Note 2 — THE PHILIPPINES, 1860–1898—SOME COMMENT AND BIBLIOGRAPHICAL NOTES

In one sense, indeed, the opening of the Suez Canal tended to lessen, relatively, the influence of foreign business and banking houses in the development of the Philippines, in that it led to direct steamship connection with Spain, awakening interest at home in this hitherto neglected colony and bringing to the Philippines for the first time in three hundred years more than a mere handful of Spaniards. After the early adventurers and encomenderos had disappeared, the number of Spanish civilians in private life was few indeed, numbering the favored merchants who had shares in the galleon trade-monopoly, and an occasional planter, descended perhaps from a family of encomenderos rooted in the Philippines, or being an ex-army officer who had remained in the islands. Moreover, the small army maintained in the islands was to a considerable extent officered by Mexican creoles or half-castes, its soldiers being mostly Filipinos and Mexicans. The list of civilian officials was itself small, the governor (alcalde mayor) of a province combining with his executive functions and (very commonly) his command of the troops garrisoned therein, the powers of a superior judge for both civil and criminal jurisdictions. The members of the religious orders constituted the largest numerically, as well as the most influential, element of Spaniards in the Philippines. Outside of this class, the Spanish population of the archipelago, always very small even in its total, was mostly gathered in a few places, Manila containing by far the greater proportion. The general rule in the provinces was that only one white man, the friar-curate, was to be found in a town, a number of the smaller towns, moreover, not having a friar-curate, but a Filipino secular priest.2 The movement of Spaniards to the Philippines had, indeed, begun before the opening of the Suez Canal. The inauguration of the Spanish-Philippine Bank in Manila in 1852 afforded evidence much less, however, of the growth of Spanish commercial interests than of a desire to foster the growth of such interests by supplying credit facilities more nearly up to date than those hitherto available (at ruinous rates of interest) from the old “pious funds” [obras pías] of various sorts, especially since the foreign trading houses were virtually performing the functions of banks in their ways of extending credit to agriculturists, or were being aided by private bankers associated with them.3 The loss of Spain’s colonies on the mainland, besides turning many loyal or proscribed Spaniards toward Cuba and the Peninsula, had in a small degree encouraged such emigration to the more distant Philippines, and the history of certain of the most prominent Spanish families in the Philippines dates from the decades immediately following the political upheavals in Spanish-America. In the main, however, such immigrants as came to the Philippines in this way were government employees who, being ousted from the American continent, must rest as pensioners on the home government if the latter could not find them places in the Spanish Antilles or the Philippines. Such immigration, it need not be said, was not altogether an unmixed good; and some of the various “administrative reforms” designed for the Philippines in the fifties and sixties showed the influence of this pressure to provide places for officeholders with a claim on the government. The number of Spaniards who came to the Philippines on their private initiative was very small until direct steam communication with the Peninsula was opened, and though it never became large during the last thirty years of Spanish rule, Spanish commercial interests in the islands gained relatively on those of foreigners after the opening of the canal. A direct steamship line from Barcelona was soon established under subsidy. The domestic shipping laws of Spain were even more fully extended over the Philippine archipelago, and the already existing preferential customs duties and regulations aided the growth of Spanish trade in the islands thereafter more than they had done before.4