A Visit to the Philippine Islands

by John Bowring

EXPORTS FROM MANILA FOR 1858.

		United States, Atlantic.	California.	Continent of Europe.	GreatBritain.
Hemp	Peculs.	289,953	10,140	6,650	105,633
Sugar	Peculs. ,,	16,030	45,038	17,252	315,768
Sapan Wood	Peculs. ,,	10,594		2,491	21,295
Indigo	Qtls.	503		171	58
Leaf Tobacco	Qtls. ,,			82,120
Cigars	M̄.	4,613	3,416	209	8,244
Coffee	Peculs.	2,389	236	13,882	81
Cordage	Peculs. ,,			2,751
Hides	Peculs. ,,	999		113	3,619
Hide Cuttings	Peculs. ,,	2,929			62
Mother-of-Pearl Shell	Peculs. ,,			1,205	1,351
Tortoise-Shell	Catties.			260	1,931
Grass Cloth	Pieces.	57,224		547
Gum Almasiga	Peculs.			2,113	3,571
Cowries	Peculs. ,,				2,773
Rice	Cavans.
Paddy	Cavans. ,,
Beche de Mer	Peculs.
Liquid Indigo	Jars.
Buffalo Horns	Peculs.			11	387
Birds’ Nests	Peculs. ,,
Arrowroot	Peculs. ,,		170	15	368
Gold Dust	Taels.
Canes	M̄.			11	610
Cow Bones	Peculs.
Hats	M̄.				408
Molave Logs	M̄. ,,			58

EXPORTS FROM MANILA FOR 1858. (Continued.)

		Australia.	Batavia.	Singapore, and BritishIslands.	South America, Cape of Good Hopeand Pacific Islands.	China.	Total.
Hemp			1,100		28	412,504
Sugar	147,369			170	15,506	557,133
Sapan Wood		1,200	4,607		27,031	67,218
Indigo						732
Leaf Tobacco						82,120
Cigars	18,504	12,552	24,489	115	13,000	85,142
Coffee	6,764	55			1,556	24,963
Cordage	10,150	999	3,293		4,606	21,799
Hides					1,694	6,425
Hide Cuttings					884	3,875
Mother-of-Pearl Shell					36	2,592
Tortoise-Shell					314	2,505
Grass Cloth			350			58,121
Gum Almasiga	14		1,674			7,372
Cowries			165			2,938
Rice					21,361	21,361
Paddy					1,300	1,300
Beche de Mer					3,889	3,889
Liquid Indigo					4,805	4,805
Buffalo Horns						398
Birds’ Nests					66	66
Arrowroot	263					816
Gold Dust					1,721	1,721
Canes						620
Cow Bones					906	906
Hats			120		1,372	1,900
Molave Logs					1,203	1,259

In the year 1855, Don Sinibaldo de Mas, having been charged with an official mission of inquiry into the state of these islands, published an article on the revenues of the Philippines, addressed to the finance minister of Spain.[1]

He begins his report by contrasting the population and commerce of Cuba with that of the Philippines; stating that Cuba, with less than a million of inhabitants, has a trade of 27,500,000 dollars, while the Philippines, which he says contained, in 1850, 4,000,000 of people in a state of subjection and 1,000,000 unsubdued, had a trade of less than 5,000,000 of dollars. He calculates the coloured population of Cuba at 500,000; the white population of the Philippines at from 7,000 to 8,000 persons. He deduces that, if the produce of the Philippines were proportioned to that of Cuba, it would be of the value of 250,000,000 dollars, and that the revenue should be 48,000,000 dollars, instead of about 9,500,000 dollars.

He avers that the soil is equal in its productive powers to any in the world; that the quality of the produce—sugar, coffee, tobacco, indigo, cocoa and cotton—is most excellent; that it possesses almost a monopoly of abacá (Manila hemp); and he goes on to consider the means of turning these natural advantages to the best account.

He altogether repudiates any extension of the existing system, or augmentation of taxation in its present forms; and states, what is most true, that to the development of agriculture, industry and commerce the Philippines must look for increased prosperity.

His three proposals are:—

1. Opening new ports to foreign trade.

2. Emancipating the production, manufacture and sale of tobacco.

3. Increasing the population of the islands.

By a royal decree, dated 31st March, 1855, three additional ports were opened to foreign trade—Zamboanga (Mindanao), Iloilo (Panay), and Sual (Luzon). The results have not responded to anticipations. One reason is obvious—custom-house officers, custom-house restrictions, custom-house vexations accompanied the seemingly liberal legislation. These are sufficient to check, if not to crush, the growth of intercourse. I doubt if in either of the new ports the custom-house receipts cover the costs of collection. The experiment should have been a free-trade experiment, but the jealousies and fears of the capital were probably influential. It ought not to have been forgotten that the new ports, charged with all the burdens which pressed upon Manila, offered none of its facilities, the creation of many generations—wharves and warehouses, accomplished merchants, capital, foreign settlers, assured consumption of imports and supply of exports; these counterbalanced the cost of conveyance of goods to or from the capital, while, on the other hand, the introduction of a custom-house has prejudiced the trade which previously existed—as, for example, the call of whalers at Zamboanga, unwilling to submit to the fiscal exactions now introduced. But if every port in the Philippines were made free from custom-houses a great impulse would be given to industry, commerce and shipping; the loss to the treasury would be inconsiderable, for the net proceeds of the customs duties is very insignificant, while other sources of revenue would be undoubtedly increased by the impulse given to the general prosperity. De Mas states that the extension of the trade of Cuba from the Havana to other ports led to an augmentation in its value from 2,000,000 to 30,000,000 dollars.

Two plans are suggested by Señor De Mas for the emancipation of the tobacco cultivation and manufacture from the existing State monopoly. One, the levying a heavy land tax on all lands devoted to the produce; the other, the imposition of a duty on exportation. He estimates that a baleta of land (1,000 brazas square) gives 1,500 plants, and 4 to 5 cwt. of tobacco, saleable at 4 to 5 dollars per quintal. The cost of manufacturing 14,000 cigars, which represent 1 cwt., 5¼ dollars, and boxes for packing, 3½ dollars. He says the value of the cigars is 6½ dollars per box (it is now considerably more), in which case the profit would be 77¼ dollars, and proposes a duty of 70 dollars per cwt., which is more than five times the cost of the article. He gives satisfactory reasons for the conclusion that cigars would be made much more economically by the peasantry than by the government, shows that the cost of the machinery of administration might be greatly diminished, asserts that the Indians employed at home would be satisfied with lower gains than the wages paid by the government, and supposes that the unoccupied houses of the natives would be dedicated to the making of cigars as a pleasant and profitable domestic employment. It may be doubted whether he estimates at its full value the resistance which the indolent habits of the Indian oppose to voluntary or spontaneous labour; but the conclusion I have reached by not exactly the same train of reasoning is the same as that arrived at by my friend whom I have been quoting, namely, that the government monopoly is less productive than free cultivation, manufacture and sale might become; that a reduction of prices would extend demand, leave larger benefits to the treasury and confer many advantages upon the people; and that the arguments (mostly of those interested in the monopoly) in favour of the existing system are not grounded on sound reasoning, nor supported by statistical facts.

The tobacco monopoly (estanco) was established in 1780 by Governor-General Basco; it was strongly opposed by the friars, and menaces of severe punishments were held over those who sought to escape the obligations imposed. But to the present hour there are said to be large plantations of tobacco which escape the vigilance of government, and cigars are purchaseable in many of the islands at one-fourth of the government price. The personal establishment for the protection of the tobacco monopoly consists of nearly a thousand officials and more than thirty revenue boats. It is, notwithstanding, cultivated largely in provinces where the cultivation is prohibited by law; and I find in a report from the Alcalde of Misamis (Mindanao) the following phrase: “The idea of interfering with the growth of tobacco for the benefit of the treasury must be abandoned, as the territory where it is produced is not subject to Spanish authority.”

Attempts were made a few years ago to encourage the planting of tobacco in the province of Iloilo, by a company which made advances to the Indians; but the enterprise, discouraged by the government, failed, and I found, when I visited the locality, the warehouses abandoned and the company dissolved. There have been many expeditions for the destruction and confiscation of illicit tobacco; and on more than one occasion insurrections, tumults, serious loss of life and very doubtful results have followed these interferences. The statistical returns show that the consumption of the State tobacco varies considerably in the different provinces, being influenced by the greater or less difficulty of obtaining the contraband article.

There have been divers projects for augmenting the population of the Philippines—from China, from Switzerland, from Borneo and even from British India. The friars have never looked with complacency on any of these schemes. They all present elements which would not easily he subjected to ecclesiastical influence. The Chinese would not be willing cultivators of the soil if any other pursuit should promise greater profits, and it is quite certain that the indolent Indian will nowhere be able to compete with the industrious, persevering and economical Chinese. Many suggestions have been made for the introduction of Chinese women, with a view of attaching Chinese families to the soil; but hitherto nothing has sufficed to conquer the abhorrence with which a Chinese female contemplates the abandonment of her country, nor the general resistance to such abandonment on the part of the Chinese clans. Chinese female children have been frequently kidnapped for conveyance to the Philippines, and some horrible circumstances have come to the knowledge of British authorities in China, followed by the exposure and punishment of British subjects concerned in these cruel and barbarous deeds. An establishment of a sisterhood in China, called that of the Sainte Enfance, has been looked to as a means of christianizing female children, and conveying them to the Philippines; they have collected or purchased many orphans, but small success has attended these well-meant, but not well-directed labours. In 1855, it was stated in an official document (De Mas, p. 26) that in 1858, an annual entry of 2,500 children might be expected. The calculation has been a total mistake; the establishments in China are in a state of embarrassment and difficulty, and I am not aware that a single Chinese female has been supplied for the suggested purpose. Any number of orphans or abandoned children might be bought in the great cities of China, especially from the orphan asylums; but an increased demand would only encourage their abandonment by their mothers. These foundling hospitals are of very doubtful utility, and produce, probably, more misery than they cure.

The greatest impediment to the progress of the Philippines, and the development of their immense resources, is attributable to the miserable traditional policy of the mother country, whose jealousies tie the hands of the governors they appoint to rule; so that the knowledge and experience which are acquired in the locality are wholly subjected to the ignorance and shortsightedness of the distant, but supreme authority. Would the Spaniard but recognize the wisdom of one of their many instructive proverbs—Mas sabe el loco en su casa que cuerdo en la agena (the fool knows more about his own home than the wise man of the home of another)—more confidence might be reposed in those who are thoroughly cognizant of local circumstances and local wants. As it is, everything has to be referred to Madrid. A long delay is inevitable—an erroneous decision probable; circumstances are constantly changing, and what would have been judicious to-day may be wholly unadvisable to-morrow. Then there is the greatest unwillingness to surrender even the shadow of authority, or any of those sources of patronage which a government so enervate and corrupt as that of Spain clings to as its props and protection. Again, the uncertainty of tenure of office, which attaches to all the superior offices held under the Spanish Government, is alike calculated to demoralize and discourage. Before a governor has surveyed his territory and marked out to himself a course of action, he may be superseded under one of those multitudinous changes which grow out of the caprices of the court or the clamour of the people. It was a melancholy employment of mine to look round the collection of the various portraits of the captains-general which adorned my apartment, bearing the dates of their appointment and their supersession. Some of them only occupied their office for a few months, and were as carelessly and recklessly dismissed as a worthless weed is flung away. And there seemed no expectation of any change in this respect, for there were many blank frames made to receive the vera effigies of future excellencies. Our colonial system is wiser, as we appoint governors for six years, and, except under special circumstances, they are not dispossessed of their government. Whether there may be any moral deterioration connected with the possession of power, sufficient to counterbalance all the benefits which are furnished by long experience and local knowledge, may be a question for philosophy and statesmanship.

But other causes of backwardness are traceable to those very elements of wealth and prosperity, to which these islands must look for their future progress. A soil so feracious, a sun so bright, rains so bountiful, require so little co-operation from the aid of man that he becomes careless, indolent, unconcerned for the morrow. He has but to stretch out his hand, and food drops into it. The fibre of the aloe, which the female weaves with the simplest of looms, gives her garments; the uprights and the floors and the substantial parts of his dwelling are made of the bamboo, which he finds in superfluous abundance; while the nipa palm provides roofs and sides to his hut. Wants he has few and he cares little for luxuries. His enjoyments are in religious processions, in music and dancing, in his gallo above all. He may take possession without rent of any quantity of land which he is willing to cultivate. There is a tendency, no doubt, to improvement. Cultivation extends and good examples are not without effect.

In times of tranquillity Spain has nothing to fear for her Philippine colonies. So long as they are unmolested by foreign invaders and the government is carried on with mildness and prudence, there is little to be apprehended from any internal agitation; but I doubt the efficiency of any means of defence at the disposal of the authorities, should a day of trouble come. The Indian regular forces might for some time be depended on; but whether this could be anticipated of the militia or any of the urban auxiliaries is uncertain. The number of Spaniards is small—in most of the islands quite insignificant; indolence and indifference characterize the indigenous races; and if, on the one hand, they took no part in favour of intrusive strangers, on the other, they could not be looked to for any patriotic or energetic exertions on behalf of their Spanish rulers. They have, indeed, no traditions of former independence—no descendants of famous ancient chiefs or princes, to whom they look with affection, hope or reverence. There are no fragments left of hierarchies overthrown. No Montezumas, no Colocolos, are named in their songs, or perpetuated in their memories. There are no ruins of great cities or temples; in a word, no records of the remote past. There is a certain amount of dissatisfaction among the Indians, but it is more strongly felt against the native gobernadorcillos—the heads of barangay—the privileged members of the local principalia—when exercising their “petty tyrannies,” than against the higher authorities, who are beyond the hearing of their complaints. “The governor-general is in Manila (far away); the king is in Spain (farther still); and God is in heaven (farthest of all).” It is a natural complaint that the tribute or capitation tax presses equally on all classes of Indians, rich or poor. The heads of barangay, who are charged with its collection, not unfrequently dissipate the money in gambling. One abuse has, however, been reformed—the tribute in many provinces was formerly collected in produce, and great were the consequent exactions practised upon the natives, from which the treasury obtained no profit, but the petty functionaries much. I believe the tax is now almost universally levied in money. All Spaniards, all foreigners (excepting Chinese), and their descendants are exempted from tribute. One of the most intelligent of the merchants of Manila (Don Juan Bautista Marcaida) has had the kindness to furnish me with sundry memoranda on the subject of the capabilities of the Philippine Islands, and the means of developing them. To his observations, the result of careful observation, much experience and extensive reading, I attach great value. They are imbued with some of the national prejudices of a Spanish Catholic, in whose mind the constitution of the Romish Church is associated with every form of authority, and who is unwilling to see in that very constitution, and its necessary agencies, invincible impediments to the fullest progress of intellect—to the widest extension of agricultural, manufacturing and commercial prosperity—in a word, to that great agitation of the popular mind, to which Protestant nations owe their religious reforms, and their undoubted superiority in the vast field of speculation and adventure.

He says:—“The social organization of the Philippines is the most paternal and civilizing of any known in the world; having for its basis the doctrines of the Gospel, and the kind and fatherly spirit of the Laws of the Indies.” It may be admitted, in reference to the legislation of the colonies of many nations, that the Spanish code is comparatively humane and that the influence of the Romish clergy has been frequently and successfully excited for the protection and benefit of conquered natives, and of imported slaves; but M. Marcaida goes on to acknowledge and point out “the torpid and unimproving character of the existing system,” and to demand important changes for the advancement of the public weal.

“The government moves slowly, from its complicated organization, and from the want of adequate powers to give effect to those reforms which are suggested by local knowledge, but which are overruled by the unteachable ignorance, or selfish interests, or political intrigues of the mother country.”

As regards the clergy, he thinks the administration generally good, but that the progress of time and altered circumstances necessitate many important changes in the distribution of the ecclesiastical authority, a new arrangement of the pueblos, a better education of the church functionaries, a great augmentation of the number of parochial priests (many of whom have now cures varying from 3,000 to 60,000 souls). He would have the parish clergyman both the religious and secular instructor of his community, and for this purpose requires that he should be becomingly and highly educated—a consummation for which the government would have some difficulty in providing the machinery, and for which assuredly the Church would not lend its co-operation.

“For the administration of justice, the Philippines have one supreme and forty-two subordinate tribunals. The number is wholly insufficient for the necessities of 5,000,000 of inhabitants scattered over 1,200 islands, and occupying so vast a territorial space.” There can be no doubt that justice is often inaccessible, that it is costly, that it is delayed, defeated, and associated with many vexations. Spain has never been celebrated for the integrity of its judges, or the purity of its courts. A pleyto in the Peninsula is held to be as great a curse as a suit in Chancery in England, with the added evil of want of confidence in the administrators of the law. Their character would hardly be improved at a distance of 10,000 miles from the Peninsula; and if Spain has some difficulty in supplying herself at home with incorruptible functionaries, that difficulty would be augmented in her remotest possessions. There seemed to me much admirable machinery in the traditional and still existing usages and institutions of the natives. Much might, no doubt, be done to lessen the dilatory, costly and troublesome character of lawsuits, by introducing more of natural and less of technical proceedings; by facilitating the production and examination of evidence; by the suppression of the masses of papel sellado (documents upon stamped paper); by diminishing the cost and simplifying the process of appeal; and, above all, by the introduction of a code applicable to the ordinary circumstances of social life.

He thinks the attempts to conglomerate the population in towns and cities injurious to the agricultural interests of the country; but assuredly this agglomeration is friendly to civilization, good government and the production of wealth, and more likely than the dispersion of the inhabitants to provide for the introduction of those larger farms to which the Philippines must look for any very considerable augmentation of the produce of the land.

“The natural riches of the country are incalculable. There are immense tracts of the most feracious soil; brooks, streams, rivers, lakes, on all sides; mountains of minerals, metals, marbles in vast variety; forests whose woods are adapted to all the ordinary purposes of life; gums, roots, medicinals, dyes, fruits in great variety. In many of the islands the cost of a sufficiency of food for a family of five is only a cuarto, a little more than a farthing, a day. Some of the edible roots grow to an enormous size, weighing from 50 to 70 lbs.:—gutta-percha, caoutchouc, gum-lac, gamboge, and many other gums abound. Of fibres the number is boundless; in fact, the known and the unknown wealth of the islands only requires fit aptitudes for its enormous development.

“With a few legislative reforms,” he concludes, “with improved instruction of the clergy, the islands would become a paradise of inexhaustible riches, and of a well-being approachable in no other portion of the globe. The docility and intelligence of the natives, their imitative virtues (wanting though they be in forethought), make them incomparably superior to any Asiatic or African race subjected to European authority. Where deep thought and calculation are required, they will fail; but their natural dispositions and tendencies, and the present state of civilization among them, give every hope and encouragement for the future.”[2]

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[1] Articulo sobre las Rentas de Filipinas y los medios de aumentarlas, por D. Sinibaldo de Mas (afterwards Minister Plenipotentiary of Spain in China). Madrid, 1853. [↑]

[2] M. Marcaida considers the best historical and descriptive authorities to be the Fathers Blanco, Santa Maria, Zuñiga, Concepcion, and Buzeta. He speaks highly of Don Sinibaldo de Mas’ Apuntes, of which I have largely availed myself. [↑]

CHAPTER XXI.

FINANCE, TAXATION, ETC.

The gross revenues of the Philippines are about 10,000,000 dollars. The budget for 1859 is as follows:—

Receipts.		Expenditure.
	Dollars.		Dollars.
Contributions and taxes	1,928,607·92	Grace and Justice	679,519·11
Custom-houses	600,000·00	War	2,216,669·44
Monopolies	7,199,950·59	Finance (Hacienda)	5,367,829·83
Lotteries	253,500·00	Marine	904,331·27
State property	12,118·59	Government	272,528·62
Uncertain receipts	21,826·00	Remitted to and paid for Spain	1,011,850·00
Marine	1,338·00
Total	10,017,341·10	Total	10,452,728·27

Thus about one-tenth of the gross revenue is received by the mother country in the following shapes:—Salaries of Spanish consuls in the East, 22,500 dollars; remittances to Spain and bills drawn by Spain, 680,600 dollars; tobacco and freights, 168,750 dollars; credits to French government for advances to the imperial navy, 140,000 dollars.

Of the direct taxes, 68,026·77 dollars are paid as tribute by the unconverted natives, 114,604·50 dollars by the mestizos (half-races), 136,208·78 dollars by the Chinese, and 1,609,757·87 dollars by the Indians (or tribes professing Christianity).

The produce of the customs is so small, and the expenses of collection so great—the cost of the coast and inland preventive service alone being 265,271·99 dollars; general and provincial administrations, between 70,000 and 80,000 dollars—that I am persuaded it would be a sound, wise and profitable policy to abandon this source of taxation altogether, and to declare all the ports of the Philippines free.

I have also come to the conclusion that the monopolies, which give a gross revenue to the treasury of more than 7,000,000 dollars, are, independently of their vicious and retardatory action upon the public weal, far less productive than taxation upon the same articles might be made by their emancipation from the bonds of monopoly. I leave here out of sight the enormous amount of fraud and crime, and the pernicious effects upon the public morals of a universal toleration of smuggling, as well as the consideration of all the vexations, delays, checks upon improvement, corruption of officials and the thousand inconveniences of fiscal interference at every stage and step; and only look at the acknowledged cost of the machinery—it amounts to about 5,000,000 dollars—so that the net produce to the State scarcely exceeds 2,000,000 dollars.

The whole receipt from the tobacco monopoly is 5,097,795 dollars. The expenses for which this department is debited are (independently of the proportion of the general charges of administration)—

		Dollars.	Cents.
Personal—
	Collection of Tobaccos	24,604	0
	Manufacture of Cigars	44,366	0
Materiel—
	Collection of Tobacco	66,741	75
	Manufactures of Cigars	6,888	0
	Purchase of Tobacco	1,412,503	30
	Paper and other charges	62,865	3
	Cost of sorting Tobacco	13,200	29
	Cost of manufacturing	1,171,262	73
	Charges for conveyance	259,321	76
	Boxes, packing, warehousing, &c.	150,000	0
		3,211,752	86

So that the net rendering of this most valuable production is only 1,886,042·14 dollars, or 37 per cent. upon the gross amount, 63 per cent. being expended on the production of the tobacco and manufacture of the cigars. I am of opinion that from 4,000,000 to 5,000,000 dollars might be realized with immense benefit to the public by a tax upon cultivation, or the imposition of a simple export duty, or by a union of both. Production would thus be largely extended, prices moderated to the consumer and the net revenue probably more than doubled.

From the produce of the lottery, 253,500 dollars, there have to be deducted—expenses of administration, 4,472 dollars; prizes paid, 195,000 dollars; prizes not claimed, 1,000 dollars; commission on sales of tickets, 4,680 dollars; making in all, 205,152 dollars; so that this fertile source of misery, disappointment, and frequently of crime, does not produce a net income of 50,000 dollars to the State. It may well be doubted if such a source of revenue should be maintained. The revenue derived from cock-fights, 86,326·25 dollars, is to some extent subject to the same condemnation, as gambling is the foundation of both, but in the case of the galleras the produce is paid without deduction into the treasury.

In the Bisayas palm wine has been lately made the object of a State monopoly which produces 324,362 dollars, but is very vexatious in its operation and much complained of by the Indians. The tax on spirituous liquors gives 1,465,638 dollars. The opium monopoly brings 44,333·34 dollars; that of gunpowder, 21,406 dollars. Of smaller sources of income the most remarkable are—Papal bulls, giving 58,000 dollars; stamps, 39,600 dollars; fines, 30,550 dollars; post-office stamps, 19,490 dollars; fishery in Manila harbour, 6,500 dollars.

It is remarkable that there are no receipts from the sale or rental of lands. Public works, roads and bridges are in charge of the locality, while of the whole gross revenue more than seven-tenths are the produce of monopolies.

Of the government expenditure, under the head of Grace and Justice, the clergy receive 488,329·28 dollars, and for pious works 39,801·83; Jesuit missions to Mindanao, 25,000. The cost of the Audiencia is 65,556; of the alcaldes and gobernadores, 53,332 dollars.

In the war department the cost of the staff is 154,148·80 dollars; of the infantry, 857,031·17 dollars; cavalry, 52,901·73 dollars; artillery, 192,408·71 dollars; engineers, 32,173 dollars; rations, 140,644·31 dollars; matériel, 149,727·10 dollars; transport, 112,000 dollars; special services, 216,673·89 dollars. In the finance expenses the sum of 310,615·75 dollars appears as pensions.

The personnel of the marine department is 235,671·82 dollars; cost of building, repairing, &c., 266,813·17 dollars; salaries, &c., are 155,294·98 dollars; rations, 190,740·84 dollars.

The governor-general receives, including the secretariat, 31,056 dollars; expenses, 2,500 dollars. The heaviest charge in the section of civil services is 120,000 dollars for the mail steamers between Hong Kong and Manila, and 35,000 dollars for the service between Spain and Hong Kong. There is an additional charge for the post-office of 6,852 dollars. The only receipt reported on this account is for post-office stamps, 19,490 dollars.

I have made no reference to the minor details of the incomings and outgoings of Philippine finance. The mother country has little cause to complain, receiving as she does a net revenue of about 5s. per head from the Indian population. In fact, about half of the whole amount of direct taxation goes to Spain, independently of what Spanish subjects receive who are employed in the public service. The Philippines happily have no debt, and, considering that the Indian pays nothing for his lands, it cannot be said that he is heavily taxed. But that the revenues are susceptible of immense development—that production, agricultural and manufactured, is in a backward and unsatisfactory state—that trade and shipping might be enormously increased—and that great changes might be most beneficially introduced into many branches of administration, must be obvious to the political economist and the shrewd observer. The best evidence I can give of a grateful remembrance of the kindnesses I received will be the frank expression of opinions friendly to the progress and prosperity of these fertile and improveable regions. Meliorations many and great have already made their way; it suffices to look back upon the state of the Philippines, “cramped, cabined and confined” as they were, and to compare them with their present half-emancipated condition. No doubt Spain has much to learn at home before she can be expected to communicate commercial and political wisdom to her dependencies abroad. But she may be animated by the experience she has had, and at last discover that intercourse with opulent nations tends not to impoverish, but to enrich those who encourage and extend that intercourse.

CHAPTER XXII.

TAXES.

Down to the year 1784 so unproductive were the Philippines to the Spanish revenues, that the treasury deficit was supplied by an annual grant of 250,000 dollars provided by the Mexican government. A capitation tax was irregularly collected from the natives; also a custom-house duty (almojarifango) on the small trade which existed, and an excise (alcabala) on interior sales. Even to the beginning of the present century the Spanish American colonies furnished the funds for the military expenses of Manila. In 1829 the treasury became an independent branch of administration. Increase of tribute-paying population, the tobacco and wine monopoly, permission given to foreigners to establish themselves as merchants in the capital, demand for native and consumption of foreign productions, and a general tendency towards a more liberal policy, brought about their usual beneficial results; and, though slowly moving, the Philippines have entered upon a career of prosperity susceptible of an enormous extension.

The capitation tax, or tribute paid by the natives, is the foundation of the financial system in the Philippines. It is the only direct tax (except for special cases), makes no distinction of persons and property, has the merit of antiquity, and is collected by a machinery provided by the Indians themselves. Originally it was levied in produce, but compounded for by the payment of a dollar (eight reales), raised afterwards to a dollar and a quarter, and finally the friars have managed to add to the amount an additional fifty per cent., of which four-fifths are for church, and one-fifth for commercial purposes.

The tribute is now due for every grown-up individual of a family, up to the age of sixty; the local authorities (cabezas de barangay), their wives and eldest or an adopted son, excepted. A cabeza is charged with the collection of the tribute of his cabaceria, consisting generally of about fifty persons. There are many other exceptions, such as discharged soldiers and persons claiming exemptions on particular grounds, to say nothing of the uncertain collections from Indians not congregated in towns or villages, and the certain non-collections from the wilder races. Buzeta estimates that only five per cent. of the whole population pay the tribute. Beyond the concentrated groups of natives there is little control; nor is the most extended of existing influences—the ecclesiastical—at all disposed to aid the revenue collector at the price of public discontent, especially if the claims of the convent are recognized and the wants of the church sufficiently provided for, which they seldom fail to be. The friar frequently stands between the fiscal authority and the Indian debtor, and, as his great object is to be popular with his flock, he, when his own expectations are satisfied, is naturally a feeble supporter of the tax collector. The friar has a large direct interest in the money tribute, both in the sanctorum and the tithe; but the Indian has many means of conciliating the padre and does not fail to employ them, and the padre’s influence is not only predominant, but it is perpetually present, and in constant activity. There is a decree of 1835 allowing the Indians to pay tribute in kind, but at rates so miserably low that I believe there is now scarcely an instance of other than metallic payments. The present amount levied is understood to be—

For the Government	10	rials of plate.
For the tithe	1	rials ,, of ,, plate. ,,
Community Fund (Caja deComunidad)	1	rials ,, of ,, plate. ,,
Sanctorum (Church)	3	rials ,, of ,, plate. ,,
	15rials, or 1⅞ dollar.

Which at 4s. 6d. per dollar makes a capitation tax of about 8s. 6d. per head.

The Sangleys (mestizos of Chinese origin) pay 20 rials government tribute, or 25 rials in all, being about 14s. sterling.

There are some special levies for local objects, but they are not heavy in amount.

The Chinese have been particularly selected to be the victims of the tax-gatherer, and, considering the general lightness of taxation, and that the Chinese had been invited to the Philippines with every assurance of protection, and as a most important element for the development of the resources of the country, the decree of 1828 will appear tolerably exacting. It divides Chinese settlers into three classes:—

Merchants who are to pay a monthly tax of10 dollars	£27	0	per annum.
Shopkeepers who are to pay a monthly tax of 4dollars	10	16	per ,, annum. ,,
All others who have to pay a monthlytax of 2 dollars	5	8	per ,, annum. ,,

Not consenting to this, and if unmarried, they might quit the country in six months, or pay the value of their tribute in labour, and they were, after a delay of three months in the payment of the tax, to be fineable at 2 rials a day. At the time of issuing the decree there were 5,708 Chinese in the capital, of whom immediately 800 left for China, 1,083 fled to the mountains and were kindly received and protected by the natives, 453 were condemned to the public works, and the rest left in such a condition of discontent and misery that in 1831 the intendente made a strong representation to the government in their favour, and in 1834 authority was given to modify the whole fiscal legislation as regarded the Chinese.

The Chinese, on landing in Manila, whether as sailors or intending settlers, are compelled to inhabit a public establishment called the Alcaiceria de San Fernando, for which payment is exacted, and there is a revenue resulting to the State from the profits thereof.

CHAPTER XXIII.

OPENING THE NEW PORTS OF ILOILO, SUAL AND ZAMBOANGA.

The opening of the ports of Sual, Iloilo and Zamboanga to foreign trade, was of course intended to give development to the local interests of the northern, central and southern portions of the archipelago, the localities selected appearing to offer the greatest encouragements, and on the determination of the Spanish government being known, her Britannic Majesty’s Consul at Manila recommended the appointment of British vice-consuls at Sual and Iloilo, and certainly no better selections could have been made than were made on the occasion, for the most competent gentleman in each of the ports was fixed upon.

Mr. Farren’s report, which has been laid before Parliament, very fairly represents the claims of the new ports and their dependencies; each has its special recommendations. The population of the northern division, comprising Pangasinan, the two Ilocos (North and South), Abra and La Union, may be considered among the most industrious, opulent and intelligent of the Philippines. Cagayan produces the largest quantity of the finest quality of tobacco.

The central division, the most thickly peopled of the whole, has long furnished Manila with a large proportion of its exports, which, in progress of time, will, no doubt, be sent directly from the ports of production to those of consumption; while the southern, and the least promising at present, has every element which soil and climate can contribute to encourage the cultivation of vast tracts hitherto unreached by the civilizing powers of commerce and colonization.

The population in the northern division is large. In Ilocos, South and North, there are twelve towns with from 5,000 to 8,000 inhabitants; seven with 8,000 to 12,000; seven with from 12,000 to 20,000; and three with from 20,000 to 33,000. In Pangasinan, nine towns with from 5,000 to 12,000; seven with from 12,000 to 20,000; and three with from 20,000 to 26,000 inhabitants. The capital (Cabazera) of Cagayan has above 15,000 inhabitants. The middle zone presents a still greater number of populous places. Zebu has fourteen towns with 5,000 to 10,000 inhabitants, and nine towns of from 10,000 to 12,000; and in Iloilo there are seven towns with from 5,000 to 10,000 inhabitants; fourteen towns with from 10,000 to 20,000; seven with from 20,000 to 30,000; two with from 30,000 to 40,000; and one (Haro) with 46,000 inhabitants.

These statistics for 1857 show a great increase of population since Mr. Farren’s returns and prove that the removal of restrictions has acted most beneficially upon the common weal, imperfect as the emancipation has been. There cannot be a doubt that more expansive views would lead to the extension of a liberal policy, and that mines of unexplored and undeveloped treasure are to be found in the agricultural and commercial resources of these regions. The importance of direct intercourse with foreign countries is increased by the fact that, for many months of the year, the monsoons interrupt the communication of the remoter districts with the capital. The old spirit of monopoly not only denied to the producer the benefit of high prices, and to the consumer the advantage of low prices, but the trade itself necessarily fell into the hands of unenterprising and sluggish merchants, wholly wanting in that spirit of enterprise which is the primum mobile of commercial prosperity. For it is the condition, curse and condemnation of monopoly, that while it narrows the vision and cramps the intellect of the monopolist, it delivers the great interests of commerce to the guardianship of an inferior race of traders, excluding those higher qualities which are associated with commercial enterprise when launched upon the wide ocean of adventurous and persevering energy. How is the tree to reach its full growth and expansion whose branches are continually lopped off lest their shadows should extend, and their fruit fall for the benefit of others than its owner?

But in reference to the beneficial changes which have been introduced, their value has been greatly diminished by the imperfect character of the concessions. They should have been complete; they should, while opening the ports to foreign trade, have allowed that trade full scope and liberty. The discussions which have taken place have, however, been eminently useful, and the part taken in favour of commercial freedom by Mr. Bosch and Mr. Loney, both British vice-consuls, has been creditable to their zeal and ability. In the Philippines, the tendency of public opinion is decidedly in the right direction. The resistance which for so many years, or even centuries, opposed the admission of strangers to colonial ports, no doubt was grounded upon the theory that they would bring less of trade than they would carry away—that they would participate in the large profits of those who held the monopoly, but not confer upon them any corresponding or countervailing advantages.

Mr. Farren states that, in 1855, “the British trade with the Philippines exceeded in value that of Great Britain with several of the States of Europe, with that of any one State or port in Africa, was greater than the British trade with Mexico, Columbia, or Guatemala, and nearly ranked in the second-class division of the national trade with Asia, the total value of exports and imports approaching three millions sterling. The export of sugar to Great Britain and her colonies was, in 1854, 42,400 tons, that to Great Britain alone having gradually grown upon the exports of 1852, which was 5,061 tons, to 27,254 tons, which exceeds the exports to the whole world in 1852. The imports of British goods and manufactures, which was 427,020l. in value in 1845, exceeded 1,000,000l. sterling in 1853.” It still progresses, and the removal of any one restriction, the encouragement of any one capability, will add to that progress, and infallibly augment the general prosperity.

The statistics of the island of Panay for 1857 give to the province of Iloilo 527,970; to that of Capiz, 143,713; and to that of Antique, 77,639; making in all 749,322, or nearly three-quarters of a million of inhabitants. The low lands of Capiz are subject to frequent inundations. It has a fine river, whose navigation is interfered with by a sandbank at its mouth. The province is productive, and gives two crops of rice in the year. The harbours of Batan and of Capiz (the cabacera) are safe for vessels of moderate size. The inhabitants of Antique, which occupies all the western coast of Panay, are the least industrious of the population of the island. The coast is dangerous. It has two pueblos, Bugason and Pandan, with more than 10,000 souls. The cabacera San José has less than half that number. The roads of the provinces are bad and communications with Iloilo difficult. The lands are naturally fertile, but have not been turned to much account by the Indians. There are only forty-two mestizos in the province. There is a small pearl and turtle fishery, and some seaslugs are caught for the Chinese market.

Iloilo has, no doubt, been fixed on as the seat of the government, from the facilities it offers to navigation; but it is much smaller, less opulent and even less active than many of the towns in its neighbourhood. The province of Iloilo is, on the whole, perhaps the most advanced of any in the Philippines, excepting the immediate neighbourhood of the capital. It has fine mountainous scenery, richly adorned with forest trees, while the plains are eminently fertile. All tropical produce appears to flourish. The manufacturing industry of the women is characteristic, and has been referred to in other places, especially with reference to the extreme beauty of the piña fabric. Of the mode of preparing the fabric Mallat gives this account:—

“It is from the leaves of the pine-apple—the plant which produces such excellent fruits—that the white and delicate threads are drawn which are the raw material of the nipis or piña stuffs. The sprouts of ananas are planted, which sometimes grow under the fruit to the number of a dozen; they are torn off, and are set in a light soil, sheltered, if possible, and they are watered as soon as planted. After four months the crown is removed, in order to prevent the fruiting, and that the leaves may grow broader and longer. At the age of eight months they are an ell in length, and six fingers in breadth, when they are torn away and stretched out on a plank, and, while held by his foot, the Indian with a piece of broken earthenware scrapes the pulp till the fibres appear. These are taken by the middle, and cautiously raised from one end to the other; they are washed twice or thrice in water, dried in the air and cleaned; they are afterwards assorted according to their lengths and qualities. Women tie the separate threads together in packets, and they are ready for the weaver’s use. In the weaving it is desirable to avoid either too high or too low a temperature—too much drought, or too much humidity—and the most delicate tissues are woven under the protection of a mosquito net. Such is the patience of the weaver, that she sometimes produces not more than half an inch of cloth in a day. The finest are called pinilian, and are only made to order. Ananas are cultivated solely for the sake of the fibre, which is sold in the market. Most of the stuffs are very narrow; when figured with silk, they sell for about 10s. per yard. The plain, intended for embroidery, go to Manila, where the most extravagant prices are paid for the finished work.”

Mr. Vice-Consul Bosch has written an interesting report on the capabilities of the province of Pangasinan, and of Sual, its principal port. The circumference of coast is from fifty to sixty miles on the south and east of the Gulf of Lingayen. The interior abounds with facilities for water communication, and the most important river, the Agno, enters the sea at St. Isidro, about one and a half mile from Sual. The Agno has about seventy to eighty miles of internal navigation, and brings produce from the adjacent provinces of La Union and Nueva Ecija, The exports to Manila are generally made from Sual, those for China from Dagupan. Dagupan is at the mouth of a large estuary, but a bar prevents the entry of any large vessel. The want of safe anchorage is the disadvantage of all the coast of the province, with the exception of the harbour of Sual. This harbour, though small, is safe: it is nearly circular. It would hold from twelve to fifteen large vessels and thirty to forty coasters, and is well protected on every side, but there is a somewhat dangerous bank within the port.

There are only about 400 houses in Sual: they are scattered on the plain in front of the harbour, and are of wood. There are, besides, 100 Indian huts (chozas) constructed of the nipa palm. The church is a poor, provisional edifice.

Sual is exhibiting some signs of improvement. The road to the neighbouring province of Zambales is in progress. The allied forces in Cochin China have been lately drawing provisions, especially cattle, from Sual. The value of the exports from Sual, for 1858, is 670,095 dollars; the imports of foreign goods and manufactures into the three ports of the province—Dagupan, Binmaley and Lingayen—amount to 464,116 dollars, all brought by coasting vessels, of which 75 belong to the province. The largest pueblo of the province is San Carlos, with 26,376 inhabitants; the second, Binmaley, with 24,911; the third, Lingayen, with 23,063; but the population of Sual is only 3,451. Rice and sugar are the leading articles of produce exported, but there is at Calasiao a considerable manufacture of hats, cigar-cases, mats and other fabrics of the various fibres of the country. There are no large estates, nor manufactures on an extensive scale. Everything is done by small proprietors and domestic industry. There are many places where markets (called tiangues) are periodically held, and articles of all sorts brought thither for sale. It is calculated that Pangasinan could give 20,000 tons of rice for exportation, after providing for local wants. The sugar, though it might be produced abundantly, is carelessly prepared. Much wood is cut for ship-building and other purposes. On the arrival of the N. E. monsoon commercial enterprise begins and many shipments take place; the roads are passable, the warehouses filled with goods: this lasts till the end of June or July. Then come on the heavy rains: the vessels for the coasting trade are laid up for the season; the rivers overflow; most of the temporary bridges are carried away by the floods; everybody is occupied by what the Spaniards call their “interior life;” they settle the accounts of the past year and prepare for that which is to come, and the little foreign trade of Sual is the only evidence of trading activity.

Labour is moderately remunerated. Taking fifty ship carpenters, employed in one yard, the least paid had 5 rials, the highest 10 rials per week (say 3s. to 6s.). They are also allowed two measures of rice and a little meat or fish. A field labourer (or peon) has a rial a day and his food. A cart with a buffalo and leader costs 1½ rial per day.

Almost all purchases are made by brokers (personeros), who, for a commission, generally of 5 per cent., and a guarantee of 2½ per cent., collect the products of the country from the cultivators, to whom they make advances—always in silver; and it sometimes passes through many hands before it reaches the labouring producer.

There are few native Spaniards in Pangasinan. A good many mestizos are devoted to commerce. In Lingayen, with 23,000 inhabitants, there are more than 1,000 mestizos; in Binmaley, with 24,000 inhabitants, only twenty-two mestizos: the first being a trading, the second an agricultural, pueblo. There are few Indians who have acquired opulence. The Chinese element has penetrated, and they obtain more and more influence as active men of business. No Oriental race can compete with them where patience, perseverance and economy can be brought into play. They are not liked; but they willingly suffer much annoyance and spread and strengthen themselves by unanimity of purpose. In Calasiao they are said in two years to have established nearly eighty shops, and were gradually insinuating themselves into all profitable occupations—attending the markets both as buyers and sellers, and establishing relations with the interior such as no native Indian would have ever contemplated. Nor in the ordinary transactions of life do they make the mistake of requiring extravagant profits. A Chinaman may, indeed, ask a high price or offer a low one in his different relations, but when he sees his way to a clear profit, he will not let the bargain escape him. There is an increasing demand for European merchandise, of which the Chinese are the principal importers; and they, above all other men, are likely to open new channels of trade. The current rate of interest is 10 per cent.; though the church funds are lent at 6 per cent. to those whom the clergy are disposed to favour, which indeed is the legal rate.

Mr. Bosch’s return for the year 1858 shows that eight large vessels, with 7,185 tons, and 282 coasters, with 7,780 tons, entered the port of Sual. Only four of the former carried cargoes away, two having gone to repair damages, and two being Spanish government steamers for the remittal to Manila of money which amounted to 210,000 dollars.

CHAPTER XXIV.

ZAMBOANGA.

We steamed away from Manila on the 20th December. It was our first purpose to visit Labuan, which had become of some interest to me as Governor of Hong Kong, having been made of late the penal settlement for a certain number of Chinese convicts. Two groups of sixty each had been sent thither, and the Governor was desirous their number should be increased. I do not see how the settlement can be made a prosperous or productive one. The coals which it furnishes are not liked by our engineers, and seldom employed if English or Welsh coals can be obtained. A considerable quantity was reported to me as raised and lying on the shore without demand, but I found no willingness, either on the part of the naval authorities or of the merchants, to purchase it. I expect both China and Japan will be in a condition to provide this very important article on cheaper terms and of better quality than that of Labuan, or any part of Borneo. I should have been glad to have had an opportunity of forming an opinion, grounded on my own observations, as to the prospects of Sarawak. I am disposed to believe the Government has acted judiciously in refusing to buy the colony, and to encumber the treasury with the charges which its establishments would inevitably entail. The arguments which I have seen put forward in its favour by the advocates of the purchase, have certainly little weight. To represent the locality as of any importance as a place of call between Europe and China, is to display extraordinary geographical and commercial ignorance: it is hundreds of miles out of the regular course, and has in itself no attraction to induce any vessel to waste the time which must be expended in visiting it. It has a fertile soil, which may be said of the whole circumjacent region—of almost every island in the tropical archipelagos; but it must depend principally on imported labour, costly and capricious in its supply, and which must be directed by European machinery, still more costly and uncertain, for the climate is, and will long continue, unfriendly to the health of European settlers. The native population is too barbarous to labour; with few wants, they have few motives to exertion. I have had the advantage of much conversation with the Catholic Vicar Apostolic of Borneo, whose knowledge of the natives is probably greater than that of any other European, as he has lived so much among them in the discharge of the duties of his mission. He represents the different tribes as engaged in perpetual wars with one another, each taking any opportunity of pillaging or doing mischief to its neighbours; and our involving ourselves in the native quarrels, by ill-judged partisanship, must lead, he thinks, to much cruelty and injustice. He gave me many particulars of the savage practices of which he had been an eye-witness, particularly in the displays and processions of human heads as trophies of victory. Although I had not an opportunity of visiting Borneo and of witnessing there the progress that has been made under European influences, I have had so many means of studying the character of the native and unsubdued races in the territories of Spain and the Netherlands, that I feel quite justified in the conclusion, that little is to be expected from their co-operation, either as producers of tropical, or consumers of European, articles. The great element which is now revolutionizing these regions, is the introduction of Chinese labour, which has received a check not easily to be surmounted in the unfortunate outbreak at Sarawak, after the events in Canton; but the introduction of the Chinese must be spontaneous, and not forced. The Chinese field-labourer works unwillingly for a master who is to receive the profits of his labour; but far different are his feelings, his activity and perseverance, when the profits are all to be his own. Then, indeed, he becomes a valuable settler, from whom much is to be expected. Our new treaties—the presence of British shipping in so many ports of China—the supersession of the heavy junks by the square-rigged vessels of the West, which the habit of insuring that the Chinese are now adopting cannot fail to promote—will all assist in the transfer of the surplus population of China to regions where their industry will find a wider scope and a more profitable field. The adventurous spirit in China is becoming more and more active. The tens of thousands who have emigrated to California and Australia, and the thousands who have returned with savings which they have deemed a sufficiency, have given an impulse to the emigrating passion, which will act strongly and beneficially in all countries towards which it may be directed. In process of time, and with the co-operation of the mandarins, who are really interested in the removal of a wretched, sometimes starving and always discontented, social element, the difficulties attaching to the removal of females may in time be surmounted, and the Chinese may perpetuate, what they have never yet done, a Chinese community in the lands where they settle. No doubt the mestizo mixture of races—the descendants of Chinese fathers and Indian mothers—is now extensively spread, and is a great improvement upon the pure Malay or Indian breed. The type of the father is more strongly preserved than that of the mother; its greater vigour has given it predominance. The Chinese mestizo is physically a being superior to the Indian—handsomer in person, stronger in limb, more active in intellect, more persevering in labour, more economical in habits. The marvellous exodus of Chinese from their country is one of the most remarkable ethnological circumstances of modern history, and is producing and will produce extraordinary and lasting results. I do not believe any of the other Oriental races able to withstand the secret and widely spreading influences of Chinese competition and superiority. Dealt with justly and fairly, the Chinese are the most manageable of men, but they will be dangerous where despotism drives them to despair.

On the sixth day of our voyage we arrived at Zamboanga. Indian houses were visible through the plantain trees, and amidst the woodlands of the coast, and a large fortification, with the yellow and scarlet Spanish flag, advised us of our adjacency to the seat of government. We sent on shore, and found the guns and the garrison were not in a condition to return our salute, but we received an early and cordial communication from the governor, Colonel Navarro, inviting us to take up our abode at his residence, and we landed at a convenient wooden pier, which is carried out for some distance into the harbour. There was a small body of soldiers to meet us on landing. In walking about we found one street wholly occupied by Chinese shopkeepers, well supplied with European and Chinese wares; they generally appeared contented and prosperous, and will certainly find the means of supplying whatever the population may demand; they will leave nothing undone which is likely to extend their trade or augment their profits. There are about three hundred Chinese settled in Zamboanga, mostly men of Fokien. We walked to the fortification, and on our way met several of the Mahomedan women who had been captured in a late fray with natives; their breasts were uncovered, and they wore not the veils which almost invariably hide the faces of the daughters of Islam. We learnt that these females were of the labouring and inferior classes; but in the fortification we saw the wives and children of the chiefs, who had been captured, and they presented the most marvellous contrasts, between the extreme ugliness of the aged and the real beauty of some of the young. One mother especially, who had a child on her haunches, appeared to me singularly graceful and pleasing. Most of the captured chiefs had been sent to Manila; but in another part of the fortress there were some scores of prisoners, among whom, one seemed to exercise ascendency over the rest, and he repeated some of the formula of the Koran in Arabic words. The Spaniards represented them as a fierce, faithless and cruel race, but they have constantly opposed successful resistance to their invaders.

Next to Luzon, Mindanao is the largest of the Philippines. Though its surface is 3,200 square leagues in extent, the Spaniards do not occupy one-tenth of the whole. The number of Mahomedans (Moros) is great in the interior, and they are the subjects of an independent Sultan, whose capital is Selangan, and who keeps up amicable relations with the Spanish authorities. To judge by some of their native manufactures which I saw at Zamboanga, they are by no means to be considered as barbarians. The inland country is mountainous, but has some fine lakes and rivers little visited by strangers. There are many spacious bays. Storms and earthquakes are frequent visitants. The forests are said to be extensive, and filled with gigantic trees, but travellers report the jungle to be impenetrable. Mines of gold, quicksilver and sulphur are said to abound. Besides Zamboanga, the Spaniards have settlements in Misamis, Caraga and New Guipuzcoa, but they are reported to be unhealthy from the immense putrefaction of decaying vegetables produced by a most feracious soil, under the influence of a tropical sun. Beyond the Moros, and in the wildest parts of the mountains, are coloured races in a low state of savage existence. Mindanao was one of the earliest conquests of Magallanes (1521). The Augustine friars were the first missionaries, and they still retain almost a monopoly of religious instruction, but their success among the Mahomedans has been small. Many attempts have been made by the Spaniards to subdue the interior, but, however great their temporary success, they have never been able long to maintain themselves against the fanaticism of the Moros, the dangers and difficulties of the country and the climate, while supported only by inadequate military means. Misamis is used as a penal settlement. The Spaniards have not penetrated far into the interior of this part of the island, which is peopled by a race of Indians said not to be hostile, but, being frequently at war with the more formidable Mahomedans, they are considered by the Spaniards as affording them some protection, their locality dividing the European settlements from the territory of the Moors. But there is little development of agriculture or industry, and not one inhabitant in ten of the province pays tribute. The Jesuits had formerly much success in these regions; on their expulsion the Recolets (barefooted Augustines) occupied their places, but it would seem with less acceptance. The settlers and the Indians recognizing the Spanish authority have been so frequently molested by the Moors that their numbers are far less than they were formerly, and it is believed the revenues are quite inadequate to pay the expenses of the establishments; but it is said some progress is being made, and if all impediments to commercial intercourse were removed, a great amelioration in the condition and prospects of the natives would result. Caraga, from which New Guipuzcoa has been lately detached, has Surigao for its capital, and is on the north-east corner of the island. The dominions of the Sultan of Mindanao mark the limits of the province. A race of Indians remarkable for the whiteness of their skin, and supposed to be of Japanese descent, called Tago-balvoys, live on the borders of a creek in the neighbourhood of a town bearing the name of Bisig, a station of the Recolets. Some of this race pay tribute, and live in a state of constant hostility with the Moros. They are advanced in civilization beyond the neighbouring tribes. Butuan, in this province, was the last landing place of Magallanes; he planted a cross there, and the Indians took part in the ceremonials, and profess Christianity to the present hour. The Moros have destroyed some of the earlier establishments of the Spaniards. There are immense tracts of uncultivated and fertile lands. Teak is reported to abound in the forests, which are close to the habitations of the settlers. The orang-utan is common, and there are many varieties of apes and monkeys, wild beasts, particularly buffaloes and deer, and several undescribed species of quadrupeds. The Spaniards say that the province of Caraga is the richest of the Philippines; it is certainly one of the least explored. A Frenchman has been engaged in working the gold mines; I know not with what success. A favourite food of the natives is the wild honey, which is collected in considerable quantities, and eaten with fruits and roots. The Butuan River is navigable for boats. There are very many separate races of natives, among whom the Mandayos are said to be handsome, and to bear marks of European physiognomy. Some of the tribes are quite black, fierce and ungovernable. Cinnamon and pepper are believed to be indigenous. Wax, musk and tortoise-shell are procurable, but as the Spanish settlements are not much beyond the coast little is done for the encouragement of the productive powers of the interior. Gold, however, no doubt from the facility of its transport, is not an unimportant article of export, and the Spaniards complain that the natives attend to nothing else, so that there is often much suffering from dearth, and the insalubrity of the climate deters strangers from locating themselves. This is little to be wondered at, as the attacks of pirates are frequent and the powers of government weak. Along the coasts are towers provided with arms and ammunition for their defence; but the pirates frequently interrupt the communications by sea, on which the inhabitants almost wholly depend, there being no passable roads. On the approach of the piratical boats the natives generally abandon their own and flee to the mountains. There are many Mahomedan tribes who take no part in these outrages, such as the Bagobos, Cuamanes and others. Even the mails are interrupted by the pirates, and often delayed for days in localities where they seek shelter. All these drawbacks notwithstanding, the number of tributaries is said to have greatly increased, and the influence of the friars to have extended itself. I have compared various statistical returns, and find many contradictions and inconsistencies.[1] Some evidence that little progress has been made is seen in the fact that in the province of Surigao, where the census gives 18,848 Indians, there are only 148 mestizos; in that of Misamis, only 266 mestizos to 46,517 Indians; in Zamboanga, to 10,191 Indians, 16 mestizos; Basilan, 447 Indians and 4 mestizos; Bislig, 12,718 Indians and 21 mestizos; Davao, 800 Indians, no mestizo. This state of things assuredly proves that the island of Mindanao, whatever be its fertility, has few attractions for strangers, otherwise the proportion of the mixed races to the population would be very different from what it appears to be. Father Zuñiga, who, in 1799, published an account of the visit of General Alava, gives many particulars of the then state of the island, and suggests many plans for extending Spanish influence.

Zamboanga is not likely to become a port of much importance unless it is wholly emancipated from fiscal restrictions. The introduction of the custom-house has driven away the whalers that formerly visited the harbours; there is little capital, and the trading establishments are on a very small scale. The roads in the immediate neighbourhood are in very tolerable order; the villages have the general character of Indian pueblos; the country is rich in all the varieties of tropical vegetation; but the interior, even close to the cabaceras, is imperfectly known. Its produce is small in reference to the obvious fertility of the soil. Some companies of troops arrived during our stay at Zamboanga, and it is probable an effort is to be made to strengthen and widen the authority of the Spanish government.

Of the arms used by the Moros the governor had a large collection, consisting of long spears, swords of various forms, handsomely adorned kreeses, daggers and knives displaying no small amount of manufacturing art.

Confined as the Spaniards are to a narrow strip of land along the coast, it may be supposed there are few conveniences for locomotion, nevertheless a carriage was found, and a pair of horses, and harness such as it was, and an Indian driver, and thus we managed to obtain a very pleasant evening ride into the country, and had an opportunity of seeing its great fertility and its varied productions, leading to natural feelings of regret that so many of the boons of Providence should remain unenjoyed and unimproved, accompanied with the hope that better days may dawn. But the world is full of undeveloped treasures, and its “Yarrows unvisited” promise a bright futurity.

There would seem to have been some increase in the population of Zamboanga. In 1779 Zuñiga reports it to be 5,612 souls, “including Indians, Spaniards, soldiers and convicts;” in 1818 the number is stated to have been 8,640; in 1847, 7,190. The Guia of 1850 gives 8,618; that of 1858, 10,191, of whom 16 were mestizos, and tribute-payers 3,871; but I do not think much reliance can be placed on the statistical returns. The last states that the marriages were 55, the births 429, the deaths 956, which represents a fearful mortality. In the province of Misamis for the same period the proportion of births to deaths was 2,155 to 845.

A great value is attached to some of the canes which are found on the island of Palawan, or Paragua, especially where they are of variegated colours, or pure white, and without the interruption of a knot, so as to serve for walking-sticks. I was informed that two hundred dollars had been given for a fine specimen.

A gold-headed sticky with a silk cord and tassels, is the emblem of authority in the Philippines.

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[1] Buzeta may be consulted, especially under the head “Caraga,” on which he has a long article. [↑]

CHAPTER XXV.

ILOILO AND PANAY.

Of the three ports lately opened to foreign commerce, Iloilo is the most promising. The province of Iloilo is one of the most populous of the Philippines. It contains more than half a million of inhabitants, and though portions of the province are very thinly peopled, there is an average exceeding 2,000 inhabitants per square league. Independently of the pueblos which I visited, and of which some description will be given, Cabatuan has 23,000 inhabitants, Miagao 31,000, Dumangas 25,000, Janiuay 22,000, Pototan 34,600, and several others more than 10,000 souls. The province is not only one of the most numerously peopled, it is, perhaps, the most productive in agricultural, the most active in manufacturing, industry, and among the best instructed of the Philippines.[1] It has extensive and cultivated plains and forest-covered mountains; its roads are among the best I have seen in the archipelago. At the entrance of the channel are a number of islands called the Seven (mortal) Sins—Los Siete Pecados. The large island of Guimaras limits the channel on the south; it was visited by some of our party, who returned delighted with the extensive stalactite caverns which they explored, reaching them with some difficulty over the rocks, through the woods and across the streams which arrested their progress. The forests are full of game and the river Cabatuan abounds with crocodiles. There are many rivulets and rivers which greatly assist the cultivator, and we found a good supply of cattle. The ponies of Iloilo are among the best in the archipelago, and some attention is paid to the breeding of sheep. A good deal of salt is made, and there is a considerable fishery of trepang (sea-slug) and tortoises for the sake of the shells. But the island is most renowned for the piña fabrics called nipas and sinamays, some of which are of exquisite fineness and beauty; they are largely exported, and their perfection has given them a vast reputation even in Europe.

On the arrival of the Spaniards they found the district occupied by painted Indians, full of superstitions, which, notwithstanding the teachings of the Augustine friars, are still found to prevail, especially at the time of any public calamity. They are among the best formed of the Indians, speak a dialect of the Bisayan, which they called Hiligueyna, but in the remoter parts another idiom named the Halayo prevails. The Augustines boast of having converted fifty thousand families in 1566, but they were not able to induce them to cultivate their lands and to store their surplus produce, and the locusts having desolated the district, in the two following years more than half the population perished of hunger. But the missionaries made no progress among the Negritos who dwelt in the wilder parts of the mountainous regions, and who were joined by many desiring to escape from the authority of the invaders. These savages have not unfrequently attacked the villages of the converted Indians, but of late years have found it more prudent and profitable to bring down their wax and pitch, and exchange them for rice and garments. They have no general ruler, but each clan has its recognized head, and it is said that, when perplexed as to choice of a successor to a departed chief, they send deputations to the missionaries and ask their advice and assistance to regulate their choice. Formerly the district was frequently attacked by pirates, who committed great ravages and destroyed several towns. In 1716 the Dutch attacked the fortress of Iloilo, but were compelled to retire after a heavy loss both in killed and wounded. There has been a great increase in the population, which in 1736 numbered 67,708 souls; in 1799, 176,901; in 1845, 277,571; and by the last census, 527,970, of whom 174,874 pay tribute. There is a small number of Spaniards—of mestizos many, of whom the larger proportion are sangleys, the descendants of Chinese fathers and native mothers. The increase of the population must be great, the census in 1857 giving 17,675 births, and only 9,231 deaths.

The approach to Iloilo is by a channel between a sandbank (which has spread nearly a mile beyond the limits given in the charts) and the island of Guimaras. The town appears adjacent as it is approached, but the river by which vessels enter makes a considerable bend and passes round close to the town. We observed a large fortification, but it had not the means of saluting us, and we were therefore exonerated from the duty of exploding H. M.’s gunpowder; but if not in the shape of noisy salutations, the courtesies of the Spanish authorities were displayed in every possible way towards the officers and crew of our frigate, for whose service and entertainment everything was done. We were soon waited on by a gentleman from the British vice-consulate. The vice-consul returned to Iloilo the day after our arrival. It would indeed be well if all British functionaries possessed as much aptitude, knowledge and disposition to be useful as we found in Mr. Loney, to whom the commerce of the Philippines generally, and the port of Iloilo especially, is under great obligations. To him, more than to any other individual, the development of the trade of Panay will be due.

From the Governor of Iloilo, Colonel José Maria Carlès, especially I experienced great kindness. He was Buffering under a sore affliction—for affliction holds sway over every part of the world—the loss of an only and beloved son who had preceded him as governor of the province and was an object of so much affection that the people earnestly implored the Captain-General to allow the father to succeed him, which was granted. It was touching to hear the tales of the various displays of popular sympathy and sorrow which accompanied the death and the interment of Don Emilio Carlès, whom no less than fifty carriages followed to his grave in Arévalo. I passed the village more than once with the mourning father; at a time, too, when sorely suffering from sorrows of my own, I felt the consolation which is found in remembering and helping others to remember the virtues of the dead. These are their best monuments, though not written on tablets of stone.

The principalia of Molo came to invite us to a ball, and very prettily the ball was got up. It is a most industrious locality; in ancient times was a Chinese colony, and is now occupied by mestizos and their descendants, most of them having a mingling of Chinese blood. The pueblo has 16,428 inhabitants, of whom the mestizos are 1,106. It is one of the busiest towns in the island, and everything has a prosperous and active look. Some of the buildings have in the same apartment many looms occupied in making the piña stuffs. The place was gaily illuminated on occasion of the ball, and the gobernadorcillo made an oration in Spanish to the effect that the locality had been much honoured by our presence, and that the memory of the day would be long preserved. Many of the mestizos keep their carriages, which were placed at the disposal of our friends, and which fell into the procession when music and firing of guns and muskets accompanied us through the town. Molo is an island formed by two creeks, and entered by bridges on both sides. I believe it is one of the few localities served by a secular curate. It is about four miles from Iloilo, the road being good, and many Indian houses are seen on both sides of the way. Almost all these have their gardens growing plantains, cocoa-nuts, bread-fruits, cocoa, betel and other vegetable productions. Sugar planting appeared to be extending, and there are many paddy-fields and much cultivation of maize.

The Governor and British vice-consul accompanied us in our pleasant excursions to the interior, during which we visited some of the most populous pueblos of the provinces. We travelled in comfortable carriages, the friars or the gobernadorcillos providing us with relays of horses, and the convents were generally the places appointed for our reception, in which we invariably found most hospitable cheer. One day it was determined to visit Janiuay, and we first stopped at Jaro, a pueblo of more than 22,000 souls. The roads had their usual adornings: the Indian cottages exhibited their flags, the equestrian principalia came out to escort us, and the native bands of music went before us when we entered and when we quitted the populous part of the town. Jaro is deemed the most opulent place in the island of Panay. It was founded in 1584 or 1585. Cultivation extends to some distance around it. It boasts of its stone bridge, more than 700 feet in length and 36 feet in breadth, the erection of which, as well as the excellent roads by which the pueblo is approached, are due to the munificence of a curate knighted by his sovereign for his patriotic sacrifices. Though the country is level, the rich vegetation on the banks of the streams and by the borders of the highway make the scenery picturesque. The manufacture of fine stuffs and cotton, piña and silk, is very considerable. These fabrics are exposed for sale at a weekly market, held on Thursdays, which is crowded by people from every part of the province, being the largest of the Iloilo marts. From Jaro we proceeded to Santa Barbara, a pueblo of 23,000 souls. Here we were received at the convent of the Augustine friars, in whose hands are all the cures of Iloilo, to one of whom we had the pleasure of giving a passage to Manila, whither he was bound as the delegate to the annual assembly of the fraternity. Here, too, other Augustine friars visited us, all inviting us to partake of the hospitalities of their spacious convents. Santa Barbara is a modern town, built in 1759, and placed under the special protection of the saint whose name it bears. It has shared in the general prosperity of the province: in 1820 it had no manufactures; but it has now a weekly market for the sale of the produce of its looms, consisting principally of cottons, sail-canvas, quilts, coverlets, &c. The forests furnish fine timber for building and for cabinet work, and are crowded with wild bees, whose wax and honey form a considerable article of traffic. Excellent were the carriages and horses of the friars. Our next resting-place was Cabatuan, somewhat larger than Santa Barbara. Cabatuan was founded in 1732. It is on the banks of the river Tiguin; sometimes nearly dry, and at others deluging the country with its impetuous torrents. The numerous crocodiles make fishing unsafe; and the navigation even of small boats is often interrupted, either by the superfluity or insufficiency of its waters. There is a large production of rice and of cocoa-nut oil for lighting. From Cabatuan we went to Janiuay, which was the limit of the day’s journey, and of our visit to the interior. It is called Matagul in the ancient maps of the province, and has about the same number of inhabitants as Santa Barbara. The convent and church are on a slightly elevated ground, and offer a pretty view of the pueblo and surrounding country. Many of the women are engaged in the labours of the loom, but agriculture is the principal industry of the neighbourhood. We had hoped to visit the Dingle mountain, one of whose caves or grottos is said to present the character of a temple of fantastic architecture, adorned with rock crystal and exhibiting masses of marble and alabaster which form its walls; another cave is formed of granite, which abounds in the locality: but we had to return to Iloilo to meet the principal people at a late dinner, succeeded as usual by a ball. The Governor’s house being at some distance from the town, we were kindly accommodated at that of one of the native merchants, conveniently situated on the quay of the river. Several of the friars, who had been our hosts, were the guests of the merchants; and the kind hospitality we experienced did not justify the constant expression of courteous regrets for the inadequacy of the entertainment, the blunders of the native servants (sometimes amusing enough), and the contrasts between the accommodations of Europe and those which a remote Spanish settlement in the Philippines could afford; but there was so much of courtesy, good breeding and cordiality that it was impossible to feel otherwise than grateful and contented, and, after all, in this world to do all we can is to discharge every duty.

The next day we made our arrangements for visiting the different pueblos on the coast, and, starting in our carriages soon after daybreak, we passed through Molo and Arévalo to Oton. Arévalo has some celebrity in the annals of the Philippines, and had a special interest for the Governor, as here had been lately displayed the affection of the Indians for his son, whose funeral they had honoured with such special marks of sympathy and regret. Arévalo was formerly the residence of the governor—built by Ronquillo in 1581, who gave it the name of his birth-place. Molested by the Indians, attacked by pirates and the government quite disorganized, it was for a long time abandoned; and the seat of authority being removed to Iloilo, Arévalo presents few signs of activity: there are about 8,000 inhabitants in this district. At Oton we saw from the Augustine convent an interesting ceremony. It was on a Sunday; and on quitting the church the inhabitants were summoned by beat of drum to attend the reading of a proclamation of the government. They were all in their holiday garments, and men, women and children formed a circle round one of the native Indian authorities, who, in a loud voice, read in the Bisayan tongue the document which he had been ordered to communicate to the people. There was perfect silence during the reading, and a quiet dispersion of the crowd. Fortifications are erected along the coast, and a great variety of manufactures were brought to us for examination. A good deal of English cotton twist is sold, which forms the warp of most of the fabrics.[2] There were rugs of silk and cotton; varieties of coloured ginghams; tissues, in which the fibres of the abacá and the piña were mixed with our cotton thread, whose importation is, however, confined to the colours which the Indians are themselves not able to dye. Oton has nearly 23,000 inhabitants. I observe the proportion of births to deaths is as nearly four to one, and that while there are five births to one marriage, the deaths exceed the marriages by less than one-third, so that the increase of population must be very great. In 1818, it was less than 9,000. Tigbauan, with its 21,000 inhabitants, was our next halting place. Its general character resembles that of Oton. Rice is the principal agricultural production, but the women are mostly employed in weaving stuffs, which find markets in Albay and Camarines. We were accompanied from the Augustine convent by a friar of Guimbal, who obviously exercised much influence over his brethren and over the whole community. His conversation was both entertaining and instructive. He had a good stud of horses, a handsome carriage, and he certainly employs his large revenues with generous hospitality. Not to repeat what has been repeated so often, the Indians, on the whole line of our journey, made a holiday time for our reception, which partook everywhere of the character of a public festivity. After the principalia had accompanied us to the convents, and received their thanks from me, and their dismissal from the Governor and the friar, a number of little girls were introduced, to whom the service of the table and attendance on the guests were confided. There was a strange mixture of curiosity, fear and respect in their deportment; but they gathered round my arm-chair; their bright black eyes looked inquiringly into my face, and asked for orders; while one, who seemed rather a pet of the ghostly father, put her hand into the curls of my white hair, which she seemed to consider worthy of some admiration: but the friar told me they were discoursing among themselves whether it was possible I could be a general and a great man, who had no gold about my clothes; I was not dressed half as finely as the officers they had been accustomed to see. They were very proud of some of the piña garments they wore, and one after another came to display their finery. They took care to supply me with cigars, and that light should be ready whenever the cigar was extinguished, and when we sat down to our well-furnished repast, several of them were at hand to remove the plates, to provide others, and to see that we were well provided with the delicacies of the day. On our way back to Iloilo, we learnt that the principalia of Molo were to escort us in their carriages to our domicile; they were waiting for us in the main road, so that we made together quite a procession. They had before invited Captain Vansittart and the officers of the Magicienne to their ball, and many attended, keeping up the dance to an early morning hour.

We left Iloilo the following day. The Governor and several of the principal people, among whom was a large group of Augustine friars, accompanied us with music to the ship. Three loud shouts of grateful hurrah broke forth from our decks, cordially responded to by our hosts—and so farewell! and all happiness to Iloilo.

I have sent to Sir William Hooker, for the museum of the Royal Gardens at Kew, sixty specimens of woods grown in the northern and western districts of the island of Panay and the province of Antique, of which the most notable are—the molave, the most useful and compact of the Philippine woods, and applied to all purposes of building; bancaluag, for fine work; duñgon, for ship-building and edifices; bago-arour, building and cabinet-work; lumati, a species of teak; guisoc, a flexible wood for ships and houses; ipil has similar merits; naga, resembling mahogany, used for furniture; cansalod, planks for floors; maguilomboy, for the same purpose; duca, baslayan, oyacya, for ship-building; tipolo, for musical instruments; lanipga, a species of cedar used for carving and sculpture; bayog, spars for masts and yards; bancal, for internal roofs and carving; malaguibuyo, for flooring; ogjayan, flexible for joints, &c.; lanitan, guitars, violins, &c.; janlaatan, furniture; lauaan, spars for shipping; basa, in large blocks for building and shipping; talagtag, cabinet-work; nino, the bark used for dyeing both red and yellow; bacan, spars; panao, a medicinal wood used for sore eyes by the Indians; banate, a fine and solid box-wood, used for billiard-maces, has been exported to Europe; bancolinao, ebony; casla has a fruit resembling a French bean, whose oil is used by the natives for their lamps; jaras, for construction of houses. It will be observed that all these bear their Indian names, which are generally applied to them by the Spaniards.

As regards the commercial position and prospects of the whole of the central and southern islands of the Philippine Archipelago, the most satisfactory details which have reached me are those furnished in 1857 by the Vice-Consul of Iloilo, Mr. Loney, to the Consul of Manila, from which I extract the following information.

That portion of the Philippines called the Bisayas may be generally described as including the whole of the islands to the southward of Luzon, though, strictly speaking, it is understood to comprehend only those of Samar, Leyte, Panay, Negros, Cebu, Bohol (with their dependencies, Tablas, Romblon, Sibuyan, &c.), and four provinces—Misamis, Caraga, Zamboanga, and Nueva Guipuzcoa—of the important island of Mindanao, next to Luzon the finest and largest of the archipelago.

The administration of the revenue of the Bisayas was formerly in charge of a separate Government Intendency (Gobierno Intendencia de Bisayas) established in the city of Cebu; but this being abolished in 1849, all the provinces, as regards revenue, are now equally under control of the Superintendencia at Manila. While, however, the provinces and districts of Luzon (with the exception of Cavite, La Isabela, Nueva Viscaya, El Abra, San Mateo, and La Union) are presided over by civil functionaries (alcaldes mayores), those of the Bisayas are governed by military officers (gobernadores militares y politicos) of the rank of captain to that of colonel, assisted in most instances by a lieutenant-governor, a civilian, and usually a lawyer, who takes cognizance of all ordinary civil and criminal cases.

The Bisayan group is mostly inhabited by a race resembling, in all essential characteristics, the Tagálog, and other Malayan races of Luzon. Their language may be called a dialect of the Tagálog, though rather harsher in sound, and neither so copious, so refined, nor so subjected to grammatical rules, as this latter idiom. The Bisayan has more Malay words than have the dialects spoken in Luzon. The natives of these islands and those of Luzon imperfectly comprehend each other, though their languages are evidently derived from the same parent stock.

The Bisayas furnish a hardy, seafaring race; but, as a rule, the general tendency to indolence, attributed to the Philippine “Indian,” applies, in a perhaps greater degree, to the inhabitants of the whole southern group, and constitutes at present, in the absence of any available means of coercion, one of the principal obstacles to a more rapid extension of agriculture by the introduction of European capital.

The christianized population of the Bisayas may be estimated as follows:—

Samar		118,000
Leyte		115,000
Romblon		16,600
Panay:—
	Capiz	135,000
	Iloilo	450,000
	Antique	80,000
Cebu and Bohol		385,200
Negros		108,000
Calamianes		18,000
Mindanao:—
	Misamis	44,500
	Caraga (Surigao)	15,300
	New Guipuzcoa (Bislig and Davao)	11,200
	Zamboanga	12,000
Total		1,508,800

This estimate does not include the unsubdued tribes inhabiting the mountains in the interior, some idea of the number of which may be formed from a note of those ascertained to have existed in 1849, in the undernoted provinces:—

Misamis	66,000
Samar	25,964
Leyte (not ascertained).
Negros	8,545
Panay	13,900
Cebu	4,903
Total	119,312

The largest number of unsubjected tribes (principally Mahomedan) inhabit Mindanao, the total population of which is generally asserted to amount to nearly one million souls.

The island of Panay, advantageously placed towards the centre of the Bisayas group, is distant at its nearest point—that of Potol, in lat. 11° 48´ N., long. 122° W. of Greenwich—180 miles in a right line from Manila. Its shape is nearly triangular, and it has a circumference of about 300 miles. It is the fifth in size of the Philippine Islands, coming in this respect after Luzon, which has a circumference of 1,059 miles; Mindanao, 900; Paragua, 420; and Samar, 390; but, though smaller than the islands just named, it is, next to Luzon, the most populous of the archipelago, if Mindanao, with the doubtful population of independent tribes above-mentioned, be left out of the question.

Panay is divided into the three provinces of Capiz, Antique, and Iloilo, which together contain a population of about 665,000.

Capiz occupies the whole of the northern portion of the coast of Panay, for a distance of seventy-seven miles.

Its limits towards the interior may be defined by a curved line, commencing from a little to the eastward of Point Bulacan, passing by the Pico de Arcangel, in the Siaurágan Mountains, and continued westward to Pandan, on the coast. Its chief town is Capiz, situated on the river of the same name. Though broken towards the southern and western portion by an irregular series of mountain chains, the greater part of the territory of Capiz consists of extensive low-lying plains, which produce rice in great abundance. It possesses a few good harbours, particularly that of Batan; and Capiz itself, situated at the confluence of the rivers Panay and Capiz, affords secure anchorage. Its tribute-paying population is officially reported to be 135,000 souls.

Antique takes up the western side of the island, to an extent of 84 miles—from Point Naso on the south to Pandan on the north—is of triangular shape, and limited on the north by the province of Capiz, on the south and east by that of Iloilo, and on the west by the sea. Antique is very mountainous, and, being comparatively thinly inhabited, does not at present produce much for export, especially as the greater development of its resources is retarded by the want of good harbours, of which it does not possess one along its whole line of coast. At its chief town and port, San José de Buenavista, a breakwater is in process of construction, which, if completed, will give a great impulse to the trade of the province, by enabling vessels to load there at all seasons of the year. At San José foreign whaling and other vessels not unfrequently call for water and fresh provisions. The number of its inhabitants, exclusive of the remontados and monteses, who occupy the mountainous districts, is computed to amount to 80,000 souls.

Iloilo extends over the south-eastern portion of the island, is also of triangular form, bounded on the north by Capiz, on the west by Antique, and on the south-east by the arm of the sea which separates it from the island of Negros. This, the largest, richest and most peopled of the three provinces, deserves more particular notice.

Iloilo, its chief town, and the residence of its governor, distant 254 miles in a direct line from Manila, and placed by Spanish hydrographers in lat. 10° 48′ W. of the meridian of San Bernardino, is situated near the south-eastern extremity of the island, close to the sea, on the border of the narrow channel formed by the island of Guimarás, which lies opposite to it at a distance of two miles and a half from the Panay shore.

The town is built principally on low, marshy ground, subject to tidal influence, partly fronting the sea, and partly along the left bank of a creek, or inlet, which runs towards Jaro, and after describing a semicircle again meets the sea near Molo. Although the principal seaport and seat of the government of the province, its population is not so large as that of many of the towns in its vicinity. It does not at present exceed 7,500, while Jaro, Molo and Oton, towns in its immediate neighbourhood, possess 33,000, 15,000 and 20,000 respectively. This comparative scarcity of inhabitants is principally owing to the want of space for further extension on the narrow tongue of land on which the town is chiefly built. This obstacle to its further increase should in time cease to exist, as efficient measures are being taken to draw the population more inland; among others, the erection of a new government house and public offices at a more central point; the contemplated removal of the present church to a more advantageous and open site, beyond the tongue of land alluded to; and the convergence at this place of new and more direct roads (now in course of construction) leading to and from the adjacent populous towns.

Notwithstanding the drawback of limited space, the progress in size and importance of the town has of late years been very marked, while the European residents, who, in 1840, numbered only three, now, in 1857, amount to 31 in Iloilo, and 30 in the remaining towns of the province. A considerable portion of this number arrived during the past two years, and the effect of this increase of Europeans, though their number is so small, is already visible in the construction of new buildings, and projects for the erection of many others. The rise in house property may be illustrated by the fact that the house in which the vice-consulate is established—constructed of wood with a palm-thatched roof—is subject to a rental of 33 dollars per month, or about 80l. per annum. The value of land for building lots has also augmented in proportion.

The population of the province is given officially as 511,066; but there is reason to think it considerably exaggerated, and that 400,000, or at most 450,000, would be nearer the real amount.

The harbour of Iloilo, though well protected and naturally good, is not without inconveniences, capable, however, of being obviated with little trouble, and, provided with one of the excellent charts lately issued by the Comisión Hidrográfica (and, if approaching from the north, with a pilot), large vessels may enter with safety.

The island of Guimarás, which is twenty-two miles long by three in breadth, forms in front of Iloilo a sheltered passage, running nearly north and south, of a width varying from two miles and a half to six miles, with deep water and good anchorage. The entrance to this passage from the south is a good deal narrowed by the Oton shoal (Bajo de Oton), which stretches for a considerable distance from the Panay shore, and contracts for about a mile in length the available channel at this part to the breadth of about two miles. This, however, will be no obstacle for large ships during the south-west monsoon (especially when the channel is properly buoyed off), the passage being perfectly clear as far as it extends; and with a contrary north-east monsoon they can work or drag through with the tide, keeping well over towards Guimaras, the coast of which is clear with deep water close in, anchoring, if necessary, on the edge of the shoal, which affords good holding-ground, and, being of soft sand, may be safely approached. The whole of this coast, protected as it is by Guimaras, the Panay shore, and, in a considerable degree, by the island of Negros, offers secure anchorage in the north-east monsoon; and situated on the south-west portion of Guimaras, the fine port of Buluanga, or Sta. Ana, of easy access and capable of admitting vessels of the largest tonnage, will afford shelter under almost any circumstances. The approach to the opposite or northern entrance is generally made by the coasting vessels through the chain of small islands (Gigantes, Pan de Azucar, Sicógon, Apiton, &c.), called collectively the Silanga, which lie off the north-east coast of Panay and afford an excellent refuge for a considerable distance to the vessels engaged in the trade with Manila and the southernmost Bisayas. But though there is good anchorage among these islands, particularly at Pan de Azucar and Tagú, it would be more prudent for vessels of large burden, in cases where there is no practical acquaintance with the set of the tides and currents, to take the outside channel between the Silanga and the island of Negros. After passing the Calabazas rocks and Pepitas shoal and making the castle or blockhouse of Banate (formerly erected, like many others along the Philippine coasts, for defence against the pirates of the Sooloo Sea), the route is due south until sighting a group of seven remarkable rocks, called the “Seven Sins,” for which a direct course should then be made, the lead being kept going to avoid the Iguana Bank (which is well marked off on the charts referred to), and on getting south of the Iloilo Fort vessels of a certain tonnage may enter the creek, or, if too large, should bring up on the east side of the fort, where they are protected from the wind and the strength of the tides. The depth of water on the bar at the entrance to the creek is about five fathoms at low water; but at a short distance farther inside the water shoals to fifteen feet at low water, and then deepens again. The rise and fall being six feet, a vessel of 300 tons, drawing, when loaded, sixteen to eighteen feet, can easily obtain egress with a full cargo. A dredging machine employed to clear away the mud which has been allowed to accumulate at the shallower parts near the entrance, would enable ships of almost any burden to complete their cargoes inside. The Santa Justa, a Spanish ship of 700 tons, loaded, in 1851, part of a cargo of tobacco inside the creek, and finished her lading outside.

It should be mentioned that, the banks of the creek being of soft mud, there is little or no risk to be apprehended from grounding. Proceeding about a mile and a half up the creek (which varies in breadth from half a mile to three-quarters of a mile, and affords complete protection from wind and sea), the coasting crafts bring up at the jetties of their respective owners, and have the great advantage of discharging and loading at the stores without the necessity of employing boats.

Beyond this point, the creek stretches as far as Molo. Formerly the coasting vessels used, when necessary, to go on to Molo, but the drawbridge through which they had to pass having got out of repair, and the present bridge (now in very bad condition) affording no means of passage, they remain at Iloilo, to which place the Molo traders have had to transfer their warehouses.

The export trade of Iloilo, hitherto confined to the port of Manila and the adjacent islands, is at present chiefly carried on by four Spanish firms resident at Iloilo and owners of the better class of native craft sailing from this port; but to these are to be added a considerable number of mestizos, or half-castes, principally of Chinese descent, living at the neighbouring towns of Molo and Jaro, several of whom are also owners of vessels, and employ considerable sums in the trade.

The principal products exported are leaf tobacco, sugar, sapan-wood, rice in the husk (or paddy); hemp and hides, besides other articles in lesser quantity, including horns, beche-de-mer, mother-of-pearl shell, beeswax, canes, &c., and a considerable amount of native manufactured goods. Leaf, or unmanufactured tobacco, is at present the article of most importance, and the one which the Spanish traders have found most lucrative. It is purchased by them from the small native growers, and shipped to Manila for exclusive sale to the government, at prices fixed by the factory appraisers, according to the size and quality of the leaf. From Iloilo some 30,000 quintals were shipped last year for Manila, and from Capiz 20,000, giving about 50,000 as the exportable quantity of the leaf produced in Panay per annum.

The export of tobacco to Manila, until the year 1845, did not amount in this province to more than 10,000 quintals per annum; but in that year the agent of a Manila firm having raised the usual low prices given by the Iloilo traders from 10 rials to an average of 20 to 21 rials for the three first qualities, the export, in 1847, had rapidly reached 24,000 quintals.

The attention of the government being directed to its growing importance, it was resolved to institute a system of “Coleccion,” through the governor and a staff of collectors, similar to those “Collecciones” that are established at Cagayan, La Union, and Nueva Ecija. By this system, the purchase for, and export to, Manila by private traders, though not positively interdicted (as is the case in the provinces just named), was so much prejudiced and interfered with by the unequal competition with the government (to which the private buyers had ultimately to sell what they shipped), that the total export from Iloilo fell during the six years from 1848 to 1853 from 25,000 to 18,900 quintals. In this latter year the coleccion was withdrawn. In 1853 a company formed at Madrid was allowed the exclusive privilege of the manufacture and export of cigars and leaf tobacco to foreign markets. A large and expensive stone-built factory was erected near Iloilo, the manufacture of cigars organized, and purchases of the leaf effected, and, latterly, the company’s operations were extended to the cultivation of the plant in different parts of the province. A clause, however, in its charter rendered it incumbent on the company to furnish the factories at Manila, if required, with a considerable yearly amount both of leaf tobacco and cigars, equal, if necessary, to the amount annually derived in the province from other sources. As a consequence, the requirements made for the Manila factories (purposely augmented, it is said, by the hostility of the then Intendente de Hacienda to the company) were to such an extent as virtually to deprive it of all power to act on its own account; and, after an existence of nearly three years, its embarrassments were such as to compel its extinction, with the loss of a considerable portion of the capital originally sunk. Had the authorities at Manila favoured its development, the result, though necessarily cramped by the defective principle inherent in all monopolies, might have been favourable, as, with the liberty to manufacture for, and ship to, foreign markets, it could have afforded to give good prices, and might have extended the culture of the tobacco plant. It is a suggestive fact in connection with this subject that one of the Europeans formerly in the employ of the company has since had cigars manufactured for local consumption, which he has sold at 8 dollars per thousand, nearly, if not quite, equal in quality to the “Imperiales” occasionally manufactured at the factory at Manila at 25 dollars per thousand.

Since 1853, and coexistent with the company’s operations, the purchase and shipment of tobacco by private individuals have been resumed on their original footing; and, while the amount so shipped has steadily, though very gradually, increased, prices have maintained a slight upward tendency. The maximum rates, however, which the local traders can afford to pay the native growers are not high enough to bring about a rapid extension of planting, or induce these latter to give time and labour enough to improve the quality of a plant, the proper culture of which requires special attention, and the application of more capital and intelligence than they have it in their power to bestow. The Iloilo shippers complain of the arbitrary manner in which the classification of qualities is made at Manila, and of the fact that, even after delivery of the tobacco at the government stores, it is held entirely at their risk until examined, repacked and ready for shipment to Spain. The qualities shipped at Iloilo are classed as 1st (of which a very small quantity is produced under the present system), 2nd, 3rd, 4th, and 5th; and any rejected by the examiners at Manila as under the 5th quality is retained and burnt, though no allowance on such portion is made to the vendor. The rates given by the factory for the above qualities are 7·75, 6·75, 5·25, 4, and 3 dollars per quintal respectively. The seedlings are planted out in January, and the greater part of the crop comes forward in May and June. The soil of the greater part of the Bisayas is favourable to the growth of tobacco. The island of Negros formerly produced about 8,000 quintals, of very good quality, which the Iloilo traders, through their agents, were in the habit of purchasing from the independent tribes inhabiting the interior; but the measures taken by the present governor to bring the latter into subjection having resulted last year in the slaughter of several hundreds and the dispersion of the rest, supplies from this source are at present stopped. Cebú produces about 15,000 quintals, of rather inferior quality. At Leyte, particularly in the district of Moasin, tobacco of very excellent quality and colour is grown, but it does not pay to produce in large quantity for export to Manila, and is consequently used almost exclusively in the Bisayas, where it is much appreciated. Samar also grows tobacco for local consumption. The manufacture of cigars is allowed throughout the Bisayas, but not for sale at Manila or elsewhere.

For the present the export of tobacco from Panay and the other islands possesses little direct interest for British or foreign merchants, the transactions with government, as at present conducted, not being of a satisfactory nature. It is, however, almost superfluous to say, that if the existing government monopoly of tobacco were abolished (substituted by a system of farming out lands, a direct territorial tax on the quantity under cultivation, or a duty on exports), and both the free manufacture for, and direct shipment to, a foreign market allowed, the export from Panay would immediately become of great importance to the foreign trade. The soil of a very great portion of the island being well adapted for the cultivation of the plant, the export, under the stimulus of much higher prices and the consequent employment of more and better-directed capital, would be capable of great expansion, particularly if, as would in all probability be the case, the culture were undertaken by Europeans, and the present system of small patches cultivated by natives gave place to estates on a large scale, as in Cuba. The benefits which would accrue to the native population by the opening up of larger sources of industry need not be pointed out.

The subject of the suppression of the existing monopoly is a most important one for the Philippines; and it is to be hoped that the government at Madrid, encouraged by the beneficial results of the abrogation, in 1819, of the monopoly in Cuba, will at no distant date resolve to overcome the difficulties which at present surround the question, particularly as its solution becomes yearly more urgent, and more called for on the part of both Europeans and natives.

Sugar, as an article of export, may be said to be as yet comparatively in the germ. By an abstract taken from notes of province cargoes given daily by the Boletin Oficial of Manila, it is seen that nearly 12,000 peculs went forward last year from this province to Manila, of which it may be estimated that about 3,000 were brought over from the Isla de Negros, and sent on to the capital as Iloilo sugar. So great has been the stimulus given by the high prices for this article which have lately ruled, that the quantity exported from Iloilo alone will not fall short of 20,000, or say, with contributions from Negros, about 25,000 peculs, or nearly 1,600 tons; and, were the present rapid extension of planting to continue in the same ratio for three years, the amount exportable would in that time, as there is no want of available land, reach about 80,000 peculs, or 5,000 tons, subject to further augmentation from other sources, should foreign vessels commence loading at this port.[3] At the island of Negros, from whence the voyage occupies from six to ten hours, the soil of which is eminently fertile, and which possesses immense tracts particularly adapted for the growth of sugar, a similar extension of culture is in progress, in spite of the great drawback of the comparative sparseness of its population, which alone prevents it from yielding sugar and hemp in larger proportion than any other province in the Philippines. At present Negros produces about 14,000 peculs, or nearly 900 tons, of sugar, of which more than two-thirds go to Manila direct, and the remainder by way of Iloilo. There is a further available source from whence sugar (in the event of foreign vessels loading at Iloilo) would be derivable at the contiguous island of Cebú, which produces upwards of 90,000 peculs, or 5,695 tons, for the Manila market, and is within easy distance of two to three days’ sail from Iloilo.

The effective nature of the stimulus given by the present prices will be comprehended when it is considered that the value of Iloilo sugar, which in previous years up to 1855 had generally ranged from 2 to 2·10 dollars per pecul in the Manila market, is now 5·68¾ dollars per pecul at Manila, against 3·2 to 3·3 dollars, with 25 per cent. for prem. on silver, or equal to 4·06 dollars to 4·21½ dollars here, and as long as the rate obtainable at Manila does not recede below 3 dollars per pecul of 140 lbs., the extension of planting will be continued. Of late years, owing to the disproportionally low prices paid at Manila, sugar planting had in many districts been abandoned as unremunerative, but during the past and present year it has rapidly increased, particularly since the introduction of a more economical kind of furnace, in which the refuse cane is used to some extent in place of the large amount of wood formerly consumed.

The very defective nature of the process employed by the native and mestizo planters does not allow of the production in Iloilo of a superior class of sugar, and all that leaves for Manila may be described as “ordinary unclayed;” but the grain is usually very good, and on undergoing the ulterior processes in England and Australia, it yields a fine strong sugar, and has been much approved of for boiling purposes at the Glasgow refineries. Were a better system of crushing and boiling introduced here, sugar of an excellent quality would be produced, and it is greatly to be desired that a few Europeans with sufficient capital and experience would form estates in this neighbourhood. At present there is not a single iron-mill in the island. The unclayed sugars of the Philippines in ordinary times, even under the present defective and consequently expensive mode of production are held to be the cheapest in the world. The only Europeans now engaged in the cultivation of sugar in this quarter are a French planter, at Negros, who produces an excellent sugar (which always commands upwards of 1 dollar a pecul more than ordinary Iloilo), and a planter of the same nation, in this province, who has lately commenced on a limited scale.

Taking the prices quoted above as a basis (4·21½ dollars here against 5·68¾ dollars at Manila), the difference in favour of this, the place of production, is now 1·47¼ dollar per pecul; but supposing the additional 47¼ cents to be given here by the foreign exporter in order to secure such share of the crop as would be required to load a direct vessel, there would still remain an important saving of 1 dollar per pecul, or say 17½ per cent. less than the prime cost at Manila. The freight to Manila at present charged by the coasting vessels is 50 cents per pecul. The bulk of the sugar crop is delivered from February to March.

Sapan-wood is exported in considerable quantity from the province of Iloilo. It is chiefly produced in the vicinity of the southern coasting towns, Guimbal, Miagao, and San Joaquin (the farthest within twenty miles of Iloilo), from whence the greater part is brought round by sea to Iloilo for exportation to Manila, and the rest shipped direct from Guimbal. Last year, as reported in the imperfect notes of the Boletin Oficial, 32,723 peculs, or 2,045 tons, were shipped to Manila, and 789 peculs from Antique.

The high prices lately obtained at Manila have led to the formation of new plantations, which will still further increase the exportable amount. A large quantity is sent on yearly to Singapore and Amoy, and forms the bulk of the cargoes of such vessels as load at Manila for the former port.

The quality of the Iloilo sapan-wood would be much better were the natives to abstain from the practice of cutting down a large portion before the trees are sufficiently grown. When allowed to obtain its proper development, it is said to be quite equal or superior to that of Misamis or Bolinao, at present the best qualities brought to the Manila market. As both sellers and brokers endeavour to deliver the wood as soon as possible after it is cut, the loss in weight on the voyage to Manila is said to be sometimes as much as 12 to 14 per cent. The present price of sapan-wood delivered at Iloilo is, with the addition of 25 per cent. for cost of silver, 1·08 dollar per pecul against the Manila rate of 1·75 to 1·875 dollar, leaving a considerable margin in favour of vessels loading here for a foreign market. The freight to Manila is 31·25 cents per pecul.

Hemp (so called, though in reality the product of a variety of the plantain) produced in Iloilo is chiefly of a long, white fibre, equal to what is known in the London market as “Lupiz,” used in the manufacture of the native fabrics, and at present little attention is paid to it as an article of export. But though Iloilo produces little or no surplus hemp, the small coasting craft annually bring here some 350 tons from the neighbouring islands and provinces of Leyte, Samar, Negros, Camarines, and Albay, received at those places in exchange for the paddy and native goods of this province.

Both Leyte and Samar now produce large quantities of excellent hemp for the Manila market, particularly the former island; and the voyage hither throughout the greater part of the year is so short (at present vessels take five to six days in going and two to return) that were the native traders to find a ready market at Iloilo, at prices relatively equivalent to those of Manila, it is more than probable that a considerable additional quantity would be directed to Iloilo instead of to the capital.

At the island of Negros the production is increasing very rapidly, a large quantity having been planted during the past year, several pueblos and districts possessing tracts of upwards of 100,000 and 200,000 plants, which will come into use during the next two years, and as the plant is remarkable for its great propagative power, the obtainable quantity should increase in duplicative ratio every year. The export of hemp from the Isla de Negros amounts at present to 13,000 to 14,000 peculs, or about 850 tons, per annum, chiefly from the port of Dumaguele, on the eastern side of the island.

When it is recollected that in 1831 the whole export of hemp from the Philippines did not amount to more than 346 tons, and that in 1837 it had already reached 3,585 tons, and that during 1856 no less than 22,000 tons left Manila for the United States and Europe, some idea may be formed of the future of this valuable article at the fertile island of Negros, even with the drawback already alluded to of a scanty population.

I am the more inclined to dwell on the facts regarding Negros, as from its close proximity it may almost be considered, in the event of direct exports from Iloilo, as an integral part of the island of Panay. The amount of hemp shipped from Capiz last year was 6,458 peculs, or 400 tons, chiefly, however, of an inferior description made from the fibres of the pácul, a wild variety of the plantain. As this inferior hemp, however, commands a remunerative price, I believe the plant producing the genuine article is now being more generally cultivated at Capiz. The rate for hemp here may be quoted at 5·375 dollars, or, with 25 per cent. for cost of silver, 6·715 dollars per pecul, against the Manila rate of 7·75 to 8 dollars. Freight to Manila, 50 cents per pecul.

Rice in the husk, or Paddy, is an important item in the agriculture of Panay, though at present of little actual interest in relation to the foreign trade. The yearly production of the province of Iloilo, though nothing definite is ascertained regarding it, may be supposed to be 850,000 cavans, of which probably 40,000 are exported to the neighbouring islands and Manila. Capiz may produce about 900,000 cavans, and export about 100,000 in the same way. Antique also contributes a considerable quantity for the consumption of the island, and exports upwards of 15,000 cavans. These amounts, however, must be looked upon as guesses at the actual quantities consumed and shipped.

The paddy exported is chiefly conveyed in small schooners (pancos and barotos) to the neighbouring islands of Leyte and Samar, and also to Camarines and Albay, in exchange for hemp and cocoa-nut oil (the latter obtained at Leyte), which are either brought to Iloilo for sale or taken on to Manila. When prices at Manila leave a sufficient margin (which they generally do throughout the year), some amount of paddy goes in that direction, forming a portion of the cargo of the vessels leaving for the capital.

The paddy shipped from Iloilo is chiefly drawn from the vast plains of Dumangas, Zarraga, Pototan, Santa Barbara and Barotac-viejo. Were a large portion of land brought under cultivation, the increased surplus of this grain would be available for an export to China, in which foreign vessels might be employed, as they frequently are at Sual, in Pangasinan; and it may not unreasonably be surmised that, in the course of time, ships frequenting the port of Iloilo, and proceeding to China, will naturally take part of their cargoes in rice, and thus give a further impetus to its cultivation. At present, owing to the late scarcity of rice in Camarines and Leyte, the price of paddy at Iloilo has risen to 10 rials per province cavan, which is equal to one and a half of the measure (cavan del rey) used at Manila. The other articles shipped from Panay likely to be of importance to the direct export trade are:—

Hides—Buffalo and cow, of which the last year’s exports to Manila were 128 tons from Iloilo, 60 tons from Capiz, and 24 tons from Antique. Prices here (very high at present) may be quoted at 5 dollars to 8 dollars for buffalo, and 10 dollars to 14 dollars for cow hides, per pecul.

Horns—A limited quantity from the three provinces. Price, from 2 dollars to 3 dollars per pecul.

Cowries—430 cavans were shipped last year from Capiz, 42 from Antique, 33 from Iloilo. This article, formerly worth at Manila 2·50 dollars to 3 dollars per cavan, has lately risen to 15 dollars.

Gum Mastick—2,359 peculs, or 147 tons, were sent last year from Capiz to Manila, where its value is usually from 1·50 dollar to 3 dollars per pecul.

Mother-of-Pearl Shell—A small quantity is obtainable at this port, and at Capiz, chiefly brought from Sooloo, viâ Zamboanga, and from the adjacent islands of the Silanga. Quotation here usually about 18 dollars to 22 dollars per pecul.

Rattans or Canes—Used in packing produce at Manila; 401,000 went forward from Capiz in 1856, 104,000 from Iloilo, and 97,000 from Antique.

Mat Bags—Made from the leaf of the sago palm, used also for packing; 155,850 were shipped to Manila, from Capiz, in 1856.

Beeswax—A few peculs are annually shipped from the three provinces to Manila.

Gutta-Percha—Some quantity of this valuable substance has been sent from hence to Manila, but, either owing to adulteration, or ignorance of the proper mode of preparation, it has not obtained an encouraging price. The tree yielding it, called by the Bisayans nato, abounds in this province, and in Guimarás, and if it prove to be the real Isonandra gutta of the Straits and Borneo, should hereafter become of considerable importance. The monopoly of shipment from Manila, granted to Señor Elio, has an injurious effect on the production of this article.

Timber—for building, and woods, of various descriptions, for furniture, abound in Panay, and the islands of the Silanga and Guimarás are peculiarly rich in valuable trees. From thence are obtained the supplies for Iloilo and the neighbouring towns, and for the construction of vessels, occasionally built at Guimarás, where one of 350 tons is now (1857) on the stocks; but as yet little impression has been made on the immense quantity to be obtained.

Of other articles, which are either not adapted for European markets, or as yet produced in insignificant quantities, I will merely enumerate—cocoa, of excellent quality; arrowroot; vegetable pitch, of which a considerable quantity is sent to Manila; wheat, which grows freely in the elevated districts of the island, and of which 1,125 bags were sent from Iloilo and Antique in 1856; maize, beche-de-mer, dried vegetables (beans, &c., a large amount), sago, cotton, tortoise-shell, deer-skins, ginger and gold-dust.

Gums, dyes and drugs, of various descriptions, abound in Panay, and a scientific examination of the many products of this nature, of which little or no use is made, is a great desideratum. It should be borne in mind that most of the minor articles above-mentioned are also produced by the neighbouring islands, and may be therefore obtainable in increased quantities, should the anticipation of Iloilo becoming in a great measure the emporium of the trade of the Bisayas be realized in future.

Of the mineral wealth of the island little or nothing definite is known. Gold is found in the bed of a river near Abacá, in this province, and near Dumárao, in Capiz. Iron and quicksilver are said to have been discovered, the former at various places in the island; and coal is reported to exist in Antique; but these are points which have hitherto received little attention. In a journey to the interior, made with the governor of Iloilo, through the Silanga, along the whole north-eastern portion of the province, and as for as the Capiz boundary, near Dumárao, Mr. Loney was shown several specimens of ore, apparently containing a large percentage of iron. With reference to this expedition, Mr. Loney adds from personal experience, his testimony in confirmation of the accounts of the fertility of the island, and the prosperous commercial future which seems to await it. The roads in general are tolerably good until the setting in of the heavy rains from August to October; but there is at present in many cases a want of efficient bridges, which impedes the free transit of produce towards the coast. The island does not afford a superficies large enough for the formation of any considerable streams, and the principal and only important river in this province, the Jalaur, which meets the sea near Dumángas, and by which a large quantity of paddy is conveyed to the coast, and forwarded to Iloilo, is only capable in the dry season of bearing craft of very small burden.

The system of purchases of produce at Iloilo is, as usual in nearly all the provinces, to employ brokers, or personeros, who buy the produce from the native and mestizo growers and dealers at the different pueblos in the interior and along the coast, and receive a commission of five per cent. on the amount delivered. It is generally necessary to make advances through these brokers against the incoming crop, in order to secure any quantity, and such payments in advance are always attended with a certain amount of risk. The price of the article to be received is commonly fixed at the time of paying over the advance, and for any overplus of produce received from the grower the current rate at the time of delivery is generally accepted. In the event of a permanent direct trade being established, it is likely that the practice will in time become more assimilated to that which obtains at Manila, i. e., shippers may be able to purchase or contract on the spot from mestizo, Chinese or Spanish holders of produce, either directly or at the expense of a trifling brokerage.

Nearly all payments being made to the natives in silver—as they will seldom agree to receive gold—it is necessary to place funds here in the former coin.

Besides the natural products above mentioned, Panay produces a large quantity of manufactured goods, both for export and home consumption. Of these the greater and more valuable portions, included under the native term sinamay, are made of the delicate fibres of the leaf of the pine-apple (piña), either pure or mixed with silk imported from China, and a proportion of the finer sorts of British manufactured cotton thread. The process of separating the piña fibres and sorting them in hanks previous to manufacture, and the manufacture itself, requiring a great deal of time and care, the pure piña textures are proportionally dear. Some of the finest sorts are of exquisitely delicate texture. Those mixed with silk, though not so durable, are cheaper, and have of late years been gradually superseding the pure piña fabrics, although these latter are still much worn by the more wealthy natives and mestizos. To such an extent, indeed, is silk from China now imported into this province, that, according to the statement of the principal Chinese trader in this article at Manila, fully 400,000 dollars worth is annually sent to Iloilo from the capital. Latterly the price of silk has risen from 40 to 45 dollars per chinanta of ten catties to 80 and 90 dollars, or say from 450 to 900 dollars per pecul.

The greater part of the piña and mixed piña, silk and cotton fabrics is used for shirts for the men, and short jackets or shirts for the women. The price varies considerably, according to the fineness or coarseness of the texture, and the greater or less amount of mixture, some pieces for the men’s shirts costing as much as 7 dollars (the value of which, elaborately embroidered at Manila, is sometimes enhanced to 50 or 100 dollars), and the inferior sorts 50 cents to 2 dollars per piece of 4½ varas. The figured work of these fabrics is generally of European cotton sewing thread or coloured German and British yarn, and the stripes of thread, yarn or coloured and white silk. Textures of a cheaper character are also extensively made of hemp and other fibres, costing two to four rials each. There is also an extensive manufacture of coloured silk and cotton goods for “sarongs” (similar to those, principally of Bugis manufacture, used throughout the Malayan Archipelago), cambayas, and silk and cotton kerchiefs for the head. The better class of silk fabrics are excellent both for solidity of texture and finish. Those of cotton are principally made of German and British dyed twist, and of native yarn manufactured from cotton grown in several districts in this province, and also imported from Luzon. The finer sorts are well and closely woven, and the ordinary kinds of a cheap description adapted for more common use. Trouserings, of cotton and mixed silk and cotton, are manufactured to some extent, but the Manchester and Glasgow printed drills and plain grandrills are fast displacing them as articles of general consumption. Among the other manufactures may be enumerated table-cloths, napkins, towels, coverlets, cotton rugs, &c. Of embroidery work, which enters so largely into the industry of the provinces of Bulacan and Manila, there is little done in Iloilo, with the exception of the working of sprigs of flowers on the lace and network mantillas, which are much used by the female population in attendance at church.

In addition to the goods above mentioned, a considerable amount of coarse fabrics is made of the leaf of the sago palm, of hemp, and of other fibres. These are known in the Manila market as Saguran, Guináras and Medrinaque, and are shipped to the United States and Spain, and in lesser quantity to England. Saguran and guináras are largely used at the government factories in packing the leaf tobacco forwarded to Spain. Price, from 25 to 37½ dollars per pecul of 7½ to 8 varas. Medrinaque has for some years past been exported in increasing quantity to the United States and Europe, where it is chiefly used for stiffening dresses, linings, &c. This article is principally made at Samar, Leyte and Cebú, from whence, in case of direct export, it will be obtainable for shipment. Present prices in the Manila market for Cebú 20 dollars, Samar 18 dollars, per fifty pieces.

Considering that the Philippines are essentially an agricultural rather than a manufacturing region, the textile productions of Iloilo may be said to have reached a remarkable degree of development. Nothing strikes the attention at the weekly fairs held at the different towns more than the abundance of native goods offered for sale; and the number of looms at work in most of the towns and villages also affords matter for surprise. Almost every family possesses one of these primitive-looking machines, with a single apparatus formed of pieces of bamboo, and, in the majority of the houses of the mestizos and the well-to-do Indians, from six to a dozen looms are kept at work. The total number in this province has been computed at 60,000; and though these figures may rather over-represent the actual quantity, they cannot be much beyond it. All the weaving is done by women, whose wages usually amount to from 1 to 1·50 dollar per month. In general—a practice unfortunately too prevalent among the natives in every branch of labour—these wages are received for many months in advance, and the operatives frequently spend years (become, in fact, virtually slaves for a long period) before paying off an originally trifling debt. There are other workwomen employed at intervals to “set up” the pattern in the loom, who are able to earn from 1 to 1·50 dollar per day in this manner. It should be added that Capiz and Antique also produce, in a lesser degree than Iloilo, a proportion of manufactured goods.

Notwithstanding the increasing introduction of European piece goods into Panay, it is gratifying to observe that the quantity of mixed piña stuffs exported rather augments than otherwise with the gradual addition to the general population and the increased means derived by it from the rapidly progressive development of the resources of the islands. Judging from the values of the quantities taken on in almost every vessel leaving for the port of Manila, the annual export in that direction would not seem to be at all over-estimated if put down at 400,000 dollars. The goods represented by this amount are not, it should be remarked, used in the city and province of Manila alone, but enter also into the consumption of Pampanga, La Laguna, Camarines and other provinces of Luzon. In addition to the export of piña to the capital, about 30,000 dollars worth of cotton and silk sarongs and handkerchiefs are sent yearly to Camarines. Some quantity is also exported to Leyte and Samar, but anything like an approximate value of the goods so shipped cannot be given. In fact the subject of statistics here has received so little attention, either from the authorities or from the local traders themselves, that on terminating his notice of the principal articles exported from Panay, Mr. Loney regrets to find himself unable to supply a reliable account of their united value. The Estadistica de Filipinas, issued in 1855, and compiled at Manila by the Comision Central, nominated for that purpose, gives, from data probably obtained from the very imperfect custom-house entries, the following as the value of the imports into Manila from Panay in 1854:—

Iloilo—		Dollars.	Dollars.
	Iloilo	264,416
	Guimbal	39,850
		———	304,266
Capiz—
	Capiz	181,681
	Calwo	114,124
	Jbajay	7,095
	Batan	15,147
		———	318,047
Antique—
	Antique	18,866
	San José	2,925
	Cagayancillo	3,061
	Culasi	1,199
		———	26,051
			648,364

But the most cursory examination of what must be the probable value of the more important articles exported, even adopting the probably understated quantities given in the preceding remarks, leads to the conclusion that the export to Manila from the province of Iloilo alone must equal or exceed the amount given by the Estadistica as the total sum for the provinces.

Presuming the quantities and values to be as undernoted, there will result of

					Dollars.
Piña, silk, hempen and othermanufactures					400,000
Tobacco,	30,000	quintals,	average 3½	dolls.	105,000
Paddy,	30,000	cavans,	average ,, 1	dolls. ,,	30,000
Sugar,	20,000	peculs,	average ,, 3	dolls. ,,	60,000
Sapanwood,	33,000	peculs, ,,	average ,, 1	dolls. ,,	33,000
Hemp,	5,000	peculs, ,,	average ,, 5½	dolls. ,,	27,500
Hides,	2,050	peculs, ,,	total value		19,800
All other articles roughly valuedat					45,000
	720,300

To which sum if the exports to other islands and provinces be added, it may be fairly inferred that the total value of exports from Iloilo cannot fall short of 800,000 dollars; an amount which does not seem at all out of proportion to the number of its inhabitants. These figures, if Capiz be put down at 700,000 dollars, and the Antique exports be taken at 70,000 dollars, will give to the yearly exports from Panay an aggregate value of upwards of 1,500,000 dollars.

But even the imperfect data of the Estadistica would afford some indication of the rapid rate of increase in the exports from the three provinces. For example—

	Dollars.
1852—value of products from Iloilo, Capiz,and Antique	271,335
1853 —value ,, of ,, products ,, from ,, Iloilo, ,, Capiz, ,, and ,, Antique ,,	302,605
1864 —value ,, of ,, products ,, from ,, Iloilo, ,, Capiz, ,, and ,, Antique ,,	648,369

Or an augmentation in 1854 of considerably more than double the amount given in 1852. While on this subject, it may be added that the local custom-house has unfortunately registered no complete details of the exports for 1856, though it has commenced doing so for 1857. These details are, however, relatively of much less importance than those of direct foreign shipments, which will demand future attention.

Mr. Loney thus adverts to the present state of the Iloilo import trade:—

“Although perhaps the greater part of the clothing for the population of Panay is furnished by the native looms, still a large amount of European goods is annually imported from Manila. I estimate that on the average (as far as can be judged where anything like positive data are totally wanting) about 30,000 dollars to 40,000 dollars per month are now brought in goods to the port of Iloilo by the mestizo and Chinese traders, and subsequently disposed of at the larger markets of Jaro, Molo, Oton, Mandurriao, &c., from whence a certain portion finds its way into the interior. This branch of the trade is as yet principally conducted by the mestizo dealers of Molo and Jaro, who, on completing their purchases of native-made goods for the Manila market, embark with them (in numbers of from six to ten, fifteen, and sometimes twenty) in the coasting vessels leaving for the capital. The returns for these speculations they generally bring back in foreign (principally British) manufactures, purchased at cheap rates from the large Chinese shopkeepers at Manila. The sale of these goods by retail here is still conducted in the rather primitive way of conveying them from place to place on certain fixed days. In this way goods that appear to-day at the weekly fair or market of Jaro, are subsequently offered for sale at Molo, Mandurriao, Oton, or Arévalo. They are carried to and from the different pueblos in cumbrous, solid-wheeled vehicles, drawn by buffaloes and oxen, a mode of conveyance which, during the wet season, is attended with a good deal of delay and risk. The Chinese dealers at Molo, and a few small traders at Iloilo, have, however, commenced opening permanent shops, and it is probable that the number of these will gradually increase throughout the province, though, as the fairs are also the central point of attraction for all the products within a certain radius of each pueblo, and thus bring together a large concourse of people, the weekly transfer of piece and other goods from one place to another must still continue to a great extent. There are about thirty Chinese permanently established at Molo (mostly connected with others at Manila, either as partners or agents), and two or three at Jaro. A certain number are also employed in voyaging to and from Manila with goods, after realizing which here they return for a fresh parcel, either taking the returns in money or produce. One of the Chinese traders at Molo, who is well supplied from the capital, sells goods to the amount of some 30,000 dollars or 40,000 dollars a-year. Owing, however, to too much competition among themselves and the other traders, I do not, judging from the prices at which they usually sell, think that their profits are in general at all large. The fact that the mestizo dealers look for their principal profit to the piña goods which they take to Manila, and are comparatively less solicitous to obtain an advance on their return goods, has also a tendency to keep prices low, as compared with Manila rates.

“As is the case in most of the provinces where the Chinese have penetrated, there exists a more or less subdued feeling of hostility towards them on the part of the natives, and a tendency, both among the mestizos and Spanish, to regard them as interlopers. But though the government at Manila has been repeatedly urged to withdraw them from the provinces, and confine their trading operations to Manila alone, it does not seem inclined to adopt a measure which would prove injurious to the general trade of the colony. It is true that if a portion of the Chinese were induced to become agriculturists (for which purpose alone they were originally admitted to the provinces), great benefit would accrue in the shape of an increased outturn of produce; but as yet their numbers in the interior are too few to enable them to cultivate the ground on a large scale, and in small isolated bodies they would not have sufficient security from the ill-will of the natives.

“The principal articles of foreign manufacture imported into this province are—handkerchiefs (printed) of bright attractive colours, wove and printed trouserings, ginghams, fancy cambayas, plain grandrills, white shirtings, gray shirtings and gray longcloths, gray twills (29 inches, both American and English), bleached twills, lawns, white jaco-nets, striped muslins, cotton sewing thread, cotton sarongs, cotton twist, or yarn, and woollens (not in much demand). There is also sale for hardware, glassware and earthenware, and for other minor articles.

“Import duties are leviable at Iloilo on a valuation either by tariff, or according to the market rate at time of entry. They are the same as those charged at Manila, viz.:—

		By foreign ships.	By Spanishships.
On most descriptions of foreigngoods		14 per cent.	7 per cent.
	With the following exceptions:— Cambayas, ginghams, handkerchiefs, &c., entirely of black, purple,and blue, with or without white grounds	25 per ,, cent. ,,	15 per ,, cent. ,,
	Yarn of same colour	50 per ,, cent. ,,	40 per ,, cent. ,,
	Ditto, red, yellow, rose and green	free	free
Machinery, gold and silver, plants andseeds		free	free
Made-up clothing, boots, &c.		50 per ,, cent. ,,	40 per ,, cent. ,,
Bottled ale or porter		25 per ,, cent. ,,	20 per ,, cent. ,,
Wine, liquors and vinegar		50 per ,, cent. ,,	40 per ,, cent. ,,
Spirits		60 per ,, cent. ,,	30 per ,, cent. ,,

“Tropical productions, similar to those of the Philippines, are not admitted to consumption, nor fire-arms, without a special licence.

“All goods may be bonded on payment of 1 per cent.

“Export duties on produce of every description to foreign ports are, 3 per cent. by foreign, and 1½ per cent. by Spanish ships, with the following exceptions:—Hemp, 2 per cent. by foreign, and 1½ per cent. by Spanish ships; tortoise-shell, mother-o’-pearl shell, 1 per cent. by foreign, and 1 per cent. by Spanish ships; rice, 4½ per cent. by foreign, and 1½ per cent. by Spanish ships.

“No duties are charged on goods arriving or departing coastwise by coasting vessels.

“Port dues.—No special charges are yet fixed for vessels arriving at Iloilo, but they may be stated as about equivalent to those levied at Manila, viz.:—On foreign vessels arriving and leaving in ballast, 18¾ c. per ton; with cargo inwards or outwards, 34¾ c. per ton; with cargo both inward and outward, 37½ c. per ton.

“Wages are moderate at Iloilo:—Labourers, 12½ c. to 18¾ c. per day; carpenters, 18¾ c. to 25 c. per day; caulkers, 25 c. per day.

“Fresh provisions are obtainable at cheap rates.

“The weights and measures in use for produce are—the quintal, of 4 arrobas, or 100 lbs. Spanish, equal to 101¾ lbs. English; pecul of 100 catties, or 140 lbs. English. The cavan of rice (cavan de provincia) is equal to one and a half of the Manila cavan, or cavan del rey; it weighs about 190 lbs. English, and measures 8,997 cubic inches. The pesada, by which sapan-wood is sold, weighs 13 arrobas 13 lbs., or nearly 2½ peculs.

“The currency is nominally the same as in Manila, but silver dollars have to be paid for nearly all purchases, gold being of difficult circulation.

“From the preceding outline of the trade of this port, you will gather that at present, with an annual export of about 1,600 tons of sugar, upwards of 2,000 tons of sapan-wood, and 350 to 400 tons of hemp, it is (considering the quantity which the foreign shippers would be able to secure) capable of furnishing cargoes for two foreign vessels of moderate tonnage; and next year, as regards sugar, which will form the bulk of the cargoes of foreign vessels loading here, the supply will probably be doubled. The more important question, however, as regards the foreign trade of Iloilo, is not as to the actual quantity of produce (still so very limited) which this island may furnish, but whether the concentration of produce from the neighbouring islands and provinces will in reality be brought about.

“A review of the facts regarding the southern Philippines would seem to lead to a conclusion in the affirmative. With Leyte and Samar giving a combined annual export of 4,000 tons of hemp, Cebú upwards of 5,000 tons of sugar, Negros a (rapidly expanding) product of about 900 tons of sugar and 800 tons of hemp, and without taking into account the possible supply of hemp which may be drawn from South Camerines and from Albay (which produce by far the largest part of the existing export of hemp from the Philippines, and are, during the north-east monsoon, within a shorter distance of Iloilo than Manila), it seems in no way hazardous to assume that, on relatively equal prices being obtainable here, Iloilo will attract in the course of time a gradually augmenting proportion of the products which now go on to Manila. It may be further conjectured that Misamis (which yields a considerable quantity of remarkably good hemp), Caraga, and the other provinces of Mindanao, may also in time contribute their share to the products obtainable at a port which their traders must pass on their way to Manila, though the full development of the intercourse of the neighbouring islands with Iloilo will greatly depend on the amount of European imports with which this latter port should gradually be able to supply its new customers. The opinion of the natives themselves, though not to be taken as a guide, may still serve in some measure as an index of what may be looked for. In talking on the subject to the owners of the small craft whose cargoes of hemp have been brought to Iloilo, they have frequently said, ‘If foreign vessels come here and give higher prices, much more hemp from Leyte and Camarines will come to Iloilo.’

“Cebú producing rice and manufactures for its own consumption, there is at present little communication between it and Iloilo; but it is encouraging to learn that one of the partners of the most enterprising Spanish firm at this place intends proceeding both to Cebú and Leyte, to establish, if practicable, a commercial connection, with the ulterior view of getting both sugar and hemp sent to this quarter.

“It is also a favourable symptom that the trade of the contiguous islands is more and more attracting the attention of some of the foreign firms in Manila. The American houses (generally the first in enterprises of this kind) have already, through Spanish intermedia, established agencies at Negros, Leyte and Cebú, for the purchase of hemp and sugar, and it is stated from Manila, on apparently good authority, that one of them has lately advanced a sum of 170,000 dollars for this purpose, the distribution of which should have a stimulating effect on production, and thus give a collateral aid to the future exports from Iloilo.

“Considering the great advantages which would accrue from the establishment of lines of small merchant steamers between the islands, the fact that the government have lately given orders to commence working the extensive coal districts existing at Cebú is not without importance. The subject of steam communication for the archipelago is attracting attention at Manila, and it is not improbable that in a few years the islands will be connected in this way in a manner which will greatly tend to their advantage.

“It should have been previously mentioned that the voyage from Iloilo to Manila during the north-easterly monsoon (from November to March) usually occupies the better class of square-rigged vessels in the trade from ten to fifteen days, and from four to six days on the return voyage. Owing to the protection afforded by the group of islands forming the Silanga, and by other harbours on the route, vessels do not (as is usually the case between the ports on the northern part of the more exposed coast of Luzon and the capital) lay up during the stormy months from September to November; and communication, though less frequent during these months, is seldom altogether suspended for any length of time with Manila. On the average, a vessel leaves for the capital every eight to twelve days.”

I add a few further extracts from a report on the trade of 1858, with which Mr. Loney has favoured me, and which strongly exhibits the growing importance of Iloilo.

“The import trade, in direct connection with British and foreign houses, has increased during the past year to a degree which could not have been anticipated. Formerly it did not exceed 7,000 dollars in amount; but now, during a period of two years, it has reached fully 140,000 dollars, and is likely to increase much more in future as the capabilities of the market for taking off an important quantity of manufactures become more fully known.

“Owing to the existence of a stock of foreign articles at Iloilo, obtainable by the native dealers as a general rule (and as a consequence of the more direct manner in which they reach their hands) at cheaper prices than from the Chinese shops at Manila, many of the native, and even some of the Chinese traders, find the advantage of making their purchases on the spot instead of in Manila, and some of the former have ceased altogether to undergo the expense and loss of time they formerly incurred in proceeding to Manila to lay in their stocks, while others make voyages to the capital less frequently than before, and send on their piña goods under the care of friends or agents; consequently, the trade is beginning to be conducted in a less primitive manner than in previous years, when each small trader brought on his goods himself, purchased at high rates from the Manila shopkeepers. Dealers from Antique, from the island of Negros and from Leyte now also find at Iloilo a stock of goods sufficient to supply their wants. Another beneficial effect is, that those who buy wholesale at Iloilo are enabled to dispose of their goods to the small dealers, or to their agents, who distribute them over the interior, at lower prices than formerly. Goods are thus saleable, owing to this greater cheapness, at places in the interior of the island, where they were formerly rarely bought, and the natural consequence is, a considerable increase of consumption. The concurrent testimony of all the older residents in the province is, that during the last few years a very marked change has taken place in the dress and general exterior appearance of the inhabitants of the larger pueblos, owing in great measure to the comparative facility with which they obtain articles which were formerly either not imported, or the price of which placed them beyond their reach. In the interior of the houses the same change is also observable in the furniture and other arrangements, and the evident wish to add ornamental to the more necessary articles of household uses; and those who are aware how desirable it is, from the peculiarly apathetic nature of the natives, to create in them an ambition for bettering the condition of themselves and their families, or emulating that of others, by placing within their reach the more attractive and useful articles of European production, will at once recognize in these facts the beneficial tendency of increased and cheaper imports.

“With regard to duties derivable from imports, we must consider the more or less remote probability of direct imports from Europe or China to Iloilo. It needs very little acquaintance with the gradual and hesitative processes of trade to be aware of the slowness with which they adapt themselves to new channels of communication. Especially is this the case in reference to these southern islands, from the previous commercial seclusion in which they had been kept—a seclusion so great that it may be safely asserted that the island of Panay, with its 750,000 inhabitants, is scarcely known, by name even, in any of the commercial marts of Europe, America, or even of Asia. Consequently, it affords no ground for surprise that no direct transactions in imports have taken place. It must be recollected that the years 1857–58 have been eminently unfavourable for new commercial enterprises of any kind, owing to the depressed state of trade in all the markets of the world. This state of depression, though still felt, is, however, drawing to a close, and the Iloilo market, among others, will doubtless attract the attention of European manufacturers and capitalists, though some time must necessarily elapse before a sufficient number of shippers can be found to send consignments of such a varied nature and assortment as would be required to make up a cargo to suit the wants of Panay and the neighbouring islands. Already consignments have arrived by way of Manila, which were made up specially for the Iloilo market; and this circumstance, and the fact that the Manchester manufacturers are beginning to take an interest in the Iloilo demand, fully warrant the belief that before long consignments from Europe, by the way of Manila, will take place on an important scale, and pave the way to direct shipments to Iloilo. Though it is almost useless to prognosticate in cases of this kind, where so many circumstances may occur to retard or accelerate the development of a new market, still I have no hesitation in affirming it to be much more than probable, that in the course of two years from this time Spanish vessels will arrive from Liverpool direct, or touching and discharging part of their cargoes at Manila, more particularly as by that time direct exports will have taken place, and the sugar crop be raised to a point which will render it easy for the vessels arriving with piece goods to obtain return cargoes of sugar, sapan-wood and hides, all of which products, it is unnecessary to say, can be obtained at Iloilo much more cheaply than in Manila.

“It is also probable that direct imports from China will take place sooner than from Europe. The employment of raw Shanghai silk is much greater at Iloilo than in any of the other Philippine provinces, and the consumption amounts to fully 30 peculs per month, worth, on an average, 600 dollars, silver, per pecul, or say 18,000 dollars per month.

“The export trade from Iloilo direct to foreign markets is, in fact, evidently the primary event on which the commercial fate, so to speak, of the Bisaya Islands depends. The chief obstacle, in addition to those mentioned above, which has retarded its commencement has been the extreme smallness of the yield of sugar. In 1855–56, the Iloilo crop, including some quantity received from the island of Negros, scarcely reached 12,000 peculs, and, instead of increasing, it had been declining in consequence of the discouraging effect of the miserable price of 1·875 to 2 dollars per pecul of 140 lbs.; all that could be obtained for it after incurring the expense of sending it to Manila. In 1856–57, under the stimulus of higher prices, the yield amounted to 35,000 to 37,000 peculs. In 1857–58, these high prices had a still more stimulating effect on the planting of cane, and it was calculated that the crop would yield at least 50,000 peculs; but an excess of rainy weather reduced the actual outturn to about 30,000. The present crop, however, of 1858–59 has escaped the danger of rain, and it is computed that it will yield about 80,000 peculs from January to July next. Some estimates place it as high as 100,000 peculs, but in this I think there must be exaggeration.

“The yield of sugar at Iloilo (leaving out of the question the crop of Isla de Negros, which is now computed to produce 30,000 peculs, and that of Antique, 20,000, both available for the Iloilo market) having fortunately reached the above amount, direct sugar exports have now become possible, and preparations are made for shipments to Australia direct, during the first months of the ensuing year.

“‘To reach the consuming markets by the most direct line, to avoid transshipments and save double freights are objects, commercially, of the highest importance.’[4] And there is an aspect of the matter which renders it still more necessary, as regards the Philippine trade, that these objects should be kept in view. Australia is now, after Great Britain, the most important market for the Philippine sugars, and particularly for the reclayed Bisayan sugars of Iloilo and Cebú, which are there used for refining purposes, and it will most undoubtedly be before long the largest consumer of the sugar of these islands. In 1857 the exports of Iloilo and Cebú sugar from Manila to Australia were 18,178 and 51,519 peculs respectively, while to all the other markets, including Great Britain, they were only 11,519 and 41,699 peculs; and the same year the total export of all kinds of sugar to Australia was even more than to Great Britain, being 17,847 tons, or 285,552 peculs, to the former, against 16,675 tons, or 266,800 peculs, to the latter market. In the present year (1858), the total export from Manila to Australia, owing to a deficiency in the Pampanga crop, and the discouragement caused to the Australian importers by the high prices of 1857, have only reached 9,038 tons, or 145,028 peculs.

“In the meantime Mauritius, Java and Bengal all supply large and increasing quantities of sugar to Australia, and Mauritius in particular, possessing the great advantages of greater proximity (as to time) and of machinery and other appliances far superior to those in use in the Philippines, furnishes the Australian market with a large quantity of crystallized and yellow sugars, which are much sought for in Sydney and Melbourne, where the steady increase of population and general wealth augment the demand for high-classed sugars. In 1857 the Australian colonies took 24,000 tons, or 384,000 peculs, of sugar from Mauritius; and the latest accounts anticipate that the shipments this year to the same quarter will be 30,000 tons, or 480,000 peculs. To quote the words of the Port Louis Commercial Gazette of August 10th, 1858:—‘There is no doubt that the present crop will reach the figures of 240,000,000 lbs., say 120,000 tons’ (nearly 2,000,000 peculs); ‘but as the Australian colonies took 24,000 of the last crop, we must expect they will take at least 30,000 of this, our crystallized and yellow sugars gaining in estimation there.’ The same journal, of the 27th of October, adds, ‘This facility of realizing produce at fair prices has given animation to business and has improved the prospects of the colony. There are now 150 vessels in our harbour, loading and discharging for and from different parts of the world. Our marine establishments are busily engaged in repairing vessels of different nations that have been happy to seek refuge here; our vast quays are too small for our commerce; the capacious new stores lately erected, and which embellish our port, are filled with goods and produce; 25,000 immigrants have been added to our population this year, whilst only 6,500 have left. Our public revenue has largely increased—companies are prosperous—cultivation has been extended, sugar machinery and works improved and increased, and private buildings throughout the principal part of the town enlarged and improved in appearance.’

“Fortunately for the Philippines, with respect to their better-appointed rivals—Mauritius, Java and Bengal—the low-graded unclayed sugars of Iloilo, Capiz and Antique, Isla de Negros and Cebú, are, in ordinary times, cheaper than those of either of the latter colonies, and consequently more adapted for refining purposes; but nothing can place in a stronger light than the above facts regarding the export from Mauritius the very great importance of keeping the way open for exporting the unclayed Philippine sugars to Australia at the cheapest possible cost to the importers.

“The much greater extent and more than equal fertility of the Philippines, as compared with Mauritius, must, in the end, if no artificial obstacles are again imposed on the production of the former, lead to the development of larger sugar crops than those of the latter colony.

“The results of the opening of the ports of Soerabaya, Samarang, Cheribon, and others in the island of Java are encouraging circumstances, as showing, among other similar examples, of what importance Iloilo, as the central port of the Bisayan Islands, may become. Soerabaya and Samarang (and especially the former), which enjoy a favourable proximity to the chief points of production, now export an immense quantity of produce, and orders for the direct shipment to Europe of rice, sugar, coffee, tobacco and other Javan products are transmitted by electric telegraph by the Batavian houses to their agents at these ports over a distance exceeding 350 miles. I cannot at present do more than briefly allude to the approaching commencement of an export of timber and furniture woods from Iloilo and Antique to China. The Spanish ship Santa Justa loaded a large cargo of wood this year for Hong Kong, which has lately been sold at 63½ cents per foot. Since then, in anticipation of the demand for the rebuilding of Canton, the price has risen in Hong Kong, and arrangements are being made for the charter of a large vessel, either Spanish or foreign, to convey other cargoes to China; and there is every prospect of there being, before long, an active traffic in this article, which, as before noticed, is of excellent quality, abundant, cheap, and easily accessible near Iloilo, and at the adjoining province of Antique.

“It is recommended that vessels making the voyage to Iloilo from Australia, or any place to the south of the Philippines, should, during the S.W. monsoon, enter the archipelago between the islands of Basilan and Zamboanga, and, on passing Point Batalampon, keep well up to Point Gorda, and make the Murcielagos Island, so as to avoid being driven to the westward by the strong currents setting from off the Mindanao coast during both monsoons.

“Pending the N.E. monsoon, the best course is to make a détour to the east of the Philippines, and enter the archipelago by the Straits of San Bernardino. The straits should be entered by Samar and Masbate. Vessels bound from Manila or northern ports may proceed through the Mindoro passage, but they should consult Don Claudio Montero’s charts. After passing Tablas and Romblon (an excellent harbour there), make for the Silanga Islands, a good mark for which is the high conical island called Sugar Loaf (Pan de Azucar). During the N.E. monsoon vessels should keep between the islands of Jintotolo and the larger Zapato (Shoe Island), but during the S.W. pass between Oliuaya and the smaller Zapato. The best channel is between Sicogon and Calaguan, but the outer and broader passage between the groups of islands and that of Negros is preferable for large ships. There is safe anchorage through the inner route. At Bacuan and Apiton supplies are to be found.

“The tide through the Silanga Islands and Seven Sins flows at the rate of three to four miles an hour—from the Seven Sins to Iloilo often at six to seven miles an hour.”

Commercial prosperity is so intimately connected with general improvement and the increase of human happiness, that one cannot but look with interest upon the results of any legislation which removes the trammels from trade and gives encouragement to industry, and the island of Panay may be considered a promising field for the future. The latest accounts report that the planting of cane has been extended very rapidly in this province, owing to the continuance of high prices for sugar, and also to the fact of the direct export trade to Australia having commenced. Planters now see that the arrival of foreign vessels will lead to a permanent demand for their sugars at prices which will pay them better than those formerly obtainable for the Manila market, from whence, before the opening of the port of Iloilo to foreign trade, all the sugar of this and the neighbouring provinces had to be shipped at a great additional expense in heavy coasting freight, landing and reshipping charges, sea risk, commission, brokerage, &c., all of which are now avoided by direct shipment at the place of production.

“The stimulus given to planting has resulted this year in an increase in the yield to 60,000 peculs (3,750 tons), and, judging from the amount of cane planted for next season’s crop, it is fully anticipated that in 1860 about 140,000 peculs (7,500 tons) will be produced, without counting on the quantity yielded by the neighbouring provinces of Antique (30,000 peculs) and the island of Negros (35,000 to 40,000 peculs), from both of which places sugar is brought and exported.

“The difference in the cost of sugar at Iloilo and at Manila is at present 2l. 16s. 5d. per ton, free on board; as will be seen from the following:—