V. THE NINETEENTH CENTURY AND ECONOMIC DEVELOPMENT

Towards the close of the eighteenth century there were events which

indicated the coming of greater liberty. Direct communication was

established in 1765 between Manila and Spain by means of a warship

which was to sail annually from Cadiz, with European goods, and to

come back loaded, not only with the products of the Philippines,

but also with Oriental merchandise, including goods from China and

Japan. However, the innovation was not well received in Manila, due

perhaps to the monopolistic habit of the merchants, and, in 1783,

these annual voyages were discontinued. [132]

The coming of Governor José de Basco y Vargas marked a new era in the

economic history of the country, for two important events happened

during his term: the establishment of the Sociedad Económica de

Amigos del Pais, in 1781, and of the Real Compañía de Filipinas,

in 1785. These may be considered to be the most serious attempts

of Spain throughout her rule, to develop the natural resources of

the Philippines.

The Sociedad Económica de Amigos del País.

Basco's idea was to make the Philippines economically self-sufficing,

and not dependent on Mexico. For this reason, he encouraged the

development of agriculture by offering prizes to those who would

excel in the cultivation of cotton, spices, sugar and silk; those who

would open up the various kinds of mines; those who invented useful

things, and those who excelled in the arts and sciences. Likewise, he

issued circulars and pamphlets explaining the method of cultivating

the different Philippine crops. In order to get the community's

co-operation in carrying out his economic plan, he induced the King

to issue a decree establishing the Economic Society. In spite of

serious opposition on the part of many, the society was auspiciously

inaugurated in 1782. It seemed, however, as if Basco's ideas were

too advanced for his time, for the society led a declining life up

to 1822. A memoir published by the Society [133], and containing

a list of its achievements, shows its activity to have consisted of

discussions of economic subjects; the publication of pamphlets dealing

with the cultivation of coffee, sugar, indigo, silk, gutta-percha,

hemp, cacao, and other plants; the offering of prizes to persons who

succeeded in weaving cloths, making dyes, inventing hemp-stripping

machines, and contributing other useful things to agriculture;

and the introduction of agricultural implements of various kinds

from the United States. The Society lived for over a century, till

1890. Another means resorted to by Basco to free the Philippines from

its dependence on Mexico was the establishment of the tobacco monopoly

by the government. This proved to be a good source of revenue, and,

at the same time, was instrumental in bringing into cultivation

large tracts of land. However, the evils attending it were many;

the abuses of the government officials in enforcing the regulations,

and in trying to make profits for themselves; the lack of incentive

on the part of the producer to improve the quality of his tobacco;

the existence of smuggling and bribery, and the poverty of the farmer;

all these were attributed to the tobacco monopoly. [134]

The Royal Company.

The second important event during Basco's rule was the establishment

of the "Real Compañía de Filipinas" by royal decrece of March 10,

1785. The capital of the company was fixed at eight million pesos

divided into 32,000 shares of two hundred and fifty pesos each;

the king bought four thousand shares, and the citizens of Manila

were allowed three thousand. The chief object of the company was

to establish commercial relations among the different colonies,

and also between the colonies and Spain; to supply Manila with the

products of Europe, and, in return, to carry to Spain not only the

products of the Philippines, but also the merchandise coming from the

Oriental countries. The second important object was the encouragement

of Philippine agriculture, as shown in section four of the charter,

which required the company to invest four per cent. of its net profits

in some extractive industries, chiefly agriculture. In order to help

the company, all the laws and decrees which prohibited the importation

of Oriental cloths into Spain, were repealed, and the products of the

Philippines were exempted from all kinds of duties both in Manila and

in Spain. Furthermore, the merchants of Manila were allowed to go

to the Asiatic ports for trade, and the Chinese who came to Manila

were allowed to trade freely without subjecting themselves to any

restrictions. However, the old Manila-Acapulco trade was not to be

disturbed, for the company could not send ships to Acapulco.

The company encouraged the production of silk, [135] indigo,

[136] sugar, [137] cotton, [138] and especially of pepper and other

spices. For this purpose it bought lands, established posts in Ilocos,

Bataan, Cavite, and Camarines, and offered prizes. It also gave

stimulus to manufacturing by establishing textile factories.

In spite of the special protection and privileges granted to the

company, it declined from year to year. In 1805 it was rechartered,

and given fifteen years of life and the same privileges as before;

its capital was fixed at twelve and a half million pesos divided

into shares of two hundred and fifty pesos each; foreigners were

allowed to own shares; and the ships were allowed to sail directly

from the Asiatic ports without stopping at Manila; and finally the

three-year privilege, [139] allowed to foreigners at the request

of the company in 1789, of importing into Manila Asiatic goods, and

exporting the products of the country, was made perpetual. In 1830

its privileges were revoked, and Manila was left open to foreign

commerce and navigation.

What were the causes that led to the ill success of the Royal

Company? Among the minor causes mentioned was the indifference

of the residents of the Philippines; for, as Zuñiga says, [140]

"taught to gain in New Spain what is necessary for their comfort,

without any more work than sending a memorial once every year, it is

hard for them to engage in a commerce which is servile and vexatious;

and, accustomed to exorbitant profits, they cannot adapt themselves

to the gradual profits in a store; * * *. Furthermore, the company

neglected to import the goods from Europe, such as wines and groceries,

which the foreign ships brought at great profit."

It also failed to establish direct trade relations with China and

India, but depended solely on buying the goods which were brought

there by the Chinese and other foreign traders; hence, it had to pay

higher prices for the Oriental goods it sent to Europe. The company,

too, overestimated the importance of certain Philippine products,

especially spices, which were produced much more cheaply in Sumatra and

Java. Though allowed to invest only four per cent of its net profits in

agriculture during the first years of its existence, it invested great

sums in buying lands, made advances to the producers; in other words,

it engaged in much speculation, which proved disastrous. It also gave

premature attention to the development of manufacturing. The chief

cause, however, of the failure of the company was the fact that it

was not given control of the Manila-Acapulco trade, which continued

to absorb the attention of the very men, who, because of experience

in the country, would have helped the Company during its formative

years. [141]

According to Dr. Tavera, the Royal Company introduced capital, which

was essential for economic development. [142]

The opening of the ports.

Even before the coming of Basco, the taking of Manila by the English

in 1762 had a good economic effect, for it acquainted England with

the natural resources of the Philippines, and the possibilities for

material development. [143] Perhaps as a result of the information

thus gained, we find an English commercial house obtaining permission

to establish itself in Manila in 1809. And in 1814, probably due to

the liberalizing influence of the war of independence just closed in

Spain, it was stipulated that all colonial ports still restricted

should be opened to foreign traffic, and that foreigners should be

allowed to enter, and engage in commercial activities; thus was swept

away the restrictive colonial policy, which had prevailed among the

European nations, and which Spain was the very last to abandon. In the

beginning, however, there was need of special royal permission for each

foreign house established. Later on the permission of the Governor

General only sufficed. [144] An earlier edict of the Philippine

government, repeated in 1828 and again in 1840, forbade foreigners to

sell at retail or to enter the provinces to carry on business of any

kind. [145] In 1842 there were in Manila thirty-nine Spanish shipping

and commercial houses, and about a dozen foreign houses, of which seven

or eight were English, two were Americans, one was French, and another

Danish, while consuls of France, the United States, Denmark, Sweden,

and Belgium resided there. [146] By about 1859, according to Bowring,

there were in Manila seven English, three American, two French, two

Swiss, and one German commercial establishments; and in the other

ports, there was no European business house, except one in Iloilo,

where there was an English firm of which the British vice-consul was

the directing partner. [147]

Once Manila was opened, the advocates of greater freedom did not rest

content with only one free port, because there were great difficulties

in connection with the exportation of products from the places far

from Manila. The products of the Ilocano provinces, southern Luzon,

and the Visayas, and even Mindanao, had all to be taken to Manila,

and from there, exported. Thus, the system entailed unnecessary risks,

waste of time, and extra expense. [148] Accordingly, at the request

of the government of the Philippines, Royal Order of September 29,

1855, approved the opening of the ports of Sual (Pangasinan), Iloilo,

and Zamboanga. And lastly, by Royal Decree of July 30, 1860, Cebu,

which up to that time was obliged to send her products for exportation

either to Manila or Iloilo, was opened.

Effects of the opening of the ports.

Taking the increase of exports as an indication of greater agricultural

and commercial activity, we find that, with the opening of the ports,

exports increased; and these now consisted of the products of the

country, instead of manufactured goods brought from elsewhere in the

Orient. [149] By 1839, the Philippines exported 2,674,220 pesos of her

own products, as against 500,000 pesos in 1810. [150] Sugar in 1782,

was the only product which was attracting any attention, because at the

time, thirty-thousand piculs of it had been exported; in 1840, 146,661

piculs were exported; in 1854 the amount had increased to 566,371,

almost four times greater than in 1840; and in 1857 the amount reached

714,059 piculs. [151] Similarly, the amount of hemp exported increased,

in spite of the fact that it found its way in the world's market for

the first time only in the early part of the nineteenth century. [152]

The same effect that was observed in connection with the opening of

Manila followed that of the other ports. The production of the regions

around the new ports increased as shown by export statistics, and

commercial activity was stimulated, as shown in the greater movement

of ships. For example, Sual in 1857 sent abroad twelve ships with rice,

and two hundred and twenty-five ships to Manila, also loaded with rice;

in 1860, sixty ships went abroad, and one hundred and seventy-two

to Manila, loaded mostly with the same cargo. Again, although in the

first three or four years there were no marked increase in her exports,

Iloilo by 1859 began to show signs of increasing productivity. [153]

Its total value of exports, which in 1858 amounted to 82,000 pesos,

had increased to 1,000,000 pesos in 1863.

Furthermore, the opening of Iloilo encouraged production in the

island of Negros. Previous to the new era the conditions there were

described thus: "... before the happy event that we are considering,

that island was uncultivated, thinly populated, and above all, without

any kind of production to keep commerce alive; besides the Governor,

the Alcalde mayor, and the curates sent by the religious orders,

there were no other Spaniards; only one European, a French doctor by

the name of Gaston, had settled there, cultivating sugar cane, and

now and then sending some cargoes to Manila. [154] Again, Jagor tells

us that in 1857 there was not one iron mill to be found on the island;

and that in working with the wooden mill, about 30% of the sap remained

in the cane, even after it had been thrice passed through. However,

the old wooden presses were disappearing, and were being supplanted

by iron mills run by steam or carabao. These mills the natives had no

difficulty in obtaining because they could get them on credit from

the warehouses of the English importers. Instead of the old Chinese

cast-iron pans which were in use, far superior articles had been

imported from Europe; and many large factories worked by steam power

and with all modern improvements had been established. In agriculture,

likewise, great progress was noticeable. Improved plows, carts, and

good farming implements generally were to be had in plenty. [155]

After the opening, the 4,000 piculs of sugar produced in Negros in

1856 had increased to 100,000 in 1864 for exportation; there were

25 Europeans in the same year, 7 machines run by steam in the towns

of Bacolod, Minuluan, and Bago, and 45 run by animal power. Similar

advance characterized the other parts of the islands. [156]

The increased production, due to the improved methods of cultivation,

had a great effect on the inhabitants of the islands, for, not only did

it bring about greater welfare because of more adequate satisfaction

of their necessities, but also because it developed a demand for other

necessities; hence, raising the standard of living. Referring to the

same phenomenon in Iloilo Mr. Loney in a report as vice-consul of Great

Britain, said that the current testimony of all the elder residents

in the province was that during the last few years a very marked

change had taken place in the dress and general exterior appearance

of the inhabitants of the large pueblos, owing in great measure to

the comparative facility with which they obtained articles which

were formerly either not imported, or the price of which placed them

beyond their reach. In the interior of the houses the same change was

observable in the furniture and other arrangements, and the evident

wish to add ornamental to the more necessary articles of household

use. [157]

And since the opening of the ports, a great many people, especially

mestizos, who before traded in manufactured goods purchased in Manila,

abandoned their business, and, unable to compete with the Chinese

dealers, had betaken themselves to the raising of sugar, and other

products to the great benefit of the country. [158] And, thus, the

greater exploitation of natural resources gave rise to the demand for

better means of communication, [159] and other material improvements.

The material progress of the Filipinos wrought great changes in

the social population, mind, and structure. Though not affecting

the majority of the people, economic advance paved the way for

the development of the spirit of independence and criticism, which

characterizes an independent and stable middle class. It was that

class, which, because of contact with the new ideas brought by the

newcomers, and of increasing material power, first questioned the

abuses of the government, and demanded social reforms. [160]

Furthermore, the law that all the energy in the growth and activity of

a population is derived from the physical world, and hence, density of

population is dependent on material progress, is well illustrated by

the increase of population in this country during the last century,

especially its first half. [161] In turn, density of population made

possible further social progress. [162]

Conclusion.

Why is it that writers attribute great significance to the coming of

the foreign business men, especially the American and British? [163]

Why was it that the opening of the ports, and the coming of the

foreigners, resulted in the material progress of the country? Two

circumstances are of prime importance in considering the growth of

new settlements, and the conditions determining their economic and

social progress. The first is whether or not they possess markets

for commodities which their natural resources enable the people to

produce easily. This condition is important for, without markets in

other communities new countries can possess no material advantage over

old ones in the production of wealth. Now, the opening of Philippine

ports to foreigners brought our products in contact with the world's

market, without which it would have been useless to attempt to produce

any more than what was required by the local demand. In other words,

the world's demand for the commodities we produce easily, served as

an effective stimulus to further production.

The second circumstance affecting the growth of a new country is

the extent to which the people are able to secure the co-operation

of capital from older communities to assist them. There are several

ways by which capital may co-operate in the development of a new

territory. The first is, where capital in the form of stocks of

commodities of all kinds is advanced or sold upon credit by the

commercial houses. This has been used in this country. The example of

Mr. Nicholas Loney, an Englishman, agreeing to be paid for his sugar

machineries with the increased earnings due to the use, by the Filipino

planters, of such machines, is a good illustration of how foreign

capital could be utilized to advantage by all parties concerned. On

the one hand, the planter improved his method of cultivation,

thereby increasing his produce, and, on the other, the foreign

merchant sold more of his imported machineries, and exported more of

the products of the Philippines to his country. [164] Furthermore,

labor is not without some benefit, for the payment of higher wages is

then possible. The second way by which capital may co-operate is by

providing transportation facilities to connect a new country with the

markets, and especially with those so necessary to its prosperity;

for example, by organizing steamboat companies, building important

roads, and, above all, constructing railroads. This also was done

in this country; the building of the Manila-Dagupan railroad, for

example, has had a remarkable influence upon the economic progress

of the provinces through which it passed.

Thus is explained why it is that the opening of the Philippines to

the outside world caused great social changes.

Philippine progress prior to 1898 · 第 27 / 51 题