Note 28 — EVENTS IN FILIPINAS, 1764–1800

“Filipinas had been, until the arrival of the illustrious Basco y Vargas in the country, a heavy burden on the capital, since every year the situado was sent in cash from México to meet the obligations of the islands. In order to free España from this sort of load, and to raise the country from its depressed condition, he conceived the vast project of stimulating the cultivation of tobacco, by establishing a government monopoly of it.28 He communicated his plan to the Spanish government; and by a royal order of February 9, 1780, the monopoly of tobacco, similar to that which was in force in the other dominions of the nation, was decreed. He immediately published two proclamations, on December 13 and 25 respectively, in 1781, prohibiting the sale, traffic, and manufacture of tobacco; and on February 16, 1782, he issued (signed and sealed by himself), ‘Instructions which are given to all the commanders or heads of the patrols, the provincial administrators, the market inspectors, and other persons who are under obligation to prevent loss to the revenue from tobacco.’ These were directed to the prevention of smuggling, showing the way in which investigations should be conducted—including the houses of parish priests, the convents, colleges, and beaterios, the quarters of the soldiers, etc. He created a board of direction for this revenue, a general office of administration or agency, and subordinate offices to this in the provinces. Basco’s idea was strongly opposed by various interests; but the governor’s energy was able to conquer this unjust opposition, and the monopoly was organized on March 1, 1782; it constituted the basis of the prosperity of the exchequer in that country, and its most important source of revenue.