V. The Nineteenth Century and Economic Development
Towards the close of the eighteenth century there were events which indicated the coming of greater liberty. Direct communication was established in 1765 between Manila and Spain by means of a warship which was to sail annually from Cadiz, with European goods, and to come back loaded, not only with the products of the Philippines, but also with Oriental merchandise, including goods from China and Japan. However, the innovation was not well received in Manila, due perhaps to the monopolistic habit of the merchants, and, in 1783, these annual voyages were discontinued.[1]
The coming of Governor José de Basco y Vargas marked a new era in the economic history of the country, for two important events happened during his term: the establishment of the Sociedad Económica de Amigos del Pais, in 1781, and of the Real Compañía de Filipinas, in 1785. These may be considered to be the most serious attempts of Spain throughout her rule, to develop the natural resources of the Philippines.