With all these productions, the Indians formed a species of commerce, or barter, among each other, still considering gold as the representative of general value, or medium of exchange; they were likewise in the habit of trading with the Chinese, and with the Moors of Borneo, for flag-stones, copper, articles of furniture, &c. but in very small quantities, their wants being necessarily few, going almost naked, baking their rice in green canes, and eating it with the leaf of the plantain. The Spaniards, soon after they came into possession of these islands, commenced an extended commerce with India and China, which brought to New Spain, a proportionable increase of profit; and in a little time, Manila became so rich a colony, that it created a jealousy among the merchants of Seville, and, in consequence of their petition, its commerce was restricted. From this period it began to decline, and to the great detriment of these islands, which cannot subsist by the exchange of their own productions alone, these being very limited in their nature, and incapable of much extension, surrounded as they are by other nations, more industrious, and who can work at a cheaper rate [8]. The luxuriant nature of the soil of these islands, has been much and justly extolled, but, proper allowance has not been made, for the sloth of the Indians, the hurricanes or tempests, which sweep every thing before them, the destructive insects, the rats, and many other things, which diminish greatly the fertility of these beautiful islands [9]. CHAPTER II. Of the Inhabitants the Spaniards found in the Philippines--their Language, Customs, and Religion. Our historians, affecting always the marvellous, divide into different classes, the inhabitants the Spaniards found, on their first arrival in the Philippines. They denominate them satyrs, men with tails, sea monsters, and whatever else of the fabulous, is calculated to raise wonder in the human mind. In reality, however, they found only two classes, that which we know by the appellation of Negroes, and that of the Indians. The Negroes are very small in stature, and more of a copper colour than those of Guinea, with soft hair and flat noses. They lived in the mountains, almost in a state of nature, merely covering the forepart of the body, with a piece of the bark of a tree; and they subsisted upon roots, and such deer, as in hunting, they could kill with the bow and arrow, at which they were very dexterous. They slept where night overtook them, and they possessed no idea of religion or civilized habits, rather, indeed, ranking with beasts than as human beings. The Spaniards, have at length succeeded, in domesticating many of them, and converting them to christianity, to which they give no opposition, so long as they get subsistence, but if they are obliged to labour, for the maintenance of their family, they return again to the mountains.