X. Agricultural Products, Forest Resources, Minerals, and Other Industries
The Philippines are eminently an agricultural country. Agriculture is the principal source of the Islands’ wealth, and the bulk of the exports consists mostly of agricultural products.
Hectares under cultivation An estimate of the number of hectares under cultivation during the year 1922, shows the following:
| Hectares devoted to rice. | 1,661,430 |
| Hectares devoted to abaca. | 494,990 |
| Hectares devoted to sugar-cane. | 240,820 |
| Hectares devoted to coconuts. | 422,684 |
| Hectares devoted to corn. | 549,960 |
| Hectares devoted to tobacco. | 59,870 |
| Hectares devoted to maguey. | 27,670 |
| Hectares devoted to cacao. | 1,155 |
| Hectares devoted to coffee. | 882 |
| Total. | 3,459,461 |
This is only about 10 per cent of the total area of the Islands.
Extensive areas of agricultural lands which remain undeveloped are the Agusan Valley in eastern Mindanao; the Cotabato Valley in central Mindanao; sections of the plains of central Luzon and of the Cagayan Valley; the central plain of Panay and the meadowlands of Palawan, Samar, and Mindoro. There are also the coastal plains of Zamboanga, Mindanao, Leyte, and Negros.
The average area of farms in the Islands according to the Census of 1918 is 2.33 hectares, as against 3.47 hectares in 1903.
Farms owned by Filipinos Out of the 1,955,276 farms in the Islands today 1,946,580 or 96 per cent, are owned by Filipinos, 2,678 by Americans, 949 by Europeans, 1,612 by Asiatics, and 3,457 by other nationalities.
Exports THE PRINCIPAL CROPS.—The principal crops produced by the islands are rice, abaca (Manila hemp), coconut, sugar, and tobacco. All of these except rice are articles of export. The following table shows the respective values of these exports:
| Article | Value | |
| 1921 | 1922 | |
| Abaca (Manila hemp). | ₱25,969,385 | ₱39,081,829 |
| Coconut oil. | 32,103,036 | 31,468,971 |
| Copra. | 26,146,913 | 28,206,146 |
| Sugar. | 51,037,454 | 51,165,110 |
| Tobacco products. | 16,564,434 | 17,340,236 |
| Maguey. | 1,848,794 | 2,973,203 |
| Cordage. | 918,544 | 1,099,375 |
| Fruits and nuts. | 239,060 | 532,632 |
| Rubber, crude. | 25,700 | —— |
| Ilang-ilang oil. | 57,554 | 60,606 |
Rice is almost exclusively the staple foodstuff of the people; but corn in some provinces constitutes an important part of the daily diet. Although the production of rice has been increasing steadily since 1910 the Philippines has had to import rice from other countries, especially Indo-China, for a part of its supply. The government is now exerting every effort towards solving the problem. Immense sums are being appropriated for the construction of irrigation systems so indispensable in the successful growing of rice.
Fibers Abaca (Manila hemp).—The Philippines is the only source in the world for abaca, commercially known as Manila hemp. There are two other commercial fibers, however, that grow in the islands. These are sisal and maguey. Although other kind of fibers grow in other countries especially in Mexico, the world must always use a certain amount of the Manila hemp for binder twine and for high grade ropes.
Hemp exports, 1913–1922
| Year ended December 31— | To all countries | To the United States | |||||
| Quantity | Value | Average value per 1,000 kilos | Percentage of total export | Quantity | Value | Percentage of total hemp | |
| Kilos | Pesos | Pesos | Kilos | Pesos | |||
| 1913 | 119,821,435 | 42,242,168 | 352.54 | 44 | 47,144,252 | 19,574,434 | 46 |
| 1914 | 116,386,575 | 38,389,630 | 329.85 | 39 | 50,140,193 | 19,238,752 | 50 |
| 1915 | 142,010,431 | 42,678,200 | 300.53 | 40 | 69,251,180 | 22,702,566 | 53 |
| 1916 | 137,326,092 | 53,384,593 | 388.70 | 38 | 66,344,154 | 27,279,018 | 51 |
| 1917 | 169,435,204 | 98,615,559 | 552.51 | 49 | 95,580,320 | 59,291,095 | 63 |
| 1918 | 169,260,377 | 116,383,100 | 687.60 | 43 | 86,823,997 | 65,468,402 | 56 |
| 1919 | 121,247,668 | 53,703,052 | 442.92 | 24 | 65,509,134 | 32,390,957 | 60 |
| 1920 | 141,485,785 | 71,724,000 | 506.93 | 24 | 67,041,769 | 41,228,052 | 58 |
| 1921 | 100,401,940 | 25,969,385 | 258.65 | 15 | 34,558,262 | 10,914,117 | 42 |
| 1922 | 172,026,591 | 39,081,829 | 227.18 | 20 | 83,544,420 | 20,663,552 | 53 |
Coconuts.—In the production of coconut, the Philippines is the third most important source in the world. It is excelled only by the Dutch East Indies and the Federated Malay States. It is estimated that there are some 84,536,710 trees in the islands which in 1922 produced 366,808,888 kilos of coprax, valued at ₱44,057,045.
The traveler in Philippine waters always notices along the coast the extensive groves of coconut palms which extend miles and miles into the hinterland as far as the eye can reach.
Uses of the Coconut In the Philippines the coconut tree serves many ends. The meat is eaten as a delicacy. The leaves supply roofing for houses. The shell of the nut is used for dishes, cups, and spoons; the oil for soap and illumination; in some sections the same oil is used as a frying fat for cooking purposes. The fiber from the husk is used for ropes and mats. The husk itself is used for fuel. The water inside the nut is an ever-ready delicious drink.
Oleomargarine comes from coconut oil fat, an industry which has developed considerably in Denmark and Germany and also in the United States.
Copra, or coprax—Other by-products.—Copra, or coprax as it is sometimes called, is the dried meat of the ripe coconut. It is obtained by breaking the nut into halves and drying them in the sun or artificially in kilns until the nut-meat is separated from the shell.
The exportation of coconut oil from the Philippines since 1913 is shown in the following table:
Coconut oil exported, 1913–1922
| Year ended December 31— | To all countries | To the United States | |||||
| Quantity | Value | Average value per 1,000 kilos | Percentage of total export | Quantity | Value | Percentage of total coconut oil | |
| Kilos | Pesos | Pesos | Kilos | Pesos | |||
| 1913 | 5,010,429 | 2,292,678 | 457.58 | 2.40 | 4,805,384 | 2,190,876 | 96.56 |
| 1914 | 11,943,329 | 5,238,366 | 438.60 | 5.38 | 11,896,975 | 5,214,326 | 99.54 |
| 1915 | 13,464,169 | 5,641,003 | 418.96 | 5.24 | 13,367,932 | 5,609,263 | 99.44 |
| 1916 | 16,091,169 | 7,851,469 | 487.94 | 5.61 | 15,307,429 | 7,388,748 | 94.11 |
| 1917 | 45,198,415 | 22,818,294 | 504.85 | 11.93 | 45,045,690 | 22,755,319 | 99.72 |
| 1918 | 115,280,847 | 63,328,317 | 549.33 | 23.42 | 113,524,729 | 62,198,528 | 98.22 |
| 1919 | 139,942,612 | 73,719,504 | 526.78 | 32.59 | 85,376,904 | 45,797,329 | 62.12 |
| 1920 | 77,571,405 | 46,537,773 | 599.93 | 15.40 | 71,944,801 | 43,366,086 | 93.18 |
| 1921 | 90,292,242 | 32,103,036 | 355.55 | 18.22 | 80,504,458 | 27,907,379 | 86.98 |
| 1922 | 107,208,191 | 31,468,971 | 293.63 | 16.46 | 106,645,477 | 31,288,505 | 99.43 |
Copra meal Another by-product of the coconut oil is known as copra meal. It is the meal remaining after most of the oil has been expressed. This is used as cattle feed in Germany and Denmark.
Soap Recently, certain corporations in the Philippines have gone so far as to use their oil to manufacture many of the varied products which were formerly made only in the United States and Europe. Soap was the first product to be manufactured locally. There are two companies now, however, which manufacture lard substitutes under their own trade names. There is an attempt also to manufacture coconut butter for sale in the islands.
Desiccated Coconut The manufacture of desiccated coconut is an infant industry in the Philippine Islands. The demand for this in Europe and particularly in the United States is very large and is mostly filled by Ceylon or by factories in the United States which import the whole nuts from the West Indies. Last year, however, the desiccated coconut from the Philippines gained a strong foot-hold in the United States and it is expected that Ceylon will be ousted from this field in the near future due to the free trade relations between the United States and the Philippines. On desiccated coconut imported into the United States from foreign countries, a duty of 3½ per cent is levied. At present there are six factories of desiccated coconut in the Islands.
Coir Another opportunity for development lies in the use of coir, the tough fiber of the husk surrounding the nut. In other countries this is worked up into door mats, rope, twine, etc., but in the Philippines the husks are usually burned as fuel except in a few instances where they are utilized for domestic purposes. It is also possible that some day other minor parts of the palm may be used. At present the midribs of the palm leaflets are used in making brooms and baskets, but the demand for exports is still small.
The exportation of copra from 1913 to 1922 is as follows:
| Year ended December 31— | To all countries | To the United States | |||||
| Quantity | Value | Average value per 1,000 kilos | Percentage of total export | Quantity | Value | Percentage of total copra | |
| Kilos | Pesos | Pesos | Kilos | Pesos | |||
| 1913 | 82,219,363 | 19,091,448 | 232.20 | 19.98 | 10,027,813 | 2,398,166 | 12.56 |
| 1914 | 87,344,695 | 15,960,540 | 182.73 | 16.39 | 18,181,371 | 3,212,266 | 20.13 |
| 1915 | 139,092,902 | 22,223,109 | 159.77 | 20.65 | 21,217,754 | 3,520,090 | 15.84 |
| 1916 | 72,277,164 | 14,231,941 | 196.90 | 10.17 | 35,470,438 | 7,079,128 | 49.74 |
| 1917 | 92,180,326 | 16,654,301 | 180.67 | 8.71 | 68,253,929 | 12,235,902 | 73.47 |
| 1918 | 55,061,736 | 10,377,029 | 188.46 | 3.84 | 55,061,641 | 10,377,011 | 99.99 |
| 1919 | 25,094,027 | 8,839,376 | 352.25 | 3.91 | 2,313,967 | 818,246 | 9.26 |
| 1920 | 25,803,044 | 7,433,741 | 288.10 | 2.46 | 1,433,311 | 382,409 | 5.14 |
| 1921 | 150,335,314 | 26,146,918 | 173.92 | 14.84 | 52,928,570 | 8,665,554 | 33.14 |
| 1922 | 173,051,980 | 28,206,146 | 162.99 | 14.76 | 89,358,118 | 14,495,014 | 51.00 |
Until the production of copra in the Philippines is much higher than at present, it will be impossible to keep all the expellers and presses now installed working at full capacity. It is therefore proposed to start a campaign for the planting of quick-growing crops of oil-bearing seeds. Among the plants that were most popular at first was the tañgan-tañgan, or castor bean. This grows very rapidly and yields a very high percentage of castor oil, which was sold at high prices during the war as a lubricant for aeroplanes and other delicate machinery. At the present writing, however, it is generally thought that the mills will do better if they can turn to the production of peanut oil, using imported peanuts to begin with and enlarging the return as the domestic yield increases.
Sugar.—Cane-sugar ranks first among the islands’ agricultural exports.
As early as 1795 the United States have been importing sugar from the Philippine Islands; for that year 132 long tons were imported.
Up to the middle of the nineteenth century, however, the production of sugar-cane in the Philippines was confined largely to the provinces of Luzon near Manila. But shortly after the Crimean war the demand for sugar in Europe increased, and interest in the industry was greatly stimulated in the Islands. This resulted in the extension of the industry into the Visayan Islands, Occidental Negros becoming the largest cane producing section of the Archipelago, and so continues until the present day.
As late as 1914 most of the sugar produced in the Islands was muscovado. It was not until the establishment of modern sugar centrals that centrifugal sugar was produced. The production of sugar became so stimulated as a result, and in 1922, as many as 455,404,427 kilos were produced. There are now 28 sugar centrals in the Islands as against one in 1910, and several are in process of construction.
The following table shows the growth of the sugar industry from 1913 to 1922:
| Year | Area under cultivation | Production of sugar | Total value of sugar products |
| Acres | Short tons | ||
| 1913 | 435,188 | 345,080 | $12,849,000 |
| 1914 | 418,676 | 408,343 | 14,314,000 |
| 1915 | 427,710 | 421,196 | 16,606,000 |
| 1916 | 444,189 | 412,278 | 17,068,000 |
| 1917 | 459,436 | 425,270 | 19,352,500 |
| 1918 | 507,818 | 474,750 | 20,579,500 |
| 1919 | 494,692 | 453,350 | 37,231,400 |
| 1920 | 487,783 | 466,917 | 79,648,600 |
| 1921 | 596,363 | 589,443 | 48,189,500 |
| 1922 | 595,066 | 533,194 | 29,974,125 |
The quantity and value of the exportation of this product is shown below:
Sugar exported, 1913–1922
| Year ended December 31— | To all countries | To the United States | |||||
| Quantity | Value | Average value per 1,000 kilos | Percentage of total export | Quantity | Value | Percentage of total sugar export | |
| Kilos | Pesos | Pesos | Kilos | Pesos | |||
| 1913 | 157,333,707 | 14,065,778 | 89.40 | 14.72 | 30,716,886 | 3,128,072 | 22.24 |
| 1914 | 236,498,001 | 22,119,186 | 93.53 | 22.71 | 168,530,115 | 16,483,706 | 74.62 |
| 1915 | 211,012,817 | 22,620,430 | 107.20 | 21.02 | 82,841,168 | 10,283,159 | 45.46 |
| 1916 | 337,490,000 | 37,175,185 | 110.12 | 26.58 | 131,885,246 | 17,267,401 | 46.45 |
| 1917 | 205,908,492 | 24,555,357 | 119.25 | 12.84 | 62,377,758 | 10,811,518 | 44.08 |
| 1918 | 273,258,396 | 31,608,780 | 115.67 | 11.69 | 106,080,676 | 16,559,780 | 52.39 |
| 1919 | 136,060,322 | 30,415,701 | 223.55 | 13.44 | 32,159,363 | 7,717,934 | 25.37 |
| 1920 | 180,340,670 | 99,238,520 | 550.28 | 32.83 | 123,947,209 | 78,697,869 | 79.30 |
| 1921 | 289,876,164 | 51,037,454 | 176.07 | 28.96 | 150,478,581 | 33,752,357 | 66.13 |
| 1922 | 362,071,661 | 51,165,110 | 141.31 | 26.77 | 244,851,617 | 40,020,490 | 78.22 |
A Cigar Factory in Manila
Tobacco—The Manila cigar.—The Manila cigar is just as well known to the world as the Manila hemp. It is among the few manufacturing enterprises that have developed factory conditions in the Islands.
History For generations the Spaniards conducted the tobacco business in the Philippines on the basis of Government monopoly. The monopoly came to an end in 1882 when the Filipino workers defied both the Spanish government and those directing the work in the factories because of the harsh and cruel treatment they were getting.
Thereafter, for many years, the tobacco business suffered extreme depression, and it was not until American occupation that the industry received anything of a stimulus. The Manila cigar, however, was then at a disadvantage in comparison with cigars from other countries, because the latter were allowed a discount from the tariff, while the Manilas were required to pay the full customs duty.
With the establishment of free trade, however, between the islands and the United States the Manila cigar has been able to compete with other cigars in the United States, by far the greatest market therefor. This fact accounts for the unprecedented steady increase of the amount of cigars exported from the islands. In 1904 the exports amounted to 104,753,000 cigars, valued at ₱2,011,790. In 1919 the exports had risen to 392,339,000 worth ₱18,157,707.
The Tobacco Region Although tobacco is grown in many parts of the islands, all that which is exported comes from the Provinces of Cagayan, Isabela, and Nueva Vizcaya, in northern Luzon. All grown elsewhere is consumed locally, also exported to European and other countries. The tobacco growing districts in these three provinces lie in the valley of the Cagayan River, a stream which is about 160 miles long. The valley is from 2 to 14 miles wide. During the rainy season, which is between the time that one crop is harvested and the next one planted, the Cagayan River rises to a height of 40 feet inundating all of the lowlands. This overflow never fails, and it always leaves on the valley a deposit of rich soil, renewing the fertility of the entire valley and making the use of fertilizers unnecessary. On one field in Cagayan Valley, crops have been produced without interruption and without fertilizer for one hundred and thirty-five years.
Makers of Manila Cigars
Government control and Guaranty No cigar in the world today is produced under such carefully prepared and rigidly enforced regulations as the Manila cigar. The Philippine government has assumed control of the industry, has established invariable standards of excellence, and has guaranteed the production under its own official stamp. If you will examine the next box of Manila cigars you see, you will find that it bears a label stating that its contents are guaranteed by the Philippine government. One of the regulations enforced provides that, under certain limitations, cigars which reach the American dealer in a damaged condition may be returned to the Philippines at the expense of the Philippine government. Another regulation is to the following effect:
“To be up to the standard established by the Government, Philippine cigars are required to be made from good, clean, selected tobacco, properly cured and seasoned, exclusively the product of the Provinces of Cagayan, Isabela, and Nueva Vizcaya, well made with suitable spiral wrapper and with long filler from which must have been removed all stems dust, scrap or sun-burned tobacco; cigars to be properly assorted and packed in clean receptacles of wood not before used, manufactured from native wood known as Calantas or from imported cedar. No cigars made between sunset and sunrise may be graded as standard.”
The Cigar Factories The factories in which the Manila cigars are made are worth visiting. They are counted among the show-places of the city. Visitors are always welcome and given an opportunity to follow the entire process of manufacture from the time the bales of tobacco reach the warehouses until the finished cigars are packed in air-tight cases for shipment to all parts of the world.
In these factories every precaution is taken to guard against dirt and disease. No one is employed except after a searching physical examination and thereafter all the employees are regularly examined twice a month. Every now and then, government inspectors visit the factories, and these have a right to condemn a lot of cigars which they do not think is up to the standard.
No scraps of any kind are used in the making of Manila cigars. There are no broken leaves and no dust. There is nothing in the cigar but long, clean leaves of tobacco. The Manila cigar is the mildest made. It is the most pleasant and satisfying smoke that can be had at any price.
Cigars exported, 1913–1922
| Year | To all countries | To the United States | |||||||
| Number | Value | Average value per thousand | Per cent of total exports | Number | Value | Average value per thousand | |||
| Pesos | Pesos | Cigars | Per cent | Cigars | Per cent | ||||
| 1913 | 191,762,442 | 6,024,468 | 31.42 | 6.31 | 71,513,141 | 37.29 | 3,285,776 | 54.54 | 45.95 |
| 1914 | 154,753,363 | 4,630,318 | 29.92 | 4.75 | 56,205,050 | 36.32 | 2,400,252 | 51.84 | 42.71 |
| 1915 | 134,647,687 | 4,114,605 | 30.56 | 3.82 | 61,169,600 | 45.43 | 2,302,444 | 55.96 | 37.64 |
| 1916 | 193,025,578 | 5,688,751 | 29.47 | 4.02 | 111,478,216 | 57.75 | 4,066,242 | 71.48 | 36.47 |
| 1917 | 284,524,500 | 9,588,192 | 33.70 | 5.07 | 202,198,534 | 71.07 | 7,725,966 | 38.20 | 38.29 |
| 1918 | 360,144,827 | 14,252,637 | 39.57 | 5.21 | 248,747,584 | 69.07 | 11,365,675 | 79.85 | 45.69 |
| 1919 | 392,339,462 | 18,157,707 | 46.28 | 8.07 | 263,942,555 | 67.27 | 13,828,639 | 76.16 | 52.39 |
| 1920 | 421,545,143 | 25,442,276 | 60.35 | 8.43 | 316,862,859 | 75.17 | 21,092,607 | 82.90 | 66.57 |
| 1921 | 154,879,488 | 6,454,886 | 41.67 | 3.66 | 68,216,608 | 44.04 | 3,960,503 | 61.36 | 58.06 |
| 1922 | 300,484,824 | 11,602,219 | 38.61 | 6.07 | 173,317,046 | 57.68 | 8,519,576 | 73.43 | 49.16 |
SECONDARY FOOD PRODUCTS.—Corn leads in importance among the secondary food products. In 1918 there were 1,035,067 acres grown to corn producing 11,269,258 bushels valued at $10,686,061. The other food crops worth mentioning under this heading are sweet potatoes, cassava, sesame, mongoes, peanuts, bananas, mangoes, citrus, lanzones, and a great number of tropical fruits and vegetables. Including the edible algæ and fungi there are more than 100 species of plants in the Philippines, either wild or cultivated, that find a place in the dietary system of the people. So rich is the country in food producing plants.
PROSPECTIVE AGRICULTURAL INDUSTRIES.—The plants from which the various other tropical staple products in the world’s markets are derived, such as rubber, coffee, tea, cacao, pepper, cinchona, and cassava are all known to thrive well in the Philippines, although the growing of those enumerated is yet of comparatively little importance. Rubber has the greatest future of these. The great Island of Mindanao, which is outside the typhoon zone, has been found to be suitable to the growing of rubber. All the large rubber plantations of the Philippines are located on Mindanao or the adjacent Island of Basilan.
During the early years of American occupation, when the acreage planted to rubber in other countries increased by leaps and bounds, the erroneous impression somehow gained ground that the Philippines were unsuited to rubber. And it is not very many years ago that a planter was able to demonstrate beyond doubt that rubber could be grown in the Islands successfully. The company he heads now has some 80,000 rubber trees planted. The success of its operations has induced others to plant rubber, and while the Philippine output of rubber is still insignificant, it may be said that the rubber industry has come to stay.
IRRIGATION.—Irrigation has been practiced in the Philippines in some form for centuries, for, in general, it may be said that the certainty of a rice harvest depends upon irrigation to supplement the natural rainfall. When the rainfall is copious and well distributed during the rice growing season, there is little demand for artificial irrigation but in the event of a drought or irregular rainfall irrigation has to be used to insure a normal rice crop. With irrigation it is also possible to grow two crops of rice a year, whereas without it the planting of one is often hazardous. Prior to 1908 very little attention was given to the development of irrigation systems so that the only irrigation works constructed were by private and communal enterprise. These old systems are found in different parts of the Islands, the most notable being the extensive systems with permanent dams, tunnels, and ditches constructed by the friars and the remarkable side hill terraces built by the mountain people in the subprovince of Ifugao.
Studies of irrigation possibilities have now advanced sufficiently to warrant the Bureau of Public Works recommending a ten-year program for the construction of 40 irrigation systems in 20 of the principal rice producing provinces to water an area of approximately 750,000 acres. It is estimated that these 40 systems will cost about $25,000,000. With these systems completed and operating, there will be no further need of importing rice from other countries.
Rural Credit RURAL CREDIT ASSOCIATIONS.—The Rural Credit Law has removed the restriction in the Corporation Law requiring ₱200,000 paid-in capital before a bank may be started. Under the new law, associations may incorporate with a paid-in capital as low as ₱100 or as high as ₱10,000. The Government does not furnish any financial help except that the organizing staff is paid and maintained by it. To give security to small investors the bonded municipal treasurer acts as treasurer ex-officio of the association and Government auditors audit its books.
The purpose of the Rural Credit Law is to encourage small farmers to coöperate and furnish their own capital. Only one association may be incorporated in a municipality to avoid rivalry and factions.
On October 19, 1916, the first rural credit association was incorporated, and after practically six years, there are now 544 incorporated associations with a paid-in capital of ₱807,178.