Note 12 — REFORMS NEEDED IN FILIPINAS

(3) From the ignorance of the Indians, not only of the various methods of making plantations, but of the means of preparing the raw materials for their employment in the trade—a cause which is so universal and so mischievous that the agricultural products of Filipinas, which ought to be, on account of their excellent character and the extent of territory of the islands, commodities which should supply all the markets of Europe and hold the first rank in quality, are the most scarce in general commerce, and moreover lowest in price, as I am going to prove by some instances. The sugar of Filipinas is today the most important commodity for exportation which the commerce there includes. The cultivation of the sugar-cane cannot be improved; but the manufacture of the sugar is so defective that, in spite of the superior quality of the cane, the sugar which is produced from it is inferior to that which is called terciado [i.e., brown] at Habana. Although in the market of Cadiz the white sugar from Habana is worth thirty-two to twenty-five silver reals, and the brown sugar twenty-six to twenty-eight, the white sugar of Manila is worth twenty-four to twenty-five12—that is, nine silver reals less than the former, and two or three reals less than the latter on each arroba. Consequently, the temporary privilege granted by his Majesty in exempting the products of Filipinas from duties is the only support of the expeditions which have come [thence] to the Peninsula; and it is unquestionable that when that privilege ceases that commerce will likewise come to a complete stop. For if from the twenty-four silver reals, the highest price at which an arroba of the Manila sugar can be sold, be deducted for duties eight reals and twenty-seven maravedís, the trader will receive a price of only nineteen silver reals, five cuartos; subtracting from this the fourteen and one-half reals of the prime cost at Manila (according to the latest information received), and the only profit left to him would be four reals, three maravedís—with which it is absolutely impossible for him to pay either the heavy freight charges on that commodity, or the interest on money and the insurance premiums, on a voyage three times as long as that from Habana. The low price [of sugar] in the market has no other cause than the lack of skill at Manila for manufacturing the sugar; this art is there found entirely in its infancy, and without any other method than that which, since very ancient times, the Chinese have taught them. [The sugar-makers have not proper machinery or appliances, or the knowledge, for any of the stages of the process; and their product is inferior, when it might be as good as that of Habana—or even better, if the same skill and care were used in making it as are used there. The above profit of nine reals on the arroba, if equally divided among the grower, the manufacturer, and the government (for duties which in that case should be imposed on the sugar), would yield each of them $300,000 annually, on the estimated production of 1,000,000 arrobas which would be practicable for Filipinas—to say nothing of the increased benefits to the laboring class—with improved methods of manufacture. To secure this, the government must be energetic in promoting large establishments there, and introducing machinery and skilled laborers. “The funds in the communal treasury of the Indians, which at the present time must reach about $300,000, and whose object is the benefit of those same Indians,” might aid the government in meeting the expenses of such measures; the skilled artisans could instruct the Indian farmers in the new improved methods, and the industry would be almost perfected in two years’ time, at very little expense. Bernaldez describes in similar manner the deficiencies, possibilities, and needs of the indigo, coffee, and cacao industries, and urges the government to extend like care to these; what has been done thus far by the colonial government has been quite ineffective, because it has been in the form of proclamations and enactments which merely required small plantations to be made by all the inhabitants, but these failed because they disregarded the principles of political economy and made no provision for the individual interest of the cultivator.] There are, then, two means which ought to be adopted for the promotion of large plantations in Filipinas, incentive and instruction; and for this it is necessary to grant pecuniary rewards to the agriculturists, and furnish them with teachers from the near-by islands of Java or even Bourbon, where not only coffee but cacao is cultivated.