to so excessive a degree that, from the year 1706 to that of 1709, on account of the wars in Europa and the failure of fleets to go to Nueva España, a libra of cinnamon was maintained at twelve to thirteen pesos, this great profit being secured by the ships from Philipinas, which came in those years to Acapulco. And from the year 1725 to that of 1730 (at which time the petitioner [i.e., Pintado] was in Mexico) I knew from experience that in the ship which came in the year 1728 the Philipinos sold the cinnamon at five pesos a libra; and those who did not return in the galleon, and conveyed to Mexico some quantities of the cinnamon, succeeded in selling it at eight to nine pesos. In the year 1729, it was disposed of in Acapulco at thirty silver reals [or 3 3/4 pesos]. This is what occurs, and always will occur, on the aforesaid occasions of interval [between fleets], and, too, [it occurred] when the trade was carried on by both parties (which is what deprives commodities of value, through being handled by many persons); the exclusive control [of this spice], then, remaining in the [hands of the] Philipinos, from their being the only ones who transport it, the reputation and value which they can give it, and the lucrative profits which (without contest) they will obtain, are not doubtful." The objections raised by Manila in regard to expected competition are not well founded: the Company of Philipinas is in an inactive condition, and its directors have apparently abandoned their scheme, but in any case Cadiz would feel responsible for not allowing that company to injure Manila's spice trade; and, as for the English ship, the king can persuade or prevent its owners from including spices in their cargoes. The prices of spice charged to Manila by the Dutch are much more likely to fall than to rise, when Manila has the exclusive control of that trade. Cadiz asserts that the costs of trade enumerated by Manila are too large, and modifies them thus: Cinnamon (of which, as in all other commodities, there are three grades--poor, medium, and excellent) ought to cost but 8 reals at Manila. The duties paid there, on the basis of 44 ducados (of 11 reals each) a tonelada, should be only 13 pesos a churlo, according to its measurement in palmos; and the other expenses of placing it on board amount to 3 pesos--so that it costs only 154 pesos a sack to convey the cinnamon to Acapulco, instead of 203, as Manila claims. The profit, therefore, amounts to 77 pesos, 1 real, which is equal to 50 per cent, instead of 13. In the same way Cadiz reckons the gain on pepper at 96 per cent, and on cloves at 43 per cent, against Manila's estimate of a loss on pepper and a gain of 24 per cent on cloves. It must be noted, too, that Manila is not satisfied with less than 100 per cent gain, while the Spanish traders are hardly able to make good the principal cost of their wares. The amount of ballast required for a light cargo is also