INTRODUCTION

Need of more study of Philippine Economic Development.

The Spanish writers, and with them the Filipinos as well as, to a

great extent, writers of Philippine treatises in other languages,

have over-emphasized the political history of the Philippines. The

history of this country has been regarded but as the history of the

Spaniards in it, and not of its people, the Filipinos. [1] Hence

arises the need of studying our history from the point of view of

the development of our people, especially to trace and show the part

played by them in Philippine social progress as a whole. [2]

The study of the economic history of a country is important also

because economic forces play a great part in the development of any

people. Indeed, some claim that all history may be explained in terms

of economic motives. This is known as the economic interpretation

of history. [3] Without going into the controversy centering around

this theory, we can readily see that what we know as civilization

has a two-fold basis, the physical and the psychical. And it is only

after the physical basis is secured, that further psychical advance

is possible. "Among all species, and in every stage of evolution,

the extent of aggregation and its place or position are determined

by external physical conditions. Even when men have become united by

sympathies and beliefs, the possibility of perpetuating their union is

a question of the character and resources of their environment. The

distribution of food is the dominating fact. Animals and men dwell

together where a food supply is found, or may be certainly and easily

produced. Other physical circumstances of the environment, however,

such as temperature and exposure, surface and altitude, which make life

in some places comparatively easy, in others difficult or impossible,

exert an influence not to be overlooked." (Franklin Henry Giddings,

The Principles of Sociology, p. 82. New York: 1911.)

We need not trace the history of early civilizations to show the

influence exerted by physical factors. We need only to recall the

motives, familiar to all, which led to the discovery of America,

namely, the closing of the trade routes to the East through the

conquest of the Turks. And the history of this country itself furnishes

many illustrations. Both ancient and modern writers have had a good

deal to say about the strategic position of the Philippine Islands

in relation to the countries bordering around the Pacific Ocean. [4]

It was that central geographical position which explained the marked

predominance of Manila as a trade depot over all the other ports in the

Orient, at one time in our history. That was, furthermore, the reason

why the Spaniards kept the country; they wanted to use it "as a means

to be nearer, and to reach more quickly, the rich country of spices,

and then the continent of Asia, Japan, and the Orient in general." [5]

Finally, we should distinguish the various causes that explain

historical events. For example, a good deal of what has been known

as the religious question in this country, is not concerned with

religion at all, but chiefly with economics. It is not always easy to

distinguish these various causes; a fact which only goes to explain

the one-sided point of view which has prevailed till the present. But,

that the questions connected with the means of getting a living were

considered paramount, even long before the formal exposition of the

economic interpretation of history, may be seen from the words of

the provincials of the religious orders in a remonstrance addressed

to the governor and captain-general of the Philippines, wherein they

depicted the deplorable conditions in the Islands:

"Third, all the Christian Indians would be more steadfast and rooted

in the holy faith, and would become effective and most suitable

instruments for (gaining) new conversions of infidels (and) apostates,

the infidels themselves beholding the abundant wealth and profit,

and other benefits, of the Christian Indians; FOR IT IS THE TEMPORAL

WELFARE EVIDENT TO THEIR SENSES WHICH, AS EXPERIENCE TEACHES US,

STRONGLY INFLUENCES BOTH CLASSES OF INDIANS, TO BE CONVERTED OR TO

MAINTAIN THEMSELVES IN THE CHRISTIAN FAITH." [6]

Divisions of present work.

The present work is built around a group of ideas briefly summarized

as follows: The first three chapters portray the industries and

commerce at the time of the coming of the Spaniards; and explain

the causes that led to their decline; the fourth chapter dwells

upon the era of restriction, and the Manila-Acapulco trade, which,

for over two centuries, dominated this country, and has had such

depressing effect upon economic growth; the last chapter takes up

the era of liberalism, during the nineteenth century, and shows how

the opening of the Philippines to foreign influence resulted in the

development of its natural resources. Any attempt to trace Philippine

economic development in the past three centuries must necessarily

start, not so much with a detailed account of how the industries

developed as with an exposition of how they were not developed. On

the other hand, the remarkable social progress of the last half of

the nineteenth century, following the opening of the markets of the

world to Philippine products, is an encouraging indication of probable

social advance yet to be attained.

I. AGRICULTURE AND LANDHOLDING AT THE TIME OF THE DISCOVERY AND

CONQUEST

Agriculture.

At the time of the arrival of the Spaniards, agriculture in the

Philippines was in a comparatively prosperous condition. [7] The

Filipinos cultivated rice, which, as today, formed their chief article

of food. They grew also sugar-cane, coconuts, indigo, sweet potatoes,

and other tubers, various kinds of bananas, the betel-nut palm, the

tamarind, lansone, and several varieties of legumes, [8] The hemp

plant was likewise grown, and as we shall see later on, was used

at the time for making the so-called "sinamay" cloth. [9] Cotton

was cultivated, and furnished the material for weaving. Among the

native fruits mentioned by Morga are: "sanctors, mabolos, tamarinds,

nancas, custard-apples, papaws, guavas, and everywhere many oranges,

of all kinds--large and small, sweet and sour; citrons, lemons, and

ten or twelve varieties of very healthful and palatable bananas." [10]

With the coming of the Spaniards, very many plants which are commonly

considered to be indigenous in this country, were introduced. [11]

The most important economic plant imported since Spanish discovery

was the tobacco, which today forms one of the staple crops, though

it took many years before it came to anything like its present

position. The cacao nut also was imported. Among the most commonly

known of the others are; maize, peanut, papaya, and, also pineapple,

and sweet potato. [12] All of these plants came from Mexico. [13]

Coffee was introduced from Europe. [14]

Live stock.

The Filipinos at the time of discovery had domestic animals, dogs,

cats, pigs, goats and buffaloes, i.e. carabaos. [15] "There were no

horses, mares, or asses in the islands, until the Spaniards had them

brought from China and brought them from Nueva Espana." [16]

The Kings of Spain in their instructions to the governors-general

of the Philippines were solicitous about this matter of supplying

this country with sufficient live stock to carry on farm work. [17]

The early accounts of expeditions to find food for the Spaniards show

that chickens were raised by the Filipinos. [18]

It has been truly said that the Filipino has been affected by the

centuries of Spanish sovereignty far less on his material side than

he has on his spiritual. [19] For as we read the early accounts

about agricultural life at the time of discovery and conquest,

and compare it with that of a decade ago, we do not find any marked

change or advance. [20] The early Filipinos knew how to construct

implements for the cultivation of their rice, such as for hulling

and separating the chaff from the grain; and they had wooden mortars

and pestles for pounding and whitening rice. Then, the women did most

of the work of pounding the rice for use, whereas today, the men do

it. [21] Furthermore, in the early days, the system of irrigating

the rice fields that is used today was known and practiced. [22]

Of course, the so-called caingin method of cultivation prevailed,

but the considerable amounts of rice which at various times were

contributed by the Filipinos for the support of the Spanish conquerors

could not have been produced under such a crude system of cultivation,

but only by the more advanced one, which closely resembled that of

the present time. [23]

Land holding.

The lands of the ancient Filipinos were divided among the whole

barangay, so that each one had his holding and no resident of one

barangay was allowed to cultivate lands in another barangay unless he

had acquired them by inheritance, gift, or purchase. In some barangays

the lands belonged to the chief through purchase from the original

owners. In some localities the chiefs or principal personages also

owned the fisheries, and their rights were respected. [24]

With the coming of the Spaniards, lands were assigned to the colonists,

of which they were to have perpetual ownership after four years'

residence. [25] Encomiendas of the Indians were also granted to

the discoverers and conquerors. [26] It is in connection with the

administration of these encomiendas that we find in the annals of the

Philippines many accounts of abuses and extortions practiced on the

natives, and the consequent revolts. It must not, however, be supposed

that the Filipinos were actually dispossessed of their lands by the

king; for, although according to the constitutional law of the Indies

the land and the soil in all colonies were the domain of the king [27]

and, therefore, could be assigned to deserving persons, there were

royal decrees intended to protect the natives in their time-honored

possession. [28] The question of land ownership has, however, from

earliest times been the source of conflicts between the religious

orders and the people. Without going into the technical,--and perhaps

today, academic,--question of which side had the better legal argument,

the fact cannot be denied that the Filipinos had always protested,

throughout the various centuries of contact with the Spaniards,

against what they considered to be usurpation of their lands. [29]

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