affirmed, that, summing up all the surcharges under which the shipments left the port of Manila, and comparing them with those which might have been sent direct from the above-mentioned points, and without so extraordinary a detour as the one prescribed by law, the difference that followed in the prime cost of the cargos was not less than 80 per cent.  The urgent manner, however, in which the directors of the company did not cease to deplore and complain of so evident a hardship, at length had the desired effect, and after existing ten or twelve years, so preposterous a system was successfully overthrown, and permission obtained from the king for the establishment of Spanish factories in the neighborhood of the China and India manufactures, as well as the power of addressing shipments direct to those foreign dominions.  The enlightened policy of their respective governments did not allow them to hesitate in giving a favorable reception to our factors and vessels, and the purchases and shipments of Asiatic goods being thus realized without the old obstructions, the Company was reasonably led to hope being able soon to increase its operations, and progressively present more satisfactory results to the shareholders, when those political convulsions succeeding soon after, which have unhinged or destroyed all the ordinary relations of trade, compelled them to abandon their hopes, till the wished-for calm should be again restored.

[Temporary expedient of 1803.] In consequence of the new character and route given to the commercial enterprises of the Company, as authorized by a royal decree of July 12, 1803, the functions of the Manila factors were reduced to the annual shipment of a cargo of Asiatic goods to Peru, valued at $500,000, but only as long as the war lasted, and till the expiration of the extraordinary permits granted through the goodness of the king, and also to the transmitting to China and Bengal of the specie brought from America, and the collecting of certain quantities of indigo, sugar, or other produce of the Islands, with a view to gain by reselling it in the same market.  Consequently, the moment things return to their pacific and ordinary course, will be the period when the necessity of the future existence of this establishment will cease, or at least, when the propriety will be evident of its reform or assimilation to the other commission houses, carrying on trade in Vera Cruz, Mexico, etc., which, not being hired establishments, do not create expenses when they cease to transact business.

[Competition of foreign merchants.] Against a measure of this kind it would be useless to allege, that, “by the exclusive privilege to introduce spirits and European effects into the colony, the Company has contracted the obligation of always keeping it properly supplied; that their very institution had for the basis the general improvement of the Islands, and in order duly to comply with these duties, it becomes indispensably necessary to keep up the present