FINANCE, TAXATION, ETC.
The gross revenues of the Philippines are about 10,000,000 dollars. The
budget for 1859 is as follows:--
RECEIPTS. EXPENDITURE.
Dollars. Dollars.
Contributions and Grace and Justice 679,519·11
taxes 1,928,607·92 War 2,216,669·44
Custom-houses 600,000·00 Finance (Hacienda) 5,367,829·83
Monopolies 7,199,950·59 Marine 904,331·27
Lotteries 253,500·00 Government 272,528·62
State property 12,118·59 Remitted to and
Uncertain receipts 21,826·00 paid for Spain 1,011,850·00
Marine 1,338·00
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Total 10,017,341·10 Total 10,452,728·27
Thus about one-tenth of the gross revenue is received by the mother
country in the following shapes:--Salaries of Spanish consuls in the
East, 22,500 dollars; remittances to Spain and bills drawn by Spain,
680,600 dollars; tobacco and freights, 168,750 dollars; credits to
French government for advances to the imperial navy, 140,000 dollars.
Of the direct taxes, 68,026·77 dollars are paid as tribute by the
unconverted natives, 114,604·50 dollars by the mestizos (half-races),
136,208·78 dollars by the Chinese, and 1,609,757·87 dollars by the
Indians (or tribes professing Christianity).
The produce of the customs is so small, and the expenses of collection
so great--the cost of the coast and inland preventive service alone
being 265,271·99 dollars; general and provincial administrations,
between 70,000 and 80,000 dollars--that I am persuaded it would be a
sound, wise and profitable policy to abandon this source of taxation
altogether, and to declare all the ports of the Philippines free.
I have also come to the conclusion that the monopolies, which give
a gross revenue to the treasury of more than 7,000,000 dollars, are,
independently of their vicious and retardatory action upon the public
weal, far less productive than taxation upon the same articles might
be made by their emancipation from the bonds of monopoly. I leave
here out of sight the enormous amount of fraud and crime, and the
pernicious effects upon the public morals of a universal toleration
of smuggling, as well as the consideration of all the vexations,
delays, checks upon improvement, corruption of officials and the
thousand inconveniences of fiscal interference at every stage and
step; and only look at the acknowledged cost of the machinery--it
amounts to about 5,000,000 dollars--so that the net produce to the
State scarcely exceeds 2,000,000 dollars.
The whole receipt from the tobacco monopoly is 5,097,795 dollars. The
expenses for which this department is debited are (independently of
the proportion of the general charges of administration)--
Dollars. Cents.
Personal--
Collection of Tobaccos 24,604 0
Manufacture of Cigars 44,366 0
Materiel--
Collection of Tobacco 66,741 75
Manufactures of Cigars 6,888 0
Purchase of Tobacco 1,412,503 30
Paper and other charges 62,865 3
Cost of sorting Tobacco 13,200 29
Cost of manufacturing 1,171,262 73
Charges for conveyance 259,321 76
Boxes, packing, warehousing, &c. 150,000 0
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3,211,752 86
So that the net rendering of this most valuable production is only
1,886,042·14 dollars, or 37 per cent. upon the gross amount, 63 per
cent. being expended on the production of the tobacco and manufacture
of the cigars. I am of opinion that from 4,000,000 to 5,000,000 dollars
might be realized with immense benefit to the public by a tax upon
cultivation, or the imposition of a simple export duty, or by a union
of both. Production would thus be largely extended, prices moderated
to the consumer and the net revenue probably more than doubled.
From the produce of the lottery, 253,500 dollars, there have to be
deducted--expenses of administration, 4,472 dollars; prizes paid,
195,000 dollars; prizes not claimed, 1,000 dollars; commission on
sales of tickets, 4,680 dollars; making in all, 205,152 dollars; so
that this fertile source of misery, disappointment, and frequently
of crime, does not produce a net income of 50,000 dollars to the
State. It may well be doubted if such a source of revenue should be
maintained. The revenue derived from cock-fights, 86,326·25 dollars,
is to some extent subject to the same condemnation, as gambling is
the foundation of both, but in the case of the galleras the produce
is paid without deduction into the treasury.
In the Bisayas palm wine has been lately made the object of a State
monopoly which produces 324,362 dollars, but is very vexatious in its
operation and much complained of by the Indians. The tax on spirituous
liquors gives 1,465,638 dollars. The opium monopoly brings 44,333·34
dollars; that of gunpowder, 21,406 dollars. Of smaller sources of
income the most remarkable are--Papal bulls, giving 58,000 dollars;
stamps, 39,600 dollars; fines, 30,550 dollars; post-office stamps,
19,490 dollars; fishery in Manila harbour, 6,500 dollars.
It is remarkable that there are no receipts from the sale or rental of
lands. Public works, roads and bridges are in charge of the locality,
while of the whole gross revenue more than seven-tenths are the
produce of monopolies.
Of the government expenditure, under the head of Grace and Justice,
the clergy receive 488,329·28 dollars, and for pious works 39,801·83;
Jesuit missions to Mindanao, 25,000. The cost of the Audiencia is
65,556; of the alcaldes and gobernadores, 53,332 dollars.
In the war department the cost of the staff is 154,148·80 dollars;
of the infantry, 857,031·17 dollars; cavalry, 52,901·73 dollars;
artillery, 192,408·71 dollars; engineers, 32,173 dollars; rations,
140,644·31 dollars; matériel, 149,727·10 dollars; transport, 112,000
dollars; special services, 216,673·89 dollars. In the finance expenses
the sum of 310,615·75 dollars appears as pensions.
The personnel of the marine department is 235,671·82 dollars; cost
of building, repairing, &c., 266,813·17 dollars; salaries, &c.,
are 155,294·98 dollars; rations, 190,740·84 dollars.
The governor-general receives, including the secretariat, 31,056
dollars; expenses, 2,500 dollars. The heaviest charge in the section of
civil services is 120,000 dollars for the mail steamers between Hong
Kong and Manila, and 35,000 dollars for the service between Spain and
Hong Kong. There is an additional charge for the post-office of 6,852
dollars. The only receipt reported on this account is for post-office
stamps, 19,490 dollars.
I have made no reference to the minor details of the incomings and
outgoings of Philippine finance. The mother country has little cause
to complain, receiving as she does a net revenue of about 5s. per head
from the Indian population. In fact, about half of the whole amount of
direct taxation goes to Spain, independently of what Spanish subjects
receive who are employed in the public service. The Philippines
happily have no debt, and, considering that the Indian pays nothing
for his lands, it cannot be said that he is heavily taxed. But that
the revenues are susceptible of immense development--that production,
agricultural and manufactured, is in a backward and unsatisfactory
state--that trade and shipping might be enormously increased--and
that great changes might be most beneficially introduced into many
branches of administration, must be obvious to the political economist
and the shrewd observer. The best evidence I can give of a grateful
remembrance of the kindnesses I received will be the frank expression
of opinions friendly to the progress and prosperity of these fertile
and improveable regions. Meliorations many and great have already made
their way; it suffices to look back upon the state of the Philippines,
"cramped, cabined and confined" as they were, and to compare them
with their present half-emancipated condition. No doubt Spain has
much to learn at home before she can be expected to communicate
commercial and political wisdom to her dependencies abroad. But she
may be animated by the experience she has had, and at last discover
that intercourse with opulent nations tends not to impoverish, but
to enrich those who encourage and extend that intercourse.