By a Royal decree, in 1844, strangers were excluded from the interior of the islands. In 1857 old decrees were used to prevent foreign establishments in the colony. In 1886 foreign trade was declared prejudicial to the "material interests of the country." Trade with the Natives. The conservatism and ignorance of the natives have similarly stood in the way of commercial progress. They could not be made to understand that the change in quotations was not due to the caprice of buyers. Many of them lost by withholding goods when the quotations did not please them. Only in 1884, when the whole world was affected by the crisis in the sugar trade, could they be made to perceive that quotations were quite beyond the control of the merchants. Accustomed to deal with the Chinese, the natives have no fixed prices for their products. The Chinese understand them, and put prices on their goods that will allow for a large reduction. In the end, the native goes away contented, though the shrewd Chinaman has usually the best of the bargain. Even important mercantile houses seldom state prices, business being conducted on the shifting Asiatic scale. Foreign capitalists distrust trade with the natives, whose word usually cannot be depended upon, and employ middlemen to collect produce. These are persons born in the colony, who understand at once the business methods of the foreigner and the shifty customs of the natives. And they generally bring the opposite parties to terms. The only real basis of wealth in the Philippines is the raw material of agriculture and the forest. Nothing has been done to foster the industrial arts, and the manufactures are insignificant, the cigar product being the principal one. The Decline of American Trade. From the opening of the large export trade until recently, Americans were supreme. But the failure of the great house of Russell & Sturgis made a change. Other traders rose upon their ruins, and of late years England has gained the bulk of the trade. The downfall of the Americans was completed after the outbreak of the Cuban troubles in 1895. The Spanish hatred of the Yankee was reflected in these far-off islands, and, by petty annoyances that soon became intolerable, the last American firms were crowded out. Recent Measures and Statistics. In 1891 a protective tariff was laid by Spain on the trade of the Philippines. This diverted to the home-country most of the traffic formerly enjoyed by England and other countries. Iron goods and hardware are now furnished principally by Germany and Switzerland, but the Manchester cotton goods are supplemented by similar fabrics made in Barcelona. The imports from the United States are chiefly kerosene oil and flour. As an indication of the growth of Philippine trade since the intrusion of foreign shippers put an end to the mediæval obstructions of Spain, some figures may be quoted: