CHAPTER XXXIII

COMMERCIAL POSSIBILITIES OF THE PHILIPPINES

If the commercial possibilities of any region are to be attractive to

Europeans or Americans, it must have a just and stable government;

a reasonably healthful climate; fairly good means of communication

and transportation; forest, agricultural, mineral or other wealth,

and labour with which to develop it. Proximity to main lines of travel

and to markets is also an important consideration.

The present [178] government of the Philippines is highly effective

and the state of public order leaves little to be desired. Doubt has

been expressed as to the stability of the existing régime, but it is

at the very least safe to assume that the United States will never

withdraw from the islands without leaving behind a government which

will assure to the residents of the archipelago, foreign and native,

personal safety, just treatment and security of property rights.

Health conditions are now excellent, and the death rate among whites

at Manila is lower than that in many European and American cities. If

one will only vary the monotony of the continuous warmth by making

an occasional trip to Baguio, and take reasonable precautions as to

food, drink and exercise, there is no reason why one should not die

of old age.

Means of communication by land are now fairly good and steadily

improving. The seas are well lighted and the main lines of sea travel

have been carefully surveyed.

The islands have many beautiful harbors and, as we have seen, at

Manila, Cebú and Iloílo extensive harbour improvements have already

been made. There are no special difficulties attendant upon the

loading or unloading of ships anywhere in the archipelago. The rapid

extension of highways, and the construction of additional railways,

are facilitating and cheapening land transportation.

The natural resources of the country are unquestionably vast. I

have already devoted a chapter to the discussion of the forests and

their wealth.

As to the mineral resources, while we have much still to learn we

already know that there are excellent lignite, some coking coal

and extensive deposits of high-grade iron ore and of copper. One

flourishing gold mine is now giving handsome returns, and several

others seem to lack only the capital needed to develop them on a

considerable scale in order to make them pay; dredges are operating

for gold with great success in the vicinity of Paracale in eastern

Luzón, and there are other gold placer fields in the islands which

are worthy of careful investigation. The prospect of obtaining in

quantity a high-grade petroleum with paraffine base rich in low-boiling

constituents is very good.

Difficulties in the way of the development of the mining industry are

to be found in the disturbances of geological formations which are

inevitably met with in volcanic countries, in the dense tropical

vegetation which in many regions covers everything and renders

prospecting difficult, and in the unevenness of the rainfall which

in some parts of the archipelago results in severe floods at one

season and in the lack of sufficient water to furnish hydraulic power

at another. But we are at least free from the troubles incident to

freezing cold, and in my opinion a prosperous mining industry will

ultimately be built up in the Philippines.

Agriculture has always been, and will doubtless long continue to be,

the main source of wealth. In the lowlands may be found conditions of

soil and climate favourable to the growing of all important tropical

products. Owing to the position of the islands with reference to the

northeast and southwest monsoons, practically any desired conditions

as regard humidity and the distribution of rainfall can be found. There

are regions which have strongly marked wet and dry seasons, and regions

in which the rainfall is quite uniformly distributed throughout the

year. In some provinces the heaviest rains come in January, while

in others they come in July or August. The Philippine Weather Bureau

has gathered an immense amount of very valuable rainfall statistics

and is constantly adding to its present store of knowledge. Father

José Algué, its distinguished director, can always be depended upon

to furnish any obtainable information.

But this is not all. We are not confined to tropical products. In the

highlands of Luzón and of Mindanao practically all the vegetables and

many of the grains and fruits of the temperate zone may be produced.

When well fed, properly directed and paid a reasonable wage, the

Filipino makes a good field labourer. Much of his so-called laziness

is unquestionably due to malnutrition. A diet made up largely of rice,

especially if that rice be polished, does not develop a maximum of

physical energy.

When threshing machines were first introduced it was impossible to get

Filipinos to handle the straw. The work was too strenuous for them. We

soon discovered that by picking fairly strong men, and feeding them

plenty of meat, we could make them able and willing to do it.

Some extraordinary misstatements have been made as to Manila's

position with reference to main lines of travel and to markets. In

this connection Blount says that it is an out-of-the-way place so

far as regards the main travelled routes across the Pacific, [179]

and adds that shippers would not take to unloading cargo there before

finally discharging it on the mainland of Asia.

With singular inconsistency he also says that Manila could never

succeed Hongkong as the gateway to Asia. [180]

One might almost believe him ignorant of the fact that Hongkong is an

island, separated from the continent of Asia, and that the very thing

which he says would not happen at Manila, to wit the "unloading by

way of rehearsal, before finally discharging on the mainland of Asia,"

is the thing which has made Hongkong harbour one of the busiest ports

in the world.

Manila has numerous very definite advantages over Hongkong. Health

conditions are vastly better, and there is far less danger that

crews of vessels will become infected. Ocean going steamers come

alongside piers and unload directly into great sheds which protect

goods during storms. The pier sheds have direct connection with the

electric railway system of the city, so that freight can be quickly

and cheaply transported under cover. The Manila breakwater affords

excellent protection during typhoons, whereas Hongkong harbour is

periodically swept by storms which cause great damage to shipping

and very serious loss of life.

Hongkong is a free port, but the construction of bonded warehouses

at Manila for the reception of goods intended for reshipment would

largely make up for the fact that Manila is a port of entry.

The reply to the claim that Manila is far from markets and established

lines of travel is simple. Look at the map and compare it with

Hongkong!

Let us now consider more in detail the resources of the Philippines.

The first thing that impresses one who studies their agriculture

is the extremely primitive state of development to which it has

attained. Rice is the bread of the people and is produced in

large quantities, but as a rule land is prepared for planting it

by ploughing with what is little better than a crooked stick, which

may or may not have an iron point, and by subsequent puddling with a

muck rake, both instruments being drawn by carabaos. As the ground

cannot be worked in this fashion until the rains come on, and the

young plants should be set in the ground very shortly thereafter,

the period during which the soil can be prepared is brief, and the

amount brought under cultivation is correspondingly small. Rice is

usually planted in seed beds and transplanted by hand, the object of

this procedure being to give it a start over the weeds which would

otherwise swamp it. It is a common thing to see a crowd of men,

women and children setting it to the music of a small string band,

with which they keep time. Organizations which have the reputation

of maintaining a rapid rhythm are quite in demand because of the

increased amount of rice set! Ordinarily, in the lowlands at least,

comparatively little attention is paid to subsequent weeding, and

when harvest time comes the crop is usually gathered by cutting off

the heads one at a time. Threshing is frequently performed in the

open air on a floor made of clay and carabao dung. Often the grain is

trodden out under the feet of the owners themselves; sometimes it is

stripped off by drawing the heads between the teeth of an instrument

somewhat resembling an inverted iron rake; again it is beaten off

against stones; a more advanced method is to drive horses, carabaos

or cattle over the straw until the grain has been loosened from the

straw. The palay [181] is usually winnowed in the wind, although crude

fanning mills are sometimes employed for this purpose. The threshing

takes much time, and while it is in progress great loss results from

the depredations of rats and wild hogs, from unseasonable rain-storms,

and from the carrying off of the grain by the threshers. A large part

of the palay employed for local domestic use is husked by pounding it

in wooden mortars and winnowed by tossing it in flat baskets. As a

result of such methods the Philippines, which ought to export rice,

are compelled to import it, the figures for the last 15 years being

as follows:--

Rice Imports

Fiscal Tons Value

Years (Metric)

1899 58,389 $1,939,122

1900 109,911 3,113,423

1901 178,232 5,490,958

1902 216,403 6,578,481

1903 307,191 10,061,323

1904 329,825 11,548,814

1905 255,502 7,456,738

1906 138,052 4,375,500

1907 112,749 3,662,493

1908 162,174 5,861,256

1909 137,678 4,250,223

1910 184,620 5,321,962

1911 203,083 6,560,630

1912 260,250 10,569,949

1913 179,205 7,940,857

American influence has already made itself strongly felt on the

rice industry and small steel ploughs, of suitable size to be drawn

by single animals, are coming into very general use. A steadily

increasing amount of rice is harvested with sickles instead of with

small bladed knives. Modern threshing machines are rapidly discouraging

the employment of the threshing methods of biblical days, and their

operation in the large rice producing regions is a good business

for persons with limited capital, as the returns are immediate and

the investment is small. The customary toll taken for threshing is

one-eighth of the output.

While under my direction, the Bureau of Agriculture began the

introduction of modern threshing machines. The amount of grain obtained

from a stack of given size when thoroughly machine-threshed before

there had been time for waste was so much greater than that to which

the Filipinos had been accustomed that they thought that there must

be a deposito of grain hidden away somewhere within the machine, and

insisted on sticking their heads into it in search of this supposed

source of supply!

Many small, mechanically driven hulling machines are now in use

and the number of regular rice mills, with up-to-date machinery for

hulling and polishing, steadily and quite rapidly increases.

The rice industry has at present two great needs: the first is

irrigation, the second, careful seed selection. The average Filipino

depends directly on rainfall for irrigation water, and although there

may be a stream close at hand, he does not trouble to turn it on to

his land unless conditions happen to be exceptionally favourable. The

result is that dry years cause a very heavy, and largely avoidable,

loss to the islands. A dependable supply of irrigation water would make

two crops a certainty where one is now more or less of a gamble. The

insular government is spending considerable sums on irrigation work,

and in my opinion it offers a wide field for profitable private

investment.

There are in the Philippines many different varieties of rice,

each with its peculiar advantages and disadvantages. There is no

possible doubt as to the opportunity which lies before the skilled

plant breeder to increase the crop, and shorten the time required

for its production, by the methods which have been so successfully

applied to wheat and other grains.

Finally, in the highlands of Bukidnon, in Mindanao, there are

immense areas which can be cultivated and planted with motor-drawn

machinery. After taking off the first crop it would be readily possible

to plough, harrow and seed in one operation, and here, if anywhere,

modern harvesters and threshers can be employed to good advantage. In

short, rice can be grown in Bukidnon as wheat is grown in the United

States, and the company which goes into this business on a large

scale should make money.

Abacá, commonly called Manila hemp, was for many years the most

important Philippine export. The plants from which it is produced

resemble bananas so closely that the uninitiated cannot distinguish

them. They furnish the longest and strongest cordage fibre in

the world. The Philippines have practically a monopoly on its

production. Abacá culture is carried on in a very primitive way. The

plants require well-drained soil and for this reason the Filipino

often puts them out on steep mountain sides. The forest is felled,

the timber is burned on the ground and the young plants are set

before weeds have time to encroach. The bolo is usually employed for

subsequent "cultivation," which consists in the occasional chopping

down of weeds. Fortunately the shade in an abacá plantation is so deep

that it materially impedes the growth of other plants. The fibre is

obtained from the leaf petioles which make up the stem. At the present

time practically all of it is stripped by hand. This is a slow and

tedious process, involving very severe physical exertion to which the

average Filipino is disinclined, and serious losses often result from

inability to get the crop seasonably stripped. Stripping is greatly

facilitated if the knife under which the fibre bands are drawn has a

serrated edge, but in that case the fibre is not thoroughly cleaned,

soon loses its original beautiful white colour, and diminishes in

strength owing to decay of the cellular matter left attached to it.

The production of high-grade fibre or of comparatively worthless

stuff is chiefly a matter of good or bad stripping.

Abacá requires evenly distributed rainfall and constant high humidity

for its best development, and should not be planted in regions

subject to severe drought, which greatly reduces the crop and may

kill the plants outright. Experience has shown that it richly repays

real cultivation.

The trunks are heavy, and water makes up a large part of their weight,

but they are full of air chambers, float readily and could be rafted or

sluiced to a central cleaning plant wherever conditions are favourable

for so transporting them. The one great desideratum of the industry is

a really good mechanical stripper which will turn out clean, high-grade

fibre in large quantity at small cost. At least one machine has been

brought reasonably near perfection. In my opinion all that is now

necessary is to put a skilled mechanic into the field with it under

service conditions, and keep him there until such minor difficulties

as remain have been successfully overcome. Stripping mills could

readily be established in regions like that along the lower Agusan

River, where climate and soil are ideal and water transportation is

always available. A reasonable number of such plants in successful

operation would go far toward revolutionizing the hemp industry,

the development of which is at present greatly handicapped by the

production of enormous quantities of badly cleaned fibre, which does

not sell readily, whereas first-class abacá is without a rival and

always sells at a high price.

The table on the opposite page shows the value and amount of hemp

exports during a period of fifteen years.

Copra, or the dried meat of the coconut, has now become one of the

most important exports of the islands, which lead the world in its

production. The table on the opposite page shows the rapid increase

in copra exports.

Hemp Exports

------------------------------++----------------------------------

|| To United States, including

To All Countries || Hawaii and Porto Rico

-------+---------+------------++------------+--------+------------

| | Value || Percentage | | Value

Fiscal | Tons | in U. S. || of Total | Tons | in U. S.

Years | | Currency || Exports | | Currency

-------+---------+------------++------------+--------+------------

1899 | 59,840 | $6,185,293 || 45.1 | 23,066 | $2,436,169

1900 | 76,709 | 11,393,883 || 52.6 | 25,764 | 3,446,141

1901 | 112,215 | 14,453,110 || 34.6 | 18,158 | 2,402,867

1902 | 109,969 | 15,841,316 || 58.3 | 45,527 | 7,261,459

1903 | 132,242 | 21,701,575 || 54.7 | 71,654 | 12,314,312

1904 | 131,818 | 21,749,960 || 58.8 | 61,887 | 10,631,591

1905 | 116,733 | 22,146,241 || 59.6 | 73,351 | 12,954,515

1906 | 112,165 | 19,446,769 || 59.5 | 62,045 | 11,168,226

1907 | 114,701 | 21,085,081 || 61.7 | 58,389 | 11,326,864

1908 | 115,829 | 17,311,808 || 52.7 | 48,814 | 7,684,000

1909 | 149,992 | 15,833,577 || 51.0 | 79,210 | 8,534,288

1910 | 170,789 | 17,404,922 || 43.6 | 99,305 | 10,399,397

1911 | 165,650 | 16,141,340 || 40.5 | 66,545 | 7,410,373

1912 | 154,047 | 16,283,510 || 32.3 | 69,574 | 7,751,489

1913 | 144,576 | 23,044,744 || 43.3 | 63,715 | 11,613,943

-------+---------+------------++------------+--------+------------

Copra Exports

------------------------------++----------------------------------

|| To United States, including

To All Countries || Hawaii and Porto Rico

-------+---------+------------++------------+--------+------------

| | Value || Percentage | | Value

Fiscal | Tons | in U. S. || of Total | Tons | in U. S.

Years | | Currency || Exports | | Currency

-------+---------+------------++------------+--------+------------

1899 | 14,047 | $656,870 || 4.7 | ---- | ----

1900 | 37,081 | 1,690,897 || 7.8 | ---- | ----

1901 | 52,530 | 2,648,305 || 10.0 | 103 | 4,450

1902 | 19,687 | 1,001,656 || 3.6 | ---- | ----

1903 | 97,630 | 4,472,679 || 11.2 | 61 | 9,173

1904 | 54,133 | 2,527,019 || 7.0 | 174 | 9,231

1905 | 37,557 | 2,095,352 || 5.6 | 205 | 14,425

1906 | 66,158 | 4,043,115 || 12.3 | ---- | ----

1907 | 49,082 | 4,053,193 || 11.8 | 1,110 | 108,086

1908 | 76,420 | 5,461,680 || 16.6 | 2,968 | 228,565

1909 | 105,565 | 6,657,740 || 21.1 | 4,714 | 287,484

1910 | 115,285 | 9,153,951 || 22.9 | 5,538 | 447,145

1911 | 115,602 | 9,899,457 || 24.9 | 12,241 | 1,030,481

1912 | 169,342 | 16,514,749 || 32.8 | 24,160 | 2,339,144

1913 | 113,055 | 11,647,898 || 21.9 | 7,460 | 720,245

-------+---------+------------++------------+--------+-----------

An extraordinary drought, which seems to have extended throughout the

Far East, is largely responsible for the decrease in exports during the

last fiscal year, its effect having been felt long after it had passed.

Coconut oil is very extensively used in making high-grade soaps,

and is now also employed in the manufacture of butter and lard

substitutes. Their quality is excellent, they keep well in the

tropics, and being non-animal in their nature are not open to the

æsthetic or religious objections which some people entertain toward

oleomargarine and true lard. Lard made from coconut oil is of course

especially appreciated in Mohammedan countries. There is a steady

demand for the shredded coconut used by confectioners. The press-cake

which remains after the oil has been extracted is a valuable food for

fattening animals. A rich, palatable and nutritious "milk," on which

"cream" rises in a most appetizing manner, is made by wringing out

fresh shredded coconut in water. Whether or not it can be preserved

and utilized as a commercial product remains to be seen, but the

experiment would be worth trying.

Thus far coconut cultivation has been conducted in a very haphazard

way. In fact, the existing groves are hardly cultivated at all. Nuts

or young trees are put into the ground in whatever fashion seems good

to the individual planter, and are invariably set too closely. There

may be a little initial cultivation, but usually nothing is done

except to cut down weeds and brush with a bolo, and often even this

is neglected. The trees, once established, are left to shift for

themselves, and are soon contending with each other for root space

and air. The owner cuts notches in their bark in order to facilitate

climbing. Water gathers in them and starts decay.

If under such circumstances coconut growing is so profitable that

to-day plantations can hardly be bought at any price, what will happen

when carefully selected seed nuts are put out at proper intervals and

growing trees are given high cultivation? In considering the profits

resulting from coconut culture, estimates are sometimes based on

twenty nuts to the tree per year, while forty are considered a very

liberal allowance. This number is even now largely exceeded throughout

extensive areas in the Philippines under the unfavourable conditions

above described. The effect of good cultivation can be determined,

in a measure, by the condition of trees which chance to be so situated

that the ground near them is kept clean. The results of fertilization

can be estimated by observing the condition of trees standing near

native houses. I recently endeavoured to have the nuts on a series

of such trees counted from the ground. This proved impossible. In

fact, it was necessary to cut out a bunch of nuts in order to make

it possible for a climber to scramble over the great masses of fruit,

and get among the leaves. I therefore bought the nuts on several trees

and had them thrown down. The trees were in a little Manobo village,

and the ground around them was cultivated. The two which seemed to be

bearing most heavily could not be climbed, as bees had taken possession

of them. The third best tree had three hundred ninety-seven nuts on it;

the fourth only three hundred twenty-three, but its output had been

reduced by tapping a number of its blossom stalks for tuba. All the

nuts were very large. The meat from an average specimen was carefully

dried and we found that one hundred fifty-six such nuts would make

a picul of copra. A common estimate of the average number of nuts

required for a picul is three hundred.

Of the whole number of nuts on these trees a few would have failed

to develop, owing to lack of room, but it is fair to suppose that

the first would have ripened three hundred fifty nuts and the second

two hundred seventy-five. Actual observation has shown that it takes

nuts two hundred thirty-eight to two hundred fifty-nine days to mature

in Mindanao.

Coconut trees attain a great age, and a producing plantation in the

Agusan valley would be a mine of wealth.

The time required for the trees to come into bearing varies from

five to seven years with differing conditions of soil and climate,

and with the altitude above sea-level. I have seen individual trees

heavily loaded with nuts at four and a half years. The owner of a

coconut plantation must wait for his returns, or grow something else

meanwhile. Quick growing catch crops may at first be raised between

the rows if soil conditions are favourable, but it must be remembered

that coconut trees thrive on soil so sandy that it will produce little

else of value. They require abundant water and plantations should be

well open to the breeze. Such conditions are frequently found along

the seashore, which doubtless explains the belief so common among

natives throughout the tropics that the coconut will not grow where

it cannot "hear" or "see" the sea. The trees do equally well on open

inland plains.

They have few enemies or diseases in the Philippines, the bud rot which

has caused such destruction in other countries being almost unknown

there. They resist wind storms admirably, and even typhoons seldom

uproot them, but violent gales injure the leaves and blow down the

fruits, thus temporarily checking production. While coconut growing

is profitable on suitable soil throughout the islands, it can be

carried on most safely to the south of the typhoon belt.

At present practically all Philippine copra is either sun-dried or

smoked. The latter process hardens the outer layer of the meat before

it is thoroughly dried within, and also causes the deposit of more or

less creosote. The resulting product moulds and decays readily, and

has given Philippine copra an evil name, but this will not seriously

interfere with the sale of a good article from the islands, as its

quality will be readily determinable.

Until within a very short time the crudest and most antiquated hand

machinery has been used in the local manufacture of coconut oil. Soon

after the American occupation a modern oil mill was established at

Manila. It prospered until it burned, which it rather promptly did

for the reason that it was constructed of Oregon pine, which speedily

became soaked with coconut oil, and was ready to flash into flame at

the touch of a lighted match or of a cigarette butt.

A new mill of iron, steel and reënforced concrete has now been

erected. It is equipped with the latest machinery and labour-saving

devices, and is reported to be operating on a wide margin of profit.

The market for coconut oil seems to grow more rapidly than the

supply increases. There is abundant room for more oil mills in the

Philippines, especially as the machinery used in extracting coconut

oil is equally well suited to the milling of castor beans, peanuts

and sesamum, all of which can be produced in any desired quantity.

Modern drying apparatus is just beginning to be imported for copra

making.

Sugar and tobacco are the remaining principal agriculture

products. Both can be very advantageously grown. All that has been said

relative to primitive methods in rice, hemp and coconut production can

be repeated with emphasis in discussing sugar culture. The machinery

and methods employed might almost be called antediluvian, and it is a

wonder that sugar could ever have been produced at a profit under such

conditions as have prevailed. Deep ploughing was unknown. There was

not an irrigated field of cane in the islands. The most modern of the

estates was equipped with a three-roll mill, and with some vacuum pans

which the owner did not know how to use. The soil was never fertilized,

and no sugar grower dreamed of employing a chemist. Forty to sixty

per cent of the sugar in the cane was thrown out in the bagasse,

and that extracted was full of dirt and promptly began to deliquesce.

Philippine sugar could never have competed successfully in the world's

market under such conditions.

Fortunately one modern central has already been established, and

several others are in process of construction. Up-to-date mills could

well afford to grind cane for Filipinos, giving them outright as much

sugar as they had previously been able to extract from it and making

a very handsome profit out of the balance. But as yet most Filipinos

have not learned the benefit of coöperation, and are too suspicious

to contract their crops of cane to a mill. It follows that mill

owners must control, in one way or another, land enough to produce

cane sufficient to keep their mills in profitable operation. As we

have seen advantage has been taken of this fact by unscrupulous sugar

men in the United States who have secured legislation limiting the

amount of land which corporations authorized to engage in agriculture

may own, with the deliberate intention of thus crippling the sugar

industry in the Philippine Islands. It is iniquitous so to handicap

an important industry in a colonial dependency, and this legislation

should be stricken from the statute books.

Fortunately there is no law limiting the right of individuals to

contract their crops, nor is it apparent that such a law could be

enacted. Furthermore, there is no law limiting the amount of land which

an individual may hold, nor is it likely that any will be passed. It

would therefore seem that while vicious legislation may interfere

with the rapid development of the sugar industry in the Philippines,

it cannot destroy it.

The table on the opposite page shows the amount and value of sugar

exports for the past fifteen years.

It is said that the tobacco which now produces the famous Sumatra

wrapper originally came from the Philippines, which now have to

import it. This condition of things is mainly due to lack of system

and care in tobacco growing. Seed selection is almost unknown; worms

are not picked; fertilization is not practiced; the system under which

each labourer settles on the land, plants as much or as little as he

pleases, and manages his crop in his own way, is in vogue, and it is

an eloquent testimonial to the merits of soil and climate that the

tobacco so grown is good for anything.

Sugar

------------------------------++-----------------------------------

|| To United States, including

To All Countries || Hawaii and Porto Rico

-------+---------+------------++------------+---------+------------

| | Value || Percentage | | Value

Fiscal | Tons | in U. S. || of Total | Tons | in U. S.

Years | | Currency || Exports | | Currency

-------+---------+------------++------------+---------+------------

1899 | 57,447 | $2,333,851 || 15.9 | 2,340 | $143,500

1900 | 78,306 | 3,000,501 || 12.3 | 143 | 21,000

1901 | 56,582 | 2,293,058 || 8.6 | 2,153 | 93,472

1902 | 67,795 | 2,761,432 || 10.0 | 5,225 | 293,354

1903 | 111,647 | 3,955,828 || 9.9 | 34,433 | 1,335,826

1904 | 75,161 | 2,668,507 || 7.2 | 11,626 | 354,144

1905 | 113,640 | 4,977,026 || 13.4 | 57,859 | 2,618,487

1906 | 125,794 | 4,863,865 || 14.8 | 7,302 | 260,104

1907 | 120,289 | 3,934,460 || 11.5 | 6,610 | 234,074

1908 | 151,712 | 5,664,666 || 17.2 | 48,476 | 2,036,697

1909 | 112,380 | 4,373,338 || 14.0 | 21,285 | 881,218

1910 | 127,717 | 7,040,690 || 17.6 | 94,156 | 5,495,797

1911 | 149,376 | 8,014,360 || 20.1 | 128,926 | 7,144,755

1912 | 186,016 | 10,400,575 || 20.6 | 161,783 | 9,142,833

1913 | 212,540 | 9,491,540 || 17.8 | 83,951 | 3,989,665

-------+---------+------------++------------+---------+------------

The domestic consumption of tobacco is very large. Practically every

one smokes. Exportations are increasing. The tables on pages nine

hundred and nine hundred one will give an adequate conception of the

recent growth of the tobacco industry.

Bananas form an important part of the food of the people, yet there

is not such a thing as a real banana plantation in the islands. The

average Filipino has a few plants around his house, but with many of

them even this is too much trouble, and they prefer to buy the fruit

at a comparatively high price in the local markets. Good bananas sell

readily in Manila at half a dollar a bunch, and the best varieties

bring even a higher price. The latter may be bought at ten cents

a bunch in the Agusan River valley, where conditions are ideal for

their successful cultivation. I recently measured a series of trunks

there which ran from forty inches to four feet in circumference.

Table showing the Number of Cigars removed from Manufactories for

Domestic Consumption and for Export during the Past Eight Fiscal Years

--------------+--------------------------------------------+-------------

| Cigars Manufactured and |

Fiscal Year +----------------+-------------+-------------+

ended June 30 | Consumed in | Exported | Shipped to | Total

| the Philippine | to Foreign | United |

| Islands | Countries | States |

--------------+----------------+-------------+-------------+-------------

| Number | Number | Number | Number

1906 | 74,184,537 | 94,110,336 | 231,206 | 168,526,079

1907 | 79,476,459 | 117,684,485 | 82,175 | 197,243,119

1908 | 82,986,278 | 115,738,939 | 29,570 | 198,754,787

1909 | 86,800,520 | 116,981,434 | 867,947 | 204,649,901

1910 | 89,272,890 | 109,006,765 | 87,281,673 | 285,561,328

1911 | 96,115,525 | 104,604,170 | 27,531,596 | 228,251,291

1912 | 109,924,014 | 104,476,781 | 70,518,050 | 284,918,845

1913 | 96,193,811 | 106,563,541 | 102,894,077 | 305,651,429

--------------+----------------+-------------+-------------+-------------

Table showing the Number of Cigarettes removed from Manufactories for

Domestic Consumption and for Export during the Past Eight Fiscal Years

--------------------------+------------------------------+---------------

| Cigarettes Manufactured and |

+----------------+-------------+

Fiscal Year ended June 30 | Consumed in | Exported to | Total

| the Philippine | Foreign |

| Islands | Countries |

--------------------------+----------------+-------------+---------------

| Number | Number | Number

1906 | 3,509,038,750 | 21,062,844 | 3,530,101,594

1907 | 3,509,999,575 | 158,349,812 | 3,668,349,387

1908 | 3,774,303,310 | 72,387,396 | 3,846,690,706

1909 | 4,122,385,209 | 53,250,328 | 4,175,635,537

1910 | 4,138,647,668 | 34,859,581 | 4,173,507,249

1911 | 4,058,603,123 | 35,425,865 | 4,094,028,988

1912 | 4,369,153,048 | 35,776,760 | 4,404,929,808

1913 | 4,449,340,088 | 51,431,838 | 4,500,771,926

--------------------------+----------------+-------------+---------------

Table showing the Quantity of Smoking Tobacco Exported during Each

of the Past Five Fiscal Years

-------------------+-----------------------------------------------------

| Total Exports during the Fiscal Year

Country to +----------+----------+----------+----------+---------

which Exported | 1909 | 1910 | 1911 | 1912 | 1913

-------------------+----------+----------+----------+----------+---------

| Pounds | Pounds | Pounds | Pounds | Pounds

Canary Islands | 33,488 | 18,547 | 21,329 | 28,645 | 59,454

For consumption on | | | | |

high seas | 14,490 | 17,655 | 22,610 | 24,488 | 29,257

France | 4,740 | 6,182 | 11,334 | 3,091 | 11,433

China | 2,233 | 1,586 | 7,938 | 6,077 | 9,569

All others | 5,082 | 5,174 | 25,791 | 4,151 | 7,417

+----------+----------+----------+----------+---------

Total | 60,034 | 49,145 | 89,004 | 66,452 | 117,130

-------------------+----------+----------+----------+----------+---------

Table showing the Quantity of Leaf Tobacco Exported during the Calendar

Years 1909, 1910, 1911 and 1912

-------------------------+---------------------------------------------------

| Calendar Year

+------------+------------+------------+------------

| 1909 | 1910 | 1911 | 1912

-------------------------+------------+------------+------------+------------

| Pounds | Pounds | Pounds | Pounds

Exported in the leaf[182]| | | |

To the United States | 13,503 | 12,269 | 4,946 | 93,928

To other countries | 21,218,588 | 26,469,800 | 28,354,636 | 28,041,374

+------------+------------+------------+------------

Total | 21,232,079 | 26,482,069 | 28,359,582 | 28,136,302

-------------------------+------------+------------+------------+------------

Note.--All figures given above are for unstemmed leaf.

There are numerous varieties of bananas in the Philippines, and some

of them are of unrivalled excellence, but fruit of uniform quality is

unobtainable, if desired in any considerable quantity. In the course

of a brief morning visit to the Zamboanga market I have seen fifteen

to twenty different varieties of bananas on sale there, of which a

considerable proportion were full of tannin and fit only for cooking.

A banana plantation gives returns at the end of a year from the time

of planting, and the fruit ought to be grown on plantation scale for

the markets of Cebú, Iloilo, Manila and Hongkong.

Throughout extensive areas conditions are ideal for rubber production,

and Para, castilloa and ceara trees all thrive. Those of the latter

species reach their most perfect development in Bukidnon, where they

grow at an astonishing rate and produce hemispheres of foliage which

look almost solid. A plantation of these trees should be not only

beautiful to look upon but very profitable.

Conditions in the highlands of Luzón, in the sub-province of Bukidnon,

and in other portions of Mindanao, are admirably adapted to the

production of coffee. Indeed, one of the few known wild varieties

is indigenous to the Philippines. The coffee at present produced is

grown in violation of every accepted principle of coffee culture,

but is nevertheless excellent in quality, and any surplus not required

for local consumption is eagerly bought up for shipment to Spain. In

Bukidnon the opportunity for growing coffee upon a large scale is

excellent.

There is little doubt that tea could be advantageously produced in

the Philippine highlands, especially in northern Luzón.

Throughout extensive regions the soil and climate are ideal for

growing cacao, from which is made the chocolate of commerce. It has

numerous insect enemies, and careful scientific cultivation is needed

to obtain the best results.

A determined and very successful effort is being made by the Bureau

of Education to interest the Filipinos in raising corn, which is a far

better food than is rice. They are being taught how to grind and cook

it for human food, and its use, which has long been common in islands

like Cebú, Negros, Siquijor and Bohol, is rapidly increasing. It can

be grown to good advantage in the Philippines, and at existing prices

its production upon a commercial scale for human consumption would be

profitable, but there is another good use to which it can be put. The

supply of fresh pork is not equal to the demand, and there would be a

ready market, at a high price, for a largely increased amount. Corn-fed

hogs are practically unknown in the islands. They ought not to be.

Both corn and camotes flourish in Bukidnon, where the former often

attains a height of from twelve to eighteen feet and produces one to

four ears to the stalk. Here, as elsewhere, careful seed selection

rapidly increases the crop. Camotes, planted after the first ploughing,

kill out all grass and weeds, but rapidly impoverish the soil. Planting

camotes on a large scale and close subsequent pasturing of the land

with hogs would leave the soil enriched and in excellent condition

for planting with other crops. A little corn would put camote-fed

hogs in splendid condition for the market. In this way it would be

possible to raise them inexpensively and on a large scale.

The Philippines produce citrus fruits in considerable variety. Some of

the native oranges and lemons are excellent. No care has as yet ever

been given to their cultivation. They are never pruned or sprayed,

nor is the ground around them kept clean. The larger Philippine towns

and cities afford a good market for citrus fruits, and any surplus

could be shipped to neighbouring Asiatic cities. Experiments in

budding American varieties on to the native stock are now in progress.

In many parts of the islands climate and soil are perfectly adapted

to the production of pineapples, which at present usually grow

uncared for. One pineapple plantation has already been established,

and a factory for canning the product is under construction. Others

will follow.

Roselle, from the fruit of which is made a jelly equal to currant

jelly in colour, and very similar to it in flavour, grows luxuriantly

and produces heavy crops of fruit. An excellent fermented drink may

be made from its leaves and stems.

Mangos, commonly considered to be the best fruit produced in the

islands, can be successfully canned.

Guavas grow wild over extensive areas, and a properly located factory

could produce guava jelly in large quantity.

Briefly, there is every opportunity for the profitable investment of

brains, capital and energy in agricultural pursuits along a score of

different lines. Such investment would be of immense advantage to

the Filipinos themselves. They are neither original nor naturally

progressive, but they are quick to imitate, and would follow the

example set for them. Their country would readily support eighty

million people, and it has eight million, so there is still room for

a few foreigners.

If rice is the bread of the people, fresh fish is their meat. Twenty

or thirty thousand pounds of fresh fish are sold daily in Manila,

and the supply is inadequate to meet the demand. A similar condition

exists in many of the larger towns throughout the archipelago. Dried

fish is extensively used, and sardines preserved in brine find a

ready sale. They may be taken in immense quantities in the southern

islands at certain seasons. The intelligent application of modern

methods to the taking, preserving and marketing of fish would give

immediate and large returns.

Rinderpest appeared in the islands in 1888, and from that time until

the establishment of civil government under American rule swept through

the archipelago practically unchecked, causing enormous losses to

agriculture. For a time it was impossible to plough anything like

the normal amount of land, because of the lack of draught animals.

Promptly upon their establishment, the Bureau of Science and the

Bureau of Agriculture began a determined campaign against this the

most dangerous pest of cattle. The fight has never ceased up to the

present time. While the disease is not completely stamped out, its

ravages have been reduced to insignificant proportions, and the natural

increase of the surviving animals has rehabilitated agriculture.

Good draught animals still bring abnormally high prices. I well

remember that in Spanish days an ordinary carabao cost $7.50, and an

excellent one could be purchased for $12.50. Similar animals to-day

bring from $50 to $75 each, and in certain districts the best carabaos

sell for $100 each.

There is still a great shortage of beef cattle. Refrigerated meat is

imported in large quantities, but many of the Filipinos do not like it,

and will not buy it unless compelled to do so by the lack of any other.

It has been found impracticable to remedy these conditions by importing

Chinese cattle or carabaos for the reason that cattle disease is

prevalent in the regions from which they would necessarily come,

but a way out of the difficulty has now presented itself. Nellore

cattle, one of the humped breeds of India, belonging to a distinct

race known as zebus, are immune to rinderpest, and do not suffer from

tick fever, which is prevalent throughout the islands. They flourish

in the Philippines, and do especially well in Bukidnon.

They are much larger than the Chinese cattle now in common use, walk

faster, are extremely gentle and make superior draught animals. Their

flesh is excellent. Cattle raising in Mindanao on a large scale is

certainly possible, and offers a most attractive field for investment.

The establishment of a great silk-growing industry is dependent only

upon the necessary capital and initiative. The Bureau of Science has

laid the foundation for it by conclusively demonstrating that silk

worms, and the mulberry trees on the leaves of which they thrive,

flourish here. Worms have now been grown for six years, and have

never suffered from any disease. Filipina women and girls, with their

deft fingers, would make excellent help for silk culture. Indeed,

the opportunity to engage in it would be a great boon to them in many

parts of the islands where they now lack profitable employment.

Manufacturing is as yet in its infancy. There are a number of regions

where very cheap power can be had by hydraulic development. That the

Filipinos make good factory labourers has been abundantly demonstrated

in existing tobacco factories, a hat factory, a match factory and a

couple of small factories for the manufacture of tagal braid, [183]

all in successful operation. With plenty of good labour, cheap power

and abundant raw materials, important manufacturing industries should

be developed.

I will not discuss at length the possibility of engaging profitably

in trade. Such possibility exists wherever commodities are bought and

sold, and here as elsewhere profits or losses largely depend on the

abilities of individuals. But the question of the trade relations,

present and possible, between the Philippines and the United States

is one of very great importance.

In the next chapter I show the enormous increase in the total trade

of the country since the American occupation, and the rapid growth

of trade with the United States.

Next to rice, cotton goods form the most important element in the

consuming markets of the islands, and the rapidity with which the

United States is gaining control of this trade is well illustrated

in the following table, showing by years the value of such goods

imported since 1904:--

Importations of Cotton Cloth

-----------------+------------------+---------------

| United States |

Year | Hawaii and Porto | All Countries

| Rico |

-----------------+------------------+---------------

1904 | $278,106 | $4,919,840

1905 | 764,990 | 6,346,962

1906 | 278,796 | 6,642,329

1907 | 1,056,328 | 8,320,079

1908 | 604,742 | 7,909,395

1909 | 508,229 | 6,862,135

1910 | 2,043,000 | 8,444,453

1911 | 4,110,837 | 10,305,017

1912 | 4,143,067 | 9,246,595

1913 | 6,827,082 | 11,483,638

+------------------+---------------

Total | $20,615,177 | $80,480,443

| +---------------

Annual average | | $8,048,044

-----------------+------------------+---------------

From a proportion of slightly over five per cent of the total trade in

manufactures of cotton in 1904, importations of the American product

have increased until they supply fifty-nine per cent of the present

local demand!

The following table is of especial interest. It shows in the first

column the nature and amount of the total exports from the United

States and in the second the nature and amount of United States

exports to the Philippine Islands.

----------------------------------------------+-----------+---------------

| To All | To Philippine

| Countries | Islands

----------------------------------------------+-----------+---------------

Foodstuffs in crude condition, and food | |

animals | 7.48 | 2.25

Foodstuffs partly or wholly manufactured | 13.19 | 14.39

Crude materials for use in manufacturing | 30.10 | .42

Manufactures for further use in manufacturing | 16.84 | 7.19

Manufactures ready for consumption | 32.04 | 75.73

Miscellaneous | .35 | .02

+-----------+---------------

Total | 100.00 | 100.00

----------------------------------------------+-----------+---------------

The most profitable class of exports is manufactures ready for

consumption. It forms no less than 75.73 per cent of the United

States exports to the Philippines. The least profitable exports are

crude materials for use in manufacturing, which make up but forty-two

hundredths of one per cent of the total exports to the Philippines.

Tropical and sub-tropical products are constantly increasing in

popularity in the United States, which is able to produce them to

so small an extent that although the classes included in this table

comprise nearly forty per cent of the total United States imports

for the year, there are but two on which duty is levied.

The following table shows the amount and value of tropical products

imported into the United States during the year ended June 30, 1913:--

------------------------+--------------------+--------------

Products | Amount | Value

------------------------+--------------------+--------------

| |

Cocoa | 140,039,172 lb. | $17,389,042

Coffee | 863,130,757 lb. | 118,963,209

Fibres | 407,098 T. | 49,075,659

Manufactures of fibres | ---- | 76,972,416

Fruits and nuts | ---- | 42,622,653

Goatskins | 45,729,000 T. | 24,790,417

Gums of various kinds | ---- | 15,138,895

Rubber | 214,000,000 lb. | 101,333,158

Matting | ---- | 1,651,813

Vegetable oils | ---- | 38,112,883

Silk, unmanufactured | ---- | 84,914,717

Spices | 65,225,401 lb. | 6,187,136

Sugar | 4,740,041,488 lb. | 103,639,823

Tea | 94,812,800 lb. | 17,433,688

Leaf tobacco | 67,454,745 lb. | 35,919,079

Manufactured tobacco | ---- | 6,577,403

Cabinet woods | ---- | 8,880,000

Rattans and reeds | ---- | 1,800,000

| +--------------

| | $751,401,991

------------------------+--------------------+--------------

The balance of trade with the more important countries from which we

get these products is heavily against us, as is shown by the following

table in which I have included Switzerland, not because we get tropical

or sub-tropical products from that country, but because it furnishes

us embroideries, etc., which could be very cheaply produced in the

Philippines. The figures are for the fiscal year ended June 30, 1913:--

---------------+--------------------+------------------+-----------------

| | | Balance against

| U. S. Imports from | U. S. Exports to | U. S.

---------------+--------------------+------------------+-----------------

Brazil | $120,155,855 | $42,638,467 | $77,517,388

Cuba | 126,088,173 | 70,581,154 | 55,507,019

British E. I. | 116,178,182 | 15,108,956 | 101,069,226

Japan | 91,633,240 | 57,741,815 | 33,891,425

China | 39,010,800 | 21,326,834 | 17,683,966

Switzerland | 23,260,180 | 826,549 | 22,433,631

Mexico | 77,543,842 | 54,571,584 | 22,972,258

Colombia | 15,992,321 | 7,397,696 | 8,594,625

Venezuela | 10,852,331 | 5,737,118 | 5,115,213

Egypt | 19,907,828 | 1,660,833 | 18,246,995

+--------------------+------------------+-----------------

| $640,622,752 | $277,591,006 | $363,031,746

---------------+--------------------+------------------+-----------------

There is no such relationship with the Philippines, which during 1912

imported $20,770,536 worth of merchandise from the United States to

offset the $21,619,686 worth shipped to that country.

The Philippines could readily produce all of these products in

quantities sufficient to meet the demands of the United States if

there were proper development of the resources of the islands, which

have rich land, good labour and suitable climate, but lack capital

and competent, skilled supervision.

The situation has been admirably summed up in the following statement

issued some time since by the Manila Merchants' Association:--

"The Philippines will consume of imported commodities what they are

able to pay for. Their purchasing capacity will always be measured

by their production of export commodities. There is nothing that

they produce, or are adapted to produce, that the United States is

not at present under the necessity of buying from foreign countries

whose import trade it does not, and never will, control. Thus it

cannot hope for such advantages in other fields yielding tropical

products as it already possesses in these Islands."

The Philippines should furnish the bulk of the tropical products

imported into the United States. The commerce between the two countries

should in the very near future increase to $100,000,000 per year each

way and should go on increasing more and more rapidly thereafter.

The Philippines: Past and Present (Volume 2 of 2) · 第 15 / 20 章