"In reply to the fourth question he stated that, before the coming

of the Spaniards, all the natives lived in their villages, applying

themselves to the sowing of their crops and the care of their

vineyards, and to the pressing of wine; others planting cotton,

or raising poultry and swine, so that all were at work; moreover,

the chiefs were obeyed and respected, and the entire country well

provided for. But all this has disappeared since the coming of the

Spaniards." (Testimony of Nicolas Ramos, chief of Cubao village

and governor of same, under oath, in compliance with order of

G. P. Dasmariñas "forbidding" the Indians to wear Chinese stuff;

April 9, 1591.--Bl. and Rb., Vol. 8, p. 87.)

[71] "* * * Many islands and villages are devastated and almost wiped

out, partly by the Spaniards or because of them, and partly by famines

of which, or at the beginning of them, the Spaniards were the reason;

for either by fear or to get rid of the Spaniards the natives NEGLECTED

THEIR SOWING, and when they wished to sow then anguish came to them,

and consequently many people have died of hunger." (Augustinian

Memoranda, 1373.--Bl. and Rb., Vol. 34, p. 279.)

"After the end of the war the need of the city began, for, because

of not having Sangleys who worked at the trades, and brought in

all the provisions, there was no food, nor any shoes to wear,

not even at excessive prices. The native Indians are very far from

exercising those trades, and have even forgotten much of farming,

and the raising of fowls, cattle, and cotton, and the weaving of

cloth, which they used to do in the days of their paganism and for

a long time after the conquest of the country. In addition to this,

people thought that Chinese vessels would not come to the islands

with food and merchandise, on account of the late revolution. * * *"

(Antonio de Morga's Sucesos, 1601.--Bl. and Rb., Vol. 16, pp. 42-43).

[72] In La Indolencia, Rizal further says:

"It was necessary to subject the people either by cajolery or force;

there were fights, there was slaughter; those who had submitted

peacefully seemed to repent of it; insurrections were suspected,

and some occurred; naturally there were executions, and many capable

laborers perished. Add to this condition of disorder the invasion of

Limahong, add the continual wars into which the inhabitants of the

Philippines were plunged to maintain the honor of Spain, to extend

the sway of her flag in Borneo, in the Moluccas and in Indo-China;

to repel the Dutch foe: costly wars, fruitless expeditions, in which

each time thousands and thousands of native archers and rowers were

recorded to have embarked, but whether they returned to their homes was

never stated. Like the tribute that once upon a time Greece sent to the

Minotaur of Crete, the Philippine youth embarked for the expedition,

saying good-by to their country forever: on their horizon were the

stormy sea, the interminable wars, the rash expeditions. Wherefore,

Gaspar de San Agustin says: 'Although anciently there were in this

town of Dumangas many people, in the course of time they have very

greatly diminished because the natives are the best sailors and most

skillful rowers on the whole coast, and so the governors in the port

of Iloilo take most of the people from this town for the ships that

they send abroad. * * * When the Spaniards reached this island (Panay)

it is said that there were on it more than fifty thousand families;

but these diminished greatly; * * * and at present they may amount

to some fourteen thousand tributaries.' From fifty thousand families

to fourteen thousand tributaries in little over half a century!

We would never get through, had we to quote all the evidence of the

authors regarding the frightful diminution of the inhabitants of the

Philippines in the first years after the discovery. In the time of

their first bishop, that is, ten years after Legaspi, Philip II said

that they had been reduced to less than two-thirds."

[73] La Indolencia de los Filipinos:

"In order to make headway against so many calamities, to secure their

sovereignty and take the offensive in these disastrous contests, to

isolate the warlike Sulus from their neighbors in the south, to care

for the needs of the empire of the Indies (for one of the reasons why

the Philippines were kept, as contemporary documents prove, was their

strategical position between New Spain and the Indies), to wrest from

the Dutch their growing colonies of the Moluccas and get rid of some

troublesome neighbors, to maintain, in short, the trade of China with

New Spain, it was necessary to construct new and large ships which,

as we have seen, costly as they were to the country for their equipment

and the rowers they required, were not less so because of the manner in

which they were constructed. Fernando de los Rios Coronel, who fought

in these wars and later turned priest, speaking of these King's ships,

said: 'As they were so large the timber needed was scarcely to be

found in the forests (of the Philippines!), and thus it was necessary

to seek it with great difficulty in the most remote of them, where,

once found, in order to haul and convey it to the shipyard the towns

of the surrounding country had to be depopulated of natives, who get it

out with immense labor, damage, and cost to them. The natives furnished

the masts for a galleon, according to the assertion of the Franciscans,

and I heard the governor of the province where they were cut, which

is Laguna de Bay, say that to haul them seven leagues over very broken

mountains 6,000 natives were engaged three months, without furnishing

them food, which the wretched native had to seek for himself.'

"And Gaspar de San Agustin says: 'In these times (1690), Bacolor has

not the people that it had in the past, because of the uprising in

that province when Don Sabiniano Manrique de Lara was Governor of

these islands and because of the continual labor of cutting limber

for his Majesty's shipyards, WHICH HINDERS THEM FROM CULTIVATING THE

VERY FERTILE PLAIN THEY HAVE'."

[74] "The Indians, upon seeing that wealth excited the rapacity of

the encomenderos and soldiers, abandoned the working of the mines,

and the religious historians assert that they counseled them to a

similar action in order to free them from annoyances. Nevertheless,

according to Colin (who was 'informed by well-disposed natives'),

more than 100,000 pesos of gold annually, conservatively stated,

was taken from the mines during his time, after eighty years of

abandonment. According to a 'manuscript of a grave person who had

lived long in these islands,' the first tribute of the two provinces

of Ilocos and Pangasinan alone amounted to 109,500 pesos. A single

encomendero, in 1587, sent 3,000 taheles of gold in the 'Santa Ana,'

which was captured by Cavendish." (Rizal's Notes to Antonio de Morga's

Sucesos, 1609, Bl. and Rb., Vol. 16, p. 101.)

"If this is not sufficient to explain the depopulation of the islands

and the abandonment of industry, agriculture and commerce, then

add 'the natives who were executed, those who left their wives and

children and fled in disgust to the mountains, those who were sold

into slavery to pay the taxes levied upon them,' as Fernando de los

Rios Coronel says; add to all this what Philip II said in reprimanding

Bishop Salazar about 'natives sold by some encomenderos to others,

those flogged to death, the women who are crushed to death by their

heavy burdens, those who sleep in the fields and there bear and nurse

their children and die bitten by poisonous vermin, the many who are

executed and left to die of hunger and those who eat poisonous herbs *

* * and the mothers who kill their children in bearing them,' and you

will understand how in less than thirty years the population of the

Philippines was reduced one-third. We are not saying this: it was said

by Gaspar de San Agustin, the preeminently anti-Filipino Augustinian,

and he confirms it throughout the rest of his work by speaking every

moment of the state of neglect in which lay the farms and fields

once so flourishing and so well cultivated, the towns thinned that

had formerly been inhabited by many leading families!

"How is it strange, then, that discouragement may have been infused

into the spirit of the inhabitants of the Philippines, when in the

midst of so many calamities they did not know whether they would see

sprout the seed they were planting, whether their field was going to

be their grave or their crop would go to feed their executioner? What

is there strange in it, when we see the pious but impotent friars of

that time trying to free their poor parishioners from the tyranny

of the encomenderos by advising them to stop work in the mines,

to abandon their commerce, to break up their looms, pointing out to

them heaven for their whole hope, preparing them for death as their

only consolation?"--(La Indolencia.--Rizal.)

[75] "* * * Doubtless if we could see the whole character of the

Spanish rule in those decades, we should see that the actual condition

of the Filipino had improved and his grade of culture had risen. No one

can estimate the actual good that comes to a people in being brought

under the power of a government able to maintain peace and dispense

justice. Taxation is sometimes grievous, corruption without excuse;

but almost anything is better than anarchy.

"Before the coming of the Spaniards, it seems unquestionable that the

Filipinos suffered greatly under two terrible grievances that afflict

barbarous society--in the first place, warfare, with its murder,

pillage, and destruction, not merely between tribe and tribe, but

between town and town, such as even now prevail in the wild mountains

of northern Luzon, among the primitive Malayan tribes; and in the

second place, the weak and poor man was at the mercy of the strong

and the rich.

"The establishment of Spanish sovereignty had certainly mitigated,

if it did not wholly remedy, these conditions. 'All of these

provinces,' Morga could write, 'are pacified and are governed from

Manila, having alcaldes mayores, corregidors, and lieutenants,

and dispense justice. The chieftains (principales), who formerly

held the other natives in subjection, no longer have power over

them in the manner which they tyrannically employed, which is not

the least benefit these natives have received in escaping from such

slavery.'" (Dr. D. P. Barrows, History of the Philippines, p. 166.)

[76] Chao Ju-kua's Description of the Philippines.--Bl. and Rb.,

Vol. 34, pp. 183-191.

Rizal, La Indolencia. (All quotations from this work are taken from

the Derbyshire translation.):

"Indolence in the Philippines is a chronic malady, but not a

hereditary one. The Filipinos have not always been what they are,

witnesses whereto are all the historians of the first years after

the discovery of the Islands.

"Before the arrival of the Europeans, the Malayan Filipinos carried

on an active trade, not only among themselves but also with all the

neighboring countries. A Chinese manuscript of the 13th century,

translated by Dr. Hirth (Globus, Sept. 1889), which we will take

up at another time, speaks of China's relations with the islands,

relations purely commercial, in which mention is made of the activity

and honesty of the traders of Luzon, who took the Chinese products

and distributed them throughout all the islands, traveling for nine

months, and then returned to pay religiously even for the merchandise

that the Chinamen did not remember to have given them. The products

which they in exchange exported from the islands were crude wax,

cotton, pearls, tortoise-shell, betelnuts dry-goods, etc."

[77] The method of trading is thus described by Chao Ju-kua:

"When (Chinese) merchantmen arrive at that port they cast anchor

at a place (called) the place of Mandarins. That place serves

them as a market, or site where the products of their countries are

exchanged. When a vessel has entered into the port (its captain) offers

presents consisting of white parasols and umbrellas which serve them

for daily use. The traders are obliged to observe these civilities

in order to be able to count on the favor of those gentlemen.

"In order to trade, the savage traders are assembled (the Chinese

call all foreigners savages except the Japanese, Koreans, and people

of Anam.--Blumentritt) and have the goods carried in baskets, and

although the bearers are often unknown, none of the goods are ever

lost or stolen. The savage traders transport these goods to other

islands, and thus eight or nine months pass until they have obtained

other goods of value equivalent to those that have been received

(from the Chinese). This forces the traders of the vessels to delay

their departure, and hence it happens that the vessels that maintain

trade with Ma-yi are the ones that take the longest to return to

their country." * * *

"When foreign traders come to one of their villages, they must not

touch the ground, but must remain aboard their vessel, which is

anchored in the middle of the current, and announce their presence

by beat of drum. Thereupon the savage traders approach in their

light craft, in which they carry cotton, yellow wax, strange cloth,

coconuts, onions, and fine mats, and all those things they offer

for sale in exchange (for the articles of the Chinese). In case of

misunderstanding in the price of the goods, it is necessary to summon

the chief of the traders of that place, so that he may present himself

in person, and arrange the tariff to the satisfaction of all." * * *

[78] The first thing noticed by Pigafetta, who came with Magellan in

1521, on arriving at the first island of the Philippines, Samar, was

the courtesy and kindness of the inhabitants and their commerce. "To

honor our captain," he says, "they conducted him to their boats where

they had their merchandise, which consisted of cloves, cinnamon,

pepper, nutmegs, mace, gold and other things; and they made us

understand by gestures that such articles were to be found in the

islands to which we were going."

Further on he speaks of the vessels and utensils of solid gold that he

found in Butuan, where the people worked mines. He describes the silk

dresses, the daggers with long gold hilts and scabbards of carved wood,

the gold sets of teeth, etc. Among cereals and fruits he mentions rice,

millet, oranges, lemons, panicum, etc.

That the islands maintained relations with neighboring countries and

even with distant ones is proven by the ships from Siam, laden with

gold and slaves, that Magellan found in Cebu. These ships paid certain

duties to the King of the island. In the same year, 1521, the survivors

of Magellan's expedition met the son of the Rajah of Luzon, who,

as captain-general of the Sultan of Borneo and admiral of his fleet,

had conquered for him the great city of Lave (Sarawak?). Might this

captain, who was greatly feared by all his foes, have been the Rajah

Matanda whom the Spaniards afterwards encountered in Tondo in 1570?

In 1539 the warriors of Luzon took part in the formidable contests

of Sumatra, and under the orders of Angi Siry Timor, Rajah of Batta,

conquered and overthrew the terrible Alzadin, Sultan of Atchin,

renowned in the historical annals of the Far East. (Marsden, Hist. of

Sumatra, Chap. XX.)

At that time, that sea where float the islands like a set of emeralds

on a paten of bright glass, that sea was everywhere traversed by junks,

paraus, barangays, vintas, vessels swift as shuttles, so large that

they could maintain a hundred rowers on a side (Morga); that sea bore

everywhere commerce, industry, agriculture, by the force of the oars

moved to the sound of warlike songs of the genealogies and achievements

of the Philippine divinities. (Colin, Labor Evangelica, Chap. XV.)

Legaspi's expedition met in Butuan various traders of Luzon with

their boats laden with iron, wax cloths, porcelain, etc. (Gaspar de

San Agustin), plenty of provisions, activity, trade, movement in all

the southern islands.

They arrived at the Island of Cebu, "abounding in provisions, with

mines and washings of gold, and peopled with natives," as Morga says;

"very populous, and at a port frequented by many ships that came

from the islands and kingdoms near India," as Colin says; and even

though they were peacefully received discord soon arose. The city was

taken by force and burned. The fire destroyed the food supplies and

naturally famine broke out in that town of a hundred thousand people,

as the historians say, and among the members of the expedition,

but the neighboring islands quickly relieved the need, thanks to the

abundance they enjoyed. (La Indolencia, Rizal.)

Dr. J. A. Robertson in a note to the English translation of this

work says:

"There is no doubt of the frequency of interisland trade among the

peoples of the Philippines at an early period. Trade was stimulated

by the very fact that the Malay peoples, except those who have been

driven into the mountainous interiors, are by their very nature a

seafaring people. The fact of an interisland traffic is indicative

of a culture above that possessed by a people in the barbarian stage

of culture. Of course, there was considerable Chinese trade as well

throughout the islands."

[79] "Their customary method of trading was by bartering one thing for

another, such as food, cloth, cattle, fowls, lands, houses, fields,

slaves, fishing-grounds, and palm-trees (both nipa and wild). Sometimes

a price intervened, which was paid in gold, as agreed upon, or in metal

bells brought from China. These bells they regard as precious jewels;

they resemble large pans and are very sonorous. They play upon these

at their feasts, and carry them to the war in their boats instead

of drums and other instruments. There are often delays and terms for

certain payments, and bondsmen who intervene and bind themselves, but

always with usurious and excessive profits and interests." (Antonio

de Morga, Sucesos; Bl. and Rb., Vol. 16, p. 128.)

[80] "The natives are free to move from one island to another, and from

one province to another, and pay their tribute for that year in which

they move and change their residence in the place to which they move;

and to move from a Christian village that has instruction to another

village possessing it. But on the other hand, they may not move from

a place having instruction to one without it, nor in the same village

from one barangay to another, nor from one faction to another. In

this respect, the necessary precautions are made by the government,

and the necessary provisions by the Audiencia, so that this system

may be kept, and so that all annoyances resulting from this moving

of the settled natives of one place to another may be avoided.

"Neither are the natives allowed to go out of their villages for trade,

except by permission of the governor, or of his alcaldes-mayores

and justices, or even of the religious, who most often have been

embarrassed by this, because of the instruction. This is done so that

the natives may not wander about aimlessly when there is no need of it,

away from their homes and settlements." (Morga's Sucesos.--Bl. and Rb.,

Vol. 16, pp. 162-163.)

[81] "17. (Commerce is to be free to all Indians of whatever

jurisdiction they be, throughout the Philippines; and no license is

required, nor can any fee be charged. This will ensure a good supply

of provisions and other necessities, and promote the cultivation of

the land. Good treatment must be shown to them, and their passage

from one place to another facilitated, under penalty of a fine of 100

pesos, and a charge in the residencia of the one who transcends this

order.)" (Ordinances of Good Government by Corcuera, 1642, and Cruzat

y Gongora, 1696.--Bl. and Rb., Vol. 50, p. 203).

[82] "70. (Interprovincial trade of the various products shall not be

prohibited, as such prohibition is in violation of law vii, título

xviii, book iv and law xxv, título i, book vi, in accordance with

which laws trade is to be encouraged. The Indians may cut timber in

accordance with law xiv, título xvii, book iv. The desire to gain,

however, shall not be allowed to cause the Indians to send out of

any province the products necessary for its conservation. This may

be prohibited with the consent of the father minister, from whom the

alcalde-mayor shall ask a certification for his own protection. Without

the certification, he shall not make such prohibition, under penalty

of the penalties of the preceding ordinance. The natives shall pay

no fees for the privilege of interprovincial trade; and, if any

alcalde-mayor violates this, he shall incur a fine of 100 pesos,

besides the responsibility of making good all the loss occasioned

by his action. This shall be a charge in the residencia.) (Raon's

Ordinance, February 26, 1768.--Bl. and Rb., Vol. 50, pp. 250-251.)

This is one of the reasons adduced by Rizal to explain the decay of

agriculture in this country:

"Of no little importance were the hindrances and obstacles that from

the beginning were thrown in the farmers's way by the rulers, who were

influenced by childish fear and saw everywhere signs of conspiracies

and uprisings. The natives were not allowed to go to their labors,

that is, their farms, without permission of the governor, or of his

agents and officers and even of the priests as Morga says. Those who

know the administrative slackness and confusion in a country where

the officials work scarcely two hours a day; those who know the

cost of going to and returning from the capital to obtain a permit;

those who are aware of the petty retaliations of the little tyrants

will well understand how with this crude arrangement it is possible

to have the most absurd agriculture. True it is that for some time

this absurdity, which would be ludicrous had it not been so serious,

has disappeared; but even if the words have gone out of use other

facts and other provisions have replaced them. The Moro pirate has

disappeared but there remains the outlaw who infests the fields and

waylays the farmer to hold him for ransom. Now then, the government,

which has a constant fear of the people, denies to the farmers even

the use of a shotgun, or if it does allow it does so very grudgingly

and withdraws it at pleasure; whence it results with the laborer,

who, thanks to his means of defense, plants his crops and invests

his meager fortune in the furrows that he has so laboriously opened,

that when his crop matures, it occurs to the government, which is

impotent to suppress brigandage, to deprive him of his weapon;

and then, without defense and without security he is reduced to

inaction and abandons his field, his work, and takes to gambling as

the best means of securing a livelihood. The green cloth is under

the protection of the government, it is safer! A mournful counselor

is fear, for it not only causes weakness but also in casting aside

the weapons strengthens the very persecutor!"--(La Indolencia.)

[83] There were other earlier decrees to the same effect as the

following:

"6. (Alcaldes-mayor and corregidors are not to accept any presents,

even of food, during the term of their office, as their hands

will be bound thereby. They must pay a just price for what they

purchase. During the term of their office they are not to purchase a

ranch or any lands in the territory of their jurisdiction; neither are

their secretaries or alguacils-mayor to buy them: for many evils follow

therefrom. They are to build no sailing craft under any consideration,

'under penalty of loss thereof and two hundred pesos, applied half to

fines for the treasury and fortifications, because of the great harm

caused to the natives by such constructions. For when you need any

vessel, you can charter one.' Likewise they are forbidden to engage

in any trade with the natives and citizens of their jurisdiction,

either directly or through agents.") (Ordinances of Good Government,

by Corcuera, 1642.--Bl. and Rb., Vol. 50, p. 195.)

[84] "106. The chief aim of the alcaldes-mayor, corregidors, and

assistants, is trade. They buy up by wholesale the products of the

land, especially rice and other food supplies, exactly as is said above

concerning the religious of certain curacies, and their interpreters

and helpers.

"111. It is not advantageous for these alcaldes-mayor and corregidors,

or their assistants or friends, to receive the royal collections,

for they perpetrate the numberless frauds and cheats, both against

the royal treasury and against the Indians; and there is no remedy for

this, as they themselves administer justice. They hold the collections

in their possession for a long time, trading with them, and the royal

treasury is the loser." (Report of Conditions in the Philippines,

by Antonio de Morga; Bl. and Rb., Vol. 10, pp. 94-95.)

Referring to the religious men, Morga says in the same report:

"2. They trade and make a profit in their districts, from rice, wax,

wine, gold, boats, fowls, cloth, and deerskins, to the great detriment

of the Indians, as well as that of the entire country.

"3. They deal openly in merchandise of the above-mentioned articles,

as well as in those of China, in the trade with Nueva España."

"Before the governor Don Gonzalo Ronquillo came, there were not more

than three or four alcaldes-mayor in all these islands; but now there

are sixteen and most of them are men who came with him. As they came

poor, and as the salaries are small, they have taken the Indians--as

all affirm, and it is common talk--at the time for harvesting rice;

and they buy up all other provisions, and many profit by selling them

again. In this way everything has become dear, because, as they have

forbidden the Indians to trade and traffic, they sell at whatever

price they wish. Formerly the Indians brought their products to the

gates, and sold it at very low prices; for they are satisfied with

very little gain, which is not true of the Spaniards." (Affairs in the

Philippine Islands, Fray Domingo de Salazar. (Manila, 1593).--Bl. and

Rb., Vol. 5, p. 217.)

[85] Rizal, La Indolencia.--"We will not cite our own experiences,

for aside from the fact that we do not know which to select, critical

persons may reproach us with partiality; neither will we cite those

of other Filipinos who write in the newspapers; but we shall confine

ourselves to translating the words of a modern French traveler who

was in the Philippines for a long time:

"'The good curate,' he says with reference to the rosy picture a

friar had given him of the Philippines, 'had not told me about the

governor, the foremost official of the district, who was too much

taken up with the ideal of getting rich to have time to tyrannize over

his docile subjects; the governor, charged with ruling the country

and collecting the various taxes in the government's name, devoted

himself almost wholly to trade; in his hands the high and noble

functions he performs are nothing more than instruments of gain. He

monopolizes all the business and instead of developing on his part

the love of work, instead of stimulating the too natural indolence

of the natives, he with abuse of his powers thinks only of destroying

all competition that may trouble him or attempt to participate in his

profits. It matters little to him that the country is impoverished,

without cultivation, without commerce, without industry, just so the

governor is quickly enriched!"

[86] Resultados del Desarrollo Económico de Filipinas; in "Revista

Económica," November, 1912:

"In imposing a tax payable in articles of food or dress, the

foundations of the Philippine industry were unwittingly laid. It is

natural for a person manufacturing a piece of cloth for the purpose

of paying tribute with it to have an interest in making another like

piece to sell or to exchange for some other needed object. At the same

time, as the encomendero and alcaldes mayores engaged in trade sold

the articles received as tribute, a market for industrial products

was in this wise created which provoked a demand for such merchandise."

[87] Azcarraga, La Libertad de Comercio de Filipinas, p. 40.

"To this abundance and fertility was added the proximity of China,

India, Japan, Malacca, and Maluco. From China they not only began to

ship their riches in silks and glazed earthenware, as soon as they

learned of our wealth of four and eight real pieces: * * *." (Relación

de las Islas Filipinas, Pedro Chirino, S. J.; Roma, 1604.--Bl. and Rb.,

Vol. 12, p. 191.)

[88] Morga's Sucesos.--Bl. and Rb., Vol. 16, p. 176.

[89] "These vessels come laden with merchandise, and bring wealthy

merchants who own ships, and servants and factors of other merchants

who remain in China. They leave China with the permission and leave of

the Chinese viceroys and mandarins. The merchandise that they generally

bring and sell to the Spaniards consists of raw silk in bundles, of

the fineness of two strands ("dos cabezas"), and other silk of poorer

quality; fine untwisted silk, white and of all colors, wound in small

skeins; quantities of velvets, some plain, and some embroidered in

all sorts of figures, colors, and fashions--others with body of gold,

and embroidered with gold; woven stuffs and brocades, of gold and

silver upon silk of various colors and patterns; quantities of gold

and silver thread in skeins over thread and silk--but the glitter

of all the gold and silver is false, and only on paper; damasks,

satins, taffetans, gorvaranes, picotes (coarse stuff made of goat's

hair, or a glossy silk stuff; probably the latter is intended in

the text. Gorvaran or gorgoran is a sort of silk grogram), and other

cloths of all colors, some finer and better than others; a quantity

of linen made from grass, called 'lencensuelo' (handkerchief). (This

fabric is now called Piña); and white cotton cloth of different kinds

and qualities, for all uses. They also bring musk, benzoin, and ivory;

many bed ornaments, hangings, coverlets, and tapestries of embroidered

velvet; damask and gorvaran of different shades; tablecloths, cushions,

and carpets; horse-trappings of the same stuff, and embroidered with

glass beads and seed-pearls; also some pearls and rubies, sapphires

and crystal-stones; metal basins, copper kettles, and other copper and

cast-iron pots; quantities of all sorts of nails, sheet-iron, tin and

lead; saltpetre and gunpowder. They supply the Spaniards with wheat

flour; preserves made of orange, peach, 'scorzonera,' pear, nutmeg,

and ginger, and other fruits of China; salt pork and other salt meats;

live fowls of good breed, and very fine capons; quantities of green

fruit, oranges of all kinds; excellent chestnuts, walnuts, pears, and

'chicueyes' (both green and dried, a delicious fruit); quantities of

fine thread of all kinds, needles, and knick-knacks; little boxes and

writing-cases; beds, tables, chairs, and gilded benches, painted in

many figures and patterns. They bring domestic buffaloes; geese that

resemble swans; horses, some mules and asses; even caged birds, some

of which talk, while others sing, and they make them play innumerable

tricks. The Chinese furnish numberless other gewgaws and ornaments

of little value and worth, which are esteemed among the Spaniards;

besides a quantity of fine crockery of all kinds; canganes, (this

must be the cloth and not the porcelain of Kaga, which even today

is so highly esteemed.--Rizal), sines, and black and blue robes;

'tacley,' which are beads of all kinds; strings of cornelians, and

other beads and precious stones of all colors; pepper and other spices;

and rarities--which, did I refer to them all, I would never finish,

nor have sufficient paper for it." (Ibid., pp. 178-180.)

[90] "They also bring some fine woven silk goods of mixed colors;

beautiful and finely-decorated screens done in oil and gilt; all kinds

of cutlery; many suits of armor, spears, catans, and other weapons,

all finely wrought; writing cases, boxes and small cases of wood,

japanned and curiously marked; other pretty gewgaws; excellent fresh

pears; barrels and casks of good salt tunny; cages of sweet-voiced

larks, called "fimbaros;" and other trifles." (Ibid., p. 183.)

[91] "* * * They take merchandise consisting of spices--cloves,

cinnamon, and pepper; slaves, both black and Cafres; cotton cloth

of all sorts, fine muslins (caniquies), linens, gauzes, rambuties,

and other delicate and precious cloths; amber, and ivory; cloths edged

with pita, for use as bed covers; hangings, and rich counterpanes from

Vengala (Bengal), Cochin, and other countries; many gilt articles

and curiosities; jewels of diamonds, rubies, sapphires, topazes,

balas-rubies, and other precious stones, both set and loose; many

trinkets and ornaments from India; wine, raisins, and almonds;

delicious preserves, and other fruits brought from Portugal and

prepared in Goa; carpets and tapestries from Persia and Turquia, made

of fine silks and wools; beds, writing-cases, parlor-chairs, and other

finely-guilded furniture, made in Macao; needle-work in colors and

in white, of chain-lace and royal point lace, and other fancy-work

of great beauty and perfection. Purchases of all the above are made

in Manila, and paid in reals and gold. The vessels return in January

with the brisas, which is their favorite monsoon. They carry to Maluco

provisions of rice and wine, crockery-ware, and other wares needed

there; while to Malacca they take only the gold or money, besides a

few special trinkets and curiosities from España, and emeralds. The

royal duties are not collected from these vessels." (Morga's Sucesos,

1609.--Bl. and Rb., Vol. 16, pp. 184-185.)

[92] Ibid., pp. 185-186.

[93] Ibid., p. 186.

[94] "All of these things (referring to the trade of the Philippines)

make life in that region pleasant and an object of desire to men; and

indeed it seems a copy of that Tyre so extolled by Ezequiel." (Relación

de las Islas Filipinas, Pedro Chirino.--Bl. and Rb., Vol. 13, p. 192.)

"The capital of our colony was, therefore, a few years after the

conquest, an emporium of wealth which, by its commercial activity,

gained in those seas the title of Pearl of the Orient." (La Libertad

de Comercio, Azcarraga, p. 41.)

"The commerce of these islands began with their second discovery and

the first settlement, which was in the year 1565. However, it was at

the first scanty and of little weight, until during the government

of Guido de Labazarris, in the year 1576, the trade of China was

introduced, and with it considerable profits, which extended it freely

to Nueva España, Guatimala, Tierrafirme, and Perú, by a royal decree

of April 14, 1579." (Informatory Memorial addressed to the king, Juan

Grau y Monfalcon; Madrid, 1637.--Bl. and Rb., Vol. 27, pp. 157-158.)

[95] "For thirty years after the conquest the commerce of the

islands was unrestricted and their prosperity advanced with great

rapidity." (Historical Introduction, E. G. Bourne.--Bl. and Rb.,

Vol. 1, p. 61.)

"As for the second point, the amount of the commerce, this was formerly

without any limitation; and during the time (which was short) while

that condition lasted the islands acquired what strength and wealth

and grandeur they now possess." (Juan Grau y Monfalcón in Extracto

Historial by Antonio Alvarez de Abreu; Madrid, 1736.--Bl. and Rb.,

Vol. 30, p. 50.)

This is the point of view taken by Azcarraga in his La Libertad de

Comercio en Filipinas.

[96] "In 1603, that is, when our colony had only thirty-two years

of existence, there were already in the capital 25,000 Chinese,

and the number of Japanese must have been also quite considerable,

since they formed a colony which occupied the barrios of San Anton

and San Miguel, at present inhabited by natives and a great portion

of the white population." (Azcarraga, La Libertad de Comercio, p. 44.)

[97] "37. Accordingly the commerce of this city is extensive, rich,

and unusually profitable; for it is carried on by all these Chinese

and their ships, with those of all the islands above mentioned and

of Tonquin, Cochinchina, Camboja, and Siam--four separate kingdoms,

which lie opposite these islands on the continent of Great China--and

of the gulfs and the numberless kingdoms of Eastern India, Persia,

Bengala, and Ceilan, when there are no wars; and of the empire and

kingdom of Xapon. The diversity of the peoples, therefore, who are

seen in Manila and its environs is the greatest in the world; for

these include men from all kingdoms and nations--España, Francia,

Inglaterra, Italia, Flandes, Alemania, Dinamarca, Suecia, Polonia,

Moscobia; people from all the Indias, both eastern and western; and

Turks, Greeks, Moros, Persians, Tartars, Chinese, Japanese, Africans,

and Asiatics. And hardly is there in the four quarters of the world

a kingdom, province, or nation which has not representatives here, on

account of the voyages that are made hither from all directions--east,

west, north, and south." Description of Filipinas Islands, Bartholomé

de Letona, O. S. F.; La Puebla, Mexico, 1662.--Bl. and Rb., Vol. 36,

p. 205.)

[98] "Number 96. Distinctions in products from the islands, and their

qualities with respect to those of España.

"All these products that are trafficked from the islands are

divided into six (sic) classes. The first is of silk, in skeins,

thread, and trama. The second, the silk textiles. The third, the

cotton textiles. The fourth, the products of the islands. The fifth,

other small wares and articles that are brought. Of these, the last

class amounts to but little, and is not harmful to the commerce

of España, as it is composed of rarities and foreign products. The

fourth class, namely, that of the products of the islands, by that

very fact ought to be exported--a claim that is founded on justice;

since it is not usual to prohibit to any province its own trade, and

the exportation of its products wherever they may have a sale, even

though foreign commerce be denied to it. Besides, this sort has the

characteristic of the third, namely, that these wares are so cheap

that their like cannot be supplied from España, as has been said,

on account of the great difference of their prices. (In the margin:

"In number 95.") Hence, the wares of these kingdoms would not be

used any more, even did those of the islands fail; nor less, even if

there were an over-supply. For the Indians and negroes care only for

the linens of China and Filipinas, and, if they do not have them,

they get along without them; for they have no wealth to give eight

reals for what costs them one and one-half reals. One thousand bales

of linen which is shipped from Sevilla in each trading fleet always

finds a sale, and no more can be carried (to Nueva España)--because

that would create a lack in España, and it would, moreover, be too

advantageous to the foreigners, to whom almost all this commodity

belongs. Two thousand bales of cotton textiles exported from Manila

are also consumed (there); and the fact that there is less or more does

not cause any considerable loss in the linen made from flax and hemp,

nor does it involve much money; for the two thousand bales of cotton

are worth one hundred and fifty thousand pesos, while one thousand of

fine linen are worth more than one million." (Informatory Memorial

addressed to the King, Juan Grau y Monfalcon, Procurator General;

Madrid, 1637.--Bl. and Rb., Vol. 27, pp. 200-201.)

[99] Ibid., pp. 98-104.

[100] Ibid., pp. 115-116.

[101] Ibid., pp. 120.

[102] Ibid., pp. 186-197.

[103] Ibid., p. 158.

[104] Ibid.

[105] Recopilación de Leyes, Lib. IX, Tit. XXXV, Ley VI. In Bl. and

Rb., Vol. 17, pp. 30-31. Jan. 11, 1593.

[106] Ibid., Ley XV.--Bl. and Rb., Vol. 17, pp. 31-32. Jan. 11, 1593.

[107] Ibid., Ley XXXIV.--Bl.and Rb., Vol. 17, p. 32. Jan. 11, 1593.

[108] Ibid., Ley LXVIII.--Bl. and Rb., Vol. 17, p. 33. Jan. 11, 1593.

[109] La Libertad de Comercio, p. 49.

[110] Recopilación, Lib IX, Tit. XXXV, Leyes LXXIV, LXXV, and

LXXVI.--Bl. and Rb., Vol. 17, pp. 42-44.

[111] Pedro Quiroga.

[112] Recopilación, ibid., Ley LXXVIII.--Bl. and Rb., Vol. 17,

pp. 44-45.

[113] As to the effect of these restrictions Azcarraga says: "* * *

thus, at the end of that century, there was nothing but poverty and

discontent in the city; the white population had hardly increased;

commerce, confined within the narrow sphere of periodic voyages

to Acapulco, was languishing, without attempting to engage in any

other kind of traffic; and poverty was reflected even in the very

troops stationed in the city, who did duty unshod and without uniform

(camisa), frequently committing robberies at the Chinese stores. * * *"

(La Libertad, p. 54.)

[114] Extracto Historial, Antonio Alvarez de Abreu.--Bl. and Rb.,

Vol. 44, p. 231.

[115] Ibid., p. 236.

[116] Ibid., p. 232.

[117] Ibid., pp. 256-258.

Also Azcarraga, La Libertad, pp. 58-59.

[118] Royal decree of October 27, 1720, enforcing that of 1718,

provides further that: "The values of the lading which the said ships

are to carry from the Philippines to the port of Acapulco may be up

to the amount of 300,000 pesos, which must come invested strictly

and solely in the following kinds of merchandise: gold, cinnamon,

elephants, wax, porcelain, cloves, pepper, cambayas, and linens

woven with colors (lienzos pintados), chitas, chintzes, gauzes,

lampotes, Hilocos blankets, silk floss and raw silk spun, cordage,

and other commodities which are not silks." These ships are prohibited

from carrying silken fabrics, "satins, pitiflores, velvets, damasks,

Pekin silks (Pequines), sayasayas, brocades, plain satins, grograms,

taffetas; silver and gold brocades; embroidered pieces of silk stuff

for (covers of) beds, the (hangings for) drawing-rooms (estrados),

and women's petticoats; silken gauzes flowered with gold and silver;

pattern pieces for petticoats, figured or embroidered; dressing-gowns,

chimones, or made-up garments; hose, ribbons, or handkerchiefs;

or any fabric which contains silk." (Commerce in the Philippines

with Nueva España, 1640-1736, by Antonio Alvarez de Abreu; Madrid,

1736. (From Extracto Historial.--Bl. and Rb., Vol. 44, pp. 266-268.)

[119] Ibid., p. 306.

[120] Extracto Historial, Antonio Alvarez de Abreu.--Bl. and Rb.,

Vol. 45, pp. 57-59.

[121] For a detailed list of the goods sent to Mexico, and as to what

was done with them there, see Informatory Memorial addressed to the

King, Juan Grau y Monfalcon, 1637.--Bl. and Rb., Vol. 27, pp. 198-200.

"Number 95. Trade of the islands necessary in Nueva España, because

of their goods.

"In regard to the first part, which pertain to the merchandise,

the trade of the Filipinas is so necessary today in Nueva España,

that the latter country finds it as difficult as do the islands to

get along without that trade; and its lack cannot be supplied with

merchandise from these kingdoms. The wares taken to Acapulco are

plain and figured velvets, satins, and damasks; grograms, taffetas,

and picotes; headdresses and stockings; silk, loose and twisted, in

skeins, that reeled on spindles, and woven; thread; tramas, plushes,

and other silk stuffs and textiles. Of cotton, there are sinavafas,

fine glazed buckrams (bocacies), glazed linen (olandilla), fine

muslins (canequies), and semianas; and of cotton and silk, beds,

curtains, coverlets, quilts, and other pieces. (They also carry)

civet, musk, and amber; gold and pearls; crockery-ware, cabinets,

and articles made of wood and other things; and the products of the

islands themselves, of which mention has been made (in the margin:

"In number 15"). But the bulk of the commerce is reduced to the silk

and cotton textiles; for there is but little else that is rare or

elegant, or that has much export. From the skeined silk, and the silk

thread, and trama are manufactured in Nueva España velvets, veils,

headdresses, passementeries, and many taffetas, which were taken to

Perú when there were ships that went to Callao, and to other parts

of the Indias--where the black, brown, and silver-colored goods that

are sent from Sevilla do not arrive in good shape, because the sea

rots them. It is known that the skein silk of China is more even and

elegant for delicate and smooth fabrics than is the Misteca which is

produced in that kingdom; besides that, there is less of the latter

kind than is necessary in the country. By this trade and manufacture,

more than fourteen thousand persons support themselves in Mexico, La

Puebla, and Antequera, by their looms, the whole thing being approved

by royal decrees. Of the cotton textiles, linens (lienzos) are used

in Nueva España more than any other stuff, as they are so cheap that

they sell for one and one-half or two reals per vara. Therefore, they

are desired by the Indians and negroes; and when these are lacking,

even though there should be an over-supply of the linens of Europa,

they do not want them or use them, as those are dear and not so much

used by them; and they get along with their own cloths from Campeche

or La Guasteca, and others that they weave."

[122] "The basis of it was, and is, the funds called "Obras Pías"

(Pious Works). These are funds under various denominations, whose

origin was the piety of well-meaning Spaniards, who dying rich have

bequeathed large sums for the purpose of lending to deserving traders

to commerce or continue their career with. The administration of

these is confided to various religious and charitable institutions,

or to civil associations--the trustees forming a board, at which

the sums to be lent, etc., are determined. Their statutes differ

in many unessential points; but their general tenor is the same,

viz., that sums not exceeding two-thirds of the fund shall be lent on

respondentia at certain rates of interest, which are fixed according

to the risk of the voyages; and these, when repaid, shall be added,

principal and interest, to the original fund. The interests are 25 per

cent. to Acapulco, 15 to Bengal, and so in proportion. The total of

the capitals of these establishments (there are 12 or 14 of them),

amounted to about three millions and a half of dollars in 1820,

of which about two millions are due to the funds on various risks,

principally those of New Spain: of this the major part is considered

as lost by those best qualified to judge of the subject.

"The principal employ of these funds has been in the commerce to

Acapulco; and from the facility with which capital was procured,

the excessive gambling spirit which this introduced, as well as the

system of mutual accommodations from the trustees of different funds,

and the utter absence of the wholesome restraint of public examinations

of their accounts, it has resulted that more harm than good has been

done by these establishments. The original intentions are entirely

perverted, a few small sums being lent to young adventurers (when they

have powerful friends), but far the greatest part is employed by the

trustees themselves under the name of a relation or friend." (Remarks

on the Philippine Islands, and their capital Manila, 1819-1822,

by an Englishman.--Bl. and Rb., Vol. 51, pp. 148-149.)

[123] Zuñiga, Estadismo de las Islas Filipinas.

Historia General de Filipinas, José Montero y Vidal, Chapter XXVIII.

[124] It is represented that the seamen are allowed to carry each

30 pesos' worth of goods as a private investment, in order to

encourage Spaniards to enter the marine service; but this ought

to be increased to 300 pesos (the allowance made to the men on the

fleets that go to the Indias), for more Spaniards are needed on the

Acapulco trade-route--hardly one-third of the men on the galleon

being of Spanish birth, the rest being Indians--and on the rivera of

Cavite." Extracto Historial, Antonio Alvarez Abreu, 1736.--Bl. and Rb.,

Vol. 44, Pp. 307-308.

[125] Azcarraga, La Libertad, pp. 81-95.

[126] "This trade and commerce is so great and profitable, and

easy to control--for it only lasts three months in the year, from

the time of the arrival of the ships with their merchandise, until

those vessels that go to Nueva España take that merchandise--that

the Spaniards do not apply themselves to, or engage in, any other

industry. Consequently, there is no husbandry or field-labor worthy of

consideration. Neither do the Spaniards work the gold mines or placers,

which are numerous. They do not engage in many other industries that

they could turn to with great profit, if the Chinese trade should fail

them. That trade has been very hurtful and prejudicial in this respect,

as well as for the occupations and farm industries in which the

natives used to engage. Now the latter are abandoning and forgetting

those labors. Besides, there is the great harm and loss resulting

from the immense amount of silver that passes annually by this way

(of the trade), into the possession of infidels, which can never,

by any way, return into the possession of the Spaniards." (Morga's

Sucesos.--Bl. and Rb. Vol. 16, p. 187).

"When, without risking any capital of his own, the merchant might

thus share the enormous profits of this trade, with no more exertion

than signing the invoices and letters (they were written by Indian

clerks), and receiving the treasure on the return of the vessel, it

is not surprising that for nearly two centuries they neglected all

the other commercial advantages which surrounded them, or that such

a commerce produced such merchants; the history of it and of them for

that period may be confined to a few words:--they were agents of the

merchants of Madras and Bengal, receiving and shipping their goods,

and returning their proceeds, while their profits were confined to

a large commission on them." (Remarks on the Philippine Islands and

on their capital Manila, 1819-1822, by an Englishman.--Bl. and Rb.,

Vol. 51, p. 150.)

[127] "... This I say, then, Sire, that it is a most pitiable thing

that there is not a man in all these Philippine Islands--Spaniard, or

of any other nation--saving some religious, who make their principal

aim and intent the conversion of these heathen, or the increase of

the Christian faith; but they are only moved by their own interests

and seek to enrich themselves, and if it happened that the welfare

of the natives was an obstacle to this they would not hesitate,

if they could, to kill them all in exchange for their temporal

profit. And since this is so, what can your Majesty expect will

happen if this continues? From this inordinate greed arises the

violation of your Majesty's decrees and mandates, as everyone is

a merchant and trader--and none more so than the governor, who has

this year brought ruin upon the country. There comes each year from

Nueva España a million in money, contrary to the mandate of your

Majesty, all of which passes on to the heathen of China. From here,

in violation of your Majesty's decrees, cargoes are loaded for the

Peruvians and the merchants of Mexico, without leaving room for those

of this country--especially the poor, who are unable to secure any

interest therein except for a wretched bundle which is allowed them

as a cargo. If I were to go into the multitude of evils which are

connected with this, I should have to proceed ad infinitum." (Letters

from the archbishop of Manila to Felipe II; Ignacio de Santibañez;

Manila, June 24 and 26, (1598);--Bl and Rb. Vol 10, p. 145.)

[128] Azcarraga: La Libertad, p. 68.

[129] "By this system for two centuries the South American market for

manufactures was reserved exclusively for Spain, but the protection did

not prevent Spanish industry from decay and did retard the well-being

and progress of South America. Between Mexico and the Philippines a

limited trade was allowed, the profits of which were the perquisites

of the Spaniards living in the Philippines and contributed to the

religious endowments. But this monopoly was of no permanent advantage

to the Spanish residents. It was too much like stock-jobbing, and

sapped all spirit of industry. Zúñiga says that the commerce made a

few rich in a short time and with little labor, but they were very

few; that there were hardly five Spaniards in Manila worth $100,000,

nor a hundred worth $40,000, the rest either lived on the King's pay

or in poverty. 'Every morning one could see on the streets of Manila,

in greatest poverty and asking alms, the sons of men who had made a

fine show and left much money, which their sons had squandered because

they had not been well trained in youth.' The great possibilities

of Manila as an entrepôt of the Asiatic trade were unrealized; for

although the city enjoyed open trade with the Chinese, Japanese,

and other orientals, it was denied to Europeans and the growth of

that conducted by the Chinese and others was always obstructed by

the lack of return cargoes owing to the limitations placed upon the

trade with America and to the disinclination of the Filipinos to

work to produce more than was enough to insure them a comfortable

living and pay their tributes. That the system was detrimental to the

economic progress of the islands was always obvious and its evils were

repeatedly demonstrated by Spanish officials. Further it was not only

detrimental to the prosperity of the islands but it obstructed the

development of Mexico." (Historical Introduction, by Edward Gaylord

Bourne.--Bl. and Rb., Vol. 1, pp. 67-68.)

[130] "Trade between America and the Far East all passed for a time

through the port of Manila. This commerce was greatly desired by the

Spanish colonists of Mexico, Perú, and Chile, but the selfish and

rapacious merchants of Spain so influenced the policy of the mother

country as to throttle this trading and prevent for more than two

hundred years the legitimate development of the islands. From the

early part of the seventeenth century until 1837 the Philippines

were in the grasp of a protective monopoly, which not only prevented

the productive development of the soil, but kept the Filipinos down

to those necessarily restricted numbers which attend a population

that raises nothing in excess of its daily needs. If there is one

thing to be learned from this and every other study of increase of

population in a fertile and tropical country it is that population

increases in exact proportion to the agricultural production and

export." (Dr. D. P. Barrows, in Philippine Census, 1903, Vol. 1,

p. 247.)

[131] "* * * All thrifty activity was regarded as despicable. No

trader had a seat in the Cortes of Aragon. As late as 1781 the

Academy of Madrid was obliged to offer as the subject for a prize

essay the proposition that there was nothing derogatory in the useful

arts. Every tradesman and manufacturer sought only to make enough

money to enable him to live on the interest of it or to establish a

trust fund for his family. If he was successful he either entered a

cloister or went to another province in order to pass for a noble. In

Cervantes we find the maxim: 'Whoever wishes to make his fortune

seeks the church, the sea (i. e., service in America), or the king's

house.' The highest ambition of the nation in its golden age was to

be to Europe just what the nobility, the clergy, and the army were

to single nations. Consequently there was an enormous preponderance

of personal service in the industrial organism, and much of this

was purely for ostentation. Nowhere in the world were there so many

nobles, so many officers, civil and military, so many lawyers and

clerks, priests and monks, so many students and school-boys, with

their servants. But as truly, nowhere in the world were there so

many beggars and vagabonds." (The Spanish Colonial System, by Wilhelm

Roscher, pp. 3-4.)

[132] Azcarraga, pp. 117-118.

[133] See Bl. and Rb., Vol. 52, pp. 307-322. Also Vidal, Historia

General de Filipinas, Vol. 2, pp. 285-297; Mas, Informe Sobre el

Estado de las Islas Filipinas en 1842, part II, pp. 28-31; and the

Boletin de la Sociedad Económica for the different years.

[134] Jagor, Travels in the Philippines, chapter 25.

Memoria Sobre el Desestanco del Tabaco en las Islas Filipinas, José

Jimeno Agius, Manila, 1871.

[135] "* * * at the time of Basco there were in Camarines four and

a half million mulberry trees, and this was one of the results of

the industrious administration of that famous governor, and of the

first patriotic attempts of the Economic Society, so ably aided by

the alcalde mayor, Don Martin Ballesteros, who later became factor of

the Company in said province. At the request of the Society the first

seeds were sent to Manila in 1780 by an Augustinian by the name of

Fray Pedro Galiano; the director of the Company decided at all cost

to stimulate this production, by advancing big sums * * (and) thought

of introducing Chinese laborers for this purpose, and even proposed to

bring over families from Granada, Valencia, and Murcia, well acquainted

with this kind of industry; and, according to report of those agents,

the first crops gave good results because of the continuous sprouting

of the leaves, possibly the harvesting of even nine crops in each

year. They were assured too, that according to Chinese experts, the

silk of the country was inferior to that of Nanking, but very much

superior to that of Canton." (Azcarraga, p. 133.)

[136] "The cultivation of the indigo had already been encouraged

and improved by another Augustinian, Fray Matias Octavo, with the

generous aid of a worthy merchant of Manila, Don Diego Garcia Herreros,

applying the method then used at Guatemala; (thus) it was possible

in 1784 to make a shipment, by the warship Asuncion, which found a

good market in Cadiz. With these antecedents, the Company did not

have to do much to exploit this product, and limited itself to making

advances to the farmers for the purchase of implements needed * * *,

and buying everything that was offered for sale; thus in 1786 it was

able to export one hundred and forty quintals of this valuable article,

and double that in 1788." (Ibid., pp. 133-134).

[137] "With the same eagerness the Company devoted itself to promote

the cultivation of the sugar cane, and very soon began to reap the

harvest of its well-calculated attempts, and shipped for the Peninsula

in 1786 eight hundred and sixty arrobas, and in 1788, nine thousand

six hundred and sixty three arrobas for the same place, and for China

and India; and thus this article continued to progress, always heading

the list of exports from the country, since in a memorial or report

sent to the king in 1790 by Governor Don Felix Berenguer de Marquina,

it is stated that the amount of sugar exported the year before was

between forty and fifty thousand piculs." (Ibid., pp. 134-135.)

[138] Azcarraga says that upon cotton, which--at different times,

especially during the revolutionary war in the United States--had

been recommended to the chiefs of the provinces as an article to

whose cultivation they should especially devote themselves, the

company placed a great deal of hope, because of its good quality;

it could compete with what the English exported from the coasts of

Malabar, and thus, by promoting its cultivation in great scale, at

the same time that the projected textile factories of the country

would be supplied with raw materials, it would supply the constant

demand of China; these expectations were confirmed by the good sale

which the first shipment of one hundred and fifty sacks to China had,

and thus the directors adopted this article as the chief commodity

for its trade. (Ibid.)

[139] Text of decree is given in Montero y Vidal, Historia, Vol. 2,

pp. 302-303.

[140] Estadismo, Vol. 1, p. 273.

[141] Azcarraga, Chapters 9, 10, and 11; Mas, Part II, pp. 31-35;

Vidal, Historia, Vol. II, pp. 297-307.

[142] In this way a new element was introduced which was essential

for economic development: capital. Up to that time money had

been scarce and it was all derived from local sources: owing to

the conditions to which we have heretofore referred our community

was obliged to furnish its own capital. It was necessarily small,

first, on account of the slight productive forces, second, because

of the easy destruction of acquired property, which was dissipated

in fires and storms principally. In those first days of our history,

the preservation and transmission from one generation to another

of created and inherited wealth was, as it is even now, a problem

almost impossible of solution. The general construction of houses,

manufactured from such weak and transient elements as cane and nipa,

does not leave us in a condition to conserve: it leaves us rather

in a condition of easy destruction, as may be readily understood. So

it is, that we get the benefit of only a small part of the property

acquired by the generations that have gone before us. Where will

you find even the trace of so many millions of cane and nipa houses

which have absorbed the money earned by past generations? Destroyed

by fire and storms. In their destruction was also involved all the

industrial production, all the labor converted into capital represented

by furniture, books, manuscripts, cloths, jewelry, coins, articles, of

practical utility, religious, artistic and every sort of objects which

ran the same precarious risk and had the same ephemeral existence as

our flimsy cane and nipa houses."--Results of the Economic Development

of the Philippines.

[143] "The taking of Manila in 1762 by the English had subsequently

great influence on our future. They, during the occupation of Manila,

had an opportunity to know the natural resources of this country,

the condition of abandonment and neglect of agriculture and commerce,

and the contempt that was felt for them, and realize the possibilities

that existed for material development as understood by the British. As

a result of such contact with the Filipinos English commerce was able

to understand the conditions of our archipelago until then entirely

unknown, owing to the conditions of their tutelar sequestration,

and, on their part, the authorities and prominent persons of Manila

had occasion to observe, during the short period of the occupation

of Manila, what the English were who had been reputed as the enemies

par excellence of the Roman Catholic Apostolic religion. It is said

that they appropriated to themselves the money that they found in the

treasury, which, on the other hand, we must assume, was found empty,

both because Anda y Salazar took with him what he could find there

to organize the war, and because private persons concealed their

treasure. From whatever source it may have come, either brought by

them as was really the case, or taken from the Filipinos, the fact

was, that in order to maintain themselves, they spent a great deal

of money and placed in movement the dormant activity of all whom they

found within their reach." (Ibid.)

[144] Azcarraga, pp. 151-152; also Mas, under Comercio Exterior, p. 2.

[145] "The first result was the collision of the new arrivals with

the exploiters of the old order, whose peaceful possession of a

livelihood which suited them--because nobody questioned it or disturbed

it--was suddenly threatened by the competition of more active, more

industrious, better prepared and richer individuals, supported by firms

located in the most important centers of the commercial world. In the

same manner as, by arrival of the Spaniards, the old Filipino caciques

were subjected to the Spanish officials, now the caciques who dominated

during the period of tutelar sequestration found themselves immediately

supplanted and converted into something lower than the new caciques of

the economic order. They (the former) understood that such supremacy

would give them (the latter) supremacy in everything. To defend their

position they had recourse to the anti-foreign sentiments of the entire

community; foreigners had always been regarded as the enemies of Spain

and God; they must be the enemies of the Filipinos, too. The crusade

was not new; it had been used before with excellent results at the

time of the English domination. This campaign was hardly started when

the cholera for the first time made its appearance in Manila. Taking

advantage of that event, which was also called providential, the rumor

was started that the foreigners had poisoned the waters of the Pasig,

with the results that in 1820 the people of Manila exterminated the

foreigners who were then residing at the capital." (Tavera, Ibid.)

[146] Le Roy, The Americans in the Philippines, Vol. 1, p. 33,

Diccionario Geográfico-Estadistíco-Historico de las Islas Filipinas,

Manuel Buzeta and Felipe Bravo, (Madrid, 1850-1851).

[147] Bowring, A Visit to the Philippines (London, 1859), p. 301.

[148] Mas, under Comercio Exterior, pp. 28-29; also Azcarraga,

Chapter 13.

[149] "The merchants and even all the residents of Manila during the

epoch of the Acapulco (trade), firmly believed that the interruption

of its voyages would be the infallible and total ruin of the colony,

and that upon them depended even the maintenance of the inhabitants

of the farms. However, experience has demonstrated the error in which

they were." (Mas, Ibid., pp. 2-3.)

After giving a table of imports and exports for 1810, Mas says:

"From this statement it is seen that at that epoch the commerce of the

Philippines was reduced mostly to receiving funds from New Spain, and,

in return, remitting articles of China and India; that the importation

of foreign goods consumed in the Philippines amounted to 900,000 pesos,

and the exportation of the products of the country, such as sugar,

indigo, hide, etc., did not amount to 500,000 pesos. The gains,

therefore, from that traffic, for which Manila was only a port of

exchange, were divided between the merchants who had the monopoly

of the galleon, but the wealth of the territory received but small

advantages from it." (Ibid.)

[150] Mas, Ibid., p. 4.

[151] Azcarraga, p. 18.

[152] An item in the memoir published by the Sociedad Económica de

Amigos del País (Manila, 1860), containing a list of its achievements,

is to the effect that on August 8, 1834, "abacá" was exported for

the first time. (See Bl. and Rb., Vol. 52, p. 317.)

Azcarraga (p. 19) gives the following figures for hemp:

Piculs

exported.

1840 83,790

1845 102,490

1850 123,410

1853 221,518

1857 327,574

1858 412,502

[153] Azcarraga (p. 167) gives the following figures for Iloilo:

Foreign Countries. Manila.

Piculs of Sugar. Piculs of sugar.

1859 9,344 77,488

1860 40,176 72,592

1861 44,256 29,312

1862 102,464 98,912

1863 170,832 80,000

[154] Azcarraga, pp. 168-169.

[155] Jagor, (Spanish edition, Madrid, 1874), p. 255.

[156] "From these dates (referring to the opening of the ports) the

prosperity of the Philippines advanced steadily and rapidly without

interruption until the outbreak of the Philippine revolution six

years ago. To this period is due the propagation of the hemp fields of

Ambos Camarines, Albay, and Sorsogon; the planting of the innumerable

coconut groves; the sugar haciendas of Pampanga and Negros; the tobacco

fields of Cagayan and the Ilocos provinces; the coffee of Batangas,

and the utilization everywhere of the specially adapted soils for

the production of these admirable articles of trade. One thing is to

be noticed, and is important in estimating the future development of

the islands. The money that was invested here was not brought in by

capitalists but was made here. Haciendas arose from small beginnings,

and this continued prosperity apparently suffered no diminution

or check until it was interrupted by the ravages and desolation of

warfare. * * *" (Barrows, Census of the Philippine Islands (1903),

Vol. 1, p. 446.)

[157] Bowring, p. 410.

"The Filipinos gave a proof of their intelligence and of their

aspirations by sending their children to Manila to be educated,

buying furniture, mirrors, articles of luxury for their homes and

persons; buying pianos, carriages, objects imported from the United

States and Europe which came their way, owing to foreign trade. These

articles caused a revelation which produced a revolution in the

social mind, thanks to that veritable revolution of an economic

character which permitted the only possible development--the material

development." (Tavera, Ibid.)

[158] Jagor, ibid., p. 256.

[159] "The needs of commerce, demanded not by the poor but by the

powerful, were attended to; for that reason roads were made, bridges

were built, new highways of communication were opened, public safety

was organized in a more efficient manner, the abuses of the dominators

had greater publicity and, therefore, were fewer and more combated,

the mail service was improved, Spaniards and other Europeans penetrated

into the provinces, the natives themselves were permitted to go from

one pueblo to another and change their residence, and the Filipinos

were able to place themselves in contact with the civilized world,

emerging from their prolonged and harmful sequestration, thanks to

the workings of economic forces." (Tavera, Ibid.)

[160] "During the previous epoch the so-called natural resources

constituting the extractive industries--consisting of the collection of

the spontaneous products of nature--were exploited: whereas freedom of

trade brought about the development of agriculture which had already

been initiated by the Real Compañía. In Ilocos, indigo was made, in

Batangas, Pampanga, Bulacan, Laguna and the Visayas, sugar-cane was

cultivated and sugar made; in Albay abaca was produced. Bigan, Taal,

Balayan, Batangas, Albay, Nueva Caceres, Cebu, Molo, Jaro, Iloilo

began to be covered with solidly constructed buildings; their wealthy

citizens would come to Manila, make purchases, become acquainted with

the great merchants, who entertained them in their quality as customers

whose trade they needed; they visited the Governor-General, who would

receive them according to the position that their money gave them;

they came to know the justices of the Supreme Court, the provincials

of the religious orders; they brushed up, as a result of their contact

with the people of the capital and, on returning to their pueblo,

they took in their hearts and minds the germ of what was subsequently

called, "subversive ideas" and, later still, "filibusterismo."

"The opening of the Suez Canal brought us nearer to Europe, and,

carried along by the current of economical nature, came the ideas

and principles of a political character which did no less than to

revolutionize the ideas predominant in a country which had existed so

completely separated from the nations of the modern world. Already the

"brutes loaded with gold" dared to discuss with their curate, complain

against the alcalde, defend their homes against the misconduct of

the lieutenant or sergeant of the police force; such people were

starting to emancipate themselves insensibly as a consequence of

their economic independence. Their money permitted them effectively

to defend questions involving money first, then, those of a moral

character--they were becoming actually "insolent" according to the

expression of the dominators: in reality, they were beginning to

learn to defend their rights." (Tavera, Ibid.)

[161] For a good discussion of the growth of population since Spanish

conquest down to 1903, see Census of the Philippine Islands, Vol. 1,

pp. 442-445.

[162] This principle is stated as follows: "The beginnings of social

evolution * * * are always to be found in a bountiful environment.

Moreover, density of population follows abundance of food, whether

the supplies are obtained from the soil directly, or indirectly,

in exchange for manufactures; and other things being equal, the

activity and the progress of society depend, within limits, on the

density of population.

A sparse population, scattered over a poor soil, can carry on

production only by primitive methods and on a small scale. It can

have only the most rudimentary division of labor; it cannot have

manufacturing industries, or good roads, or a rapid interchange

of intelligence; all of which, together with a highly developed

industrial organization and a perfect utilization of capital, are

possible to the populations that are relatively dense.

A highly developed political life, too, is found only where population

is compact. Civil liberty means discussion, and discussion is dependent

on the frequent meeting of considerable bodies of men who have varied

interests and who look at life from different points of view. Movements

for the increase of popular freedom have usually started in towns.

Education, religion, art, science, and literature are all dependent on

a certain density of population. Schools, universities, churches, the

daily newspaper, great publishing houses, libraries, and museums come

only when the population per square mile is expressed by more than one

unit, and their decay is one of the first symptoms that population is

declining. * * *."--Franklin H. Giddings, The Principles of Sociology,

(New York, 1911), pp. 366-367.

[163] "These changes show how important it was to establish at

different points, extending over two hundred miles of the Archipelago,

commercial centers, where it was desirable that foreigners should

settle. Without these latter, and the facilities afforded to credit

which hereby ensued, the sudden rise and prosperity of Iloilo would

not have been possible, inasmuch as the mercantile houses in that

capital would have been debarred from trading with unknown planters

in distant provinces, otherwise than for ready money." Jagor, Travels

in the Philippines. (London, 1875), p. 304.

Azcarraga, pp. 168-177; 197-198.

Le Roy, Bibliographical Notes, 1860-1898.--Bl. and Rb., Vol. 52,

pp. 112-114.

[164] Jagor gives credit to the two American houses in the Philippines

for the development of the abacá into an important article of

export. These American houses in the first years sank large sums

of money in advance loans, and were only able to get the business

on a paying basis when, in 1863, they were permitted to establish

warehouses and presses in the provinces at the principal points where

the crop was produced, and to deal directly with the producers. Jagor

(Spanish edition, p. 264); Le Roy, The Americans in the Philippines,

Vol. 1, pp. 33-34.

For an interesting discussion of the struggle between England and

the United States for supremacy in the Philippines, and the role

played by the English banks in that struggle, see a pamphlet entitled

Commercial Progress in the Philippine Islands, by Antonio M. Regidor

and J. Warren T. Mason, (1905).

[165] This prefix does not seem, however, to be genuine in the

language, so that the Chinese have mistaken the first syllable Ta for

their own word (adjective preposed) ta "great", and dropped it with

their usual contempt for foreign nations. But all this is conjectural.

[166] apparently Sanskrit ... some such sound as ... Vaisadja.--Parker

(China, London, 1901.)--C.

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