upon taking possession of the colony, was then passing that part of the coast with sixty-two ships and a large number of soldiers.  He hastened at once, with all the help which he could summon together in the neighborhood, to Manila, where he was nominated to the command of the troops, in the place of the already deposed master of the forces; and he drove the Chinese from the town, which they had destroyed.  They then withdrew to Pangasinan, and Salcedo burnt their fleet; which exploit was achieved with very great difficulty.  In 1576 this Cortes of the Philippines died. [261]

[Commercial importance of early Manila.] Apart from the priests, the first-comers consisted only of officials, soldiers, and sailors; and to them, naturally, fell all the high profits of the China trade.  Manila was their chief market, and it also attracted a great portion of the external Indian trade, which the Portuguese had frightened away from Malacca by their excessive cruelty.  The Portuguese, it is true, still remained in Macao and the Moluccas:  but they wanted those remittances which were almost exclusively sought after by the Chinese, viz., the silver which Manila received from New Spain.

[Spain and Portugal united.] In 1580 Portugal, together with all its colonies, was handed over to the Spanish Crown; and the period extending from this event to the decay of Portugal (1580-1640) witnessed the Philippines at the height of their power and prosperity.

[Manila as capital of a vast empire.] The Governor of Manila ruled over a part of Mindanao, Sulu, the Moluccas, Formosa, and the original Portuguese possessions in Malacca and India.  “All that lies between Cape Singapore and Japan is subject to Luzon; their ships cross the ocean to China and New Spain, and drive so magnificent a trade that, if it were only free, it would be the most extraordinary that the world could show.  It is incredible what glory these islands confer upon Spain.  The Governor of the Philippines treats with the Kings of Cambodia, Japan, China.  The first is his ally, the last his friend; and the same with Japan.  He declares war or peace, without waiting for the command from distant Spain.” [262] [Dutch opposition.] But the Dutch had now begun the struggle, which they managed to carry on against Philip ii in every corner of the world; and even in 1510 De Los Rios complained that he found the country very much altered through the progress and advance made by the Dutch; also that the Moros of Mindanao and Sulu, feeling that they were supported by Holland, were continually in a state of discontent.

[Decline of colony.] The downfall of Portugal occasioned the loss of her colonies once more.  Spanish policy, the government of the priests, and the jealousy of the Spanish merchants and traders especially, did everything that remained to be done to prevent the development of agriculture and commerce—­perhaps, on the whole, fortunately, for the natives.