A Visit to the Philippine Islands

by John Bowring

In 1810 the import trade of the Philippines amounted to only 5,329,000 dollars, of which more than half consisted of precious metals, sent from the Spanish colonies of America. From Europe and the United States the trade was only 175,000 dollars. The exports were 4,795,000 dollars, of which one-and-a-half million consisted of silver to China, and the whole amount of exports to Europe and the United States was 250,000 dollars. The great start took place in 1834, when the monopoly of the Philippine Company terminated, and commerce may be regarded as progressive from that time. Of the trade with the surrounding islands, that with Jolo, conducted principally by Chinese, is important. One of the leading articles of export is the edible bird’s-nests, of whose collection a Spanish writer gives the following account:—“The nests are collected twice a year; those most valued from deep and humid caverns. Early training is needful to scale the localities where the nests are found, and the task is always dangerous. To reach the caves it is necessary to descend perpendicularly many hundred feet, supported by a rope made of bamboo or junk, suspended over the sea waves as they dash against the rocks.” There is also from Jolo a considerable exportation of tortoise-shell. Trepang (sea-slug, Holothuria) and shark-fins are sent to the Chinese markets; also mother-of-pearl, wax and gold dust. The voyage from Manila to Jolo and return generally occupies seven to eight months. A trade in most respects resembling that of Jolo is carried on between Manila and the Moluccas. Spices are, however, added to the imports. There is a large trade between Singapore and Manila, and with Amoy, in China, the transactions are very important. Vessels are generally loading from and to that port. Rice, paddy, cocoa-nut oil, sugar, fine woods, table delicacies and a variety of minor articles, are exported; silks, nankins, tea, vermilion, umbrellas, earthenware and a thousand smaller matters, make up the returns.

Internal trade suffers much from the many impediments to communication and the various shiftings to which merchandise is exposed. It is said that in the transit from the north of Luzon to the capital there are as many as a hundred floating rafts upon which the goods must be carried across the different streams; at each considerable delay is experienced, as the raft (balsa) is seldom found when and where it is wanted. And during half the year inland conveyance is the only means of transport, as the monsoons make the sea voyage impossible for coasting vessels. Indeed, in the remoter islands months frequently pass without arrivals from the capital. Some of the fairs in the interior are largely attended by the Mahomedan and heathen natives, who will not visit the ports or larger towns. That of Yligan (Misamis, in Mindanao) is much visited by Moros, who bring thither for sale paddy, cocoa, coffee, gold dust, cotton fabrics, krises and weapons of war, with many other native articles, which they exchange mostly for European and Chinese wares. Panaguis, in Luzon, is another market much frequented by the Igorrote Indians. Many of the ancient river communications have been stopped by inundations, which have given a new direction to the stream, and by the invasion of snags, trees and rocks from the upper regions. There is a great deal of ambulatory petty trade in the interior; the Chinese especially are active pedlars and factors, and make their way to buy and to sell wherever there is a profit to be gained. They are to a great extent the pioneers of commerce, and in this way valuable auxiliaries and co-operators by opening new fields to be hereafter more extensively explored.

There are in Manila seven English, three American, two French, two Swiss and one German, commercial establishments. In the new ports there is no European house of business except at Iloilo, where there is an English firm, of which the British vice-consul is the directing partner.

Among the curiosities of commercial legislation is a decree of the governor of the Philippines, dated only a few years ago, by which it was ordered that no vessel should be allowed to introduce a cargo from China or the East Indies unless an engagement was entered into by the captain to bring to Manila five hundred living shrikes (mimas?), as the bird was reported to be most useful in destroying the insects which were at that time seriously damaging the harvests. I believe not a single bird was ever brought. It would have been about as easy and as reasonable to require them to import some slices of the moon, for the catching, and the caging, and the keeping, are scarcely within mortal capabilities, and 500 birds were the required minimum by every ship; nor was it the least remarkable part of the decree or requirement that they were all to be delivered gratis.

For the protection of the revenue there is an armed body called the Carabineros de Real Hacienda. It is composed of natives under European officers, and is charged with both land and sea service. They wear a military uniform and a broad hat resembling a large punch-bowl, which is, however, an admirable protection from the sun’s rays.

Great Britain has a salaried consul and vice-consul in Manila and vice-consuls in Iloilo and Sual. France has also a salaried consul in the capital. The United States, Portugal, Belgium, Sweden and Chili, are represented by members of commercial establishments, who exercise consular authority in Manila. The American consul is Mr. Charles Griswold, and few are the visitors to these islands who have not enjoyed his hospitality and benefited by his experience.

The post-office establishments are imperfect and unsatisfactory and the charges for the conveyance of letters heavy. There is a weekly postal communication from the capital with the provinces in the island of Luzon, and southwards as far as Samar and Leyte, but all the other eastern and southern islands are left to the chances which the coasting trade offers and are frequently many months without receiving any news from the capital or the mother country. A regular service, providing for the wants of these important districts, Panay especially, with its population exceeding half a million, is greatly to be desired.

There is now a fortnightly service carried on by the steamers of the Peninsular and Oriental Company between Manila and Hong Kong, generally reaching forty-eight hours before the departure, and quitting forty-eight hours after the arrival, of the steamers from Europe. It is conducted with great regularity and the letters from Spain arrive in about fifty days; but many days would be saved were there a branch steamer from Malta to Alicant. For this service an annual sum (recoverable monthly) of 120,000 dollars is paid by the Manila government to the company. The steamers are freed from all port charges except pilotage.

The government has published proposals for the establishment of a steam-packet company for the service of the islands, offering 45,000 dollars annually as a State contribution, but I believe there is no immediate prospect of the adoption of the scheme.

The Banco Español de Isabel II. is a joint-stock company, whose capital is 400,000 dollars, in 1,000 shares of 400 dollars each. It was established in the year 1855, and has generally paid to the shareholders dividends at the rate of six to eight per cent. per annum. It issues promissory notes, discounts local bills of exchange and lends money on mortgage. The general rate of interest in the Philippines fluctuates from six to nine per cent. The yearly operations of the bank exceed 2,000,000 of dollars. The value of about half-a-million of bills of exchange is usually under discount. Its ordinary circulation does not exceed 200,000 dollars in promissory notes and it has deposits and balances to the value of about 1,750,000 dollars. The bank has afforded considerable facilities to commerce, and has answered one of its principal objects, that of bringing into circulation some of the hoarded money of the natives. Most of the foreign houses are shareholders.