Juan Moron, a military officer, sends (June 30) a report of his expedition to Maluco with troops to succor the Spanish fort there. He urges that a stone fort be erected for the defense of Manila, and that some encomiendas of Indians be granted for the support of the municipal government; and commends the envoy Sanchez.
A group of documents which contain “measures regarding trade with China” (1586-90) throws much light on economic conditions in the Spanish colonies at that time. The first of these (dated June 17, 1586), although unsigned, is apparently written by a member of the royal Council of the Indias. He cites letters from several Spanish officials of high standing, to show that the Philippine-Chinese trade is injuring that of the mother-country and of Mexico; and the complaint is again made that Spanish money is continually flowing into China, thus depleting the wealth of the colonies. The writer recommends that the latter be forbidden to import Chinese goods; and that the viceroy of Nueva Espana be directed to take measures to accomplish this. Two days later, a decree to this effect is signed by the king. Extracts from a letter written (November 15) by the viceroy, after referring to the success of the efforts made to sustain the Spanish colony in the Philippines, and to propagate the Christian faith among the natives there, indicate the desirability of continuing the trade begun with China. Through this agency, his Majesty’s subjects in the colonies are benefited, and (a still more important consideration) an open door for the entrance of the Christian faith into that heathen land is secured. If the Chinese trade be cut off, the Spanish population of the Philippines cannot be maintained, and the natives will rebel against their conquerors. The encomenderos depend upon the Chinese for clothing and food, and for the opportunity to dispose of the goods received from the Indians as tributes. In view of all these considerations, the viceroy has abrogated the royal decree for the present, and has, besides, ordered the collection of a heavy duty on all cloth imported from Spain to Mexico.
A brief of Sixtus V (November 15, 1586) erects into a province the former custodia of the Franciscan friars in the Philippines.