Valuable information regarding the trade between the Philippines and Nueva España is furnished by the Extracto historial (Madrid, 1736), from which we take such matter as pertains to that commerce up to 1640. A brief summary of royal ordinances thereon is followed by a memorial sent (1640) to the royal visitor for Mexico, Juan Palafox y Mendoza, by Juan Grau y Monfalcón, agent at the Spanish court for the Philippine Islands. As Palafox is commissioned to investigate the condition, needs, and commerce of the islands, Grau sends him this memorial by way of information thereon, and as a brief for the islands in their controversy over the grievous restrictions placed on their commerce with Nueva España (which is mainly their export thither of Chinese silk fabrics). Grau's argument is carefully divided and subdivided; it is not always ingenuous, and sometimes he overshoots his mark, or uses the same premises for different and at times incongruous results; but it is on the whole a forcible presentation of the difficulties and embarrassments under which that commerce is laboring, and even the colony striving for existence. He constantly urges the great importance of the Philippines to the Spanish crown, not only as a center of missionary effort in the Orient, but for the defense of the Moluccas and the spice trade, the maintenance of Eastern India, and the diversion from that region and from the American coasts of the Dutch enemy, on whom the Philippine colony is a continual and effective check; all these considerations are discussed at length. He lauds the bravery, loyalty, and piety of the Spaniards in those islands, and their great services to the crown. He computes the expenditures necessary to sustain the Philippine colony, and the revenues which it yields, and shows that its actual expense is but moderate, and far less than is supposed. From even this should properly be deducted the expenses of sustaining Moluco, a burden which falls on the Philippines, although the Spice Islands and their trade are the property of Portugal; such computation leaves but 26,000 pesos annually as the actual cost of maintaining the Philippines, Grau proposes two plans for securing this end: one, to pay all the expenses of the islands directly from the royal treasury; the other, to grant them a sufficient amount of commerce--the latter being the most expedient and desirable method. Granting this, it remains to consider the character, amount, and form of such commerce; Grau expatiates on the third of these in especial, recounting the annoyances and injuries inflicted at Acapulco on Philippine merchants and their goods.