41. In the year 1596, commerce with these islands was established in Cochinchina, and the Spaniards declined to establish a trading-post [on the land] which this king afterward bestowed upon them. In Tunquin also the Spaniards undertook their commerce; and in Zurrate, Vengala, and other kingdoms of India, both Moorish and heathen, they have been equally well received. Although, on account of the reverses of this commonwealth and the lack of courage in its merchants, the Spaniards have given up this commerce for several years past, it cannot be doubted that the aforesaid company has the opportunity to establish itself advantageously, furnishing a market for the products of these islands, bringing hither those of the said kingdoms, and establishing (if that shall be expedient) some trading-posts--with which their purchases will be at more reasonable prices, and their gains in España and Nueva España more assured. 42. Here at the same time another advantage presents itself. The commerce which now is carried on with Acapulco by private persons suffers many losses, occasioned by the unsuccessful fairs there. These losses originate in the necessity of selling the goods in order to send back [to Manila] the money that they produce; for even if the merchants lose in the sale something on the principal which they shipped, it is necessary to sell their goods in order to repay what they obtained from the obras pias for their investments. If the goods are left in Nueva España, in order to take advantage of an opportunity for better sale, they cannot meet the cost of the expenses, and here find themselves tormented by their creditors. The company cannot be placed in such straits, but will always sell their wares to advantage and profit; for when in Acapulco they do not obtain good returns on the merchandise, they can transfer it to the storehouse which they will have to establish in Mexico. This expedient alone will be sufficient to induce the Mexicans to make strenuous endeavors to be preferred in the sale at the said port, because they will not deceive the said company as they now do private persons, acting aggressively against them, in order to fix arbitrarily the prices of their goods--constrained as our merchants are to sell them, on account of the limitation of the time [of the fair], since the galleons ought to sail from the said port by the twenty-fifth of March. 43. I will conclude this chapter with the authority of the celebrated Don Geronimo Ustariz, [165] who, although he disapproves the commerce [managed] by companies in España and the Americas, considers it expedient in these islands; and indeed, when his arguments against the establishment of the said companies are examined, it will be seen that they do not apply to this commerce--where, on the contrary, it will be seen that not even the least progress can be secured, unless the company of which I am speaking be formed.