colony, and had neither the intention or the power to develop the natural wealth of the country by agriculture and commerce.  Inseparable from this policy, was the persistent exclusion of foreigners. [26] It seemed even more necessary in the isolated Philippines than in America to cut off the natives from all contact with foreigners, if the Spaniards had any desire to remain in undisturbed possession of the colony.  In face, however, of the developed trade of today and the claims of the world to the productive powers of such an extraordinarily fruitful soil, the old restrictions can no longer be maintained, and the lately-introduced liberal tariff must be hailed as a thoroughly well-timed measure.

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[Galleon story sidelight on colonial history.] The oft-mentioned voyages of the galleons betwixt Manila and Acapulco hold such a prominent position in the history of the Philippines, and afford such an interesting glimpse into the old colonial system, that their principal characteristics deserve some description.

[Chinese part in galleon trade.] In the days of Morga, towards the close of the sixteenth century, from thirty to forty Chinese junks were in the habit of annually visiting Manila (generally in March); towards the end of June a galleon used to sail for Acapulco.  The trade with the latter place, the active operations of which were limited to the three central months of the year, was so lucrative, easy, and safe, that the Spaniards scarcely cared to engage in any other undertakings.

[Favoritism in allotment of cargo space.] As the carrying power of the annual galleon was by no means proportioned to the demand for cargo room, the governor divided it as he deemed best; the favorites, however, to whom he assigned shares in the hold, seldom traded themselves, but parted with their concessions to the merchants.

[Division of space and character of cargo.] According to De Guignes, [27] the hold of the vessel was divided into 1,500 parts, of which the majority were allotted to the priests, and the rest to favored persons.  As a matter of fact, the value of the cargo, which was officially limited to $600,000, was considerably higher.  It chiefly consisted of Indian and Chinese cottons and silk stuffs (amongst others fifty thousand pairs of silk stockings from China), and gold ornaments.  The value of the return freight amounted to between two and three millions of dollars.

[Profit in trade.] Everything in this trade was settled beforehand; the number, shape, size, and value of the bales, and even their selling price.  As this was usually double the original cost, the permission to ship goods to a certain amount was equivalent, under ordinary circumstances, to the bestowal of a present of a like value.  These permissions or licenses (boletas) were, at a later period, usually granted to pensioners and officers’ widows, and to officials, in lieu of an increase of salary; these favorites were forbidden, however, to make a direct use of them, for to trade with Acapulco was the sole right of those members of the Consulado (a kind of chamber of commerce) who could prove a long residence in the country and the possession of a capital of at least $8,000.