The Manila merchants were in great excitement. The Governor, under pretext that the original Royal Decree ought to have been transmitted direct to the Philippines and not merely communicated by the Mexican Viceroy, agreed to "obey and not fulfil" its conditions. From the year 1720, during the period of prohibitions, the Royal Treasury lost about P50,000 per annum, and many of the taxes were not recovered in full. Besides this, the donations to Government by the citizens, which sometimes had amounted to P40,000 in one year, ceased. A double loss was also caused to Mexico, for the people there had to pay much higher prices for their stuffs supplied by Spanish (home) monopolists, whilst Mexican coffers were being drained to make good the deficits in the Philippine Treasury. The Manila merchants were terribly alarmed, and meeting after meeting was held. A Congress of Government officials and priests was convened, and each priest was asked to express his opinion on the state of trade. Commercial depression in the Philippines had never been so marked, and the position of affairs was made known to the King in a petition, which elicited the Royal Decree dated April 8, 1734. It provided that the value of exports should thenceforth not exceed P500,000, and the amount permitted to return was also raised to P1,000,000 (always on the supposition that 100 per cent. over cost laid down would be realized). The dues and taxes paid in Acapulco on arrival, and the dues paid in Manila on starting, amounted to 17 per cent. of the million expected to return. [116] This covered the whole cost of maintenance of ships, salaries, freight, and charges of all kinds which were paid by Government in the first instance, and then recovered from the _Consulado_. The fixed number of merchants was to be decided by the merchants themselves without Government intervention. Licence was granted to allow those of Cavite to be of the number, and both Spaniards and natives were eligible. Military and other professional men, except ecclesiastics, could thenceforth be of the number. Foreigners were strictly excluded. The right to ship (_boleta_) was not to be transferable, except to _poor widows_. A sworn invoice of the shipment was to be sent to the royal officials and magistrate of the Supreme Court of Mexico for the value to be verified. The official in charge, or supercargo, was ordered to make a book containing a list of the goods and their respective owners, and to hand this to the commander of the fortress in Acapulco, with a copy of the same for the Viceroy. The Viceroy was to send his copy to the Audit Office to be again copied, and the last copy was to be forwarded to the Royal Indian Council.