of the silk used by the looms of Granada and Toledo was formerly taken to Sevilla; but, since the year 618, that has been decreasing so much that the workmen of that trade, through lack of silk with which to work, have gone to Nueva España. The cause that lies at the root of this injury is found in the navigation from China to Manila, in which passage the silk is plundered by the Dutch; they carry it to their country, and send it to Castilla by the hands of third persons, and sell it at a great profit. It would be better to have it carried, as formerly, from Manila by way of Mexico, the vassals of this crown thus gaining the profit that its enemies gain. This is a matter of no slight importance, and one which has been advanced as a measure for securing a gain of one-half million for the income of the royal treasury--as appears from a decree of February 16, 602, which was sent to Filipinas; and from the memorials furnished in the year 621 by Oracio Levanto, who tried to make a contract for it. [XCVIII.--Ex. his.] The damage caused by the silver that is sent to the islands is not at the charge of their inhabitants. Fourth, in regard to the second point, which concerns the silver that is carried from Nueva España, it is not denied that it may be damaging and prejudicial to bleed that kingdom on that side; but it is denied that the excess in this is that which is alleged--as has been proved. [_In the margin_: "In number 83."] And if this be conceded, it ought to be noted that this commerce was granted in favor of the citizens of the islands, and not of others; and since most of them are poor, and cannot maintain a commerce of such value as those of Nueva España wish, the residents of Mexico have entered and gained control of a great part of the commerce, under [cover of] the permission granted to the citizens of Manila, and aided by certain persons. The violations of law have resulted from that; for, as the Mexican exporters make those consignments and carry the returns for them--in violation of the royal decrees, and in opposition to the inhabitants of Manila--they are hidden and kept not only from your Majesty's employees (or they endeavor to keep these under obligations, so that they will not denounce them), but from the citizens of the islands, who are not guilty in that. On the contrary, the inhabitants desire and endeavor to obtain a remedy for this, because of the damage that it causes them, not only in usurping their permission from them (as it has in fact been usurped, by good or evil means), but because, if more silver than what their inhabitants carry goes in the Filipinas ships, as that which exceeds [the permission], it belongs to the exporters of Mexico. Such money is sent for investment, and to be returned on the first voyage, and those who have it in charge try to buy on their arrival; and to shorten the time of their return, they will force prices in that place so high, that what is bought from the