Philippine progress prior to 1898

V. The Nineteenth Century and Economic Development

Reading edition

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.

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to help the company, all the laws and decrees which prohibited the importation of Oriental cloths into Spain, were repealed, and the products of the Philippines were exempted from all kinds of duties both in Manila and in Spain.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 opening of the ports.

Effects of the opening of the ports.

Conclusion.

Thus is explained why it is that the opening of the Philippines to the outside world caused great social changes.

Piculs exported.

1840 83,790

1845 102,490

1850 123,410

1853 221,518

1857 327,574

1858 412,502

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

Notes in this chapter

Note 1 · Azcarraga, pp. 117–118.Note 2 · 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 I Note 3 · Jagor, Travels in the Philippines, chapter 25. Memoria Sobre el Desestanco del Tabaco en las Islas Filipinas, José Jimeno Agius, Manila, 187 Note 4 · ”* * * 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 industrio Note 5 · “The cultivation of the indigo had already been encouraged and improved by another Augustinian, Fray Matias Octavo, with the generous aid of Note 6 · “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 Note 7 · Azcarraga says that upon cotton, which—at different times, especially during the revolutionary war in the United States—had been recommended Note 8 · Text of decree is given in Montero y Vidal, Historia, Vol. 2, pp. 302–303.Note 9 · Estadismo, Vol. 1, p. 273.Note 10 · Azcarraga, Chapters 9, 10, and 11; Mas, Part II, pp. 31–35; Vidal, Historia, Vol. II, pp. 297–307.Note 11 · 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 Note 12 · “The taking of Manila in 1762 by the English had subsequently great influence on our future. They, during the occupation of Manila, had an o Note 13 · Azcarraga, pp. 151–152; also Mas, under Comercio Exterior, p. 2.Note 14 · “The first result was the collision of the new arrivals with the exploiters of the old order, whose peaceful possession of a livelihood whic Note 15 · Le Roy, The Americans in the Philippines, Vol. 1, p. 33, Diccionario Geográfico-Estadistíco-Historico de las Islas Filipinas, Manuel Buzeta Note 16 · Bowring, A Visit to the Philippines (London, 1859), p. 301.Note 17 · Mas, under Comercio Exterior, pp. 28–29; also Azcarraga, Chapter 13.Note 18 · “The merchants and even all the residents of Manila during the epoch of the Acapulco (trade), firmly believed that the interruption of its v Note 19 · Mas, Ibid., p. 4.Note 20 · Azcarraga, p. 18.Note 21 · An item in the memoir published by the Sociedad Económica de Amigos del País (Manila, 1860), containing a list of its achievements, is to th Note 22 · Azcarraga (p. 167) gives the following figures for Iloilo:Note 23 · Azcarraga, pp. 168–169.Note 24 · Jagor, (Spanish edition, Madrid, 1874), p. 255.Note 25 · “From these dates (referring to the opening of the ports) the prosperity of the Philippines advanced steadily and rapidly without interrupti Note 26 · Bowring, p. 410. “The Filipinos gave a proof of their intelligence and of their aspirations by sending their children to Manila to be educat Note 27 · Jagor, ibid., p. 256.Note 28 · “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,Note 29 · “During the previous epoch the so-called natural resources constituting the extractive industries—consisting of the collection of the sponta Note 30 · 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 Note 31 · This principle is stated as follows: “The beginnings of social evolution * * * are always to be found in a bountiful environment. Moreover, Note 32 · “These changes show how important it was to establish at different points, extending over two hundred miles of the Archipelago, commercial c Note 33 · Jagor gives credit to the two American houses in the Philippines for the development of the abacá into an important article of export. These Note 34 · Basco’s idea was to make the Philippines economically self-sufficing, and not dependent on Mexico. For this reason, he encouraged the develo Note 35 · The company encouraged the production of silk,4 indigo,5 sugar,6 cotton,7 and especially of pepper and other spices. For this purpose it bou Note 36 · In spite of the special protection and privileges granted to the company, it declined from year to year. In 1805 it was rechartered, and giv Note 37 · What were the causes that led to the ill success of the Royal Company? Among the minor causes mentioned was the indifference of the resident Note 38 · It also failed to establish direct trade relations with China and India, but depended solely on buying the goods which were brought there by Note 39 · According to Dr. Tavera, the Royal Company introduced capital, which was essential for economic development.11 Note 40 · 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 Note 41 · Once Manila was opened, the advocates of greater freedom did not rest content with only one free port, because there were great difficulties Note 42 · Taking the increase of exports as an indication of greater agricultural and commercial activity, we find that, with the opening of the ports Note 43 · The same effect that was observed in connection with the opening of Manila followed that of the other ports. The production of the regions a Note 44 · Furthermore, the opening of Iloilo encouraged production in the island of Negros. Previous to the new era the conditions there were describe Note 45 · The increased production, due to the improved methods of cultivation, had a great effect on the inhabitants of the islands, for, not only di Note 46 · And since the opening of the ports, a great many people, especially mestizos, who before traded in manufactured goods purchased in Manila, a Note 47 · The material progress of the Filipinos wrought great changes in the social population, mind, and structure. Though not affecting the majorit Note 48 · Furthermore, the law that all the energy in the growth and activity of a population is derived from the physical world, and hence, density o Note 49 · Why is it that writers attribute great significance to the coming of the foreign business men, especially the American and British?32 Why wa Note 50 · 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 capit