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.