Law XXXV

It having been committed to, and charged upon, the governor and captain-general of the Filipinas that he should endeavor to introduce, in the exchange and barter for the merchandise of China, trade in other products of those islands, in order to avoid, when possible, the withdrawal of the great sums of reals which are taken to foreign kingdoms, the governor executed it in the form and manner that he considered most fitting; and a method called pancada [2] was introduced, which has been observed and executed until now.  It is our will that that method be observed and kept, without any change, until we order otherwise. [Felipe II—­Anover, August 9, 1589; Toledo, January 25, 1596.]

Law LXVI

We order that a duty be collected on the first and subsequent sales or all the merchandise shipped from Filipinas to Acapulco, and the pesos per tonelada on freight according to custom; for this sum and much more is needed to pay the troops, and equip the vessels that engage in commerce.  In this there shall be no innovation. [Felipe II—­Anover, August 9, 1589.]

Law V

We ordain and order that there shall be no permission to trade or traffic between Peru, Tierra-Firme, Guatemala, or any other parts of the Indias, and China or the Filipinas Islands, even though it be by license of the viceroys, audiencias, governors, or magistrates, under penalty of confiscation of the merchandise that shall be shipped.  The masters and pilots shall also incur the confiscation of all their property and ten years in the galleys. [Felipe II—­San Lorenzo, December 18, and February 6, 1591.]

Law I

Inasmuch as it is advisable to avoid trade between the West Indias and China, and regulate that of Filipinas, as it has increased considerably, thus causing the decrease of that of these kingdoms:  therefore, we prohibit, forbid, and order, that no person of the natives or residents of Nueva Espana, or any other part of the Indias trade or be allowed to trade in the Filipinas Islands.  Should anyone do so, he shall lose the merchandise with which he shall trade, and it shall be applied, one-third each, to our royal exchequer, the denouncer, and the judge who shall sentence him.  In order to show favor to the citizens and inhabitants [of Filipinas] and that that trade may be preserved to sufficient extent, we consider it best that they alone may trade with Nueva Espana, in the manner ordained by the other laws, with this provision, that they convey their goods, or send them with persons who shall come from the said islands.  They cannot send them by way of commission or in any other form to those who actually reside in Nueva Espana, in order to avoid the frauds of consigning them to other persons—­unless it be because of the