Note 28 — EVENTS IN FILIPINAS, 1764–1800

“Only one plant of those that were carried to the Filipinas Islands was introduced, and its cultivation directed, by the government; this was the tobacco. Perhaps there is no other which is more enjoyed by the natives, or more productive of revenue, than is this plant. So important for España is its utility that it alone, if his Majesty’s government promotes its maintenance intelligently, can become a greater resource than all the other incomes of the colony.” “Tobacco is the most important branch of the commerce of these islands; its leaves, which in all the provinces are of excellent quality, in some of them reach such perfection that they cannot be distinguished from those of Havana. The government has reserved to itself the right to sell tobacco; its manufacture is free only in the Visayas, but in all the island of Luzon this is subject to the vigilance of the government. Nevertheless, the proprietors or growers are permitted to cultivate it in Pampanga, Gapan, Nueva Ecija, and in the province of Cagayan; but the government buys from them the entire crop at contract prices.” “To the far-seeing policy of the captain-general Don José Basco is due the establishment of this revenue, one of the richest in the islands. Its direct result, a short time after it had been established, was that the obligations of the colony and its political existence, far from depending, as before, on an allotment made in its favor by the capital, were advantageously secured; and in the succeeding years this branch of the revenue displayed a very notable increase, with well-grounded indications of the greater one of which it was susceptible. In 1781 this income was established; and at the beginning of 1782 it was extended to the seventeen provinces into which the island of Luzon was then divided. It is easy to estimate the resistance which was encountered in establishing this revenue—not only through the effect of public opinion, which immediately characterized the project as foolhardy, but through the grievance which it must be to the natives and the obstacles continually arising from the contraband trade. Certainly it was hard to deprive the natives suddenly of the right (which they had enjoyed until then) of cultivating without restriction a plant to the use of which they had been accustomed from infancy, being regarded among them as almost of prime necessity. But there was no other means, if that worthy governor’s economic idea was to be realized, than the monopoly, which should prohibit simultaneously in the island of Luzon the sowing and cultivation of the said plant, reducing it to the narrow limits of certain districts, those which were most suitable for obtaining abundant and good crops. If to this be added the necessity imposed on the consumers of paying a higher price for a commodity which until then had been easily obtained, we must admit that the undertaking was exceedingly arduous and hazardous.” “At the outset, districts were set aside in which its cultivation was permitted: Gapan, in the province of Pampanga; some districts in Cagayan, and the little island of Marinduque—although in these last two places only an insignificant amount was harvested. Notwithstanding the difficulties which surround every new enterprise, from the year 1808 the net profits which the monopoly annually produced exceeded 500,000 dollars [duros].” (Buzeta and Bravo, Diccionario, i, pp. 51, 173, 438, 439.)

See Jagor’s interesting account of the tobacco monopoly (especially in the middle of the nineteenth century), in his Reisen, pp. 257–270. One of his notes (p. 256) states that the income from this monopoly was $8,418,939 in the year 1866–67; another (p. 259) cites authorities to show that tobacco was first introduced into southern China from the Philippines, in the sixteenth and seventeenth centuries, “probably by way of Japan.”

The idea of establishing the tobacco monopoly had been urged by Viana in 1766 (see pp. 109, 110, post). ↑