[Local markets.] Besides the traffic founded on ordinary consumption, the necessity of obtaining assortments of home-manufactured as well as imported goods, in order to supply the markets, known by the name of tianguis, and which are held weekly in almost every town, there is another species of speculation, peculiar to the rich natives and Sangley mestizos, an industrious race, and also possessed of the largest portion of the specie.  This consists in the anticipated purchase of the crops of indigo, sugar, rice, etc., with a view to fix their own prices on the produce thus contracted for, when resold to the second hand.  A propensity to barter and traffic, in all kinds of ways, is indeed universal among the natives, and as the principal springs which urge on internal circulation are already in motion, nothing more is wanting than at once to destroy the obstacles previously pointed out, and encourage the extension of luxury and comforts, in order that, by the number of the people’s wants being increased, as well as the means of supplying them, the force and velocity of action may in the same proportion be augmented.

[External commerce.] Under “External Commerce” generally are comprised the relations the Philippine Islands keep up with other nations, with the Spanish possessions in America, and with the mother country; or, in other words, the sum total of their imports and exports.

[Outside deterrents.] Many are the causes which, within the last ten or twelve years, have influenced the mercantile relations of these Islands, and prevented their organization on permanent and known principles.  The chief one, no doubt, has been the frequent and unforeseen changes, from peace to war, which have marked that unhappy period, and as under similar circumstances merchants, more than any other class of persons, are in the habit of acting on extremes, there have been occasions in which, misled by the exaggerated idea of the galleon of Acapulco, and anxious to avail themselves of the first prices, generally also the highest, foreign speculators have inundated Manila with goods, by a competition from all quarters; and others, owing to the channels being obstructed, when this market has experienced an absolute scarcity of commodities, as well as of funds necessary to continue the usual and almost only branch of commerce left.  The frequent failure of the sugar and indigo crops, has also in many instances restrained the North Americans and other neutrals from coming to these Islands with cargoes, and induced them to prefer Java, where they are at all times sure of finding returns.  Besides the influence of these extraordinary causes on the uncertainty and irregularity of external commerce, no small share must also be attributed to the strangeness of the peculiar constitution of the country, or the principles on which its trade is established.