The same effect that was observed in connection with the opening of Manila followed that of the other ports. The production of the regions around the new ports increased as shown by export statistics, and commercial activity was stimulated, as shown in the greater movement of ships. For example, Sual in 1857 sent abroad twelve ships with rice, and two hundred and twenty-five ships to Manila, also loaded with rice; in 1860, sixty ships went abroad, and one hundred and seventy-two to Manila, loaded mostly with the same cargo. Again, although in the first three or four years there were no marked increase in her exports, Iloilo by 1859 began to show signs of increasing productivity.[22] Its total value of exports, which in 1858 amounted to 82,000 pesos, had increased to 1,000,000 pesos in 1863.
Furthermore, the opening of Iloilo encouraged production in the island of Negros. Previous to the new era the conditions there were described thus: “... before the happy event that we are considering, that island was uncultivated, thinly populated, and above all, without any kind of production to keep commerce alive; besides the Governor, the Alcalde mayor, and the curates sent by the religious orders, there were no other Spaniards; only one European, a French doctor by the name of Gaston, had settled there, cultivating sugar cane, and now and then sending some cargoes to Manila.[23] Again, Jagor tells us that in 1857 there was not one iron mill to be found on the island; and that in working with the wooden mill, about 30% of the sap remained in the cane, even after it had been thrice passed through. However, the old wooden presses were disappearing, and were being supplanted by iron mills run by steam or carabao. These mills the natives had no difficulty in obtaining because they could get them on credit from the warehouses of the English importers. Instead of the old Chinese cast-iron pans which were in use, far superior articles had been imported from Europe; and many large factories worked by steam power and with all modern improvements had been established. In agriculture, likewise, great progress was noticeable. Improved plows, carts, and good farming implements generally were to be had in plenty.[24] After the opening, the 4,000 piculs of sugar produced in Negros in 1856 had increased to 100,000 in 1864 for exportation; there were 25 Europeans in the same year, 7 machines run by steam in the towns of Bacolod, Minuluan, and Bago, and 45 run by animal power. Similar advance characterized the other parts of the islands.[25]
The increased production, due to the improved methods of cultivation, had a great effect on the inhabitants of the islands, for, not only did it bring about greater welfare because of more adequate satisfaction of their necessities, but also because it developed a demand for other necessities; hence, raising the standard of living. Referring to the same phenomenon in Iloilo Mr. Loney in a report as vice-consul of Great Britain, said that the current testimony of all the elder residents in the province was that during the last few years a very marked change had taken place in the dress and general exterior appearance of the inhabitants of the large pueblos, owing in great measure to the comparative facility with which they obtained 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 was observable in the furniture and other arrangements, and the evident wish to add ornamental to the more necessary articles of household use.[26]
And since the opening of the ports, a great many people, especially mestizos, who before traded in manufactured goods purchased in Manila, abandoned their business, and, unable to compete with the Chinese dealers, had betaken themselves to the raising of sugar, and other products to the great benefit of the country.[27] And, thus, the greater exploitation of natural resources gave rise to the demand for better means of communication,[28] and other material improvements.
The material progress of the Filipinos wrought great changes in the social population, mind, and structure. Though not affecting the majority of the people, economic advance paved the way for the development of the spirit of independence and criticism, which characterizes an independent and stable middle class. It was that class, which, because of contact with the new ideas brought by the newcomers, and of increasing material power, first questioned the abuses of the government, and demanded social reforms.[29]
Furthermore, the law that all the energy in the growth and activity of a population is derived from the physical world, and hence, density of population is dependent on material progress, is well illustrated by the increase of population in this country during the last century, especially its first half.[30] In turn, density of population made possible further social progress.[31]
Conclusion.
Why is it that writers attribute great significance to the coming of the foreign business men, especially the American and British?[32] Why was it that the opening of the ports, and the coming of the foreigners, resulted in the material progress of the country? Two circumstances are of prime importance in considering the growth of new settlements, and the conditions determining their economic and social progress. The first is whether or not they possess markets for commodities which their natural resources enable the people to produce easily. This condition is important for, without markets in other communities new countries can possess no material advantage over old ones in the production of wealth. Now, the opening of Philippine ports to foreigners brought our products in contact with the world’s market, without which it would have been useless to attempt to produce any more than what was required by the local demand. In other words, the world’s demand for the commodities we produce easily, served as an effective stimulus to further production.
The second circumstance affecting the growth of a new country is the extent to which the people are able to secure the co-operation of capital from older communities to assist them. There are several ways by which capital may co-operate in the development of a new territory. The first is, where capital in the form of stocks of commodities of all kinds is advanced or sold upon credit by the commercial houses. This has been used in this country. The example of Mr. Nicholas Loney, an Englishman, agreeing to be paid for his sugar machineries with the increased earnings due to the use, by the Filipino planters, of such machines, is a good illustration of how foreign capital could be utilized to advantage by all parties concerned. On the one hand, the planter improved his method of cultivation, thereby increasing his produce, and, on the other, the foreign merchant sold more of his imported machineries, and exported more of the products of the Philippines to his country.[33] Furthermore, labor is not without some benefit, for the payment of higher wages is then possible. The second way by which capital may co-operate is by providing transportation facilities to connect a new country with the markets, and especially with those so necessary to its prosperity; for example, by organizing steamboat companies, building important roads, and, above all, constructing railroads. This also was done in this country; the building of the Manila-Dagupan railroad, for example, has had a remarkable influence upon the economic progress of the provinces through which it passed.