Moro Gong.
Increase in Agriculture.—Anda died in October, 1776, and his successor, Don José Basco de Vargas, was not appointed until July, 1778. With Basco’s governorship we see the beginning of those numerous projects for the encouragement of agriculture and industry which characterized the last century of Spanish rule. His “Plan general economico” contemplated the encouragement of cotton-planting, the propagation of mulberry-trees and silk-worms, and the cultivation of spices and sugar. Premiums were offered for success in the introduction of these new products and for the encouragement of manufacturing industries suitable to the country and its people.
Out of these plans grew the admirable Sociedad Economica de Amigos del Pais, which was founded by Basco in 1780. The idea was an excellent one, and the society, although suffering long periods of inactivity, lasted for fully a century, and from time to time was useful in the improvement and development of the country, and stimulated agricultural experiments through its premiums and awards.
Establishment of the Tobacco Industry.—Up to this time the Philippine revenues had been so unproductive that the government was largely supported by a subsidy of $250,000 a year paid by Mexico. Basco was the first to put the revenues of the Islands upon a lucrative basis. To him was due the establishment, in 1782, of the famous tobacco monopoly (estanco de tabacos) which became of great importance many years later, as new and rich tobacco lands like the Cagayan were brought under cultivation.
Igorot Drum.
Favorable Commercial Legislation.—The change in economic ideas, which had come over Europe through the liberalizing thought of the eighteenth century, is shown also by a most radical step to direct into new channels the commerce of the Philippines. This was the creation in 1785 of a great trading corporation with special privileges and crown protection, “The Royal Company of the Philippines.”
Igorot Shield.
The company was given a complete monopoly of all the commerce between Spain and the Philippines, except the long-established direct traffic between Manila and Acapulco. All the old laws, designed to prevent the importation into the Peninsula of wares of the Orient, were swept away. Philippine products were exempted from all customs duty, either on leaving Manila or entering Spain. The vessels of the company were permitted to visit the ports of China, and the ancient and absurd prohibition, which prevented the merchants of Manila from trading with India, and China, was removed.