed to the religious endowments. But this monopoly was of no permanent advantage to the Spanish residents. It was too much like stock-jobbing, and sapped all spirit of industry. Zúñiga says that the commerce made a few rich in a short time and with little labor, but they were very few; that there were hardly five Spaniards in Manila worth $100,000, nor a hundred worth $40,000, the rest either lived on the King's pay or in poverty. "Every morning one could see in the streets of Manila, in the greatest poverty and asking alms, the