1

THE FIRST AND THE LAST: THE TALE OF TWO GALLEONS THE SAN PEDRO, 1565 AND THE
MAGALLANES, 1817

By

Augusto V. de Viana, Ph.D.

University of Santo Tomas
Manila

Abstract

The first of the Manila Galleons also known as the Nao de Manila were certainly elements of
Miguel Lopez de Legazpi’s fleet. In 1565 after successfully establishing a Spanish settlement in Cebu,
Legazpi sent two of his ships, the San Pedro , accompanied by a patache, back to the New World. Under
the guidance of its navigator, Fr. Andres de Urdaneta successfully arrived in Mexico on October 6, 1565.
The San Pedro was the first major vessel to complete an east ward transpacific travel. It blazed the trail
of the Manila galleons. Even if it did not originate from Manila it carried some goods from the East. The
San Pedro was actually the first of the Nao de China also known as the Nao de Manila or the Manila
galleon. From that time on galleons sailed regularly between the Philippines and Mexico for the next
250 years. This activity, a government monopoly brought goods, people and influenced cultures on both
sides of the Pacific. By the dawn of the 19 th century the galleon trade entered its twilight years as a
result of increasing competition from various quarters as well as political events in Europe and the
Americas. In 1815 the galleon Magallanes left the Philippines in what was said to be the last voyage of
the Nao de Manila. Contrary to what is written in various textbooks, the Manila galleon trade did not
die in 1815. The proper end of this historic activity should be in the year 1817 when the Magallanes
made its return trip to the Philippines. Historical documents also depict what happened to the
Magallanes after the galleon trade had ended.

Though the use of historic reports and documents, this paper will discuss the beginning and the end of
the galleon trade in 1565 and in 1817.

Key words: Manila galleons, voyages, trade

About the Author

AUGUSTO VICENTE DE VIANA is a graduate of Bachelor of Arts in Asian Studies, Master of Arts in History
and Doctor of Philosophy in History from the University of Santo Tomas. He has written books on
Philippine History among which are: Apples and Ampalaya: Bittersweet Glimpses of the American
Period in the Philippines; Kulaburetor! The Issue of Political Collaboration During World War II; The I-
Stories Events in the Philippine Revolution and the Filipino-American War as Told by its Eyewitnesses
and Participants; In the Far Islands: The Role of Natives from the Philippines in the Conquest,
Colonization and Repopulation of the Mariana Islands 1668-1903l Halo-Halo, Hardware and Others the
Story of the Japanese Commercial Community of Manila, 1900-1945 and Stories Rarely Told The Hidden
Stories and Essays on Philippine History. Dr. de Viana authored and co-authored various books on
Philippine History which were used by college, secondary and elementary students. He produced
articles which appeared in scholarly journals in the Philippines and abroad among which were the
Philippiniana Sacra and Ad Veritatem of the University of Santo Tomas, The Micronesian Journal of the
Humanities and the Social Sciences of the University of Charles Sturt University, New South Wales,
Australia, the Jurnal Kaijan Wilaya of the Indonesian Institute of Sciences and the Jurnal Sejarah of the
University of Malaya. Dr. de Viana is currently the Chairperson of the Department of History in the
University of Santo Tomas and holds the academic rank of Associate Professor III.

Contact details: augustodeviana@gmail.com

Cell: 09277661151
Telefax 7499779
 2

THE FIRST AND THE LAST: THE TALE OF TWO GALLEONS THE SAN PEDRO, 1565 AND THE
MAGALLANES, 1817

By

Augusto V. de Viana, Ph.D.

University of Santo Tomas
Manila

The Search for a Return

Route to the Americas

The viability of the Philippines as a hub of trade between the East and West hinged on finding
the secure route for sailing ships. To use the old route passing through the straits of Malacca , across
the Indian Ocean and around Africa would be risky because ships would have to pass through territories
claimed by Spain’s rival, Portugal. Even before the actual colonization of the Philippines by Spain in
1565, King Philip II gave an order to find a return route from the Philippines to New Spain. Previous
expeditions which tried to make an eastward crossing of the Pacific have failed. The cause of failure was
due to the lack of understanding about the currents of the Pacific Ocean. 1

Where Espinosa, de Salazar and Villalobos failed (from Levesque, History of Micronesia, HM)

1
In 1521 the remnants of Magellan’s expedition planned to return to Spain via two directions: The
Victoria under Sebastian El Cano would return via the Indian Ocean and around the Cape of Good Hope while the
Trinidad was to return to Spain by crossing the Pacific. The Victoria managed to return to Spain on September 8,
1522. The Trinidad on the other hand was forced to return to the Moluccas after four months of sailing and
encountering unfavorable winds and currents. The remnants of the Loaisa Expedition under Toribio Alonso de
Salazar also tried to sail eastwards across the Pacific and also failed. The Villalobos expedition tried a northeasterly
passage which also failed and it also tried to sail across the Pacific by sailing eastwards from the latitude of the
Solomons which also failed due to unfavorable winds and currents.
 3

Chart showing the North Pacific Current (top) and the North Equatorial Current (middle)
(From David Lewis, We the Navigators, the Ancient Art of Landfinding in the Pacific)

There was some ray of hope when some of the men from these previous expeditions returned
to Spain from the East Indies. One of these returnees was Andres de Urdaneta who was a member of
the Loaisa expedition. It appeared that Urdaneta made a personal communication which became
known to Prince Philip who was then serving as a regent under the monarchy of his father Charles I.
Philip therefore knew about Urdaneta who became an Augustinian friar. Urdaneta had studied patterns
of currents in the northern Atlantic and found out that currents originating near the equator would
curve into the opposite direction after reaching a continental mass. After assuming the monarchy in
1556 Philip ordered Don Luis de Velasco his Viceroy in New Spain to inquire about people who may be
knowledgeable about establishing a trade route across the Pacific. After a series of communications
King Philip ordered Don Luis Velasco to prepare an expedition that would cross the Pacific and explore
new land. The main objective of the order was to determine how a ship coming from the other side of
the Pacific can return to New Spain. 2

Fray Andres de Urdaneta (from Levesque, HM)

2
James R. Moriarty and Mary S. Krestman, “Philip II Orders the Journey of First Manila Galleon,” San
Diego Historical Society Quarterly, October 1966, Vol. 12, No. 4, p. 4.
 4

Urdaneta’s signature (from Levesque, HM)

In his letter to the King, Urdaneta understood that the location of the lines of demarcation
according to the Treaty of Tordesillas on June 7, 1494. His belief was based on his personal experience
and computation. According to the Treaty of Tordesillas the West Indies line of demarcation was 370
leagues west of the Cape Verde Islands. Measuring his distance from the westernmost island of the
group this line would fall 46 degrees longitude. This is computed through Urdaneta’s measure of 17.5
leagues to a degree which amounts to 21.1 degrees west of Santo Antao. Using the Pacific route would
have the advantage of avoiding areas claimed by Portugal.

The King then issued a royal order commissioning Miguel Lopez de Legazpi as the leader of the
expedition that will leave New Spain to colonize the newly discovered lands. Urdaneta who had taken
the vows of an Augustinian priest would serve as the expedition’s navigator. Fr. Urdaneta was
convinced that Spain should colonize New Guinea instead since it falls on the Spanish half of the world
under the Treaty of Tordesillas. On November 21, 1564, the Legazpi expedition left Navidad, Mexico. .
In Legazpi’s possession was a sealed letter to be opened only when the expedition was 100 leagues at
sea. It contained an order to colonize the Philippines and ignoring Fr. Urdaneta’s recommendation to
colonize New Guinea instead. The King’s order showed that he intended to take the Philippines and
make it a center of trade with Asia and the Europe.

The expedition followed Magellan’s 1521 route. It was aided by a westward sailing current now
known as the North Equatorial Current. This current allowed the expedition to easily sail from Guam to
the Philippines in a week. As the expedition’s navigator, Fr. Urdaneta knew about the current from the
experience of Magellan and Loaisa. Legazpi’s ships anchored off Gamay Bay in Eastern Samar on
February 13, 1565. The expedition then proceeded to Cebu to establish a permanent settlement there.
Legazpi was prevented by hostile natives under Rajah Tupas and the expedition tried to proceed to
Butuan in northeastern Mindanao by sailing east but was prevented due to contrary winds and tricky
tides.3 The fleet was pushed northward to southern Bohol where Legazpi concluded a treaty with two
native chiefs Sikatuna and Sigala in the middle of March 1565. After concluding a treaty with the natives
of Bohol, Legazpi then returned to Cebu and defeated Rajah Tupas whose forces were driven inland.
Legazpi then founded the settlement of Villa del Santíssimo Nombre de Jesus now Cebu City. The whole
archipelago was later formally claimed for Spain. The defeated natives of Cebu were persuaded to
return to their former settlement and accept Spanish sovereignty.

With the Spaniards settled in Cebu Legazpi dispatched one of his ships, the San Pedro to begin
its return to New Spain via the Pacific on June 1, 1565. The San Pedro carried nine months’ worth of
provisions. Urdaneta drew from the experiences of the previous expeditions which ran out of supplies
at sea while sailing towards America. The lack of supplies forced what remained of the expeditions of
Villalobos and Loaisa to turn back. The San Pedro was placed under the command of Felipe Salcedo,
Legazpi’s grandson while Urdaneta worked as its navigator. The vessel cleared the San Bernardino Strait
on June 8 and reached the open ocean before swinging northward. By July 1, it was located at 24
degrees North latitude in the vicinity of the Volcano Islands. After reaching 30 degrees north the ship
turned eastward. Two months later it reached the North American coast then headed south along the
California coast until it reached Acapulco on September 8, 1565. The voyage took 129 days and cost the
lives of 16 men out of a crew of 44 which were lost due to fever and colds. 4
3
Nicholas, P. Cushner, S.J. The Isles of the West (Quezon City: Ateneo University Press, 1966),
p. 73.
4
Ibid., p. 81.
 5

In sailing the way he did Urdaneta made use of the Kuroshio or Black Current which begins east
of the Philippines and it moves on a northeasterly direction until reaching the vicinity of the Ogasawara
and Bonin Islands before curving to the east until it reaches the Canadian coasts. The current is known
in Chinese and Japanese records. It is mentioned as the Kuroshio stream in Japanese provincial records
and maps in Ryukyu in 1646-1647. 5 The current was utilized as the “kentoshi routes” by Japanese
envoys to China during the Táng dynasty although the Japanese did not venture to the center of the
current. It was highly unlikely that Urdaneta knew about the Kuroshio Current from Japanese records. 6

The route of the Manila Galleons which follows the direction of the main ocean currents of the
Pacific Ocean (From Levesque, HM)

Officially, Urdaneta and Salcedo were the first to make the first eastward voyage to New Spain.
However there was actually an earlier vessel from Legazpi’s flotilla that accomplished the feat. A
patache named San Lucas commanded by Alonso Arellano made it to New Spain two weeks after
Legazpi left New Spain. Arellano deserted from Legazpi’s flotilla and rode on a more central position on
the Kuroshio Current and arrived in Mexico. Arellano’s success was practically unknown because of the
treasonous nature of his voyage. Another reason was that Urdaneta’s trip was highly documented with
details while that of Arellano was full of vague information. 7 It was also suspected that Arellano
obtained his information from Urdaneta himself. 8

A patache (from Levesque, HM)

The route blazed by Urdaneta and Salcedo became the route of the Manila Galleons for the
next 250 years. It also became the regular passageway for all ships sailing west to east across the Pacific
north of the equator. Though the trip did not originate from Manila, the San Pedro was the first of the

5
Hideo Kwai, “The History of Encounters with the Kuroshio by the Japanese,” Journal of
Oceanography: 1995, No. 4, p. 340-342.
6
Ibid.
7
Ibid.
8
Schurz, William Lytle, The Manila Galleon. (New York: E. P. Dutton & Co., Inc., 1939), pp. 180-181.
 6

Manila galleons. One of the trade goods carried by the San Pedro was its cargo of cinnamon which
originated from Mindanao

The Navigation Practice of the Galleons

for the Next 250 years

Adherence to the route discovered by Urdaneta and Salcedo was necessary in order to avoid
failure in the sea voyages and the loss of the ships. Some mariners attempted to reach New Spain by
trying to sail to the Ladrones Islands (now the Mariana Islands). These voyages achieved disastrous
results as the ships encountered faced contrary winds and currents. 9

Observation about climatic and weather conditions later assured of the safe voyages of the
galleons. It was observed that the best time to sail from Acapulco to Manila was during the winter
season in the northern hemisphere. The voyage was to be “slow but easy navigation.” In order to
ensure the safety of the trip, the King ordered that the last day for galleons leaving Acapulco should be
on the 25th of March. Because it would be very important them to arrive in Manila before July when
typhoons would start hampering access to the Philippines. 10 On the other hand ships leaving Manila
were advised to leave before the end of June to avoid the period of baguios. This arrangement would be
difficult, because when the galleon that had just arrived repaired, revprovisioned and loaded to avoid
the typhoon season. 11

A European galleon in the 16th century (from Levesque, HM)

As for the eastward route, it was observed that galleons sailing on the western coast of Luzon
until reaching Cape Bojeador and Cape Engaño in northern Luzon towards 20 degrees North parallel
would only take three days compared to nearly two months if the galleon left via the Embocadero (San
Bernardino Strait) and along the eastern coast of Luzon. The eastward route can be divided into three
stages: the first stage from the Philippines to 40 degrees north latitude. This part of the voyage is the
most difficult as the ship will be buffeted by rough seas and storms. The second part is after 40 degrees
north latitude was more comfortable because of the absence of typhoons. The ships have to stay away
from Japan for political reasons because of hostility of the authorities towards westerners. The
eastward trip can take up to six months such as in the case of the San Martin in 1598 but the San
Geronimo took only four months or 132 days. The westward trip on the other hand was more pleasant
and it took only around three months. 12

For the next 250 years the galleons were the lifeblood of the Philippines. It brought the yearly
real situado from Mexico which is not the subsidy from the government of New Spain but was in reality

9
Ibid.
10
Ibid., p. 204.
11
Ibid.
12
Ibid.
 7

the proceeds of the sales tax from the goods brought by the galleons. The galleon trade introduced new
plants such as the potato, the achuete, tobacco, corn, avocado, papaya, cacao, tapioca and a host of
plants of American as well as European origin which are now agricultural products of the Philippines. It
brought animals such as the cow, the sheep and turkey which became farm animals of the Philippines.
Most of all the galleons were a bridge for people. Spaniards, creoles and natives from other Spanish
colonies came here through the galleons and changed the country’s demographic mixture.

At the dawn of the 19 th century the galleon trade was losing its relevance as the only lifeblood of
the islands as Philippine merchants clamored for its abolition and replacement by a freer economic
environment. As a government monopoly it was suffering from its own inefficiency as foreign
merchants especially the British, Americans, Armenians and other nationalities have been going around
the government regulations.

The End of the Galleon Trade

The end of the galleon trade came when a royal order was issued by the Spanish Cortes
abolishing the Acapulco trade on September 14, 1813. 13 The Cortes, acting in the name of King
Ferdinand ordered the authorities in Mexico to comply with this directive. The King at the time was
stripped of his absolute powers and was forced to share power with the Cortes. The Cortes issued
additional orders on September 25, 1813 and on July 31, 1814. At that time Spain was under the Cortes
based in Cadiz. Through these orders the galleon trade was suppressed and the traders of the
Philippines were given permission to the traders of the Philippines to continue the Manila-Mexico trade
through the ports of Acapulco and San Blas in private ships. The ships were permitted to import goods
worth 500,000 pesos and sell goods worth a million pesos. Should Acapulco and San Blas be closed to
vessels from the Philippines they may go to the port of Sonsonate. In order to encourage the round trip
to the Philippines the regency granted to the Philippines the favor of extending for four years the
decrees of customs duties that have been granted by King Charles IV in his royal decree of October 4,
1806. It allowed the use of 500,000 pesos in bullion and the return profit. 14

The order was not implemented as it was not published before it could be carried out. In 1814
King Ferdinand reassumed his powers as absolute monarch and abolished the Cortes on May 4, 1814.
He ordered all the deputies arrested and all their official acts were rendered null and void. The Mexican
authorities for their part suspended the execution of the royal order suppressing the galleon trade. On
September 14, 1814 however, the King himself reaffirmed the suspension of the galleon trade by the
disbanded Cortes.

In 1815, a rebel congress composed of Mexicans proclaimed a new constitution on May 4, 1815.
It too suspended the galleon trade. 15 On April 23, 1815 King Ferdinand renewed his decree suspending
the galleon trade.16 In that order the King sent a message to encourage trade in the Philippines and
allowed the inhabitants to trade freely with private ships. Copies of the order were published in Mexico
on September 27, 1813. Under the order Filipino traders can carry on their trade of goods from China
and from other Asian countries through the ports of Acapulco and San Blas however the authorities in
the Philippines were not aware of the order because it was received in Manila only in 1817. 17

Unaware of the order suppressing the galleon trade vessels from Manila continued to ply the
Manila-Acapulco trade.18 These included the brigantine Activo which arrived in Acapulco on March 21,
1814. The vessel was skippered by Commander Pedro de Toro. The Activo was a substitute vessel as
the original ship the galleon Magallanes was unavailable. Another galleon the Rey Fernando was also
unavailable and the schooner Felicidad took its place. Before sailing the Felicidad which was also known
as the Santa Potenciana, had to be outfitted and repaired quickly for its voyage across the Pacific. The
13
Archivo General de la Nacion (AGN) 426-20 and AGN Marina, fol. 213-214, Royal Order Suppressing the
Acapulco Galleon, dated Cadiz, 14 September 1813 in Rodrigue Levesque, Ed. History of Micronesia, (HM) HM Vol.
18: pp. 97-100. This source shall hereinafter referred to as HM with volume number and page indicated.
14
Ibid.
15
Levesque, HM: 18: 100.
16
AGN Fil. 43, fol. 147-155, 302, King Renewed his Decree on 23 April 1815. in HM 18: 101
17
AGN Fil. 43, fol. 359-359v, Agent for the Manila Galleon was Advised only in 1817, in: HM 18: 103.
18
AGN FIL. 47/1. 62/2 cited in Document 1814D in HM 134-138.
 8

vessel had to be careened which caused a delay in its intended departure. When it arrived in Mexico
the Rey Fernando suffered much misery and death among its crew and passengers which forced her to
bypass San Blas and proceed directly to Acapulco. The delay of the arrival of the Rey Fernando
paralyzed the two-way trade.

In the meantime civil unrest was on the rise in Mexico as the Mexicans began to clamor for
independence from Spain. The situation began to deteriorate because of the emergence of bandits who
posed a threat to the unloading of galleons and the mule trains that carried goods from Mexico City to
Veracruz on the Gulf of Mexico. Eventually the ships did not anymore unload at San Blas but only in
Acapulco which has a road linking it directly to the capital. Another consequence of the suspension of
the galleon trade and the Mexican war for independence was the stoppage of the flow of Mexican funds
to the Philippines. This left the colony impoverished as the payment of the real situado or the sales tax
paid for the goods was stopped. The tax money used to be collected by the Mexican authorities and
was used to pay for the salaries of government officials and employees and the operation of the colonial
government in Manila.

The last Manila galleon was the Magallanes which left Manila on August 12, 1815. It was
commanded by Lieutenant Manuel Solis and its master was Jose Casal. It carried 3,070 half loads of
Asian goods including cloth from Coromandel. The goods carried by the vessel was worth 556,636
pesos, five reales and six grains. Upon arriving in Mexico it was supposed to unload at San Blas but this
did not take place. The unloading took place instead in Acapulco. From Acapulco the cargo was moved
to Guadalajara on orders of Viceroy Juan Ruiz Apodaca. Fairs to sell the goods from the Magallanes
were permitted by the authorities in Tepic and Guadalajara.

After it was unloaded the Magallanes was provisioned and made ready to leave for Manila.
However it lingered in the port of Acapulco and it was not allowed to sail. Also it was not allowed
accept cargo as Viceroy Apodaca was now enforcing the royal ban on the Manila galleons. 19

An appeal was made to allow the Magallanes to sail to the Philippines to avoid pirates from
Buenos Aires. On November 30, 1816, permission was finally granted to allow the galleon to leave for
Manila at the end of January 1817. It sailed from Acapulco to San Blas where it picked up the proceeds
of its cargo from the last voyage from Manila. It arrived in Manila three months after.

Since the Magallanes was not allowed to carry any commercial cargo and it was described in
nautical terms as “in ballast”- the word for “empty.” Nothing more was heard about the Magallanes
after 1818 when it was depicted as a “derelict Spanish galleon” in Marryat’s Borneo which was
published in 1848.20

The Magallanes described as a derelict Spanish galleon. Image found in

Borneo by Marryat, published in 1848. (Levesque, HM)

19
Levesque, op. cit., 18: 184.
20
Ibid,. p. 190.
 9

Following the abolition of the trade private individuals began to fill the void left by the galleons.
These included government officials who began to engage in the transpacific trade. In 1816 while the
Magallanes was still at port in Acapulco, Don Felix Ruiz, the Lieutenant Colonel of the militia in Manila
began to take over the role of the Manila Galleons. Don Felix was the owner of the merchant frigate
Victoria which left Manila for Acapulco that year. This happened even as the Mexicans were now
struggling for their independence from Spain. One interesting aspect was its manifest which reported a
value of 695,599 pesos, six reales and four grains which was definitely in excess of what was previously
authorized in the galleons. The Manila-bound voyage in 1816 carried a cargo worth 1,299,332 pesos,
two reales and nine grains.21

Conclusion

The birth of the Manila galleon trade coincided with the actual colonization of the Philippines in
1565 when Spain formally claimed the Philippines. The event hinged on the viability of the Philippines
as hub of trade between Asia especially China and the Moluccas with its valuable products. King Philip
based his decision to colonize the Philippines on solid economic and scientific grounds. The Philippines
with its proximity to the two places and to an extent, India and the rest of Asia, establishing a trading
hub in the archipelago like Manila would make the city the hub of Asian trade. On the scientific aspect,
King Philip relied on the scientific observations of people like Andres de Urdaneta. Relying on
experience as well as scientific inferences King Philip was confident that a return route from the
Western Pacific was possible and viable. He was proven right when Fr. Urdaneta charted the first
official tornaviaje or return voyage from the Western Pacific. The vessel used by Urdaneta and Salcedo
was the first Manila Galleon which was actually Cebu galleon after having originated from Cebu rather
than Manila.

For the next 250 years after 1565 dozens of galleons crossed the Pacific exchanging trade goods,
products, people and ideas. The galleon contributed to the rise of Manila a major trading port. The
Manila Galleon changed the course of history not just in the Philippines but the world as well. It
hastened the decline of the Silk Route whose western terminus was dominated by the Ottoman
Muslims- Spain’s enemies. The rise of Manila as a trading center eclipsed earlier trading cities such as
Goa and Malacca. The exchange of goods and money across Asia, the Americas and Europe made Spain
the world’s dominant power for the next 300 years even with Spain’s decline. The silver mines and
trade originating from Peru made the metal the preferred medium not just in Spain but in China and the
rest of the world. The Mexican silver peso became the preferred money of trade. It was even more
valuable than the US dollar when the United States was established.

Spanish trade influenced the American dollar which originally began the Spanish American peso
eventually became the US dollar. It is believed that the dollar sign, the S – symbolized Spain while the
two vertical bars represented the Pillars of Hercules. 22

For the Philippines the galleon trade influenced the country’s economy, culture and religion. It
created however an imbalanced development as more people were drawn to Manila and its environs
because of easy income. The main beneficiaries were mostly the Spaniards and its benefits hardly
filtered to the ordinary native.

21
AGN Fil. 62, fol. 544-546, The Victoria Departed Acapulco on 27 November 1816, in HM 18: 200-203.
22
Popular Science (February 1930). "Origin of Dollar Sign is Traced to Mexico". Popular Science: 59.
ISSN 0161-7370. (Referenced April 21, 2016)
 10

Spanish silver coin. Commonly called pieces of eight

Spanish silver coin showing the two Pillars of Hercules

As the trade gave prospects of wealth businessmen clamored for greater access to international
trade. Eventually the galleon trade became an inefficient government monopoly. International trade
could be better managed by private businessmen. This explains why Spanish Cortes upon petition from
private businessmen decided to suppress the galleon trade in 1813. When he reassumed absolute royal
power in 1814 King Ferdinand VII did not try to protect the government monopoly by affirming the order
by the Cortes suppressing the galleon trade. .

Like any commercial activity the galleon trade was susceptible to political intervention.
Government control by limiting trade was overturned by private businessmen who demanded access to
the transpacific trade to maximize profits. They found ways to go around the system which included
having the galleons carry goods in excess of the authorized value or just not officially declaring the cargo
in the official manifest. Eventually private ships carrying goods from Asia rivaled those of the galleons.
These activities which were illegal as it constituted smuggling was a way for private businessmen of
telling the government to give them access to free trade. Eventually the government-controlled
monopoly which was the galleon trade gave way to the businessmen-smugglers who were actually
advocates of free trade and laissez faire economics.

The end of the galleon trade was the end of an era for the Philippines. When it ended the
Philippines was freed from the umbilical cord to Mexico as the Mexicans waged their war for
independence from Spain. The end of the galleon trade and the loss of Mexico following its
independence after a long struggle forced authorities of the Philippines to find new sources of revenue.
This condition led eventually to opening of the Philippines to world trade in 1834. The opening of the
ports of the Philippines to global trade led to the birth of a middle class from whose ranks would come
individuals who would clamor for reforms from Spain.

When Mexico gained its independence, the Philippines was now ruled directly from Spain. The
loss of Mexico spelled a new era of hardship for the Philippines as the flow of the real situado and other
funds from the Americas was stopped. The authorities in the Philippines would now have to find new
sources of revenue for the colonial government to sustain itself. With the loss of Mexico and Spain
ruling the Philippines directly natives of the Philippines would feel a special connection to the mother
country especially when representation of the islands in the Cortes was momentarily restored in 1820.
When Spain denied representation Filipino reformists in the late 19 th century clamored for the
restoration of the representation of the Philippines.
 11

Despite its demise more than two centuries ago vestiges of the galleon trade are still present.
The maritime route blazed by Fr. Urdaneta is still very much relevant. Ships even those are powered by
steam, fuel oil or even nuclear power still follow by the currents of the oceans. Economically it will save
the owners of the vessels money by riding the Kuroshio and other oceanic currents instead of going
against them. Even with modern vessels to ignore the winds and currents will still result in disasters just
like the galleons Santa Margarita in 1601 and the Concepcion in 1638.

As for trading practices, economic patterns such as demands for certain goods dictated
consumer preferences. Today Moluccan spices, Chinese porcelain and tea are not just the ones crossing
the Pacific but other goods such as electronics, garments and other products as long as these products
are needed by the consumers. Merchants found ways to enliven commerce and in the process earn
more wealth. Today money is largely not carried on ships like the galleons but it is transmitted
electronically through wire transfers which can move large amounts of funds in seconds when it took
years centuries ago.

Finally through the documents cited in this paper there is a need to revise history. The galleon
trade in the Philippines did not really end in 1815. Officially it was ordered suppressed in 1813.
Philippine history books indicated that it ended in 1815 when the last Manila galleon the Magallanes
sailed for Mexico. We must point out that this same galleon returned in 1817 with the proceeds of its
last cargo from Manila. The year 1817 not 1815 should be the reckoning date for the end of the galleon
trade. Between those years private traders started to fill up the vacuum left by the galleons and began
the era of free trade and laissez faire economics.