The Former Philippines thru Foreign Eyes

Chapter 18

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[Sulphur.] In the Island of Leyte, abundance of sulphur is met with, and from thence the gunpowder works of Manila are supplied at very reasonable prices. Jaspers, cornelians and agates, are also found in profusion in many of these provinces; everything, indeed, promises varied mineral wealth worthy of exciting the curiosity and useful researches of mineralogists, who, unfortunately, have not hitherto extended their labors to these remote parts of the globe.

[Pearls.] Pearl fisheries are, from time to time, undertaken off the coast of the Island of Mindanao, and also near smaller islands not far from Cebu, but with little success and less constancy, not because there is a scarcity of fine pearls of a bright color and considerable size, but on account of the divers" want of skill and their just dread of the sharks, which, in great numbers infest these seas. Amber is frequently gathered in considerable lumps in the vicinity of Samar and the other Visayan Islands as well as mother-of-pearl, tortoise-sh.e.l.l, and red and black coral, of the latter kind of which, I have seen shafts as thick as my finger and six or eight feet long.

[Estates.] The proprietors of estates in the Philippines are of four cla.s.ses. The most considerable is that of the religious orders, Augustinians and Dominicans, who cultivate their respective lands on joint account, or let them out at a moderate ground-rent, which the planters pay in kind; but far from living in opulence, and acc.u.mulating the immense revenues some of the religious communities enjoy in America, they stand in need of all they earn and possess for their maintenance, and in order to be enabled to discharge the various duties and obligations annexed to the missions with which they are entrusted.

[Spanish planters.] The second cla.s.s comprehends the Spanish proprietors, whose number possibly does not exceed a dozen of persons, and even they labor under such disadvantages, and have to contend with so many obstacles, under the existing order of things, that, compelled to divide their lands into rice plantations, in consequence of this being the species of culture to which the natives are most inclined, and to devote a considerable portion of them to the grazing of horned cattle, no one of them is in a situation to give to agriculture the variety and extent desired, or to attain any progress in a pursuit which in other colonies rapidly leads to riches.

[Filipino farmers.] The third consists of the princ.i.p.al mestizos and natives, and is in fact that which const.i.tutes the real body of farming proprietors. In the fourth and last may be included all the other natives, who generally possess a small strip of land situated round their dwellings, or at the extremities of the various towns and settlements formed by the conquerors; besides what they may have obtained from their ancestors in the way of legal inheritance, which rights have been confirmed to them by the present sovereign of the colony.

[Aids to agriculture.] It will beyond doubt, in some measure dissipate the distrust by which the Filipino is actuated, when the new and paternal exertions of the superior government, to ameliorate his present situation, are fully known, and when that valuable portion of our distant population is a.s.sured that their rights will henceforth be respected, and those exactions and compulsory levies which formerly so much disheartened them, are totally abolished. On the other hand, a new stimulus will be given by the living example and fresh impulse communicated to the provinces by other families emigrating and settling there, nurtured in the spirit and principles of those reforms in the ideas and maxims of government by which the present era is distinguished. A practical partic.i.p.ation in these advantages will, most a.s.suredly, awaken a spirit of enterprise and emulation that may be extremely beneficial to agriculture, and as the wants of the natives increase in proportion as they are enabled to know and compare the comforts arising out of the presence and extension of conveniences and luxuries in their own towns, they will naturally be led to possess and adopt them.

[Plans for progress.] So salutary a change, however, can only be the work of time, and as long as the government confines itself to a system merely protecting, the effects must consequently be slow. As it is therefore necessary to put in action more powerful springs than the ordinary ones, it will be found expedient partly to relax from some of those general principles which apply to societies, differently const.i.tuted, or rather formed of other perfectly distinct elements. As relating to the subject under discussion, I fortunately discover two means, pointed out in the laws themselves, essentially just, and at the same time capable of producing in this populous colony, more than in any other, the desired results. The legislator, founding himself on the common obligation of the subject to contribute something in return for the protection he receives, and to co-operate in the increase of the power and opulence of the State, proscribes idleness as a crime, and points out labor as a duty; and although the regulations touching the natives breathe the spirit of humanity, and exhibit the wisdom with which they were originally formed, they nevertheless concur and are directed to this primary object. In them the distribution of vacant lands, as well as of the natives at fair daily wages to clear them, is universally allowed, and these it seems to me, are the means from an equitable and intelligent application of which the most beneficial consequences may be expected.

[Confiscating unused lands.] The first cannot be attended with any great difficulty, because all the provinces abound in waste and vacant lands, and scarcely is there a district in which some are not to be found of private property completely uncultivated and neglected, and consequently susceptible, as above stated, of being legally transferred, for this reason alone, to the possession of an active owner. Let their nature however, be what it may, in their adjudication, it is of the greatest importance to proceed with uniformity, by consecrating, in a most irrevocable manner, the solemnity of all similar grants. Public interest and reason, in the Philippine Islands, require that in all such cases deference only should be paid to demands justly interposed, and formally established within a due and fixed period; but after full and public notice has been given by the respective judicial authorities, of the t.i.tles about to be granted, the counter claims the natives may seek to put in after the lapse of the period prefixed, should be peremptorily disregarded. Although at first sight this appears a direct infringement on the imprescriptible rights of property, it must be considered that in some cases individual interests ought to be sacrificed to the general good, and that the balance used, when treating of the affairs of State, is never of that rigid kind as if applied to those of minor consideration. The fact is, that by this means many would be induced to form estates, who have hitherto been withheld by the dread of involving themselves, and spending their money in law suits; at the same time the natives, gradually accustoming themselves to this new order of things, would lay aside that disposition to strife and contention, which forms so peculiar a trait in their character, and that antipathy and odium would also disappear with which they have usually viewed the agricultural undertakings of Spaniards.

[Compulsory labor.] Proceeding to the consideration of the second means of accelerating the improvement of agriculture, viz., the distribution of the natives, it will suffice to say that it would be equally easy to show that it is absolutely necessary rigorously to carry into effect, in the Philippine Islands, whatever the laws on this subject prescribed, otherwise we must give up all those substantial hopes entertained of the felicity of the colony. We are no longer in a situation to be restricted to the removal of ordinary obstacles, and the season is gone by in which, as heretofore, it entered into our policy to employ no other than indirect stimulants--in order to incline the Filipino to labor. It is evident that admonitions and offers of reward no longer suffice; nor indeed have the advantageous terms proposed to them by some planters, with a view to withdraw the lower orders of the natives, such as the timauas and caglianes plebeians, from the idle indifference in which they are sunk, been of any avail. Their wants and wishes being easily supplied, the whole of their happiness seems to depend on quiet and repose, and their highest enjoyment on the pleasure of sleep. Energy, however, and a certain degree of severity must be employed, if permanent resources are to be called forth, and if the progressive settlement of European families and the formation of estates proportioned to the fertility of the soil and capabilities of the country are to enter into the views of government. In vain would grants and transfers of vacant and useless lands be made to new and enterprising proprietors, unless at the same time they can be provided with laborers, and experience every other possible facility, in order to clear, enclose, and cultivate them. Hence follows the indispensable necessity of appealing to the system of distributions, as above pointed out; for what cla.s.s of laborers can be obtained in a country where the whites are so few, unless it be the natives? Should they object to personal service, should they refuse to labor for an equitable and daily allowance, by which means they would also cease to be burdens to the State and to society, are they not to be compelled to contribute by this means to the prosperity of which they are members; in a word, to the public good, and thus make some provision for old age? If the soldier, conveyed away from his native land, submits to dangers, and is unceasingly exposed to death in defence of the State, why should not the Filipino moderately use his strength and activity in tilling the fields which are to sustain him and enrich the commonwealth?

[The undeveloped Philippines.] Besides, things in the Philippine Islands wear a very different aspect to what they do on the American continent, where, as authorized by the said laws, a certain number of natives may be impressed for a season, and sent off inland to a considerable distance from their dwellings, either for the purpose of agriculture, or working the mines, provided only they are taken care of during their journeys, maintained, and the price of their daily labor, as fixed by the civil authorities, regularly paid to them. The immense valleys and mountains susceptible of cultivation, especially in the Island of Luzon, being once settled, and the facilities of obtaining hands increased, such legal acts of compulsion, far from being any longer necessary, will have introduced a spirit of industry that will render the labors of the field supportable and even desirable; and in this occupation all the tributary natives of the surrounding settlements can be alternately employed, by the day or week, and thus do their work almost at the door of their own huts, and as it were in sight of their wives and children.

[No legal obstacle to forced labor.] If, after what has been above stated, the apparent opposition obstacle to which at first sight strikes the eye, in Law 40, t.i.tle 12, Book 6, speaking on this subject, and expressly referring to the Philippine Islands, should be alleged, no more will be necessary than to study its genuine sense, or read it with attention, in order to be convinced of its perfect concordance with the essential parts of the other laws of the Indies, already quoted in explanation and support of the system of distributing the laborers. The above-mentioned law does indeed contain a strict recommendation to employ the Chinese and j.a.panese, not domiciliated, in preference to the natives, in the establishments for cutting timber and other royal works, and further enjoins that use is only to be made in emergencies, and when the preservation of the state should require it. It has, however, happened that, since the remote period at which the above was promulgated, not only all contracts and commerce have ceased, but also every communication with j.a.pan has been interrupted, and for a number of years not a single individual of that ferocious race has existed in the Philippine Islands. With regard to the Chinese, who are supposed to be numerous in the capital, of late years they have diminished so much, that according to a census made by orders of the government in the year 1807, no more than four thousand seven hundred are found on the registers; and, if in consequence of their secreting themselves, or withdrawing into the interior, a third more might be added to the above amount, their total numbers would still remain very inconsiderable, and infinitely inferior to what is required, not only for the tillage of the estates, but even for the royal works.

[Subst.i.tute laborers wanting.] As, therefore, the j.a.panese have totally disappeared, and the number of Chinese is evidently inadequate to the wants of agriculture, it almost necessarily follows that the practice of distributing the Filipino laborers, as allowed by the aforesaid laws of the Indies, under all circ.u.mstances, is the only alternate left. Even if, against the adoption of this measure, it should be attempted to urge the ambiguous sense of the concluding part of the second clause, it would be easy to comprehend its true intent and meaning, by referring to Law 1, t.i.tle 13, Book 5, which says:

"That, considering the inconveniences which would arise from doing away with certain distributions of grounds, gardens, estates, and other plantations, in which the Indians are interested, as a matter on which the preservation of those distant dominions and provinces depends, it is ordained that compulsory labor, and such distributions as are advantageous to the public good, shall continue."

After so pointed an explanation, and a manifestation so clear of the spirit of our legislation in this respect, all further comments would be useless, and no doubt whatever can be any longer entertained of the expediency, and even of the justice of putting the plan of well-regulated distributions in practice, as a powerful means to promote the agriculture, and secure to Spain the possession of these valuable dominions of the Indian Seas. ....

[Manufactures.] .... It would be impossible to gainsay Don Juan Francisco Urroz, of the Philippine Company, in his detailed and accurate report to the managing committee in 1802, when he observes:

"That the Philippine Islands, from time immemorial, were acquainted with, and still retain, that species of industry peculiar to the country, adapted to the customs and wants of the natives, and which const.i.tutes the chief branch of their clothing. This, although confined to coa.r.s.e articles, may in its cla.s.s be called perfect, as far as it answers the end for which it is intended; and if an attempt were made to enumerate the quant.i.ty of mats, handkerchiefs, sheeting, and a variety of other cloths manufactured for this purpose only in the Provinces of Tondo, Laguna, Batangas, Ilocos, Cagayan, Camarines, Albay, Visaya, etc., immense supplies of each kind would appear, which give occupation to an incalculable number of looms, indistinctly worked by Indians, Chinese, and Sangleyan mestizos, indeed all the cla.s.ses, in their own humble dwellings, built of canes and thatched with palm leaves, without any apparatus of regular manufacture."

[Native cloth weaving.] With equal truth am I enabled to add, that the natural abilities of these natives in the manufacture of all kinds of cloths, fine as well as coa.r.s.e, are really admirable. They succeed in reducing the harsh filaments of the palm-tree, known by the name of abaca, to such a degree of fineness, that they afterwards convert them into textures equal to the best muslins of Bengal. The beauty and evenness of their embroideries and open work excite surprise; in short, the damask table-cloths, ornamental weaving, textures of cotton and palm-fibres, intermixed with silk, and manufactured in the above-mentioned provinces, clearly prove how much the inhabitants of the Philippine Islands, in natural abilities and dexterity, resemble the other people of the Asiatic regions. It must nevertheless be allowed, that a want is noticed of that finish and polish which the perfection of art gives to each commodity; but this circ.u.mstance ought not to appear strange, if we consider that, entirely devoid of all methodical instruction, and ignorant also of the importance of the subdivision of labor, which contributes so greatly to simplify, shorten, and improve the respective excellence of all kinds of works, the same natives gin and clean the cotton, and then spin and weave it, without any other instruments than their hands and feet, aided only by the course and unsightly looms they themselves construct in a corner of their huts, with scarcely anything else than a few canes and sticks.

[Apt.i.tude for, but no development of, manufacturing.] From the preceding observations it may easily be deduced that, although the natives succeed in preparing, with admirable dexterity, the productions of their soil, and therewith satisfy the greatest part of their domestic wants, facts which certainly manifest their talents and apt.i.tude to be employed in works of more taste and delicacy, manufacturing industry is nevertheless far from being generalized, nor can it be said to be placed with any degree of solidity on its true and proper basis. Hence arise those great supplies of goods annually imported into the country, for the purpose of making up the deficiencies of the local manufactures.

[Improved methods and machinery needed.] The regular distribution or cla.s.sification of the a.s.semblage of operations which follow each other in graduation, from the rough preparation of the first materials, till the same have arrived at their perfect state of manufacture, instead of being practiced, is entirely unknown. The want of good machinery to free the cotton from the mult.i.tude of seeds with which it is enc.u.mbered, so as to perform the operation with ease and quickness, is the first and greatest obstacle that occurs; and its tediousness to the natives is so repugnant, that many sell their crops to others, without separating the seeds, or decline growing the article altogether, not to be plagued with the trouble of cleaning it. As the want of method is also equal to the superabundance or waste of time employed, the expenses of the goods manufactured increased in the same proportion, under such evident and great disadvantages; for which reason, far from being able to compete with those brought from China and British India, they only acquire estimation in the interior, when wanted to supply the place of the latter, or in cases of accidental scarcity.

[Scanty exports.] In a word, the only manufactured articles annually exported from the Philippine Islands are eight to twelve thousand pieces exports of light sail cloth, two hundred thousand pounds of abaca cordage a.s.sorted, and six hundred carabao hides and deer skins, which can scarcely be considered in a tanned state/ for, although the Royal Company, from the time of their establishment, long continued to export considerable quant.i.ties of dimities, calicos, stripes, checks, and coverlids, as well as other cotton and silk goods, it was more with a view to stimulate the districts of Ilocos to continue in the habit of manufacturing, and thus introduce among the inhabitants of that province a taste for industry, than the expectation of gain by the sale of this kind of merchandise either in Spain or any of the sections of America. At length, wearied with the losses experienced by carrying on this species of mercantile operations, without answering the princ.i.p.al object in view, they resolved, for the time being, to suspend ventures attended with such discouraging circ.u.mstances.

[Need of encouragement.] Notwithstanding so many impediments, it would not, however, be prudent in the government entirely to abandon the enterprise, and lose sight of the advantages the country offers, or indeed, to neglect turning the habitual facilities of the natives to some account. Far from there existing any positive grounds for despairing of the progress of manufacturing industry, it may justly be presumed that, whenever the sovereign, by adopting a different line of policy, shall allow the unlimited and indistinct settlement of all kinds of foreign colonists, and grant them the same facilities and protection enjoyed by national ones, they will be induced to flock to the Philippine Islands in considerable numbers, lured by the hope of acc.u.mulating fortunes in a country that presents a thousand attractions of every kind. Many, no doubt, will preferably devote themselves to commerce, others to agricultural undertakings and also to the pursuits of mining, but necessarily some will turn their attention and employ their funds in the formation of extensive manufactures, aided by intelligent instructors and suitable machinery. The newly-introduced information and arts being thus diffused, it is natural to expect they will be progressively adopted by a people already possessing a taste and genius for this species of labor, by which means manufacturing industry will soon be raised from the state of neglect and unprofitableness in which it is now left.

[Internal commerce handicapped.] The circulation of the country productions and effects of all kinds among the inhabitants of the provinces, which, properly speaking, const.i.tutes their internal commerce, is tolerably active and considerable. Owing to the great facilities of conveyance afforded by the number of rivers and lakes, on the margins of which the Filipinos are fond of fixing their dwellings, this commerce might be infinitely greater, if it was not obstructed by the monopoly of the magistrates in their respective districts and the unjust prerogative, exercised by the city, of imposing rates and arbitrary prices on the very persons who come to bring the supplies. Nevertheless, as the iniquituous operations of the district magistrates, however, active they may be, besides being restricted by their financial ability, regularly consist of arrangements to buy up only the chief articles, and those which promise most advantage, with least trouble; as that restless inquietude which impels man on, under the hope of bettering his condition, acts even amidst rigor of oppression, a certain degree of stimulus and scope is still left in favor of internal trade.

[Inter-island traffic.] Hence it follows, that there is scarcely an island or province, that does not carry on some traffic or other, by keeping up relations with its neighbors, which sometimes extend as far as the capital; where, in proportion as the produce and raw materials find a ready market, returns suitable and adequate to the consumption of each place, respectively, are obtained. If, however, it would be difficult to form an idea, even in the way of approximation, of the exchanges which take place between the various provinces, a task that would render it necessary to enumerate them, one by one, it is equally so to make an estimate of the total amount of this cla.s.s of operation carried on in Manila, their common center. Situated in the bottom of an immense bay, bathed by a large river, and the country round divided by an infinite number of streams and lakes descending from the provinces by which the capital is surrounded, the produce and effects are daily brought in and go out of suburbs so extended in a diversity of small vessels and canoes, without its being possible to obtain any exact account of the multiplicity of transactions carried on at one and the same time, in a city built on so large a scale.

[Local markets.] Besides the traffic founded on ordinary consumption, the necessity of obtaining a.s.sortments of home-manufactured as well as imported goods, in order to supply the markets, known by the name of tianguis, and which are held weekly in almost every town, there is another species of speculation, peculiar to the rich natives and Sangley mestizos, an industrious race, and also possessed of the largest portion of the specie. This consists in the antic.i.p.ated purchase of the crops of indigo, sugar, rice, etc., with a view to fix their own prices on the produce thus contracted for, when resold to the second hand. A propensity to barter and traffic, in all kinds of ways, is indeed universal among the natives, and as the princ.i.p.al springs which urge on internal circulation are already in motion, nothing more is wanting than at once to destroy the obstacles previously pointed out, and encourage the extension of luxury and comforts, in order that, by the number of the people"s wants being increased, as well as the means of supplying them, the force and velocity of action may in the same proportion be augmented.

[External commerce.] Under "External Commerce" generally are comprised the relations the Philippine Islands keep up with other nations, with the Spanish possessions in America, and with the mother country; or, in other words, the sum total of their imports and exports.

[Outside deterrents.] Many are the causes which, within the last ten or twelve years, have influenced the mercantile relations of these Islands, and prevented their organization on permanent and known principles. The chief one, no doubt, has been the frequent and unforeseen changes, from peace to war, which have marked that unhappy period, and as under similar circ.u.mstances merchants, more than any other cla.s.s of persons, are in the habit of acting on extremes, there have been occasions in which, misled by the exaggerated idea of the galleon of Acapulco, and anxious to avail themselves of the first prices, generally also the highest, foreign speculators have inundated Manila with goods, by a compet.i.tion from all quarters; and others, owing to the channels being obstructed, when this market has experienced an absolute scarcity of commodities, as well as of funds necessary to continue the usual and almost only branch of commerce left. The frequent failure of the sugar and indigo crops, has also in many instances restrained the North Americans and other neutrals from coming to these Islands with cargoes, and induced them to prefer Java, where they are at all times sure of finding returns. Besides the influence of these extraordinary causes on the uncertainty and irregularity of external commerce, no small share must also be attributed to the strangeness of the peculiar const.i.tution of the country, or the principles on which its trade is established.

[Domestic discouragements.] Scarcely will it be believed, in the greater part of civilized Europe, that a Spanish colony exists between Asia and America, whose merchants are forbidden to avail themselves of their advantageous situation, and that, as a special favor only are they allowed to send their effects to Mexico, once a year, but under the following restrictions. It is a necessary condition, that every shipper shall be a member of the Board of Trade (Consulado), and therein ent.i.tled to a vote, which supposes a residence of some years in the country, besides the possession of property of his own to the amount of $8,000. He is compelled to join with the other members, in order to be enabled to ship his goods in bales of a determined form and dimensions, in one single vessel, arranged, fitted out, and commanded by officers of the royal navy, under the character of a war ship. He has also to contribute his proportion of $20,000, which, in the shape of a present, are given to the commander, at the end of every round voyage. He cannot in any way interfere in the choice or qualities of the vessel, notwithstanding his property is to be risked in her; and what completes the extravagance of the system, is, that before anything is done he must pay down twenty-five or forty per cent for freight, according to circ.u.mstances, which money is distributed among certain canons of the church, aldermen, subalterns of the army, and widows of Spaniards, to whom a given number of tickets or certified permits to ship are granted, either as a compensation for the smallness of their pay, or in the way of a privilege; but on express conditions that, although they themselves are not members of the Board of Trade, they shall not be allowed to negotiate and transfer them to persons not having that quality. In the custom house nothing being admitted unless the number of bales shipped are accompanied by corresponding permits, and as it besides frequently happens that there is a degree of compet.i.tion between the parties seeking to try their fortune in this way, the original holders of the permits very often hang back, in such a manner that I have seen $500 offered for the transfer of a right to ship three bales, which scarcely contained goods to the amount of $1,000. Such, nevertheless, is the truth, and such the exact description of the famous Acapulco ship, which has excited so much jealousy among the merchants of Seville and Cadiz, and given rise to such an infinite number of disputes and lawsuits.

[Business irregularities.] So complete a deviation from the rules and maxims usually received in trade, could not fail to produce in the Philippine Islands, as in fact it has, effects equally extraordinary with regard to those who follow this pursuit. The merchant of Manila is, in fact, entirely different from the one in Cadiz or Amsterdam. Without any correspondents in the manufacturing countries and consequently possessed of no suitable advices of the favorable variations in the respective markets, without brokers and even without regular books he seems to carry on his profession on no one fixed principle, and to have acquired his routine of business from mere habit and vague custom. His contracts are made out on stamped paper, and his bills or promissory notes no other than long and diffuse writings or bonds, of which the dates and amounts are kept more in the shape of bundles than by any due entry on his books; and what at once gives the most clear idea of this irregularity is the singular fact that, for the s.p.a.ce of twenty-five and possibly fifty years, only one bankrupt has presented the state of his affairs to the Board of Trade, in conformity to the regulations prescribed by the general Statutes of Bankruptcy, whereas, numbers of cases have occurred in which these merchants have wasted or secreted the property of others with impunity. Hence have arisen those irregularities, subterfuges and disputes, in a word, the absence of all mercantile business carried on in a scrupulously punctual and correct manner. Hence, also, have followed that distrust and embarra.s.sment with which commercial operations are attended, as well as the difficulty of calculating their fluctuations. On the other hand, as in order to send off an expedition by the annual ship to Acapulco, the previous consent of the majority of the incorporated merchants is necessary, before this point is decided, months are pa.s.sed in intrigues and disputes, the peremptory period arrives, and if the articles wanted are in the market, they are purchased up with precipitation and paid for with the monies the shippers have been able to obtain at an interest from the administrators of pious and charitable funds. In this manner, compelled to act almost always without plan or concert, yet accustomed to gain in the market of Acapulco, notwithstanding so many impediments and the exorbitant premiums paid for the money lent, these merchants follow the strange maxim of risking little or no property of their own; and unaware, or rather, disregarding the importance of economy in the expenses and regularity of their general method of living, it is not possible they can ever acc.u.mulate large fortunes, or form solid and well-accredited houses.

[Merchants discouraged.] Thus oppressed by a system, as unjust as it is absurd, and conducting their affairs in the way above described, it is not strange that these gentlemen, at the same time yielding to the indolence consequent on the climate, should neglect or behold with indifference all the other secondary resources which the supplying the wants of the country and the extensive scope and variety of its produce offer to the man of active mind. Hence it follows, as already observed, that the whole of the interior trade is at present absorbed by the princ.i.p.al natives, the Sangley mestizos of both s.e.xes, and a few Chinese peddlers.

[The outlook brightening.] Notwithstanding, however, the defective manner in which the generality of the merchants act, some already are beginning to distinguish themselves by the prudence of their conduct, by forwarding, in time, their orders to the manufacturers of India and China, and, in other respects guiding themselves by the principles which characterize the intelligent merchant. Finally, it is to be presumed that, as soon as the government shall have thrown down this singular and preposterous system that has been the cause of so many disorders, and proclaimed the unlimited freedom of Philippine commerce, the greater part of these people will rise up from the state of inaction in which they now live, and the relations of the colony will then a.s.sume the course and extent corresponding to its advantages of position. At least, if our national merchants should not act up to the impulse given to all kinds of mercantile enterprises by the beneficial hand of the sovereign, foreigners will not be wanting, who, relying on due toleration, will be induced to convey their fortunes and families to the Philippine Islands, and, vigorously encouraging the exportation of their valuable productions, amply secure the fruits of their laudable activity and well-combined speculations.

[Capital employed in commerce.] Were a person, judging from the numbers const.i.tuting the body of registered merchants, and supposing all of them to possess the essential requisites prescribed by our commercial regulations, to form a prudent estimate of the amount of capital employed by them, his calculations would turn out extremely erroneous, for besides the case with which regulations of this kind are eluded, many are merely nominal traders, and there are others whose mercantile existence is purely artificial for they are sustained in a temporary manner, by means of a forced species of circulation peculiar to this country. This consists in obtaining the acquiescence of the administrators of pious and charitable funds, let out at interest, to renew the bonds they hold during other successive risks, waiting, as it were, till some fatal tempest has swallowed up the vessel in which these merchants suppose their property to be embarked, and at once cancel all their obligations. On the other hand, neither excessive expenses nor the shipment of large quant.i.ties of goods to Acapulco can in any way be taken as a just criterion whereby to judge of the fortunes of individuals; because, in the first, there is great uniformity, every one, more or less, enjoying, exteriorly, the same easy circ.u.mstances, notwithstanding the disparity of real property; and in the second, considerable fiction prevails, many persons shipping under the same mark, and even when the shipper stands alone, he might have been provided with the necessary funds from the pious and charitable establishments, possibly without risking a dollar of his own in the whole operation. Under circ.u.mstances so dubious, far from presuming to give a decided opinion on the subject, I am compelled to judge from mere conjectures, and guided only by the knowledge and experience I have been able to acquire during my long residence there. In conformity thereto, I am inclined to believe, that the total amount of capital belonging to and employed in the trade of the Philippine Islands, does not at present exceed two and a half million dollars, with evident signs of rapid decline, if the merchants do not in time abandon the ruinous systems of chiefly carrying on their speculations with money obtained at interest.

[Large sums h.o.a.rded.] The two and a half million dollars thus attributed to the merchants, form, however, the smaller part of the funds distributed among the other cla.s.ses, and the total amount of the circulating medium of the colony might be considered an object sufficiently worthy of being ascertained, owing to the great light it would throw on the present state of the inhabitants; but it is in vain to attempt any calculation of the kind, at least without the aid of data possessing a certain degree of accuracy. The only thing that can be affirmed is, that during the period of more than two hundred and fifty years which have elapsed since the conquest, the ingress of specie into the Philippine Islands has been constant. Their annual ships have seldom come from New Spain without bringing considerable sums in return, and if some of them have been lost, many others, without being confined to the one million of dollars const.i.tuting the ordinary amount of the permit, have not unfrequently come back with triple that sum; for which reason there are ample grounds of judging the estimates correct, which fix the total importation of dollars, during the whole of that long period of years, to be equal to four hundred millions. It may further be observed that, as in the Sangley mestizos economy and avarice compete with intelligence and activity in acc.u.mulating wealth and as they are scattered, among the princ.i.p.al islands, and in possession of the best lands and the most lucrative business of the interior, there are ample motives for presuming that these industrious and sagacious people have gradually, although incessantly, ama.s.sed immense sums in specie; but it would be impossible to point out their amount, distribution, or the secret places in which they are h.o.a.rded.

[Pious and charitable funds" capital.] The a.s.semblage of pious legacies, temporalities, and other funds and property placed under the care of several administrative committees, for purposes as well religious as charitable, const.i.tute the chief capital employed in external trade; and notwithstanding the failures, which from time to time occur, the subsequent acc.u.mulation of the enormous premiums obtained for funds laid out in maritime speculations, both in time of peace and war, not only suffices to make up all losses of the above kind, but also to secure the punctual payment of such charitable pensions and other charges as are to be deducted from the respective profits of this species of stock, its total amount, according to an official report made by order of the head committee of the sinking fund, including temporalities, and Queen Maria of Austria"s endowment for the College of Las Marianas, together with other funds of the same kind, not comprehended in the decree of abolition, at the commencement of the year 1809, amounted to $2,470,390, and as the sea-risks of that and the following year were successful, and the outstanding amounts punctually recovered, the aggregate sum, arising out of the above description of property, may now be estimated at more than three millions. Of these funds three distributions are generally made, viz., one part is appropriated to the China risks, at from twelve to eighteen per cent. premium, according to circ.u.mstances, and also those to Madras, Calcutta and Batavia, at from sixteen to twenty-two per cent. The second, which generally is in the largest proportion, is employed in risks to Acapulco, at various premiums, from 27 to 45 per cent.; and the third is left in hand, as a kind of guarantee of the stability of the original endowments.

[Coveted by Spanish treasury.] In the great exigencies of the Royal Treasury, experienced during the last years of the administration of Sr. Soler, the royal decree of Consolidacion was extended to the Philippine Islands, under the pretext of guarding the funds belonging to public charities and religious endowments ... sea-risks, the income of which, when secured on good mortgages, does not generally exceed five per cent, many in Spain not yielding above four; but the remarkable difference between this plan and the one above described, together with various and other weighty reasons alleged by the administrators, caused the dreaded effect of this new regulation to be suspended, and whilst the head committee of Manila were consulting their doubts and requesting fresh instructions from the court at home, orders came out not to make any alteration in measures relating to this description of property.

[Easy capital but lessened profits.] Accustomed, in their limited calculations, to identify the resources, offered by the funds belonging to this cla.s.s of establishments, with the very existence of the colony, the needy merchants easily confound their personal with the general interest; and few stop to consider that the identical means of carrying on trade, without any capital of their own, although they have accidentally enriched a small number of persons, eventually have absorbed the princ.i.p.al profits, and possibly been the chief cause of the unflourishing state of the colony at large. Without fearing the charge of rashness, it may, in fact, be a.s.serted, that if these charities and pious endowments had never existed, public prosperity in the Philippine Islands would, as in other parts, have been the immediate effect of the united efforts of the individual members of the community and of the experience acquired in the constant prosecution of the same object. As, however, a progress of this kind, although certain, must necessarily have been at first extremely slow, and as, on the other hand, the preference given to mercantile operations undertaken with the funds belonging to public charities, has its origin in the a.s.semblage of vices so remarkable in the very organization of the body of Philippine merchants, any new measure on this subject might be deemed inconsistent, that at once deprived them of the use of resources on which they had been accustomed to rely, without removing those other defects which excuse, if not encourage, the continuation of the present system. Without, therefore, appealing to violent remedies, it is to be hoped that, in order to render plans of reform effectual, it will be sufficient, under more propitious circ.u.mstances, to see property brought from other countries to these Islands, as well as persons coming to settle in them, capable of managing it with that intelligence and economy required by trade. The compet.i.tion of those who speculate at random would then cease, or what is the same, as money obtained at a premium could not then be laid out with the same advantages by the merchants as if it was their own, it will be necessary to renounce the fallacious profits held out by the public charities, till at least they are placed on a level with existing circ.u.mstances, and brought in to be of real service to the honorable planter and laborious merchant, in their accidental exigencies, ceasing to be, as. .h.i.therto, the indirect cause of idleness, dissipation, and the ruin of an infinite number of families.

[Mercantile shipping.] The vessels which the district magistrates of the provinces employ in carrying on their trade with the capital and those belonging to some of the richer merchants, together with such as are owned by the natives and mestizos, on an approximate calculation, amount to twelve thousand tons, including ships, brigs, schooners, galleys, barges, etc. For the want of better data, this estimate is founded only on reasonable conjecture, aided by the advice of experienced persons, for although the greatest part of these vessels are built by the natives in the neighborhood of their own towns, no register is kept of their number and dimensions, nor do they carry with them the usual certificates. Those belonging to the merchants, that is, ships and brigs of a certain size, have already begun to frequent the ports of China, Java, the coast of Coromandel, Bengal, and the Isle of France, availing themselves of the lucrative freights which formerly enriched and encouraged foreign shipping. The other cla.s.s of vessels, although perfectly adequate to the coasting trade, cannot in general be applied to larger enterprises, on account of their not being sufficiently strong and capacious. The seamen are not apprenticed, or as it is usually called, matriculated, but their frequent crossing from island to island, their familiarity with regional tempests, voyages to various parts of America, and the occupation of fishing followed by the inhabitants of the coast, serve to train up a large body of dexterous and able mariners who at all times can be had, without any compulsion, to complete the crews.

[Need of nautical school.] The want of a public school for the teaching of navigation, is, however, sensibly felt, as well as great inconvenience from the scarcity of persons capable of being trusted with the command of vessels, and the ignorance that prevails of the waters of this dangerous Archipelago. Repeated royal orders have been sent over for the board of trade to proceed to the inst.i.tution of so useful an establishment, and in the meantime, a medium has been resorted to in order to supply the deficiency, by allowing the free admission of foreign mates, provided they exhibit proofs of their acquaintance with navigation, and profess the Catholic worship. Shipowners nevertheless experience great difficulties, particularly at times when the Acapulco ship is fitting out, for although she is considered as a vessel of war, and commanded by officers of the royal navy, the plan of her equipment is so singular, that in addition, she requires the extra aid of one chief mate, and three under ones.

[Royal Phillipine company.] The various modifications this corporate body has successively experienced, have, in great measure, changed the essence of its original const.i.tution, and the remonstrances of its directors, founded on the experience of a long series of years, at length induced the government at home to sanction alterations dictated by existing circ.u.mstances. The project of raising these Islands from the neglected state in which they were, and in some measure to place them in contact with the mother country, accompanied by a wish to give a new and great impulse to the various branches of industry which const.i.tute the importance of a colony, could not have been more laudable; but, as was afterwards seen, the instrument employed was not adequate to the object in view. At the same time that the company were charged to promote, and, by means of their funds, to vivify the agriculture and industry of these provinces, the necessary powers and facilities to enable them to reap the fruits of their sacrifices were withheld. The protection granted to this establishment, did not go beyond a general recommendation in favor of its enterprises, and, in short, far from enjoying the exclusive preponderance obtained at their commencement by all the other Asiatic companies, that of the Philippine Islands labored under particular disadvantages.

[Local progress under adverse conditions.] Notwithstanding an organization so imperfect, scarcely had the agents of the new Company arrived at Manila, when they distributed through the country their numerous dependents, commissioned to encourage the natives by advances of money. They established subaltern factories in the Provinces of Ilocos, Bataan, Cavite, and Camarines; purchased lands; delivered out agricultural implements; founded manufacturies of cotton cloths; contracted for the crops of produce at very high prices; offered rewards and, in short, they put in motion every partial resources they were able to avail themselves of and their limited means allowed. It would be extremely easy for me, in this place, to enter a particular enumeration of the important services of this kind rendered by the company, and to exhibit, in the most evident point of view, the advantages thence derived to these Islands, if, besides being slightly touched upon in the preceding articles, this task had not been already ably performed by the Factor Don Juan Francisco Urroz, in his accurate report on this subject, addressed to the governing committee of the company, in 1803. In justice I will nevertheless observe, that this establishment, anxiously resolved to attain the end proposed, in spite of so many obstacles, constantly followed up its expensive system without being disheartened; nor did the contrarieties with which the Royal Audiencia, or High Court of Justice, frequently paralyzed its plans, the indifference of the governors, or the general opposition and jealousy of the other cla.s.ses, in any way tend to relax its efforts, till at length, convinced of the impossibility of successfully contending, alone and without any other arms than its own reduced capital; and, on the other hand, well aware that a political body of this kind in vain seeks to unite within itself the triple and opposite characters of agriculturalist, manufacturer, and merchant, a determination was taken to alter the plan, and withdraw the factories established in the provinces, and by adopting a rigid economy and confining the operations in future to the purchase of such produce and manufactured articles as suited their trade, and were voluntarily brought by the natives to their stores, the expenses of the Company were curtailed, and a plan of reform introduced into all their speculations. By this means also they always secured an advantageous vent for the productions of the country, after having been the chief spring by which agriculture was promoted and encouraged in a direct manner.

[Handicapped in outside trade] The most beneficial reform, however, introduced by this establishment into its system, has, in reality, been derived from the variation or rather correction of its plans and enterprises, purely maritime. The government being desirous to increase the relations of this colony by every possible means, and to convert it into a common center of all the operations of the new company, at first required of the agents that the purchases and collection of goods from the coast of Coromandel, Bengal, and China, destined for Spain, should take place at Manila, either by purchasing the articles in that market, or through the medium of previous contracts to deliver them there. From this it is easy to infer, that the company was infallibly exposed to the harsh terms the respective contractors sought to impose upon them, as well with regard to prices as qualities, unless, in many cases, they preferred being left without the necessary a.s.sortments. Hence may it, without the smallest exaggeration, be affirmed, that, summing up all the surcharges under which the shipments left the port of Manila, and comparing them with those which might have been sent direct from the above-mentioned points, and without so extraordinary a detour as the one prescribed by law, the difference that followed in the prime cost of the cargos was not less than 80 per cent. The urgent manner, however, in which the directors of the company did not cease to deplore and complain of so evident a hardship, at length had the desired effect, and after existing ten or twelve years, so preposterous a system was successfully overthrown, and permission obtained from the king for the establishment of Spanish factories in the neighborhood of the China and India manufactures, as well as the power of addressing shipments direct to those foreign dominions. The enlightened policy of their respective governments did not allow them to hesitate in giving a favorable reception to our factors and vessels, and the purchases and shipments of Asiatic goods being thus realized without the old obstructions, the Company was reasonably led to hope being able soon to increase its operations, and progressively present more satisfactory results to the shareholders, when those political convulsions succeeding soon after, which have unhinged or destroyed all the ordinary relations of trade, compelled them to abandon their hopes, till the wished-for calm should be again restored.

[Temporary expedient of 1803.] In consequence of the new character and route given to the commercial enterprises of the Company, as authorized by a royal decree of July 12, 1803, the functions of the Manila factors were reduced to the annual shipment of a cargo of Asiatic goods to Peru, valued at $500,000, but only as long as the war lasted, and till the expiration of the extraordinary permits granted through the goodness of the king, and also to the transmitting to China and Bengal of the specie brought from America, and the collecting of certain quant.i.ties of indigo, sugar, or other produce of the Islands, with a view to gain by reselling it in the same market. Consequently, the moment things return to their pacific and ordinary course, will be the period when the necessity of the future existence of this establishment will cease, or at least, when the propriety will be evident of its reform or a.s.similation to the other commission houses, carrying on trade in Vera Cruz, Mexico, etc., which, not being hired establishments, do not create expenses when they cease to transact business.

[Compet.i.tion of foreign merchants.] Against a measure of this kind it would be useless to allege, that, "by the exclusive privilege to introduce spirits and European effects into the colony, the Company has contracted the obligation of always keeping it properly supplied; that their very inst.i.tution had for the basis the general improvement of the Islands, and in order duly to comply with these duties, it becomes indispensably necessary to keep up the present expensive establishment;" for, in the first place, in order, to render it inc.u.mbent on the company to introduce an indefinite quant.i.ty of European articles, it previously would be necessary to provide a vent for them, and this can never be the case, unless the exclusion of all compet.i.tors in the market is rigorously carried into effect. As things now are, the North Americans, English, French, and every other nation that wishes, openly usurped this privilege, by constantly inundating the Islands with spirits and all kinds of effects, and it is very evident that this same abuse which authorizes the infraction of the above privilege, if in that light it could in any way be considered, totally exonerates the company from all obligations by them contracted under a different understanding. Besides, the circ.u.mstances which have taken place since the publication of the royal decree, creating the above establishment into a corporate body, in the year 1785, have entirely changed the order established in this respect. In the first place, the port of Manila has been opened to foreign nations, in consequence of the disinterested representations of the company itself, and for the direct advantage of general trade; nor was it necessary to prevent our new guests from abusing the facilities thus granted to them, and much less to confine them to the mere introduction of Asiatic goods, the original plea made use of. In the second, as soon as the inhabitants of the Philippine Islands became familiar with the more useful and elegant objects of convenience and luxury, which they were enabled to purchase from foreigners, at reasonable prices, it was natural for them to pay little regard to the superfluous aid of the company, more particularly when the latter were no longer able to sustain the compet.i.tion, either in the sale or supply of a mult.i.tude of articles, which, thanks to our own national simplicity, are scarcely known in Spain, whence their outward-bound cargoes are divided. Hence it follows that, far from the importation and supplies of the company being missed, it may with great reason be presumed, that this formal renunciation of this ideal privilege of theirs, must rather have contributed to secure, in a permanent manner, adequate supplies for all the wants and whims of the inhabitants of the colony; and that the publicity of such a determination would act as a fresh allurement successively to bring to the port of Manila a host of foreign speculators, anxious to avail themselves of a fresh opening for commercial pursuits.

[Company not a philanthropy.] The other objection, founded on the mistaken notion of its being inherent in, and belonging to, the very essence of the company, to promote the general improvement of the Philippine Islands, if well considered, will appear equally unjust. It is, in fact, a ridiculous, although too generally received, a prejudice to suppose, that the founders of this establishment proposed to themselves the plan of sinking the money of the shareholders in clearing the lands, and perfecting the rude manufactures of these distant Islands. To imagine this to have been one of the princ.i.p.al objects of the inst.i.tution, or to suppose that, on this hard condition, their various privileges and exemptions were granted to them, is so far from the reality of the fact, that it would only be necessary to read with attention the 26th article of the quoted royal decree of creation, in order more correctly to comprehend the origin and const.i.tutive system of this political body.

"The latter," says the Duke de Almodovar, "is reduced to two princ.i.p.al points: the first of which is the carrying of the trade of Asia with that of America and Europe; and the second, the encouragement and improvement of the productions and manufacturing industry of the Islands. The one is the essential attribute of the company, const.i.tuting its real character of a mercantile society; and, in the other respect, it becomes an auxiliary of the government, to whom the duties alluded to more immediately belong." If to the above we add the preamble of the 43rd article of the new decree of 1803, the recommendation, made to the company, to contribute to the prosperity of the agriculture and manufacturing industry of the Islands, will appear as a limited and secondary consideration; for even if the question were carried to extremes, it could never extend to any more than the application of four per cent of the annual profits of the company indistinctly to both branches. If, however, any doubts still remained, the explanation or solution recently given to this question would certainly remove them; because, by the simple fact of its being expressed in the latter part of the aforesaid 43rd article, [Profit percent to go to Spain.] "That the above-mentioned four per cent was to be laid out, with the king"s approbation, in behalf of the agriculture and manufacturing industry of Spain and the Philippine Islands," it is clear that the king reserves and appropriates to himself the investment of the amount to be deducted from the general dividends, in order to apply it where and how may be deemed most advisable. Consequently, far from considering the company in that respect under an obligation to contribute to the improvement of the Philippines exclusively, the only thing that can be required of them, when their charter is withdrawn, is, the repayment to the royal treasury of the four per cent on their profits, for a purpose so vaguely defined. In following up this same train of argument, it would seem that, in order to render the amount to be deducted from the eventual profits of the company, in the course of time, a productive capital in the hands of the sovereign, the funds of the society not only ought not to be diverted to the continuation of projects which consume them, but, on the contrary, it is necessary to place at their disposal the direct means by which these funds can be increased, in order to make up to the company in some measure the enormous losses experienced of late years, and at once free their commerce from the shackles with which it has. .h.i.therto been obstructed.

[Need of special privileges] Finally, after twenty-four years of impotent and gratuitous efforts in the Philippines, and of the most obstinate opposition on the part of their rivals, it is now time for the company, by giving up the ungrateful struggle, to reform in every respect their expensive establishment in Manila, and to direct their princ.i.p.al endeavors to carry into effect the project so imperfectly traced out in the new decree of 1803. The opinion of the most vehement enemies of the privileged bodies tacitly approves this exception in their favor. Adam Smith, avowedly hostile to all monopolies, feels himself compelled to confess that, "without the incentives which exclusive companies offer to the individuals of a nation carrying on little trade, possibly their confined capitals would cease to be destined to the remote and uncertain enterprises which const.i.tute a commerce with the East Indies."

[Spanish commerce in its infancy.] Our commerce, compared with that of other nations, notwithstanding what may be said on this subject, is most a.s.suredly yet in a state of infancy. That with Asia, more especially, with the exception of the Royal Company, is almost unknown to all other cla.s.ses. If it is, therefore, wished to exclude our many rivals from so lucrative a branch of trade as that which const.i.tutes supplies for the consumption of the Peninsula and its dependencies, the means are obvious. The most material fact is in fact already done. The navigation to the various ports of Asia is familiar to the company"s navy; their factors and clerks have acquired a practical knowledge of that species of trade, essential to the undertaking, as well as such information as was at first unknown; but, after the great misfortune this body has experienced, it will be indispensably necessary to aid and invigorate them with large supplies of money, following the example of other governments in similar cases; in order that the successful issue of their future operations may compensate their past losses, and worthily correspond with the magnitude of the object.

[Philippines a burden to Spain.] This Asiatic colony, although considered as conferring great l.u.s.tre on the crown and name of our monarch, by exhibiting the vast extent of the limits of his dominions, has in reality been, during a long series of years, a true burden to the government, or at least, a possession whose chief advantages have redounded in favor of other powers, rivals of our maritime importance. Notwithstanding all that has been said on the score of real utility, certain it is, that the Philippine establishment has cost the treasury large sums of money; although, within the last twenty-five or thirty years, it must be confessed that the public revenues has experienced a considerable increase, and, of itself, has become an object of some consequence to the state.

[Profit from tobacco monopoly and foreign trade.] Among the various causes which have contributed to produce so favorable an alteration, the chief one have been the establishment of the tobacco monopoly, on behalf of the crown, and the opening of the port of Manila to the flag of other nations, at peace with Spain. The first has considerably increased the entries into the public treasury, and the second has tended to multiply the general ma.s.s of mercantile operations, independent of the other beneficial effects this last measure must have produced in a country, whose resources, trade and consumption had, from the time of the conquest, experienced the fatal shackles imposed by jealousy and ignorance.

[Improvement in public finances.] The improved aspect the colony soon a.s.sumed, by the introduction of this new system, as was natural, awakened the attention of ministers, and induced them more easily to consent to the measures subsequently proposed to them, princ.i.p.ally intended to place those distant dominions on a footing of permanent security, so as to enable them to repel any fresh attempts on the part of an enemy. As, however, the productions of the country increased, the public expenses also became greater, although always in a much smaller proportion, with the exception of the interval between the years 1797 and 1802, when the government, fearful of a second invasion, was compelled, at its own expense, to provide against the danger with which these Islands were then threatened. If, therefore, as appears from the official reports of the treasurer-general, Larzabal, in my possession, the receipts at the treasury, in 1780, amounted only to $700,000 including the situado, or annual allowance for the expenses of government sent from New Spain, and after the ordinary charges of administration had been paid, a surplus of $170,000 remained in the hands of the treasurer; at present we have the satisfaction

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