[The Chinese were at first allowed in Filipinas only to cultivate the soil and work in handicrafts; but they have drawn into their possession the control of trade and commerce, "winning the good-will of the government and the tolerance of the inhabitants of Manila with a thousand intrigues unknown in the country. They have done in Filipinas what the Europeans ought to have done, that is, to acquire wealth and send it, or themselves go with it, to their own country to establish commercial houses;" and thus they have added a marvelous amount to the wealth of China. Their method of doing business is explained--practically the same as is done in the United States at the present time; united capital and effort, division of the gains accordingly, quick sales and small profits, etc. They have obtained the exclusive retail trade in Manila, and a great part of the wholesale trade, "and thereby have aroused the hostility of corporations and private persons, notwithstanding that they are a class of peaceable and industrious people in the country." Bernaldez thinks that their tax of six pesos a year is much too small, considering the advantages which they enjoy and the large fortunes which they acquire in the islands; in Batavia the Chinese pay the government as much as thirty pesos a month for merely the permission to trade. The tax on them at Manila is farmed out to a Chinaman, and does not yield as much as it should. The following recommendations are made:] That measures be immediately taken to correct and render accurate the registration of the Chinese settled in Filipinas. That the individuals of that nation be divided into three classes: first, wholesale merchants, understanding by that term all those who embark for China and receive thence goods on commission or for their own account; second, retail merchants, or shopkeepers; third, artisans of every class. That these be distributed by groups under head-men [por cabecerias], which shall not exceed sixty individuals to each one. That every Chinaman, as soon as he is registered, shall be joined to one of these groups, the head-man becoming responsible for him. That these Chinese heads of barangay must give security for the tribute from those under them, and collect the tax and deliver it to the alcalde-mayor of their respective province, being responsible in every case for the residence and occupation of their tribute-payers; and for this commission collecting the three per cent. That in future the tax on the Chinese already settled and those who shall settle in Filipinas shall be as follows: the wholesale merchant, ten pesos fuertes a month; the retail merchant, four pesos ditto; the artisan of every class, two pesos ditto. That every Chinaman settled there shall be free to return to his own country, provided he is not married, the limit of six months being allowed for this. That the Chinaman, of whatever class, who shall not pay his respective tax within one